Derek Neary
Northern News Services

Praire Creek (Sep 10/01) - Members of the Mackenzie Valley Environmental Review Board recently got a first-hand look at Canadian Zinc Corporation's Prairie Creek mine here in a tour of the site.

In a valley 90 kilometres northwest of Nahanni Butte, members of the board toured the mill, examined the fuel storage tanks and observed a drill site.

Canadian Zinc has applied for a permit to conduct a drilling program of up to 70 surface holes. It is also requesting a permit for a "decline" (a tunnel) and to use a metallurgical test plant on site. That plant would allow the company to run a small-scale simulation of mill operations. It would also enable them to test water quality and tailings quality. Samples of zinc, copper and lead will be tested for quality and value as well.

"We don't have any secrets on this site," a confident Malcolm Swallow, president and CEO of Canadian Zinc Corporation, told the board members as he led them on the tour.

The board has no time restrictions on making its decision, but generally responds within a month, said Louie Azzolini, the environmental assessment officer on the project. If the permits are approved, they will be forwarded to DIAND Minister Robert Nault for a final review.

Comments from the public regarding the applications were accepted until Aug. 31. The MVEIRB members will take those submissions into account in making their decision.

Petr Cizek, a land-use planner representing the Deh Cho First Nations and Parks Canada's consensus team, said he has concerns about the condition of the tailings pond and fuel storage tanks.

"I think it makes sense for the whole mine to go into production. It's there," Cizek reasoned. "But they've got to fix a whole bunch of deficiencies ... basic deficiencies."

Finding funds

At an estimated cost of $2 to $3 million for the projects proposed through the applications, coming up with the money is another challenge.

"I think financing is always a hurdle," Swallow said. "Obviously we will need to raise additional funds to complete that work ... but once you get the permit then generally the funds are available.

"It's difficult to understand what grounds (the MVEIRB) might have for not granting (the permits) ... certainly I think we presented a reasoned and fair argument about what it is we're trying to do."

He said he expects Canadian Zinc will submit a final application by the end of the year. If all goes according to plan, the mine could be fully operational within 18 months to two years, he said.

There are a number of issues to be worked out before full-scale operations begin, including whether an all-weather road can be reopened. With 100,000 tons of concentrate to be trucked out each year, a winter road wouldn't be feasible, according to Swallow.

Canadian Zinc already has an economic development agreement with the Nahanni Butte Dene band, and Swallow said he hopes to work co-operatively with the region's First Nations on contracts for the road and a ferry.

Zinc numbers

- If both permits are granted, up to 40 employees would be needed at the mine site, according to Swallow.

- The mine's infrastructure, valued at an estimated $100 million, has been pieced together under various ownership since the 1960s, but the mine has never been operational.

- The gross value of the minerals within the current two-kilometre resource is $2.5 billion, Swallow said. Prairie Creek has rights to an additional 14 kilometres of adjacent property that has yet to be fully explored.