MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(B) Authorization Offset Plan Executive Summary

Magino Gold Project, Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary

Dubreuilville, Ontario TC180502 Prodigy Gold Inc.

Prepared for:

Prodigy Gold Inc. Box 309, 3 Dree Road, Dubreuilville, Ontario, P0S 1B0

Prepared by:

Wood Environment & Infrastructure Solutions a Division of Wood Canada Limited 160 Traders Blvd. E., Suite 110 Mississauga, Ontario, L4Z 3K7 T: (905) 568-2929

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

Table of Contents Page

List of Acronyms ...... ii

1.0 Introduction ...... 1 2.0 Description of the Types of Proposed Works Likely to Result in Loss of Fish Frequented Waterbodies and Impacts to Fisheries ...... 3 3.0 Measures and Standards to Avoid or Mitigate Impacts to Fish Frequented Waters and Serious Harm to Fish ...... 4 4.0 Residual Impacts to Waterbodies Frequented by Fish and Fisheries Likely to Result from the Proposed Works, Undertaking or Activity ...... 4 5.0 Measures to Compensate and Offset the Loss of Waters Frequented by Fish and Serious Harm to Fish Likely to Result from the Authorized Work, Undertaking or Activity ...... 5 6.0 Monitoring the Implementation and Effectiveness of the Compensation and Offset Measures ...... 7 7.0 Fish Habitat Compensation / Offset Accounting and Balance ...... 7

List of Tables

Table ES-1: Coordinates of Waterbodies Affected by Project ...... 11 Table ES-2: Fish Community Coefficient Summary ...... 11 Table ES-3: Summary of Impacts Requiring Fisheries Act Authorization or MDMER Schedule 2 Listing ...... 12 Table ES-4: Offset Area Accounting and Balance Summary...... 14

List of Figures

Figure ES-1: Project Location ...... 9 Figure ES-2: Fisheries Impact and Offset Locations ...... 10

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

List of Acronyms

CPUE Catch per Unit Effort DFO Department of Fisheries and Oceans EA Environmental Assessment ECCC Environment Canada and Climate Change EIS Environmental Impacts Assessment FAA Fisheries Act Authorization ha Hectare LOM Life of Mine LSWBM Lake and Stream Water Balance Model Magino Magino Gold Project MDMER Metal and Diamond Mining Effluent Regulations MNRF Ministry or Natural Resources and Forestry Mt Million tonnes MRMF Mine Rock Management Facility OMNR Ontario Ministry of Natural Resources Prodigy Prodigy Gold Incorporated TMF Tailings Management Facility tpd Tonnes per Day UTM Universal Transverse Mercator WQCP Water Quality Control Pond

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

1.0 Introduction

Purpose

Prodigy Gold, Inc., a subsidiary of Argonaut Gold (Prodigy) is in the process of developing the Magino Gold Project (the Project) located approximately 40 kilometres (km) northeast of Wawa, Ontario, in Finan Township, Algoma District (Figure ES-1). Prodigy proposes the Project to include the construction, operation and closure of an approximately 150 million tonnes (Mt) of ore and approximately 430 Mt of mine rock open pit gold mine and associated infrastructure. The proposed open pit will be situated in the same location as a past-producing underground mine, and as such the Project is considered a brownfield site.

The Magino Gold Project will include an open pit, milling and processing complex, roads and pipelines, ore processing plant, a tailings management facility (TMF) and mine rock management facility, and stockpiles for the storage of overburden and waste rock.

To facilitate development of the Project, there will be a need to overprint or otherwise impact waterbodies (lakes, streams and wetlands) that contain fish and/or provide fish habitat (Table ES-1); consequently necessitating the provision of compensatory offsetting measures to replace the impacted fisheries values associated with the water features. The purpose of this draft fisheries offset and compensation plan is to describe the impacts and currently proposed measures associated with fish bearing waters to demonstrate that appropriate avoidance, mitigation and offsetting of fisheries values has been provided for by the Project.

