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Dispelling the Myths

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We hear the term “best practices” a lot, but the truth is, there are still plenty of bad practices in use that put people and assets at risk every day. Many of those bad practices are grounded in one or more of the following myths that commonly lure people and organizations into a false sense of security. Don’t let these myths be responsible for a breach or an attack via edge devices. Here are five common myths that deserve to be busted once and for all.

1. Micro-segmentation alleviates risk. This myth is based on the opinion that “if I create a security system network that is segmented from the operational network, then the devices in this segment are not at risk. No one can access these devices on my network.”

While segmenting the security network from the operational network is a good practice, it is far from a bulletproof cyber security strategy. Back in the early days of the analog to IP transition, a systems integrator (SI) would use segmentation as a way to appease IT departments. DVRs commonly had two network interface cards, one for the device network and one for the operational network, so IT departments felt confident in only having to monitor two connections.

Unsurprisingly, this became a best practice for decades. In truth, it is easy to improperly create a segmented network that exposes backdoors. As more operational technology and industrial IoT gets connected, it’s clear that the internet is far from the only attack vector. There are plenty of insider threats to consider along with innocent mistakes when users, just trying to get something to work, assume that if it has Wi-Fi or an Ethernet jack they can just plug it in.

Take any of the above and sprinkle it with a “set it and forget it” mentality, it becomes paramount to go beyond simply segmenting a network to be truly secure.
 
2. Life cycle management. If it’s is not broken, then don’t fix it. It can be a tough one to crack for many organizations. Unfortunately, “if it’s not broken, then don’t fix it” typically leads to a “we don’t need to update the firmware” mindset. This myth also encompasses a “products don’t need to be cycled out if they are still working” sentiment.

Without robust life cycle management of security devices, exploits and backdoors that hackers expose only increase the vulnerability of these devices over time. A critical part of any cyber secure implementation is ensuring devices are updated with the latest firmware so that any known weak points are patched. It is the manufacturers’ responsibility to keep their devices secure, but it’s also the integrators’ responsibility to keep systems they support up to date.

Finally, no life cycle management would be complete without a strategy for changing out end-of-life or end-of-support devices. In either case, just because it is still running is not a reason to leave it on the network.
 
3. Identity management. One admin account is fine for all. This myth is more commonly believed than you might think. The thought is that one admin account can be used across an SI or end user’s entire installed base. The thinking seems to be that such an account is secure because it’s not with the end user or at least not with day-to-day users.

Like everything else, usernames and passwords must be properly managed. A best practice is to create multiple usernames and passwords so that the VMS connects with one username/password combination, the IT department has another, and the contracted maintenance techs have their own too. This helps a device log discern if something has changed or happened and which account was involved. Sadly, in the security industry this rarely happens.

It is typically one admin account for all devices which is not adequate. Admin privileges should only be reserved for those who understand network security management. We’ve even seen the same username and password used for every account that an SI services. In this case, the SI believed this made it secure since it was “their” password (used across hundreds of sites) and not the end users.

As privacy concerns arise, it is also important to demonstrate that not everyone has the same privileges to view security footage. The principle of least privilege states that a subject should only be given those privileges required to complete its task. As an example, privacy masking at the edge is a popular way to blur faces captured on security cameras. Only certain senior-level users or admins should have the privileges required to expose identities or view certain streams as part of a documented event. This demonstrates accountability within operations and security departments and goes a long way towards building good will.

4. No one can use an end-point device as an attack vector. It can be hard to imagine, with so many attack vectors out there (malware, ransomware, phishing, and compromised or weak credentials), that a network camera would be a legitimate target that hackers would seek out. In fact, the exponential growth of IoT devices on corporate networks has made end-point devices a major target for bad individuals both inside and outside of a company.

Not long ago, a major manufacturer suffered a Distributed Denial of Service (DDOS) attack that was waged in part from another company’s unsecured cameras that were co-opted by a botnet. The vulnerability of those cameras had been previously detected, and the camera manufacturer had issued a firmware patch to address the weak point, but unfortunately, it had not been applied.

When it comes to ensuring cyber security for end-point devices, everyone shares some of the responsibility. The manufacturer must ensure that their device is properly designed to thwart attempts to gain access to the camera or its accompanying network infrastructure. If a vulnerability is discovered, it is the manufacturer’s responsibility to address the situation, issue an update that remedies the problem and notify their suppliers and partners.

