16
019572 KENNCO EXPLORATIONS (WESTERN) LIMITED - 505 BURRARD STREET, SUITE 730 ONE BENTALL CENTRE VANCOUVER,B.C. V7X IM4 ' DEPUTY MINISTER OF i ' PETRDLEUM REsoURC-;, March 17th, 1977 /? 4s Mr. J.J. Jones, for Director of Land Management, Land Management Branch, Department of Environment, Victoria, B.C. V8V 1x5 Dear Sir: -. u I. A. D. I Re: Stikine Copper Limited File: 0246255 on Map Reserve i- (- I File: 0267415 on Land Purchase FILE /I+ Your FileNo. 0267415 Order-in-council No. 2942, approved on September 16, 1969, provided for a reserve from mineral claim staking in the vicintty of the Anuk River on the east bank of the Stikine River pending the eventual development of a townsite and ore treatment plant in that area. By a letter from the Department of Lands, Forests and Water Resources dated August 15, 1969, we were advised that a map reserve had been placed on Departmental records covering a similar area, with termination effective December 31, 1970. The expiry date of the map reserve has been extended upon annual application to December 31, 1976. (Reference to your letter on behalf of Mr. R.C. Watt dated March 4, 1976). During 1976, a field program of fill-in drilling was completed around the margins and north end of the proposed main ore zone at the Galore Creek property. 24 holes at a total cost of $683,000. in planning the preliminary open pit design. This consisted of 17,440' of diamond drilling in This will give greater confidence Plans for 1977 are still being considered, but it is likely that our attention will be focussed on defining and investigating the problems of access and infrastructure that presently hinder development of the property. Only maintenance work will be done at the Galore Creek camp. We are still very interested in the property, and are activeljj seeking ways to overcome the difficulties that presently impede its economic development. to be an essential requirement in the alternatives being evaluated far eventual production from the property. application for a further extention of the map reserve to December 31, 1977. The area reserved on the Stikine River is considered For this reason, we hereby make Sincerely, @.Af/k==- RTdS/f h R.W. Stevenson C.C. J.T. Fyles, Deputy Minister, Dept. of Mines & Petroleum Resources R.A. Freberg, Hudson Bay Exploration & Development

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Page 1: 019572 - Property File

019572 K E N N C O EXPLORATIONS (WESTERN) LIMITED

- 505 BURRARD STREET, SUITE 730

ONE BENTALL CENTRE

VANCOUVER,B.C. V7X IM4

' DEPUTY MINISTER OF i ' PETRDLEUM REsoURC-;,

March 17th, 1977 /? 4 s Mr. J.J. Jones, for Director of Land Management, Land Management Branch, Department of Environment, Victoria, B.C. V8V 1x5

Dear Sir: -. u I .

A. D. I Re: Stikine Copper Limited File: 0246255 on Map Reserve i -

(- I File: 0267415 on Land Purchase FILE /I+ Your FileNo. 0267415

Order-in-council No. 2942, approved on September 16, 1969, provided for a reserve from mineral claim staking in the vicintty of the Anuk River on the east bank of the Stikine River pending the eventual development of a townsite and ore treatment plant in that area.

By a letter from the Department of Lands, Forests and Water Resources dated August 15, 1969, we were advised that a map reserve had been placed on Departmental records covering a similar area, with termination effective December 31, 1970. The expiry date of the map reserve has been extended upon annual application to December 31, 1976. (Reference to your letter on behalf of Mr. R.C. Watt dated March 4, 1976).

During 1976, a field program of fill-in drilling was completed around the margins and north end of the proposed main ore zone at the Galore Creek property. 24 holes at a total cost of $683,000. in planning the preliminary open pit design.

This consisted of 17,440' of diamond drilling in This will give greater confidence

Plans for 1977 are still being considered, but it is likely that our attention will be focussed on defining and investigating the problems of access and infrastructure that presently hinder development of the property. Only maintenance work will be done at the Galore Creek camp.

