Value of minerals over $2 billion
Derek Neary
Northern News Services
Nahanni Butte (Dec 01/00) - Prairie Creek mine in Nahanni Butte could mean hundreds of jobs over 20 years.
The executive of Canadian Zinc Corporation talked to the Nahanni Butte Dene band and Deh Cho First Nations last week about the zinc mine, which also has lead, silver and copper deposits.
| FACT FILE -- Canadian Zinc is headquartered in Vancouver and is listed on the Toronto Stock Exchange. -- Canadian Zinc was known as San Andreas Resources until a name change occurred in 1999. -- The Prairie Creek mine site is located 32 kilometres upstream from the current Nahanni National Park Reserve boundary. -- The 20-year mine life projection is based on only three of the mine's 14 kilometres of property, according to Canadian Zinc president and CEO Malcolm Swallow. -- The Nahanni Butte Dene band signed a cooperative development agreement with San Andreas Resources in 1996. The deal has a provision for the band to purchase 10 to 15 per cent of the mine for $6 or $9 million respectively (inflation adjusted). -- A third-party has staked off the area surrounding the mine, but Swallow said a team of geologists has confirmed that Canadian Zinc has the most valuable ground in its possession. "We didn't miss the motherlode," said Swallow, who added that his company declined to buy the surrounding land. |
Alan Taylor, vice-president of exploration, said, "We haven't quite found the lost gold of the Nahanni, but we're working on it."
President and CEO Malcolm Swallow said the cost of excavating, smelting, and transporting minerals would be taken out of the $2.6 billion. Mineral prices fluctuate as well, he added.
However, the new board of directors for Canadian Zinc, elected in May, believe the mine can be profitable, Campbell said. They hope to be in production in two to three years. The operation could provide 260 jobs.
Road needed
Campbell said a $20 million, 165-kilometre all-weather road needs to be established from the mine site to the Liard Trail as 180,000 tons of concentrate (base metals and sulphur) would be trucked out annually. There's in excess of 10 million tons of minerals at the Prairie Creek mine site, according to Taylor. The mill could process 1,500 tonnes of concentrate per day.
Canadian Zinc has outlined three scenarios for road construction, for which an application was said to be at least a year away:
"We see that as one of the best possibilities for (Nahanni Butte) to be involved early in the project," Campbell said of road construction.
Campbell said Canadian Zinc and the Nahanni Butte band could also share the ferry that would be needed to traverse the Liard River.
Herb Norwegian, assistant negotiator for the Deh Cho Process, said the DCFN will be withdrawing lands in the future as part of its self-government negotiations. He added the DCFN is striving for protection of the South Nahanni watershed area and is considering expanding Nahanni National Park Reserve to nearly seven times is current size.
"At some point, we'll probably have to look at whether the mine should be there or not," Norwegian said, asking what it would cost to purchase the mine site.
Campbell said Canadian Zinc has invested $150 million in the site to date. Swallow later said it would be up to lawyers to set a sale price.
Within the next year, Canadian Zinc plans to conduct surface drilling and tunnel 600 metres underground to "detail the large resource," Taylor said. These activities would all be supported by air. A pilot plant is also in the works.
Clean-up costs
Regarding the clean-up of the 30,000 gallon fuel cache at Cat Camp, Nahanni Butte chief Leon Konisenta said he would prefer to see the winter road used for that purpose. He added that his community would like to use the diesel as heating fuel.
Swallow said the cost factor would have to be discussed as the clean-up is expected to carry a price tag in excess of $100,000.
Konisenta also wanted the two sides to reconvene in the future to discuss liability in case of a fuel spill. Campbell said it's unlikely the fuel could be moved this winter but they could plan for next winter.
DCFN grand chief Michael Nadli invited the representatives of Canadian Zinc to the DCFN's winter leadership meeting in Fort Providence in February to discuss the matter further.
