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Nanisivik Mine Closure and Reclamation Plan

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Nanisivik Mine Closure and Reclamation Plan Nanisivik Mine Closure and Reclamation Plan NiyFs5 mg?oxizk5 xml nlm3n3bsizk5 CanZinco Ltd. February 2002 Volume 1 of 2: Closure and Reclamation Plan CanZinco Ltd. Nanisivik Mine Closure and Reclamation Plan Volume 1 of 2 Closure and Reclamation Plan Prepared for CanZinco Ltd. Prepared by: Gartner Lee Limited GLL 21-957 February 2002 Distribution: 6cc CanZinco Ltd. 3cc Indian and Northern Affairs Canada 3cc Nunavut Water Board 1cc Hamlet of Arctic Bay 2cc Gartner Lee NiyFs5 mg?oxizk5 xml nlm3n3bsizk5 Nw4oQx3ymJ5 scsy4nw5____________________ NiyF4f5 s/C4ix3tq5 WdtQ/sJ5 CanZinco Ltd, wMQ/sJ5 sfkz Breakwater Resources Ltd. s/C4b3FsJ3 vNbs5 srs3b3gzi sx4Nzi er3bl5. s/C4b3FsJ3 x3?3g5 vq3Lxb wlxi5g3. x?tz kNz i4Mh4gu5g6, csy3iclxqLil, dxawNc5b3g3 miC3 x7ml kNzb cz WD3gc5txq5g6, i3Jtc5txqJtQ/z WD3gc5txq8izk5. wkw5 w4Wx3J4usbw5, sk3ic3g5 &)) ciQ/i5g5 szy4uc3g3 ## rMubu4 NiyF4u5. wcNw/3t5 trc5b3g5 xml w4Wx3J4jxc5b3g5 czbh4f5 xe4ymJ4f5 wcl4i5. sy/s/Exo5 Wdt5 trtbsc5b3g5 xml nFC/4nw5 syv3b3bsc5b3g5 sux3Jx4f5 wmsizi WNhxDy5 !$ wlxi. s/C4ixyQxMs3g5 !(&^u. nFC/4nw5 W/3bsc5b3g5 kNs5 wlxi5 xml yco/slt4 nFC/4nsiq5 W/3bslt4. nlm3nwiz seqic5gi4 W/E3yc5b3g3 @,@)) b8 sl3j5. wcNw/3t5 wMQ9l kNc3g5 NiyF4u, nN/sif9lil s/C4ix3is5 wMQ9lis4. kNoz Wbcs3g3 wo8ix3F4u4, g4yx3F4u4,ttC4fF4u4,Wax3F4u4,iE/3g3F4u4,w4li4, xml w4lDycs3gi4. m8NsJ3 wcNw/3tc3g5 !&!i4. mgix3iz xe4ymJ3 ytWE #), @))@ WJtc3Lt4 xrrlxo3izk5 nFC/4n6. 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W/3bslt4 w4l3Jxaiq5 wcNw/3Fsif5 w4lQ/sJFi9l wMq9l xs3tbslt4 rNs/3bDbsJ8N3g5; *. hD3N3gcq8iq5 Wdt5 wlxkx3bslt4 kNs5 s?li5 wl5g3ymJj5 ns/slt4; (. x4b3Fz ns/sli gxX4j5 x?tz wl5g3ymli czi5g3 wJic3li !.@% ubu4 gxX4u4; !). gxX4 hD3N3gc3iz W/3bsli wosc3bsli kNs5 wlxk5 s?li5 wl5g3ymJj5 ns/sli. !!. wo/slt4 cspnst5 sdizi4 miCs5 sdy?oxizk5 cspnsbsix3gi4. cspn3bsymwN3ix3g3 nlm3n3bs?oxli xml xCAk5 bomk5 G%H W/E3ymo3t9lQ5. cspn3bscystix3g5 wuz, miCz, ckwo?oxizl kNs5. cspn3bsJ5 ckwoziq5 scsysc5b3ix3g5 kNK5 wuoEp4f5 vtmpq8k5 xml ckwos3b/Exc3iq5. ii Nanisivik Mine Closure and Reclamation Plan Executive Summary The Nanisivik Mine is owned by CanZinco Ltd., a division of Breakwater Resources Ltd. The mine site is located in the Canadian Arctic on northern Baffin Island. The mine site lies on the south shore of Strathcona Sound at approximately 73 degrees north latitude. The environment around the mine site is characterized by cold temperatures, low precipitation, continuous permafrost and largely barren surface soils, which render the mine area poor for vegetation coverage and wildlife use. The Inuit Hamlet of Arctic Bay, population 700, is located approximately 25 kilometres by road west of Nanisivik. Access to the mine site and to Arctic Bay is via scheduled jet air service from Iqaluit. Freight is delivered to Nanisivik and concentrates are exported via ship during the 14-week open water season. The mine commenced operations in 1976. Sulphide ore is mined primarily by underground methods and milled on-site to produce lead and zinc concentrates. The mill operates at a nominal 2,200 tonnes per day. Mine personnel reside in the town of Nanisivik, which was constructed as part of the mine facilities. The town facilities include a school, church, post office, recreation center, dining hall, houses and apartments. Currently, the mine employs 171 people. Closure of the mine is scheduled for September 30, 2002 due to depletion of economic ore reserves. The development of the mine was partially funded by the Government of the Northwest Territories (as it then was) and some of the town facilities and infrastructure are currently owned by the Government of Nunavut (“GN”). These facilities include the church, town water supply, sewage treatment system, housing, the