We are still very interested in the property, and are activeljj seeking ways to overcome the difficulties that presently impede its economic development. to be an essential requirement in the alternatives being evaluated far eventual production from the property. application for a further extention of the map reserve to December 31, 1977.

The area reserved on the Stikine River is considered

For this reason, we hereby make

Sincerely,

@.Af/k==- RTdS/f h R.W. Stevenson C.C. J.T. Fyles, Deputy Minister, Dept. of Mines & Petroleum Resources

R . A . Freberg, Hudson Bay Exploration & Development

Page 2: 019572 - Property File

December 20, 1973

M r . C. W. House, €o r D i r e c t o r of Lands, Lands Branch, Department of Lands, Fo res t s & Water Resources, VICTORIA, B . C.

Dear S i r : Re: S t i k i n e Copper Limited F i l e : 0246255 on map reserve F i l e : 0267415 on land purchase

Order in Council No. 2942, on September 16, 1969, provided f o r a reserve i n the area and the proposed development of a towns i t e and ore t rea tment p l a n t i n the gene ra l v i c i n i t y of t h e area l y i n g between t h e mouths of Scud and Porcupine rivers.

A map reserve w a s p laced over t h e above area w i t h t e rmina t ion ef- The Department of Lands has extended the expiry fective December 31, 1970.

d a t e of the map reserve upon annual a p p l i c a t i o n t o December 31, 1973.

During 1973, Hudson Bay Mining and Smelting Company Limited, one of t h e t h r e e p a r t n e r s i n S t i k i n e Copper Limited managed a major e x p l o r a t i o n program t o f u r t h e r e v a l u a t e t h e Galore Creek copper depos i t s .

The 1973 program inc luded about 48,000 feet of diamond d r i l l i n g This work cons i s t ed of f u r t h e r drilling on the Central Zone in 60 ho le s .

d e p a s i t and a minor amount of d r i l l i n g on a nearby depos i t . Zone a d i t w a s re-opened and ret imbered i n the p o r t a l area. s t u d i e s w e r e completed a t the proper ty and i n the map reserve area and of- f i c e s t u d i e s inco rpora t ing the r e s u l t s of the 1973 i n v e s t i g a t i o n s are s t i l l i n p rogres s .

The Cen t ra l Engineer ing

The t o t a l c o s t of t h e 1973 program through December 31, 1973 w i l l approximate 1.3 m i l l i o n . p l o r a t i o n of the Galore Creek p rope r ty s i n c e i n c e p t i o n of act ivi t ies i n 1962

The t o t a l c o s t of S t i k i n e Copper Limi ted ' s ex-

. through December 31, 1973 w i l l approximate $10.0 m i l l i o n .

Page 3: 019572 - Property File

-2-

Additional work is proposed at the property and within the map reserve i n 1974 and application is hereby made for a fur ther extension of the map reserve.

Sincere ly ,

D. A. Barr

DAB/aam

cc: Mr. J. E. McMynn -Deputy Minister of Mines Mr. R. A. Freberg -Hudson Bay Mining & Smelting Co. Mr. L. B. Moon Mr. R. W. Stevenson

Page 4: 019572 - Property File

October 24, 1972

W

bar MT. Schultrt

Thank you for your tetter o f ktober 2* Ma -enjoyed your r i s 4 t on October 17, a t whqch &.I, Molland and & I l l Peck were present,

( I ) bdng the whole proposal t~ the atbnttan o f Hr, F l f ~ l c k , seeking his gene~al approval.

I n OUT- d9scussian that day w t ~ agreed tot *

(2) budget far a wad survey along tha Isbrut Rlver tu be carrded aut In the 1973 I W d season.

Yours veiy truly,

Jaws To Fyles, oebuty Mini swr.

Page 5: 019572 - Property File

HUDSON BAY M I N I N G A N D SMELT + /

TELEPHONE 3 6 2 - 5233

TELEX 0 2 - 2 9 4 0 8

CA B LE A D D R E s s : " H u D BAY" TO R o N TO

JG CO., --- .

