Volume 3 CLOSING THE LOOP: RECLAMATION AS AN INTEGRAL PART OF RESPONSIBLE MINING In Yukon, reclamation planning is done before a shovel even breaks ground. When the United Keno Hill Mine in central Yukon closed down in 1989, it brought an end to more than seven decades of successful silver production. Approximately 40 different mines operated in the district at various times, producing more than 200 million ounces of silver. In its heyday, the district was amongst the largest silver producers in the world. However, after its closure, it left a challenging legacy of environmental damage. The mines at Keno Hill operated under the legislation of the day, before there was wide-spread understanding of how mining without proper mitigative measures could harm the environment. No reclamation had been done. A couple of decades later, the Keno Hill Silver District is entering yet another phase of its life. Now owned by Alexco Resource Corporation, the district is a case study illustrating the strengthened environmental awareness shared by the public and the mining industry. Along with the changes in attitude and understanding, mining methods and regulations have undergone a great shift in Yukon in the past twenty years. Reclamation is now a key part of every mining operation, both old and new. Alexco saw opportunity in this new era of environmentally-responsible mining. It took the unique approach of combining environmental care and maintenance, mine cleanup, and mineral exploration and development in its corporate model. “We knew that hundreds of abandoned mines like Keno Hill exist all over North America,” says Rob McIntyre, Alexco Vice President, Business Development. “They have environmental problems that need to be dealt with but also potential value in the mineral resources left behind. In the case of Keno, the mine closed down because of economics, not geology. It ran out of money, not ore.” Alexco is carrying out advanced exploration throughout the Keno district with a number of promising targets. Its short-term production goal is to open a mine at the former Bellekeno mine site. In the long term, the company hopes to open a string of high-grade silver mines. At the same time, Alexco is doing environmental care and maintenance of previously-mined areas at Keno Hill and is developing a reclamation plan for the entire district. Continued on page 2. Alexco Resources From the Trenches page 1 Spring 2010 Issue 1 Spring 2010 In this issue... Feature article: Reclamation in Mining Site Profile: Yukon’s Abandoned Mines Employee Profile: First Nation Liaison Officer New Mining Yukon Web Portal Launched Report on Yukon Geoscience Forum and Leckie Award Winners Yukon Prospector of the Year Yukon Mining Statistics Did You Know? Keno 700 Old camp and load out facility. CLOSING THE LOOP: RECLAMATION AS AN INTEGRAL PART OF RESPONSIBLE MINING Did you know... Did you know that zinc is mined in Yukon? Here are a few interesting facts about this Yukon mineral. Continued from page 1. Zinc is called the “Developing a scientifically-valid, technicallyfeasible and publicly-supported reclamation plan to address decades of impact is a complex process and must be very thorough,” says McIntyre. “We’re working together with the federal and Yukon governments, the First Nation of Na-Cho Nyak Dun and surrounding communities to determine the plan’s objectives and goals and what measures need to be taken to achieve them.” economic development opportunities associated with mining and in helping to ensure that the environment is protected. The Keno district is in the traditional territory of the First Nation of Na-Cho Nyak Dun, which has signed an exploration cooperation agreement with Alexco. It gives the First Nation direct input into project design and development, but protects the First Nation’s right to raise concerns in the assessment and regulatory processes. Zinc is included in most Once the plan is developed, it will be submitted to Yukon’s single environmental and socio-economic assessment process, administered by the Yukon Environmental and Socio-economic Assessment Board. These steps are requirements under Yukon’s rigourous and modern assessment, permitting and regulatory regime, which governs all mineral exploration and development in the territory. Holmes says that a key difference in the Yukon government’s approach is the level of cooperation required. “In the past, governments tended to stand back and wait for a mining company to make a mistake. Now we work together with companies to ensure that their projects are implemented the right way. One element of that is the requirement for closure plans. A company must figure out how it’s going to reclaim a site before it puts a shovel in the ground.” Great Protector – it is used to protect metals (galvanizing) as well as humans, in products such as sun screen (zinc oxide), zinc lozenges, or vitamins. single tablet over-thecounter daily vitamin and mineral supplement. It is believed to possess antioxidant properties, which protect against premature aging of the