Nisga a Lisims Government. Success Story. and Avanti Kitsault Mining Ltd. One Heart, One Path, One Nation. January 2015

Transcription

1 Success Story and Avanti Kitsault Mining Ltd. January 2015 One Heart, One Path, One Nation 1

2 Success Story Presentation Overview Avanti Kitsault Mine Ltd. An Alloycorp Mining Company Avanti Kitsault Mine Project Final Agreement Dispute Resolution Environmental Agreement One Heart, One Path, One Nation 2

3 We are Nisga'a, People of the Nass River. We have lived here, on British Columbia's northwest coast, since time immemorial. Long enough to see our culture thrive, adapt, and endure. Canada's Nisga'a Nation is represented by Nisga'a - a modern, forward-thinking administration based on traditional culture and values. Together, we have built a culture and economy that respects and protects our natural heritage Our worldwide population is about 7000 Our Treaty with Canada and BC, the Final Agreement, went into effect May 11, 2000 Our website: We are on Facebook: --Nisgaa-Nation/

4 Where we are The Nass Area ~26,838 km 2 Fish, Fish Habitat, Aquatic Plants and Migratory Birds The Nass Wildlife Area ~16,101 km 2 Wildlife, Wildlife Habitat Kitsault Communities Gitlaxt aamiks Gitwinksihlkw Laxgalts ap Gingolx Terrace Prince Rupert/Port Edward Vancouver Lands ~2000 km 2 authority to make laws One Heart, One Path, One Nation 4

5 Emerging Molybdenum Producer and Supplier of Steel Alloy Metals TSX V:AVT

6 Alloycorp at a Glance TSX-Venture Toronto, Vancouver and Terrace Our Strategy: To become the unique supplier of steel alloy metals Build the Avanti Kitsault Project in BC, Canada Acquire assets producing commodities that supply to the steel alloys industry 6

7 Alloycorp Supplies to Global Steelmakers Returns in the form of stainless and construction steels Avanti Kitsault Mine Returns in the form of stainless and construction steels Concentrate to SeAH Concentrate to Vancouver Processed MoO 2 to ThyssenKrupp Concentrate processed at Molymet s Chilean facilities (up to 4,500 tonnes annually) Remaining Concentrate to Molymet in Belgium Front end of the steel supply chain 7

8 Molybdenum Fundamental Input in Steelmaking Molybdenum End Uses Oil and gas drilling steel Pipelines and storage tanks Bridges Offshore infrastructure Manufacturing of tools Automotive industry Manufacturing of aircrafts and turbine engines Source: CPM Group 8

9 Avanti Kitsault Mine 9

10 History of Kitsault Exploration Operations I Exploration & Upgrade Operations II Care/Maintenance Reclamation Re-Development Present 10 10

11 World Class Project Ownership 100% Alloycorp Mineralization Molybdenum Silver Molybdenum Reserves 190, % Mo Mining Method Conventional Open Pit Throughput Rate 45,000 tpd Strip Ratio 1:1 Processing Method Milling and Flotation Average Metallurgical Recovery 88.5% Mo, 39% Ag 1 Construction Period 2 Years Mine Life (Reserves Only) 14 Years Initial Capital $818 million Operating Costs (Before By-Product) US$5.96 per lb Operating Costs (Net of By-Product) US$5.12 per lb Source: Kitsault Optimization Study (April 2014) 1. Currently looking to improve silver recovery through additional metallurgical test work 11

12 Key Project Highlights Brownfield Site Existing Infrastructure Proven Resource NLG & AKML Agreements Permitted Under Construction July

13 Kitsault Project Location 13

14 Kitsault Site Arrangement 14

15 Site Arrangement 15 15

16 Timeline To Production Env Baseline Data Feasibility Study Began in 2008 data back to 1980 FS Update EO Complete EA Process EA App BC EA Cert CEAA Approval Complete Permitting Permit Application Const. Permits Final Permits Complete FN Agreements MOU with 3 First Nations CBA with Complete Financing Basic and Detail Eng Currently 45% complete Construction Start-Up / Operation 16

