Back River (Hannigayok) Gold Project Draft Environmental Impact - - PowerPoint PPT Presentation

Back River (Hannigayok) Gold Project Draft Environmental Impact Statement (DEIS) Overview

November 2013

Who is Sabina Gold & Silver Corp?

• Sabina is a Vancouver, Canada based precious metals company on

track to become a mid‐tier gold producer

• Listed on the Toronto Stock Exchange (TSX: SBB)
• Skilled staff with extensive northern experience
• Projects in Nunavut and other parts of Canada
• Back River Gold Project, Nunavut
• Wishbone Greenstone Belt, Nunavut
• Newman Madsen, Ontario
• A significant silver royalty on the Hackett River Project, Nunavut
• Approximately $60 million projected year end balance

Back River Project

• A proposed gold mine in the western

Kitikmeot Region of Nunavut, 100% owned by Sabina Gold & Silver Corp.

• Exploration commenced in 1982. Project has

had a number of different owners since. Sabina acquired the Project in 2009.

• 6.5 M oz. & growing high‐grade gold resource
• Currently in the engineering & environmental

assessment stage

• Investors and positive investment

perceptions will be required

• Positive Pre‐Feasibility Study issued in

October 2013

• Three key Project Areas
• Goose Property, George Property, & Marine

Laydown Area

LSA Map

Traditional Knowledge Study Introduction ‐ August 2013

Back River Project – Existing Camps

Goose Property (Summer, 2013)

Back River Project – Existing Camps

Goose Property (Summer, 2013) George Property (Summer, 2013)

Project Timeline

What are we proposing to build?

• Open pit and underground mining operations
• 6 mining areas
• 10 years + of production
• ~300,000 ounces of gold annually
• Supplied via some combination of seasonal shipping, year‐

round aircraft, and/or winter roads to the south

• Remote, fly in/fly out mine site
• Gold produced at the mine will be shipped by air as doré bars
• Accommodations (not all occupied at the same time):
• Goose: up to 700 person camp
• George: up to 150 person camp
• Marine Laydown Area: up to 100 person camp
• Processing plant at Goose Property (up to 5,000 tonnes/day)
• Crushing and grinding, gravity separation, cyanide leaching,

carbon recovery

• Tailings facility at Goose Property
• Waste rock storage areas

What are we proposing to build? (Continued)

• Marine Laydown Area (MLA) at Bathurst Inlet
• Open water shipping only
• Ships will be similar to those used for community resupply
• All‐weather roads within each property
• Seasonal winter roads to connect the three properties

Number of ships per year Construction 5‐10 Operations 3‐5 Number of truck trips per day (construction & operations) MLA / Goose / George Up to 164

What are we proposing to build? (Continued)

• All‐weather airstrips at Goose and George, seasonal airstrip at MLA
• Other buildings (e.g. administrative complex, facilities,

maintenance facilities, warehousing)

• Fuel and bulk storage areas
• Water and waste management facilities
• Power generation facilities
• Explosives storage

Number of flights Construction Operations MLA 3/week (limited periods only) 3/week Goose & George 10/day 6/day

LSA Map

Traditional Knowledge Study Introduction ‐ August 2013

LSA Map

Traditional Knowledge Study Introduction ‐ August 2013

LSA Map

Traditional Knowledge Study Introduction ‐ August 2013

LSA Map

Traditional Knowledge Study Introduction ‐ August 2013

LSA Map

Traditional Knowledge Study Introduction ‐ August 2013

Example Open Pit Mining – Diavik Mine, NWT

Images courtesy: Diavik Diamond Mine

Example Open Pit Mining – Meadowbank Mine, Nunavut

Images courtesy: Agnico‐Eagle Mines Limited

Example Underground Mining – Snap Lake Mine, NWT

Images courtesy: De Beers Canada

Example Gold Processing – Meadowbank Mine, Nunavut

Images courtesy: Agnico‐Eagle Mines Limited

Winter Road – Northwest Territories and Nunavut

Images courtesy: NUNA Logistics & Tibbitt to Contwoyto Winter Road Joint Venture

Opportunities from the Back River Project

2013 Economic Impact Model Report – Draft Findings* Direct employment of approximately:

• 1,291 person‐years for the Kitikmeot Region
• 5,642 person‐years for all of Canada

Total employment (direct, indirect, and induced) of approximately:

