Faro Mine Remediation Project - A Risk-Based Approach to Work Planning - April, 2016

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1 Faro Mine Remediation Project - A Risk-Based Approach to Work Planning - April, 2016

2 Agenda Faro Mine Site Background History Site Overview Conceptual Closure Plan Remediation Schedule Faro Mine Site Project Challenges Faro Mine Site Risk-Based Work Plan Degrading Site Conditions (North Fork Rose Creek) Engineering Risk (Down Valley Hydraulic Upgrades) Next Steps 2

3 Faro Mine Site History Timeline Faro Mine Site History OPERATION - Open pit mine produced lead and zinc 1998 RECEIVERSHIP - Last operator (Anvil Range Mining Corporation) went into receivership and Deloitte and Touche court -appointed Interim Receiver DEVOLUTION - Authority to manage public lands and resources, including abandoned mine sites, was transferred to the Government of Yukon (YG). -INAC maintained liability and responsibility for funding the remediation of the Faro Mine; YG took over administration and control of land and water -The First Nations identified as having been most affected by the mine are the Ross River Dena Council, Liard First Nation, Kaska Dena Council and Selkirk First Nation 2006 OBJECTIVES All three parties agree on Closure Objectives for the Faro Site. 1. Protect human health and safety 2. Protect and, to the extent practicable, restore the environment including land, air, water, fish and wildlife 3. Return the mine site to an acceptable state of use that reflects pre-mining land use where practicable 4. Maximize local and Yukon socio-economic benefits 5. Manage long-term site risk in a cost-effective manner CONCEPTUAL CLOSURE PLAN - All three parties agree to the preferred closure options. 3

4 Faro Mine Site Overview 4

5 Faro Mine Site Conceptual Closure Plan Water Management Capture Acid Rock Drainage Seepage/Runoff Upgrade Surface Water Diversions Dams and Impoundments Upgrade Dams and Spillways Stabilize Open Pit Wall Tailings and Waste Rock Regrade and Cover Tailings Regrade and/or Cover Waste Rock Other Demolition of Infrastructure Remediate Contaminated Soil 5

6 Faro Mine Site Remediation Schedule Phase 1 Project Assessment Phase 2 Project Definition Phase 3 Project Implementation Phase 4 Monitoring and Maintenance Site Assessment Care and Maintenance Identify Remediation Approach Conceptual Closure Plan Interim Remediation Work Regulatory Approvals Care & Maintenance Full-Site Remediation Post-Remediation Adaptation Care and Maintenance Water Treatment Long-Term Monitoring All funding provided by the Federal Contaminated Sites Action Plan 6

7 Faro Mine Site Project Challenges October 2013 In October 2013, elevated level of zinc was discovered through ongoing routine monitoring March 2014 The project drills seven wells at the toe of the Intermediate Waste Rock to try and find the source of the seep. July 2014 The project drills ten additional wells upstream of the Rock Drain to try and find the source of the seep. January 2015 Newly constructed Seepage Interception System commences operation. 7

8 Faro Mine Site Risk-Based Work Plan Participants: INAC & Yukon Government Independent Peer Review Panel Constraints: Limited funding and timing ($225M over 4 years) Methodology: Consequence (Environmental, Special Considerations, Legal, Costs, Community/Media Reputation, Human Health & Safety) Severity (Low, Minor, Moderate, Major, Critical) Likelihood (Almost Certain, Likely, Possible, Unlikely, Very Unlikely) 8

9 Faro Mine Site Risk-Based Work Plan Conceptual Closure Plan: Divided into 10 sub-projects The Scenario: (sub-project #1) won t be completed until (year) and, recognizing the ongoing deterioration of site conditions, results in additional significant impact on a valued ecosystem component. Lessons Learned: Ensure the right people are involved in the process Clearly articulate all constraints, assumptions, decisions No such things as too much information! Challenge all assumptions (no status quo option). 9

10 Faro Mine Site Risk-Based Work Plan Work Package Risk Notes 10a North Fork Rose Creek Diversion Very High Implement! 1 Water Treatment Plant High Mitigation Plan 8 Waste Rock High Linked to 10a 2 Infrastructure Upgrades Moderately High Assess Risk 10b Faro Creek Diversions Moderately High Mitigation Plan 7 Tailings Moderate Down 9a Cross Valley Dam Moderate Valley 9b Intermediate Dam Moderate Hydraulic 10c Rose Creek Diversion Moderate Upgrades 3 Building Demolition Low n/a 4 Emergency Tailings Area Low n/a 5 Cross Valley Dam Seepage System Low n/a 6 Surface Water Management Low n/a 10

11 Deteriorating Site Conditions - North Fork 11

12 Engineering Risk Down Valley Intermediate Dam Spillway Rose Creek Diversion Channel 12

13 Next Steps Design: North Fork Rose Creek Diversion (2016) Down Valley Hydraulic Upgrades ( ) Closure Plan ( ) Regulatory: Closure Plan ( ) Implement: North Fork Rose Creek Diversion ( ) Down Valley Hydraulic Upgrades ( ) Closure Plan (2021+) 13

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