road from the dock to the airport and to Arctic Bay as well as other infrastructure. Reclamation of these GN-owned facilities is the responsibility of the GN. The dock is owned by the Department of Fisheries and Oceans. They use the dock as a refueling and storage depot (also utilizing the mine-owned tank farm). Reclamation or continued use of the dock is the responsibility of the Federal Government. The GN and the Hamlet of Arctic Bay have publicly expressed a strong interest in identifying and implementing plans for the continued use of the town of Nanisivik and some of the industrial buildings. To this end, the GN has issued two Requests for Proposals to identify the possible socio-economic impacts of the mine closure on the Hamlet of Arctic Bay and to identify and evaluate alternatives for continued use of the Nanisivik Mine facilities. Nanisivik Mine shares this interest in identifying alternatives for continued use and has committed to contributing to these projects. Nonetheless, Nanisivik Mine must proceed with reclamation of the mine facilities in a cost-effective manner as described in the Closure and Reclamation Plan and will continue to do so until formal agreements are in place to the contrary. This Closure and Reclamation Plan (the “Plan”) is being filed with the Nunavut Water Board in response to the requirements of the Water License. The Plan describes CanZinco’s approach to closure and reclamation of the Nanisivik site in an efficient manner that follows the “Guidelines for Abandonment iii Nanisivik Mine Closure and Reclamation Plan and Restoration Planning for Mines in the Northwest Territories” dated September 1990 (the “Guidelines”) and that promotes benefits to northern residents. The primary objectives of the Plan are in accordance with the Guidelines, “to prevent progressive degradation and to enhance natural recovery in areas affected by mining”. The reclamation work is focused on utilizing the natural conditions to provide for the secure, long-term closure of the mine site. Reactive mine wastes, such as tailings and mineralized waste rock, will be reclaimed by incorporating them into the permafrost regime either in the underground mine or beneath a cover of inert material. The freezing conditions will prevent contamination of surface water. The required thickness of inert cover to ensure permafrost formation has been calculated to include the estimated effects of global warming. The reclamation activities are anticipated to be completed in two years following mine closure. Options exist to potentially shorten this schedule and these will be pursued, where practical. Some of the specific reclamation measures that will be implemented beginning in October 2002 are: 1. Maintain at least 1 metre water cover over subaqueous tailings. 2. Place a cover of 1.00 metres of shale (thermal insulation) plus 0.25 metres of sand and gravel (armour cap) over exposed tailings. 3. Construct an engineered outflow spillway from the covered tailings area. 4. Relocate mineralized waste rock to the underground mine or to open pits where backfilling is required. 5. Contour and backfill open pits as required to achieve positive surface drainage. 6. Cover residual mineralized material in rock piles or open pits with 1.25 metres of inert material. 7. Dismantle industrial and residential buildings and salvage components of economic value for shipment off site. 8. Dispose of non-hazardous demolition debris and residual scrap materials in the underground mine or in open pits where backfilling is required. 9. Reclaim the landfill with contouring to ensure positive surface drainage and place a 1.25 metre thick cover of inert material. 10. Remediate contaminated soils by covering in-place or by excavation and disposal in either the underground mine or in open pits that require backfilling. 11. Install
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