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On the Edge of Discovery: Canada’s Next Gold District

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The following content is sponsored by SKRR Exploration Inc. and Taiga Gold Corp.

Taiga Gold Corp. SKRR Exploration

On the Edge of Discovery: Canada’s Next Gold District

Canada is home to some of the greatest gold districts in mining history. These regions occur mostly across Ontario, Québec, and British Columbia, where past mineral exploration has uncovered their geological potential.

But Canada is vast, and there are still more regions to explore—in particular, the Trans-Hudson Corridor. It’s here that SKRR Exploration and Taiga Gold are leading the way into a new mineral frontier, with the hope of uncovering Canada’s next gold district.

Canada’s Major Gold Districts

The Abitibi Greenstone Gold Belt, the Red Lake Gold District, and the Golden Triangle are key sources of gold in Canada.

  1. Ontario and Québec’s Abitibi Greenstone Gold Belt:

    With over 100 mines, this gold belt stretches across the provinces of Ontario and Québec from Wawa to Val-d’Or. The belt has produced a massive 180M ounces of gold over its history and remains today a source of gold and employment in Northern Ontario.

  2. Ontario’s Red Lake Gold District:

    The Red Lake Gold District experienced its first gold rush following initial discoveries in 1897 and 1925. With over 30M ounces of gold produced since then, the Red Lake mining district is one of the largest and highest-grade gold camps in North America.

  3. British Columbia’s Golden Triangle:

    Having hosted the Stikine Gold Rush and the Atlin Gold Rush, the Golden Triangle is a popular destination for exploration companies. Investment in the region has produced 5.26M ounces of gold and impressive discoveries such as the Bruce Jack mine and the Kerr-Sulphurets-Mitchell (“KSM”) project.

Although these regions have garnered attention from large mining companies, the Trans-Hudson Corridor is open for a new era of discovery, and very few companies have taken advantage of it.

The Trans-Hudson Corridor: Canada’s Next Gold District?

The Trans-Hudson Corridor lacks an extensive exploration history, but it shows potential as a prime area for discovery.

Geological Potential

The Trans-Hudson Corridor stretches from the Dakotas of the United States to James Bay in Canada. One of the few remaining exposed portions of the Trans-Hudson, the Black Hills region of South Dakota, hosts the famous Homestake Mine, which produced 43.7 million ounces of gold and 9.9M ounces of silver before closing in 2001.

Despite the geological potential of this corridor, there have only been a few operating gold mines in the northern portion of the Trans-Hudson. One study indicates there may be more gold mineralization near the Snow Lake mine.

Saskatchewan: Major Gold Mines and a Lack of Exploration

Saskatchewan has geological potential—but compared to other regions, explorers are barely scratching the surface.

For all of Canada in 2018, mining and exploration investment amounted to C$2.2 billion. Saskatchewan received some of the lowest amounts with only C$165 million expended. Only 2% of the $165 million went towards exploration for gold, while the rest for uranium and potash.

Canada: Safe and Stable Mining Jurisdiction

The Trans-Hudson Corridor offers a safe, stable, and accessible mining region in today’s volatile world. In particular, Saskatchewan provides a competitive edge for mineral exploration:

  • Affordable access to North American capital markets
  • Mineral exploration incentive programs
  • Low-cost, high-quality road and power infrastructure
  • A well educated and professional workforce

Canada has the geological potential for big gold discoveries and the next era of discovery could be waiting in the Trans-Hudson Corridor.

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Visualizing the Economic Impact of British Columbia’s Golden Triangle

British Columbia’s Golden Triangle generates massive revenue and investments for the province, but where did it all begin?

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BCRMA Golden Triangle

The Economic Impact of British Columbia’s Golden Triangle

At the heart of British Columbia’s mining industry lies the Golden Triangle. This region has helped transform the province’s mining industry into a significant source of revenue and investment.

In 2020, the Golden Triangle accounted for roughly 44% of the $422 million in mineral exploration expenditures in British Columbia. In 2019, the Red Chris and Brucejack mines contributed around $1 billion to the province’s estimated annual gross mining revenues.

This infographic is sponsored by the B.C. Regional Mining Alliance (BCRMA) which brings the best of this region to the world through a partnership between indigenous groups, industry, and provincial government representatives.

Here is how the Golden Triangle began.

The Golden Triangle’s Unique Geology

Between 220 and 175 million years ago, the Golden Triangle’s wealth was forming deep in the Earth for the world to discover. Most metal deposits form from superheated water that cycle over many kilometers, collecting metal atoms as they rise to the surface of the Earth’s crust and settle into deposits.

Industry, government, and university geologists have worked for over a century to understand the Golden Triangle’s unique geology to uncover its mineral wealth. This unique geology cradles the world-class deposits that define the legendary “Golden Triangle” of British Columbia.

A History of Discovery and Mining in the Golden Triangle

Historical gold rushes brought mining to the area, but the region’s vast copper deposits will deliver the key mineral for B.C.’s green future. More than 150 mines have operated in the area since prospectors first arrived at the end of the 19th century.

