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Tuesday May 5 2015 15 INDUSTRY MINING REDUCE TIRE SERVICE COSTS INCREASE MINE PRODUCITIVTY PROFESSIONAL TIRE SPECIALISTS REDUCE TIRE EXPENDITURE As the worlds leading earthmover tire specialist Kal Tires Mining Tire Group offers on-site management of the facilities maintenance inventory and workforce as well as digital systems and world-class technology that enhance safety productivity reduces your mining costs. Providing tire service on over 150 mine sites in 19 countries on 5 continents Kal Tire helps customers maximize the value of their tire investment and optimize mining productivity. TALK TO THE EXPERTS WE KEEP YOU ROLLING TIRE NORTH LTD. 917 MacKenzie Hwy SS 22 Hay River NT X0E 0R8 Call us at 867 874-2686 mikekingkinglandford.com www.kaltiremining.com By DALI CARMICHAEL Recent exploration at the Prairie Creek mine located within the Nahanni National Park Reserve shows the potential for mining operations to last much longer than originally identied in an early pre-feasibility report. Drilling samples taken from a quartz vein by the Canadian Zinc Corp. CZN over sev- eral years have revealed the project could last for at least two decades doubling the expected mine life. We had a mineral resource estimate done in 2012 and its been three years since we did an update said Alan B. Taylor vice-presi- dent of exploration and the director and chief operating ofcer of CZN. We included that exploration work between 2012 and 2015 to do an update on our resources and it shows that the resource has expanded signicantly and can support a longer mine life. The pre- feasibility in 2012 gave the mine an 11-year life. Thats just based on specic ore-grade categories. We now have indications through wide-spaced drilling that we can probably easily double that. In the most recent exploratory drilling initiated in March the company ran under- ground drill stations on a 1.5-km extension of a mineralized quartz vein completing a total of around 6000 metres of diamond drill coring over 21 holes. At the same time CZN updated the Prairie Creek mineral resource estimate based on drilling conducted between 2012 and 2014 using new engineering tactics. Measured and indicated resources at the site previously totalled around 6.59 million tonnes up from 5.43 million averaging about 10.2 per cent zinc 9.5 per cent lead and 147 gt silver. In- ferred resourcesnow sitat around 7.09million tonnes averaging 11.7 per cent zinc 9.6 per cent lead and and 177 gt silver while proven and probable reserves remain unchanged. With these numbers shifting CZN is also readjusting its nancial needs. Were upgrading that pre-feasibility study to more detailed engineering and trying to determine hard numbers from actual ten- der bids on equipment packages and con- struction activities so that we know exactly how much money we need to raise Taylor said. Then we can go to the nancial insti- tutions and show them why we need that certain amount of money. That takes a bit of time. This is why were doing underground exploration trying to establish the actual mining costs that are going to happen and at the same time on surface determine ex- actly what needs upgrading. Taylor expects a report on this information to be released sometime this year. With the underground work were doing right now well be doing another update in a month or two Taylor said. It looks like there will be more resources dened and that will help our economics because the longer the life of the mine the better the economics. Preparing for the long-haul So far CZN has signed impact benefit agreements with the Nahanni Butte Dene and Liidlii Kue First Nation in Fort Simpson for the Prairie Creek project. It has also se- cured a socio-economic agreement with the GNWT a memorandum of understanding with Parks Canada and numerous environ- mental assessments necessary for the com- pletion of the ve-year regulatory process to secure operating permits. Now CZN is requesting permits for the in- stallation of a year-round road into the mine running in from the Liard highway 82 km into the park. We just put our development assessors report in Taylor said. We have a permit for the winter road but we need to upgrade to an all-season so thats included in the environ- mental assessment stage. We hope to move that along because its a very important link to provide to the mine. Thats with the Mack- enzie Valley review board right now. The company is also in the process of clearing up a 6-million debt to the GNWT regarding land and water use permits listed at 3 million each. Theres a misunderstanding about the li- abilities associated with cleanup of the pres- ent site Taylor said. There was a handover of site cleanup costs associated to Indian and Northern Affairs back in 1982 he said when the mine was run by Cadillac Explorations Ltd. Basically it boils down to were responsible for the cleanup associated with our present surface lease which we own and operate on which is much less than 6 million. The decision over the historical liabilities of the project is ongoing. CZN recently sub- mitted a letter to the water board which is being considered at this time. Expected Prairie Creek mine life double initial estimates PhotocourtesyofCanadianZinc A 2012 pre-feasibility study conducted on Prairie Creek mine determined operations could continue for about 11 years. More recent resource estimates are double that at around 20 years.