CNE DEPOSIT (Mine Lease 251)

Bathurst Mining Camp, New Brunswick, Canada

Environmental Impact Assessment Registration

April 5, 2012

Prepared by:

Derek Brown, P.Geo

Kevin Vienneau

Stan Stricker, P. Geol

John Duncan, P. Geo

1.0 INTRODUCTION ...... 1 1.1 Project Overview ...... 2 1.2 Proponent...... 4 1.3 Property Ownership ...... 5 1.4 Background ...... 5 1.5 Need For The Project...... 9 1.6 Project Schedule ...... 11 2.0 PROJECT DESCRIPTION ...... 12 2.1 Geographic Location and Access ...... 12 2.2 Rehabilitation of Previously Registered Project ...... 13 2.3 Resources and Mine Life ...... 16 2.4 Mining...... 17 2.4.1 Mine Development ...... 17 2.4.2 Mine Methods and Open Pit Parameters ...... 18 2.4.3 Mine Equipment ...... 21 2.4.4 Production Rate and Schedule ...... 21 2.5 Project Infrastructure ...... 21 2.5.1 Ore Crushing, Storage and Loading ...... 22 2.5.2 Waste Rock Storage ...... 22 2.5.3 Overburden Storage ...... 22 2.5.4 Storage Facilities ...... 23 2.5.5 Site Roads ...... 23 2.5.6 Site Security ...... 23 2.6 Site Preparation ...... 24 2.7 Water Management and Treatment ...... 24 2.7.1 Solid Waste ...... 26 2.7.2 Sanitary Waste ...... 26 2.7.3 Hazardous Waste ...... 26

ii Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.8 Site Access and Ore Transport ...... 26 2.9 Power Supply and Distribution ...... 27 2.10 Communication Systems ...... 27 2.11 Project Emissions ...... 27 2.12 Emergency Response ...... 28 2.13 Health and Safety ...... 28 2.14 Decommissioning and Reclamation ...... 28 2.14.1 Mine Pit...... 28 2.14.2 Surface Facilities ...... 29 2.14.3 Waste and Overburden Pads ...... 29 2.14.4 Settling Ponds ...... 29 3.0 EXISTING ENVIROMENT ...... 30 3.1 Physical Environment ...... 30 3.1.1 Physiography ...... 30 3.1.2 Climate ...... 33 3.1.3 Soil and Overburden ...... 40 3.1.4 Geology Regional ...... 42 3.1.5 Geology Project ...... 43 3.1.6 Air Quality ...... 46 3.1.7 Surface Drainage ...... 46 3.2 Terrestrial Environment ...... 47 3.2.1 Vegetation ...... 47 3.2.2 Wildlife ...... 48 3.2.3 Rare Species ...... 50 3.3 Aquatic Environment ...... 50 3.3.1 Hydrology ...... 50 3.3.2 Water Quality ...... 52 3.3.3 Sediment Quality ...... 61

iii Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

3.3.4 Fish and Fish Habitat...... 70 3.4 Human Environment ...... 73 3.4.1 Labour Force ...... 76 3.4.2 Land Use ...... 78 3.4.3 Traditional Land Use ...... 79 3.4.4 Archaeology and Heritage ...... 79 4.0 SUMMARY OF PROPOSED MITIGATION ...... 80 4.1 Physical Environment ...... 81 4.2 Terrestrial Environment ...... 82 4.3 Aquatic Environment ...... 84 4.3.1 Water Quality ...... 84 4.3.2 Surface Hydrology...... 84 4.3.3 Fish and Fish Habitat...... 85 4.4 Human Environment ...... 86 4.4.1 Archeological Resources ...... 86 4.4.2 Land and Resources Use ...... 86 4.4.3 Local Economy ...... 87 4.5 Residual and Cumulative Effects ...... 87 4.5.1 Residual...... 87 4.5.2 Cumulative ...... 87 5.0 MONITORING ...... 89 6.0 PUBLIC INVOLVEMENT ...... 92 6.1 Objectives ...... 92 6.2 Regulatory Involvement ...... 92 6.3 Public Involvement Activities ...... 92 6.3.1 Stakeholder Identification ...... 92 6.3.2 Public Open House and Notification ...... 93 6.4 Availability of Registration Document ...... 94

iv Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

6.5 Documentation and Schedule ...... 94 7.0 APPROVAL OF THE UNDERTAKING ...... 95 8.0 FUNDING ...... 95 9.0 SIGNATURE ...... 96 10.0 REFERENCES ...... 97

APPENDIX A Environment Canada Weather Data

APPENDIX B Jacques Whitford’s Limited Aquatic Baseline Survey of Portage River, Captain Project Claim

APPENDIX C CNE Project Related Communication

Included as digital .pdf on CD:

Copy EIA Registration Document Wardrop's Preliminary Economic Assessment on the CNE, Captain and Taylor Brook Deposits Jacques Whitford’s Aquatic Baseline Survey of the Portage River, Captain Project Claim Environment Canada Weather Data CNE Project Related Communication Original EIA Registration document

v Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

LIST OF TABLES

Table 1.1 Mineral reports of work for the CNE Project……………………………………………………….7

Table 1.2 Preliminary schedule for the CNE Project………………………………………………………….11

Table 2.1 CNE Resource Estimate…………………………………………………………………………………….16

Table 3.1 Tree species of the CNE project area…………………………………………………………………47

Table 3.2 List of animal kingdom for the project area………………………………………………………48

Table 3.3 Groundwater flow, drill hole CNE87-8……………………………………………………………..53

Table 3.4 Regional water quality analysis for CNE project……………………………………………….54

Table 3.5 Water quality analysis for CNE Project………………………………………………………………55

Table 3.6 Water monitoring results from site number CNE1…………………………………………….59

Table 3.7 Stream sediment grain size distribution and carbon content…………………………….62

Table 3.8 Stream sediment Geochemistry for CNE project area……………………………………….64

Table 3.9 Fish species identification…………………………………………………………………………………72

Table 3.10 First Nation communities census data within 50 km of project………………………..76

Table 3.11 Labour distribution for Miramichi-Bathurst, NB………………………………………………..77

Table 3.12 Major employers of the Bathurst region…………………………………………………………..78

Table 5.1 Environmental Effects Monitoring parameters required under the MMER for effluent and water quality assessment……………………………………………………………..89

Table 5.2 Monitoring locations, analyses and schedule for CNE project………………………..…90

Table 5.3 Authorized Limits of Deleterious Substances…………………………………………………….90

vi Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

LIST OF FIGURES

Figure 1.1 General project location map……………………………………………………………………………..3

Figure 2.1 CNE deposit location map…………………………………………………………………………………12

Figure 2.2 Site plan comparison from 1990 and 2012……………………………………………………….15

Figure 2.3 CNE site plan…………………………………………………………………………………………………….17

Figure 2.4 Ultimate CNE pit design…………………………………………………………………………………….19

Figure 2.5 CNE and 3D rendered image of CNE pit design and resource body………………….20

Figure 2.6 Existing water treatment system………………………………………………………………………25

Figure 3.1 Map of New Brunswick landforms……………………………………………………………………32

Figure 3.2 Current environment at CNE site……………………………………………………………………..33

Figure 3.3 Average rainfall amounts for May to September in differing climate regions….34

Figure 3.4 Comparisons of rainfall amounts………………………………………………………………………37

Figure 3.5 Comparisons of snowfall amounts……………………………………………………………………38

Figure 3.6 Temperature comparisons………………………………………………………………………………..39

Figure 3.7 Site condition 1995…………………………………………………………………………………………..41

Figure 3.8 Regional geology map……………………………………………………………………………………….43

Figure 3.9 Local geology…………………………………………………………………………………………………….45

Figure 3.10 Regional surface drainage…………………………………………………………………………………51

Figure 3.11 Sample stations for the water quality and stream sediment surveys………………..56

Figure 3.12 Graphic representation of current environment……………………………………………….57

Figure 3.13 General graphic distribution for stream sample sites……………………………………….63

Figure 3.14 Stream Sediment geochemistry………………………………………………………………………..67

Figure 3.15 Location of First Nation communities……………………………………………………………….75

vii Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

1.0 INTRODUCTION

Commercial extraction and/or processing of a mineral is considered a Category 1 undertaking under the Clean Environment Act, Environmental Impact Assessment (EIA) Regulation (87-83) and the proponent of such a project is required to file a project registration document with Government of New Brunswick.