skin and muscles of the body. Zinc makes up about 75 ppm (0.007%) of the Earth’s crust, making it the 24th most abundant element there. A widely used alloy which contains zinc is brass, in which copper is alloyed with anywhere from 3% to 45% zinc, depending upon the type of brass “Most mines that left behind huge negative environmental legacies were built and operated at a time when there were no environmental assessment laws in place,” says Robert Holmes, Director of the Mineral Resources Branch at Yukon Energy Mines and Resources. “Today, the public expects a smaller environmental footprint and governments must find a way to ensure mining companies meet those expectations. Science has also advanced and we know more about what the effects of various activities are on the environment and how to mitigate them. As well, mining companies themselves have evolved and take a much more holistic approach to their work.” As well, most Yukon First Nations have settled land claims and have a strong interest in pursuing According to the Yukon government’s Yukon Mine Site Reclamation and Closure Policy, a closure plan is reviewed, assessed and updated throughout the life of a mine. The mining company must provide a security deposit, held by the Yukon government, to cover the entire cost of reclaiming its site. The policy encourages progressive reclamation because as reclamation occurs throughout the life of the mine, the security deposit can be gradually paid back. If needed, government can also increase the amount of security. “This is a significant incentive,” says McIntyre. “When you know that reclamation and closure will be done at your cost, you mine differently. It puts the company on the hook both morally and financially. Companies will do reclamation along the way, because it’s in all our best interests. No mine will ever start in Yukon again without an approved reclamation plan and a cheque to take care of the closure costs.” That said, both Holmes and McIntyre acknowledge that there are still challenges to be met. “We won’t see the same kinds of huge negative environmental legacies as in the past, but it’s not possible to guarantee perfection either,” says McIntyre. Alexco Resources Keno 700 Reclaimed “It would be glib to say that environmental problems will never occur again,” says Holmes. “Mining operations are complex and sometimes unexpected issues arise. Our approach at the Yukon government is to manage the risk by using the best science and processes we can come up with. If problems do occur, we have the willingness, creativity, determination and tools to fix them and to ensure that we have a successful mining industry in Yukon. From the Trenches page 2 Spring 2010 Site Profile: Yukon’s Abandoned Mines History: In 1978, owner Cassiar Asbestos Corporation closed and abandoned the mine after it had mined all the available asbestos. Since devolution in April of 2003, Yukon government’s Department of Energy, Mines and Resources (EMR) took over the environmental responsibilities and obligations associated with lands previously under the management of the federal government’s Department of Indian Affairs and Northern Development. The term “Type II Mines” comes from the 2003 Devolution Transfer Agreement and refers to several mine sites in Yukon identified at the time of devolution as having potentially unfunded environmental liabilities related to closure. The majority of the identified Type II sites are under company control. Three mine sites, Clinton Creek, Mount Nansen and Faro mines, have no operator and are termed Abandoned Type II sites or simply Yukon abandoned mines. The three mines are currently managed by Yukon government with funding from the Government of Canada. A fourth site, Keno, formally known as United Keno Hill Mines, was purchased by Elsa Reclamation Development Company (ERDC) who is responsible for the care, maintenance and closure of the mine site. Government funding was provided to address the historical liabilities at the site. Below are mini profiles on each of Yukon’s three abandoned mines and an update on remediation and closure activities underway. Clinton Creek Action Taken: Completed work to environmentally secure the Clinton Creek Mine site. Unsafe structures and equipment were removed and safety measures undertaken to ensure public safety. The site continues to be monitored to ensure these secured measures are maintained. Mount Nansen Standing – 79456 Placer Claims in Good Standing – 17787 Prospecting Leases in Good Standing – 118 77 project proposals were submitted to the YESAA process 51 placer and 26 quartz projects. 