L/ --_

.I M ITED

P.O.BOX 28

TORONTO-DOMINION C E N T R E

TORONTO I , CANADA

I i i

, *

- - . --, _- i

i

1

- --- I 8 ,

. . - - - I D r . James T. Fyles,

Deputy Min i s t e r ,

Department of Mines and Petrglgpp Resources, - - _ _ -

Government of B r i t i s h Columbia.

Dear S i r : .' .

409 Douglas Bldg., L " " . t :!* 1 '* hv

" - I I I

. I /

This l e t t e r w i l l confirm our discussion in Victoria of the 7 t h of September, however; before beginning let me first congratulate you on cabinet confirmation of your appointment which I read of i n t h e Victoria paper a f t e r I l e f t your office.

To b r i e f ly review our current s t a t u s with regard t o Stikine Copper our position is as follows:-

Hudson Bay w i l l spend within the next 2 or 3 seasons approx- T h i s imately $3M on a detai led investigation and evaluation program.

program covers two basic areas, geologic and d r i l l i n g t o f u r t h e r refine the ore limits established by previous work and an engineering economic and marketing analysis which w i l l u l t i m a t e l y determine t b e f ea s ib i l i t y of developing t h e area andbr ingingwe property in to production. ant ic ipate t h a t the development and construction costs of t h i s property w i l l be i n excess of $20OM and therefore our engineering work and other studies w i l l be q u i t e tnorough. Bay on St ikine 's behalf and when the work is completed Hudson Bay's In te res t i n Stikine Copper w i l l be substant ia l ly increased.

We

T h i s program i s being managed by Hudson

We began work t h i s summer by re-establishing the old camp faci l i t ies , coring 35,000 f t . wi th t h e attendant geologic mapping, logging, and sampling. In addition t o this we i n i t i a t e d a program of engineering and rock mechanics studies related t o open p i t design and slope s t a b i l i t y as well as preliminary engineering and reconnaissance re la ted t o access and transportation routes, plant s i te , townsite, and power supply etc . *

To b r i e f l y summarize our geologic work s o far we are i n general establishing the va l id i ty of previous work althoughwe do not as yet have a l l the results of the summers work. program w i l l continue next season being accelerated and expanded t o emcompass a greater area and i n more de t a i l .

The geolgoic and d r i l l i n g

Page 6: 019572 - Property File

The results of our engineering studies and various other investigations have basically established a preliminary conception of what Stikine when developed should look like, provided our expectations are realized and the engineering program when complete demonstrates the feasibility of the project.

Since there is a complete lack of facilities or services of any type in this area we have started with the premises that the operation would have to justify to a large extent all of the necessary facilities; however it is reasonable to conclude that other operations will develop, such as HECLA MINING (at Schaft Creek) and the timber resources of the area, once Stikine is established. A second major premises which we accept is that; because of the remote location, poor climatic conditions, lack of any community development or shipping facilities the town and plant-complex must be connected to the Canadian Hwy network via B,C, domestic supplies etc. by intermittent small barg traffic down the Stikine and out through Wrangell Alaska would be unacceptable in the type of community we visualize and would ultimately result in disruptive and possibly disasterous labour turnover problems. The third factor which influences our thinking is the availability of power. the location and resulting high fuel transportation costs, diesel generation does not appear feasible.

We feel strongly that access for personnel,

Because of

I am sure you are aware that hydro electric plants must be large to be economic. study to electric smelting and refining in hope that we can provide a large enough base load to justify the development of the hydro electric potential of the Iskut River and More Creek. additional benefit of increasing our labour force and therefore the number of families supporting the camunity as well as being in keeping with the desires of most Canadians that; our natural resources leave Canada with a maximum Canadian content. We would of course have to complete design in such a way as to take advantage of the most efficient process and plant arrangement available as well as design for custom smelting, and refining since it presently appears that the daily tonnage which the Galore Creek ore body can support for a 20-25 year life is very close to what is considered the minimum acceptable capacity for an econamic smelting and refining operation, We recognize that; once a plant and community became established other mines could more quickly develop to provide additional smelter-refinery feed since the access, power source and community would already be established. In addition to this the development of the area which is required to bring Stikine on stream would provide easy access of bulk material to our canplex from the north and south..