Once such an update is available, it’s the responsibility of the reseller or integrator to notify end users that the update is available and ensure that it is installed. This is also why it’s so important to have a service contract in place that provides continual maintenance and updates. The end user is also responsible for making sure their devices are regularly inspected and adheres to any regulations or best practices that their industry requires.

5. Data in the cloud is safe and secure. This popular myth is based on the belief that when utilizing a cloud-based security system, it is solely the cloud provider’s responsibility to ensure everything is cyber secure. While it is true that the cloud provider is responsible for the security of their datacenter, the access to media on the cloud is still in the domain of the user.

Not long ago, a cloud-based security provider suffered a major breach because super admin-level credentials were widely shared by more than 100 employees. Those credentials ended up online, which let hackers have access to more than 150,000 cameras. The best things about the cloud (scale) can also be the worst things about the cloud when things go wrong. So, it is paramount to choose a cloud provider with a proven track record of cyber security that uses best practices for how data is accessed.

Cloud vendors can vary widely regarding the levels of protection offered. It is critical to conduct due diligence and understand what your service level agreement (SLA) is with a cloud provider. There are different SLAs for different types of clouds. For example, if you’re using a cloud provider just as a container, then typically you’re responsible for all of the security.

It is advisable to perform a security-focused vendor assessment, such as the one created by the National Institute of Standards and Technology (NIST), prior to signing up with a cloud provider. Are they Criminal Justice Information Service (CJIS) or System and Organization Controls (SOC) compliant? How do they vet their employees? How do you ensure that your data isn’t mixed with other people’s data? How do they manage access control so that only the authorized people have access to your content?

Many verticals have their own methods for vendor assessment such as HECVAT for education and HITRUST for health care. If you’re in a regulated environment, you need to ensure that whatever design implementation, policy or process that you are required to adhere to is represented in the cloud workflow you adopt.

There are plenty of myths and long-held beliefs in our industry about how to best protect security systems and network infrastructure. Some of these may have represented adequate protection years ago, but as we all know, technology evolves quickly, and with it, so do the tools and techniques designed to take advantage and exploit any perceived weaknesses.

In our rush to make things work and move onto the next task, it can be tempting to take shortcuts and calculated risks that may seem unlikely to result in a serious event. We’ve also heard from people that no one could possibly care about these mundane video feeds — until they are forced to — when a company’s intellectual property is compromised, or someone uses an unprotected device to inject malware and ransomware that brings an organization to its knees.

With everything you do to help protect people and assets, don’t toss it down the drain by relying on outdated information. Make it a priority to stay on top of the basics of cyber security.

September is National Insider Threat Awareness Month

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The National Counterintelligence and Security Center (NCSC), the National Insider Threat Task Force (NITTF), the Office of the Under Secretary of Defense Intelligence and Security, the Defense Counterintelligence and Security Agency, and the Department of Homeland Security today launched the fourth-annual “National Insider Threat Awareness Month” (NITAM).

NITAM is an annual, month-long campaign during September to educate government and industry about the risks posed by insider threats and the role of insider threat programs. The campaign seeks to encourage government and private industry employees to recognize and report behaviors of concern, leading to early intervention and positive outcomes for at-risk individuals and reduced risks to organizations. To learn more about the campaign and resources available to organizations, visit the NITAM 2022 website.

An insider threat is anyone with authorized access who wittingly or unwittingly harms an organization through their access. Most insider threats exhibit risky behavior prior to committing negative workplace events. If identified early, many insider threats can be mitigated before harm occurs. Federal insider threat programs are composed of multi-disciplinary teams that address insider threats while protecting privacy and civil liberties of the workforce, maximizing organizational trust, and ensuring positive work cultures that foster diversity and inclusion.

Fostering Critical Thinking in Digital Spaces

This year’s NITAM campaign focuses on the importance of critical thinking to help workforces guard against risk in digital spaces, which can facilitate insider threat activity. Such risk includes social engineering efforts; online solicitation by foreign or domestic threats; misinformation, disinformation, and mal-information; as well as malicious cyber tactics like phishing, smishing, and vishing.

