Premier Gold Mines Hardrock Inc. Project Description Report Addendum

Transcription

1 Premier Gold Mines Hardrock Inc. Project Description Report Addendum Prepared for: Canadian Environmental Assessment Agency Prepared by: Stantec Consulting Ltd. 70 Southgate Drive, Suite 1 Guelph ON N1E 7B8 Premier Gold Mines Limited Suite 200, 1100 Russell Street Thunder Bay, Ontario P7B 5N2 File No July 28, 2014 (Updated August 01, 2014)

2 Sign-off Sheet This report has been prepared by Stantec Consulting Ltd. (Stantec) for the sole benefit of Premier Gold Mines Hardrock Inc. (Premier). The report may not be relied upon by any other person or entity, other than for its intended purposes, without the express written consent of Stantec or Premier. This report was undertaken exclusively for the purpose outlined herein and was limited to the scope and purpose specifically expressed in this report. This report cannot be used or applied under any circumstances to another location or situation or for any other purpose without further evaluation of the data and related limitations. Any use of this report by a third party, or any reliance on decisions made based upon it, are the responsibility of such third parties. Stantec and Premier accept no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions taken based on this report. Stantec makes no representation or warranty with respect to this report, other than the work was undertaken by trained professional and technical staff in accordance with generally accepted engineering and scientific practices current at the time the work was performed. Any information or facts provided by others and referred to or used in the preparation of this report were assumed by Stantec to be accurate. Conclusions presented in this report should not be construed as legal advice. The information provided in this report was compiled from existing documents and data provided by Premier and by applying currently accepted industry standard mitigation and prevention principles. This report represents the best professional judgment of Stantec personnel available at the time of its preparation. Stantec reserves the right to modify the contents of this report, in whole or in part, to reflect any new information that becomes available. If any conditions become apparent that differ significantly from our understanding of conditions as presented in this report, we request that we be notified immediately to reassess the conclusions provided herein. Prepared by (signature) Fiona Christiansen, Regional Technical Leader (Central Canada), Environmental Assessment Stantec Consulting Ltd. Reviewed by (signature) Amiel Blajchman, Director, Environment, Aboriginal and Community Affairs Premier Gold Mines Limited

3 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Table of Contents 1.0 INTRODUCTION OBJECTIVES UPDATED PROPOSED FACILITIES, INFRASTRUCTURE, AND ACTIVITIES EMISSIONS, DISCHARGES AND WASTES Atmospheric Emissions Liquid Discharges and Management Solid Wastes and Management LIST OF APPENDICES Appendix A Preliminary General Layout (Current as of July 28 th 2014) Appendix B Aboriginal Consultation Updates (April 23 rd to August 1 st 2014) Appendix C Comparison Table of Key Updates to Project Components/Activities Appendix D Updated Project Interaction Matrix cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx i

4 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Introduction July 28, 2014 (Updated August 01, 2014) 1.0 INTRODUCTION A Project Description Report was submitted to the Canadian Environmental Assessment Agency (CEAA) on April 23 rd 2014 by Premier Gold Mines Hardrock Inc. (Premier), formerly Premier Gold Mines Limited. Following submission of the Project Description Report (and open house events held in June 2014), additional resource estimate and engineering studies have been completed by Premier as the Project planning phase continues to advance. Feasibility studies have ultimately resulted in the identification of a larger pit shell and updates to associated infrastructure. The general footprint of the Project remains relatively unchanged and in some areas the footprint has been tightened, for example by moving the Tailings Management Facility closer to the open pit. Some additional infrastructure components, such as a power supply and generation facility and liquefied natural gas (LNG) facility have been added to the Project (generally sited in the same area as the Processing Plant). The additional infrastructure that has been identified is not listed on the Regulations Designating Physical Activities, therefore Section 2.2 of the April 2014 Project Description remains unchanged. Updated preliminary layouts are provided in Appendix A. As any additional infrastructure that has been identified is generally located within the existing footprint of the Project the distance of the Project to First Nation Reserves remains unchanged from the information presented in the April 2014 Project Description, however, as requested by CEAA, any additional consultation that has taken place with Aboriginal communities from the date of the April 2014 submission to this addendum submission is summarized in Appendix B (consultation will be ongoing as the Project progresses). The potential effects on Aboriginal peoples, including effects on areas of cultural importance or specific uses, will also be determined as the Project progresses. Premier anticipates that TK and/or TLU studies will be undertaken by Aboriginal communities as a result of the Project. 1.1 OBJECTIVES This addendum provides amended descriptions for key project components and activities (as presented in Section of the Project Description Report, April 2014). A tabular summary of the key changes within this Section, comparing April 2014 Project Description Section to Addendum Submission, is provided in Appendix C. Updates to Emissions, Discharges and Wastes, (as presented in Section 2.4 of the Project Description Report, April 2014), have also been provided for the additional infrastructure components identified. An updated potential Project interaction Matrix is provided in Appendix D. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 1.1

