Errington-Vermillion Project November 2014 Deposit Location and - - PowerPoint PPT Presentation

Errington-Vermillion Project

November 2014

Deposit Location and Property

Errington-Vermilion: A rich history

• The Errington-Vermilion deposits are located

in the world renown Sudbury « Nickel » Basin, in Ontario. Both deposits were discovered in the 1920’s.

• The Errington underground development

began in 1924 and ended in 1928; it included three shafts and 7,925 metres of lateral development to a vertical depth of

• 457m. A total of 129,713 tonnes of ore were

produced from Errington;

• The Vermilion underground development
• ccurred between 1952 and 1957 and

included a 409m shaft and lateral development on 8 sub-levels totalling 5,073m. A total of 22,172 tonnes of ore were hoisted at Vermilion and stockpiled circa since 1958. The stockpile was shipped to Kidd Creek for processing in 1992.

Errington: Circa 1928

Our presence in North America

Our strong record of corporate responsibility

Erringtion-Vermilion: A polymetallic deposit:

Project Overview

Errington-Vermilion Resources: Fact Sheet

Errington Vermilion Size of orebody 10 MT 3 MT Zinc 3.8 % 4.5 % Copper 1.23% 1.46% Lead 1.06% 1.46% Silver 50.53g/t 53.77g/t Gold 0.73g/t 0.89g/t Mining Rate 4500 t/d Employment 450-500 direct jobs Yearly concentrate production Zinc: 87,800 DMT, Copper: 60,000 DMT Total Estimate Life of Mines (Errington + Vermilion) 7 years Total estimated capital cost $425-475 CADM

Errington Site Layout

Errington Site Layout

Vermilion Site Layout

Vermilion Site Layout

Geology to Tailings Management

Original Errington Deposit – Oblique View Looking North-West

Ore Lenses Historical Development, circa 1930

Oblique section looking NE

Ore Lenses Historical and newly designed development, 2014

Oblique section looking N

Actual Errington Deposit – Oblique View Looking

Original Vermilion Deposit – Oblique Section looking North-West

Ore Lenses cut by diabase dyke. Historical Development, circa 1956

Oblique section looking NW

Actual Vermilion Deposit – Oblique Section looking North-West

Ore Lenses Historical and newly designed development, 2014

Oblique section looking NW

Concentrator Process Flow

Errington Site: Water management

Ore Concentrator Tailings Storage Facility

Receiving Water Body

(Vermilion River)

Tailings Reclaim Water Discharge (145 m³/hr)

Evaporation & Precipitation

Note: All values are approximate

Raw Water Treatment Site Contact Water Domestic Water Treatment Washroom and Kitchen Water (non-potable) Sewage Treatment Plant Effluent Treatment Plant Truck Wash and Maintenance Facilites Source Water Body

Source Water Body

(Vermilion River)

Underground Mine

Fresh Water (150 m³/hr)

Capture Pond

Backfill Plant

Tailings Storage Facility

Six alternatives have been considered for tailings (and potentially-acid-generating waste rock) storage, including three different tailings storage strategies (Knight Piésold 2014). These alternatives were: Option 1: A valley impoundment for storage of a conventional tailings slurry, located approximately 750 m south of the proposed ore concentrator; Option 2: A dry stack impoundment located approximately 400 m north of the proposed ore concentrator; Option 3: A dry stack impoundment located approximately 1,100 m west of the proposed ore concentrator; Option 4: A valley impoundment for storage of a conventional tailings slurry located approximately 1,800 m south of the proposed ore concentrator; Option 5: A paddock impoundment for storage of a conventional tailings slurry located approximately 1,600 m west of the proposed ore concentrator; and Option 6: A paddock impoundment for storage of a conventional tailings slurry located approximately 3,000 m east of the proposed Plant Site. By carrying out a multi-criteria analysis that considered environmental, socio-economic, technical and economic factors, a preferred alternative has been identified. The multi-criteria analysis used a three-tiered approach, in which weightings were applied to each tier (i.e., categories, criteria and indicators).

Tailings Storage Facility – Proposed Storage Locations

Tailings Storage Facility – Proposed Storage Locations

Tailings Storage Facility – Stage 1 Elevations

Tailings Storage Facility – Final Elevations

Tailings Storage Facility – Closure Freeboard

Tailings Storage Facility - Schedule

Vermillion Site: Water management

Receiving Water Body

(Vermilion River)

Source Water Body

Source Water Body

(Vermilion Lake)

Note: All values are approximate

Raw Water Treatment

Capture Pond

Effluent Treatment Plant Backfill Plant Site Contact Water Office, Truck Wash, Sewage Treatment and Maintenance Facilities

Fresh Water (9 m³/hr)

Underground Mine

Discharge (17 m³/hr)

3

On-going Environmental Studies

A number of Baseline Studies have been conducted at the Errington site including:

• Hydrology
• Surface water
• Hydrogeology
• Fisheries
• Hydro geochemical
• Geochemical
• Species at risk

assessment

• Archeological
• Benthos
• Sediment

Due to the change in project scope, many of the previous baseline studies require additional study

Baseline Work Completed in 2014

• Geochemistry
• Reviewing tailings humidity cell chemistry data
• Water Quality
• Surface water and sediment quality sampling (1st round)
• Hydrology
• Contacted Domtar and NDCA for information
• Installed data loggers and taken 1st round of flow measurements
• Hydrogeology
• Wells installed
• Terrestrial ecosystem
• Completed baseline field program
• Basking turtles (none), whip-poor-wills (none), marsh, water & breeding birds

surveys

• Vegetation surveys
• Soil and vegetation sampling for metals analysis

• Aquatic ecosystem
• Obtained MNR fish collection permit
• Completed summer baseline field program
• Aquatic Habitat mapping in TSF
• Fish Habitat mapping and bathymetry in eastern end of Vermilion Lake, Vermilion

River below Stobie Dam/lower Whitson River, and TSF

• Fish, sediment and benthos collection
• Noise/Light/Air
• Noise/Light preparing for field work at end of September, weather permitting
• Air contacting external agencies for existing baseline information
• Aboriginal Participation Program
• Successful program; good feedback from participants
• Whitefish Lake FN Representative terminated contract early
• Sagamok Representatives participate when available

Baseline Work Completed in 2014…/

Major Project Timelines

2012 2013 2014 2015 2016

Baseline Studies Environmental Effects Assessment Agency Review Permitting and Closure Planning Aboriginal and Stakeholder Engagement

2014 2015 2016 2017

Project Commencement

33

Thank You!

For more information: Brad J. Ryder

Brad.Ryder@Glencore-ca.com

Tel 416 775 1434