With virtual work environments becoming more prevalent, malicious actors have more opportunities to target those in our workforces through exploitation of the digital information landscape. Government and industry employees are often susceptible to malicious digital approaches, posing enhanced risk to themselves and their organizations. The ability to spot and respond to manipulative information begins with critical thinking skills, which are essential to reducing vulnerability to these risks.

“Our trusted workforces (our insiders) are some of the most valuable assets in our nation, but they face an increasingly challenging risk environment,” said NCSC Deputy Director Michael Orlando. “It is imperative that we arm our trusted insiders with the resources and skills to counter increasingly sophisticated efforts to exploit our personnel, information, and resources.”

“Increasing the workforce’s awareness of manipulated information and attempts at online social engineering is critical to ensuring our trusted workforce remains resilient and vigilant against these threats,” said Ronald Moultrie, Under Secretary of Defense for Intelligence and Security.

Today, insider threat practitioners from across the U.S. Government and industry will participate in the 2022 Insider Threat Virtual Conference, hosted by the Department of Defense, to kick off the NITAM 2022 campaign. The 2022 Insider Threat Virtual Conference features senior level speakers and panelists who will present on critical thinking for the workforce, social engineering threats, an insider threat case study, and resources for workforce resiliency to counter insider risk.

Recent examples underscore the damage that can be caused by insider threats:

  • In August 2022, a federal jury in California convicted Ahmad Abouammo, a former manager at Twitter, of acting as an unregistered agent of Saudi Arabia and other violations. Abouammo had used his position at Twitter to access, monitor, and convey the private information of Twitter users, including critics of the Saudi regime, to officials of the Kingdom of Saudi Arabia and the Saudi Royal family in exchange for bribes worth hundreds of thousands of dollars.
  • In July 2022, a federal jury in New York convicted former CIA programmer Joshua Schulte of violations stemming from his theft and illegal dissemination of highly classified information. Harboring resentment toward CIA, the programmer had used his access at CIA to some of the country’s most valuable intelligence-gathering cyber tools to covertly collect these materials and provide them to WikiLeaks, making them known to the public and to U.S. adversaries.
  • In June 2022, civilian defense contractor Shapour Moinian pleaded guilty in California to federal charges, admitting that he acted as an unregistered agent of China and accepted money from Chinese government representatives to provide them aviation-related information from his U.S. intelligence community and defense contractor employers. An individual in China posing online as a job recruiter had contacted Moinian offering him a consulting opportunity. Moinian later traveled to China and other locations where he supplied US aviation information to individuals he knew were employed by or directed by the Chinese government in exchange for money.

Survey: 58 Percent of Organizations Say Third Parties and Suppliers Were Target of Cloud-Based Breach

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Proofpoint, Inc., a cybersecurity and compliance company, announced the release of its latest study, Cloud and Web Security Challenges in 2022, in collaboration with The Cloud Security Alliance (CSA). The commissioned study queried more than 950 information technology and security professionals from various organization sizes and locations to better understand the industry’s knowledge, attitudes, and opinions regarding cloud- and web-delivered threats. The results reveal that organizations are struggling to sufficiently secure new cloud environments implemented during the pandemic, while maintaining legacy equipment and trying to adapt their overall security strategy to the evolving landscape.

“In the wake of COVID-19, organizations substantially accelerated their digital transformation initiatives to accommodate a remote workforce.” said Hillary Baron, lead author and research analyst at CSA, the world’s leading organization in defining standards, certifications, and best practices to help ensure a secure cloud computing environment. “While these initiatives strive toward improving worker productivity, product quality, or other business objectives, there are unintended consequences and challenges because of the large-scale structural changes required. One of those challenges is developing a cohesive approach to cloud and web threats while managing legacy and on-premise security infrastructure.”

As organizations continue to migrate to the cloud, reliance on third parties and partners increases, which in turn exacerbates the risk of threats through the supply chain. The Cloud and Web Security Challenges in 2022 study shows that 81% of responding organizations are moderately to highly concerned about risks surrounding suppliers and partners, with almost half (48%) specifically concerned about potential data loss as a result of such risks. This high level of concern is entirely warranted as 58% of organizations indicated that third parties and suppliers were the target of a cloud-based breach in 2021.