• 2,674 person‐years for the Kitikmeot Region
• 5,352 person‐years for Nunavut
• 34,286 person‐years for all of Canada

*Construction and operations combined from PFS

Opportunities from the Back River Project

2013 Economic Impact Model Report – Draft Findings* Total GDP (direct, indirect, and induced) contributions of approximately:

• $403.0 million in the Kitikmeot Region
• $629.1 million in Nunavut
• $3,454.7 million in all of Canada

Total tax revenue (federal and provincial/territorial) contributions of approximately:

• $113.2 million from economic activity in the Kitikmeot Region
• $137.0 million in Nunavut
• $616.3 million for all of Canada

*Construction and operations combined from PFS

Opportunities from the Back River Project

• Hiring preference for those located

in nearby Kitikmeot communities

• Training programs for northern hires

to be established

• Contracting and business

development opportunities will be made available

• Contracting preference for

Kitikmeot and Nunavut companies

• Taxes, royalties, Inuit Impact and

Benefit Agreement (IIBA)

Working with Local Communities

• Community Liaison Officer and office in

Cambridge Bay

• Public meetings
• Community advisory groups
• Meetings with key stakeholder groups

(e.g. HTOs, Hamlets, youth)

• TK study with the KIA leading
• Donations
• Social media (e.g. website, Twitter)
• Community newsletters and

informational materials (e.g. fact sheets, posters, maps)

• Radio shows and information booths
• IIBA to be negotiated

Sabina’s Draft Environmental Impact Statement (DEIS)

Environmental Assessment in Nunavut

• A process used to evaluate the potential environmental and socio‐

economic effects of a proposed project

• Overseen by the Nunavut Impact Review Board (NIRB)
• Sabina’s EA officially began in June 2012
• Part 5 Review decided on by the Minister of Aboriginal Affairs and

Northern Development Canada

• Regulators, governments, Aboriginal organizations, and communities are

involved in EA through reviewing Sabina’s submissions, participating in commenting periods, hearings, etc.

• NIRB will recommend to the Minister of Aboriginal Affairs and Northern

Development Canada whether the Project should proceed and under which conditions.

Environmental Assessment in Nunavut

• Sabina’s DEIS describes the Project,

the various studies that have been conducted (scientific and TK), potential Project effects, and proposed mitigation in detail.

• Comments made on the DEIS will help

Sabina produce a Final EIS. There are many opportunities for public participation available.

• An EA cannot study everything.

Instead, we study only the most important environmental and socio‐ economic features (VECs and VSECs).

Valued Ecosystem Components (VECs)

Atmospheric

• Air quality
• Noise and vibration

Terrestrial

• Special landscape

features

• Vegetation
• Caribou
• Muskox
• Wolverines and

furbearers

• Grizzly bears
• Raptors
• Migratory birds

Freshwater

• Water quality
• Water quantity
• Sediment quality
• Fish habitat
• Arctic grayling
• Lake trout

Marine

• Water quality
• Sediment quality
• Fish habitat
• Arctic char
• Marine seabirds
• Ringed seal

Valued Socio‐Economic Components (VSECs)

Human Environment

• Archeology
• Employment
• Education and training
• Health and community well being
• Economic development
• Business opportunities
• Subsistence economy and land use
• Non‐traditional land & resource use
• Country foods and human health

DEIS – Summarized Findings

• 12 Volumes, approximately

4,000‐5,000 pages

• The Project is expected to have

no significant negative effects

• The Project is expected to have

significant positive effects related to socio‐economic aspects

• Numerous mitigation and

management commitments have been made

DEIS Volumes Volume 1 Main Volume Volume 2 Project Description & Alternatives Volume 3 Public Consultation, Government Engagement & Traditional Knowledge Volume 4 Atmospheric Environment Volume 5 Terrestrial Environment Volume 6 Freshwater Environment Volume 7 Marine Environment Volume 8 Human Environment Volume 9 Assessment Methodology Volume 10 Management Plans Volume 11 Type A Water Licence Application Volume 12 Other Approvals

Conducting an Effects Assessment

1. Identification of potential interactions between the Project and VECs/VSECs 2. Characterization of the potential effects that could result from these interactions 3. Identification and description of design, mitigation and management measures that will be taken to eliminate or reduce the potential effects 4. Characterization of residual effects that will likely remain after mitigation and management measures have been applied 5. Determination of the significance of residual effects

