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Comprehensive Study Report Comprehensive Study Report PAMOUR PIT EXPANSION FEBRUARY 2005 PJV – Pamour Pit Expansion CEAA Comprehensive Study Report February 2005 EXECUTIVE SUMMARY 1.0 INTRODUCTION The Porcupine Joint Venture (PJV) was formed in July 2002 to combine the assets of Placer Dome (CLA) Limited (51%) (Placer), and Kinross Gold Corporation (49%) (Kinross). As majority partner, Placer represents the legal proponent of the pit expansion project. The assets of the PJV include the Dome underground and open pit mine and mill, the Hoyle Pond mine, the Bell Creek mill, the Pamour Mine and a large land package in the Timmins camp. The PJV was formed to maximize the value of resources of both partners, and now intends to undertake a major expansion of the existing Pamour Pit. The PJV, through its members, is the proponent of the proposed Pamour Pit Expansion and bear financial responsibility for the planning, design and construction of the project. The Pamour Pit Expansion is the most significant PJV resource. The proposed Project (see Project Overview) is subject to federal legislation including the Fisheries Act and the Navigable Waters Protection Act. With the requirement for Fisheries Act and Navigable Waters Protection Act Authorizations, the Canadian Environmental Assessment Act (CEAA) process is triggered. Consistent with the CEAA Comprehensive Study List, a Comprehensive Study is required. This study is scoped to include aspects of the works and activities (the “Project”) associated with pit expansion, and key works and activities required to facilitate the pit expansion. The Responsible Authorities (RAs) for the Project are the Department of Fisheries and Oceans (DFO) and Transport Canada (TC), with DFO representing the lead RA. PJV assembled their baseline information and effects assessment in a draft Comprehensive Study Report (DCSR) that was submitted to federal authorities in July 2004. The federal authorities reviewed the document and provided technical comments and recommendations. The PJV provided technical and process responses in October 2004, and additional meetings with federal authorities were undertaken to discuss and clarify project details and outstanding issues. Upon completion of this consultation and issue resolution process, the final Comprehensive Study Report was submitted for review by the RAs and CEA Agency. This review has resulted in this CSR being made available for public review. 2.0 PROJECT DESCRIPTION The proposed Pamour Pit Expansion project is located along Highway 101, 5 km east of Porcupine, Ontario, in Whitney Township. The pit expansion will combine the previously mined No. 3 Pit and West Pit of the Pamour Mine site, as well as the adjacent Hoyle Pit, into one large open pit. Pit expansion will extend across the current alignment of Highway 101 into Three Nations Lake and through a section of Three Nations Creek. To access the ore reserves through pit expansion, it is proposed to build a dam across Three Nations Lake to isolate and remove approximately 14 ha of the lake’s north basin. This will also result in the indirect alteration of approximately 2.5 km of the headwaters of Three Nations Creek due to diversion of flows. The construction of the dam on Three Nations Lake will require approval from Transport Canada under Section 5 (1) of the Navigable Waters Protection Act. The proposed shoreline Page i PJV – Pamour Pit Expansion CEAA Comprehensive Study Report February 2005 alteration, isolation of the north basin and alteration of 2.5 km of Three Nations Creek will require authorization from DFO under Section 35 of the Fisheries Act, in which no Harmful Alteration, Disruption or Destruction (HADD) to fish habitat can proceed without this authorization. The Fisheries and Oceans Canada Habitat Management Policy requires “no net loss” of fish habitat and as such, any alterations to Three Nations Lake and Three Nations Creek habitat will require compensation. In keeping with Fisheries and Oceans Canada’s Policy for the Management of Fish Habitat (1986), an authorization will be issued where the HADD is considered acceptable and provided that acceptable measure to compensate for the habitat loss are developed and implemented. To accommodate the recognized HADD and Fisheries Act requirements, excavation of a new lake replacement basin is proposed to occur adjacent to the southeastern side of Three Nations Lake in order to compensate for the habitat loss of the lake. A new Three Nations Creek realignment will drain this lake replacement basin and reinstate lake outlet flows to tie into the existing Three Nations Creek system at a point 4.6 km downstream. The major works and activities required to undertake the expansion of the Pamour Pit involve both the works that are directly related