The study reveals that defending data is rightfully a top concern for businesses, with 47% listing “sensitive data loss” as their most concerning outcome of cloud and web attacks. The specific types of data organizations are most concerned with are customer data, credentials, and intellectual property. 43% of organizations listed protecting customer data as their primary cloud and web security objective for 2022. Despite this, only one-third (36%) of the organizations surveyed have a dedicated Data Loss Prevention (DLP) solution in place.

“As organizations adopt cloud infrastructures to support their remote and hybrid work environments, they must not forget that people are the new perimeter. It is an organization’s responsibility to properly train and educate employees and stakeholders on how to identify, resist and report attacks before damage is done.” said Mayank Choudhary, executive vice president and general manager of Information Protection, Cloud Security & Compliance for Proofpoint. “Cultivating a culture of security within and around your organization coupled with the use of multiple streamlined solutions is critical to effectively protect people against cloud and web threats and defend organizational data.”

Key findings from the study include:

  • 47% of those surveyed listed “sensitive data loss” as their most concerning outcome of cloud and web attacks, while “paying ransom” was of least concern to respondents (10%).
  • 58% had a third party, contractor, and/or partner targeted in a cloud breach.   
  • Organizations are concerned that targeted cloud applications either contain or provide access to data such as email (36%), authentication (37%), storage/file sharing (35%), customer relationship management (33%), and enterprise business intelligence (30%).
  • Almost half of those surveyed (47%) blame dealing with legacy systems as key concern with their cloud security posture, while 37% feel they need to coach toward more secure employee behavior.
  • Only one-third (36%) of organizations surveyed have a dedicated Data Loss Prevention (DLP) solution in place. Other solutions implemented include Endpoint Security (47%), Identity Management solutions (43%) and Privileged Access Management (38%).

Cybersecurity Awareness Month: Meeting Awareness with Action

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Cybersecurity Awareness Month allows us to reflect on our progress in information security and the components that still need work. As the term “cybersecurity” has made its way into mainstream vernacular (not just in sci-fi movies but in everyday conversations in the workplace and home), it would be tough to argue that cybersecurity awareness hasn’t grown tremendously in the past few years. But what does cyber awareness mean, and what’s the ultimate goal in increasing awareness across the general population?

Being cyber aware is the online equivalent of not getting into the van of the person offering you candy as a kid. It’s about situational awareness – in the virtual world. Today, more people outside my infosec and tech circles seem to be aware that some cybersecurity “issue” generally exists – personal risks and threats against companies and our nation.

While we’ve built awareness of “the problem,” I believe we can continue building an understanding of what everyone, not just the tech pros, can and should be doing to improve security for all. Everyone is responsible for protecting themselves and the organizations they care about. As our lives become increasingly intertwined with the online world, we need to adopt a “security hygiene” mindset when interacting with technology. We all need to rally the troops to keep cyber attackers at bay. Here are four reminders to evangelize amongst your friends, family, and colleagues.

Enable Multi-Factor Authentication. Yes, it adds an extra step. But it’s worth preventing unauthorized individuals from accessing your account or data. Users who enable MFA are significantly less likely to get compromised. It provides backup if your password becomes compromised; unauthorized users would be blocked by the second authentication requirements, ultimately keeping them out of your accounts. Do it: the Two Factor Authentication (2FA), Multi-Factor Authentication, Two-Step Authentication, whichever your service asks you to do.

Use Strong Passwords. Bad passwords, coupled with no MFA, are a recipe for disaster. Follow whatever instructions your security department at work has documented for you, but for your purposes, use these guidelines:

  • Use a different, complex password for every site you visit. I mean it. EVERY. SINGLE. ONE.
  • Don’t use names or numbers that have meaning for you. Sure, the date of your marriage might be easy to remember, but it is also easy for bad actors to figure out – and as such, has no business being part of your password. Your first child’s name plus the date of their birth – yeah, that’s trivial as well. And if I ever find “qwerty” as part of your password, well, let’s just say we’re gonna have a frank conversation.
  • Use a password that is at least 12 characters. Yes, a few years ago, we said 8. Nowadays, an eight character password with upper, lowercase, and numbers can be brute-force guessed in about 2 minutes, while a 12-character one of the same complexity will take 24 years.
  • Use a password manager. There are several good ones out there; pick one and go. Use a good, really LONG password for your password manager, and then use it to generate unique passwords for all your websites and apps. A password manager with MFA is even better!

