appendix 4.3-b kitsault mine project: nisga’a community
TRANSCRIPT
KITSAULT MINE PROJECTENVIRONMENTAL ASSESSMENT
APPENDICES
VE51988 – Appendices
APPENDIX 4.3-BKitsault Mine Project: Nisga’a Community
Presentation
AVANTI MINING INC.Kitsault Mine Project:
Nisga’a Community Presentation
April 2011
� 30 years exploration and development experience
� Previously with Gold Fields, Metallica Resources and Lac Minerals
� Director of New Gold
� 35 years mining financial experience
� Previously with Denison Mines, Vista Gold, EuroZinc and Centenario Copper
� Former COO of Thompson Creek Mining
� 30 years experience in operations and project development with Rio Algom Ltd. and Coeur d’Alene Mines
� Former Vice President Projects of Thompson Creek Metals – Endako and Mt. Emmons studies
� Over 20 years with Teck and Teck Cominco – Northern Operations
� 40 years Exploration and Development experience
� Previously with Cyprus - Amax, Climax, Getty Minerals and Coeur d’Alene
Management of Avanti
Craig J NelsenPresident & CEO
A J Ali CFO
Kenneth W. CollisonSVP Project Development
Robert Blair VP Exploration
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Bob JackoFeasibility Project Manager
� 30 years exploration and development experience
� Previously with Gold Fields, Metallica Resources and Lac Minerals
� Director of New Gold
• Registered Professional Biologist
• 10 plus years of environmental assessment experience
• Owners representative and main regulator contact
• Project Manager for Tailings and Water Management Design and EA sections: Hydrology, Hydrogeology, Terrain Hazards and Mass Balance WQ Model
• 15 years experience in mine design & operations, permitting and environmental assessment
• Senior Associate with over 25 years experience in environmental assessment
• Professional Biologist (BC and Alberta)
• Environmental Assessment Project Manager
� Professional Geoscientist (APEGBC)
� 23 years of experience in exploration and environmental geochemistry
� SRK North America Principal
Craig J NelsenPresident & CEO
Shane UrenGreenwood Environmental
Greg SmythKnight Piésold
Stephen Day SRK
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Tim BekhuysAMEC Earth & Environmental
Environmental Assessment Team
TMF DesignWater BalanceWater Management
ReclamationARD AssessmentPit Geotechnical
Strategic PlanningFirst NationsConsultation
Indigenuity Consulting
Group Incorporated
)EA Working GroupTreaty Consultation
Environmental Assessment
EA Participants
Lead Engineer and EA
)
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LendersIndependent Engineer
Debt Advisor/Arranger
Kitsault History
Kitsault discovered in 1916
Produced for two periods 1967 – 1972 & 1981 – 1982
Produced 30 mm lbs of Mo from 13.4 mm tonnes milled
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One of the top five primary Molybdenumassets in the world
Key Project Highlights
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Brownfield Site ExistingInfrastructure Proven Resource
Discussions withNisga’a Nation 2008
EffectiveDevelopment Plan
Two Decades ofEnvironmental Data
Kitsault Mine – Current view
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Kitsault Video – Future Rendering
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One of Canada’s few modern-day First Nation Treaties
Nisga’a Neighbors
Communication Protocol Signed December 2008
The Nisga’a Treaty clearly demarcates the land and mineral title ownership
Kitsault creates high paying jobs, providing economic benefit to the local communities
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Location of Kitsault Mine
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Terrace
Stewart
Prince
Rupert
Smithers
Ketchikan
Shortest Ocean route to Asia
Mineral Claims and Leases
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X Hoan North
X Hoan South
X Nimble
Alternatives Assessment – Tailings
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Project Overview
� Reserves: 232.5 million tonnes grading 0.081% Mo
� 15 to 16 year mine life
� Milling Rate: 40,000 to 50,000 tonnes per day
� First five years of mining: 0.101% molybdenum
� 374 million pounds of molybdenum
� Ore processing on site
� Between 80 and 100 tonnes of concentrate per day � two to three 40 tonne concentrate trucks per day direct to Vancouver
� Low waste to ore ratio; 0.77:1
� Land based tailings management
� One waste rock management facility between the TMF and the Pit
� Use of existing roads and powerline – under 8 km of new road
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Site Arrangement
