The firm of Paul A. Hawkins & Associates Ltd. provides consulting engineering services to the Resource Industry and Government throughout Western Canada.  The firm offers specialized expertise in the fields of Mineral Property Evaluation, Mining Property Valuation, Due Diligence, Ore Body Computer Modelling, Project Management Integrated Resource Management.  Reports are written in plain language.

The primary field of practice is Mineral Property Evaluation and Valuation, which includes regional project generation studies, ore reserve calculations and detailed property examinations.  Recent assignments have included valuations in non-arms length transactions of operating mines, fairness opinions of mergers and property evaluations.  The firm has prepared a significant number of qualifying reports under National Policy No. 2A, and the new National Instrument 43-101.

The firm has conducted numerous due diligence examinations in support of acquisition & divesture, joint venture audits, private placements and other financing purposes.  Assignments have included valuations in non-arms length transactions, in support of litigation and fairness opinions of mergers.  Clients include major and junior public companies, brokerage houses, mutual funds manager, sophisticated investors and government.

The firm has managed projects ranging from initial property examinations to large integrated exploration and ore body delineation drilling programs.  We have assembled and supervised small and large teams of professional and non-professional staff with budgets exceeding $3.5 million.  Projects have been operated in environmentally sensitive areas where significant credibility has been built for clients with government agencies, local communities and First Nations.

The firm provides oversight of Integrated Natural Resource Management in the context of today’s environmental awareness and societal expectations.  Several preliminary environmental audits of properties have been undertaken.  Issues associated with the environmental assessment process, biodiversity, sustainable development and green house gases are addressed in a practical way to ensure effective prevention and mitigation strategies and wise management of all resources.
 
 

Mineral Property Evaluation & Valuation

The primary field of practice is Mineral Property Evaluation and Valuation, which includes regional project generation studies, ore reserve calculations and detailed property examinations.  Recent assignments have included valuations in non-arms length transactions of operating mines, fairness opinions of mergers and property evaluations.   The firm has prepared a significant number of qualifying reports under National Policy No. 2A, and the new National Instrument 43-101.

We have completed as "Qualified Person" evaluations on porphyry, narrow vein, massive sulfide and iron formation type gold deposits.  Exploration data including airborne and ground geophysics, geochemistry, remote sensing, assaying, metallurgical testing and drilling can be assessed in an integrated fashion.  Valuations have been undertaken on properties from early exploration to operating mines in B.C., Ontario, NWT., Quebec and Manitoba.  An extensive database of comparable transactions has been developed.  The company uses a full suite of computer ore body modelling and data management software.  All reports are written in plain language.

Due Diligence

The firm has conducted numerous due diligence examinations in support of acquisition & divestiture, joint venture audits, private placements and other financing purposes.  Assignments have included valuations in non-arms length transactions, in support of litigation and fairness opinions of mergers.  Clients include major and junior public companies, brokerage houses, mutual funds managers, sophisticated investors and government. 

Our Due Diligence assignments have included third party review of programs and results well before the mandated "Independent Qualified Person" concept was developed.  Property reviews for sophisticated investors are completed in a timely and cost effective basis.

Project Management

The firm has managed projects ranging from initial property examinations to large integrated exploration and ore body delineation drilling programs.  We have assembled and supervised small and large teams of professional and non-professional staff with budgets exceeding $3.5 million.  Projects have been operated in environmentally sensitive areas where significant credibility has been built for clients with government agencies, local communities and First Nations.

We have operated porphyry exploration programs in Northern BC., gold exploration program along the Destor -Porcupine Fault, massive sulfide exploration programs near Timmins, and diamond exploration programs in Northern Alberta.  The firm draws upon a pool of experienced professionals for project personnel.

Integrated Natural Resource Management

The firm provides oversight of Integrated Natural Resource Management in the context of today’s environmental awareness and societal expectations.  Several preliminary environmental audits of properties have been undertaken.

