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CAPE RAY GOLD PROJECT PORT Aux BASQUES & ISLE Aux MORTS NEWFOUNDLAND Environmental Assessment Registration Pursuant to the E

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CAPE RAY GOLD PROJECT PORT Aux BASQUES & ISLE Aux MORTS NEWFOUNDLAND Environmental Assessment Registration Pursuant to the E CAPE RAY GOLD PROJECT PORT aux BASQUES & ISLE aux MORTS NEWFOUNDLAND Environmental Assessment Registration Pursuant to the Environmental Assessment Act 2012 PROJECT DESCRIPTION SUMMARY of a Designated Project Submitted to: Canadian Environmental Assessment Agency 200 – 1801 Hollis Street Halifax, Nova Scotia B3J 3N4 Submitted by: Nordmin Resource and Industrial Engineering Ltd. 160 Logan Ave Thunder Bay, Ontario P7A 6R1 December 2016 Nordmin Project No.: 14200 - 01 NORDMIN ENGINEERING LTD. 160 Logan Avenue Thunder Bay, ON, Canada P7A 6R1 T: 807.683.1730 F: 807.683.1744 www.nordmin.com December 12, 2016 Nordmin Project No.: 14200 - 01 Canadian Environnmental Assessment Agency 200 – 1801 Hollis Street Halifax, Nova Scotia B3J 3N4 Attention: Mr. Mike Atkinson, Regional Director, Atlantic Dear Mr. Atkinson, Re: Cape Ray Gold Project Description Summary Port aux Basque, Newfoundland Nordmin Engineering Ltd. (Nordmin), in Thunder Bay Ontario, is pleased to submit this Project Description Summary Report for Registration of a designated Project persuant to the Canadian Environmental Assessment Act 2012 for the Cape Ray Gold Project near Isle aux Morts and Port aux Basque Newfoundland. Nordmin is currently advancing the Project site as part of a Joint- Venture Agreement with Benton Resources Inc. also in Thunder Bay. I want to thank you and your staff for the valuable guidance and feedback provided on the earlier drafts of the Project Description. The comments are much appreciated. As you know, it has already been determined that the Project will undergo an environmental assessment and review under the legislation of the Province of Newfoundland and Labrador. Irrespective of a decision by the Agency as to whether a formal environmental assessment of the Project is required, the provincial environmental assessment will benefit from the comprehensive range of federal environmental assessment and planning guidance included in the draft EIS guidelines issued by the province. I trust that the attached Project Description provides all the key information needed for you to make a determination whether a federal environmental assessment is required for the Project. Please call should you have any questions regarding the report. Yours sincerely, Nordmin Resource and Industrial Engineering Ltd <original signed by> Giovanni (John) Sferrazza Director-Environmental Services Encl. Project # 14200-01 NORDMIN ENGINEERING LTD. Page ii of xviii Cape Ray Gold Project December 2016 Project Description Summary of a Designated Project NORDMIN ENGINEERING LTD. 160 Logan Avenue Thunder Bay, ON, Canada P7A 6R1 T: 807.683.1730 F: 807.683.1744 www.nordmin.com Executive Summary Nordmin Resource and Industrial Engineering Ltd. (Nordmin is the proponent) is currently in a Joint Venture agreement with Benton Resources Inc. for the purposes of developing the Cape Ray Property near Port aux Basques, Newfoundland. Nordmin proposes to develop, operate, decommission and reclaim a gold and silver mine, mill and processing operation at the Cape Ray site. The Project includes open pit and underground mining methods to extract and process gold and silver bearing ore from the Cape Ray Deposits to produce gold and silver dore bars on site for commercial sale. The Project will take approximately two years to construct and permit and then have a mine life of five to eight years. A Preliminary Economic Assessment (PEA) was prepared for this Project in April 2016, which indicated a potential minable resource estimated at 1,701,487 t averaging a combined grade of 4.6 g/t gold and 4.8 g/t silver. Open pit potential minable resource made up 836,014 t with anticipated dilution of 10% and mine losses of 5%. The remaining 865,473 potential minable resource tonnes from underground methods include dilution of 20% in longhole stoping and 10% in cut and fill with mine losses of 5% applied. Mill recovery rates based on preliminary test are estimated to be 97% resulting in 250,000 ounces recoverable gold and 45% resulting in 260,000 ounces recoverable silver. The Project will bring much needed economic benefits to the region. The recent downturn in the economy reinforces the need for resource development projects of this nature and economic development in Port aux Basque area. Based on preliminary community discussions and past history, there is a strong community support for the Project. The proposed Project would directly create approximately 100 - 150 jobs (at peak) during construction and approximately 30 full-time jobs during operations. The proposed Project presents an opportunity for substantive economic benefits to the region, local