TSX: NZC $0.085
Zn: $1.01/lb
Pb: $0.92/lb
Ag: $17.10/oz

Regulatory Matters and Permitting

(Information in the Current Regulatory Processess Section is posted in reverse chronological order)

Current Regulatory Processes

All Season Road EA

On April 16, 2014, NorZinc applied to the Mackenzie Valley Land and Water Board ("MVLWB") and Parks Canada for permits to construct, maintain and operate an All Season Road from the Mine to the Liard Highway, and to build and operate an airstrip connected to the road.

The MVLWB referred the applications to the Mackenzie Valley Environmental Impact Review Board ("MVRB" or "Review Board") on May 22, 2014 for environmental assessment ("EA") EA1415-001.

Following various technical meetings, information requests, community hearings and technical reports, the Review Board, in September 2017, issued its Report of Environmental Assessment and Reasons for Decision for the Prairie Creek All Season Road Project for the Prairie Creek Mine (the “EA Report”) and submitted the EA Report to the Honourable Carolyn Bennett, Federal Minister of Crown-Indigenous Relations and Northern Affairs, with a recommendation that the development be approved, subject to the measures described in the Report.

The Review Board recommended the approval of the Prairie Creek All Season Road ("ASR") be made subject to implementation of the measures described in the Report, which it considers are necessary to prevent significant adverse impacts on the environment and local people.

In January 2018, the Minister of Crown Indigenous Relations and Northern Affairs Canada, invoked a two-month extension to the timeline for the Minister’s decision on the Report of Environmental Assessment for the ASR, originally due by February 12, 2018, to allow the federal and territorial governments to complete aboriginal consultations.

In connection with such consultations, on January 19, 2018, Indian and Northern Affairs Canada (“INAC”) provided NorZinc with five information requests, identifying specific issues raised by Indigenous groups that need further clarity through proponent engagement, so the Responsible Ministers can be confident that the Crown has discharged its legal duty to meaningfully consult with potentially impacted Indigenous groups.

INAC requested NorZinc to engage the Nahanni Butte Dene Band ("NDDB"), Liidlii Kue First Nation ("LKFN") and the Dehcho First Nations, as recommended by the Review Board, to gain an understanding of the Indigenous groups’ concerns, discuss and determine how the Indigenous groups will be included in monitoring and discuss the Indigenous groups’ requests for support to participate in implementation of the measures recommended by the Review Board and the commitments made by NorZinc in the environmental assessment process.

NorZinc cooperated with the request from INAC and engaged with Indigenous groups to discuss the implementation of various measures recommended by the Review Board, the sharing and incorporation of Dene traditional knowledge and values into project design and the inclusion of the Indigenous groups in environmental and wildlife monitoring of the All Season Road.

On June 11, 2018, the Company submitted its formal replies to the Minister of Crown-Indigenous Relations and Northern Affairs to address all five information requests related to the implementation plans for various mitigation measures and proponent commitments contained in the EA Report. As requested in the Minister’s information requests, the Company continued working with the local Dene communities to address the implementation of various measures recommended by the Review Board. Key concerns which the Company and local Dene communities are addressing collaboratively include (a) sharing and incorporation of Dene knowledge and values into project design, (b) ensuring the Dene communities will be partners in environmental, wildlife and cultural monitoring of the All Season Road, and (c) addressing the Dene communities’ requests for support to participate in implementation of the measures recommended by the Review Board and the commitments made by the Company in the environmental assessment process.

On July 23, 2018, the Company received a letter confirming the positive decision of the Federal Minister of the Crown-Indigenous Relations and Northern Affairs Canada to resume the decision phase for The Company's Prairie Creek All Season Road Environmental Assessment. On October 9, 2018, the Minister of Crown-Indigenous Relations, on behalf of the Responsible Ministers, issued a decision adopting the Review Board’s recommendation that the ASR be approved.

The Environmental Assessment (“EA”) of the ASR was completed in 2018. With the Company’s submission of the requested Post-EA Information Package in February 2019, subsequently deemed complete in March 2019, the ASR permit has now entered the final permitting stage jointly with the Water Board and Parks Canada (jointly “MVLWB & Parks”), with a permit expected, based on the schedule provided by the regulators, to be received in the third quarter of 2019. The permit is expected to incorporate the recommended mitigation measures included in the EA Report.