Waterbodies frequented by fish located within the footprint of the Project are also under consideration by Environment Canada and Climate Change (ECCC) for the purpose of amending Schedule 2 of the Metal and Diamond Mining Effluent Regulations (MDMER). Part of the process associated with adding a waterbody to Schedule 2 is the development of a fish habitat compensation plan as per Section 27.1 of the MDMER, to compensate for the loss resulting from the deposition of mine waste into naturally occurring fish bearing waters. Additional fisheries values impacted by the Project due to works, undertakings or activities (e.g., dewatering, open pit development, plant site, creek diversion) other than mine waste deposition, have been identified by the Department of Fisheries and Oceans (DFO) to likely result in Serious Harm to Fish as per Section 35 of the Fisheries Act, and as such will also require offsetting measures through implementation of a fisheries offset plan. Discussions with ECCC and DFO have confirmed that Prodigy will work in cooperation with DFO to develop an acceptable combined Fisheries Offset Plan that will include compensation fish habitat required for Schedule 2 waterbody impacts, and fisheries offset measures for the Section 35 impacts.

This document is a draft plan, which presents the fisheries impacts and offset measures consistent with the proposed site plan and design details. Subsequent advancements of this document will accommodate any necessary site plan changes, detailed design modifications, further clarify impacts as either Serious Harm to Fish associated with a Section 35 Authorization or waterbodies requiring Schedule 2 amendment, and incorporate stakeholder engagment.

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

Stakeholder Consultation and Engagement

The Draft EIS/EA was distributed in May 2017. Consultation with DFO and ECCC to date has advanced the development of the offsetting measures presented in the Draft EIS/EA to support the Compensation Plan presented herein. Likewise, there has been engagement with other stakeholders such as First Nation and Métis representatives and Provincial regulators (Ministry of Natural Resources and Forestry; MNRF) during the EIS and draft plan preparation. The early consultation feedback on alternatives assessment shaped the preferred alternatives proposed in this plan. Additional consultation is anticipated to further develop the proposed offsetting measures and to inform the detailed design.

Background and Environmental Setting

Detailed fisheries and fish habitat studies have been undertaken at the Project site and include multiple years and multiple seasons of investigation. Fish communities of the Project waterbodies have been classified as follows:

• None – no fish of any species identified in the waterbody;

• Baitfish – only small-bodied forage and baitfish/minnows species such as minnows and stickleback were identified or inferred to be present in the waterbody;

• Low Diversity Large-bodied Fish – baitfish/minnows and one or two large-bodied sport fish such as Yellow Perch and Burbot were identified or inferred to be present. The water bodies offer some potential for recreational or sustenance fishery usages but do not provide highly sought and valued species such as Walleye, Northern Pike or Lake Whitefish; and,

• High Diversity Large-bodied Fish – baitfish/minnows, and multiple small-bodied and large-bodied fish are present including species representative of difference trophic levels and at least one highly sought and valued species such as Walleye, Northern Pike or Lake Whitefish. Waterbodies are expected to provide premium recreational or sustenance fishery usages.

Fisheries abundance and productivity was measured using a surrogate metric, namely Catch per Unit Effort (CPUE) which is a measure of abundance and effort by fishing gear type. By comparing CPUE in the baseline conditions to the constructed compensation habitats, it can be demonstrated whether the measures have provided a comparable level of productivity. In addition to CPUE, the species richness (total number of species) at each waterbody is provided as a measure of community diversity.

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

2.0 Description of the Types of Proposed Works Likely to Result in Loss of Fish Frequented Waterbodies and Impacts to Fisheries

Project activities have the potential to result in impacts to waterbodies frequented by fish through direct impacts such as infilling or displacment of waterbodies; water intake or discharge structures; and road crossings of local watercourses; as well as indirect impacts such as flow reductions to downstream creek sections.

Direct Impacts

Direct impacts result from works activities and undertakings that will entirely displace or cause the loss of a waterbody area and include the following:

• Deposition of tailings, stockpiles and other mine waste into natural waterbodies that are frequented by fish.

• Overprinting of fisheries habitats or killing of fish through infilling or excavation to construct the mine features (i.e., open pit, plant site).

• Loss of habitat areas and overprinting due to watercourse diversions.