This EIA registration document has been prepared to initiate a determination review of the CNE Project located in Gloucester County approximately 45 km southwest of Bathurst, NB. The project is located approximately 15 km from the past producing Heath Steele Mine. (Figure 1.1) Any further information which may be required by the Province during the screening process will be provided immediately upon request.

Stratabound Minerals Corp. commissioned Wardrop, a Tetra Tech Company to produce a National Instrument 43-101 compliant (NI 43-101) Resource Estimate and Preliminary Economic Assessment (PEA) on the CNE project based on toll milling at The Xstrata Zinc facility, the Brunswick No. 12 mine and concentrator. The PEA is positive as a toll milling venture.

In 1989 the project was screened out under the environmental review process. Following the closure due to low metal prices, the site was reclaimed and following 4 years of water quality monitoring the site was deemed to have been stabilized.

A unique window of opportunity has presented itself due to a period of stable higher base and precious metal prices and the availability of the Brunswick No. 12 mill for toll milling. If the resource can be supplied to the facility in a timely manner it could help to extend the Brunswick No. 12 concentrator life and the local jobs that depend on its continued operation.

This registration document is strongly influenced by the results of the previous Environmental Impact Assessment (EIA) registration and screening and the results of the Bulk Sample, 2 phases of mining and the results of the reclamation program that spanned 1989 to the 1992 windup and closure. Water monitoring from the drainage away from the site continued until 1996 and showed no impact on the surrounding area. Additional studies relevant to this application include the recently completed Stratabound drilling program (2009-2010), the National Instrument 43-101 compliant Resource estimate and Preliminary Economic Assessment (PEA) completed by Tetra Tech (2011) and the 2008 Aquatic Baseline Survey undertaken by Jacques Whitford.

Stratabound Minerals Corp. has been the sole owner and operator of this project since 1988 and has always placed significant emphasis on environmental protection and employment in the surrounding communities.

A short window of opportunity has opened at the Brunswick 12 concentrator to receive and process copper, lead and zinc volcanogenic massive sulphide ore such as the CNE Deposit. It is

1 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

requested that permission to construct of the CNE project be granted by mid-summer 2012, in order to utilize the Brunswick No. 12 facility prior to closure.

1.1 Project Overview

Stratabound Minerals Corp. (Stratabound) is a publically traded Canadian mineral exploration and development Company that is proposing to resume production at the 100% owned CNE deposit. The CNE Deposit is located in northeastern New Brunswick (Figure 1.1). All mining and site development will take place on Mine Lease 251. A bulk sample and two phases of mining and toll milling at the former Heath Steele Mine and concentrator were completed by Stratabound between 1990 and 1992. A total of 39,622 dry tonnes were open pit mined. Mining activities were suspended due to a combination of proposed changes to the toll milling contract and low metal prices. As the shut down period was indefinite the closure and reclamation plan were initiated and completed in 1992. Water monitoring was continued until 2002 showing no negative impact on the surrounding environment. In December 1996, the New Brunswick Department of Environment allowed Stratabound to discontinue water monitoring activities at the CNE Mine (notification attached). Erosion control measures were continued on the affected surface area until native plant species re-inhabited and stabilized the area.

Through this registration document Stratabound plans to re-open the open pit mine and produce 331,000 tonnes of sulphide rich lead-zinc-copper-silver ore reported in the PEA report (McLaughlin, et al, 2011). Site preparation will include site clearing, construction of overburden and waste pads, re-location and construction of settling ponds, establishment of on-site office, security and First Aid facilities, lavatory facilities, diesel generator and upgrading site road and ramp infrastructure. Explosives will be supplied as necessary by the contract miner and will not be stored on site. Fuel for site operation will be supplied when necessary by the contract miner. All ore will be transported to the Brunswick #12 concentrator site where it will be crushed and processed. The project does not require a mine shaft, portal, concentrator or tailings management area.

Xstrata has provided Stratabound with a signed “letter of intent” stating the ore can be milled if it can be delivered prior to suspension of operations at the Brunswick #12 Concentrator (notification attached). The project represents a unique window of opportunity to extend the life of Brunswick No. 12 through toll milling. The tonnage at the CNE deposit will help extend the Brunswick concentrator life for up to 1.5 months.

Operation of the CNE mine is expected to contract 8 to 10 local professionals to monitor and supervise the site construction, mining, environmental monitoring and protection, processing

2 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

and health and safety components of the operation. Thirty to 40 people will undertake the work involved with completing the mining venture and reclaiming the site. Operation and reclamation will take approximately 1 year.

Capital expenditures will be in the order of $1,700,000 to develop the mine with operating expenditures in the order of $8,000,000 over an 8 to 12 month life of mine and mine closure program not including toll milling charges of approximately $10,000,000. This work program will be completely funded privately through arrangements made by Stratabound Minerals Corp. No federal or provincial funding will be sought.

Figure 1.1 - General project location map

(©2001 Her Majesty the Queen in Right of Canada, Natural Resources Canada) 3 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

1.2 Proponent

Stratabound Minerals Corp. is a publicly listed and Canadian registered base metal exploration company that is actively exploring and developing base metal (lead, zinc, copper and cobalt and gold) properties in New Brunswick and Quebec. Stratabound was incorporated in the Province of Alberta in 1986 as a private company and its shares have been publically traded since 1987.

Since 1986, the company has been financed by private placements of shares to individuals and investment funds, joint ventures, production revenue from profitable mining and petroleum operations and property option and sales.

The company has received recognition, awards and commendations from professional and government bodies for achievements in exploration, reclamation and reporting.

Name of Proponent Stratabound Minerals Corp.

Mailing Address of Proponent Box 72024 RPO Glenmore Landing S.W. Calgary, AB T2V 5H9 Tel: 403-258-3630 Fax: 403-259-4389

Mailing Address for EIA 1425 Miramichi Ave. Related Material Bathurst, NB E2A 1Y4 Tel: 506-545-6992

Chief Executive Officer Stan Stricker, P. Geo President and CEO [email protected]

Principal Contact Person for Purposes of EIA Derek Brown, P. Geo Tel: 506-453-1386 [email protected]

Kevin Vienneau Tel: 506-543-0016 [email protected]

4 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

1.3 Property Ownership

Stratabound Minerals Corp. is the 100% owner of the CNE Mine Lease (ML 251) which covers an area of approximately 59.3 hectares. The Honorable Bruce Northrup Minister of Natural Resources renewed the CNE Mine Lease (ML 251) for a second 20 year term effective August 23, 2011 to August 22, 2031.

1.4 Background

The Mineral exploration on the CNE property began in the 1950s following the discovery of the Heath Steele Mine. The CNE deposit was discovered by the South Bathurst Joint Venture in 1978 following three years of exploration in the area. Stratabound commenced mineral exploration on the CNE deposit and adjacent mineral claims under an option agreement in 1988. These programs included trenching, detailed drilling, metallurgy and flotation tests, a feasibility study, bulk sampling, 2 phases of mining and site closure and environmental monitoring until 1996. Several mineral exploration programs have been undertaken on the Mine Lease and surrounding claims since the shut down.

The South Bathurst Joint Venture (SBJV) reported the first direct exploration work in the area of the Captain North Extension (CNE) volcanogenic massive sulphide deposit in 1976, and was responsible for the discovery by drilling three holes into the deposit in 1978.

Through the SBJV, comprised of Metallgesellschaft Canada Ltd., Sabina Industries Ltd. and others, claims began to be accumulated starting in 1975. Initial field work was comprised of stream sediment geochemistry, wetland (organic bog samples), geological mapping, magnetometer survey, very low frequency electromagnetic (VLF) survey, horizontal loop electromagnetic (HLEM) survey, trenching, overburden geochemistry, Induced Polarization (IP) survey, 1570m of diamond drilling and a downhole Mise a la Masse (resistivity) survey.

Three holes (78-2, 78-5 and 78-12) intersected thicknesses up to 24.75 meters with 6.12% zinc, 2.36% lead and 2.61 ounces/ton silver and 10.05 meters with 10.83% zinc, 4.77% lead and 4.87 ounces/ton silver. In 1979 two more holes were drilled totaling 577.3 meters. The part of the claim block covering the mineralized horizon was converted to a Mining License in 1980 and the License was allowed to expire in 1983.

In September and October 1983 Billiton Canada Ltd. staked 27 claims over the CNE deposit and surrounding area. During the 1984 and 1985 field seasons Billiton completed line cutting,

5 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

ground gravity, total field proton magnetometer survey, IP survey and B-Horizon soil geochemistry. Billiton determined that there was potential for a southwesterly plunge and reserves may be expanded in that direction. Several other anomalous areas with potential were identified, however no further exploration was undertaken.

