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Muskwa-Kechika Advisory Report on Mineral Exploration and Development Potential in the Muskwa-Kechika Management Area

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Muskwa-Kechika Advisory Report on Mineral Exploration and Development Potential in the Muskwa-Kechika Management Area MUSKWAMUS -KECHIKA ADVISORY BOARD MUSKWA-KECHIKA ADVISORY REPORT ON MINERAL EXPLORATION AND DEVELOPMENT POTENTIAL IN THE MUSKWA-KECHIKA MANAGEMENT AREA REPORT MARCH 2013 ISSUED FOR USE EBA FILE: 704-V15103015-01 LIMITATIONS OF REPORT This report and its contents are intended for the sole use of the Ministry of Forests, Lands and Natural Resource Operations and their agents. EBA Engineering Consultants Ltd. does not accept any responsibility for the accuracy of any of the data, the analysis, or the recommendations contained or referenced in the report when the report is used or relied upon by any Party other than the Ministry of Forests, Lands and Natural Resource Operations, or for any Project other than the proposed development at the subject site. Any such unauthorized use of this report is at the sole risk of the user. Use of this report is subject to the terms and conditions stated in EBA’s Services Agreement. EBA’s General Conditions are provided in Appendix F of this report. EBA Engineering Consultants Ltd. operating as EBA, A Tetra Tech Company Oceanic Plaza, 9th Floor, 1066 West Hastings Street Vancouver, BC V6E 3X2 CANADA p. 604.685.0275 f. 604.684.6241 MUSKWA-KECHIKA ADVISORY REPORT ON MINERAL EXPLORATION AND DEVELOPMENT POTENTIAL IN THE M-KMA EBA FILE: 704-V15103015-01 | MARCH 2013 | ISSUED FOR USE EXECUTIVE SUMMARY EBA, A Tetra Tech Company (EBA) was retained by the Muskwa-Kechika Advisory Board (M-KAB) to develop an advisory report for mineral exploration and development in the Muskwa-Kechika Management Area (M-KMA). The M-KMA was established in the 1998 with the goal of being a world class management model that accommodates both environmental conservation and resource development objectives. The M-KMA area covers 6.4 million hectares, with approximately 25% of the management area (1.6 million hectares) designated as Parks and Protected Areas. The remaining 75% (4.8 million hectares) is composed of resource management zones within which the M-KAB would like to better understand and review possible opportunities for mineral exploration and development. Any such activities would be conducted in accordance with the Muskwa-Kechika Management Act and, where applicable, the M-KAB Operational Wilderness Definition. A review of the regional geology and mineralization trends within and surrounding the location of the M-KMA, identified several discrete belts of stratiform-stratabound type (and breccia-type) deposits that contain a variety of metals and minerals such as zinc, lead, copper, silver and barite. The areas of metal endowment are generally related to deep structural features that run parallel to the accreted terranes that define the geologic architecture of the region. Reviewing this geological information in relation to the mineralization identified at various in the area provides information on potential areas of mineral potential and subsequent mineral tenure acquisitions. Mineral tenure history indicates that interest in the area, as a function of mineral tenure staking, is increasing. A map of mineral tenures created in August 2004 shows sparse coverage, with the bulk of the interest lying outside the boundaries of the M-KMA. Current mineral tenure holdings are also concentrated outside of the M-KMA boundary along its western edge, with increased interest throughout the central portion of the area along trend of the ancestral North American basinal terrane. The amount of mineral tenure staking between these dates is variable, with the greatest level of activity occurring over the last two years. The most promising prospects and projects identified are advanced stage projects that have identified SEDEX style lead-zinc-silver deposits along a trend of mineralization aligned with the Kechika Trough. A review of all applicable mining and M-KMA specific legislation was conducted. No gaps among provincial mining legislation and legislation specific to the M-KMA were identified during this study. All mineral exploration and development in the M-KMA is subject to the provincial regulatory process while adhering to requirements outlined in the M-KMA Management Plan. Based on the findings of this report, recommendations are provided to encourage, manage, and sustain mineral exploration and development in the M-KMA. i M-KMA Report.docx MUSKWA-KECHIKA ADVISORY REPORT ON MINERAL EXPLORATION AND DEVELOPMENT POTENTIAL IN THE M-KMA EBA FILE: 704-V15103015-01 | MARCH 2013 | ISSUED FOR USE TABLE OF CONTENTS EXECUTIVE SUMMARY........................................................................................................................... i 1.0 INTRODUCTION ........................................................................................................................... 1 2.0 LOCATION AND GEOLOGICAL SETTING .............................................................................. 1 3.0 SUMMARY OF MINERAL EXPLORATION AND DEVELOPMENT WITHIN AND ADJACENT TO THE M-KMA ........................................................................................................ 2 3.1 Introduction ............................................................................................................................................2 3.2 Information Sources...............................................................................................................................2 3.3 Mineral Exploration and Development Survey ......................................................................................3 3.3.1 Survey Response .....................................................................................................................3 3.4 Mineral, Coal, and Placer Tenures ........................................................................................................4 3.5 Base and Precious Metals .....................................................................................................................5 3.5.1 Lead-Zinc-Silver........................................................................................................................5 3.5.2 Gold-Copper .............................................................................................................................6 3.5.3 Nickel ........................................................................................................................................7 3.5.4 Rare Earth Elements (REE) / Niobium .....................................................................................7 3.5.5 Industrial Minerals.....................................................................................................................8 3.5.5.1 Barite............................................................................................................................8 3.5.5.2 Fluorospar....................................................................................................................8 3.5.5.3 Quartz Arenite..............................................................................................................9 3.5.5.4 Coal..............................................................................................................................9 3.6 Historical Past Producing Mines............................................................................................................9 4.0 MINERAL TENURE AND REGULATORY PROCESS IN BC .................................................. 10 4.1 Muskwa-Kechika Management Area Legislation.................................................................................11 4.1.1 Muskwa-Kechika Management Area Act................................................................................11 4.1.2 M-KMA Management Plan Regulation ...................................................................................11 4.1.2.1 Land and Resource Management Plans (LRMP’s) ...................................................12 4.1.2.2 Local Strategic Plans .................................................................................................12 4.1.3 Access Management Area Regulation ...................................................................................13 4.2 Mineral Tenure in British Columbia .....................................................................................................13 4.2.1 Mineral Exploration and Development in the M-KMA.............................................................13 4.3 British Columbia Environmental Assessment Process........................................................................14 4.3.1 The Pre-Application Stage......................................................................................................14 4.3.2 The Application Review Stage................................................................................................15 4.3.3 Post-Certification ....................................................................................................................15 4.4 Summary of Findings...........................................................................................................................15 ii M-KMA Report.docx MUSKWA-KECHIKA ADVISORY REPORT ON MINERAL EXPLORATION AND DEVELOPMENT POTENTIAL IN THE M-KMA EBA FILE: 704-V15103015-01 | MARCH 2013 | ISSUED FOR USE 5.0 EVALUATION OF MINERAL DEVELOPMENT POTENTIAL IN THE M-KMA AND SURROUNDING AREA................................................................................................................ 15 5.1 Historic and Current Tenures...............................................................................................................16
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