Permitting/ Permits

Permitting Status Overview

Permitting Activity

Positive Environmental Assessment

The Company's principal focus has been to advance the Prairie Creek Property towards receiving a Class “A” Water Licence and associated Land Use Permits, through the regulatory process established under the Mackenzie Valley Resource Management Act, that will permit the further development and subsequent mine production at Prairie Creek.

After successful completion of a nearly four year environmental assessment process, the Mackenzie Valley Environmental Impact Review Board (“Review Board”) issued its Report of Environmental Assessment and Reasons for Decision for Canadian Zinc’s proposed Prairie Creek Mine on December 8, 2011.

The Review Board concluded that the proposed development of the Prairie Creek Mine as described in the Report of Environmental Assessment, including the list of commitments made by Canadian Zinc during the proceedings, is not likely to have any significant adverse impacts on the environment or to be a cause for significant public concern.

The Review Board concluded that an environmental impact review of this proposed development is not necessary and that the Prairie Creek Mine project should proceed to the regulatory phase for approvals by the Mackenzie Valley Land and Water Board (“Water Board”).

In a Decision dated June 8, 2012, the Minister of Aboriginal Affairs and Northern Development, on behalf of the responsible Ministers with jurisdiction, including the Minister of the Environment, the Minister of Fisheries and Oceans, the Minister of Environment and Natural Resources, the Minister of Transport Canada and the Minister of Environment and Natural Resources of Government of the Northwest Territories, advised the Review Board of the Decision that the Ministers will not order an environmental impact review of the proposed development of the Prairie Creek Mine, nor will they refer the proposal to the Minister of the Environment for a Canadian Environmental Assessment Act joint panel review.

The Company’s Developers Assessment Report (“DAR”) which explains the proposed mine and road developments and assesses the potential environmental impacts is available online in the public registry at http://www.reviewboard.ca/registry/project_detail.php?project_id=70&;doc_stage=5

The Review Board’s Report of Environmental Assessment and Reasons for Decision document for Canadian Zinc Corporation’s Prairie Creek Mine EA0809-002 is available online in the public registry at http://reviewboard.ca/registry/project_detail.php?project_id=70&;doc_stage=11

 Mackenzie Valley Review Board's Technical Session in Dettah 

Work Plan and Directive on Class "A" Water Licence (Operations)

In January 2012, following the completion of the Environmental Assessment in December 2011, the Water Board commenced the regulatory process for the issue of a Class “A” Water Licence and Land Use Permits for the operation of the Prairie Creek Mine. In February 2012, the Company submitted a Consolidated Project Description (“CPD”), highlighting the changes that resulted from commitments made by Canadian Zinc during the environmental assessment process.

The Water Board completed its review of the information contained in the application, Environmental Assessment and the CPD and in May 2012, issued a Directive on additional information required by the Water Board at this stage of the Regulatory Process.

During the course of the previous Environmental Assessment the Company committed to further water quality/treatment studies. The water quality/treatment studies are based on products generated from representative bulk rock and water samples previously collected from site which have been processed utilizing a milling process circuit developed from previous metallurgical studies by SGS Lakefield.

In the fall of 2011, the Company collected a 700 kg bulk composite sample of mineralization from the 870m and 930m underground levels at Prairie Creek. The material was shipped to SGS Minerals Services in Vancouver for processing. The locked cycle tests were performed with water that was collected and shipped down from the Prairie Creek Mine in order to produce representative process water. The sample was crushed and sorted then sent to SGS Lakefield to undergo Dense Media Separation and then returned to Vancouver.

SGS has carried out a number of locked cycle tests in order to generate mineral concentrates, waste tailings and waste water. The process water then underwent further treatment studies conducted by CEMI Labs along with toxicity studies by Hatfield Consultants. Other generated products, such as the tailings, are slated for further engineering studies related to paste backfill.

In October 2012, the Company filed its response to the Water Board and in a further submission in November incorporated the results of additional water quality/treatment studies received from SGS Lakefield and CEMI Labs. Due to the necessary time required to complete the lab testing program the Water Board revised the original work plan.

In November 2012, a series of technical sessions were held in Yellowknife to review the Company’s submissions to the Water Board. The sessions resulted in triggering 24 additional Information Requests which the Company responded to in December 2012. Follow-up meetings to further discuss the Information Requests were held in Yellowknife and Fort Simpson during the week of December 20^th .