In 1987 Noranda optioned the CNE property including the CNE deposit. Nine shallow to intermediate depth drillholes were drilled for a total of 908.9 meters. Only 4 drillholes intersected significant mineralization. The most favorable interval was 19.5 in hole 87-3 having 4.81% zinc, 2.47% lead and 2.35 ounces/ton silver and It was also noted that there was a gold credit that was enriched in the higher grade intervals. In 1988, Noranda drilled 2 more holes totaling 470 meters. These holes do not appear to have been drilled deep enough to have penetrated the plane of the deposit.

In 1988 the property was optioned by Stratabound and remains under the company’s control and management. Eastmain Resources Inc. held an option on the deposit for a short period with the aim of getting the remainder of the deposit milled at the Heath Steele mill prior to closure, however the time frame to complete this task was too short and the deposit was returned to Stratabound.

Over the 23 years that Stratabound has had control of the CNE deposit there has been significant investment into the exploration, development and environment study and monitoring of the surrounding area. Over two periods of time the surrounding claims have been optioned to both Resources Inc. from 1991 to 1993 and Eastmain Resources Inc., from 2004 to 2006.

Stratabound and its exploration partners have spent at least $7 million over the past 23 years to fund exploration and development work on the CNE and the claims immediately surrounding the deposit. A significant investment has also been made on this stage of planning. The work on the CNE deposit alone has included 111 drillholes covering 10,236 meters, lithogeochemistry and core assaying, ground geophysical surveys, line cutting, geological mapping, metallurgical studies, environmental planning, trenching, road upgrading, bulk sampling, and 2 mining campaigns with concentrate produced at the Heath Steele concentrator located 22 kilometers away. A resource calculation, Feasibility Study, Mine plan and Environmental and Reclamation plan had been completed and the Mining Lease had been granted by 1990. The Resource Estimate included in the original Feasibility Study (Goodwin, 1990, Volume 1) was reported at 207,555 tonnes with an average grade of 2.76% lead, 7.38% zinc and 2.53 ounces per tonne of silver.

The bulk sample and production campaigns generated 39,622 tonnes with an average grade of 4.35% lead, 10.58% zinc and 139.5 grams/tonne silver. The closure and reclamation plan was 6 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

completed in summer of 1992 and water sampling to monitor the site was continued until 1996.

From December 2009 through February 2010 Stratabound completed 2890 meters of drilling in 19 diamond drillholes. Following this program Tetra Tech was contracted to complete an undated NI 43-101 compliant resource estimated and preliminary economic assessment for the CNE, Taylor Brook deposit and Captain deposits.

Table 1.1 is a reference summary of mineral exploration activities reported on the project area. (Mineral reports of work are available at New Brunswick Department of Natural Resources website, http://dnre-mrne.gnb.ca/ParisWeb/AssessmentReportSearch.aspx ).

Table 1.1 - Mineral reports of work for CNE Project

Assessment Year File No. Company Work Performed 1975 470427 McIntyre Mines Inc. known as McDonough I Claims magnetic geophysical survey 1976 470427 McIntyre Mines Inc. HLEM geophysical survey 1977 Metallgesellschaft / Sabina 35.3 km grid, geological Industries Ltd. mapping, nine trenches, detailed stream and swamp geochemical sampling, 403 soil samples, magnetic geophysical survey, MaxMin EM survey Horizontal shootback EM survey. 1978 Metallgesellschaft / Sabina four hundred and twenty six soil Industries Ltd. and till samples 35 lithogeochemical samples, VLF EM survey, 69 pits and trenches (mapping and sampling), 17 auger holes, established detailed 21.9 km grid, detailed VLF EM and magnetic surveys, limited IP survey, 16 diamond drillholes (2,194.3 m) and structural analysis and ore microscopy 1979 Metallgesellschaft / Sabina ten trenches (mapping and Industries Ltd. sampling), detailed IP survey, limited Mis-a-la-Masse survey, limited gravity survey, and two diamond drillholes (567.3 m). 1980 Metallgesellschaft / Sabina CNE property convert to Mining Industries Ltd. Lease 555 and given to Sabina under the Captain Option Agreement perimeter clause 1983 - - mining licence lapsed resulting in 7 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

a staking rush by Billiton and Noranda CNE deposit located on Billiton mineral claim. 1984 473061 Billiton Line cutting Gravity survey (5.5 line km) Magnetic survey (51.5 line km) IP survey 1124 soil samples

1985 473180 Billiton soil geochemistry (1,124 samples)

1985 473181 Billiton soil geochemistry (297 samples), 5.6 line km of line cutting, magnetic, VLF-EM, HEM geophysical surveys 1987 473410 Noranda Billiton claims expired. Restaked by Mr. N. Pitre. Noranda options the property from Mr. Pitre nine diamond drillholes completed (908.9 m) 1988 473600 Noranda two diamond drillholes completed (470.0 m) option agreement with Mr. Pitre discontinued Mr. Pitre options the property to Stratabound 1989 430750 Stratabound established 4.95 line km grid, five trenches (135 m), magnetic survey (4.95 line km), IP survey (2.3 ine km), 20 diamond drillholes (1,366 m. ore reserve calculations* two flotation tests, microscope analysis and density tests 1990 473892 Stratabound fourteen shallow BQ diamond drillholes (107 m); seven shallow NQ drillholes (35 m); one trench (40 m); preparation for bulk sample including road building (5 km); settling pond construction; water quality tests bench tests 1990 473925 Stratabound twenty six BQ diamond drillholes (1,966.7 m), resource estimate, flotation tests; lock cycle tests 1990 - Stratabound Feasibility study (Goodwin, 1990) outlined 207,555 t of probable ore* 1991 474044 Stratabound 11,100 dry tonne bulk sample; geotechnical studies

8 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

1991 474097 Stratabound VLF and magnetic geophysical surveys; silt sample and rock sample survey; all undertaken to outline additional favourable zone associated with the CNE deposit 1992 -1993 474381 Stratabound (Teck option) CNE and Captain optioned to Teck three trenches (173 m); Mag and VLF (17.0 line km), MaxMin survey (14.1 line km) and gravity survey (21.2 line km); four diamond drillholes (1,025 m) 1993 474430 Stratabound (Teck option) three diamond drillholes (1,273 m) and bore hole transitent EM survey 1995 474621 Stratabound two BQ diamond drillholes (191 m) 2009 476720 Stratabound grid establishment on the CNE group of claims, basal till sampling, and the completion of IP geophysical gradient survey and pole-dipole IP

1.5 Need For The Project

The project will provide well-paid jobs for local professionals and trades people directly and indirectly though the mine planning, construction, production and reclamation stages. There will also be a positive spin-off effect in the local economies though the various businesses that directly and indirectly service this venture’s equipment. The province will benefit though increased tax revenues and mining royalties generated by the project. Even though the proposed length of the project is short, up to 12 months including reclamation, the economic benefits are still quite significant. The potential to extend the Brunswick No. 12 concentrator life by toll milling the project’s ore and the possibility of smelting the lead concentrate locally in Belledune would also provide significant economic benefits to the local economy, as would using the port facility in Belledune to export the zinc, copper and bulk concentrates to other smelters in Canada and around the world.

Equipment, field office, vehicle rentals and the work force to undertake the mining and reclamation will benefit both Miramichi and Bathurst and their surrounding areas.

Because of the nature of open pit mining there is little opportunity to change significantly any of the planned infrastructure locations. The 1990s plan, which poses little risk of environmental damage based on our control and mitigation process (as shown by previous mining campaigns), has been slightly altered by re-locating the overburden dump, in order to further reduce the amount of required tree cutting and lessen the impact on the local forest environment.

9 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Based on the significant investment that Stratabound Minerals Corp. has made in the project as a publically listed company (SB:TSX), and New Brunswick’s most favorable status among mining jurisdictions, the completion of the mining program is expected by the Company’s shareholders. As long as the company meets the requirements to proceed under the current Acts and Regulations that govern its activities there is an expectation the CNE project will proceed.

Stratabound will benefit from the project through increased revenue, giving the company profits to re-invest into exploring the significant land package it currently holds in New Brunswick. This will continue to benefit the Province and local businesses while increasing the opportunity for Stratabound to discover new resources as well as expand on the current resources it already has outlined at the Captain and Taylor Brook. Stratabound has demonstrated its continued commitment to New Brunswick since 1986 through its property acquisition, mineral exploration programs and past mining operations.

