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October 16, 2014 --- Vol. 08, No. 42October 2014

Nunavut board gives thumbs up to Meliadine gold project

The Nunavut Impact Review Board Oct. 10 said it has completed its review of Agnico Eagle Mines Ltd.’s Meliadine gold project and submitted its final hearing report, including recommendations, to Canada’s Minister of Aboriginal Affairs and Northern Development Canada for his review and decision.

The high-grade Meliadine gold project has 2.8 million ounces of gold in proven and probable reserves (12 million metric tons at 7.4 grams per metric ton) and a large mineral resource. The reserves are mainly in the Tiriganiaq deposit, and the resources are in Tiriganiaq, plus another five nearby deposits within a large land package that is nearly 80 kilometers (50 miles) long. The property is located near the western shore of Hudson Bay in the Kivalliq region of Nunavut, about 25 kilometers (15.5 miles) north of the hamlet of Rankin Inlet and 290 kilometers (180 miles) southeast of the Meadowbank gold mine.

Equipment, fuel and dry goods depend for transportation on the annual, warm-weather sealift by barge to Rankin Inlet via Hudson Bay, while personnel, perishables and lighter goods arrive at the Rankin Inlet regional airport. A new all-weather gravel road links the camp with Rankin Inlet, which significantly reduces the transportation and logistical costs for exploration and development work.

After a thorough review of the potential ecosystemic and socio-economic impacts of the proposed project, the Nunavut Impact Review Board concluded that Meliadine may proceed, in accordance with the terms and conditions recommended in the final hearing report.

The Meliadine project involves the construction, operation and eventual closure and reclamation of five open-pit mines and one underground mine northwest of Rankin Inlet. The project also involves the development of associated infrastructure including expansion of the all-weather access road between Rankin Inlet and the mine site at Tiriganiaq, utilization of the existing Rankin Inlet airport for air transportation, use of a spud barge and development of a tank farm and laydown area at Itivia Bay for project shipping and air transportation of gold south for final refinement and sale.

An assessment of the project was initiated by the Board following release of a positive conformity determination by the Nunavut Planning Commission on June 8, 2011. The project since has progressed through the Board’s screening and review processes under Article 12 of the Nunavut Land Claims Agreement, with numerous community visits, technical meetings and opportunities for the public and interested parties to participate and provide their input to the Board, leading to a final hearing in Rankin Inlet Aug. 21-27 that attracted more than 75 participants.

The Board heard from elders, youth and other representatives from the affected Kivalliq communities that there is optimism that the project will bring employment opportunities and leave a positive legacy if developed correctly. The Board also heard that the project must be developed in a way that balances these economic opportunities with environmental protection and preserving the cultural and overall wellbeing of community residents, Nunavummiut and Canadians in general.

Key recommendations in the final report include:

• Requiring Agnico Eagle Mines Limited to conduct further analysis supporting the design phase, consideration of environmental effects and a monitoring program to ensure that facilities managing mine tailings and waste rock remain stable and do not result in contamination of nearby water bodies;

• Requiring Agnico Eagle Mines Limited to develop and implement monitoring and mitigation strategies that reflect the precautionary approach and adaptive management principles to monitor and limit potential for effects, including cumulative effects, on caribou and marine mammals;

• Requiring that working groups with membership including Agnico Eagle Mines, the Kivalliq Inuit Association, participants from local communities and government representatives be established to address issues in relation to terrestrial wildlife, including caribou, and the aquatic environment, including fish and fish habitat;

• Requiring that Agnico Eagle Mines Ltd., in consultation with local and government representatives, develop and communicate “rules of the road” to ensure the safe use of the expanded all-weather access road by mine and public traffic; and,

• Proposing that a project-specific Socio-economic Monitoring Program be developed, supported by a working group of key participants, including Agnico Eagle Mines, KIA, the Kivalliq communities affected by the project, and relevant government departments, and recognizing that the information from this program may be an important contribution to existing regional and territorial socio-economic monitoring programs.


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