Formal written interventions to the MVLWB were submitted by the Intervening Parties on January 11, 2013 and CZN submitted a response to the Interventions on January 18^th. During January 29-31^st, 2013, the Company and Intervenors attended Public Hearings held in Fort Simpson which was adjudicated by the Water Board. A Public Hearing scheduled to be held in Nahanni Butte February 1st was postponed, due to weather, and held as a Teleconference on February 8^th, 2013.  Final closing statements by all intervenors were filed by February 15th and the Company filed its’ closing statement February 22^nd, 2013. A draft Water Licence is expected to be issued for review March 15th 2013 followed by a final licence after Ministerial approval in June/July 2013.

Water Licence for Prairie Creek Mine Operation (MV2008L2-0002), in progress

Land Use Permit for Prairie Creek Mine Operation (MV2008D0014), in progress

Land Use Permit for Liard Transfer Facility (MV2008T0012), in progress

Click here and then click on 2008 when in the Mackenzie Valley Website: Public Registry MV2008L2-0002, MV2008D0014 and MV2008T0012.

Status: MVLWB received the applications on June 2, 2008. An EA has been completed and the permitting process has started.

Road Land Use Permits (Operations)

In January 2013, the Water Board issued the Company a Land Use Permit (“LUP”) MV2012F007for the establishment and operation of the winter road that will service an operating Prairie Creek Mine. The Land Use Permit was issued for a period of five years ending in January 2018, and permits the construction, maintenance, operation and use of a portion of the winter road connecting the Prairie Creek Mine to the Liard Highway, situated outside the expanded Nahanni National Park Reserve. This permit allows the outbound transportation of the zinc and lead concentrates to be produced at the mine and the inbound transportation of fuel and other supplies during the actual operation of the Prairie Creek Mine. The road permit also incorporates realignment of the original route which will improve access and further reduce potential environmental impact.  Associated with this LUP the MVLWB also issued a Type “B” Water LicenceMV2012L1-0005, valid for a period of seven years, to allow the limited use of local water resources and disposal of waste during road construction and operations.

Land Use Permit for Prairie Creek Mine Access Road (MV2012F0007), issued

Water Licence for Prairie Creek Mine Access Road (MV2012L1-0005), issued

Click here and then click on 2008 when in the Mackenzie Valley Website: Public Registry MV2012-F0007 and MV2012L1-0005.

An additional Land Use Permit and Water Licence for operations relating to the access road that connects the Prairie Creek Mine to the Liard Highway through the expanded Nahanni National Park Reserve is required. The Company has applied to and is in advanced discussions with Parks Canada regarding this road related permit and licence.

In April 2012, the Company met with Parks Canada at a two day technical session in Fort Simpson, NWT, to discuss the applications associated with road access through the Nahanni National Park Reserve. The Nahanni Butte Dene Band and the Dehcho First Nations were represented at the technical session. A partial road application was submitted to Parks Canada in June 2012. Further field information was collected in September 2012 and the required documentation was submitted in November 19th, 2012. Subsequent information was forwarded to Parks Canada February 13, 2013 who are now further deliberating on the application.

In July 2012, Parks Canada extended the Land Use Permit and Water Licence for the portion of the road that passes through the expanded Nahanni National Park Reserve for an additional term of two years to April 2014 and March 2013 respectively. These permits will allow CZN to undertake road rehabilitation work and prepare the road for operational use. These permits allow use of the road for the re-supply and maintenance of the mine, but do not provide for the planned operational use of the road.

In July 2012, Transport Canada confirmed that the proposed road works, including proposed new bridges, are not subject to the Navigable Waters Protection Act and therefore the Navigable Water Protection Act is not applicable to the proposed works.

Land Use Permit for Prairie Creek Mine Access Road (in NNPR), in progress

Water Licence for Prairie Creek Mine Access Road (in NNPR), in progress

Land Use Permit for Tetcela Transfer Facility (in NNPR), in progress

New Mine Decline Land Use Permit Issued (Exploration)

In May 2012, the Water Board issued a new Class ‘A’ Land Use Permit, MV2012C0008, for the activity of underground decline development, valid for a period of five years commencing May 10, 2012 and expiring on May 9, 2017. The new Land Use Permit entitles CZN to conduct mining exploration and associated activities, including underground decline development, at the Prairie Creek Mine.