10 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

1.6 Project Schedule

The project will commence upon EIA approval as well as other approvals that may be required.

Table 1.2 shows the proposed project schedule that is necessary to take advantage of the toll milling option that is available at Brunswick No. 12 Mine.

Table 1.2 - Preliminary schedule for CNE Project

Activity Proposed Schedule of Activities

Registration of EIA April 2012

Advertisement of public engagement April 2012

Community Engagement April 2012

Advertised public review period April-May 2012

Public Engagement report submission May 2012

Review by GNB April-May 2012

Issuance of Certificate of Determination July 2012

Site Preparation July 2012

Mining August-December 2012

Mine Closure and Reclamation December 2012 completion August 2013

11 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.0 PROJECT DESCRIPTION

2.1 Geographic Location and Access

The property is located at approximately 47⁰17’N and 65⁰53’ W in Gloucester County, northeastern New Brunswick. The western edge of the mine lease is cut by Northumberland County. Access to the property is via highway 430 southwest from Bathurst or northwest from Miramichi. The road distance is roughly 65 kilometers from each city. The property can be accessed easily via travelling on the old railway spur line east of the Heath Steele mine site or from the Tomogonops road south access off the Taylor Brook road. Refer to figure 2.1.

Figure 2.1 – CNE Deposit Location Map

12 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.2 Rehabilitation of Previously Registered Project

Upon optioning the CNE property in August 1988, Stratabound completed a continuous and extensive program of exploration and development designed to outline economic open-pit mineralization and demonstrate its suitability to custom milling. Stratabound successfully open pit mined a total of 39,622 dry tonnes of ore from the CNE deposit between 1990 and 1992. The ore was mined from an initial bulk sample and two separate mining campaigns. All of the ore was processed at the Noranda’s Heath Steele Mill.

The bulk sample project required technical submissions to and approvals from the New Brunswick department of Municipal Affairs and Environment, and the New Brunswick Department of Natural Resources and Energy. From September 4 to September 9, 1990 the 11,100 dry tonne bulk sample was custom milled by Heath Steele. The bulk sampling program proved to be an extremely valuable exercise, not only as a test of the metallurgy of the ore, but also of the blasting and mining techniques, slope stability and mining grade control using blast hole drilling powders to control loading and blending of ore to be shipped. During the bulk sample preparation, mining weather events tested the site environmental plans. This led to modest modifications in pond design and water control. As the pit was deepened to the second 5 metre level more acidic water was periodically encountered. Testing of pH on a regular basis with a handheld meter helped identify this and permit early action to neutralize this. The various factors affecting the bulk sample were important in adjusting environmental and water quality monitoring plans.

A resource estimate and feasibility study was completed on the CNE deposit by J.A. Goodwin and submitted on Dec 31, 1990. During the first half of 1991, surveys were completed for the Mining Lease and Crown Lands Lease applications. A certificate of Approval to Operate was issued by the Minister of Environment on August 1, 1991 under the New Brunswick Water Quality Regulation (some communication documents are included). Mining lease No. 251 was granted by the Minister of Natural Resources and Energy on August 23, 1991 in accordance with the New Brunswick Mining Act. The lease was renewed in 2011 for an additional 20 year term (2031).

Ore was mined and delivered in two mining campaigns following the negotiations of two 15,000 tonne custom milling contracts. Campaign 1 took place from August 22 to September 4 and campaign 2 took place from November 24 to December 18, 1991. 15,124 and 12,682 tonnes of ore were mined in each campaign respectively.

Between May and December, during preparations for production and the two mining campaigns, 13,413,000 imperial gallons of water were pumped from the pit to the holding 13 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

pond. The water was routinely treated with hydrated lime and occasionally coagulant, tested for suspended solids, pH and potential metal contaminants, and released upon meeting federal environmental standards. Roughly two tonnes of hydrated lime was used during the treatment process. Overflow samples were systematically analyzed for potential contaminants. No problems were encountered, as all waters released in the natural stream system routinely met the environmental guidelines.

Due to declining metal prices and the inability to obtain an acceptable milling contract, Stratabound was unable to deliver any additional ore from the CNE deposit to the Heath Steele Mill. As a result, after dewatering the pit in the spring, the reclamation plan was commenced in June, 1992. This mitigated potential environmental liability from pit overflow and acid generated from the waste pile, thus eliminating the need to continually pump and treat water. During pit reclamation, waste rock and low grade ore were placed back in the pit with the bulk sample tailings and treatment pond sludges and covered with a four meter layer of mixed stumps and clay to reduce oxidation. The overburden was then replaced and the site contoured and seeded. Water monitoring of the drainage away from the pit area was continued for 10 years to document and verify the end results of the closure plan.

The company was commended by officials of Environment Canada, the New Brunswick Department of the Environment, and the Province’s Department of Natural Resources and Energy for the high quality of its reclamation program.

It is Stratabound’s intention to once again mine and toll mill the CNE deposit in the same manner as outlined in the previous feasibility study and recent PEA. Stratabound plans to use past experience and incorporate it into the new plan mine plan which will help ensure that activities are performed to the same high level of professional standard. It is Stratabound’s intention to identify and mitigate aspects of the mining program that may pose adverse environmental impacts during mining and reclamation.

For comparison purposes, figure 2.2 shows the 2012 mine plan versus the 1990 site plan. The 1990 and 2012 plans are almost the same with the exception of the settling ponds locations (moved 50m to the west). The open pit, overburden pad and waste pad are all in the same areas. The footprint required for the operation of the mine is almost identical to the original proposal and much of the infrastructure is already in place.

14 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 2.2 – Site Plan comparison from 1990 to revised plan for 2012. Reclamation Plan is the same for both cases. 15 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.3 Resources and Mine Life

Tetra Tech Wardrop completed an NI 43-101 compliant resource estimate for the CNE deposit effective May 12, 2011. The mineral resource for the CNE deposit is categorized as having Measured, Indicated and Inferred Resources, based on historical drilling and limited quality assurance/quality control data, economic parameters, and on the drill hole sample support. Zinc, lead, silver and gold, and copper and cobalt sulphide mineral assemblages occur in two different, yet overlapping volumes within the CNE deposit. Thus a zinc equivalent percentage resource estimation was proposed to combine all the metals for reporting.

The CNE resource statement was reported at a 3% zinc equivalent cut-off. Based on the mine optimization and design work completed in the subsequent Preliminary Economic Assessment, it was determined that the mined resource from the CNE deposit would best fit with a 1.5% ZnEQ cut-off. The resource estimate is presented in table 2.1.

Table 2.1 – CNE Resource Estimate

CNE Resource Estimate at 1.5% ZnEQ Cut-off Tonnes Grade Zn (%) Pb (%) Cu (%) Ag (g/t) Measured Resource Estimate 37,710 5.77 1.91 0.06 63.91 Indicated Resource Estimate 277,044 4.54 1.86 0.11 60.4 Inferred Resource Estimate 16,517 2.74 1.2 0.06 37.5

Total 331,271

In order to successfully take advantage of the Brunswick No. 12 toll milling option and favorable summer/fall weather, the life of mine will have to be in the 4-5 month range. That will require an average production rate of 3000 to 3600 tonnes a day to mine the approximately 330 000 tonnes of measured, indicated and inferred resources at a 1.5% zinc equivalent cut-off.

16 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.4 Mining

2.4.1 Mine Development

Mine development at the CNE site will follow the original mining plan described in the previous Application to Construct (Phinney, 1990) and the Feasibility Study (Goodwin, 1990) with the exception of the pond and overburden pad placements. The current Resource Estimate and development plan proposed by Tetra Tech (McLaughlin, et al., 2011) requires the current pond array to be moved up slope and therefore the waste stockpile had to be moved as well. The overburden stockpile is proposed to be setup before the crest of the hill in a clear cut to avoid additional forest clearing (Figure 2.2). The overburden pad will have its own settling pond where treatment for turbidity will take place prior to release. The soil profile material (podzols) including the sumps and other organic material will be stored separately at waste dump pad for reclamation purposes following final suspension of activities. This will require site clearing, construction of overburden and waste pads and reconstruction of the mine de- watering settling ponds. Ditches will be constructed on the site to direct clean surface runoff water away from the site and re-direct contaminated water from roads, pit and waste pad to the treatment ponds. Refer to figure 2.3 CNE Site Plan.

The construction and operation of the mine will be executed through a contract mining company.