9 projects are still under YESAA review Mt. Nanson Mine site Formerly: gold and silver mine Location: 60 km west of Carmacks within Little Salmon/ Carmacks First Nation Traditional Territory Government of Yukon Concerns at the Time: The tailings pond contained high levels of cyanide and metals threatened to spill over the dam and into adjacent river system. Location: 100 km northwest of Dawson City within the Tr’ondëk Hwëch’in First Nation’s Traditional Territory. Quartz Claims in Good authorizations issued to 7 placer and 19 quartz projects. History: In 1999, owner BYG Natural Resources was unable to meet the requirements of the water licence and closed the mine. The company went into receivership and abandoned the property, leaving an environmental liability. Government has since taken responsibility for the care and maintenance of the property. Formerly: asbestos mine Yukon Mining Statistics 26 Mining Land Use Government of Yukon EMR’s Assessment and Abandoned Mines Branch is responsible for closure planning and implementing remediation activities involving Yukon’s abandoned mines. For more information, please contact the branch directly at 3937429 or [email protected] Concerns at the Time: Waste rock from the mine operation had slid and blocked Clinton Creek. Pooled water formed Hudgeon Lake in the creek valley. The lake has little oxygen and fish and vegetation are unable to survive. The primary concern was that Hudgeon Lake could erode the waste rock slide leading to significant flooding downstream. A secondary concern was the tailings from the milling operation which had slid down into the Wolverine Creek Valley restricting water flow and creating two ponds. Action Taken: Water levels behind the dam were reduced and ongoing care and maintenance is underway. The overall goal is to bring it to closure as soon as possible. The First Nation and community are involved in determining this process and its implementation. Continued on page 5. From the Trenches page 3 Spring 2010 opposite Clinton Creek gabions HEADLINE: Employee Profile: First Nation Liaison Officer This is the continuation in a series of profiles on Yukon government employees whose role and responsibilities provide valuable assistance and services to the mineral exploration and development and mining industries. Steven Buyck came to the Minerals Resource Branch in October 2009 on a one year temporary assignment as our First Nation Liaison Officer. Prior to this assignment he was the Environment Officer for the First Nation of Na-Cho Nyak Dun. Steven was born and raised in Yukon with the exception of the time he spent going to college in BC and Alberta. Steven has a Renewable Resource diploma from Yukon College. He has taken numerous short courses in relations to the land claims process, environmental and the wildlife related issues. He has worked throughout Yukon, B.C., and Alaska doing various jobs such as line cutter, staker, pad builder, carpenter, handy man, and field technician. He was also an underground miner at UKHM in Elsa; from there he went back to College and then went to work for his First Nation as the Land Resource Officer. Steven became the Chief of the First Nation of Na-Cho Nyak Dun (2002 – 2005). When asked what he liked about his new role with the Government of Yukon he had this to say. “This job gives me the opportunity to learn more while also teaching others of our First Nations customs, our spiritual beliefs, and our culture and the ever-changing ways of First Nation people”. Outside of his work, he enjoys getting out in the wilderness. “I’m an avid hunter and fisherman that appreciates the natural state and solitude of wilderness values. I also recognize that I do enjoy using my 4-wheeler and snowmobile in order to get out into some of these special places”. He also likes to travel and meet new people. Steven enjoys all outdoor sports and recreational activities and is always keen to learn new things. Steven has jumped in to his new job with great enthusiasm. His positive attitude and team spirit has made his transition to the Mineral Resources team an easy one. Please feel free to contact Steven at [email protected] or give him a call at 867-667-8708. Steven Buyck Steven’s extensive experience in the field and also as a member of a First Nation government has more than prepared him for his role with us. His ability to communicate and understanding of First Nation’s culture and traditions makes him an incredible asset to the Government of Yukon and the mining industry. Steven feels that good working relationships, key contacts and trust are the fundamental blocks in building a solid relationship that can be used to build a cooperative collaboration. MiningYukon.com: New One-Stop Internet Shop for Yukon Minerals and Mining Info In November 2009, the departments of Economic Development and Energy, Mines and Resources proudly launched a new web portal. The portal’s objective is to generate a broad awareness of Yukon as an attractive mineral exploration and mining investment jurisdiction while providing timely and relevant mining information on-line. The portal is part of Economic Development and EMR’s joint implementation of the Yukon’s Mining Investment Promotion Plan. The plan recommended the development of a unified “one-stop shop” which would act as the sole vehicle for Yukon mining information. Visit the portal at www.MiningYukon.com From the Trenches page 4 Spring 2010 Government Honours Outstanding Reclamation Three mining