MVLWB Registry From: Marc Casas <mcasas@mvlwb.com> Sent: - - PDF document

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MVLWB Registry

From: Marc Casas <mcasas@mvlwb.com> Sent: Tuesday, May 5, 2015 3:06 PM To: admin_dkfn@northwestel.net; Alexis_Campbell@gov.nt.ca; barryt@arcticsafaris.ca; boydw@bathurstinlet.com; Carolc.lands@gmail.com; Catherine_BraunRodriguez@gov.nt.ca; CAU-UCA@aandc.gc.ca; chief.lkdfn@gmail.com; chief.srfn@northwestel.net; chief@slfn196.com; christian.bertelsen@cannor.gc.ca; clint_ambrose@gov.nt.ca; consultationsupportunit@aandc.gc.ca; craigecologynorth@gmail.com; czoechocolate@denenation.com; dave.white@aurorageosciences.com; david.alexander@cannor.gc.ca; David_Abernethy@gov.nt.ca; doug_carr@gov.nt.ca; dsteele@hayriver.com; duane_fleming@gov.nt.ca; EC.EA.NWT@ec.gc.ca; environment@ykdene.com; Erin_Anderson@gov.nt.ca; esangris@ykdene.com; exec@slema.ca; fieldworker.frmc53 @northwestel.net; fisheriesprotection@dfo-mpo.gc.ca; fortsmithmetiscouncil@northwestel.net; frmc@northwestel.net; Gary.Woo@neb-

• ne.gc.ca; Glen_Mackay@gov.nt.ca; gnwt_ea@gov.nt.ca; Hilary_machtans@golder.com;

hrmc@northwestel.net; ima_dkfn@northwestel.net; Iqbal_Arshad@gov.nt.ca; Jayda_Robillard@gov.nt.ca; jblack@ykdene.com; jbrennan@yellowknife.ca; Jeremy_Roberts@gov.nt.ca; jhood@fortsmith.ca; Jon_Posynick@gov.nt.ca; kate_witherly@gov.nt.ca; lands@slfn196.com; landsnresources@katlodeeche.com; laurie_mcgregor@gov.nt.ca; Lindsay_Armer@gov.nt.ca; lkdfnlands@gmail.com; Marie.Adams@cannor.gc.ca; mark_davy@gov.nt.ca; Matthew.Spence@cannor.gc.ca; mdd@aandc-aadnc.gc.ca; Mike_Vassal@gov.nt.ca; monica_wendt@gov.nt.ca; Nahum_Lee@gov.nt.ca; Nathen_Richea@gov.nt.ca; Norman_McCowan@gov.nt.ca; NTCard@aandc-aadnc.gc.ca; NWTLands@aandc-aadnc.gc.ca; patrick_clancy@gov.nt.ca; Paul_Green@gov.nt.ca; Pauline_DeJong@gov.nt.ca; PDD@aandc.gc.ca; permits@mvlwb.com; preliminaryscreening@reviewboard.ca; president.nwtmn@northwestel.net; rcc.nwtmn@northwestel.net; rhonda_batchelor@gov.nt.ca; Robert_Jenkins@gov.nt.ca; Russell_Teed@gov.nt.ca; Sam.Kennedy@aandc.gc.ca; sao_enterprise@northwestel.net; Scott_Stewart@gov.nt.ca; screeningofficer@eastarm.com; shin.shiga@nsma.net; Steven_Shen@gov.nt.ca; stu_niven@gov.nt.ca; Susan.Abernethy@wscc.nt.ca; Tasha_Hall@golder.com; tim.morton@aandc-aadnc.gc.ca; Tim_Hibbs@gov.nt.ca; tslack@ykdene.com; vtattuinee@kivalliqinuit.ca; Wendy_Bidwell@gov.nt.ca; wpfn@northwestel.net; ww.symbion@shawbiz.ca; Zabey Nevitt; 'Angela Plautz - MVLWB'; 'Patty Ewaschuk'; Robin_Sproule@gov.nt.ca; Scott Stringer; Dwight Grabke; ron.connell48@gmail.com; cgreencorn@yellowknife.ca; nahum_Lee@gov.nt.ca; 'Heather E. Beck'; kor@theedge.ca; Steven_Skinner@gov.nt.ca; heather.scott@mvlwb.com; srobertson@ssimicro.com Subject: RE: MV2007L8-0025 - Miramar Con Mine - May 5 meeting Presentation - Reclamation Status Report Attachments: 5-May-2015 - RSR presentation MVLWB - Distribution.pptx

Hello everyone please see attached the Presentation from this morning’s meeting. It will also be posted on the registry and the Online Review System shortly. Thanks and have a nice day, Marc Casas Team Lead (Acting) Mackenzie Valley Land and Water Board

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7th Floor, 4922 48th St, PO Box 2130 | Yellowknife, NT | X1A 2P6 ph 867.766.7466 | fax 867.873.6610 mcasas@mvlwb.com | www.mvlwb.com Please note: All correspondence to the Board, including emails, letters, faxes and attachments are public documents and may be posted to the public registry.