Figure 2.3 – CNE Site Plan 17 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.4.2 Mine Methods and Open Pit Parameters

Open pit mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow. The term is used to differentiate this form of mining from other extraction techniques that require tunneling into the earth. The overall shape and layout of the CNE deposit make it highly amenable to open pit mining methods. The ultimate pit design was determined by various economic and production factors. The overall stripping ratio is 2.95 t/t (waste/resource). A total of 958,684 t of waste material will be moved over the one- year mine life. Refer to figure 2.4 and 2.5 Ultimate Pit Design and 3D Rendered Image of CNE Pit Design and Resource Body.

Tetra Tech utilized an overall pit slope angle of 20⁰ in overburden and 45⁰ otherwise. The use of these angles is based on conservative estimates from previous experience. As mining progresses and more geotechnical data becomes available, pit slopes could potentially steepen reducing the overall stripping ratio.

Pit design criteria for the CNE includes:

Bench Height 8 m

Face Angle 80⁰

Benching Double

Safety Berm Width 12 m

Overall Pit Slope 45⁰

(without inclusion of ramp)

Ramp width:

Double Lane 15m

In pit ramps are designed with an overall ramp width of 15 m for double lane traffic with a maximum gradient of 10%. A 2.6 m wide and 0.87 m high safety berm and internal 1.5 m wide water ditch will be provided for two lane traffic to accommodate 36 tonne haul trucks.

18 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Based on all of the different parameters used in the PEA, the ultimate pit design for the CNE results in the following:

Item Size Pit Top Elevation 171m Pit Bottom Elevation 100m Pit Depth 71m Volume of Pit 490,500 m^3 Area of Pit Top 30,480 m^2 Perimeter at the Top of the Pit 850m Length from East to West 220m Length From North to South 175m

Figure 2.4 Ultimate CNE Pit Design

19 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 2.5 CNE and 3D Rendered Image of CNE Pit Design and Resource Body

20 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.4.3 Mine Equipment

The mining operations will be performed by a mining contractor who would be supplying the necessary equipment. For a project this size, a typical mining equipment fleet would include the following equipment:

Equipment Fleet Size Units Haul Trucks 36 tonne 5 Shovels 2.3 m^3 1 Loader 3.0m^3 1 Drills 6.35 cm 3 Track Dozers 60 KW 3 Graders 115 KW 1 Water Truck 50 ton 1 Backhoe Excavator 1.5 m^3 1 Service Truck 1,800 kg gvw 1 0.5 ton crew Light Vehicles (Pick-up Trucks) cab 3

2.4.4 Production Rate and Schedule

Stratabound is targeting a production rate of 3000 tonnes per day starting in August 2012 and continuing through the fall of 2012. Total ore mined will be approximately 325,000 tonnes with an average grade of 4.74% Zn, 1.76% Pb and 58 g/t Ag from the measured, indicated and inferred resource.

2.5 Project Infrastructure

Surface infrastructure required to support the mine development and operation may include: waste rock and overburden storage pads; settling ponds for pit waste water, office/security trailer, storage facilities for explosives, fuel storage as required and site and haul road construction and upgrades. See regional map (Figure 2.3) for planned work locations.

21 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.5.1 Ore Crushing, Storage and Loading

The mined ore will be loaded into haul trucks in the pit area. The loaded haul trucks will transport the ore to the Brunswick No. 12 where is will be dumped on an existing storage pad and crushed on site prior to the milling process.

2.5.2 Waste Rock Storage

The temporary waste rock storage pad will be constructed up slope from the pit area and treatment pond array. The waste rock storage pad will provide temporary storage of waste rock generated during the mining process. The waste rock generated during the mining process will be dumped on the pad from haul trucks and leveled with dozers. At the end of the mine life, the waste rock will be put back into the pit. Previous examination of the overburden cap on the CNE sulphide deposit indicates there is from 39% to 63% less than 0.08 millimeter material, allowing a relatively impervious layer when dry compacted (Dickinson, 1989). This compacted clay material was shown to be successful in the construction of the original treatment ponds. Re-testing will be required to certify the material for pad construction and if suitable will be used to construct the temporary waste pad. (If suitable material cannot be found proximal to the site, a liner will be used to achieve the desired water control and containment.) The impervious pad will be constructed of compacted clay that will prevent seepage into existing water table. Ditches will be constructed around the waste pad to collect water runoff which will be directed to the settling ponds. The treatment ponds will be moved to where the overburden stockpile was previously located after modifying the original mining plan. The waste pad and stockpile will be placed immediately up slope from the treatment ponds.

2.5.3 Overburden Storage

The overburden pad will provide temporary storage for the overburden that lies within the ultimate pit dimensions. The overburden will be dumped from haul trucks and leveled with dozers. At the end of the mine life the overburden will be removed from this site, returned to pit and compacted to make an impervious cap for the Waste rock stockpile already compacted into the bottom of the pit. If deemed suitable for construction of the waste pad and settling 22 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

ponds, most of the overburden material will be used thus reducing the size of the overburden stockpile. Stratabound is proposing to put the overburden material on a recently deforested area of the mining lease thus reducing the need to clear more forest. Refer to figure 2.3 CNE Site Plan

2.5.4 Storage Facilities

Explosives

Daily explosives and detonators will be stored on surface in an explosive magazine which is owned and operated by a licensed contractor in accordance with all applicable regulations.

Fuel

A fuel truck will deliver fuel to the site or diesel fuel and gasoline will be stored on-site in double-walled tanks that meet provincial petroleum storage requirements. The fuel tank or fuel truck will be owned and operated by the mining contractor.

2.5.5 Site Roads

Site roads for the CNE project are already in place due to the previous mining campaign. If any new site roads are required, they will follow the New Brunswick Guidelines for Roads and Watercourse Crossing (BNR 2004). Design drawings will be provided to the appropriate agencies as the project progresses. If upgrading of existing site roads is required to facilitate the haul traffic, Stratabound will consult with the New Brunswick Department of Natural Resources with respect to identification, review and approval of the location(s) of suitable aggregate sources and acquire a quarry Permit prior to any construction work.

2.5.6 Site Security

There will be a single access point to the CNE site. Site security will include a lockable gate and signage around the open pit area. If the site remains open for the winter, safety precautions will be taken to prevent accidental entry into the pit from all sides.

23 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.6 Site Preparation

Pre-mining site preparation will require assessment of existing road conditions to allow for road upgrading where required. Pre-disturbance water sampling at the proposed monitoring site to establish the current baseline conditions. Tree clearing in the waste pad area, ultimate extent of the pit area and construction of a better located ramp for the expanded pit area. All merchantable wood will be bought to a local mill for processing and stumpage fees paid. The existing settling ponds will be removed and new material will be used to construct the re- located ponds up slope from the pit area (see Figure 2.3).

2.7 Water Management and Treatment

The CNE site is gently sloped with a 2-5% gradient, with all current and proposed facilities located upslope from the open pit. Collection ditches will re-direct water from the waste pad to the settling ponds. The settling ponds are located immediately upslope of the pit. In the unlikely event of a breach or overflow, the water will be contained in the pit. Runoff from the overburden storage area, a chemically inert feature, will be directed through ditches to a small sedimentation pond to remove any suspended solids before discharge into an existing drainage system. A system of ditches will direct clean surface and shallow ground waters away from the site and into existing drainage. Refer figure 2.3 to the CNE Site Plan.

The existing water treatment system (figure 2.6) was sufficient for the previous mining campaigns and worked without incident. It was designed to monitor and maintain the mine water turbidity, metals concentrations and pH at natural levels through gravity settling and addition of coagulants and hydrated lime. Treated water was then processed though a polishing pond before discharge into the environment. All water released from the system surpassed the environmental guidelines. In addition to water generated from the pit, the settling ponds were able to cope with an extreme rainstorm in which over 7 inches of rain fell in a few hours. The original drainage control and treatment system was designed for a 25 year return-24 hour duration storm runoff.

Due to the new proposed ultimate pit limit, the settling ponds will have to be moved approximately 50 meters up slope to the west. The polishing pond portion of the existing settling ponds will remain in the same location. The same system design is proposed for this round of mining. Refer to figure 2.3 CNE Site Plan.

As in the previous mining campaigns, Stratabound plans to establish sampling stations in the surrounding drainages and regularly test the water quality. Pit water will also be regularly

24 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

analyzed to determine total acidity. This water quality monitoring program will continue to operate during active mining, any shutdown periods and beyond the reclamation phase in the same manner as the previous mining campaigns.

Figure 2.6 – Existing Water Treatment System 25 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

2.7.1 Solid Waste

Solid waste will be transported to the Nepisiguit Chaleur Solid Waste Commission located in Allardville on a regular basis.