• Watercourse Crossings associated with access and haul roads, both temporary and permanent in duration.

• Other infrastructure such as the Otto Lake effluent discharge structure, water intakes, or berms.

Indirect Impacts

Indirect impacts are works activities and undertakings that will not result in the complete loss of a waterbody, but will alter the conditions of the habitat to an extent where impacts to fish or fish habitat may result. This is primarily associated with flow reductions where potential impacts range from negligible to an extent where the waterbody is no longer expected to support full life cycles for the resident fish. In the case of flow reductions, the criteria used to derive the extent of permanent alteration is as follows:

• Areas with less than 10% flow reduction and Lakes, ponds and impounded sections of McVeigh Creek are considered to be negligibly affected with no measurable loss of habitat. This is based on a review of ecological flow requirements by DFO (2013) in the case of less than 10% flow reductions, and based on site specific flow modeling for impounded creek and lakes.

• Channelized sections of McVeigh Creek with more than 10% flow reduction but less than 85% flow reduction are considered to be partially affected and impacted area (habitat loss) is calculated as the total channelized bankfull habitat area multiplied by the percent flow reduction. For example: habitat measuring 100 m2 in area with a 60% flow reduction would result in 100 m2×0.60 = 60 m2 of permanent habitat alteration.

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

• Areas with greater than 85% flow reduction are considered significantly affected and habitat loss is quantified as 100% of the area. This is based on the consideration that greater that 85% flow reductions would result in persistent flow conditions well below the 30% Mean Annual discharge (30% MAD) which is considered to have a heightened risk of impacts to fisheries (DFO, 2013).

3.0 Measures and Standards to Avoid or Mitigate Impacts to Fish Frequented Waters and Serious Harm to Fish

To avoid or mitigate additional loss of waters frequented by fish or Serious Harm during implementation of the plan, a combination of site specific mitigation measures as defined in permits, approvals or EA commitments and best management practices will be used. Measures and standards would include but not be limited to: construction water management; erosion and sedimentation controls; and, timing windows to protect sensitive life cycle periods.

To ensure that the measures and standards are implemented as proposed, construction and plan implementation will be monitored by Prodigy onsite monitors, or designates. Monitoring will be reported to DFO in an “as constructed” report provided within 12 months of the works being completed. The “as constructed” monitoring report will include a photographic record, a summary of all fish removal efforts carried out, and and a record of any contingency measures that were implemented and their effectiveness.

Where possible the compensation and offset measures will be constructed in advance of major Project impacts. This approach will allow for the initial development and stabilization of the works to be achieved, and significant colonization of the new replacment habitats by adjacent fish communities at the same time that fisheries impacts occur. Any changes to the approximate time periods specified in the final plan would require notification and approval by DFO in advance of the revised schedule.

4.0 Residual Impacts to Waterbodies Frequented by Fish and Fisheries Likely to Result from the Proposed Works, Undertaking or Activity

Despite the efforts and measures to avoid and mitigate impacts, there will be residual impacts to fish frequented waters and serious harm to fish that cannot be avoided. These impacts will require either the addition of waterbodies to Schedule 2 of the MDMER, or an Authorization under section 35(2)(b) of the fisheries act. All works requiring Schedule 2 amendment or Fisheries Act Authorizations are considered to be permanent in nature.

The impacts and losses of fish habitat will occur in waterbodies of varying size, and quality with fairly significant differences in the types of fish communities that they support (described in Section 1). In order to provide context to the losses of fish habitat that accounts for this variability we have proposed a fish community coefficient system to better compare habitat losses and habitat compensation between waterbodies.

The fish community coefficients focus on the ecological value of the habitat types, inferred from their fish community. Sufficient evidence exists in the scientific literature to conclude that larger lakes with greater mean depth, and rivers with larger drainage areas result in greater species richness and fish diversity. A

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

relationship between species richness and productivity is less defined in the literature, but work completed in boreal lakes in Finland showed a positive relationship between plankton species richness and primary productivity at a regional scale. This corroborates the Project data collected which showed that the small headwater creeks and lakes were generally populated by fewer species (lower species richness) and had lower abundance (lower CPUE).