Recognize and Report Phishing. People are becoming more aware of suspicious links,, we’re moving too fast, and things still get clicked. Follow these guidelines to help you discern phishing from regular emails:

  • Is the sender asking you to do anything?
  • Is that something you were expecting them to ask you to do?
  • Are they indicating significant urgency?
  • Are they trying to get you to react without thinking?
  • Can you validate the request without using any of the information in the email?
  • Can you go directly to a website or phone number you already know?
  • Pretend you got the email on April Fools Day and apply the same skepticism to this email that you would to anything told to you that day.

These guidelines won’t keep you safe from every phishing attempt by themselves, but they’re a great start.

Update your software AND ALL THE THINGS!

Bad actors will exploit flaws in the system. Network defenders are working hard to fix them as soon as they can, but their work relies on all of us updating our software with their latest fixes.

Update the operating system on your earbuds, mobile phones, tablets, smart TVs, internet-connected toasters, self-driving cars, and laptops. (OK, maybe you don’t have all of these things but remember, any “smart” device is a computer running an OS, and that OS is 100% guaranteed to have at least one flaw in it). As a general rule, if you can no longer get updates for your device’s OS, it is time to retire it, as unsupported devices are unsafe. With the increased likelihood that you’re working from home these days, that vulnerability in your network could be a way into your company’s network – and you don’t want to be that person, do you?

After the OS updates, update your applications – especially the web browsers – on all your devices too. Leverage automatic updates for all devices, applications, and operating systems whenever and wherever they exist.

Like Smokey says: “Only you can prevent [cybersecurity incidents]!” OK, I paraphrased, but just as it isn’t solely the forest ranger’s job to prevent fires, we shouldn’t expect any of our favorite gadget makers, social platforms, or other tech services to guarantee our online security. Even in a work setting, your friendly Cybersec team needs your help as the first line of defense against cyber incidents. For cyber security awareness month this year, let’s meet awareness with action; after all, the data you save could be your own.

Lucapa Diamond boosts Lulo mine resource by 35%

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Australia’s Lucapa Diamond (ASX:LOM) reported on Tuesday a 35% increase in the resource carats at its Lulo diamond mine in Angola, where the company found a 113-carat white diamond in January.

Despite a reduction in grade to 6.86 carats per 100 cubic metres, which Lucapa said was a result of adjusting the mining dilution factor, the mine’s in-situ resource now sits at 135,900 carats at a modelled average diamond value of $1,440/ct. This was up from the previous estimation of 100,700 carats at $1,620/ct.

The updated resource accounts for mining depletion to the end of December 2020, as well as the delineation of new or additional resources. It’s also a result of Lucapa’s improved knowledge of existing resource areas, such as leziria, which have delivered good quality stones.

De Beers uses geofencing on world’s largest offshore diamond mining vessel

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caption id=”attachment_1003741588″ align=”alignnone” width=”660″]

De Beers and Orange Business Services said the solution was successfully piloted on board the MV Mafuta, pictured here. (Image by Gary, Wikimedia Commons).

 De Beers’ MV Mafuta. (Image by Gary, Wikimedia Commons).[/caption] A new IoT solution that provides geofencing to maintain safe work distances for crew operating heavy equipment has been installed at De Beers’ marine diamond mining operations. The system relies on Bluetooth low energy locators and wearable sensors as precision crew locator tools, integrated with onboard antennas and a software engine. It has been jointly developed by Orange Business Services, a network-native digital services company, and De Beers Marine South Africa. According to the companies, the solution was successfully piloted on board the MV Mafuta, which is currently the world’s largest offshore diamond mining vessel owned and operated by Debmarine Namibia, a 50/50 joint venture between the Government of the Republic of Namibia and De Beers Group. The vessel operates up to 150 km off the coast of Namibia. In this pilot, Orange Business Services imported the Mafuta’s AutoCAD files and undertook an onboard site survey to map antenna locations to geofence a predetermined area on the vessel. Ten crew members were equipped with wrist sensors. If one of the crew breached the geofenced area onboard the vessel, the ship’s bridge was alerted immediately. “Debmarine Namibia has a very clear aim of ‘zero harm’ across all our operations, and we are constantly looking at ways of enhancing employee safety and especially around the heavy machinery required for diamond recovery operations,” Gerhardus Theron, Vessel Manager of the MV Mafuta, said in a media statement. “(The) pilot phase has now confirmed the potential of this innovative approach that we could embed within our existing safety processes and procedures.” Since the geofencing pilot has already proved successful in one of the most challenging heavy industrial environments – a floating diamond mine at sea, with prolonged exposure to strong vibration and corrosive saltwater, the companies believe the next phase of this development will aim to refine the interface and data collection capabilities, and include testing a trigger function to deactivate machinery in the event of a breach of the geofence by a crew member. This article originally appeared on www.mining.com.