How ‘Significance’ was Determined

Eight attributes were used to rate the significance of residual effects:

• Direction
• Magnitude
• Duration
• Frequency
• Geographic extent
• Reversibility
• Probability
• Confidence

Significance Descriptor of Significance Positive Residual effect could result in improvements in VEC/VSEC relative to the baseline within the foreseeable future. Significant Residual effect is expected to result in a decline in VEC/VSEC that is long‐lasting

• r permanent within the zone of influence of the Project relative to reference

conditions; levels may be variable or stable over years, but significantly lower on average than the natural variation and compared to reference sites elsewhere. Not Significant Residual effect may result in a decline in VEC/VSEC within the zone of influence of the Project relative to reference conditions during the life of the Project, but should return to baseline conditions in the shorter‐term after Project closure. Monitoring may be initiated to confirm the ratings of the effects assessment.

Effects Assessment – Caribou

Studies conducted:

• 20 aerial surveys, habitat mapping, resource

selection function, 60 remote cameras, traditional knowledge Potential Project effects:

• Loss of habitat, disturbance, barriers to

movement, vehicle incidents and loss of reproduction Mitigation and management proposed:

• Avoidance of high‐value caribou habitat (from TK

and baseline)

• Helicopter management
• Use of winter roads only to connect Project areas
• Road management: speed limits, wildlife right of

way, timing Final conclusion:

• No significant Project residual effects

Bathurst Caribou – Spring Migration

Bathurst Caribou ‐ Calving

Bathurst Caribou – Post Calving

Bathurst Caribou – Summer

Effects Assessment – Caribou

‐ Video ‐ Caribou Movements

Effects Assessment – Freshwater Quality

Studies conducted:

• 4 freshwater water quality baseline studies
• Freshwater water quality effects assessment

Potential Project effects:

• Changes to freshwater water quality that could

influence aquatic life, fish, wildlife and humans Mitigation and management proposed:

• Aquatic Effects Monitoring Plan (AEMP)
• Several water‐specific site management plans
• Federal and territorial regulations

Final conclusion:

• No significant Project residual effects

Effects Assessment – Subsistence Economy & Land use

Studies conducted:

• Mapping workshops with land users, interviews, TK,

public consultation, other data, baseline studies Potential Project effects:

• Changes in access to land and resources
• Changes to the experience of the natural environment
• Changes to the abundance and distribution of

resources Mitigation and management proposed:

• Extensive mitigation and management measures to

protect wildlife, air, water, vegetation, and soil quality

• Providing land user access to camps; no employee

hunting

• Community Involvement Plan

Final conclusion:

• No significant Project residual effects

Effects Assessment – Country Foods and Human Health

Studies conducted:

• Country foods baseline screening level risk

assessment

• Human health risk assessment

Potential Project effects:

• Change in the quality of country foods that

could affect the health of human consumers Mitigation and management proposed:

• Extensive mitigation and management

measures to protect air, water, vegetation, and soil quality; this protects the quality of country foods and human health Final conclusion:

• No significant Project residual effects

Effects Assessment ‐ Employment

Studies conducted:

• Economic impact modelling, socio‐economic baseline

study Potential Project effects:

• Changes to employment and income levels
• Changes to the capacity of the labour force
• Changes to competition for local labour

Mitigation and management proposed:

• Human Resources Plan (labour relations strategy,

preferential recruitment strategy)

• Community Involvement Plan

Final conclusion:

• Not significant residual effect of change to competition

for local labour

• Positive residual effect of change to employment,

income, and capacity of the labour force

Contact Information

John Kaiyogana Community Liaison Officer 4 Omingmak Street Cambridge Bay, Nunavut Phone: (867) 983‐3033 Cell: (867) 446‐2501 Fax: (867) 983‐3133 jkaiyogana@sabinagoldsilver.com Jason Prno Community Relations Advisor (519) 983‐8483 jprno@sabinagoldsilver.com Matthew Pickard Vice President, Environment & Sustainability Phone (Toronto): (604) 484‐8967 / (416) 848‐1184 Phone (Vancouver): (604) 998‐4190 / (888) 648‐4218 Cell: (416) 605‐7881 mpickard@sabinagoldsilver.com

www.backriverproject.com