5 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) 2.0 UPDATED PROPOSED FACILITIES, INFRASTRUCTURE, AND ACTIVITIES The key Project components are expected to include: open pit; waste rock storage areas; raw ore stockpile; mill feed storage area and crushing plant ore milling and process plant; tailings management facility; mine water treatment facility; internal access roads and pipelines; parking areas, buildings and yards (administration and dry building, assay lab building, mine maintenance shop, reagent storage building; explosives manufacturing and storage; water distribution system (including fresh water pumping station, potable water distribution, fire water distribution, reclaim water pumping station); sewage treatment facility; fuel supply, conversion, storage and distribution system; power generation and distribution system; and domestic solid waste handling facility; At this time a temporary construction camp is not anticipated, however the need will be confirmed as the Project progresses. Key activities that will need to be undertaken prior to construction include property acquisitions, Highway 11 re-alignment and potential relocation of the Ministry of Transportation (MTO) patrol yard, watercourse realignments, vegetation clearing, a relocation of a portion of the historic MacLeod tailings, a relocation of the Hydro One Networks Inc (HONI) substation and associated overhead power lines and the construction of a natural gas pipeline (at this time the owner/operator is anticipated to be Union Gas). cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.1

6 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) Key Project Components Open Pit As stated in Section 1.0, feasibility studies have ultimately resulted in the identification of a larger pit shell than was original identified in the April 2014 Project Description. Mining of the Hardrock deposit has been designed as an open pit with a total tonnage of 670,330 kt. Planned production will be 4,380,000 tonnes per year (4.38 tpy) or 12,000 tpd of mineralized material processed at the mill during the first three years, and 10,950,000 tonnes per year (10.95M tpy) or up to 30,000 tpd of mineralized material processed at the mill starting during the fourth year, for 365 days per year of mill operation and mine operation. The increase in production will not be possible without the mill expansion. The increase in production is anticipated to occur during the third year, with year four representing the first year of full production. The total amount of mineralized material to be processed during the first three years will be 13,140,000 tonnes, for a total of 460,000 ounces of gold. During years 4-15, 130,360,000 tonnes of mineralized material will be mined and; 4,347,000 ounces of gold will be milled. The estimated Life of Mine (LOM) for the Project is anticipated to be 15 years (however this could range between years depending on the price of gold). This schedule will yield a total of 143,500,000 tonnes of mineralized material at an average grade of 1.05 g Au/t diluted. The pit slopes will be designed for safety based on applicable industry standards. The benches in the rock will be developed by blasting. Pumps will likely be required for pit dewatering. The mining method will be a conventional shovel and truck type operation. Ore, mine rock and overburden removed from the open pit will be trucked to the surface. Ramp widths will be designed to accommodate the necessary heavy equipment. One type of truck is likely to be required for the Project (200 tonnes). The use of diesel shovels and/or electric shovels will be evaluated. During pre-production, 10,000,000 of waste, 4,000,000 tonnes of overburden and 2,000,000 tonnes of mineralized material will be mined. This amount of waste will cover the need to start the construction of the dyke, tailings management facility, roads and parking area. The type of explosive used for the Project will be emulsion. Non-electric detonators will be used. An explosive manufacturing and storage facility will likely be constructed on-site considering the volume of explosives needed each year. Waste Rock Storage Areas Waste rock has been classified as falling into one of two categories, inert non-acid generating (NAG), and reactive potentially acid generating/metal leaching (PAG/ML). Co-disposal of PAG/ML rock with NAG rock is assumed at this time. A detailed waste rock management plan cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.2

7 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) will determine runoff treatment options to meet regulatory effluent requirements. Other disposal options may also be considered as appropriate. The open pit mine plan estimates approximately 505 million tonnes of waste rock and 22 million tonnes of overburden will be generated over the LOM. Waste rock will generally be stored around the perimeter of the open pit. A phased waste rock deposition approach may be considered as appropriate. Material is assumed to be placed on the pad at a maximum height of 90 m with a 10 m bench every 10 m. The location of the storage area was selected to be reasonably close to the open pit to minimize the overall Project environmental footprint. The area was also considered to have suitable foundation conditions with appropriate land tenure. The final location of waste rock will be confirmed as the Project progresses. Raw Ore Stockpile An ore stockpile will be generally located west of the open pit capable of storing up to 4.5 million tonnes of mineralized material. Preliminary ARD/ML testing indicated that approximately 19% of the ore could be ARD/ML, it has been assumed at this time that the ore storage pads will be lined with an impermeable membrane, with runoff collected and sent to the water treatment plant prior to discharge to the environment. As the Project progresses and more information on ARD/ML is acquired, the need for lined ore pads and treatment of runoff may be eliminated. Mill Feed Storage Area and Crushing Plant A truck dump and primary crusher will be generally located east of the mill and adjacent to the open pit road. The dump will be capable of handling up to 200 tonne trucks. The primary crusher will feed the secondary crusher and then the crushed ore stockpile generally located east of the process plant. The crushed ore stockpile is a fully enclosed area and will accommodate 47,000 tonnes of total ore capacity (27,000 tonnes live capacity), providing about one day of live storage for the mill. Ore will be transported to the mill by conveyors. Ore Milling and Processing Plant The mill will include tertiary ore crushing, ball milling, carbon-in-leach, cyanide destruction, carbon stripping, electrowinning, and refining. The mill will be built in two stages: Phase 1 will be capable of processing up to 12,000 tpd of ore and Phase 2 will bring the plant capacity up to 30,000 tpd. Ore processing will be carried out by conventional methods using a combination of gravity separation and cyanidation for gold recovery, followed by in-plant cyanide destruction using the SO2/air oxidation process. Tailings will be pumped via a slurry pipeline to the TMF located approximately 5 km from the process plant. On-going ore processing plant water requirements will be derived from water recycled from the TMF. There will also be a need for additional surface water takings, likely from Kenogamisis Lake (amounts to be determined by operational water balance). Excess site water will be treated and discharged to Kenogamisis Lake. Such discharge will meet applicable federal and provincial effluent discharge requirements. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.3

