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Canadian Zinc applies for crucial permits

Roxanna Thompson
Northern News Services
Published Thursday, June 19, 2008

DEH CHO - Canadian Zinc has taken a long awaited step to move its Prairie Creek Mine towards full production.

Early this month the company submitted four applications for permits to the Mackenzie Valley Land and Water Board. The permits include a type A water licence and a type A land use permit that in conjunction with other sub-permits would allow the mine to start production.

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By using an underground backfill process for its tailings Canadian Zinc says it will be able to remediate the original tailings pond at Prairie Creek at the end of the mine's life. - photo courtesy of Canadian Zinc

"They have taken a long time to get here but we feel it's been time well spent," said Alan Taylor, the vice president of exploration and chief operating officer for Canadian Zinc.

Before submitting the applications the company wanted to be sure there was something in the ground to mine and it could be mined in a responsible way, said Taylor.

Based on a recently completed underground exploration and development program, an updated mineral resource calculation shows the mine has enough resources to operate for at least 10 years. The proposed production rates would start at 600 tones per day and build to 1,200 tonnes. Mined minerals would include lead, zinc and silver.

The company is also planning to make a number of upgrades to the mine site to mitigate environmental concerns.

"Water management and water quality was top-of-the-list as far as people's concerns with Prairie Creek," Taylor said.

Originally a tailings pond was constructed to hold waste tailings. However, the pond is on the Prairie Creek flood plane which has caused concern for communities and the company, he said.

In response, Canadian Zinc will use an underground backfilling process.

Instead of a pond, finer grade tailings would be combined with cement and pumped underground, said Taylor.

The tailings pond will be converted to a two-celled water storage pond. The pond would contain water used in the milling process. That water would be treated before being released into the river system.

When the mine closes the ponds could be reclaimed, said Taylor.

"Upon closure I don't want any long term environmental issues at that site," he said.

The mine will also be using a milling process that doesn't require the use of cyanide, said Taylor.

Using a process called dense media separation, the heavy ore minerals will be separated from the lighter waste rock. This process reduces the waste product that goes through the mill and allows for more metal to be recovered, he said.

Taylor said he's confident the company's measures address the environmental concerns

"We've put a lot of effort into environmental mitigation because we recognize the location we're in requires very stringent management," said Taylor.

"It's at a great expense to the mine operations but we feel it's necessary to do this."

The Canadian Parks and Wilderness Society (CPAWS) isn't convinced, however.

"We still have very strong concerns about a mine operating in a very ecologically sensitive area," said Jennifer Morin, the interim executive director with the NWT chapter of CPAWS.

Morin said that CPAWS would like an environmental assessment of the highest level done on the permit applications.

Water and water quality is the main issue both for CPAWS and local communities, added Morin.

CPAWS questions whether the underground backfill process has been used and monitored in the North.

There are also questions about how it will work in relation to the karst formations that surround the mine.

Karst is made of water-soluble limestone and is filled with a system of underground rivers and caves that are very sensitive, said Morin.

"We want to make sure that proven technology is considered in the assessment," she said.

Any review will have to take into consideration all the potential impacts, Morin said.

"We need to be really careful."

The opening of the mine, however, could still be years away.

Based on their previous experiences, Taylor said the permitting process could take more than a year.

Even if the permits are received the company will still need to raise finances to make the upgrades to the mine site. The company is currently in the process of a conducting a pre-feasibility study to identify the costs.

"It will be in the tens of millions of dollars, there's no question," Taylor said.