Annual Report Edition, May 2013
5
Dr. David Mchaina,
Vice-President, Environment
and Sustainable Development
Q. Being a good corporate citizen has never
been more important. What is Nuinsco’s
approach to management of its relationships
with its stakeholders?
At Nuinsco, our goal is to build a company that
benefits the communities in which we operate,
our employees, our shareholders and all other
stakeholders over the long term. As a result, we
are committed to health, safety, environmental
protection and sustainability management.
We strive to apply a proactive risk
management approach appropriate to the
local conditions and needs that will meet our
legal obligations as a minimum target, and we
continually evaluate and improve our processes.
In addition, for every project we identify and
engage with our Communities of Interest (“COIs”)
in order to incorporate their views, customs
and cultural attributes in project planning and
throughout the life cycle of our projects and
operations. At Nuinsco and CBay we foster open
communication with our COIs. Community
engagement is a big part of this, and meetings
have been held with the Ouje Bougoumou Cree
Nation (“OBCN”) for the Corner Bay Project in the
Chibougamau region of Quebec, and Aboriginal
Peoples impacted by the Prairie Lake Project in
Ontario.
Q. CBay has past-producing mines and its
projects are the closest to production of any
that Nuinsco has an interest in at the present
time. What approach is needed in Chibougamau
and to projects at this more advanced stage
versus pure exploration projects?
Our aim is to bring the past-producing mines
and new development projects into production.
In order to advance these projects, notably
Corner Bay, Jaculet and Cedar Bay, CBay will be
required to undertake environmental and social
impact assessments for each individual project
to obtain mining and environmental permits.
Presently, we are advancing the development of
an Environmental and Social Impact Assessment
for the Corner Bay Project in order to permit it for
full production. Also advanced are applications
for the Certificates of Approval for the Copper
Rand processing plant and Tailings Management
Area (“TMA”). Companies operating in Quebec
are required to submit extensive restoration
plans before a mine gets into production. We are
currently working on a restoration plan for Corner
Bay. Last year, we submitted a restoration plan
for the Copper Rand Mine and adjacent properties.
We recognize that our success depends on
our ability to establish sustainable relationships
with our COIs. We have developed a good working
relationship with the municipal government in
Chibougamau and are creating a pre-development
agreement with the OBCN for the Corner Bay project.
At the same time, we are concerned with
maintaining existing infrastructure related to the
past operation of projects that we own. We have
an environmental surveillance program that
includes monitoring the physical integrity of the
tailings dams, potential seepage through tailings
dams and the water chemistry of the final effluent.
We are pleased to report that there have been no
spills or final effluent discharge exceedances since
Nuinsco and Ocean Partners assumed ownership
of the CBay assets. All discharges meet regulatory
requirements.
Q. What are the plans for 2013 and beyond
with respect to CBay and its environmental
and sustainability management program?
Our strategy focuses on continuing to build a
resource company operating multiple mines, mine
development projects and exploration programs
and we recognize that sustainability is one of
the fundamental pillars of our corporate strategy.
We will continue to integrate the concepts of
sustainability as well as social and environmental
stewardship into our short- and long-term
strategies and plans with a goal to deliver net
long-term benefits to all of our stakeholders.
At Copper Rand and Corner Bay our near-term
focuses are: creating value for our shareholders;
meeting and exceeding environmental standards;
planning to construct a closure spillway, a dam
raise and a controlled discharge structure for
the TMA; and conducting environmental-effects-
monitoring of our final effluent.
Overall, we will continue to take the following
actions to embed sustainability into Nuinsco’s and
CBay’s decision-making process and management
systems:
•
incorporate sustainability goals and principles
into our projects and operations;
•
establish key performance indicators and metrics
for our sustainability programs and focus on
environmental management performance for our
operations and exploration projects;
•
monitor and track our sustainability performance;
•
establish monitoring programs of our
communications and engagement plans with
COIs; and
•
strive to obtain and maintain the social licence
to operate.
a number of gold targets and was completed
before year end. Results from the first three drill
holes were extremely encouraging, including
near-surface (less than 30 metres) assays from
the McKenzie Vein of 8.62 metres grading
2.31
g/t gold and 3.48 metres grading 5.45
g/t gold, with values peaking at 23.4g/t gold.
Visible gold was observed in hole NH-12-02.
“
Originally identified in 1903, the McKenzie
Vein is the Chibougamau camp’s original gold
showing, however it has not been explored
extensively at surface or along strike. The initial
focus of our drilling was the 100-metre-plus
surface exposure of the vein, yet its strike length is
interpreted to be at least 250 metres and potentially
up to 1,600 metres to the west across Portage
Island,” said Mr. Jones. “The historic gold bearing
structure was only partially mined at depth (starting
at 200 metres) from the nearby Portage Mine,
where it was estimated to have averaged 0.24
ounces of gold per ton. This program has helped to
define and develop not only this structure but also
the other prospective gold targets on the island.”
But the positive results didn’t stop there.
Assays reported in January 2013 included gold
analyses as high as 54.2g/t gold (over 0.29
metres) and intervals including 4.52g/t gold over
5.42
metres and 2.31g/t gold over 2.96 metres.
A number of elevated copper analyses were also
returned. The final results of this initial program
were reported in February 2013, and included
multiple intercepts grading greater than 20.0
g/t gold, with the highest grade core-length
intercept, 93.20g/t gold over 0.25 metres, coming
from a newly-identified geophysical target.
“
We are pleased with the results from DDH
NH-12-11 where we drilled 2.96 metres grading
8.37
g/t gold, including the 93.20g/t intercept.
This is a new discovery, and clearly a result on
which we need to follow up,” said Mr. Jones.
“
On the Hematite Bay gold zone drilling, all
holes, NH-12-14 through NH-12-18, intersected
gold, copper and silver mineralization, including
particularly significant near-surface results from
NH-12-14 of 12.23g/t gold over 2.34 metres
along with a number of other intercepts.”
In March a geophysics program was begun
in preparation for additional, yet to be announced,
drilling. Both Nuinsco and CBay are very
encouraged by the potential and Nuinsco intends
to spend a minimum of $700,000 on drilling and
exploration in the Chibougamau region in 2013
because, as the saying goes, the best place to
find a new mine is in the shadow of a headframe.
As a significant Canadian mining camp the
Chibougamau area, and Nuinsco/CBay’s land
package, has plenty of headframes.
In Conversation With…
Dr. David Mchaina
,
Ph.D, P.Eng.
VP Environment and Sustainable Development
Nuinsco Resources Limited
All intervals are reported as core lengths, since orientation
of the intersected mineralization is uncertain presently.
All intervals reported are uncut with respect to gold.
NWI
Did You Know
Did you know
CBay has the only mill in
the Chibougamau camp.
Did you know
that Chibougamau is
among the largest Quebec mining camps
with copper and gold production dating
back to the early 1900s?
Did you know
that production at Copper
Rand started in 1959?
Did you know
that Chibougamau is only
as far north as Winnipeg?
Did you know
that CBay has the most
prominent position in the Chibougamau
mining camp?
Copper Rand Mill