Permitting
The Company has continued with exploration on its claims and leases using existing permits while simultaneously preparing an application for production permits. The Company presently has three active Land Use Permits (LUP) and a Class B Water Licence which enable early stage and advanced exploration to be carried out on the Prairie Creek property. A fourth LUP application to re-open the winter road is in the late stages of permitting process. Extensive time and effort has been expended in permitting processes, and in particular, rigorous Environmental Assessments have been carried out on the three LUP’s and the Water License. A brief summary of each permit follows with a link to the Mackenzie Valley Environmental Impact and Review Board (“MVEIRB”) and/or the Mackenzie Valley Land and Water Board (“MVLWB”) Websites for a comprehensive list of documentation on the public registry relating to the particular permits.
PERMITTING ACTIVITY (starting with most recent)
Permitting Update: Applications to MVLWB: MV2008L2-0002, MV2008D0014 MV2008T0013, MV2008T0012 as of August 11, 2008 are now referred to Environmental Assessment under the Mackenzie Valley Environmental Impact Review Board.
As reported in the Company’s August 7, 2008 news release, applications to the Mackenzie Valley Land and Water Board (the “MVLWB”) for operating permits for the Prairie Creek Mine were deemed to be complete and the MVLWB initiated the preliminary screening process and requested comments from interested parties.
The MVLWB received comments from a number of parties, including Indian and Northern Affairs Canada (“INAC”) and various First Nations. Following a request from the Nahanni Butte Dene Band, as per Article 12 of the Settlement Agreement between the Dehcho First Nations and the Government of Canada, INAC referred the proposed development to environmental assessment.
In its referral INAC letter stated that “INAC supports responsible economic development within a sound regulatory regime in the Northwest Territories.” In particular, INAC cited specific changes or additions to existing infrastructure proposed by Canadian Zinc that need to be further assessed, such as, “the changes to subsurface tailings disposal, use of the original surface tailings pond as a water management facility, waste rock management plans, sewage treatment plant and power plant upgrade plans.”
The Company received formal notice from the Mackenzie Valley Environmental Impact and Review Board (the “MVEIRB”) on August 11, 2008 of the referral of the applications to Environmental Assessment. The MVEIRB has created a public registry, available on line at www.mveirb.nt.ca/registry, and is now in the process of determining the scope and terms of reference of the assessment in consultation with interested parties.
Various aspects of the Prairie Creek project have previously been the subject of five separate environmental assessments by the MVEIRB, all of which recommended that the proposed projects should proceed. During these previous assessments a considerable amount of information and data has been generated which should assist and expedite the current review process.
For a simplified overview of the applications please refer to our new brochure entitled:
“REGULATORY APPLICATIONS FOR PRAIRIE CREEK OPERATIONS”.
Water Licence for Prairie Creek Mine Operation (MV2008L2-0002), in progress
Land Use Permit for Prairie Creek Mine Operation (MV2008D0014), in progress
Status: MVLWB received June 2, 2008 presently reviewing.
THE PROPOSED PRAIRIE CREEK MINE OPERATION:
Mineral Resource Basis. The Prairie Creek Mine mineralization occurs as both Vein and Stratabound type deposits. Based on a recently completed detailed underground exploration and development program an updated mineral resource was calculated in 2007 (in accordance with the requirements of National Instrument 43-101 Standards for Disclosure for Mineral Projects) which defines an overall Measured and Indicated Mineral Resource totalling 5,158,164 tonnes grading 10.8% Pb, 11.3% Zn, 175 g/t Ag and 0.4% Cu. This is sufficient for more than 10 years of operations at the planned production rates. In addition, there is an open-ended inferred resource of 5,541,576 tonnes grading 11.4% Pb, 13.5% Zn, 215 g/t Ag and 0.5% Cu. Mineral resources were reported in a 43-101 compliant Technical Report dated October 12, 2007, prepared by MineFill Services Inc. (Dr. David Stone and Stephen Godden – Qualified Independent Persons).