communities, and the province. The Project area is located on the southern slopes of the Long Range Mountains, and generally in the Maritime Barrens ecoregion. It is characterized by broad wooded valleys (tuckamoor), gently sloping organic deposits and rugged bedrock dominated uplands. The dominant surficial characteristics are bedrock concealed by vegetation, barren outcrops or lichen covered rock, thin bog cover; minor thin till deposits and the occasional drumlinoid feature. The deeply incised river valleys contain glaciofluvial deposits and alluvial deposits derived from postglacial erosional and sedimentary processes. The rugged and often strongly sloping topography varies in elevation from approximately 140 m along the valley bottom of the Isle aux Morts River to nearly 480 m along the eastern boundary of the project area. The Isle aux Morts River is a Scheduled Salmon River and as such is subject to special management procedures and protection by the Newfoundland and Labrador Department of Natural Resources. The Project is also subject to environmental assessment legislation in Newfoundland and Labrador. Draft Guidelines for the Environmental Impact Statement for the Project have been Project # 14200-01 NORDMIN ENGINEERING LTD. Page iii of xviii Cape Ray Gold Project December 2016 Project Description Summary of a Designated Project NORDMIN ENGINEERING LTD. 160 Logan Avenue Thunder Bay, ON, Canada P7A 6R1 T: 807.683.1730 F: 807.683.1744 www.nordmin.com issued (November 2016). There has been involvement with respect to federal agencies and interests with input into the provincial EIS guidelines through the involvement of federal agencies such as Environment and Climate Change Canada and Fisheries and Oceans Canada. As such, there is a high degree of certainty associated with the environmental assessment expectations with respect to the Project. Project # 14200-01 NORDMIN ENGINEERING LTD. Page iv of xviii Cape Ray Gold Project December 2016 Project Description Summary of a Designated Project NORDMIN ENGINEERING LTD. 160 Logan Avenue Thunder Bay, ON, Canada P7A 6R1 T: 807.683.1730 F: 807.683.1744 www.nordmin.com TABLE OF CONTENTS Executive Summary ........................................................................................................................... iii List of Units and Abbreviations .......................................................................................................... ix 1. Introduction ................................................................................................................................1 1.1 Project Name .......................................................................................................................... 1 1.2 Proponent Information .......................................................................................................... 2 1.3 Consultation Overview ........................................................................................................... 3 1.4 Rationale for the Project ........................................................................................................ 4 1.5 Environmental Assessment Processes and Requirements ..................................................... 5 1.6 Purpose of the Registration.................................................................................................... 6 2. Project Description .......................................................................................................................7 2.1 Property Description and Location......................................................................................... 7 2.1.1 Proximity to Municipalities .................................................................................................... 9 2.1.2 Proximity to any Permanent, Seasonal or Temporary Residences ........................................ 9 2.1.3 Proximity to any Aboriginal Traditional Lands, Sites or Communities. ................................ 10 2.1.4 Proximity to Federal Lands ................................................................................................... 10 2.1.5 Proximity to Surface Waters ................................................................................................ 11 2.2 Alternatives to the Project ................................................................................................... 12 2.3 Land Tenure .......................................................................................................................... 13 2.4 Overall Project Development and Production Schedule ...................................................... 14 2.4.1 Pit Conceptual Plans ............................................................................................................. 15 2.4.2 Mine Production Schedule ..................................................................................................
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