8 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) Tailings Management Facility The TMF site selection process was generally carried out in accordance with Environment Canada s Guidelines for the Assessment of Alternatives for Mine Waste Disposal (Environment Canada, 2011). The location of the TMF considered technically and economically feasible alternatives, the use of natural topography for containment and ensuring all tailings storage is located in a single location. The location also considered the Project s environmental footprint and existing land tenure. The TMF for the Project was conceptually designed to satisfy the design criteria of 150 Mt of tailings, dry density of 1.44 t/m3 and volume of Mm 3 The TMF will also be constructed in a number of stages, with Stage 1 having capacity to store the tailings production at a milling rate of 12,000 tpd, and the relocated historic MacLeod tailings from stripping activities required for open pit construction (estimated to be 1.32 Mt). Subsequent raises, to provide additional storage capacity, will be carried out to coincide with operations, but will likely be done on a two year cycle, and consist of downstream raises. All tailings will be assumed to be PAG and stored subaqueous in the TMF. Based on available information of subsurface soils, it is not likely that suitable impermeable soils will be available in the area for dam construction and therefore it has been assumed that rockfill gravity structures will be required with an upstream impermeable membrane and seepage cutoff. Rockfill will be sourced from NAG mine waste rock. All containment structures for the TMF will be designed in accordance with: Canadian Dam Association Dam Safety Guidelines; Ontario Dam Safety Guidelines ; and MNR Lakes and Rivers Improvement Act requirements. Preliminary consultation on the location of the TMF presented in the April 2014 Project Description indicated initial comments/concerns, particularly from aboriginal communities, regarding the proposed in-filling of Lake A-322. Premier maintains their continued intent in ensuring the protection, conservation and wise management of the environment. Therefore, in response to comments and concerns raised, and the evolution of the Project, Premier has identified an alternative location for the TMF. The proposed TMF location is still considered to be preliminary and will be subject to further evaluation through the MMER alternatives assessment process that will be undertaken in parallel with the Federal EA process. Mine Water Treatment Facility Process water treatment is anticipated for mine contact water on-site, ore pad runoff, waste rock pile runoff, and any excess from the TMF discharge. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.4

9 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) As cyanide in tailings will be destroyed in the mill using the Air/SO2 treatment method, the parameters of concern will likely be arsenic, metals (likely copper from the Air/SO2 treatment), TSS, and potentially ammonia. It has been assumed that water treatment will be carried out using a high density sludge clarifier / thickener system. Any excess ammonia will be treated by a typical acidification/degassing system. The effluent will at a minimum meet MMER Schedule 4 limits. As the Project progresses and the flows and concentrations of effluent parameters are better understood, further refinement of the best treatment strategy will be possible. Internal Access Roads and Pipelines The main access to the Project will be via the western leg of the existing Highway 11. This access to the Project site will be used by personnel, material deliveries, and haulage trucks transporting material to the mill. Upgrades to the road will not be required as it is assumed to be currently rated for the loads expected. The road will be maintained by Premier personnel year round. Premier will also own and maintain internal site roads which will link the main site facilities. Large haul truck traffic and other site vehicular traffic will be separated where appropriate. Pipelines will be needed to transport and dispose of water/waste between various facilities, including the open pit, mill/processing plant and TMF. A pipeline will also be constructed to provide freshwater for potable and process requirements. A on-site gas pipeline will also be required to supply the power plant. It is anticipated that excess treated effluent from the TMF will be pumped via pipeline to the receiving water after a downstream polishing pond. The location and dimensions of pipelines will be confirmed as the Project progresses. Parking Areas Two parking areas have been provided for the Project, including: a parking facility at the entrance of the plant site for the mine operations and maintenance crews, offices/work areas for all mine technical, supervisor, and management personnel, and mine rescue equipment maintenance and storage; a parking area for the open pit equipment close to the mine maintenance shop. Mine Dry, Office Building and Assay Lab A two-storey 50 m x 22 m mine dry and office building has been included for this Project. The mine dry will be capable of accommodating 300 people and the office building will be comprised of conference rooms, washroom facilities, mine rescue, first aid and filing rooms as well as office for management staff, operating, geology, engineering and administration personnel. An assay lab will be built as a separate building located between the Administration building and the mine maintenance shop. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.5