17 Construction Achievements To-Date Construction of access road is complete Front-end engineering 45% complete Engineering team has grown to 70 people Camp expansion underway to support a 150 bed construction camp Construction of the Nass River bridge currently underway Owner s team expanded to oversee management of the project 17

18 Alternatives for On-Land Tailings Disposal Land Based Tailings Facility Asphalt Core 18 18

19 Independent Engineering Review Panel Tailings Facility Three member panel Geotechnical, hydrogeological and hydrological components Ministry of Energy and Mines Panel Recommendations shared with the NLG Panel Technical Guidance: Design Construction Operations Closure Objective: Safe and environmentally responsible development 19

20 Employment Construction 700 Construction Jobs Health & Safety specialists Environmental technicians Heavy equipment operators Mechanics Millwrights Electricians Administrative personnel Service and maintenance personnel 20

21 Employment Operations 300 Operation Jobs plant operators line superintendents mine truck drivers mine shovel operators engineering specialists administration personnel service and maintenance specialists environmental compliance and health services specialists 21

22 BC Environmental Assessment & Permitting process Larger projects trigger EA s EA s are typically strategic in nature Finer details emerge in permitting process 22

23 Chapter 10 and relevant provisions of Treaty Definitions (taken from Definitions Chapter) Environmental Assessment means the evaluation of impacts on the environment, and includes screening, study and review 23

24 Chapter 10 and relevant provisions of Treaty Definitions (taken from Definitions Chapter) Project means any undertaking or proposed undertaking in relation to a physical work or activity 24

25 Chapter 10 and relevant provisions of Treaty Definitions (taken from Definitions Chapter) Consult and Consultation mean provision to a party of : a. Notice of a matter to be decided, in sufficient detail to permit the party to prepare its views on the matter, b. In consultations between the Parties to this Agreement, if requested by a Party, sufficient information in respect of the matter to permit the Party to prepare its views on the matter, c. A reasonable period of time to permit the party to prepare its views on the matter, d. An opportunity for the party to present its views on the matter, and e. A full and fair consideration of any views on the matter so presented by the party 25

26 Chapter 10 and relevant provisions of Treaty Chapter 10 Environmental Assessment and Protection Paragraph 6 Paragraph 8 Subparagraph e. assess whether the project can reasonably be expected to have adverse environmental effects 26

27 Chapter 10 and relevant provisions of Treaty Chapter 10 Environmental Assessment and Protection Paragraph 6 Paragraph 8 Subparagraph f. Assess the effects of the project on the existing and future economic, social and cultural well-being of citizens who may be affected by the project 27

28 Chapter 10 and relevant provisions of Treaty Chapter 10 Environmental Assessment and Protection Paragraph 6 Paragraph 8 Subparagraph i. take into account any agreements between the project proponent and the Nation. 28

29 Dispute Resolution The Nation was not satisfied it had all of the information required in order to have a full understanding of what the effects would be The Nation initiated the Dispute Resolution process described in the Treaty BC granted the EA Certificate BC, Canada, and the Nation entered discussions to resolve the dispute If unsuccessful the final step in the DR process is litigation To preserve its rights, the Nation initiated legal proceedings 29

30 Environmental Agreement Identified the key outstanding issues Historic environmental concerns Future environmental concerns Certainty of environmental standards Certainty of scientific methodology Assigned technical teams from both parties for each issue NLG provided specifics by issue for discussion and resolution 30

31 Environmental Agreement Addressing Uncertainty From conceptual to details Beyond the BC Environmental Certificate Schedule Scientific Methodology Adaptive Management Contingency Planning and Implementation 31

32 Environmental Agreement 1. Site Specific Water Quality Objectives 2. Water Treatment 3. Fish Habitat Compensation 4. Marine Effects Monitoring Program 5. Aquatic Effects Monitoring Program 6. Human Health Risk Assessment 32

33 Consensus June 2, 2014 Multiple full day meetings throughout May 2014 Interim documents generated for review and discussion Give and take Willingness by both parties to reach an agreement 33

34 Barriers Broken business opportunities Training and education Community support and involvement Commencement of Construction July 1,

35 Questions? Success Story and Avanti Kitsault Mining Ltd. 35