For these reasons we are giving serious

This policy has the

We visualize Stikine when developed in keeping with these parameter could be composed of the following basic elements:-

Mine :

Plant :

At the headwaters of Galore Creek, large open pit p1u.s smaller underground block caving mines and a leach dump. Total production 2O,OOO=3O,OOO Tpd. Ore will be transported to the mouth of the Porcupine Creek via a 10-12 mile underground haulage tunnel,

The plant cmplex located at the mouth of the Porcupine Creek on the Stikine River. to consist of a concentrator - smelter - refinery which would produce approximately 100,000 Tons

The Plant

***/3

Page 7: 019572 - Property File

Town:

of refined copper per year while consuming 1,000,000 MWH of electrical energy per year.

A l l personnel working at “Stikine” plus those providing services for employees, government, commercial etc., will make their homes in a townsite located somewhere on the east baak of the Stikine River. I have indicated on the attached sketch ma,p what currently appears to be the most suitable site at the mouth of the Scudd River, however our studies when complete should give a clearer indication of exactly which is the most suitable site. We estimate that the town would have a population of 4,000=5,000 if electric smelting and refining proves possible.

Power: Brinco of Montreal in the past have shown an interest in developing the hydro electric potentia of the Iskut River and More Creek. We have appraised them of our current thinking and program with the suggestion that they give consideration to the construction of a hydro electric generating plant. Assuming their econdc studies and government discussions are favourable and the plants are built the major one would be on the Iskut River just below the confluence of Forrest Kerr Creek, the other being a+, the mouth of the More Creek. for the housing of generating plant operating personnel would logically develop in the vicinity of Bob Quinn Lake on the Cassia Hwy. Should Brinco’s work prove satisfactory I am sure that they will be making a proposal to us for the supply of power.

A small camxiunity

For your consideration I have enclosed a sxnaJ.1 sketch map illustrating these points showing proposed locations.

Very generay the timing which we are working towetrd in the engineering portion of our program and the development of the property is as follows:

Summer

Winter

Summer

1972: Reconnaissance, prellminaxy studies, field data collection, initiation of pit design program.

1972: consultants, define scope and determine sumner field work requirements. Establish governmental liaison and follow-up on possibilities relating to transportation, access, power, coanrmuaity services, communication etc.

Select rquired design and estimating

l9?3: pr>mplete fielfl enqineering. soils testing, suFve*A ncr e dak ga+?-”i-na and c m t %ne previ 011 sly in4 +i ated engineering programs

Page 8: 019572 - Property File

. '

-4-

Winter

Summer

Winter

Summer

1973: I.ayovt ewi<neerSng$ costing, process reviews, market and transnortation analysis etc.

1974: into overall evaluation of property, financial organization and field checks in doubtful areas.

Consolfdation and assenibly of various studies

1 9 4 : decision and communication to various government agencies of intent.

Presentation to principals for go/no go

1975-1980: decision with plant start-up in 1980.

Construction period; assuming a go

Frcmnthe preceeding 1 am sure that sever& things have immediately becae apparent to you. interdependance of all these facilities, upon which the success of this development will rest with respect to both time and economics. It is both illogical and impractical to assume one of these major elements which we have described, being developed in advance of the other because of their camplete interdependance. Brinco that they complete preliminary investigations and if they find they have a continuing interest they persue a program which is focused on the same objective and timing as ours and that we mutually assist each other toward the objective of developing this area if it is economically justifyable. Should you concur with our thinking we would appreciate your department giving serious consideration to our thinking on an Iskut-stikine access road which is as follows:-

The principal one being the complete

For these reasons we have suggested to

Based upon our work this past summer we feel that the best vehicular access to the site, in keeping with current and potential requirements, would be down the Iskut starting from the point where the Stewart Cassiar-road crosses the Nigunsaw. south bank of the Nigunsaw and the Iskut crossing to the east bank at the confluence of the Stikine and the Iskut. The road would then run up the Stikine on the east bank past the plant site to reach the townsite located at the Scudd Portage. the principal ones being:-

The road would run along the

This road location has several advantages,

The shortest road distance to Stewart or Prince Rupert, suitable developed deep watar Canadian ports for heavy freight . The power transmission lines from the damsites to the plant and town would parallel this route making their installation and maintenance practical.

