Fall/Winter 2015, Vol 1, Issue 4 Avanti Kitsault Mine Ltd....As referenced in our June 2015...
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1 AKM NEWS Fall/Winter 2015, Vol 1, Issue 4 Avanti Kitsault Mine Ltd. O FEED Study Confirms Project’s Scope and Budget Front End Engineering Design (FEED) Study Completed • Lake 901 AKM “ Equally important to us is our commitment to ensuring that appropriate environmental monitoring continues at site.” Updating Our Stakeholders A message from Shane Uren, Vice President, Safety, Health and Environment n August 13, 2015, Alloycorp Mining Inc. released a Corporate Update http://www.alloycorp.com/s/Corporate Update which provided general information regarding the Avanti Kitsault Mine (AKM) project. We would like to take this opportunity to share with you where we are at with the project and anticipated next steps. As referenced in our June 2015 newsletter, Alloycorp engaged DRA Taggart to undertake a Front End Engineering Design (FEED) Study. The FEED Study has now been completed and the results provided to Alloycorp’s management and Board of Directors; http://www.alloycorp.com/s/FEED Study. The FEED study confirmed the project’s scope and budget and provides recommendations on a development plan going forward. Please also see the FEED study article in this edition of the newsletter. In the meantime, a decision was made this fall to commence winterization of the Avanti Kitsault camp. The decision was not taken lightly and was predicated on general market conditions, including a significant price decline in molybdenum. The winterization work has now been successfully completed with the assistance of several local contractors who were responsive to our timelines and budgetary guidelines. While no further construction is planned for this winter, management continues to evaluate potential programs that could begin in the spring of 2016 to assist in the planning of the early years of mine operations. The Company’s majority shareholder remains committed to Avanti Kitsault and offtake agreements with our customers worldwide remain valid. Alloycorp management also remains engaged with our advisors and lenders to work towards a full financing package, expected when general market conditions improve. We are well-positioned to initiate ramp-up to full construction once financing is complete. In the meantime, we remain committed to maintaining our open and positive relationships with the Nisga’a Nation, as well as other First Nations groups and the neighbouring communities. Equally important to us is our commitment to ensuring that appropriate environmental monitoring continues at site. To that end, our environmental coordinators who conduct such monitoring will, in the short term, be based out of our Terrace office and will fly in and out of site to conduct their important monitoring activities. As we continue to work towards the future, we will also continue to update our stakeholders as effectively and accurately as possible. In the meantime, thank you for your continued interest in and support of the Avanti Kitsault Mine project. Sincerely, Shane Uren, Vice President, Safety, Health and Environment What is a Front End Engineering Design (FEED) Study? A FEED Study is an engineering design approach used to control project expenses and thoroughly plan a project. In the spring of 2015 AKM engaged a consulting engineering firm to complete such a study. The main objective was to confirm engineering and procurement work completed to-date while providing AKM with a clear definition of project scope and budget going forward. A secondary outcome would be a contract strategy for the project such as an Engineering, Procurement and Construction (EPC) contract whereby there would be a fixed cost to complete the project, based on concepts and designs from the FEED Study. The scope of the study was to review and verify the process plant facilities, paying particular attention to the proven designs and plant performance, minimizing technical complexity and risks, identifying opportunities, optimizing constructability and focusing always on safety, while maintaining a low environmental footprint for a sustainable and operable process plant. Other project scope such as the Tailings Management Facility (TMF), waste management, water treatment and mine geotechnical analysis were confirmed from previous work by other third party engineering consultants. The mine plan and design was completed in-house by AKML’s mining department, with both a detailed and high level review conducted by third party consultants. What’s Next for the Kitsault Project? Alloycorp’s management will continue to pursue financing for the Avanti Kitsault Mine project. We recognize that, given the current resources market, full financing for the project may not be achieved during 2016, however we will continue to take steps to ensure that the project remains ready and all environmental requirements are met. We will use the time between now and when market prices are more favourable to further optimize the project and identify opportunities to reduce capital costs and de-risk the project going forward. In this Issue Updating Our Stakeholders 1 What is a FEED Study? 1 What’s Next for the Kitsault Project? 1 Environmental Focus: AKM Access Road Monitoring 2 Marine Monitoring 2 Hearing From You 2 About Alloycorp 2
Transcript of Fall/Winter 2015, Vol 1, Issue 4 Avanti Kitsault Mine Ltd....As referenced in our June 2015...
1AKM NEWS
Fall/Winter 2015, Vol 1, Issue 4
Avanti Kitsault Mine Ltd.