DIAMONDS: Star reports first results from Rio Tinto bulk sample

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Bauer trench cutter to extract a bulk sample at the Star-Orion diamond project in Saskatchewan. Credit: Rio Tinto[/caption] SASKATOON – Star Diamond has begun to receive results from Rio Tinto‘s bulk-sampling program at the Star-Orion South project in central Saskatchewan. Rio has so far processed material from four of the 10 trenches excavated last year from the Star kimberlite at the project, but full results have only been reported from the first – 19 FALCT001. A total of 2,517 commercial sized diamonds weighing 120.1 carats were recovered from 1,206.4 tonnes of material collected from first trench. (Commercial sized diamonds are defined as those that will not pass through a +1 DTC screen, which has round apertures of 1.09 mm.) The sample included four phases of kimberlite that returned sample grades of between 1.07 carat per hundred tonnes (cpht) and 14.09 cpht. Only two of the kimberlite types were deemed to contribute to the project’s economics and were included in a resource estimate completed by Star as part of a 2018 preliminary economic assessment PEA – MJF (Mid Joli Fou) and EJF (Early Joli Fou). EJF, which Star notes is the dominant kimberlite unit in terms of volume and grade, returned 2,031 diamonds weighing 109.67 carats from 778.24 tonnes for a grade of 14.09 cpht. The three largest diamonds, weighing 3.27, 3.03 and 1.73 carats, were all recovered from this section of the kimberlite. From MJF, 168 diamonds weighing 3.58 carats were recovered from 109.82 tonnes extracted for a grade of 3.26 cpht. “The diamond results from 19FALCT001 provide an early assessment that the trench cutter bulk sampling method has the potential to replicate grades similar to the previous underground bulk sampling and (large diameter diamond drilling) performed by Star Diamond on the Star kimberlite,” said George Read, Star Diamond’s senior vice-president of exploration and development, in a release. “Individual EJF kimberlite samples in this first trench exhibit a range of grades (4.88 to 23.34 cpht), which are as expected for the EJF kimberlite.” Rio Tinto began processing the samples in April at a processing plant it built onsite. Concentrates are shipped offsite to SRC’s lab in Saskatoon for final diamond recovery. The major used a novel method to collect the sample, using a Bauer trench cutter normally used in civil engineering applications. However, while the sample program was designed to minimize diamond breakage, Star says SRC has reported diamonds are being broken – either in the collection or processing of the samples. One issue may be the larger than expected size of samples sent to SRC for processing, but Star says a comprehensive diamond breakage study will be needed to pinpoint the cause. Star also reports that some coarse (6 to 25-mm) kimberlite material from the first bulk sample trench has yet to be processed. The ownership of the Star-Orion project is contested. Rio Tinto signed an agreement with Star in 2017 to earn up to a 60% interest in the Star-Orion project over 7.5 years with spending of up to $75 million. Rio says it has completed the work required under the four-stage agreement, and opted to exercise its rights for a majority stake in the project last November. But Star Diamond says the company has not satisfied its obligations under the agreement and started legal proceedings against its partner in March. The large, low-grade Star-Orion project contains high-value large diamonds and rare Type IIa stones. A 2018 prefeasibility study projected an open-pit operation with a mine life of 34 years would cost $1.4 billion to build and produce 66 million carats. For more information, visit: stardiamondcorp.com.

Teck exits oil sands with $1B sale of Fort Hills stake to Suncor

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Teck Resources (TSX: TECK.A | TECK.B; NYSE: TECK), Canada’s largest diversified miner, is exiting the oilsands business with the sale of its 21.3% stake in the Fort Hills project to Suncor Energy (TSX: SU; NYSE: SU) for $1 billion (about US$737.2 million).