2014 Annual Reclamation Status Report

Discussion Session Meeting – May 5th, 2015

Outline

• Brief overview of RSR history
• MNML intent and expectations from 2014 RSR
• Overview of Remaining Reclamation Activities and their related RECLAIM V7 cost estimate.
• Anticipated Schedule
• Overview of anticipated Post-Closure monitoring, maintenance, and Water Treatment costs.
• Summary of 2014 RSR and Current MNML Closure Cost Estimate
• Going Forward

Overview

• RSR Submitted annually in accordance with Part 3, item 3 of Water Licence MV2007L8-0025
• Includes specific remediation activities remaining to be completed as per the approved closure and

reclamation plan.

• Update to Closure and Reclamation plan requested by the MVLWB in 2014, to include revised closure cost

estimate using Reclaim V7.

• The unit and total cost associated with each remaining activity has been derived from site specific third

party unit costs for the remaining activities at Con Mine. These costs have been input into the RECLAIM V7 model.

• A schedule for the completion of the remaining activities is also included.

Site Overview

00/00/00 Place title of presentation here 4

History

• Annual update to RSR Security amounts, and the associated reduction to Security issued by the MVLWB
• Approved Reduction $642,148 was released April 1st, 2015.
• April 30, 2015 Security Balance $11,269,495

Comparison July estimate

00/00/00 Place title of presentation here 6

• As part of the request to update the Closure and reclamation plan, MNML was requested to include a

revised cost estimate using RECLAIM V7.

• July 2014 Estimate was $7,612,947
• October 20, 2014 meeting with GNWT and MVLWB provided reasons for decision to MNML on 2013 RSR

and requested security reduction.

• Reasons for decision, and comments were reviewed and incorporated into 2014 RSR, including revisions

for new cover design approval.

• December 2014 Estimate $8,678,144, increase of $1,065,197
• Unit rate increase for material Load, haul, and place to specification based on site specific average of

$12.88/m3 . Formerly $3.00 Blast, $5.00 Specified based on cost sharing with TRD construction. Approximately $550K increase

• Contingency funds for SNP 0040-09 area $100K
• Other adjustments to building demolition, and final design quantities approx. $150K
• Increase to associated indirect costs approximately $250K (32%)

Intent

• To provide an update to the Reclamation Status at the Con Mine Site, and insight as to how we arrived at

the 2014 closure cost estimate while working toward the objectives listed below. It is not to intended to include technical discussions around the remedial approach, which have been discussed in during the July 2014 technical session and approved by the MVLWB

• Re-align cost estimates for remaining activities, completed by various stakeholders (GWNT-ENR, MVLWB,

MNML).

• Re-align Reclaim model activity descriptions with current state of remediation, including both changes in the

Reclaim Model and the approved cover designs.

• Includes both increases and decreases to the various sections of the Reclaim V7 model to clearly

and transparently identify areas for which security is being maintained.

• Update unit costs with current estimates for specific reclamation tasks remaining independent of economy

pricing for whole job estimates; using third party contractor rates when available, and Reclaim V7 estimated rates when site specific rates are unavailable.

• Increase transparency of the process allowing for the relinquishment of funds for work completed to the

satisfaction of the MVLWB.

Overview of Remaining Work

• Construction of Vegetative Islands as part of the final cover design
• Installation of the Bituminous Liner at Hazardous Waste Disposal Site
• Initial seed and fertilizer application for vegetative cover over historic tailings areas
• Commissioning of new water treatment plant
• Installation of mine dewatering pump
• Demolition of remaining site infrastructure not to be retained
• Cover of Non-Hazardous Waste Disposal Site
• Water Treatment of accumulated site water within Middle Pud
• Completion of the Middle Pud drainage channel
• Monitoring and Maintenance of vegetation and drainage
• Long-term water treatment of accumulated surface and minewater
• Long-term site and water quality monitoring.