These studies are usually done in conjunction with other work. In looking at the acquisition of a property, we also examine the current status of the property for any potential environmental liability now or in the future.  A preliminary assessment of any serious hurdles to development, is an important step in evaluating the cost of the project and whether it fits into societal expectations for the area.  The building of community relations and listening to community concerns is a critical step in any development and is an important part of our role.

Issues associated with the environmental assessment process, biodiversity, sustainable development and green house gases are addressed in a practical way to ensure effective prevention and mitigation strategies and wise management of all resources.

Recent Papers

Here is a list of our recent papers with abstracts. If you would like a complete copy please e-mail us at 
 

How to Avoid Fraud & Honest Mistakes in
Mineral Property Valuations

Talk presented at Calgary Branch CIM Meeting December 12, 2001

By: Paul A. Hawkins, B.Sc_(Eng), P. Eng. & Cynthia E. Le Sueur Aquin. B.Sc. _{(Ind. Eng.)}

Mineral exploration and development projects in Canada used to thrive in an aggressive high-risk environment, but because of falling commodity prices combined with tight equity markets, made it tough to survive.  The merits and value of some properties were overstated in the same way the Bre-X fiasco was started.  Company directors believed their own promotional material, as did their consultants. The size of the deposit was determined by what the market required to generate sufficient interest to raise funds in the depressed marketplace.  This marketplace was in reality, unregulated.  National Policy 2-A, which has now been replaced by NI 43-101, sets a higher standard for disclosure for mineral properties.   Any standards for the valuation of mineral properties in Canada remain undefined.  The CIMVal committee is currently working on the subject and expects to produce more definitive standards some time in the future.  All these new regulations will not prevent fraud or other honest mistakes in the industry.  The selection of a truly independent qualified person will minimize the risk associated a particular project.  This paper will highlight our approach in due diligence for mineral property valuations.  With the industry starting to recover, it is essential that we do not repeat the errors of the past and develop a uniform valuation standard across Canada for all Mineral Property Valuations. 

Valuation of Early Stage Exploration Properties

Talk presented at CIM Annual meeting in Quebec City May 12, 2001

By: Paul A. Hawkins, B.Sc_(Eng). & Cynthia E. Le Sueur Aquin B.Sc. _(Ind.Eng)

This paper deals with the practical problems in determining the value of early stage exploration properties, in particular those without quantifiable mineral resources or reserves.  These properties range from exploration properties with several drill holes returning encouraging results to more advanced properties where no viable mineral deposit has been demonstrated to exist.  We would also include properties with non- positive pre-feasibility or feasibility studies.  The dominant methods used for these properties include appraised value / cost approach and market comparables.  The misuse of discounted cash flow analyses or other methods for these properties can have misleading results.  The real value of these properties lies in the potential for the discovery of an economically viable mineral deposit.  Too many properties are compared to Hemlo, Eskay Creek or Voisey’s Bay or whatever the flavour of the month may be.  Several examples will be discussed.  A realistic and practical assessment of this potential is the key in determining the FMV. 

Standards of Disclosure for Mineral Projects: National Instrument 43-101 and the Meaning of "Qualified Person"

Talk presented at Calgary Mineral Exploration Group November 2, 2001

By: Paul A. Hawkins B.Sc_(Eng).

The recent implementation of NI 43-101 is intended to enhance the accuracy and integrity of public disclosure in the mining sector.  The new policy introduces the concept of the "Qualified Person" and defines the requirements for technical reports. The CIM definitions for Mineral Resources and Reserves have been adopted resulting in the elimination of the category of Possible Reserves.  These changes, which came into effect in February 2001, have implications, which are still not fully understood, for all writers of technical reports.  This section attempts to address a number of issues, such as the concept of "Qualified Person", the content of a technical report and resource/reserve definitions. 

Links to Organizations we're involved with:

Calgary Mineral Exploration Group Society

Canadian Institute of Mining

B.C. & Yukon Chamber of Mines

Prospectors & Developers Association of Canada