Environment. Extensive environmental data has been collected at the Prairie Creek Mine Site over recent years to update and add to the baseline information that was collected previously as far back as the late 1970’s. Sixteen years of water flow data have been recorded on the Prairie Creek watercourse adjacent to the Mine Site. CZN now has an extensive database on water quality, stream flows, local climatic variables, and the wildlife in the area.
The Mine. All mining will be performed from underground. Underground development and workings (about 5,000 metres) already exist on three levels, including the new 600 metre decline driven in 2006/07. Proposed production rates will initially start at 600 tonnes/day and will build to 1,200 tonnes/day. Mining will occur on a year round basis by cut-and-fill methods. Mine voids will be backfilled with a mix of filtered tailings, waste rock aggregate and cement. The current planned mine life is 14 years.
The Mill. The Mill, which is already constructed on site but never operated, will process 600-1,200 tonnes/day. Ore will be crushed to a gravel-size and subjected to dense media separation (“DMS”). The lighter, uneconomic “gangue” minerals (about 30%) will create a waste rock aggregate. Denser material will be processed further by grinding and flotation to produce concentrates of lead sulphide, zinc sulphide and lead oxide. No hazardous chemicals will be used in the process.
Concentrates and Road Haul. The concentrates will be bagged, stored under cover and trucked off-site on flat-deck trailers over the winter road. CZN holds a Type “A” LUP (MV2003F0028) for the use of the winter road from the Prairie Creek Mine to the Liard Highway. The permit for the existing road has been determined to be exempt from environmental assessment (Canadian Zinc Corporation vs. MVLWB, NWT Supreme Court, 2004). CZN has also applied for Type “A” LUP’s for two new transfer facilities to be located approximately mid-point along the winter road and at the junction of the winter road with the Liard Highway.
Waste Management. All flotation tailings will be backfilled into the voids in the underground mine in a mix with the waste rock aggregate and cement. The flotation tailings are expected to be non-acid generating with low sulphide content and excess buffering capacity. Waste rock from underground development along with excess waste rock aggregate from the DMS plant will be placed in an engineered Waste Rock Pile (“WRP”) in the adjacent Harrison Creek valley.
Water Management. An existing large pond, originally intended in 1980 for tailings disposal, will be reconfigured, relined and recertified to form a two-celled Water Storage Pond. Mine drainage, treated sewage water and WRP runoff will report to the first cell. Water for the mill process will be taken from this first cell. Excess water from the first cell will overflow into the second cell. Used water from the Mill will also report to the second cell. The second cell will feed a water treatment plant. The treated water will discharge to the existing certified Polishing Pond and from there into the existing Catchment Pond, before final discharge to the environment.
Site Infrastructure. The Site presently contains a near complete mill, three levels of underground workings, a fuel tank farm, office facilities, accommodation facilities and workshops. Existing buildings and structures will be upgraded and modernized. New facilities will include fuel-efficient low-emission power generation units, a kitchen/accommodation block, concentrate shed and an incinerator.
Socio-Economics and Manpower. The operation of the Prairie Creek Mine will provide substantial economic stimulus to the region, and presents a unique opportunity to enhance the social and economic well-being of the surrounding communities. There will be approximately 220 direct full time jobs, half of this number being on-site at any one time. Personnel will generally work a three weeks on, three weeks off schedule (with variations as required). CZN’s objective is to employ a workforce with a 35% northern content, and a minimum 15% First Nations content assisted by training programs. In addition, there will be many indirect business and employment opportunities, mostly related to transport and supply of the Mine Site and environmental monitoring and management.
Mine Closure. At the end of the Mine’s life, the Site will be reclaimed. The underground development will be backfilled. Bulkheads at strategic points will help limit the movement of groundwater. The objective is to create a complete seal to ensure there is no long term mine drainage. The WRP will be covered and sealed with a clay-rich soil. Site buildings and infrastructure, if deemed not to have any future use, will be dismantled and the Site will be returned to its natural setting.