The proposed fish community coefficients used to calculate adjusted areas for the impacted fish habitats are provided in Table ES-2.

The unadjusted and adjusted areas of residual impacts to waterbodies frequented by fish and to fisheries are summarized in Table ES-3 as either losses that require Schedule 2 amendment; or serious harm that requires a Fisheries Authorization.

The combined adjusted impact area to waterbodies and watercourse areas associated with the Project has been calculated as 56.75 ha. The majority of the impact area (39.69 ha, 70%) is associated with Schedule 2 waterbodies that will be overprinted due to the deposition of mineral waste such as the tailings management facility, the mine rock and overburden stockpile areas and the water quality control pond. The remaining areas of impact, (17.06 ha, 30%) will result from site development including the open pit, processing plant, access roads and other supporting infrastructure as listed in Table ES-3.

5.0 Measures to Compensate and Offset the Loss of Waters Frequented by Fish and Serious Harm to Fish Likely to Result from the Authorized Work, Undertaking or Activity

Numerous offsetting alternatives were proposed by the Project team and stakeholders during early planning discussions. A candidate alternatives ranking matrix was prepared to evaluate each alternative, with associated tables laying out the ranking scale and defining categories being ranked. Alternatives were compared based on factors such as their ability to meet the project offsetting needs, construction certainty, ecological relevance, information needs, alignment with stakeholder interests and relative cost. The highest ranked alternatives cumulatively totaling the quantity of impacted habitat were then put forward in this draft of the Fish Habitat Compensation Plan and are shown in Figure ES-2. The remaining alternative compensation alternatives are being carried forward in the overall plan as alternatives and contingency measures.

Early discussions with the stakeholders have indicated a preference for maintaining and promoting the higher diversity large bodied fish communities. The four proposed base case compensation measures below will contribute to both local baitfish production and increased high diversity habitat within the Project area. Ongoing and future consultation will be used to develop the final fisheries compensation plan and to refine or modify the measures described below.

Measure 1a – McVeigh Creek Diversion Channel between Spring Lake and McVeigh Creek Downstream of the TMF

A new diversion channel between the Spring Lake outlet and McVeigh Creek Southwest of the Southwest Fill Area Overburden and Soil Stockpile will have an alignment of approximately 580 m. The planform and cross-section of the new diversion channel was determined based on the existing habitat presence and

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

sinuosity of the existing McVeigh Creek channel. The design will include an extension of the spring lake basin as part of the diversion to bettr utilize the flat gradient existing through that area.

The design includes a functional littoral zone within the lake extension enhanced with rock and wood structure placments, and riparian vegetation. The basin will have a maximaum depth of 3.5 m to provide deeper water refuge, with an average depth of approximately 1.7 m. A riparian zone will be establised through the use of native seed bank material placement where the natural vegetation has been disturbed/removed. The habitat is designed to accommodate the existing low diversity fish community present in the Spring Lake McVeigh Creek system.

Measure 1b – Diversion Channel from Waterbody 10 to Goudreau Lake

A new diversion channel between the remnant portion of Waterbody 10 and Goudreau Lake will connect existing small ponds south of the existing Webb lake. The diversion channel will have a length of approximately 570 m, and will provide an area of approximately 3.0 ha. The proposed alignment will connect to the new constructed basin of Goudreau Lake (Measure 2). The channel design will incorporate the future site hydrology condition for the sizing of the low flow and overbank channels to emulate the existing creek systems typical to the area.

Measure 2 – Creation of New Lake / Pond Basins

The constructed lake basin(s) will be designed to provide in-kind habitat replacement (lacustrine environment) consistent with the majority of the habitat impacted by the project. Whereas the majority of impacted waterbodies are baitfish or low diversity sportfish communities, new basins will largely target supporting a higher diversity fish community consistent with stakeholder interests, and the MNRF provincial fisheries objective for this area.

Several areas have been advanced to conceptual design as part of the base case offsetting and compensation plans, including the small basin south of Spring Lake and the west extension of Goudreau Lake; although several other potential lake basin development options exist in the Project area and can be included in the plan as needed.

