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Faro Mine Remediation Project - A Risk-Based Approach to Work Planning - April, 2016 Agenda Faro Mine Site Background History Site Overview Conceptual Closure Plan Remediation Schedule Faro Mine Site Project Challenges Faro Mine


  1. Faro Mine Remediation Project - A Risk-Based Approach to Work Planning - April, 2016

  2. Agenda Faro Mine Site Background • History • Site Overview • Conceptual Closure Plan • Remediation Schedule Faro Mine Site Project Challenges Faro Mine Site Risk-Based Work Plan • Degrading Site Conditions (North Fork Rose Creek) • Engineering Risk (Down Valley Hydraulic Upgrades) Next Steps 2

  3. Faro Mine Site History Timeline Faro Mine Site History 1969-1998 OPERATION - Open pit mine produced lead and zinc 1998 RECEIVERSHIP - Last operator (Anvil Range Mining Corporation) went into receivership and Deloitte and Touche court -appointed Interim Receiver. 2003 DEVOLUTION - Authority to manage public lands and resources, including abandoned mine sites, was transferred to the Government of Yukon (YG). -INAC maintained liability and responsibility for funding the remediation of the Faro Mine; YG took over administration and control of land and water -The First Nations identified as having been most affected by the mine are the Ross River Dena Council, Liard First Nation, Kaska Dena Council and Selkirk First Nation 2006 OBJECTIVES – All three parties agree on Closure Objectives for the Faro Site. 1. Protect human health and safety 2. Protect and, to the extent practicable, restore the environment including land, air, water, fish and wildlife 3. Return the mine site to an acceptable state of use that reflects pre-mining land use where practicable 4. Maximize local and Yukon socio-economic benefits 5. Manage long-term site risk in a cost-effective manner. 2009 CONCEPTUAL CLOSURE PLAN - All three parties agree to the preferred closure options. 3

  4. Faro Mine Site Overview 4

  5. Faro Mine Site Conceptual Closure Plan Water Management • Capture Acid Rock Drainage Seepage/Runoff • Upgrade Surface Water Diversions Dams and Impoundments • Upgrade Dams and Spillways • Stabilize Open Pit Wall Tailings and Waste Rock • Regrade and Cover Tailings • Regrade and/or Cover Waste Rock Other • Demolition of Infrastructure • Remediate Contaminated Soil 5

  6. Faro Mine Site Remediation Schedule Phase 2 Phase 1 Phase 3 Phase 4 Project Project Project Monitoring and Assessment Definition Implementation Maintenance ∞ 1998 – 2008 2009 – 2024 2024 – 2039 2039 – • Post-Remediation • Site Assessment • Conceptual Adaptation Closure Plan • Care and • Care and Maintenance • Interim • Full-Site Maintenance Remediation Work Remediation • Identify • Water Treatment Remediation • Regulatory • Long-Term Approach Approvals Monitoring • Care & Maintenance All funding provided by the Federal Contaminated Sites Action Plan 6

  7. Faro Mine Site Project Challenges October In October 2013, elevated level of zinc was 2013 discovered through ongoing routine monitoring The project drills seven wells at the toe of the March Intermediate Waste Rock to try and find the source 2014 of the seep. The project drills ten additional wells upstream of July the Rock Drain to try and find the source of the 2014 seep. January Newly constructed Seepage Interception System commences operation. 2015 7

  8. Faro Mine Site Risk-Based Work Plan • Participants: – INAC & Yukon Government – Independent Peer Review Panel • Constraints: – Limited funding and timing ($225M over 4 years) • Methodology: – Consequence (Environmental, Special Considerations, Legal, Costs, Community/Media Reputation, Human Health & Safety) – Severity (Low, Minor, Moderate, Major, Critical) – Likelihood (Almost Certain, Likely, Possible, Unlikely, Very Unlikely) 8

  9. Faro Mine Site Risk-Based Work Plan • Conceptual Closure Plan: – Divided into 10 sub-projects • The Scenario: – (sub-project #1) won’t be completed until (year) and, recognizing the ongoing deterioration of site conditions, results in additional significant impact on a valued ecosystem component. • Lessons Learned: – Ensure the right people are involved in the process – Clearly articulate all constraints, assumptions, decisions – No such things as too much information! – Challenge all assumptions (no ‘status quo’ option). 9

  10. Faro Mine Site Risk-Based Work Plan Work Package ¡ Risk ¡ Notes 10a North Fork Rose Creek Diversion ¡ Very High ¡ Implement! Water Treatment Plant ¡ High ¡ 1 Mitigation Plan High ¡ 8 Waste Rock Linked to 10a 2 Infrastructure Upgrades ¡ Moderately High ¡ Assess Risk 10b Faro Creek Diversions ¡ Moderately High ¡ Mitigation Plan Moderate ¡ 7 Tailings Down Valley 9a Cross Valley Dam ¡ Moderate ¡ Hydraulic 9b Intermediate Dam ¡ Moderate ¡ Upgrades 10c Rose Creek Diversion ¡ Moderate ¡ Low ¡ 3 Building Demolition n/a Emergency Tailings Area ¡ Low ¡ 4 n/a Low ¡ 5 Cross Valley Dam Seepage System n/a Surface Water Management ¡ Low ¡ 6 n/a 10

  11. Deteriorating Site Conditions - North Fork 11

  12. Engineering Risk – Down Valley Intermediate Dam Spillway Rose Creek Diversion Channel 12

  13. Next Steps • Design: – North Fork Rose Creek Diversion (2016) – Down Valley Hydraulic Upgrades (2016-2017) – Closure Plan (2016-2017) • Regulatory: – Closure Plan (2018-2020) • Implement: – North Fork Rose Creek Diversion (2017-2019) – Down Valley Hydraulic Upgrades (2018-2019) – Closure Plan (2021+) 13

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