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Schedule

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Unit Rates Applied to RECLAIM V7

Detail Units Rate Source Comments

Doze Overburden Piles m3 $3.80 RV7 – DSH

• Applied to Lower Pud Grading

Doze Positioned Rock to final grade m3 $0.95 RV7 – DSL

• Doze positioned rock over road on Upper Pud

Load, Haul, Place Material on site to specification m3 $12.88 Third Party Third Party Contractor Rate expressed as an average to L>H>P stockpiled material, tailings, or waste rock from any point to any point on the Con Mine property. (Constructing Vegetative Islands) Load, Haul, Place Material in drainage channel to spec. m3 $35.63 Third Party Third Party Contractor Rate to L>H>P Rip Rap material and place in the Drainage channels Supply & install Geotextile m2 $3.00 MNML Cost Supply and installation of non-woven geotextile for vegetative islands and drainage channel construction. Vegetation Ha $1,450 MNML Cost Unit rate based on MNML costs $12.80/kg Seed and $1.60/kg Fertilizer spread at an application rate of 60kg/ha and 400kg/ha respectively ($1,450/ha). Installation of Bituminous Geomembrane m2 $14.00 RV7 - GSIH Supply completed, installation of ES2 bituminous Liner at Hazards Waste Disposal Site.

• Based on specific tasks, with no economy discount for work being performed.

RECLAIM V7 Estimate

• The Following slides have been extracted from the 2014 RSR, generally in the order they appear in the report.
• All activities and work identified is for the completion as specified in the approved closure and reclamation plan.
• Questions on specific slides are welcome. However, please remember the stated intent of this presentation and

keep questions within the intended scope.

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Underground Workings

• Current Security Held $ 54,000
• MNML suggests that the security be increased to $100,000 to include the costs (MNML internal estimate) of

installation of the underground dewatering system in 2016.

• Installation of the Geogrid stabilization at C-103 Stope was completed in 2014.

Tailings Containment Areas (TCA) – Negus & Neil Lake TCA

• Current Security Held $ 10,300 & $11,500
• MNML suggests that the security remain unchanged as the vegetation work has not been completed, and

rates are current. Pending the completion of the vegetative cover seeding in 2015 these areas will be monitored against the closure criteria for success.

Tailings Containment Areas (TCA) – Lower Pud TCA

• Current Security Held $ 14,500
• MNML suggests that the security be increased to $44,900 to include the costs associated with the final

grading and vegetation.

• Drainage channel connecting the east perimeter drainage channel to the Lower Pud sump was completed in

2015.

• Much of the grading is now complete, the remainder is scheduled for completion in 2015.
• Pending the completion of the final grading and vegetative cover seeding in 2015 these areas will be

monitored against the closure criteria for success.

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Tailings Containment Areas (TCA) – Crank Lake TCA

• Current Security Held $ 63,665
• MNML suggests that the security be increased to $110,341 to include the costs associated with the

placement and grading of 10cm of growth media to stimulate vegetative growth in areas which have not been naturally vegetated to date.

• Volume of 7,700m3 used in calculation as worst case estimate requiring 10cm of material over 100% of the

area.

• Pending the completion of the final grading and vegetative cover seeding in 2016 this area will be

monitored against the closure criteria for success.

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Tailings Containment Areas (TCA) – Upper Pud TCA

• Current Security Held $ 705,190
• MNML suggests that the security be reduced to $324,189 to cover the costs associated with the installation
• f the vegetative islands, drainage channel, as specified in the approved final cover design.
• Previous security estimate was based on former cover design with no allowance for work completed to date.
• Cover has been installed to specification with the completion of the drainage channel Rip Rap, and

construction of the vegetative islands remaining. Pending the completion of the vegetative islands and seeding in 2015/2016 this area will be monitored against the closure criteria for success.

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Tailings Containment Areas (TCA) – Middle Pud TCA

• Current Security Held $ 1,489,200
• MNML suggests that the security be reduced to $461,198 to cover the costs associated with the installation
• f the vegetative islands, completion of drainage channel, as specified in the final approved cover design.
• Previous security estimate was based on former cover design with no allowance for work completed to date.

Also maintained a contingency fund of $819,000 to cover shortfall in material which is no longer required.

• Completion of the Middle Pud cover has been postponed until the water level within Middle Pud has been

reduced to the final working level. Pending the completion of the vegetative islands and seeding in 2016/2017 this area will be monitored against the closure criteria for success.

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Building Demolition

• Current Security Held $ 473,571 / $452,943 (discrepancy between summary and details sheet)
• MNML suggests that the security be increased to $496,543 to include the costs associated with the

demolition of all remaining site infrastructure.

• Rates are based on MNML site specific costs $21-48/m2 , and are in line with the established rates in

RECLAIM V7 ($27-65/m2).

• MNML does not have a current estimate for the demolition of the Robertson Shaft Complex, the cost

estimate was left unchanged in this estimate as fate of the structure was unknown at the time of publication. The cost of demolition will be highly dependent on the salvage value, market and labour demand at the time

• f demolition. It is the intent of MNML to have the signed demolition contract in place before the publication
• f the 2015 RSR.