The new lake south of Spring Lake would be approximately 3 m at maximum depth, 1.9 m average depth, and measure 6.9 ha in area. Structure in the form of rock substrate placment and submerged wood is proposed to enhance the feature. A constructed outlet channel would provide connectivity to the existing Spring Lake enabling rapid colonization of the new waterbody. It is expected the new habitat will support a low diversity large bodied fish community similar to the existing Spring Lake conditions.

The west basin expansion to Goudreau Lake would be approximately 30 ha in size and incorporate maximum and average depths of 3.5 m and 1.8 m respectively. The basin will receive flow from the diversion of Waterbody 10 and remnant Webb Lake drainage. Habitat structure including rock placement and logs will be placed strategically throughout the basin. Rock shoals will be developed in the basin to promote walleye spawning opportunities adjacent to the deeper basing habitats.

Measure 3 – Impound New Lake Basin or Pond at Waterbody 9

The impoundment of a lake basin at the existing Waterbody 9 will result in an additional area of approximately 20 ha (after subtracting the existing waterbody areas). This impoundment will essentially

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

increase the area of Waterbody 9 in all directions and increase its depth, providing additional areas for the resident sport fish community. The new basin will have an average and maximum depth of 4.4 m and 14.1 m respectively. Strategic channels will be excavated in the impounded areas to enhance the overall basin morphology, and structures consisting of boulder piles and log structures will be placed, along with ample wood structure positioned through the new wetted areas. Rock shoals will be developed in strategic locations to promote Walleye spawning opportunities.

6.0 Monitoring the Implementation and Effectiveness of the Compensation and Offset Measures

Implementation and effectiveness of the offset measures will be monitored to confirm that measures have been constructed as per the approved plans and are functioning as intended. This will include using defined success criteria related to physical construction and function of the measures, stability of structures, species presence, full life cycle usage, and fish abundance.

If the results of the monitoring indicate that the compensation measures are not completed on time and/or are not functioning according to the plan, the Proponent will give written notice to DFO and will implement contingency measures and additional monitoring.

The monitoring results will be documented in the “as constructed” report; and in performance monitoring reports submitted to DFO according to the approved schedule. The “as constructed” report will be due within 12 months of completing the compensation measures. Performance monitoring reports will be due on or before December 31 of years 1, 3 and 5 following construction of the works. Modifications to the proposed monitoring schedule may be requested by the Proponent in writing to DFO to reflect results of the monitoring program.

7.0 Fish Habitat Compensation / Offset Accounting and Balance

In most cases, the impacted waterbodies support baitfish communities or low diversity large-bodied communities defined by the presence of smaller sport fish species such as Burbot or Yellow Perch. The majority of lakes with highly sought recreational and sustenance sportfish such as Walleye, Northern Pike and Whitefish, are located outside the Mine Development Area and are not considered to be affected due to the Project.

As described in Section 4 and Table ES-2, a fish community coefficient is proposed to reflect the differences between waterbodies with respect to biological diversity and quality. Consistent with the approach taken to calculate and adjusted impact area, the fish community coefficient was used to calculate an adjusted compensation habitat area that is reflective of the fishery quality: None (0); Baitfish (0.75); Low Diversity Large-Bodied Fish (1); and High Diversity Large-bodied Fish (1.25).

The Plan intentionally targets the development of high diversity offset measures as replacement to the lower diversity and baitfish waterbodies that will be impacted. By applying the coefficient consistently to both the impacted waterbodies and offset areas, the relationship between the higher ecological values of the offset measures to the lower ecological value of the impacted baitfish waterbodies can be better quantified. For example, if 1 ha of baitfish habitat with a coefficient of 0.75 is replaced with 1 ha of high diversity offset habitat with a coefficient of 1.25 the difference in adjusted habitat area is 0.5 ha as illustrated below.

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

A combined adjusted impact area of 56.8 ha will result from development of the Project and its associated facilities as summarized in Table ES-4. Of this combined adjusted total, 39.70 ha will be a result of depositing mine waste into waters frequented by fish, and fall under MDMER Schedule 2 waterbodies requiring replacement through a compensation plan. The remaining 17.05 ha of adjusted impact area will fall under the Fisheries Act, Paragraph 35(2)(b) and requiring replacement through a Fisheries Authorization.

