Permitting Moving Steadily Forward
The Company's principal focus was to advance the Prairie Creek Property towards receiving a Class "A" Water Licence and associated Land Use Permits, through the regulatory process established under the Mackenzie Valley Resource Management Act, that will permit the further development and subsequent mine production at Prairie Creek.
Advances were made on several permits, details of which can be found in the Company's MD&A for the year ended December 31, 2012. Highlights as follows:
Class "A" Water Licence (Operations): On March 15 2013, the Mackenzie Valley Land and Water Board (the "Water Board") issued a draft Water Licence and draft Land Use Permits. This Water Licence will entitle Canadian Zinc to conduct mining, milling and associated activities at the Prairie Creek Mine site, dewater the underground mine for the purpose of mining, use water for processing and domestic purposes, and to dispose of waste for mining and milling, and backfill paste tailings and waste rock into the underground mine. The Land Use Permits will authorize construction and other activities on the Prairie Creek Minesite and on the winter road Transfer Facility near the Liard highway.
The Water Board circulated the draft Water Licence and draft Land Use Permits to the government agencies and departments and to interested parties and requested comments by April 12, 2013. Canadian Zinc will have a further period of one week to review any comments and to respond to the Water Board with its own comments. The revised draft Licence and draft Land Use Permits will then be submitted to a meeting of the Water Board for formal approval. Following approval by the Water Board, the Water Licence will be sent to the federal Minister of Aboriginal Affairs and Northern Development for ratification. Following receipt of comments and any permit revisions, the draft licence and permits, with conditions will be formally considered by the Water Board. Following approval, the licence will be forwarded to the Federal Minister of Aboriginal Affairs and Northern Development ("AANDC") for final ratification, which is anticipated in mid-2013.
Road Land Use Permits (Operations): In January 2013, the Water Board issued the Company Land Use Permit MV2012F007, for the establishment and operation of the winter road that will service an operating Prairie Creek Mine. The Land Use Permit was issued for a period of five years ending in January 2018. CZN was also issued a Type "B" Water Licence MV2012L1-0005, valid for a period of seven years, to allow the limited use of local water resources and disposal of waste during road construction and operations.
New Mine Decline Land Use Permit Issued (Exploration): In May 2012, the Water Board issued a new Class "A" Land Use Permit, MV2012C0008, for the activity of underground decline development, valid for a period of five years commencing May 10, 2012 and expiring on May 9, 2017. The new Land Use Permit entitles CZN to conduct mining exploration and associated activities, including underground decline development, at the Prairie Creek Mine.
Class "B" Water Licence Amended and Extended (Exploration): The Water Board also approved an amendment of the Company's existing Class "B" Water Licence, MV2001L2-0003, for the management, treatment and discharge of mine water from the mine site. The Water Licence was amended to cover the underground development of the new decline from the existing 870m level, including pumping, treatment and discharge of water inflows using the existing water treatment infrastructure, and placement of waste rock on an existing waste rock pile. The term of the Water Licence was extended to September 9, 2019.
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