  • 1861: Alexander Choquette kicked off the Stikine Gold Rush after finding gold at the confluence of the Stikine and Anuk Rivers.
  • 1918 – 1952: The first big discovery in the Golden Triangle was at the Premier Gold Mine, which started operations in 1918. It produced 2 million ounces of gold and 45 million ounces of silver. Today, Ascot Resources is re-starting processing from this gold mine.
  • 1964: The Snip Mine was discovered by Cominco but the deposit stayed dormant until 1986. The mine produced approximately 1 million ounces of gold from 1991 until 1999. Today, Skeena Resources is advancing the Snip Project.
  • 1994: Eskay became Canada’s highest-grade gold mine and the world’s fifth largest silver producer, with production above 3 million ounces of gold and 160 million ounces of silver. Skeena Resources is also bringing the Eskay mining back into production.
  • 2009: The discovery of the Brucejack gold and silver deposit led to the development of an underground mine. The mine has produced 1,230,644 ounces of gold since it began operations in 2017.
  • 2013: The KSM Project is one of the largest undeveloped gold projects in the world. A Preliminary Feasibility Study estimates proven and probable reserves total 38.8 million ounces of gold and 10.2 billion pounds of copper.
  • 2015: The Red Chris shipped its first load of copper concentrate. In 2020 metals production was 88.3 million pounds copper and 73,787 ounces gold. Imperial Metals and Newcrest jointly operate the mine.

This long tradition of discovery and mining is laying the foundations for the next generation of investment.

Today’s Golden Age for Exploration and Development

Continued exploration is necessary for new discoveries and advancing projects to new mines. More importantly, the minerals discovered today will be needed in the low carbon economy and British Columbia—in particular, the Golden Triangle will play its part in delivering metals for renewable technology.

 British ColumbiaNorthwest Mining RegionThe Golden Triangle
2020 Projects2596726
Total Expenditures$422M$255M$184M
Drilling (meters)991,319470,058352,247
Average Expenditure Per Project$1.6M$3.4M$7.09M

Source: Based on data collected for the EY LLP, 2020 British Columbia Mineral and Coal Exploration Survey

Gold and copper account for most of the exploration in the Golden Triangle, but other commodities for the low-carbon economy such as silver, nickel, and zinc also attract interest. A strong exploration industry is the beginning for future investment, new jobs, and community development.

A Bright Future: Investing in Community

The Golden Triangle continues to attract exploration activity as infrastructure and community development lays the success for future generations and industries.

Community:

  • Agreements with First Nations (Tahltan and Nisga’a Nations)
  • 38% of expenditures stays in the region
  • 97% stays in British Columbia
  • 150+ communities benefit

Infrastructure:

  • The paving of the Stewart-Cassiar highway
  • The opening of ocean port facilities for concentrate export at Stewart
  • The completion of a $700-million high-voltage transmission line bringing power into the region

This is a new beginning for the continued economic impact of British Columbia’s Golden Triangle.

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A Geographic Breakdown of the MSCI ACWI IMI

The MSCI ACWI Investable Market Index (IMI) covers 99% of the investable global equity market. Here, we show its region and market breakdown.

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MSCI ACWI

A Geographic Breakdown of the MSCI ACWI IMI Index

How can investors track stock markets around the world?

Using the MSCI All Countries World Index Investable Market Index (MSCI ACWI IMI), investors can benchmark their portfolios to a comprehensive group of developed and emerging markets. With over $4.2 trillion in assets benchmarked to the ACWI—about 4% of all managed assets globally—the index is widely quoted.

In this graphic from MSCI, we explore a geographic breakdown of the MSCI ACWI IMI index, and how it has changed over time.

What is the MSCI ACWI IMI?

The MSCI ACWI IMI is a leading global equity index. It tracks the performance of a basket of securities that are intended to represent the entire global stock market. Altogether, it covers:

  • 9,200 securities
  • 23 developed markets
  • 27 emerging markets
  • 99% of the investable global equity market

Using a standardized approach, the index includes businesses of all sizes from small to large market capitalization.

Market Weights

The MSCI ACWI IMI Index is broken down into broad regions and specific markets, such as North America and the U.S. respectively. Below, we show the specific market weights of the index as of July 31, 2011 and July 31, 2021. We also show how much these weights have increased or decreased over the last 10 years.