10 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) Mine maintenance Shop and Warehouse Building The shop and warehouse building will be approximately 100 m x 30 m. The shop will have seven bays to service open pit trucks and other surface equipment. It will be equipped with an overhead crane and will provide adequate space for the storage of maintenance tool cabinets and other items required for maintaining the mobile fleet. The warehouse will be located in the back of the shop and will store mobile equipment parts and other material required throughout the life of the mine. The repair shop will also have adequate space for office/desks to manage the maintenance of the open pit fleet. Explosives Storage and Manufacturing Explosives needed for Project development will be prepared in a dedicated explosives manufacturing facility. This facility will be located a safe distance from the open pit. The distance between the various buildings that make up the facility (ammonium nitrate storage, emulsion plant, explosives magazines) will be established in accordance with the Quantity Distance Principles User s Manual (Natural Resources Canada, 1995). The facility will be licensed under the Explosives Act. Water Distribution System The water distribution system will provide fire water and service water to all of the surface buildings on the mine site. This system will also provide water for mining personnel working at the mine, for eyewash, safety shower, hand washing, toilets, and possibly for drinking water. The plant site will be connected to the Geraldton municipal potable water system. Upgrades to the current municipal distribution system are required. Sewage Treatment Facility The Ontario Building Code requires wastewater systems with flow rates of greater than 10,000 L/d regulated by the Ministry of the Environment and Climate Change (MOECC) under the Ontario Water Resources Act require an Environmental Compliance Approval (ECA). Based on projections of 300 shift workers and assigning an average unit flow rate of 250 L/person-day, the average sanitary wastewater flow rate would be approximately 75,000 L/d. At this flow rate, a subsurface disposal system would be classified as a Large Subsurface Disposal System. At this time it has been assumed that a package treatment plant will be required with a permitted discharge consisting of an outfall pipe and diffuser to the selected surface water receiver (likely Kenogamisis Lake). The effluent will be treated to meet regulatory requirements. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.6

11 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) Fuel Supply, Conversion, Storage and Distribution Tanker trucks would deliver diesel fuel and gasoline to the site on an as-needed basis for use by heavy equipment and Project vehicles. LNG is also being considered as a potential fuel source. It is anticipated that LNG will be trucked to site during the first few years of mining, however in the longer term a small scale LNG facility may be required. If it is determined that a LNG facility is required it is anticipated that trucking will occur for approximately the first 3 years of operation or until the LNG facility is constructed. If an LNG facility is not required trucking will occur for the LOM. The LNG facility will be located in relatively close proximity to the power plant. The anticipated processing capacity of the LNG facility is 20 metric tons per day with a storage capacity of 450 tons (14 days of storage on site) at full operation (assuming a density of 550 kg/m 3 for LNG). Fuels would be stored in approved above-ground storage tanks equipped with secondary containment in accordance with provincial regulations and standards. All fuel storage and distribution infrastructure would be constructed to modern engineering standards and would be approved under provincial legislation requirements. Stationary mine equipment would be fueled with a fuel-dispensing truck. The precise requirements for on-site fuelling will be determined during the Feasibility Study. Power Generation and Distribution System Power for the Project will be generated on-site; up to 56 MW of installed power generation capacity is anticipated to be required for the Project at full operation. 20 to 25 MW are anticipated to be required for Phase 1 and 35 to 40 MW are anticipated to be required for Phase 2 (assuming 40 MW of running capacity and 16MW of standby capacity). A new Project substation will also be required on-site. The power plant will be fueled by natural gas. All site primary power distribution will be via overhead lines, with local outdoor type e-houses for transformers and load centres at each point of utilization. General site lighting will be a combination of power line pole mounted fixtures and building mounted fixtures at the offices, shop, and other miscellaneous buildings. Domestic and Solid Waste Handling Facility Non-hazardous domestic solid waste may be deposited in an on-site landfill, unless a suitable offsite landfill with sufficient capacity can be found. Hazardous solid and liquid waste will be hauled off-site by a licensed contractor. Solid waste will be collected in steel bins and recycled and reused to the extent practical. Paper and cardboard will be recycled; waste steel will be sold as scrap; wood and plastic will be salvaged and recycled where possible. Non-hazardous domestic solid waste may be deposited in an on-site landfill, unless a suitable off-site landfill with sufficient capacity can be found. Recyclable solid materials and garbage may be collected by a local contractor for recycling or disposal of the garbage. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.7

