Izok Corridor Project: Kitikmeot Community Visit November 2013 Drilling at High Lake.

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Transcript of Izok Corridor Project: Kitikmeot Community Visit November 2013 Drilling at High Lake.

Izok Corridor

Project:

Kitikmeot Community

VisitNovember 2013

Drilling at High Lake

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OUTLINE OF THE PRESENTATION

• Izok Corridor Project Overview

• Review Project Alternatives

• Project Status and Next Steps

Ham camp west of Izok Lake

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IZOK CORRIDOR PROJECT Summary

The Izok Corridor Project is a proposed zinc-copper-lead development located 250 km southeast of Kugluktuk. The expected life of the mine is approximately 12 years.

The project comprises four parts: 

1. Open pit and underground mines at the Izok Lake and High Lake

2. A single processing plant producing mineral concentrates from Izok and High Lake ore 

3. A port at Grays Bay on the Coronation Gulf; and

4. A 325 km all-season road linking all the sites

Izok Corridor Project Overview

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IZOK CORRIDOR PROJECTEconomic Evaluation: Reminder

The project proposal filed with NIRB has proven to be not economic. The alternatives considered to improve the economic viability of the Project and take advantage of exploration included:

• Mining schedule (faster at Izok)

• Production rates (increased)

• Execution plan (Izok mined first)

• Moving the mill to the coast

• Using modules (pre-fabricated buildings)

• Adding more ore; pending exploration success

NOTE: No firm decisions have been made on the alternatives

Snack by the James River (2008)

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IZOK CORRIDOR PROJECTIzok Lake

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IZOK CORRIDOR PROJECTHam Lake near Izok Lake

Izok Mine

• Izok resource is 14.8 million tonnes zinc, copper, and lead

• Open pit mining

Alternatives summary

• Faster mining rate; would reduce Izok mine life to 5 years from 12 years

• No mill at Izok; mill would be located at Grays Bay

• Izok mine closure would start while High Lake is still in operation

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IZOK CORRIDOR PROJECTIzok Camp

Izok Mine Overview

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IZOK CORRIDOR PROJECTHigh Lake

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IZOK CORRIDOR PROJECTHigh Lake

High Lake Mine

• High Lake resource is 17.2 million tonnes zinc and copper

• Open pit and underground mining

Alternatives summary

• Mining at High Lake would start towards the end of mining at Izok instead of at the same time

• Mining at High Lake would begin 5-7 years into the project

• Camp at Grays Bay would service both High Lake and the Port

High Lake Area Overview

High Lake Deposits

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IZOK CORRIDOR PROJECT Mill and Road

Mill• Aug. 2012: Proposed mill at Izok to process two million tonnes of ore per year into

concentrate.• Alternative: Mill at Grays Bay processing up to three million tonnes of ore per

year. Mill would be modular and brought to site by barge.

Road• Aug. 2012: Proposed all-weather road connecting mines to new port at Grays Bay -

~350km.• Alternative: Modifications in routing shortening the road by 25 km.

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IZOK CORRIDOR PROJECT Camps

Camps• Aug. 2012: Camps at High Lake and Izok with small facility at Grays Bay.• Alternative: Main camp at Grays Bay and Izok. Temporary camp at High Lake.

Still under consideration.

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IZOK CORRIDOR PROJECTModular has been done before

POLARIS (Zinc Mine 1981 – 2002)

IZOK CORRIDOR PROJECTModular has been done before

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• 32,000 tonne LNG Plant shipped in 2005, same weight and size as MMG’s concentrator barge module

• Statoil recently contracted Dockwise to ship a 45,000 tonne module in 2015

LNG Liquifier - Statoil

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IZOK CORRIDOR PROJECT Hood Property

Additional resource

• Aug. 2012: Two mine sites: Izok Lake and High Lake deposits (mines) in Nunavut

• Alternative: Add Hood Property as a third deposit. More resource drilling needed before addition of Hood can be confirmed

Timing

• Open pit and underground mining for zinc and copper;

- Aug. 2012: Mine Izok and High Lake at the same time over 12 years

- Alternative: Mine Izok first followed by High Lake. Re-alignment of Izok Road confirmed

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IZOK CORRIDOR PROJECTGrays Bay

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IZOK CORRIDOR PROJECTArtist rendering for Grays Bay

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IZOK CORRIDOR PROJECT Shipping

The proposed shipping activities follow existing surveyed shipping routes through the Northwest Passage.

• Shipping season of 100-120 days per year between mid-July and mid-October.

• Six to eight ships for a total of 14-20 round trips per year. Ship size still being determined.

• 650,000 to 875,000 wet metric tonnes of mineral concentrates shipped out each year depending on final project configuration.

• Resupply includes ~ 45 million litres of diesel oil brought in per year and approximately 25,000 tonnes of other cargo.

Westward passage to Asia

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IZOK CORRIDOR PROJECT Status and Next Steps

• Project proposal filed with the Nunavut Impact Review Board (Aug. 2012)

• The NIRB recommends to the AANDC Minister that the Project go through a review (December 2012)

• The Minister confirms a review (April 2013)

• MMG requests a pause in the review process until MMG files a revised Project description (April 2013). MMG commits to get back to NIRB in December 2013

• NIRB requests an update on the timing of the revised Project description by November 18, 2013

• MMG has advised the NIRB that we would not be submitting a revised Project description at this point and would provide a Project up-date towards the end of next year

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IZOK CORRIDOR PROJECTProject Status and Next Steps

Environmental Programs

• MMG will continue to develop and refine environmental management and monitoring programs using data gathered from MMG field programs and input from community forums

• MMG is in the process of finalizing a comprehensive suite of baseline reports for the Project, including:

˗ Wildlife (including: Caribou, Grizzly Bears, Wolves, Muskoxen)˗ Vegetation, landforms and soils ˗ Aquatic environment (including: water quality, fish)˗ Marine environment (including: water quality, fish, marine mammals)˗ Social, cultural and economic information about the Kitikmeot˗ Traditional knowledge

• MMG will continue to collaborate with government and Aboriginal groups on key environmental and planning issues

˗ Participation in Nunavut land use planning process˗ Attendance at upcoming caribou and wildlife workshops

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IZOK CORRIDOR PROJECTProject Status and Next Steps

2014

• Continue developing design alternatives

• Continue with exploration in the Izok corridor region

• Limited environmental field program. Focus on desktop activities and report evaluation

• Community up-dates

Drill program

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COMMENTS AND FEEDBACKContact Information

Vancouver, British Columbia

Scott Trusler Heidi Klein

Manager Approvals Stakeholder Relations Lead

E scott.trusler@mmg.com E heidi.klein@mmg.com

Kugluktuk, Nunavut

Donald Havioyak

Community Liaison Officer

E donald.havioyak@mmg.com

T 867.982.3097

Office Location:

2 Amagok Street

PO Box 188

Kugluktuk, NU X0E 0E0

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IZOK CORRIDOR PROJECT

Thank YouKoana