Provide access to the proposed Iskut generating station for construction and operation.

Follow what our reconnaissaace indicates is the most convenient route for road construction into the area.

Since mine access roads fall within your jurisdiction and this route appears to us to be a logical feeder to, and means of our utilizing the Stewart-Cassiar road which your department is currently finishing we feel that a survey and cost analysis by your department would be both timely and justiifyable. Should your department chose

. ./5

Page 9: 019572 - Property File

U -5- . t o undertake the f i e l d portion of t h i s survey i n the coming summer, some- t h e i n the l a t e winter a f t e r cost analysis, scheduling and layout work i s complete; Stikine and your department would then be in a posit ion t o in t e l l i gen t ly discuss t h i s road.

Assuming such a road were b u i l t the next log ica l s tep would be f o r the Alaska Government t o complete a road froan Wrangell up t o the international boundry a t the juction of the Iskut and Stikine which would have the e f fec t of developing a second access t o the coast. W e aJso f e e l t h a t it i s logical. and w i l l be ultimately prac t ica l fo r a branch of the ra i l l i n e a t Dease Lake t o be extended down the Stikine t o our s i t e and eventually Wrangell. provide the route f o r development of properties such as HECM and the movement of concentrates t o our complex.

This l i n e when developed would

I thank you very much for receiving me, and look forward I w i l l be t o meeting and discussing t h i s project with your staff.

cal l ing your office in ear ly October t o inquire when such a v i s i t would be most convenient and suitable.

Yours t ruly,

W. G. Schultz Project Engineer khr Stikine Copper Ltd ,

wGs/mw C.C. H. A . McKenzie

Page 10: 019572 - Property File
Page 11: 019572 - Property File

HUDSON BAY MINING AND SMELTING CO., LIMITED . - ' ~ J ~ ' ~~ I.,c:fiL

. , P.0 .BOX 2 8 I , . .... .

I TELEPHONE 362-5233

TELEX 0 2 - 2 9 4 0 8 ~ ~~ -~ ~. .

C.C.'). ' , ! T O R O N T O - D O M I N I O N C E N T R E

.~ ,. TORONTO I, CANADA I . . ~ ~ CABLE ADORESS:"HUDBAY" TORONTO

..L. ~

.,.i ..>. . ,

. . .~~ .._. :-.--.-; L ,.

.. .

0 ' ~

, _. ~ ~ ~ . ~ . D r . James T. Fyles,

Department of Mines and Petroleum Resources, Government of B r i t i s h Columbia.

Deputy Minister, .. .~ __ 409 Douglas Bldg., ,. I .

, .

. ~ . ;_i

."+ c,F- - at? ; I ; : : , : .... ..I

:.. f f E . "~_ . ~ ~ .,.., ~.

! This l e t t e r w i l l confirm our discussion i n Victoria of t h e

7 th of September, however; before beginning le t me first congratulate confirmation of your appointment which I read of i n t h e after 1 l e f t your office.

o w posit ion is as follows:-

a detai led investigation and evaluation program.

To b r i e f l y review our current s t a t u s w i t h regard t o

Hudson Bay w i l l spend within the next 2 or 3 seasons approx- This

program covers two basic areas, geologic and d r i l l i n g t o fur ther ref ine the ore limits established by previous work and an engineering economic and marketing analysis which w i l l ultimately determine the f e a s i b i l i t y of developing the area a n d b r i n g i n g a e property in to production. ant ic ipate t h a t t h e development and construction costs of t h i s property w i l l be i n excess of $20W and therefore our engineering work and other studies w i l l be quite thorough. Bay on St ikine 's behalf and when the work i s completed Hudson Bay's In t e re s t i n Stikine Copper w i l l be s u b s t a n t i a l l y increased.