12 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) All waste disposal shall be undertaken in accordance with existing regulations. Contractors shall be required to conduct all day-to-day operations in such a manner as to avoid creating any unpleasant appearances or any conditions that will be detrimental to the surrounding area. The contractor shall ensure that waste oils, fuels, and hazardous wastes (if any) shall be handled in a safe manner. Contractors will be required to transport, store and handle all such substances as recommended by the suppliers and/or manufacturers and in compliance with all applicable federal, provincial or municipal regulations. Key Project Activities Existing Property Acquisitions Premier intends to acquire existing properties, some of which are currently inhabited, as a result of the Project. This includes 37 houses and 5 vacant lots in the MacLeod Townsite, a public park in the MacLeod Townsite, 12 houses and 11 vacant lots in the Hardrock Townsite, a police station, a discovery centre, a headframe and a gas station/general store. Site remediation associated with the gas station and the historic MacLeod tailings will be evaluated by Premier. Premier anticipates that some holes on the Kenogamisis Golf Club course will likely need to be relocated as a result of the Project. Premier currently owns the golf course property and leases it to the Municipality. Realignment of Highway 11 and Potential Relocation of MTO Patrol Yard As the ore deposit is partially located underneath Highway 11, realignment of a portion of the existing Highway 11 is required to accommodate the proposed open pit. A Highway 11 feasibility route study was undertaken by Stantec in July The Study identified and assessed alternative routes around the open pit. The Study provides a framework for future discussion with the MTO, and provides recommendations to carry-forward more detailed studies to confirm a recommended route for Highway 11. This new road will continue to by-pass the Project, connect with Michael Power Blvd and will provide access to Geraldton. As Project planning continues to advance, mining feasibility studies have identified a 500m safety setback from the open pit. A highway corridor has been identified for evaluating realignment options. Re-location of the MTO Patrol Yard may also be required depending on selection of the preferred highway alignment. Watercourse Realignments The Project has been developed in order to select watercourse realignments with the aim of minimizing the overall environmental effects to flow regimes, water transfer between subwatersheds, fish and fish habitat, and to maximize Project efficiencies. As part of the proposed development of the TMF Goldfield Creek will be diverted/re-aligned. Engineering and environmental studies are ongoing to determine how the division/re-alignment cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.8

13 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) will be undertaken and where the new channel will be located. The SW Arm Tributary located within the footprint of the proposed waste rock storage area may also be re-aligned along with a number of smaller watercourses generally located within the golf course area. Where realignments are not possible, in-filing may be considered. Realignments will require further investigation and review as engineering studies are advanced. Historic MacLeod Tailings A portion of the historic MacLeod tailings will likely be required to be relocated as a result of the Project. At this time, it is anticipated that the tailings will be stripped and placed into the TMF. HONI Substation and Associate Overhead Transmission Lines A potential relocation of the HONI substation and associated overhead power lines is also anticipated to be required as a result of the proximity of the open pit, discussions with HONI are ongoing. Natural Gas Pipeline Discussions are ongoing with TCPL and Union Gas to confirm the need for a new gas distribution pipeline. If the need for this pipeline is confirmed it is assumed that the existing distribution line, located to the west of Geraldton, would be twinned. It is anticipated that the line would be approximately 10 km in length. At this time is has been assumed that the owner/operator for this pipeline would be Union Gas. This will be confirmed as the Project progresses. 2.1 EMISSIONS, DISCHARGES AND WASTES Updates to emissions, discharges and wastes as a result of the additional Project infrastructure identified are provided below. These sections should be read in conjunction with the April 2014 Project Description Atmospheric Emissions Air Contaminant Emissions Emissions from the power plant (natural gas fired) will be primarily nitrogen oxides, carbon monoxide, carbon dioxide, fine particulate matter (PM2.5) and trace emissions of sulphur dioxide (due to the odourant in the natural gas). No significant air emissions are anticipated to be associated with the LNG facility, as the feedstock will be natural gas from the pipeline (which will already have acid gases removed). cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.9

14 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Updated Proposed Facilities, Infrastructure, and Activities July 28, 2014 (Updated August 01, 2014) Air quality modelling for both the construction and operation phases will be carried out in the EA. Environmental effects of the Project on air quality will be considered and mitigated where appropriate. Noise Emissions Noise source modelling will be carried out and noise-related environmental effects will be considered and mitigated where appropriate Liquid Discharges and Management The following section remains unchanged from the April 2014 Project Description. At this time, no direct discharges of water are anticipated from the power generation facility. The LNG facility is not expected to produce any wastes. The gas pre-treatment system in the LNG facility will remove part of the water, CO2, propane, butane, ethane, etc. and we will most likely send that stream to one of the system on site that produces heat for buildings/systems Solid Wastes and Management The following section remains unchanged from the April 2014 Project Description. cm w:\active\ \ea reports\federal\project description report\addendum\rpt_60946_pdr-addendum_ _fin_updated aug 01.docx 2.10

15 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Appendix A Preliminary General Layout (Current as of July 28 th 2014)