MarketRegion2011 Weight2021 WeightPercentage Point Change
CanadaNorth America4.74%2.91%-1.8 p.p.
U.S.North America43.34%58.61%15.3 p.p.
AustriaEMEA0.16%0.08%-0.1 p.p.
BelgiumEMEA0.39%0.27%-0.1 p.p.
DenmarkEMEA0.42%0.68%0.3 p.p.
FinlandEMEA0.37%0.33%0.0 p.p.
FranceEMEA3.50%2.73%-0.8 p.p.
GermanyEMEA3.24%2.31%-0.9 p.p.
IrelandEMEA0.13%0.18%0.1 p.p.
IsraelEMEA0.29%0.26%0.0 p.p.
ItalyEMEA0.99%0.67%-0.3 p.p.
NetherlandsEMEA0.92%1.11%0.2 p.p.
NorwayEMEA0.42%0.24%-0.2 p.p.
PortugalEMEA0.10%0.05%-0.1 p.p.
SpainEMEA1.21%0.61%-0.6 p.p.
SwedenEMEA1.20%1.20%0.0 p.p.
SwitzerlandEMEA3.09%2.47%-0.6 p.p.
United KingdomEMEA8.28%3.99%-4.3 p.p.
ArgentinaEM0.00%0.02%0.0 p.p.
BrazilEM1.86%0.65%-1.2 p.p.
ChileEM0.21%0.06%-0.2 p.p.
ChinaEM2.32%3.76%1.4 p.p.
ColombiaEM0.10%0.02%-0.1 p.p.
Czech RepublicEM0.05%0.01%0.0 p.p.
EgyptEM0.05%0.01%0.0 p.p.
GreeceEM0.10%0.03%-0.1 p.p.
HungaryEM0.05%0.03%0.0 p.p.
IndiaEM1.01%1.40%0.4 p.p.
IndonesiaEM0.39%0.14%-0.2 p.p.
KoreaEM2.07%1.67%-0.4 p.p.
KuwaitEM0.00%0.07%0.1 p.p.
MalaysiaEM0.44%0.18%-0.3 p.p.
MexicoEM0.55%0.23%-0.3 p.p.
PakistanEM0.00%0.01%0.0 p.p.
PeruEM0.06%0.02%0.0 p.p.
PhilippinesEM0.09%0.07%0.0 p.p.
PolandEM0.23%0.10%-0.1 p.p.
QatarEM0.00%0.08%0.1 p.p.
RussiaEM0.85%0.38%-0.5 p.p.
Saudi ArabiaEM0.00%0.36%0.4 p.p.
South AfricaEM1.00%0.44%-0.6 p.p.
TaiwanEM1.63%1.85%0.2 p.p.
ThailandEM0.28%0.22%-0.1 p.p.
TurkeyEM0.20%0.05%-0.1 p.p.
United Arab EmiratesEM0.00%0.09%0.1 p.p.
AustraliaAsia Pacific3.34%1.94%-1.4 p.p.
Hong KongAsia Pacific1.11%0.79%-0.3 p.p.
JapanAsia Pacific8.37%6.22%-2.2 p.p.
New ZealandAsia Pacific0.07%0.09%0.0 p.p.
SingaporeAsia Pacific0.74%0.32%-0.4 p.p.

Note: numbers may not sum to 100 due to rounding. EM stands for Emerging Markets, and EMEA stands for Europe, Middle East, and Africa.

Over the last decade, the UK’s index weighting has halved. Brexit uncertainty caused British stocks to underperform relative to other markets. In addition, the UK’s public equity marketing has been shrinking, with the number of listed companies falling by 21% in just eight years.

Japan saw its weighting decline by more than two percentage points. The country has faced a very slow recovery since the asset price bubble in 1989, and the stock market has yet to surpass its previous peak.

On the other hand, China’s weighting in the MSCI ACWI IMI has increased over the last 10 years. This is primarily due to two factors:

  • China A shares, shares of mainland China based companies that are quoted in the local renminbi currency, were previously only available to domestic investors. China’s market reforms made them more widely accessible to international investors.
  • As accessibility and growth increased in the region, foreign investors expressed increased interest in the Chinese market. This drove up demand for the country’s stocks.

Perhaps the biggest takeaway from this data is the increasing dominance of the U.S. stock market, which now makes up almost 60% of the index. What implications does this have on the MSCI ACWI IMI index’s diversification?

Revenue Exposure of the MSCI ACWI IMI

As it turns out, the index is more diversified than it may seem at first glance. American companies have international operations, and earn revenue from many different markets. This makes the revenue exposure of the index much more spread out across each region.

Region% of Revenue Exposure
EM36.4%
North America31.9%
EMEA16.7%
Asia Pacific12.0%
Other3.1%

Note: numbers may not sum to 100 due to rounding. Countries included in Other are Bosnia and Herzegovina, Bangladesh, Burkina Faso, Bulgaria, Bahrain, Benin, Botswana, Cote D’Ivoire, Estonia, Ghana, Guinea-Bissau, Croatia, Iceland, Jamaica, Jordan, Kenya, Kazakhstan, Lebanon, Sri Lanka, Lithuania, Morocco, Mali, Mauritius, Niger, Nigeria, Oman, Palestine, Romania, Serbia, Slovenia, Senegal, Togo, Tunisia, Trinidad and Tobago, Ukraine, Vietnam and Zimbabwe.

On a revenue exposure basis, North America—where the U.S. is by far the largest market—has a weighting of just over 30%. Emerging markets take the top spot, making up over a third of the index’s revenue exposure. This presents an opportunity for investors, as these markets are projected to have higher GDP growth compared to North America.

Broad Exposure

For investors looking to capture the world’s stock market performance, the MSCI ACWI IMI can be a good benchmark. The index offers comprehensive and diversified exposure to various markets. Through regular reviews and rebalancing, it also adjusts to market movements. This ensures it continues to accurately reflect the composition of the global stock market over time.

While investors can’t invest in the index itself, they can invest in a product that tracks the index—and be poised to take advantage of opportunities around the globe.

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