We .

This program i s being managed by Hudson

We began work t h i s summer by re-establishing the old camD f a c i l i t i e s , coring 35,000 f t . with the attendant geologic mapping, logging, and sampling. In addition t o this we i n i t i a t e d a program of engineering and rock mechanics studies re la ted t o open p i t design and slope s t a b i l i t y as well as preliminary engineering and reconnaissance re la ted t o access and transportation routes, plant site, townsite, and power supply etc .

To b r i e f l y summarize OUT geologic work so far we are i n general establishing hhe v a l i d i t y of previous work althoughwe do not as yet have all the results of the s m e r s work. program w i l l continue next season being accelerated and expanded t o emcmpass a greater area and i n more de ta i l .

The geolgoic and d r i l l i n g

. . ./2

. . . . .. . . .

Page 12: 019572 - Property File

r, -.LO

The resuLts of our engineering studies and various other investigations have basically established a preliminary conception of w h a t Stikine when developed should look l ike , provided our expectations a re realized and the engineering program when complete demonstrates the f e a s i b i l i t y of the project.

Since there is a complete lack of f a c i l i t i e s or services of any type i n t h i s area we have s ta r ted wi th the premises t h a t the operation would have t o ju s t i fy t o a large extent a l l of the necessary f a c i l i t i e s ; however it is reasonable t o conclude tha t other operations will develop, such as HECLA MINING ( a t Schaft Creek) and the timber resources of the area, once Stikine i s established. A second major premises which we accept i s that ; because of the remote location, poor climatic conditions, lack of any community development or shipping f a c i l i t i e s the town and plant-complex must be connected t o the Canadian Hwy network via B.C. W e f e e l strongly t h a t access f o r personnel, domestic supplies e tc . by intermittent small barg t r a f f i c down the Stikine and o u t through Wrangell Alaska would be unacceptable i n the type of community we visualize and would. ultimately result i n disruptive and possibly disasterous labour turnover problems. The th i rd factor which influences our thinking is the ava i lab i l i ty of power. the location and resul t ing high f u e l transportation costs, d iese l generation does not appear feasible.

Because of

I am s u r e you a r e aware that hydro electric plants must be large t o be economic. study t o e l ec t r i c smelting and refining i n hope t h a t we can provide a large enough base load to j u s t i f y the development of the hydro e l ec t r i c potent ia l of the Iskut River and More Creek. additional benefit of increasing our labour force and therefore the number of families supporting the ccrmmunity as well as being i n keeping with the desires of most Canadians tha t ; our natural resources leave Canada with a maximum Canadian content. We would of course have t o complete design i n such a way as t o take advantage of the most e f f ic ien t process and plant arrangement available as well as design fo r custom smelting, and refining since it presently appears t h a t the da i ly tonnage which the Galore Creek ore body can support f o r a 20-25 year l i f e i s very close t o what i s considered the minimwl acceptable capacity f o r an economic smelting and ref ining operation. We recognize that ; once EL

plant and community became established other mines could more quickly develop t o provide additional smelter-refinery feed since the access, power source and community would already be established. I n addition t o t h i s the development of the area which i s required t o bring Stikine on stream would provide easy access of bulk materid t o our complex f r o m the north and south.

For these reasons we are giving serious

This policy has the

W e visualize Stikine when developed i n keeping with these parameter could be composed of the following basic elements:=

M i n e :

Plant :

_. . A t the headwaters of Galore Creek, large open pit plus srnaller underground block caving mines and a leach dump. Total production 2O,OOO=3O,OOO Tpd. Ore w i l l be transported t o the mouth of the Porcupine Creek v ia a 10-12 m i l e underground haulage tunnel.