16 N AR N I IM Y L PRE OR F T N O NO I T UC R T NS CO S S E GR O R P IN S O C R FO R E D UN T N E MM 0E N IO S I V RE

17 N Y PRE AR N I IM L R O F NOT CTION RU T S CON S S E GR O R P IN S C R O F T N E OMM 0B N SIO VI E R ER D N U NOTE :NAD83 DATUM - UTM ZONE 16 -CONTOUR INTERVAL : 5m. CONTOURS FROM AMEC SMOOTH CONTOURS

18 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Appendix B Aboriginal Consultation Updates (April 23 rd to August 1 st 2014)

19 The following table provides an update to key consultation activities conducted to date. Table 1.1: Aboriginal Consultation Update (Key Activities from April 23 rd to August 1 st 2014) Activity Date Target Group Employment of Environmental Monitors from all Aboriginal Communities and engagement in environmental baseline program Circulation of Biophysical Fieldwork Methodologies for review and comment Ongoing Long Lake 58 First Nation; Ginoogaming First Nation; Aroland First Nation; Métis Nation of Ontario (Region 2); and, Red Sky Métis Independent Nation. April 29, 2014 Long Lake 58 First Nation; Ginoogaming First Nation; Aroland First Nation; Métis Nation of Ontario (Region 2); and, Red Sky Métis Independent Nation. Designation Request Received May 8, 2014 From Aroland First Nation Receipt of Comments regarding Biophysical Fieldwork Methodologies May 12, 2014 Ginoogaming First Nation Letter of Intent sent to Aboriginal communities May 23, 2014 Long Lake 58 First Nation; Ginoogaming First Nation; Aroland First Nation; Métis Nation of Ontario (Region 2); and, Red Sky Métis Independent Nation. Response to Letter of Intent May 26, 2014 Aroland First Nation Response to Letter of Intent May 28, 2014 Long Lake 58 First Nation Open House Events June 24, 25, Residents in Longlac, Geraldton and Nikina Long Lake 58 First Nation.

20 Table 1.1: Aboriginal Consultation Update (Key Activities from April 23 rd to August 1 st 2014) Activity Date Target Group See comments received from open house events below Long Lake #58 JRC Meeting June 26, 2014 Long Lake 58 First Nation. Response to Ginoogaming First Nation s comments on the Biophysical Fieldwork Methodologies Circulation of an updated mineral resource estimate associated with the Hardrock gold deposit Circulation of indicating Premier has submitted a request for a Voluntary Agreement to the Ontario Ministry of Environment and Climate Change to have the Environmental Assessment Act apply to the Project, and that Premier will also be submitting a Project Description Addendum to the Canadian Environmental Assessment Agency. June 11, 2014 Ginoogaming First Nation July 14, 2014 Long Lake 58 First Nation; Ginoogaming First Nation; Aroland First Nation; Métis Nation of Ontario (Region 2); and, Red Sky Métis Independent Nation. July 28, 2014 Long Lake 58 First Nation; Ginoogaming First Nation; Aroland First Nation; Métis Nation of Ontario (Region 2); and, Red Sky Métis Independent Nation.

21 Summary of June 2014 Open House Comments/Questions Which meeting did you attend? Do you have any questions or comments specific to the proposed Highway realignments? Do you have any questions or comments about the Project? Do you have any additional information about the local environment? Do you have any other comments? Longlac Is it possible to be put on a list to bid on the work. AZA has equipment and more experience since we started. If there is an application for tender process please add us. (OMBABIKA RESOURCES ) We are beginning to build within 20 km s of the open pit site. We have a number of members that will need work and we also have access through our LDM-AETS. Can we develop a MOU on possible partnerships or set aside since we are only 20 km away? Longlac No I would greatly appreciate that you keep the Greenstone community informed at all times about the project. We do have a values map that has covered mostly the Lake Nipigon Forest however it was due to funding. We do have values, land usage & traditional areas in the areas surrounding the project area and would appreciate a personal meeting. I am very happy that Premier is being this responsible in regards to the environment of the Greenstone region. With the issues surrounding the lake, I would suggest setting up a site visit invitation. Go do an assessment with the communities and then they can verify your data. Nobody wins with a JR, but the lawyers. You will need to reach the grass roots people to change their way of thinking. Make sure people understand, if they don t they ll never trust the project. I would like to see the name of our organization MTW Employment Services in the Training section on the slide titled Employment and Training Opportunities. We are the only organization that provides the services for Employment Ontario; we could play an important role in the employability skills for new hires and future workers of Premier. Geraldton This was a great opportunity to address all the rumours by allowing me to get to the facts. Geraldton A route closer to the North would be more beneficial to the Town of Geraldton The project will be beneficial to business and entrepreneurs in the area. - The change of the highway would bring new businesses to town & could bring more traffic into town.