to open pit mining, as well as the activities that must be applied to facilitate the pit expansion. The scope of the project being assessed in the CSR is:: The Pamour Pit Expansion, which consists of the following undertakings: • Pit overburden stripping including existing Pamour tailings; • Ore and waste rock mining; and, • Waste rock management and disposal. And the following works and activities to facilitate the proposed pit expansion: • Construction of an isolation dam across Three Nations Lake (Lake Infill); • Partial dewatering of Three Nations Lake; • Relocation of a portion of Three Nations Creek; • Alteration of Three Nations Lake shoreline; and, • Extension of Three Nations Lake. PROJECT PURPOSE AND NEED The purpose of the Project is to undertake several works and activities including pit expansion, isolation of Three Nations Lake from the pit, and associated local habitat and watershed drainage replacement such that gold bearing ore, of sufficient tonnage and throughput, can be mined. This Project is critical to the sustainability of the PJV, as it will provide a continuous source of mining for the next 11 years after the closure of the existing PJV open pit operation at the Dome Mine. This Project will not only sustain the 270 employee workforce for this 11-year period, but Page ii PJV – Pamour Pit Expansion CEAA Comprehensive Study Report February 2005 will also allow the proper time to explore the rest of the Timmins mining camp to find future resources. Mining is an important cornerstone in the Timmins and area economy. 3.0 PROJECT ALTERNATIVES ASSESSMENT Alternatives to the Project The Pamour and adjacent Hoyle Mines, which collectively represent the area of the proposed Pamour Pit Expansion, have been mined since the early 1900s. Over this period of time, ore extraction efforts were initiated with narrow vein mining through underground techniques and ended with open pit development. The underground mining was continued until the higher-grade ores were exhausted. Pit development represented the application of mining techniques to access lower grade ore and reserves closer to surface. Through consolidation of mining resources, the PJV can feasibly access the remaining low- grade ore that persists between the Pamour and Hoyle Pits, and below the old mine/milling facility infrastructure of the Pamour Mine. As this represents the final phase of feasibly accessing the remaining ore reserves, it is considered that there is no reasonably feasible alternative to this Project. Consequently, the alternatives are represented by either No Mine development, or expansion of the Pamour Pit. An evaluation of performance objectives including: cost-effectiveness, technical applicability and/or system integrity and reliability, effects (adverse) to the natural environment, effects (negative) to the socio-economic environment, and amenability to reclamation was applied and it was determined that the No Mine scenario was not acceptable. The expansion of the Pamour Pit would permit the extraction of the remaining low grade ore reserves found between the existing old workings with minimization of adverse effects on the environment through mitigation. This alternative would meet the objectives of maintaining an ore supply to the Dome Mill on completion of mining activities at the Dome Mine, and permit ongoing exploration to establish future reserves in the Timmins mining camp, a recognized benefit to the socio- economic environment of Timmins. Alternative Means of Carrying Out the Pamour Pit Expansion Mining Alternative means of carrying out the PJV Pamour Pit Expansion, with specific reference to the mining aspects of the Project, were represented by two alternative mine scenarios that included: • Phase 1 and Partial Phase 2; and, • Mining Phases 1,2 & 3 – Complete Pamour Pit Expansion. The Phase 1 and partial Phase 2 Alternative involve a pit expansion that would be restricted to the north side of Highway 101 and Three Nations Lake. This scenario would involve expansion of the No. 3 pit in a westerly direction to connect the adjacent West pit, and recover the shaft, crown pillar and additional reserves located under the previous Pamour Mine site and tailings area. Page iii PJV – Pamour Pit Expansion CEAA Comprehensive Study Report February 2005 With no encroachment into Three Nations Lake, there would be no requirement for an isolation dam, a loss of fish habitat in the north lake basin, an alteration of the shoreline, or the construction of a replacement lake basin. Three Nations Creek would also be maintained in its existing location. Although this would afford the least effect on the environment, it is not cost effective, does not meet the socioeconomic objectives of sustaining the overall PJV operations that contribute to the
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