2.7.2 Sanitary Waste

Portable toilets will be supplied by a licensed contractor. Sanitary waste from the portable toilets will be disposed of by the contractor in accordance with provincial regulations. No permanent sewage system is required on site.

2.7.3 Hazardous Waste

Hazardous wastes will be stored and disposed of by a licensed contractor in accordance with regulations.

2.8 Site Access and Ore Transport

The existing Spurline road and Route #430 will be used for the main access from the CNE mine to the Brunswick No. 12 mine/processing facilities. A secondary road connects the CNE site to the Spurline Road (approximately 1 km). The CNE Site is located approximately 15 km east of the Heath Steele Mine site. The Spurline Road was originally constructed as a rail line and used to haul concentrate and supplies to the Heath Steele Mine. There are no bridges on the secondary road and Spurline portion of the haul route, although there are a number of culverts built into the road bed. The largest is the crossing of the Tomogonops river. Currently the Spurline and secondary roads are used and maintained by the Fornebu Lumber Company. Route #430 is owned and maintained by the Province. Stratabound plans to initiate discussions with Fornebu and the Province regarding the use and maintenance of the roads.

During production, ore will be hauled from CNE to Brunswick No. 12 using A-trail trailers and B- trail tankers. A total of 50 to 100 round trips per day will be required to maintain a mining rate of 1800 to 3600 tonnes per day. Stratabound is aware of the gross vehicle weight on Route 430 and should any overweight loads be required, Stratabound will apply for the required permits.

Route 430 was originally put through to allow ore from the Wedge Mine (mid 1960’s) to be toll milled at the Heath Steele Concentrator. It has since been used continually for hauling trees to

26 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

mills in Miramichi and Bathurst and to haul concentrate from Heath Steele mine to Belledune, New Brunswick for lead smelting and exporting zinc, copper and bulk concentrates to other smelters in Canada and around the world.

Trevali Mining Corp is currently hauling up to 2000 tonnes a day of ore from its Halfmile Lake Mine to the Brunswick No. 12 mine. Trevali’s haul route originates approximately 20 km west of Route 430 off of the Outer Brook Road just north of the past producing Heath Steele Mine and continues on the same route Stratabound is proposing.

It is noted that there may be a temporary road closure period during the transition period between spring thaw and commencement of summer driving conditions.

2.9 Power Supply and Distribution

There is no access to the NB Power distribution network at the CNE site. The nearest power is 15 km to the west at the previous Heath Steele Mine site and it is not feasible or necessary to bring it to the CNE site. A diesel generator will supply power for the office/security trailer. All other pumps and equipment on the site will be self-powered (diesel or gasoline).

2.10 Communication Systems

External communications will be via cell phones and satellite phones. Cell phones on the Bell network work at the mine site.

2.11 Project Emissions

Land

No emissions to the land are planned for the CNE project. Waste material will be stored on an impervious pad (compacted clay or HDPE liner). Waste rock and overburden will be put back in the pit at the end of the mine life.

27 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Air

Project emissions to the air will originate from equipment and generator exhausts. Hauling of ore will generate dust when trucking is taking place. Blasting of the ore and waste will generate dust and residual explosive gases.

Water

All mine water and waste dump runoff water will be directed to the settling ponds. Water will be treated for removal of suspended solids, metals and pH before discharge. Uncontaminated runoff water will be directed away from the site.

2.12 Emergency Response

An emergency response plan will be developed according to best practices guide lines for the mining industry and all contractors and employees working at the site or crushing facility will undergo orientation training prior to startup. Contact numbers and procedures to follow will be easily available to people working on the site at all times. The detailed responses to be followed for accidents, malfunction and other unplanned events will be developed and instituted prior to construction.

2.13 Health and Safety

A health and safety program will be developed and instituted prior to construction.

2.14 Decommissioning and Reclamation

2.14.1 Mine Pit

The overall reclamation process will follow the same process as the previous mining campaigns. The volume of the pit below the rim of the bedrock zone will be adequate to contain the total volume of waste rock. Thus, all of the waste rock will be returned into the pit, compacted, then at least 5 meters of removed overburden, when meeting the required moisture content specifications, will be compacted over the waste rock. If the pit area is not filled adequately to prevent ponding of water it may be necessary to transport sufficient material to the pit to

28 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

prevent the creation of a pond. The filled area will then be contoured to ensure runoff away from the filled pit, covered with the stockpiled overburden and seeded.

2.14.2 Surface Facilities

All surface facilities will be removed from the site.

2.14.3 Waste and Overburden Pads

After the waste rock and overburden have been moved back to the pit area, the waste pad will be placed back into the pit forming a preliminary cover for the waste rock. Then the overburden and waste pads sites will be contoured, covered with topsoil and seeded to promote the return to their natural state.

2.14.4 Settling Ponds

All sludges collected in the sludge and polishing ponds will be placed in the bottom of the pit, prior to the infilling with waste rock and till. The various ponds will however, remain available and in operation until the stabilization of the site has been confirmed by monitoring. Thereafter, the ponds will be filled with impermeable till, contoured and covered with topsoil.

29 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

3.0 EXISTING ENVIROMENT

The existing environment for the CNE Project area is controlled by for main aspects: 1) the physical environment, 2) terrestrial environment, 3) aquatic environment and 4) the human environment. The following sections will present a picture of the condition of the environment at this point in time and some aspects of how it has been in the recent past as it pertains to this undertaking.

3.1 Physical Environment

3.1.1 Physiography

New Brunswick lies on the northern end of the Appalachian Mountain Range that stretches along the Atlantic coast of Eastern North America. The landforms of this Province have been molded into their current form by the weathering actions of erosion and glaciation over the past 1.5 million years. The landforms are comprised or a semi-circular arc of highland surrounding the New Brunswick Lowlands (Figure 3.1).

The Miramichi Highlands are sandwiched between the New Brunswick Lowlands and the Chaleur Uplands and stretch from the Saint John River in the southwest to the Bay of Chaleur in the Northeast. Some of the most rugged topography is contained in the land form with Mount Carleton marking the highest elevation and deep cut river valleys such as the Nepisiguit River gouge a path to the Bay of Chaleur. The CNE Deposit lies within the Eastern Miramichi Highlands sub-region. This area forms the gradual increasing elevation between the higher elevations of the Northern Miramichi Highlands and the New Brunswick Lowlands region.

The elevation increase is due to the increasing amount of resistive volcanic beds that form parts of the rich volcanogenic massive sulphide deposits that have made the Bathurst Mining Camp a world class mineral exploration area. The current physical environment is pictured in Figure 3.2 (photo base is from “Google Earth (2006)”). There are gently rolling hills that drop away from the site to the east. The area is covered by up to at least 40% clear cuts and plantations in an early stage of re-growth. The forested area comprises up to approximately 40% of the surface area. The remainder is comprised of wetlands (designated in white on Figure 3.2). The vegetation is estimated at 56% coniferous and 44% deciduous trees and bushes that are locally mature. The maximum elevation is 190 meters (MSL) and the wetland valleys to the east drop gently off to 155 meters.

30 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Bedrock exposure in the areas is locally up to 20% but typically less than 5% and is controlled by local elevation changes caused by erosional features such as fault controlled stream and river valleys and glacial contouring of the highland surfaces. Erosion and weathering of the bedrock produces waters and sediment that when analyzed can point the mineral explorer toward a mineral deposit.

The general slope of the property is 4% to the south and southeast. The steepest slopes are 10% to the southeast going from north of the deposit down to the cedar swamp east of the deposit. The general grade of the proposed waste dump site is 2% to the south with a shallow tilt to the south west. The Overburden Pad site sits on a 2.5% slope south southeast.

The project is situated on the 59.3 hectare Mining Lease 251. The total area that could be directly affected including quarry rock and overburden is 33.3 hectares. This area is located between the Portage, Tomogonops and Northwest Miramichi Rivers. Surface runoff from the site is controlled by 2 tertiary streams and 1 secondary unnamed stream that eventually empty into the Portage River approximately 2.9 kilometers east of the pit area (Figure 3.2). The site drainage is south along the access road from the Spurline Road, southeast from the cedar swamp east of the pit and east across the north side of the pit where the outlet of the final settling pond discharges.

