The MVEIRB is now in the process of determining the scope

Tag : zinc
As reported in the Company's August 7, 2008 news release,applications to the Mackenzie Valley Land and Water Board (the"MVLWB") for operating permits for the Prairie Creek Mine weredeemed to be complete and the MVLWB initiated the preliminaryscreening process and requested comments from interested parties.
The MVLWB has now received comments from a number of parties,including Indian and Northern Affairs Canada ("INAC") and variousFirst Nations. Following a request from the Nahanni Butte DeneBand, as per Article 12 of the Settlement Agreement between theDehcho First Nations and the Government of Canada, INAC referredthe proposed development to environmental assessment.
In its referral INAC letter stated that "INAC supports responsibleeconomic development within a sound regulatory regime in theNorthwest Territories." In particular, INAC cited specific changesor additions to existing infrastructure proposed by Canadian Zincthat need to be further assessed, such as, "the changes tosubsurface tailings disposal, use of the original surface tailingspond as a water management facility, waste rock management plans,sewage treatment plant and power plant upgrade plans."
The Company has received formal notice from the Mackenzie ValleyEnvironmental Impact and Review Board (the "MVEIRB") on August 11,2008 of the referral of the applications to EnvironmentalAssessment. The MVEIRB has created a public registry, available online at www.mveirb.nt.ca/registry , and is now in the process of determining the scope and terms ofreference of the assessment in consultation with interestedparties.
Various aspects of the Prairie Creek project have previously beenthe subject of five separate environmental assessments by theMVEIRB, all of which recommended that the proposed projects shouldproceed. During these previous assessments a considerable amount ofinformation and data has been generated which should assist andexpedite the current review process.
Operations Update:
The Company is also pleased to report that good progress has beenmade on re-opening the road which connects the Prairie Creek mineto the Liard Highway. A new base for the roadbed has now beenre-established in the areas adjacent to active fish bearing water,and fish habitat compensation is now being assessed. Theconstruction crews are currently working away from active flowingwater and carrying out repairs to further protect the road bed fromfuture erosion. In addition, the road route has been slightlyrealigned in places to remove it from direct proximity to PrairieCreek. Ongoing roadwork is anticipated to continue for theremainder of the year.
As noted in a previous press release, Canadian Zinc recentlyreceived all the necessary approvals and permits required toproceed with rehabilitation work on the access road. These includedan authorization from the Department of Fisheries and Oceans ofCanada, a Class B Water Licence from the MVLWB and a Quarry Permitfrom INAC.
Off-Site Transport and Disposal of Hazardous Material:
Ongoing site preparation and care and maintenance work, includingenvironmental management and water treatment, is continuing at thePrairie Creek mine site in preparing the infrastructure as thePrairie Creek mine advances towards operation.
In response to local concerns and environmental sensitivitiesCanadian Zinc has recently removed from the Prairie Creek sitedrums of sodium cyanide that have been stored on the property since1982. The material had been safely stored and monitored in anengineered and covered storage facility. Commencing in 2007, underthe direction of Hazco Environmental Services Ltd. ("Hazco"),Canadian Zinc undertook a program to repack the old sodium cyanidedrums into new overpack drums suitable for transport off-site.Following receipt of the necessary regulatory approvals, an airliftof the repacked sodium cyanide drums and associated repackagingwaste took place utilizing a DHC-5 rear loading Buffalo aircraft,which shuttled the material from the Prairie Creek mine site to Ft.Simpson. From Ft. Simpson Hazco transported the cyanide by truck toCyanide Destruct Systems in Barrie, Ontario and the repackagingwaste was removed to Earth Tech's Swan Hills Treatment Centre inAlberta for destruction and disposal.
Canadian Zinc has determined that sodium cyanide will not be usedin any future mining process.
Commenting on the disposal of the sodium cyanide, Mr. John Kearney,President and CEO of Canadian Zinc, stated that, "Canadian Zincbelieves that operating to the highest environmental standards isparamount to our future plans and, as a Company, we havecontinually strived to both operate and plan for the future in anenvironmentally sensitive manner. This has included working with,and listening to, the local communities in order to address theirconcerns. We are very pleased that we have been able to plan forthe future without the use of sodium cyanide such that the PrairieCreek mine will be able to operate in an environmentallyresponsible manner while providing a tremendous economic boost tothe local area."
Background:
Canadian Zinc's 100% owned Prairie Creek (lead/zinc/silver)Project, located in the Northwest Territories, includes a partiallydeveloped underground mine with an existing 1,000 ton per day milland related infrastructure and equipment. The Prairie CreekProperty hosts a major mineral deposit with a Measured andIndicated mineral resource in the Vein and Stratabound deposits of5.2 million tonnes grading 11.4% Zn, 10.9% Pb, 176 g/t Ag and 0.3%Cu along with an open ended Inferred resource of 5.5 million tonnesof 13.5% Zn, 11.4% Pb, 215 g/t Ag and 0.5% Cu. (Technical Report NI43-101 - David M. Stone, Minefill Services, Inc., Qualified Person,October 2007 filed on SEDAR).
Cautionary Statement - Forward Looking Information
This press release contains certain forward-looking information.This forward looking information includes, or may be based upon,estimates, forecasts, and statements as to management'sexpectations with respect to, among other things, the issue ofpermits, the size and quality of the company's mineral resources,future trends for the company, progress in development of mineralproperties, future production and sales volumes, capital costs,mine production costs, demand and market outlook for metals, futuremetal prices and treatment and refining charges, the outcome oflegal proceedings, the timing of exploration, development andmining activities and the financial results of the company. Therecan be no assurances that such statements will prove to be accurateand actual results and future events could differ materially fromthose anticipated in such statements. The Company does notcurrently hold a permit for the operation of the Prairie CreekMine. Mineral resources that are not mineral reserves do not havedemonstrated economic viability. Inferred mineral resources areconsidered too speculative geologically to have economicconsiderations applied to them that would enable them to becategorized as mineral reserves. There is no certainty that mineralresources will be converted into mineral reserves.