The base case fish habitat compensation plan currently proposed will result in the development of a total adjusted area of 75.6 ha of newly constructed fish habitat resulting in a minimum net habitat gain of 18.8 ha, and an approximate 1:1.3 replacement ratio.

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660000 670000 680000 690000 700000 Upper Lola Lake Boulder Lake KEY MAP Wabatongushi Sausage Lake Lake

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Delusion Lake Lake 5360000

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Troupe Goudreau Lake Sutherland Lake Herman Lake Lake 500 km ^_Project Location 5350000 Cradle Goudreau Morrison Lakes Cawdron Radford Lake Lake Lake

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Potholes Provincial Park

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0 2.5 5 10 15 20 Kilometres ² SCALE: 1:250,000 DATE: July 2018 683000 684000 685000 686000 687000 688000 689000 690000 691000

Herman Creek Maskinonge Lake 5354000

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Waterbody 3 8 !k" MRMF Waterbody !k" 9 5353000

2D Northwest Fill Area Overburden and Soil Stockpile

Waterbody E 2 Mill E !k" Area

E Waterbody 1 !k" Goudreau Creek E E Crusher !k" Tailings Otto !k" Stockpile Goudreau Road Sherman Pond 5352000 Herman Lake TMF 2C Lake Lake Waterbody Waterbody 7 !k" 11 !k" Polishing Goudreau

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Lake South 3 Lovell !k" E McVeigh !k" Lake 5351000 Webb West Creek Lake Goudreau !k" Pond 2E E Waterbody Southwest Fill Area E 13 Overburden and Soil Stockpile Spring Lake !k" 1A Waterbody 2B !k" 10 1B 2A 5350000 P:\2018\Projects\TC180502_PGI_Magino_Environment\02_Work_Files\GIS\D_Russell_Misc\Offsetting_Plan\MXD\Offsetting_Plan_17.mxd NOTES: LEGEND - Project outline boundary, property boundary, site footprints and # Summary of Fish Habitat Impacts Property Boundary Contours (2.5 m interval) Habitat Offsetting Options contours provided by Minnow. 1A: McVeigh Creek Diversion Channel between Spring Lake and Section 35 Total Fish Habitat Proposed Extent of Mine Development Area Railway Habitat Schedule 2 (ha) McVeigh Creek Downstream of the TMF Authorization (ha) Lost (ha) 1B: Diversion Channel from Waterbody 10 to Goudreau Lake Schedule 2 Listing Road MAGINO GOLD PROJECT 2A: Potential New Lake / Basin South of Spring Lake Stream* 0.6 0.9 1.6 Section 35 Authorization Captured Fish Species 2B: Potential New Lake / Basin West of Goudreau Lake South Waterbody 45.0 13.9 58.9 2C: Potential New Lake / Basin North of Goudreau Lake Total 45.7 14.8 60.5 Fisheries Impact Mine Infrastructure 2D: Potential New Lake / Basin East of Herman Lake !k" High Diversity Sportfish !k" Baitfish *Stream areas calculated with estimated wetted width of 1 m. 2E: Potential New Lake / Basin South of Herman Lake and Offset Locations Waterbody !k" Low Diversity Sportfish !k" None 3: Impound New Lake Basin or Pond at Waterbody 9 Datum: NAD83 o Watercourse Projection: UTM Zone 16N PROJECT N : TC180502 FIGURE: ES-2

0 0.5 1 2 3 4 5 Kilometres ² SCALE: 1:21,000 DATE: October 2018 Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