31 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 3.1 - Map of New Brunswick landforms

(Bostock, 1970; modified by Rampton et al., 1984)

32 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 3.2 - Current environment at the CNE site

(Line map features and contour lines have been generated from map layers downloaded from Service New Brunswick, Base Map is from Google Earth)

There is shallow topography from the edge of the working area to approximately 1 kilometre from the discharge point west to where the stream bed begins to drop more in elevation and forms a more prominent stream valley. The areas in white on the map show what has been identified as wetland from the Service New Brunswick website.

3.1.2 Climate

The landform map (Figure 3.1) shows the areas of higher and lower elevations in New Brunswick. The CNE project area is on the eastern flank of the Miramichi Highlands within the Eastern Miramichi Highlands Subgroup. The higher elevations drop of gradually to the east and 33 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

southeast as shown by the elevation drop from the Little River Mine weather station at Heath Steele Mines of 341.4 metres and the CNE site of 164 metres.

Topography and climate are closely related. A comparison of Figure 3.1 and Figure 3.3 show that higher elevations are prone to more precipitation and typically cooler temperatures and a shorter growing season.

Figure 3. 3 – Average rainfall amounts for May to September in differing climate regions.

(Base map from Colpitts et.al, 1995) 34 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

While investigating the local climate, five weather stations were checked. These were Miramichi A, Bathurst, Nepisiguit Falls, Little River Mine (Heath Steele Mines) and South Tetagouche (Figure 2.2). The only weather station that recorded wind direction was Miramichi and that data will be used for generally for this location. It is expected that the wind information will vary slightly from the CNE site because of the coastal location.

The precipitation data for the Little River Mine weather station and Nepisiguit Falls weather station are fairly representative of the expected weather conditions at the CNE site and are located approximately 13 kilometers to the west and north respectively. The Nepisiguit Falls weather station, although within the Nepisiguit River valley, is at relatively the same elevation and is within the same climate and physiographic region of New Brunswick. This weather station also has properly calculated 30 year average results for weather statistical analysis. The period readily available from Environment Canada covers 1971 to 2000. The World Meteorological Organization (WMO) recommends that the climate normals be recalculated every at the end of each decade. The time span stated above covers the operating period of the previous CNE mining operation (June, 1989 to august, 1992). The raw weather data from the Nepisiguit Falls weather station covering the original production period and the calculated weather normals can be found in Appendix A.

Environment Canada weather data can be downloaded from: http://climate.weatheroffice.gc.ca/climate_normals/index_e.html

Data reported from the Miramichi weather station indicate average wind speeds from 11 kilometers per hour to 16 kilometers per hour with least windy conditions from June to September and gradually increasing from October and peaking in March before returning to summer conditions. The summer to early fall directions are typically south to southwest and the winter winds are typically west. Maximum hourly wind speeds occur between November and June and are usually lower in the summer months.

Maximum wind gust speeds range from 89 kilometers/hour and 143 kilometers/hour and are typically more intense from August to December. These intense wind gusts tend to come from the west, southwest and northeast.

The following three graphic representations compare the 30 year normal data from Environment Canada with the actual monthly data collected at the Nepisiguit Falls weather station during the periods of operation from the 1990 bulk sample through the 2 mining Campaigns in 1991. Figure 3.4 shows that during the periods of production there was significantly above normal rainfall throughout this time frame. Although it caused some disruption in production to repair roads and dewater the pit, the plan for controlling site runoff and mine water was sufficient to protect the surrounding environment. 35 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 3.5 shows that snowfalls were very somewhat around the norm. Figure 3.6 illustrates what could indicate abnormal trends. Although the mean temperatures were very normal the maximum and minimum trend lines are significantly and consistently above and below the respective 30 year average trends. This probably represents cooler nights and warmer days. The data for daily temperatures ranges for the Nepisiguit Falls weather station for the production periods are included in Appendix A.

36 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Comparison of Rainfall Amounts (Previous Operation to 30 Year Normals) 250

200

150

mm 100

50

0

Jul-90 Jul-91 Jul-92

Jan-91 Jan-92

Jun-90 Jun-91 Jun-92

Oct-91 Oct-90 Oct-92

Apr-91 Apr-92

Sep-92 Sep-90 Feb-91 Sep-91 Feb-92

Dec-90 Dec-91 Dec-92

Aug-90 Aug-91 Aug-92

Nov-90 Nov-91 Nov-92

Mar-91 Mar-92

May-90 May-91 May-92

May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 90 90 90 90 90 90 90 90 91 91 91 91 91 91 91 91 91 91 91 91 92 92 92 92 92 92 92 92 92 92 92 92 Precip(month) 94 101 174 187 42.8 152 135 112 71.2 10 104 39 78.7 58 26.5 175 126 112 51.1 62 101 117 41.6 50 17.5 128 119 133 30.9 192 46 52 Preci(30yr) 89.8 82.5 103 92.3 75.6 96.6 63 33.6 20.6 12.1 25.2 55.8 89.8 82.5 103 92.3 75.6 96.6 63 33.6 20.6 12.1 25.2 55.8 89.8 82.5 103 92.3 75.6 96.6 63 33.6

Figure 3.4 - Comparison of rainfall amounts

37 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Comparison of Snowfall Amounts (Previous Opertion to 30 Year Normals) 140

120

100

80

cm 60

40

20

0

Jul-90 Jul-91 Jul-92

Jan-91 Jan-92

Jun-90 Jun-91 Jun-92

Oct-90 Oct-91 Oct-92

Apr-91 Apr-92

Sep-90 Feb-91 Sep-91 Feb-92 Sep-92

Dec-90 Dec-91 Dec-92

Aug-90 Aug-91 Aug-92

Nov-90 Nov-91 Nov-92

Mar-91 Mar-92

May-90 May-91 May-92

May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 90 90 90 90 90 90 90 90 91 91 91 91 91 91 91 91 91 91 91 91 92 92 92 92 92 92 92 92 92 92 92 92 Snow(yr) 0 0 0 0 0 0 40 57 71.2 10 86 9 0 0 0 0 0 0 25 51 35.6 117 8 34 6 0 0 0 0 0 23 43 Snow(30yr) 2.2 0 0 0 0 2.2 25.2 62.1 65.8 46.3 54.5 24.7 2.2 0 0 0 0 2.2 25.2 62.1 65.8 46.3 54.5 24.7 2.2 0 0 0 0 2.2 25.2 62.1

Figure 3.5 - Comparison of snowfall amounts.

38 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

50 Temperature Comparison (Previous Operation to 30 year Normals) 40

30

20

C 10

0

Degrees

Jul-90 Jul-91 Jul-92

Jan-92 Jan-91

Jun-90 Jun-91 Jun-92

Oct-90 Oct-91 Oct-92

Apr-91 Apr-92

Sep-90 Feb-91 Sep-91 Feb-92 Sep-92

Dec-90 Dec-91 Dec-92

Aug-91 Aug-92

-10 Aug-90

Nov-90 Nov-91 Nov-92

Mar-91 Mar-92

May-90 May-91 May-92

-20

-30

-40 May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 90 90 90 90 90 90 90 90 91 91 91 91 91 91 91 91 91 91 91 91 92 92 92 92 92 92 92 92 92 92 92 92 Tmean(Month) 7.6 16.2 18.9 19.7 12 7.7 0.2 -6.3 -15 -11 -2.6 2.8 10.6 16.1 18.8 18.5 11.8 7.6 1.1 -9.4 -11 -12 -6.6 1.5 10.3 15 15.6 16.7 13.9 5.6 -2.3 -7.1 Tmax (Month) 26 30 32.5 37.5 24.5 21.5 9.5 8 -0.5 7.5 12 19 26.5 31 34 31.5 26 19 13 9 8.5 1 10 17 35.5 28 27.5 29 25 20.5 13 7.5 Tmin(Yr) -2 -0.5 5 5.5 1.5 -6.5 -9 -32 -36 -31 -20 -14 -3 4 7 5 -1 -2.5 -10 -25 -26 -28 -26 -13 -4 0.5 4.5 6.5 -1 -5.5 -17 -24 Tave(30yr) 9.6 15.4 18.6 17.6 12.5 6.3 -0.2 -7.9 -12 -10 -4.2 2.5 9.6 15.4 18.6 17.6 12.5 6.3 -0.2 -7.9 -12 -10 -4.2 2.5 9.6 15.4 18.6 17.6 12.5 6.3 -0.2 -7.9 Tmax(30yr) 15.8 21.7 24.5 23.4 18.2 11.1 3.7 -2.9 -5.9 -4 1.7 7.6 15.8 21.7 24.5 23.4 18.2 11.1 3.7 -2.9 -5.9 -4 1.7 7.6 15.8 21.7 24.5 23.4 18.2 11.1 3.7 -2.9 Tmin(30yr) 3.4 9.2 12.6 11.6 6.8 1.4 -4.2 -13 -17 -17 -10 -2.7 3.4 9.2 12.6 11.6 6.8 1.4 -4.2 -13 -17 -17 -10 -2.7 3.4 9.2 12.6 11.6 6.8 1.4 -4.2 -13

Figure 3.6 - Temperature comparison

39 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figures 3.4 and 3.6 illustrate how potentially erratic or extreme weather conditions over short periods have directly affected the infrastructure at the CNE open pit mine. This demonstrates that the infrastructure in place and the previous and current mine plans responded well to an extreme range of climate conditions while production was taking place on the project.