O
FEED Study Confirms Project’sScope and Budget Front End Engineering Design (FEED) Study Completed
• Lake 901
AKM
“ Equally important to us is our commitment to ensuring that appropriate environmental monitoring continues at site.”
Updating Our Stakeholders A message from Shane Uren, Vice President, Safety, Health and Environment
n August 13, 2015, Alloycorp Mining Inc. released a Corporate Update http://www.alloycorp.com/s/Corporate Update which provided general information regarding the Avanti Kitsault Mine (AKM) project. We would like to take this opportunity to share with you where we are at with the project and anticipated next steps. As referenced in our June 2015 newsletter, Alloycorp engaged DRA Taggart to undertake a Front End Engineering Design (FEED) Study. The FEED Study has now been completed and the results provided to Alloycorp’s management and Board of Directors; http://www.alloycorp.com/s/FEED Study. The FEED study confirmed the project’s scope and budget and provides recommendations on a development plan going forward. Please also see the FEED study article in this edition of the newsletter. In the meantime, a decision was made this fall to commence winterization of the Avanti Kitsault camp. The decision was not taken lightly and was predicated on general market conditions, including a significant price decline in molybdenum. The winterization work has now been successfully completed with the assistance of several local contractors who were responsive to our timelines and budgetary guidelines. While no further construction is planned for this winter, management continues to evaluate potential programs that could begin in the spring of 2016 to assist in the planning of the early years of mine operations. The Company’s majority shareholder remains committed to Avanti Kitsault and offtake agreements with our customers worldwide remain valid. Alloycorp management also remains engaged with our advisors and lenders to work towards a full financing package, expected when general market conditions improve. We are well-positioned to initiate ramp-up to full construction once financing is complete. In the meantime, we remain committed to maintaining our open and positive relationships with the Nisga’a Nation, as well as other First Nations groups and the neighbouring communities. Equally important to us is our commitment to ensuring that appropriate environmental monitoring continues at site. To that end, our environmental coordinators who conduct such monitoring will, in the short term, be based out of our Terrace office and will fly in and out of site to conduct their important monitoring activities. As we continue to work towards the future, we will also continue to update our stakeholders as effectively and accurately as possible. In the meantime, thank you for your continued interest in and support of the Avanti Kitsault Mine project.
Sincerely,
Shane Uren, Vice President, Safety, Health and Environment
What is a Front End Engineering Design (FEED) Study?
A FEED Study is an engineering design approach used to control project expenses and thoroughly plan a project. In the spring of 2015 AKM engaged a consulting engineering firm to complete such a study. The main objective was to confirm engineering and procurement work completed to-date while providing AKM with a clear definition of project scope and budget going forward. A secondary outcome would be a contract strategy for the project such as an Engineering, Procurement and Construction (EPC) contract whereby there would be a fixed cost to complete the project, based on concepts and designs from the FEED Study. The scope of the study was to review and verify the process plant facilities, paying particular attention to the proven designs and plant performance, minimizing technical complexity and risks, identifying opportunities, optimizing constructability and focusing always on safety, while maintaining a low environmental footprint for a sustainable and operable process plant. Other project scope such as the Tailings Management Facility (TMF), waste management, water treatment and mine geotechnical analysis were confirmed from previous work by other third party engineering consultants. The mine plan and design was completed in-house by AKML’s mining department, with both a detailed and high level review conducted by third party consultants.
What’s Next for the Kitsault Project?
Alloycorp’s management will continue to pursue financing for the Avanti Kitsault Mine project. We recognize that, given the current resources market, full financing for the project may not be achieved during 2016, however we will continue to take steps to ensure that the project remains ready and all environmental requirements are met. We will use the time between now and when market prices are more favourable to further optimize the project and identify opportunities to reduce capital costs and de-risk the project going forward.
In this IssueUpdating Our Stakeholders 1
What is a FEED Study? 1
What’s Next for the Kitsault Project? 1
Environmental Focus: AKM Access Road Monitoring 2
Marine Monitoring 2
Hearing From You 2
About Alloycorp 2
Fall/Winter 20152 Avanti Kitsault Mine Ltd.
