Izok Corridor

Project:

Kitikmeot Community

VisitNovember 2013

Drilling at High Lake

2

OUTLINE OF THE PRESENTATION

• Izok Corridor Project Overview

• Review Project Alternatives

• Project Status and Next Steps

Ham camp west of Izok Lake

3

IZOK CORRIDOR PROJECT Summary

The Izok Corridor Project is a proposed zinc-copper-lead development located 250 km southeast of Kugluktuk. The expected life of the mine is approximately 12 years.

The project comprises four parts: 

1. Open pit and underground mines at the Izok Lake and High Lake

2. A single processing plant producing mineral concentrates from Izok and High Lake ore 

3. A port at Grays Bay on the Coronation Gulf; and

4. A 325 km all-season road linking all the sites

Izok Corridor Project Overview

4

IZOK CORRIDOR PROJECTEconomic Evaluation: Reminder

The project proposal filed with NIRB has proven to be not economic. The alternatives considered to improve the economic viability of the Project and take advantage of exploration included:

• Mining schedule (faster at Izok)

• Production rates (increased)

• Execution plan (Izok mined first)

• Moving the mill to the coast

• Using modules (pre-fabricated buildings)

• Adding more ore; pending exploration success

NOTE: No firm decisions have been made on the alternatives

Snack by the James River (2008)

5

IZOK CORRIDOR PROJECTIzok Lake

6

IZOK CORRIDOR PROJECTHam Lake near Izok Lake

Izok Mine

• Izok resource is 14.8 million tonnes zinc, copper, and lead

• Open pit mining

Alternatives summary

• Faster mining rate; would reduce Izok mine life to 5 years from 12 years

• No mill at Izok; mill would be located at Grays Bay

• Izok mine closure would start while High Lake is still in operation

7

IZOK CORRIDOR PROJECTIzok Camp

Izok Mine Overview

8

IZOK CORRIDOR PROJECTHigh Lake

9

IZOK CORRIDOR PROJECTHigh Lake

High Lake Mine

• High Lake resource is 17.2 million tonnes zinc and copper

• Open pit and underground mining

Alternatives summary

• Mining at High Lake would start towards the end of mining at Izok instead of at the same time

• Mining at High Lake would begin 5-7 years into the project

• Camp at Grays Bay would service both High Lake and the Port

High Lake Area Overview

High Lake Deposits

10

IZOK CORRIDOR PROJECT Mill and Road

Mill• Aug. 2012: Proposed mill at Izok to process two million tonnes of ore per year into

concentrate.• Alternative: Mill at Grays Bay processing up to three million tonnes of ore per

year. Mill would be modular and brought to site by barge.

Road• Aug. 2012: Proposed all-weather road connecting mines to new port at Grays Bay -

~350km.• Alternative: Modifications in routing shortening the road by 25 km.

11

IZOK CORRIDOR PROJECT Camps

Camps• Aug. 2012: Camps at High Lake and Izok with small facility at Grays Bay.• Alternative: Main camp at Grays Bay and Izok. Temporary camp at High Lake.

Still under consideration.

12

IZOK CORRIDOR PROJECTModular has been done before

POLARIS (Zinc Mine 1981 – 2002)

IZOK CORRIDOR PROJECTModular has been done before

13

• 32,000 tonne LNG Plant shipped in 2005, same weight and size as MMG’s concentrator barge module

• Statoil recently contracted Dockwise to ship a 45,000 tonne module in 2015

LNG Liquifier - Statoil

14

IZOK CORRIDOR PROJECT Hood Property

Additional resource

• Aug. 2012: Two mine sites: Izok Lake and High Lake deposits (mines) in Nunavut

• Alternative: Add Hood Property as a third deposit. More resource drilling needed before addition of Hood can be confirmed

Timing

• Open pit and underground mining for zinc and copper;

- Aug. 2012: Mine Izok and High Lake at the same time over 12 years

- Alternative: Mine Izok first followed by High Lake. Re-alignment of Izok Road confirmed

15

IZOK CORRIDOR PROJECTGrays Bay

16

IZOK CORRIDOR PROJECTArtist rendering for Grays Bay

17

IZOK CORRIDOR PROJECT Shipping

The proposed shipping activities follow existing surveyed shipping routes through the Northwest Passage.

• Shipping season of 100-120 days per year between mid-July and mid-October.

• Six to eight ships for a total of 14-20 round trips per year. Ship size still being determined.

• 650,000 to 875,000 wet metric tonnes of mineral concentrates shipped out each year depending on final project configuration.

• Resupply includes ~ 45 million litres of diesel oil brought in per year and approximately 25,000 tonnes of other cargo.

Westward passage to Asia

18

IZOK CORRIDOR PROJECT Status and Next Steps

• Project proposal filed with the Nunavut Impact Review Board (Aug. 2012)

• The NIRB recommends to the AANDC Minister that the Project go through a review (December 2012)

• The Minister confirms a review (April 2013)

• MMG requests a pause in the review process until MMG files a revised Project description (April 2013). MMG commits to get back to NIRB in December 2013

• NIRB requests an update on the timing of the revised Project description by November 18, 2013

• MMG has advised the NIRB that we would not be submitting a revised Project description at this point and would provide a Project up-date towards the end of next year

19

IZOK CORRIDOR PROJECTProject Status and Next Steps

Environmental Programs

• MMG will continue to develop and refine environmental management and monitoring programs using data gathered from MMG field programs and input from community forums

• MMG is in the process of finalizing a comprehensive suite of baseline reports for the Project, including:

˗ Wildlife (including: Caribou, Grizzly Bears, Wolves, Muskoxen)˗ Vegetation, landforms and soils ˗ Aquatic environment (including: water quality, fish)˗ Marine environment (including: water quality, fish, marine mammals)˗ Social, cultural and economic information about the Kitikmeot˗ Traditional knowledge

• MMG will continue to collaborate with government and Aboriginal groups on key environmental and planning issues

˗ Participation in Nunavut land use planning process˗ Attendance at upcoming caribou and wildlife workshops

20

IZOK CORRIDOR PROJECTProject Status and Next Steps

2014

• Continue developing design alternatives

• Continue with exploration in the Izok corridor region

• Limited environmental field program. Focus on desktop activities and report evaluation

• Community up-dates

Drill program

21

COMMENTS AND FEEDBACKContact Information

Vancouver, British Columbia

Scott Trusler Heidi Klein

Manager Approvals Stakeholder Relations Lead

E scott.trusler@mmg.com E heidi.klein@mmg.com

Kugluktuk, Nunavut

Donald Havioyak

Community Liaison Officer

E donald.havioyak@mmg.com

T 867.982.3097

Office Location:

2 Amagok Street

PO Box 188

Kugluktuk, NU X0E 0E0

22

IZOK CORRIDOR PROJECT

Thank YouKoana