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3-D View at Completion of Mining
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TMF Safety and Stability
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Earthquake Return Period Events• Older Buildings = 500 years• Newer Buildings = 2500 years• Kitsault TMF = 10,000 years
TMF Surface and Groundwater Flow
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Surface & Groundwater will naturally flow towards Open Pit and Lime Creek, following existing drainages
Staff Accommodations
� Kitsault Township not available for Project
� Facility must accommodate:
� Construction phase: 700 personnel
� Operation phase: 300 personnel
� Approximately 50% of total workforce will utilize at any one time
� Dormitory style with cafeteria and recreation centre
� Built in units – can be expanded/downsized as required
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Water Management Plan
� Main objective of WMP – to control all water that originates from within Project area in environmentally responsible manner by:
� Optimising use of available water sources
� Managing excess water
� Water management activities will include:
� Controlling, collecting, and utilizing seepage and undiverted surface runoff
� Diverting upstream catchment from site facilities
� Optimising volume of water stored in TMF supernatant pond
� Storm water management and sediment/erosion control measures
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Waste Rock Management Facility
� Waste rock:
� ~ 178 million tonnes
� Used in construction of TMF embankments
� Placed in East WRMF
� Opportunity to convert ~35 million tonnes to ore
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Concentrate Transportation
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700 Construction Jobs at Peak� Heavy Equipment Operators
� Mechanics
� Millwrights
� Electricians
� Control Technicians
� Administrative Personnel
� Service And Maintenance Personnel
� Environmental Technicians And Compliance
� Emergency Medical Specialists
Employment Opportunities - Construction
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Employment Opportunities - Operations
Approximately 300 Operation Jobs� Plant Operators
� Line Superintendents
� Mine Truck Drivers
� Mine Shovel Operators
� Engineering And Technical Specialists
� Administration Personnel
� Service And Maintenance Specialists
� Environmental And Health Services Specialists
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Closure and Reclamation
� Full submersion, or partial submersion and soil covering over exposed areas
� Construction of spillway
� Dismantling and removal of structures and equipment, including seepage management system
� Removal and re-grading of access roads, pipelines, ponds, ditches, and borrow areas
� Long-term stabilization of all exposed erodible materials and revegetation of rehabilitated surfaces
� Groundwater monitoring wells and geotechnical instrumentation retained
� Post-closure requirements: annual inspections and confirmation of design assumptions adopted for closure
� Allowed to fill with water
� Patsy Creek diversion decommissioned and redirected into Pit
� Discharge towards Lime Creek through spillway at low point of Pit
� Buildings and structures removed, and dismantled or demolished
� Disturbed areas re-graded, capped with growth material, and fertilized and seeded
� Mine site roads scarified and seeded and stream crossings returned to pre-mining condition
� Site landfill closed
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3-D View at Closure
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� Avoidance of fish bearing waters and lakes
� Use of existing roads, mine and infrastructure to avoid new impacts
� Baseline data collection – long history
� Opportunities to further remediate historic impacts
� Compact Project footprint
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Key Environmental Considerations
2010 2011 2012 2013
Estimated Project Timeline
from 2009Environmental Baseline
Feasibility Study
EA Process
Permitting
Construction
Start-Up
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EA App EA Cert
Summary
� Dedicated Management and proven Board of Directors
� Brownfield site (~15 years of data)
� High-quality, world class deposit
� Commitment to Nisga’a business opportunities
� Existing infrastructure
� Access road
� Powerline
� Proven metallurgy
� Compact Project footprint
� Predominantly within the Patsy Creek watershed
� Viable proven reclamation options
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