The all-cash deal, effective November 1, will boost Suncor’s aggregate share in the oil sands operation to more than 75%. French energy major TotalEnergies SE, which has previously disclosed its intention to also exit the project for not being in line with its climate strategy, currently owns the remaining 24.6%.

“This transaction advances our strategy of pursuing industry leading copper growth and rebalancing our portfolio of high-quality assets to low carbon metals,” chief executive officer Jonathan Price, who assumed the top job at Teck earlier this month, said in the statement.

Fort Hills is an open pit truck and shovel mine located 90 km north of Fort McMurray, in northern Alberta, where raw oil sands bitumen is extracted and then upgraded. Suncor Energy is the majority-owner and operator of the mine, which started producing in 2018.

The operation has faced challenges in recent years, including missed production targets, safety issues and increasing costs, which prompted Suncor to launch an ongoing in-depth review of the asset.

The Calgary-based energy giant said in a separate statement it had begun a multi-year improvement initiative to optimize production. Over the next three years, Suncor expects 5% lower gross production and increased operating costs per barrel as it makes improvements for the long-term.

Production at Fort Hills was trimmed last year after it was discovered that work was needed to stabilize a slope at the mine. The operation was also hit in 2019 due to a provincial government imposed crude production limits, in an effort to deal with price differentials between U.S. and Canadian oil.

“While the Fort Hills mine has faced challenges in the early years of the mine life, including challenges due to government directed production shut ins, I have full confidence in our current mine plan assembled with fresh external mining perspectives,” Suncor’s interim president and CEO Kris Smith said.

The firm has taken several steps in recent months to shed non-core operations, including selling its wind and solar assets in Alberta and Ontario to focus on its oil sands business, as well as its hydrogen and renewable-fuels ventures.

Third quarter loss

Separately, Teck posted a loss in the third quarter due to a one-time charge related to the sale of its stake in the Fort Hills.

The Vancouver-based miner lost $195 million (US$144m) or 37 cents per diluted share for the quarter ended Sept. 30.

The result compared with a profit of $816 million (US$602m) or $1.51 per diluted share in the same quarter a year ago.

Vale opens first phase of C$945m copper complex expansion in Sudbury

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Vale (NYSE: VALE), the world’s largest iron ore and nickel producer, has opened the first phase of a C$945 million ($684m) expansion at its Copper Cliff Complex South Mine in Ontario, Canada.

The project’s initial expansion is expected to nearly double ore production at the Sudbury-based operation, adding about 10,000 tonnes of low-carbon nickel and 13,000 tonnes of copper production per year.

“The materials that we’re mining here in Copper Cliff are nickel and copper and cobalt; absolutely critical minerals if we’re going to achieve that revolution in our economy and it’s happening right here in Sudbury,” said Ontario Mines Minister George Pirie.

More than 12 km of tunnels were developed to link the south and north shafts of the Copper cliff mine.

Construction of the complex created 270 new jobs and spanned more than 5 million people hours moving over 600,000 tonnes of rock, Vale said.

Work comprised rehabilitating the south shaft, expansion for underground ore and waste handling systems and surface loadout and facilities, as well as the construction of new ventilation systems.

“Feasibility studies are currently underway for future development phases of the Copper Cliff Mine Complex, with potential to deliver sustainable and responsibly sourced minerals essential for a low carbon economy well into the future,” Vale said in the statement.

The Brazilian mining giant kicked off the project of injecting new life into the mine in 2017.

JV Article: Element 29 Resources defines first copper-moly resource in mineral-rich Peru

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Element 29 Resources (TSXV: ECU) a Vancouver-based copper explorer with projects in Peru, has released its first resource estimates for the Elida project in the Andean nation, with an initial resource soon to follow from its Flor de Cobre project.

Both properties were previously drilled and returned intercepts of potentially economic grades with low observed levels of deleterious elements like arsenic.

“I think this is a very significant initial copper resource estimate that we’ve delivered,” said CEO Steve Stakiw, a geologist who joined the company in April. “The potential to grow this is great. Also, the molybdenum is almost double global average moly grades in copper-porphyry systems and has the potential to enhance the economics of the deposit.”