3.1.3 Soil and Overburden

The main soils that typically form in New Brunswick are Podzol. This is variable layered from the surface as a black organic rich layer, over a leached grey to white layer over a red-brown to orange to yellowish layer. These would be typically named the humus, A horizon, B horizon and C horizon. The C horizon and possibly the B horizon could be contained within the regolith if there are abundant bedrock fragments within. The Podzols in the Bathurst Mining Camp are mainly Ferro-Humic and Humo-Ferric (Canadian System of Soil Classification, 3 Edition) http://sis.agr.gc.ca/pls/meta/web_taxonomy?order3=PZ&ggroup3=FHP .

The overburden covering the main volcanogenic massive sulphide deposit is comprised of a silty sand /sandy silt with minor large fragments of local bedrock. Testing of the material (Dickinson, 1989 Report attached) has indicated that with drying and sufficient compaction the material will form an impermeable layer for treatment pond construction (source area Figure 3.7 has horizontal Hatch). This was successfully completed with the original ponds now visible in aerial photograph presented in Figure 3.7 (UTM coordinated in NAD 83, Zone 20). Directly south of the ponds is deposit of sand and gravel (source area Figure 3.7 red diagonal hatch) with a limited clay matrix. The small quarry was started to get road surface material to complete construction of the haul road to the Boudreau Road to the northwest.

40 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 3. 7 – Site Condition in 1995. Airphoto number 1995-508-1300

41 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

3.1.4 Geology Regional

Taken from Goodfellow (2007)

BMC deposits formed in a sediment-covered back-arc continental rift, referred to as the Tetagouche-Exploits back-arc basin, during periods when the basin was stratified with a lower anoxic water-column. The basin was subsequently intensely deformed and metamorphosed during multiple collisional events related to east-dipping subduction of the basin.

Four hydrothermal events spanning 12 to 14 million years have been recognized; the Chester (478 Ma), Caribou (472-470 Ma), Brunswick (469- 468 Ma), and Stratmat (467- 465 Ma) horizons. The Stratmat and Brunswick horizons both occur in the Tetagouche Group, whereas the Caribou and Chester horizons are hosted by the California Lake and Sheephouse Brook groups, respectively.

…The Bathurst Mining Camp has been subdivided into four approximately coeval groups of volcanic and sedimentary rocks (Tetagouche, California Lake, Sheephouse Brook and Fournier groups)

This portion of the report was taken from Davies et al 1985; van Staal and Langton 1990; and Daigle et.al. 2009.

The BMC is underlain by rocks of Ordovician age that are known as the Tetagouche Group and form part of the Miramichi Zone of northern New Brunswick. The Tetagouche Group is composed primarily of dacitic to rhyolitic volcanic rocks that have been subdivided into aphyric/feldspar-phyric rhyolites of the Flat Landing Brook Formation and quartz-feldspar porphyries of the Nepisiguit Falls Formation. These units are disconformably underlain by quartz-wackes and pelites of the Miramichi Group. Thin-bedded feldspathic wacke/shale and alkali basalts of the Boucher Brook Formation conformably overlie the felsic package. The Tetagouche Group rocks have been metamorphosed to the greenschist facies.

The Ordovician rocks of the BMC have undergone a complex history of polyphase folding and faulting. At least five deformational events are recognized based on overprinting relationships. D1 is evidenced by a dominant, layering parallel foliation which is locally mylonitic and is interpreted to represent progressive deformation associated with thrusting. The D1 structures are refolded by F2 folds into tight structures defining flat and steep belts. These are refolded again by open recumbent F3 folds. F4 and F5 folds and kinks at various scales overprint and refold the initial three phases. This deformation can be attributed to orogenic movements in the Appalachians during the Taconic and Acadian orogenies.

42 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Regional geology of the BMC is illustrated in Figure 3.8.

Figure 3.8 - Regional Geology Map

3.1.5 Geology Project

CNE deposit description, taken from “CNE and Captain Properties, Bathurst Mining Camp”, S.R. McCutcheon, P. Geo., August, 2010:

The deposit is largely within crystal tuff of the Nepisiguit Falls (NF) Formation, as indicated by ghost textures within the host rocks (Figure 3.9). Altered ash tuff and aphyric rhyolite, both assigned to the Flat Landing Brook (FLB) Formation, constitute the structural hanging wall and footwall to the deposit. The deposit occurs in the downward-facing limb of a recumbent F1 anticline that is refolded by a westward-facing, northerly trending F2 synform containing minor folds

43 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

with wavelengths of approximately 50 m; these folds plunge shallowly to the north, i.e. the deposit ‘daylights’ to the south. The mineralization is stratabound replacement type, not strataform exhalative type, which explains the absence of an oxide iron formation and the presence of minor amounts of mineralization in the stratigraphically overlying ash tuff (possibly NF Formation). Three types of alteration obtain: chloritization, silicification and sericitization but only the first two are associated with mineralization; more specifically, chloritization (Fe-rich chlorite) is generally spatially associated with Cu mineralization, whereas silicification (referred to as “chert” in the old logs) typically accompanies Pb-Zn mineralization. Sericitic alteration is sestern limb of the F2 synform.

The mineralization comprising sulphide horizon that hosts the CNE Deposit is mainly comprised of sphalerte and galena. The most favorable portions of the ore body contain 20% to 89% sulphide minerals. Pyrite occurs as laminations or disseminations and is more dominant when associated with chalcopyrite or distal to the zinc-lead sulphides. Locally pyrite is up to 33% but typically is less than 10%. Arsenopyrite makes up less than 1% of the ore body. The copper enriched areas may have up to 70% pyrite but make up only a small part of the deposit. The deposit has a slightly lower silver content than some of the larger deposits and there is sufficient gold in mill recoveries to make it an important component of the resource.

44 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

Figure 3.9 - Local Geology

45 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012

3.1.6 Air Quality

There is currently very little activity in the area other than recreational vehicles for hunting, fishing and camping. As can be seen on Figure 3.2 there has been significant forestry activity over the intervening period since the 1990 production. The Heath Steele Mine and concentrator have been closed for several years. This would have been the only continuous operation that may have had any significant effect on local air quality. The Spurline Road 1.54 kilometers southwest of the site would still be used as a resource access road for forestry and may have some minor effects on air quality during humid calm periods in the summer. The area in general would have very good air quality throughout much of the year.

3.1.7 Surface Drainage

This project is located between the Portage, Tomogonops and Northwest Miramichi Rivers (Figure 2.1). Surface runoff from the Site is controlled by 2 tertiary streams and 1 secondary unnamed stream that eventually empty into the Portage River approximately 2.9 kilometres east of the pit area (Figure 3.2). The site drainage is south along the access road from the Spurline Road, southeast from the cedar swamp east of the pit and east across the north side of the pit where the outlet of the final settling pond discharges. There is a low flow rate discharge of ground water from the old pit t discharges into the channel running east on the north side of the pit. All runoff is collected into a single channel that flows north and bends to the east before reaching the Portage River. On the south southwest side of the project area there appears to be potential in high flow rate periods such as spring runoff to get overflow that may discharge into Tozer Brook. This brook also discharges into the Portage River.

The main runoff channel flows through a relatively flat area interconnected by a series of saturated bogs and beaver ponds before entering a well defined stream valley approximately 1 kilometre before discharging into the Portage River.

Water testing during the bulk sample indicated low pH waters may be encountered while mining. These waters are likely trapped underground and released into the pit during drilling and blasting. These waters were neutralized in the treatment ponds prior to release into the surface drainage.

Surface runoff water from the project area is collected in approximately 365 hectares. The runoff flow rates from the area are low but the area could become saturated when extreme precipitation or melt events occur. It is recognized from the data presented in the graphs above that mid to late summer rain events occur particularly in July and August Groundwater 46 Stratabound Minerals Corp. EIA Registration – CNE Deposit March 2012