22 Which meeting did you attend? Do you have any questions or comments specific to the proposed Highway realignments? Do you have any questions or comments about the Project? Do you have any additional information about the local environment? Do you have any other comments? Geraldton No No No Just waiting to make a deal with my MacLeod property Geraldton Geraldton Long Lake #58 Long Lake #58 Building the highway closer to the Town of Geraldton will have a positive impact on local economy. Travelers will stop in town for food and accommodations. The Municipality s cost for maintaining the Michael Power Blvd will be reduced considerably due to relocation of hwy. The closer the highway is to the North the more beneficial it will be to the businesses in town. No questions, just hope that the road is closer to the present highway. Not really, I think it wouldn t interfere with anything. I had concerns about the dust & the noise & tailings but received positive answers. Looks like the project s going ahead, would like to know possible spin offs. As long as our rivers and lakes are not contaminated the mine could go ahead. - - Will this affect water system or the moose population? Whatever affects the Kenogamisis Lake will affect Long Lake. Closer to Geraldton could bring in new & also more employment opportunities. Is there any information being provided in regards to spin offs, private businesses? -

23 Which meeting did you attend? Do you have any questions or comments specific to the proposed Highway realignments? Do you have any questions or comments about the Project? Do you have any additional information about the local environment? Do you have any other comments? Long Lake #58 Long Lake #58 No, this question is irrelevant to what s really important. How can we be sure that there won t be a contamination to the water or how do we know that the water filtering area will stay contained? What if the contaminated soil / water gets into the lakes & rivers and starts poisoning people in surrounding Greenstone, will you have a Meet & Greet for fixing that? Didn t Premier do a thorough job of learning about our water systems, both underground & surface before initiating the start dates of development? Maybe this project should be delayed for 5 to 10 years or until we are reassured that you all know the areas in which you intend to store a poison with the potential of killing everything but dirt. No No No but don't destroy it. No I would like to know the progress of every other (in surrounding area) Mine Premier has dug & later restored back to its natural state. Going back 40 years would suffice. I want to know if those places have successfully been restored. My motive is that my children s children s children will continue to live here & I want to be sure that they won t be exposed to water & land that ll surely kill them or force them to leave. Why reopen the Geraldton Goldmines when there is much to be had far, far up north within The Ring of Fire? It s far from where anyone lives and its got enough raw ore, gold, etc to go around for a very, very long time. I will keep track of the progress of this Hardrock Mine and if there s any illegal activity like dumping contaminated water, via fracking or accidental spills, you can be sure that we will do our best to have you investigated & brought to justice.

24 Which meeting did you attend? Do you have any questions or comments specific to the proposed Highway realignments? Do you have any questions or comments about the Project? Do you have any additional information about the local environment? Do you have any other comments? Long Lake #58 Long Lake #58 When is it starting?how long will it be? It screws up the store location. Geraldton The east side of Hwy 584 where the new Highway 11 will go could run through a lake bottom & tailings. Geraldton Glad to see proposed corridor North of golf course (ensure it doesn't cut corners & effect course). Suggest arch culverts be employed to ensure drainage & minimal environmental damage that round culverts cause. Will it be a lifetime project? If not how long will it be in place. How many jobs for local natives? Is PG going to get hydro rates at the same price as Detour Gold? Can PG acquire more hydro for the full capacity requirements? The project should consider environmental concerns as well as socio-economic benefits/impacts Minimize impacts to incoming 'clear' water sources on the south west area. 2 streams leave from Goldfield Lake & one from A-322 should not be touched. These 2 streams have not been impacted by previous mining. Do not do it now! - Keep up the great job. Hopefully jobs will start soon to get. The pollution, waste The over capacity of the Geraldton dump will be PG's neighbour. This landfill is still operating with conditions. 2 streams mentioned above are considered 'clean' ie not impacted. The proposed tailing location is not acceptable it should be moved further North to avoid these 2 streams. Also will be less environmental impact. The wetlands associated with 18th & 17th holes are environmental containment areas for arsenic. The cat tails are essential for tying up As. These 2 holes must not be touched. Do I get a percentage? - Socio-economic concerns must be considered. The golf course is critical to the region. One of the few 18 course in the NWR of Ontario. Thisis a great benefit to Greenstone as a tourism attraction & associated economic benefits. If possible do not touch it, if you must limit it and have new holes prepared before any are removed. This must be to the existing standards of the hole removed & fit within the course concept. (As mentioned above don't touch 18 or 17!) The road re-alignment can be a socio-economic benefit. Brings travelers closer to downtown and travelers will actually see the town. Economic development could

25 Which meeting did you attend? Do you have any questions or comments specific to the proposed Highway realignments? Do you have any questions or comments about the Project? Do you have any additional information about the local environment? Do you have any other comments? occur on this corridor. To summarize: 1- move the contaminated tailings location further North so not to impact the 2 streams 2- Keep the Hwy corridor North of the golf course 3-Do not impact the environmental wetland areas on the 17 & 18th holes Feel free to contact me about my comments or if my expertise can be of assistance with your project. I support your project with a few tweaks to enhance the environment & consideration of socio-economic issues.