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Chemicals & Soil Contamination

• Current Security Held $ 1,987,805
• MNML suggests that the security be reduced to $1,253,942 to cover the costs associated with the

installation of the vegetative islands as specified in the final approved cover design for the Con and Negus Ponds, and the former Blend Plant area, The installation of a Bituminous Liner over the Hazardous Waste Storage Site, completion of the cover over the Non-Hazardous Waste Disposal Site. With provision as a contingency for a long-term solution at the SNP 0040-9 area.

• Previous security estimate was based on former cover design for these sites.
• Completion of the Con, Negus Ponds and Blend Plant cover is scheduled for 2015. Pending the completion
• f the vegetative islands and seeding in 2015 these areas will be monitored against the closure criteria for

success.

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Chemicals & Soil Contamination Breakdown

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Chemicals & Soil Contamination Breakdown, continued

• Construction Scheduled for completion in 2015.
• Increase in cost due to final design quantities.
• RECLAIM V7 Estimate for installation used as final quote for installation is not currently available.

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Chemicals & Soil Contamination Breakdown, continued

• SNP 0040-9 area is the only remaining known contaminated soil area, where the costs are not covered

elsewhere in the RECLAIM V7 model.

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Monitoring and Maintenance Interim

• There is a distinct difference between the previous cost estimates and RECLAIM V7 with the change from

Monitor and Post Closure tabs to Interim Care and Maintenance and Post Closure Tabs.

• Long-term monitoring is now captured in the post closure tab. This estimate is for the period of 2014-2018
• MNML maintains that administrative costs are born by MNML, the use of third party rates inclusive of project

management ensures sufficient funds are available within the indirect costs for the administration of the remaining remedial activities.

• Water Treatment rates are based on bench scale testing and estimation of plant performance, the actual

cost of Water Treatment will be tracked over the period leading to the post-closure licence application 2017/2018 for adjustment at that juncture if required.

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Monitoring and Maintenance Interim - Breakdown

• Previous Reclaim Estimates were based on a 30 year Period. Long-term monitoring moved to post-closure

section.

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Monitoring and Maintenance Interim - Breakdown

• General Maintenance and Water Treatment during interim care and maintenance period.
• Previous estimate based on a 30 year period of general site maintenance exclusive of water treatment.
• Intended to maintain site access roads and complete minor improvements and site maintenance.

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Annual Water Treatment

• Previously based on 196,040m3 @ $0.64/m3 NET, Current Estimate for New WTP = $0.537/m3

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Monitoring and Maintenance Post Closure

• There is a distinct difference between the previous cost estimates and RECLAIM V7 with the change from

Monitor and Post Closure tabs to Interim Care and Maintenance and Post Closure Tabs.

• Annual water treatment is anticipated to be required for 50+ years, which can be completed annually in

approximately 38-48 days of discharge, based on the estimated average annual accumulation of 187,728m3 and an operating efficiency of 80%+.

• Middle Pud provides sufficient storage to allow for Annual, Biennial, or Triennial discharge options. MNML

anticipates that annual treatment will be the most efficient strategy under current conditions.

• Unit cost for water treatment through the new WTP will be monitored and calculated throughout the interim

care and maintenance period for presentation during the post closure licence application.

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Monitoring and Maintenance Post Closure - Breakdown

• All major civil work has been completed as per the approved Closure and Reclamation Plan. Remaining

work is limited to maintenance of newly vegetated areas and the site water drainage channels.

• The intensity of monitoring program requirements is expected to decrease with time.

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Summary of Closure Costs

• Previous cost estimates indirect costs were calculated

as a percentage of total cost. RECLAIM V7 based on percentage of Capital Costs only.

• MNML maintained the contingency at 20%, although

based on the draft guidelines for closure cost estimates – Table 1. the Con Mine Site falls within 5-10% range.

• MNML is requesting the relinquishment of funds for work

that has been completed.

• MNML is suggesting that the existing security estimate

be re-aligned with the current conditions, and approved plans as identified in the 2014 RSR.

• Current Estimate to completion is $8,678,144

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Closing Remarks

2005 2014

• MNML is committed to the responsible reclamation of the

Con Mine Property.

• Physical remediation in accordance with the approved

Closure and Reclamation Plan is in the final stages, with completion scheduled in 2017.

• Long-term 50+ years of surface and minewater treatment is

anticipated to be required.

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Questions

• Review Comments Due –

Tuesday, May 12th, 2015

• Proponent Responses Due -

Friday, May 29th, 2015

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