The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Approvals for expanded zinc mine and road expected this year North of 60 Mining News – May 6, 2022
Prairie Creek is home to a previously operated zinc mine in the Nahanni National Park Reserve in Northwest Territories.
NorZinc Ltd. May 4 announced progress on the permitting and updated feasibility for an expanded operation at its Prairie Creek zinc project in Canada's Northwest Territories.
According to a 2021 calculation, Prairie Creek hosts 9.8 million metric tons of measured and indicated resources averaging 9.7% zinc, 8.8% lead, and 139 grams per metric ton silver; and 6.4 million metric tons of total inferred resources averaging 12.9% zinc, 6.7% lead, and 150 g/t silver.
In October, NorZinc published a preliminary economic assessment for a 2,400 metric tons per day mining operation at Prairie Creek that will produce an average of 261 million pounds of zinc-equivalent annually over a 20.3-year mine life.
On the permitting front, the company announced an amendment to the mine Water License and Land Use Permit for expanding Prairie Creek from the currently permitted 1,600 tpd to the 2,400 tpd mining operation outlined in the PEA is advancing through the regulatory process and the draft water license and land permit were distributed for comment on April 14. A final decision by the Mackenzie Valley Land and Water Board is expected for the land permit in June, and a recommendation for the approval of the water licenses by the Northwest Territories Minister of Environment and Natural Resources to be undertaken within 90 days of the decision.
Prairie Creek is encompassed by, but is not part of, the Nahanni National Park Reserve.
In 2019, NorZinc received the necessary authorizations to construct, maintain and operate an all-season road to Prairie Creek that passes through the national park. These approvals, however, are conditional on the completion, review and approval of various management plans by Parks Canada and the Mackenzie Valley Land and Water Board.
NorZinc says it has made progress this year working with the regulatory authorities, Parks Canada, and the Mackenzie Valley Land and Water Board to clarify the additional requirements and advance the conditions of the license and permit to commence construction of the initial phase of an access road to Prairie Creek. In particular, the company and Parks Canada have established a regular meeting schedule and are working closely to meet the necessary permit conditions and comply with all regulatory guidelines to a high standard.
The company has received final or conditional approvals on over 70% of management plans for the first phase of the access road and is expected to complete all phase-one management plan approvals by mid-year. Based on this progress, along with ongoing engagement with the regulatory authorities, the company anticipates final approvals in the third quarter and winter road construction to begin when it is cold enough and conditions are suitable to begin work.
"The company is very pleased with the level of engagement and collaboration of all stakeholders and would especially thank the technical teams at Parks and the MVLWB for their cooperation and guidance during these processes," said NorZinc President and CEO Rohan Hazelton. "With the respect to the expanded 2,400 tpd mine, the receipt of the draft water license and permit is a significant milestone in the advancement of the project and indicates the regulatory bodies recognition of the significant benefits the project will bring to all stakeholders, especially the local Nahæâ Dehé Dene Band and Łı́ı́dlı̨ı̨ Kų́ę́ First Nation communities. We appreciate the continued support by all local communities, and we look forward to advancing the project in order to realize the substantial benefits for all local stakeholders."
Toward updating the Prairie Creek feasibility study, NorZinc is planning to complete 5,300 meters of surface drilling to further validate the geotechnical structural controls and refine the mining dilution volume estimates.
Additional metallurgical samples will also be collected from the drilling for tests aimed at increasing the accuracy of the concentrate quality and recovery forecasts for the first five years of mining.
With this drilling expected to wrap up in October, an updated feasibility study that includes results from the summer-fall program is slated to begin in the fourth quarter.
It is anticipated that this feasibility study will be finalized by mid-2023 and aligned with the necessary procurement commitments required to support the equipment and supplies to be delivered to Prairie Creek over the winter road.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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