26 PREMIER GOLD MINES HARDROCK INC. PROJECT DESCRIPTION REPORT ADDENDUM Appendix C Comparison Table of Key Updates to Project Components/Activities

27 Appendix C Comparison of Proposed Facilities, Infrastructure, and Activities Key Project Component Project Description (April 2014) Addendum Submission Key Changes (July 2014) Open Pit 3,650,000 tonnes per year (3.65 tpy) 10,000 tpd of mineralized material processed at the mill during the first three years, and up to 18,000 tpd of mineralized material processed at the mill starting the third year During pre-production, 1,230,000 tonnes of waste, 400,000 tonnes of overburden and 200,000 tonnes of mineralized material will be mined. The estimated LOM for the Project will be 15 years, with 13 years to mine the open pit. This schedule will yield a total of 89,332,152 tonnes of mineralized material at an average grade of g Au/t diluted. The total amount of mineralized material to be processed during the first two years will be 7,300,000 tonnes, for a total of 465,693 ounces of gold. Year 3 represents the first year of full production (up to 18,000 tpd).during years 3-13, 72,270,000 tonnes of mineralized material will be mined and; 2,783,369 ounces of gold will be milled. During the years only stockpiled material will be supplied to the mill. During this time 9,762,152 tonnes of mineralized material will processed and; 143,501 ounces of gold will be milled. Waste Rock Storage Areas Disposal of PAG/ML rock will be separate from the NAG rock is assumed at this time due to leachate concerns. Mine plan estimates approximately 388 Mt of waste rock and overburden will be generated over the life of mine. NAG waste rock and overburden will be stored separately to the south of the pit on cleared ground that generally slopes toward Kenogamisis Lake. Larger pit shell 4,380,000 tonnes per year (4.38 tpy) 12,000 tpd of mineralized material processed at the mill during the first three years, and up to 30,000 tpd of mineralized material processed at the mill starting the fourth year During pre-production, 10,000,000 of waste, 4,000,000 tonnes of overburden and 2,000,000 tonnes of mineralized material will be mined. The estimated Life of Mine (LOM) for the Project is anticipated to be 15 years (however this could range between years depending on the price of gold). This schedule will yield a total of 143,500,000 tonnes of mineralized material at an average grade of 1.05 g Au/t diluted. The total amount of mineralized material to be processed during the first three years will be 13,140,000 tonnes, for a total of 460,000 ounces of gold. Year four represents the first year of full production (up to 30,000 tpd). During years 4-15, 130,360,000 tonnes of mineralized material will be mined and 4,347,000 ounces of gold will be milled. Co-disposal of PAG/ML rock with NAG rock is assumed at this time. Mine plan estimates approximately 505 million tonnes of waste rock and 22 million tonnes overburden will be generated over the life of mine. Waste rock will generally be stored around the perimeter of the open pit. A phased waste rock deposition approach may be considered as appropriate. Waste rock pile height of 90 m

28 Key Project Component Project Description (April 2014) Addendum Submission Key Changes (July 2014) Waste rock pile height of 60 m at a 1.5:1 slope with a bench every 10 m. Ore Stockpile Three separate ore pads will be located east of the mill and are capable of storing up to one million tonnes of mineralized material. Mill Feed Storage Area and Crushing Plant Ore Milling and Processing Plant Tailings Management Facility A truck dump and primary crusher will be located east of the mill and adjacent to the open pit road. The dump will be capable of handling up to 250 tonne trucks. The mill feed storage area is a fully enclosed area and will accommodate 47,000 tonnes of total ore capacity (27,000 tonnes live capacity), providing 1.5 days of live storage for the mill. Ore will be transported to the mill by conveyors (apron feeders). Phase 1 will be capable of processing up to 10,000 tpd of ore and Phase 2 will bring the plant capacity up to 18,000 tpd Tailings will be pumped via a slurry pipeline to the TMF located approximately 8 km from the process plant. Surface water taking likely from Mosher Lake The TMF for the Project was conceptually designed to satisfy the design criteria of 89 Mt of tailings, dry density of 1.44 t/m3 and volume of 62.3 Mm 3 One ore stockpile will be located west of the open pit capable of storing up to 4.5 million tonnes of mineralized material No Key Changes Phase 1 will be capable of processing up to 12,000 tpd of ore and Phase 2 will bring the plant capacity up to 30,000 tpd Tailings will be pumped via a slurry pipeline to the TMF located approximately 5 km from the process plant. Surface water taking likely from Kenogamisis Lake The TMF for the Project was conceptually designed to satisfy the design criteria of 150 Mt of tailings, dry density of 1.44 t/m3 and volume of Mm 3 Preliminary consultation on the location of the TMF presented in the April 2014 Project Description indicated initial comments/concerns, particularly from aboriginal communities, regarding the proposed in-filling of Lake A-322. Premier maintains their continued intent in ensuring the protection, conservation and wise management of the environment. Therefore, in response to comments and concerns raised, and the evolution of the Project, Premier has identified an alternative location for the TMF. The proposed TMF location is still considered to be preliminary and will be subject to further evaluation through the MMER alternatives assessment process that will be undertaken in parallel with the Federal EA process.