The new decline and underground development will be strategically located to facilitate the drilling of key areas and also to allow integration of the underground development with that required to further access the mine resource, and to enable drilling of the under-explored portions of the deposit at depth during the period leading up to mine construction.

Class “B” Water Licence Amended and Extended (Exploration)

The Water Board also approved an amendment and extension to the Company’s existing Class “B” Water Licence, MV2001L2-0003, for the management, treatment and discharge of mine water from the mine site. The Water Licence has now been amended to cover the underground development of the new decline from the existing 870m level, including pumping, treatment and discharge of water inflows using the existing water treatment infrastructure, and placement of waste rock on an existing waste rock pile. The term of the Water Licence has been extended to September 9, 2019.

With the issue of an amended Water Licence, a new Minewater Contingency Plan was submitted for review. An application request to further revise this Water Licence compliance levels to be comparable to the Metal Mining Liquid Effluent Regulations was made in August and approved by the Water Board in January 23rd, 2013 for a period of one year after which it reverts back to the original licence compliance levels January 23, 2014.

Existing Permits

Access Road Land Use Permit (MV2003F0028)

Access RoadAn application for LUP 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 on the existing alignment 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.

The MVLWB subsequently received letters from the Nahanni Butte Dene Band who contend that the issue of a permit for the road would be an 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) had informed them that appropriate consultation had 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 LUP and subsequently issued the LUP on April 11, 2007 with an expiry date of April 10, 2012. CZN subsequently applied for and was granted an extension to the permit for a further 2 years. CZN does intend to use the permit to open the whole road, but the permit does allow CZN to carry out maintenance of the all season road bed near the mine.

Public Registry MVLWB MV2003f0028

Access Road Rehabilitation: CLASS "B" WATER LICENCE (MV2007L8-0026)

Subsequent to receiving LUP MV2003F0028, a preliminary technical assessment of the road conditions took place which determined that during the course of over 3 years of time that passed in the regulatory process, a number of flood events had occurred which caused significant washouts to occur over the Prairie Creek/Funeral Creek all season sections of the road. These sections needed to be rebuilt with the addition of suitable rock armour to provide protection from future washouts. This work would be completed in during the summer/fall, and would substantially reduce the work that would be required during the winter season to re-establish the road base in these sections. Since significant amounts of material were required to be moved to creek bed locations below the ordinary high water mark, a Class B Water Licence needed to be applied for from the MVLWB.

An application was submitted on June 7, 2007 to the MVLWB and a Water Licence was issued March 20, 2008. In addition to this, an application seeking authorization from the Department of Fisheries and Oceans Canada (DFO) was required. This DFO application for authorization was also submitted in early June 2007 and an authorization to proceed with the rehabilitation work was issued from DFO on July 15, 2008. The majority of the rehabilitation work was completed during the summer of 2008.

Click here and then click on 2008 when in the Mackenzie Valley Website: Public Registry MVLWB MV2007L8-0026

Parks Canada Access Road Land Use Permit and Water Licence

With the expansion of the Nahanni National Park Reserve (“NNPR”), approximately half of the access road now crosses the Park. Subsequent to Park expansion, Parks Canada issued permits for the existing road comparable to those issued by the MVLWB (LUP 2009-L02 and Water Licence 2009-W02). Parks Canada has issued 2 year extension to the original road permit. 

Map Showing the Access Road and Regulatory Jurisdiction Area

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, 2004Longyear 38 Diamond Drill (MVRB EA 0405-02). After a lengthy review process, the MVRB recommended the project proceed with conditions, and the MVLWB issued a LUP 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. The Company has also used the permit to conduct drilling on the Gate Claims using a helicopter-portable rig, and to drill in the mine area near the existing resource and from the Casket Creek drainage to explore a possible strike-extension of the mineralized vein. CZN applied for and was granted an extension to the permit for a further 2 years, with an expiration of May 10, 2013. The Company is in the process of applying for a new, but similar in scope, Phase III Drilling Permit since the existing one is about to expire and further exploration drilling is required.

Public Registry MVEIRB

Public Registry MVLWB MV2004C0030