NorZinc plans to construct the road over a period of three years. Prior to construction activities, the Company plans to conduct field investigations and prepare site plans (including detailed road design) and award construction contracts. Dependent on the permitting and financing timeline, construction of the All Season Road is planned to commence from a winter road in early 2020 and continue into 2022, in parallel with continuous and ongoing site construction and mine development.

In January 2019, the Company signed a Traditional Land Use Agreement (“TLUA”) with the NDDB for the construction and operation of the ASR. The Company is also finalizing negotiations for a Road Benefit Agreement (“RBA”) with the LKFN.

As part of the EA Report engagement, the NDDB and LKFN entered into an agreement with the Company which provides for the negotiation of an Environmental Management Agreement (“EMA”). The EMA is intended to be a formal mechanism, tested in other projects, to, in addition to regulatory instruments, provide for Indigenous participation in environmental management, and to ensure that the mitigative measures and environmental protection commitments in the EA Report are appropriately implemented.

The full text of the Report of Environmental Assessment and Reasons for Decision, together with all proceedings, transcripts, technical reports and detailed information on the environmental assessment of the Prairie Creek Mine All Season Road EA1415-01[2014] are available on the website registry of the Review Board at http://reviewboard.ca/registry/project.php?project_id=680, under the file of Canadian Zinc Corporation.

Other Permitting Activities

The Company made various applications to the Water Board for extensions or amendments to a number of existing licenses and land use permits, including the following:

  • The Company successfully applied to amend exploration Water Licence MV2001L2-0003 so that the zinc compliance levels reflect the levels prescribed in the federal Metal and Diamond Mining Effluent Regulations.
  • The Company extended by two years the terms of Land Use Permit MV2013C0002 (issued in April 2013 for a term of five years, which permits exploration drilling anywhere on the extensive Prairie Creek Property, and which expired on April 24, 2018) and Land Use Permit MV2008D0014 (issued in June 2013 for a term of five years, which permits operations at the Prairie Creek Mine, and which expired on June 16, 2018).
  • The Company applied to extend the term of Water Licence MV2008L2-0002 by 25 years and consideration of the application is pending, subject to NZC's completion of engagement with Indigenous groups.

The Company also plans to make applications to the Water Board as follows:

  • Amendment to exploration Water Licence MV2001L2-0003 to extend the term by 2 years to September 9, 2021.
  • Replacement of underground exploration Land Use Permit MV2012C0008 which expires on May 10, 2019 and which is not extendable as it has already been extended by two years.
  • The Replacement of Land Use Permit MV2008D0014, which will expire in June 2020, and which is not extendable as it has already been extended by two years.

Issued Permits

Extensive time and effort has been expended in permitting processes, and numerous Environmental Assessments have been carried out for various activities involving exploration and development.

A brief summary of the status of the operating permit process and each active permit follows with a link to the Mackenzie Valley Environmental Impact and Review Board ("MVEIRB" or "MVRB") and/or the Mackenzie Valley Land and Water Board ("MVLWB") websites for a comprehensive list of documentation on the public registry relating to the particular permits. 

Permitting Status Overview

PermitAgencyNumberComments
Operating Permits
Type "A" Mine Water Licence
Mine Land Use Permit
Liard Transfer Facility LUP
MVLWB
MVLWB
MVLWB
MV2008L2-0002
MV2008D0014
MV2008T0012
Permit issued
Permit issued
Permit issued
Winter Road Operating LUPMVLWBMV2012F0007Two-year extension requested
Winter Road Operating Water LicenceMVLWBMV2012L1-0005Permit issued
Winter Road Operating LUPParks CanadaParks2012-L001Permit issued
Winter Road Operating Water LicenceParks CanadaParks2012_W001Permit issued
Tetcela Transfer Facility LUPParks CanadaParks2012-L001Permit issued
Explosives PlantNatural Resources Canadan/aApplication pending
Quarry permit - MineAANDCn/aApplication pending
Quarry permit - RoadAANDCn/aApplication pending
Exploration Phase Permits
Underground Decline LUPMVLWBMV2012C0008Issued
Underground Decline Water LicenceMVLWBMV2001L2-0003Amended and extended
Road Land Use PermitMVLWBMV2003F0028Issued
Road Land Use PermitParks Canada2009-L02Issued and extended
Road Water LicenceParks Canada2009-W02Issued
Phase 4 Drilling LUPMVLWBMV2013C0002Issued

Public Registry MVEIRB

Public Registry MVLWB MV2013C0002


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