Table ES-1: Coordinates of Waterbodies Affected by Project

Easting Northing Names of Waterbody (Centroid) (Centroid) Lovell Lake 687850 5351056 Lovell Lake to confluence with McVeigh Creek Tributary 687263 5350858 McVeigh Creek (d/s of Spring Lake) 685529 5350989 McVeigh Creek (d/s of Spring Lake) to Summit Lake 684352 5349625 McVeigh Creek Tributary to Spring Lake 687569 5351707 McVeigh Creek Tributary 2 685523 5351402 Polishing Pond 688671 5351629 Polishing Pond to Lovell Lake 688388 5351394 Waterbody 1 Inlet 688766 5352517 Waterbody 1 688443 5352260 Waterbody 1 to confluence with Unnamed Tributary 687989 5351973 Waterbody 2 Inlet 688134 5352450 Waterbody 2 688000 5352408 Waterbody 2 to confluence with McVeigh Creek Tributary 687722 5352143 Waterbody 3 686485 5350898 Waterbody 3 to Spring Lake 686599 5350732 Waterbody 4 686719 5351297 Waterbody 5 686628 5351417 Waterbody 6 to Waterbody 7 684953 5351526 Waterbody 7 685409 5351898 Waterbody 7 Outlet 685292 5352205 Waterbody 10 688333 5350324 Waterbody 10 to Webb Lake 688386 5350692 Webb Lake 688895 5350826 Webb Lake to Goudreau Lake 689457 5351161 Waterbody 12 687066 5351132 Waterbody 13 687537 5350590 Waterbody 13 to Lovell Lake 687883 5350757 Note(s) Note(s) 1. Coordinates are in UTM NAD 83, Zone 16U 2. Centroid is the approximate centermost point of the length or portion of waterbody affected by the Project

Table ES-2: Fish Community Coefficient Summary

Fish Community Coefficient None 0 Baitfish (no large-bodied fish) 0.75 Low Diversity Large-bodied fish with Baitfish 1 High Diversity Large-bodied fish with Baitfish 1.25

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

Table ES-3: Summary of Impacts Requiring Fisheries Act Authorization or MDMER Schedule 2 Listing

Fisheries Adjusted Fish Fish Community Waterbody Name Effect Impact Area Fisheries Impact Community Coefficient (ha) Area (ha) Lovell Lake Overprinted By South East Fill Area 13.31 LD 1 13.31 Lovell Lake to confluence with Overprinted By Tailing Facility 0.2 LD 1 0.2 McVeigh Creek Tributary McVeigh Creek (d/s of Spring Lake) Overprinted By Southwest Fill Area 9.9 LD 1 9.9 within Development Area McVeigh Creek Tributary to Spring Overprinted By Tailing Facility And South 0.45 LD 1 0.45 Lake East Fill Area Overprinted By Tailing Facility And McVeigh Creek Tributary 2 0.14 BF 0.75 0.105 Southwest Fill Area Overprinted By Tailing Facility And South Polishing Pond to Lovell Lake 0.11 BF 0.75 0.0825 East Fill Area Waterbody 1 Overprinted By Mine Rock Stockpile 4.18 BF 0.75 3.135 Waterbody 1 to confluence with Overprinted By Tailing Facility 0.84 BF 0.75 0.63 Unnamed Tributary Waterbody 2 Inlet Overprinted By Mine Rock Stockpile 0.03 BF 0.75 0.0225 Waterbody 2 Overprinted By Tailing Facility 2.32 BF 0.75 1.74 Waterbody 2 to confluence with Overprinted By Tailing Facility 0.67 BF 0.75 0.5025 McVeigh Creek Tributary Waterbody 3 Overprinted By Tailing Facility 2.89 BF 0.75 2.1675 Waterbody 3 to Spring Lake Overprinted By Tailing Facility 0.03 BF 0.75 0.0225 Waterbody 4 Overprinted By Tailing Facility 0.19 None 0 0 Waterbody 5 Overprinted By Tailing Facility 0.49 None 0 0 Overprinted By Water Quality Control Waterbody 6 to Waterbody 7 0.04 BF 0.75 0.03 Pond Overprinted By Water Quality Control Waterbody 7 9.11 BF 0.75 6.8325 Pond Overprinted By Northwest Fill Area And Waterbody 8 Inlet 0.05 BF 0.75 0.0375 Overburden Stockpile Waterbody 13 Overprinted By Tailing Facility 0.63 BF (Unk) 0.75 0.4725 Waterbody 13 to Lovell Lake Overprinted By Tailing Facility 0.06 BF (Unk) 0.75 0.045 Total Schedule 2 Impacts 45.64 39.69