To view the complete Project Description Report please click here**
Land Use Permit for Tetcela Transfer Facility (MV2008T0013), in progress
Status: MVLWB received June 2, 2008 presently reviewing.
Operation of the Prairie Creek Mine will require transport of significant volumes of concentrate from the mine to the market. The initial proposal for operations is based on a winter road scenario and in order to support the movement of concentrate out and supplies in there is a need to establish some transfer points along the route. The Tetcela Transfer Facility (“TTF”) is proposed to be established at kilometre 84 of the winter road to expedite the shipment of concentrate across the Liard River Ice bridge.
To view the complete Project Description Report please click here**
Click here and then click on 2008 when in the Mackenzie Valley Website: Public Registry MV2008T0013
Land Use Permit for Liard Transfer Facility (MV2008T0012), in progress
Status: MVLWB received June 2, 2008 presently reviewing.
Operation of the Prairie Creek Mine will require transport of significant volumes of concentrate from the mine to the market. The initial proposal for operations is based on a winter road scenario and in order to support the movement of concentrate out and supplies in there is a need to establish some transfer points along the route. The Liard Transfer Facility (“LTF”) is proposed to be established at the junction of the winter road and existing Liard Highway. This facility will expedite the transfer and transport of inbound and outbound material in relation to operations at the Prairie Creek Mine.
To view the complete Project Description Report please click here**
Click here and then click on 2008 when in the Mackenzie Vallet Website: Public Registry MV2008T0012
Winter Road Rehabilitation: CLASS "B" WATER LICENCE (MV2007L8-0026)
The Winter Road Land Use Permit application process took place over a substantial time period from application, on September 2003, to issue of permit, April 2007. Subsequent to receiving LUPMV2003F0028 a preliminary technical assessment of the road conditions took place which determined that during the course of over 3 years of time that passed while in the regulatory process there had occurred a number of flood events which had caused significant washouts to occur over the Prairie Creek/Sundog sections of the road. This particular section of road was previously permitted as an all season road. It was determined that in these particular sections it would be advantageous to properly rebuild the road with suitable rock armour during the summer/fall season to protect it from future washouts. This would also substantially reduce the work that would be required during the winter season to re-establish the road base in these sections of road. Since significant amounts of material would be required to be moved within the creek beds a Class B Water Licence was applied for with the MVLWB.
An application was submitted June 7th 2007 to the MVLWB and a Water Licence was issued March 20, 2008. In addition to this Water Licence an application seeking authorization from the Department of Fisheries and Oceans Canada (DFO) was required. This DFO application for authorization was submitted also in early June 2007 and an authorization to proceed with the rehabilitation work was issued from DFO July 15, 2008. Work has now commenced on the rehabilitation of the winter road.Click here and then click on 2008 when in the Mackenzie Valley Website: Public Registry MVLWB MV2007L8-0026
Winter Road Land Use Permit (MV2003F0028)
Permit application MV2003F0028 was submitted to the MVLWB on September 25 2003, to reopen the winter access road from the Liard Highway to the Prairie Creek mine in order to replenish supplies to sustain multi-year exploration. The road was previously permitted prior to 1984 when the Mackenzie Valley Resource Management Act (MVRMA) was enacted. Therefore, the Company considered the permit application to be exempt from screening for EA, or ‘grand-fathered’, according to Part 5 of the Act. However, the MVLWB took a contrary view, and referred the application to EA. The Company contested the referral, and a Judicial Review took place on December 9, 2004 in the Supreme Court of the Northwest Territories. A decision in favour of the Company was handed down May 6, 2005 and the MVLWB were instructed to proceed with the permit process. For details of the court decision please click here.
