Copper Fox Metals Inc. Schaft Creek Project: Socio-Economic Baseline Study Rescan™ Tahltan Environmental Consultants Sixth Floor - 1111 West Hastings Street Vancouver, BC Canada V6E 2J3 Tel: (604) 689-9460 Fax: (604) 687-4277 May 2010 SCHAFT CREEK PROJECT: Socio-economic Baseline Study May 2010 Project #1039-001-13 Prepared for: Copper Fox Metals Inc. Prepared by: Rescan™ Tahltan Environmental Consultants Vancouver, British Columbia Citation: Rescan™ Tahltan Environmental Consultants (RTEC). 2010. Schaft Creek Project: Socio-economic Baseline Study . Prepared for Copper Fox Metals Inc. May 2010. SCHAFT CREEK PROJECT: SOCIO-ECONOMIC BASELINE STUDY Executive Summary Executive Summary The proposed Schaft Creek Project is situated in an area containing primarily small, remote communities. This report represents the baseline socio-economic conditions of primary (Tahltan Nation communities) and secondary (Stewart, Terrace and Highway 37) communities in the region of northwestern B.C., including a summary of current economic conditions, available infrastructure, skills and education levels and social and health issues. Socio-economic issues typically observed in the study communities are characteristic of a region in which the economy is strongly tied to fluctuations of the goods sector, specifically in regards to the forestry and mineral exploration industries. Currently this translates to a lack of employment, job training or education opportunities, as well as strains on community infrastructure. In Tahltan Nation communities, high unemployment and a lack of economic diversity is a consistent problem compounded by their remoteness from major centres in the region. Education levels are typically low, though access to post-secondary education is available, and training in trades is relatively high. Infrastructure, including health and social services has been developed in all Tahltan communities to suit their specific needs, but face challenges associated with providing services to a large territory, including emergency services for sections of Highway 37. Issues currently facing all communities in the region are tied to the decline in the forestry industry, high mineral prices and its effect on exploration activities, as well as the upcoming closures of the Huckleberry and Kemess mines. However, an economic focus on providing support for the mining and resource industry means that all primary and secondary study communities are well situated to see economic benefits by the proposed Project in the form of providing construction and operation support. COPPER FOX METALS INC. i SCHAFT CREEK PROJECT: SOCIO-ECONOMIC BASELINE STUDY Table of Contents SCHAFT CREEK PROJECT: SOCIO- ECONOMIC BASELINE STUDY Table of Contents Executive Summary ........................................................................................................................................................................................... i Table of Contents ............................................................................................................................................................................................. iii List of Figures .................................................................................................................................................................................. vii List of Tables .................................................................................................................................................................................... vii Acronyms and Abbreviations ...................................................................................................................................................................... ix 1. Introduction ................................................................................................................................................................................... 1-1 1.1 Study Area ..................................................................................................................................................................... 1-1 1.2 Methodology ............................................................................................................................................................... 1-4 1.2.1 Data Collection .......................................................................................................................................... 1-4 1.2.2 Socio-economic Data Components .................................................................................................. 1-4 1.2.3 Data Limitations ........................................................................................................................................ 1-5 2. British Columbia ........................................................................................................................................................................... 2-1 2.1 Overview ........................................................................................................................................................................ 2-1 2.1.1 Goods Sector .............................................................................................................................................. 2-1 2.1.2 Mining Exploration and Development ............................................................................................ 2-2 2.1.2.1 Revenue from the Mining Industry ............................................................................. 2-2 2.1.2.2 Mining Activity .................................................................................................................... 2-3 2.1.2.3 Mining Labour and Employment ................................................................................. 2-3 2.1.3 Forestry and Logging .............................................................................................................................. 2-4 2.1.4 Agriculture .................................................................................................................................................. 2-4 2.1.5 Fishing .......................................................................................................................................................... 2-4 2.1.6 Tourism ......................................................................................................................................................... 2-4 3. Northwestern British Columbia .............................................................................................................................................. 3-1 3.1 Overview ........................................................................................................................................................................ 3-1 3.2 Regional District Government Jurisdictions .................................................................................................... 3-1 3.3 Economy ........................................................................................................................................................................ 3-1 3.3.1 Mining ........................................................................................................................................................... 3-2 3.3.1.1 Recent Mine Closures ....................................................................................................... 3-2 3.3.1.2 Proposed Mining Projects ............................................................................................... 3-2 3.3.2 Forestry ......................................................................................................................................................... 3-2 3.3.2.1 Status of the Industry ........................................................................................................ 3-3 3.3.2.2 Forestry Revitalization Initiatives ................................................................................. 3-3 COPPER FOX METALS INC. iii SCHAFT CREEK PROJECT: SOCIO-ECONOMIC BASELINE STUDY 3.3.3 Tourism ......................................................................................................................................................... 3-4 3.4 Regional Infrastructure ............................................................................................................................................ 3-4 3.4.1 Highways ..................................................................................................................................................... 3-4 3.4.1.1 Highway 16 ........................................................................................................................... 3-4 3.4.1.2 Highway 113 (the Nisga’a Highway) ........................................................................... 3-4 3.4.1.3 Highway 37/37A ................................................................................................................. 3-6 3.4.2 Air Travel ...................................................................................................................................................... 3-6 3.4.3 Housing ........................................................................................................................................................ 3-7 3.4.4 Future Infrastructure Developments ...............................................................................................