Prior to the construction of the 4.5 km access road from the Kwinitahl Forest Service Road (RSR) to the Avanti Kitsault Mine (AKM) Plant Site in June, 2014, AKM prepared several documents that outlined associated environmental plans and programs. These included: • the Mine Access Road Water Management and Erosion Control Plan • the Chance Find Procedure, • the Kitsault Construction Water Management and Erosion Control Plan, • the Kitsault Mine Site Road Construction Environmental Management and Procedures document • the Mine Site Monitoring Plan; and • the Construction Monitoring Oversight Program and the Effectiveness Monitoring Plan. These documents outlined the Best Management Practices (BMPs) and monitoring programs that were to be implemented with the construction of the access road. In addition to proper culvert installation, AKM minimized sediment runoff by installing sediment fences and ponds on both sides of the access road. Rock berms (raised banks) with geomembrane cloths were installed at the toe of each topsoil stockpile. Exposed stockpiles and disturbed areas were hydro-seeded. Hay and coconut matting were placed to minimize erosion and promote vegetation growth. Steep terrain was hand-seeded along the access road throughout summer months. The effectiveness monitoring program was developed and implemented to monitor the BMPs. Turbidity monitoring was conducted at 48 monitoring sites along the access road, plant site, and surrounding area. Water samples were also collected throughout the summer months at select locations. The samples were then sent to an external laboratory for analysis and review. Once the samples were analyzed and reviewed, additional BMPs were implemented, if needed. A third party consultant was also retained to provide independent oversight monitoring of the environmental conditions in response to construction activities in addition to the effectiveness monitoring by AKM personnel. Site visits were conducted weekly until November 2014 after which site visits were conducted monthly. The third party consultant monitored water quality at watercourses downstream of the road construction. This included inspection and reporting on the use and effectiveness of planned BMPs and appropriate selection of alternate BMPs as outlined in the Mine Access Road Sediment and Erosion Control Plan and the Effectiveness Monitoring Plan. The review also included inspection of the quality, function and condition of prescribed sediment and erosion control equipment and materials. The consultant provided summary reports directly to the Ministry of Energy and Mines and the Ministry of Environment. These reports have been compiled and distributed independently and provide information on the compliance of the construction activities with the sediment and erosion control plans, permitting requirements and other commitments made by the proponent.
ENVIRONMENTAL MONITORING OF THE AVANTI KITSAULT MINE ACCESS ROAD
The Avanti Kitsault Mine (AKM) Project Environmental Assessment Condition #23 requires that a Marine Environment Monitoring Program (MEMP) must be conducted. A component of the program is a 24-month baseline monitoring program designed to meet objectives specified by Nisga’a Lisims Government (NLG), the Metlakatla First Nation (MFN) and the BC Ministry of Environment. AKM is currently completing that period of baseline monitoring and has prepared two annual monitoring reports to document results. The MEMP includes a statistically rigorous monitoring plan to characterize baseline marine environmental conditions as part of permitting support. The baseline monitoring program was designed to establish threshold levels to identify the potential for effects from the project on the marine environment that would then trigger implementation of additional Best Management Practices and mitigation measures. The MEMP work undertaken has included: • A 24-month baseline monitoring program designed to meet monitoring objectives specified by NLG and the MFN • Underwater video surveys of marine vegetation i.e. plants with root systems and flowers • Classification surveys of marine invertebrate or organisms that live in or on the bottom sediments of oceans, rivers, streams and lakes • Collection of water, sediment, shellfish, and fish for chemical analysis • Assessment of toxicity of marine sediments to marine invertebrates • Dye dilution studies to assess mixing of freshwater entering marine waters • Coordination of field data collection efforts with the Nisga’a Lisims Government and First Nations
MARINE ENVIRONMENT MONITORING PLAN (MEMP)
AKMENVIRONMENTAL FOCUS
“ …meeting objectives specified by Nisga’a Lisims Government (NLG), the Metlakatla First Nation (MFN) and the BC Ministry of Environment.
“ …meeting objectives specified by Nisga’a Lisims Government (NLG), the Metlakatla First Nation (MFN) and the BC Ministry of Environment.
We Want to Hear From YouYour opinion and comments are important to us. Drop by for a visit, or if you have any questions, suggestions or comments, here’s how to contact us:
Avanti Kitsault Mine Ltd. 2nd floor, 4643 Park Avenue, Terrace, BC V8G 1V8Phone: (250) 635-5125 / Fax: (250) 635-5120 / [email protected]
About AlloycorpAlloycorp is a TSX-Venture listed company headquartered in Toronto with an operations office in Vancouver. Alloycorp’s strategy is to become the unique supplier of steel alloy metals. Cornerstone to this strategy is the development of Avanti Kitsault. Parallel to this, Alloycorp is seeking to grow through the acquisition of other assets with commodities that supply to the steel alloys industry.
AVT.TSX-Vwww.alloycorp.com