The MVLWB subsequently received letters from the Nahanni Butte Dene Band who contend that the issue of a permit for the road would be a serious infringement of their aboriginal and treaty rights, protected by Section 35 of the Constitution Act, 1982, and that the Crown had not consulted them on the matter. The MVLWB decided to suspend the permit process until the Department of Indian and Northern Affairs (INAC) has informed them that appropriate consultation has taken place between the Crown and the Band. The MVLWB received a consultation report from INAC on February 15, 2007. The MVLWB then circulated the application in order to receive further comments on conditions of a Winter Road LUP and subsequently issued the Land Use Permit April 11, 2007 with an expiry date of April 10, 2012.
Public Registry MVLWB MV2003f0028
Phase III Drilling Permit (MV2004C0030)
The Company applied for an amendment to LUP MV2001C0022 (Phase II Drilling) in order to drill holes more than 1000 m from the Mill, including the crossing of Prairie Creek. The amendment was denied, and the application was referred to EA on June 1, 2004 (MVEIRB file 0405-02). After a lengthy review process, the MVEIRB recommended the project proceed with conditions, and the MVLWB issued a Land Use Permit on May 11, 2006.The Company completed four shallow diamond drill holes in 2006 and confirmed the continuity of the mineralized vein below surface trenches approximately 2 km west of the camp.
Public Registry MVEIRB
Public Registry MVLWB MV2004C0030
Pilot Plant Operation and Underground Decline Water License (Class ‘B’) (MV2001L2-0003)
On September 4, 2008, Canadian Zinc received notice from the MVLWB that Water Licence MV2001L2-0003 had been renewed for 5 years. The Water Licence expiry date is now September 9, 2013. The application for a Pilot Plant operation was subject to joint Environmental Assessment (EA) with the Decline application. A Water License was issued on September 10, 2003. On October 10, 2003 the Company and the MVLWB received notice of an application in Federal Court for a Judicial Review of the Water License by applicants, Nahanni Butte Dene Band, Pehdze Keh and DehCho First Nations. The Applicants felt that the terms and conditions of the draft license were not properly incorporated into the issued License. The Attorney General joined the applicants because of a precedent issue. The Judicial Review occurred on August 30, 2005. The Company and the Attorney General agreed on a revised wording, and recommended this to the court. A decision was handed down December 23 in which the Judge instructed the MVLWB to re-issue the License with the recommended wording. For details of the court decision please click here. A revised Water License was issued on February 6, 2006.
Public Registry MVEIRB
Public Registry MVLWB MV2001L2-0003
Underground Decline, Exploration Drilling and Pilot Plant Land Use Permit (MV2001C0023)
On September 4, 2008, Canadian Zinc received notice from the MVLWB that Land Use Permit MV2001C0023 had been granted a 2 year extension. The Land Use Permit expiry date is now September 9, 2010. After a rigorous Environmental Assessment, the MVEIRB issued its Report of Environmental Assessment on January 22, 2002 recommending approval of the proposed development subject to various terms and conditions to mitigate against potential impacts to the environment. The Report was forwarded to the Minister of Indian and Northern Affairs on February 6, 2002 for approval as required under the Mackenzie Valley Resource Management Act. Land Use Permit MV2001C0023 was received on September 10, 2003. The permit provides for the development of a new 600 m long Decline from the existing 870 m level adit with at least 9 ‘stations’ to allow the drilling of 50 to 250 m long holes. By the end of 2006, the Decline had been driven 400 m, 6 stations were established, and 6 diamond drill holes were completed. The permit also provides for operation of a Pilot Plant, although the Company has chosen not to proceed with this at present, choosing instead to conduct metallurgical testing off-site.
As part of Decline development, the Company implemented collection and treatment of mine water. As water from the Decline is pumped to the 870 m level adit, which itself produces water, water from both sources was treated. This is the first time that legacy metal-bearing (mainly zinc) water from the 870 m level is being treated. The Company was successful in removing approximately 95% of the total zinc contained in the combined flow.
Public Registry MVEIRB
Public Registry MVLWB MV2001C0023
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