View eastward across the E29’s Elida Porphyry Cluster. Note the drilling equipment
on the left side of the photograph. ELEMENT 29 PHOTO

The initial estimate at Elida, located 250 km north of Lima, outlines 321.7 million inferred tonnes grading 0.32% copper, 0.03% molybdenum and 2.6 g/t silver with a low modeled 0.74:1 strip ratio on the Zone 1 porphyry, one of five porphyry centres on the project. Stakiw said that resource growth potential on Zone 1 remains open.

Element 29 is also initiating its next phase of drilling on the project to test the other porphyry zones at Elida. Stakiw noted that additional metallurgical studies are planned.

A near-surface higher-grade subset of the resource consisting of 34.1 million tonnes inferred at 0.55% copper, 0.037% molybdenum and 4.4 g/t silver at a cut-off grade of 0.45% copper has the potential to be mined with minimal stripping in the initial years of mining at Elida, said Stakiw.

“For me, it’s the ability to take this from an exploration stage project to what I think is a very material copper resource,” he said. “In terms of pounds in the ground we’re at about 2.2 billion contained pounds of copper in just a portion of one of five porphyries.”

E29 is also planning to deliver a resource estimate in late 2022 on the Candelaria zone at Flor de Cobre, which is 250 km northwest of the Chilean border near Arequipa in the Southern Peru Copper Belt.

There is a historical copper resource at Candelaria of 57.4 million tonnes of 0.67% copper that was outlined by Rio Amarillo and Phelps Dodge – now Freeport-McMoRan (NYSE: FCX) in the 1990s. E29 will be updating that resource with data from a recently completed drill program, said Stakiw.

The Southern Peru Copper Belt is a portion of the Andean magmatic arc that hosts numerous economic copper-gold porphyry and skarn deposits.

The Flor de Cobre project also hosts the large Atravesado porphyry target, supported by coincident outcrop geology, surface geochemistry and geophysical responses. Atravesado is located approximately 2 km northwest of Candelaria and is a 1.5-km by 1.6-km circular zone characterized by outcropping copper oxide mineralization in association with quartz vein stockworks and potassic alteration, said Stakiw.

As a junior that’s moving from early exploration to defined resources at its projects, he notes that this transition usually benefits a company’s stock price.

“You look at the opportunity for the company to get that re-rating out there, because as you transition from an explorer to a company with delineated or proven resources, then you’re moving down the development pathway,” he said. “That’s when you ideally start to get better valuations in the market.”

Both E29 projects are at comparatively low altitudes, making exploration and potential development easier, said Stakiw. Some mines in the region are at 4,500 to 5,000 metres elevation. Also, Elida and Flor de Cobre are close to paved regional highways and other infrastructure in pro-development jurisdictions of Peru, he said.

“There are mines and a skilled workforce around us,” Stakiw said. “So, it checks all those boxes. Both our projects have that luxury. For us, that de-risks the development pathway. It’s one thing exploring and finding stuff, but if it’s at high altitude in a remote area that’s anti-mining we know how that ends.”

E29 is in regular dialogue with adjacent communities, maintaining relationships that are open and transparent, said Stakiw, noting some other Peruvian mining projects can be fraught with challenges.

“There are projects like the Las Bambas mine, which is a big copper operation in Peru, it’s near the Southern Peru Copper Belt, but it’s inland a bit, so you’re getting into the agricultural and tourist areas near Cusco and into those areas where it’s much more challenging. The communities can be tougher to negotiate with as there is increased competition for land use.”

Added scrutiny of mining projects around the world is a good thing, said Stakiw, noting responsible companies have an opportunity to set an example. Taking shortcuts isn’t something he’s interested in.

“We do like Peru,” he said. “Obviously, we are biased because that’s where we operate. It’s a great place to be doing business, especially for a copper explorer, because it’s the number two copper producer in the world and has strong exploration and discovery potential given its metal endowment.”

Out of the world’s top 10 largest copper mines, three or four are in Peru, Stakiw said. Most of the rest, he explained, are in Chile, which is the world’s number one copper producer.

“We are in the same belt and just over 20 km on trend from the large Cerro Verde mine,” he said. “I think that’s the number five copper producer in the world, so we’re in a great neighbourhood.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by ELEMENT 29 RESOURCES and produced in co-operation with The Northern Miner. Visit www.e29copper.com for more information.