Canadian Zinc Forges Agreement with NBDB


Canadian Zinc Corp. recently reached a formal understanding with a local First Nations tribal band regarding
exploration and development activities at its Prairie Creek zinc/lead/silver property located in the Northwest
Territories of Canada. The Prairie Creek mine is partially developed with an existing 1,000-mt/d mill and
related infrastructure. (Photo courtesy of Canadian Zinc).
Canadian Zinc Corp. reported in early November 2008 that it has entered into a Memorandum of Understanding (MoU) with the Nahanni Butte Dene Band (NBDB) to establish a mutually beneficial relationship with regard to the exploration and development of Canadian Zinc’s Prairie Creek mine in the south Mackenzie mountains of Canada’s Northwest Territories. The MoU calls for the NBDB to maintain close communications with Canadian Zinc and participate in good faith in current and pending environmental assessment and regulatory processes, while Canadian Zinc will apply its best efforts to employ NBDB members and allow the NBDB community to benefit from business opportunities associated with the exploration and development of the Prairie Creek project. The MoU also provides for the subsequent negotiation of an Impact Benefits Agreement regarding mining operations. The MoU does not define, create, or extinguish any rights of Canadian Zinc or the NBDB and is not legally binding.

The village of Nahanni Butte has a population of about 90 people. It is located approximately 90 km southeast of the Prairie Creek mine site and is the closest community to the mine.

Canadian Zinc also recently signed an MoU with the Liidlii Kue First Nation of Fort Simpson, NT.

The Prairie Creek mine was developed but never operated after metals prices fell in the early 1980s. Existing workings include more than 5 km on three levels. The portal of the lowest access level is located immediately adjacent to an existing 1,000-mt/d mill and mine infrastructure.

Canadian Zinc has applied for permits required for the operation of the mine, and the applications are currently undergoing environmental assessment by the Mackenzie Valley Environmental Assessment Review Board. If brought into operation, the Prairie Creek mine would provide 200 to 220 full-time jobs. The company is targeting minimum employment levels of 35% to 40% northern Canadian residents and 15% to 25% Aboriginal First Nations individuals.

Recent work at the Prairie Creek mine has included rehabilitation work on the access road, completion of a groundwater well drilling program, further engineering assessments, and removal and destruction of all the sodium cyanide that had been stored in drums on the property since 1982. A pre-feasibility study, which is being undertaken by SNC Lavalin, is under way, focusing on detailed mine planning and scheduling, process design and underground tailings disposal.

As featured in Womp 08 Vol 10 - www.womp-int.com