companies operating in Yukon have been honoured with the Robert E. Leckie Award for their outstanding reclamation work in 2009. Dale Corman, President, Western Copper Corporation accepting the Leckie Award for Outstanding quartz reclamation work in 2009. Favron Enterprises Limited received the 2009 Leckie award for outstanding placer mining reclamation in recognition of the work it did cleaning up its site in the Last Chance and Hunker Creek areas, which had been severely impacted from historical activity, and for their exemplary efforts in continual reclamation. Western Copper Corporation received the 2009 Leckie Award for outstanding quartz reclamation for its work recovering two abandoned camps and the clean-up and re-establishment of a well designed camp and airstrip at its exploration project near Pelly Crossing. An honourable mention was presented to Strategic Metals Limited for consistently complying with best management practices and exceeding final decommissioning requirements at its Eureka Creek/ Black Hills operation in the Dawson mining district. Lisa Favron, Favron Enterprises Limited accepting the Leckie Award for Outstanding placer reclamation work in 2009. Government of Yukon The Robert E. Leckie Award is presented annually to mining and exploration companies who have shown outstanding practices in reclamation and site restoration. Efforts can include exceptional environmental stewardship, excellence in social responsibility, or leadership and innovation in reclamation processes. The award was created as a tribute to Robert E. Leckie, a Mayo mining inspector who was dedicated to the development of progressive land use practices for mining. For more information on mining in Yukon visit MiningYukon.com Site Profile: Yukon’s Abandoned Mines Continued from page 3. Faro Mine Complex Formerly: silver, lead and zinc mine Location: 15 km north of the Town of Faro within the Kaska Nation’s Traditional Territory and upstream from Selkirk First Nation’s Traditional Territory. Government of Yukon History: During the 1970s, the mine was the largest lead/zinc mine in Canada. In 1998, owner Anvil Range stopped mining and went into receivership. The property was abandoned, leaving an environmental liability. Government has paid for care and maintenance of the property through a court appointed interim receiver, Deloitte and Touche. Continued on page 6. From the Trenches page 5 Spring 2010 Faro Mine site Site Profile: Yukon’s Abandoned Mines Continued from page 5. Concerns at the Time: Several major issues resulted from the mine’s activities including contamination of water, stability of key physical structures, dust creation and transport and human and animal contact with waste materials. Action Taken: Remediation and recommended closure plans have been developed to address concerns. Planning for final closure and remediation of the Faro Mine Complex has been a major undertaking, led by government. The process has involved over five years of planning, technical studies, community Shawn Ryan and Cathy Wood accepting the Prospector of the Year Award at the Yukon Chamber of Mines Geoscience Banquet. consultations, expert review and cost analysis. It has depended on governments working with affected Yukon First Nations to address issues, discuss alternatives and agree on an option that addresses protection of the environment and human health and safety, while balancing economic costs and benefits. The federal and territorial governments with the Liard First Nation, Ross River Dena Council and Selkirk First Nation are collaborating to provide strategic direction on a long term, comprehensive closure plan. 2009 Yukon Prospector of the Year Volume 3 Issue 1 Spring 2010 This newsletter is produced and published by the Mineral Resources Branch, Department of Energy, Mines and Resources, Government of Yukon. Government of Yukon For more information or to share your feedback, please contact the Mineral Resources Branch at (867) 667-3163 or [email protected]. Contributors: Elaine Schiman, Brigitte Parker Info Sources: EMR’s Assessment and Abandoned Mines Branch, http: //www. nwma.org/Edcation/zinc_ facts.htm, http://en.wikipedia. org/wiki/Zinc Photo credits: Government of Yukon, Alexco Resources The Yukon Prospectors Association president Jim McFaul presented the Prospector of the Year award at the 37th annual Geoscience Forum held is Whitehorse this past November. The award which is presented to a deserving individual for outstanding achievement in the field of prospecting went to Ryanwood Exploration. The husband and wife team of Shawn Ryan and Cathy Wood. From the Trenches page 6 Also announced were the inductees to the Prospectors’ Hall of Fame which is to pay tribute to prospectors whose struggles against seemingly impossible odds, suffered undue hardship, and incurred incredible risk in their search for minerals in Yukon. The 2009 inductees were Jerry Bryde and Park Southwick. Roger Voisine was inducted to the Honour Roll. Spring 2010
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