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

Fisheries Adjusted Fish Fish Community Waterbody Name Effect Impact Area Fisheries Impact Community Coefficient (ha) Area (ha) McVeigh Creek (d/s of Spring Lake) Flow Reduction 0.81 HD 1.25 1.0125 to Summit Lake McVeigh Creek Tributary to Spring Flow Reduction 0.09 LD 0.75 0.0675 Lake Polishing Pond Overprinted By Mill Area 1.88 BF 0.75 1.41 Waterbody 1 Inlet Overprinted By Mill Area 0.02 BF 0.75 0.015 Waterbody 3 to Spring Lake Flow Reduction 0.02 BF 0.75 0.015 Waterbody 7 outlet to Otto Lk. Flow Reduction 0.04 BF 0.75 0.03 Waterbody 8 Inlet Flow Reduction 0.01 BF 0.75 0.0075 Waterbody 10 Flow Reduction 0.61 BF 0.75 0.4575 Waterbody 10 to Webb Lake Flow Reduction 0.48 LD 1 0.48 Waterbody 13 Inlet Flow Reduction 0.02 BF (Unk) 0.75 0.015 Webb Lake Overprinted By Open Pit 10.79 HD 1.25 13.4875 Webb Lake to Goudreau Lake Flow Reduction 0.05 HD 1.25 0.0625 Waterbody 13 Inlet Flow Reduction 0.02 BF (Unk) 0.75 0.015 Total Section 35 Impacts 14.82 17.06 Combined Schedule 2 and section 35 Area Totals (ha) 60.4 56.75

Note(s) 1. NA not applicable. 2. Fish Community Coefficients employed are as follows: a. None =0 b. BF (baitfish)=0.75 c. LD (low diversity sportfish community) = 1 d. HD (high diversity sportfish community) = 1.25. 3. Unk is unknown fish species (assumed to be baitfish).

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Magino Gold Project Draft - MDMER Schedule 2 Fish Habitat Compensation Plan and Fisheries Act Paragraph 35(2)(b) Authorization Offset Plan Executive Summary October 2018

Table ES-4: Offset Area Accounting and Balance Summary

OFFSET / COMPENSATION MEASURES Approximate Approximate Fish Adjusted Fish Adjusted Area Offset / Compensation Measure Unadjusted Unadjusted Cumulative Community Cumulative Community (ha) Area (ha) Area (ha) Coefficient Area (ha) McVeigh Creek downstream of Spring 3.2 3.2 Low Diversity 1 3.2 3.2 Lake Water Body 10 to Goudreau Lake 3.0 6.2 Low Diversity 1 3.0 6.2 Small lake south of Spring Lake and 6.9 13.1 Low Diversity 1 6.9 13.1 outlet channel Excavate new Lake Basin (e.g., at 30 43.1 High Diversity 1.25 37.5 50.6 Goudreau Lake) Impound new lake basin / pond (e.g., 20 63.1 High Diversity 1.25 25 75.6 Waterbody 9) COMPENSATION BALANCE Section 35 Schedule 2 Combined Unadjusted Fishery and Waterbody Area Total Impact (ha) 14.8 45.7 60.5 Adjusted Fishery and Waterbody Total Impact Area (ha) 17.1 39.7 56.8 Unadjusted Cumulative Offset / Compensation Area (Base Case) (ha) 63.1 Adjusted Cumulative Offset / Compensation Area (Base Case) (ha) 75.6 Net Gain Unadjusted (ha) 2.6 Net Gain Adjusted (ha) 18.8 Ratio Unadjusted 1:1.04 Ratio Adjusted 1:1.33 Note(s) 1. NA not applicable. 2. Fish Community Coefficients employed are as follows: a. None =0 b. BF (baitfish)=0.75 c. LD (low diversity sportfish community) = 1 d. HD (high diversity sportfish community) = 1.25. 3. Unk is unknown fish species (assumed to be baitfish) 4. Offset / Compensation Measure Approximate Unadjusted Areas (ha) are ensured, however there is potential to provide Offset / Compensation Measure Adjusted Area (ha) based on design drawings

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