The plant complex located a t the mouth of the Porcupine Creek on the Stikine River. to consist of a concentrator - smelter - refinery which would produce approximately 100,000 Tons

The Plant

* 013

Page 13: 019572 - Property File

.

of refined copper per year while consuming 1,000,000 W of e l ec t r i ca l energy per year.

1

Town: A 3 1 personnel working a t "Stikine" plus those providing services for employees, government, coxumercial e tc . , w i l l make the i r homes i n a townsite located somewhere on the east bank of the Stikine River. I have indicated on the attached sketch map what currently appears t o be the most sui table s i te a t the mouth of the Scudd River, however our studies when complete should give a clearer indication of exactly which i s the most sui table site. We estimate that the town would have a population of 4,000-5,000 i f e l e c t r i c smelting and ref ining proves possible.

Power: Brinco of Montreal i n the past have shown an i n t e re s t i n developing the hydro e l e c t r i c p o t e n t i d of the Iskut River and More Creek. them of our current thinking and program with the suggestion t h a t they give consideration t o the construction of a hydro e l ec t r i c generating plant. Assuming t he i r economic studies and government discussions are favourable and the plants are b u i l t the maJor one would be on the Iskut River j u s t below the confluence of Forrest Kerr Creek, the other being at, the mouth of the More Creek. f o r the housing of generating plant operating personnel would log ica l ly develop i n the v i c in i ty of Bob @inn Lake on the Cassiar Hwy. Should Brinco's work prove sat isfactory I am sure that they w i l l be making a proposal t o us fo r the supply of power.

We have appraised

A small cormunity

For your consideration I have enclosed a small sketch map i l l u s t r a t ing these points showing proposed locations.

Very generally the tizning which we are working toward in the engineering portion of our program and the development of the property is as follows:

Summer 1972: Reconnaissance, preliminary studies, f i e l d data collection, i n i t i a t i o n of p i t design program.

Winter 197'2: Select rquired design and estimating consultants9 define scope and determine summer f ie ld work requirements. Establish governmental l i a i son md follow-up on poss ib i l i t i e s r e l a t ine t o transportation, access, power, community sewices, communication etc .

Summer 19'73: Complete f i e l d engineerfng, soils tes t ing, surve:rfng, data gat%rlng and contine prevfously initiated engineering programs.

0 .J4

Page 14: 019572 - Property File

1,ayovt epTineering, cos&<, process reviews, mwket and transportation analysis etc.

Summer

Winter

Summer

1974: into overall evaluation of property, financial organization and field checks in doubtf'ul areas.

Consolidation and assembly of various studies

1974: decision and communication to various government agencies of intent.

Presentation to principals for go/no go

1975-1980: decision with plant start-up in 1980.

Construction period; asswning a go

Fromthe preceeding I am sure that several. things have immediately become apparent to you. interdepen-ce of all these facilities, upon which the success of this development will rest wi.th respect to both time and economics. It is both illogical and impractical to assume one of these major elements which we have described, being developed in advance of the other because of their complete interdependaszce. Brinco that they complete preliminary investigations and if they find they have a continuing interest they persue a program which is focused on the same objective and timing as ours and that we mutually assist each other toward the objective of developing this area if it is economicaLly justifyable. Should you concur with our thinking we would appreciate yaw department giving serious consideration to our thinking on an Iskut-stikine access road which is as follows:-

The principal. one being the complete

For these reasons we have suggested to

Based upon our work this past summer we feel that the best vehicular access to the site, in keeping with current and potential requirements, would be down the Sskut starting from the point where the Stewart Cassiar road crosses the Nigunsaw. south bank of the Niwsaw and the Iskut crossing to the east bank a t the confluence of the Stikine md the Iskut. The road would then run up the Stikine on the east bank past the plant site to reach the townsite located at the Scudd Portage. the principal ones being:-

The road would run along the

This road location has several advantages,

The shortest road distaslce to Stewart or Prince Rupert, suitable developed deep watar Canadian ports for heavy freight.

The power transmission lines from the damsites to the plant and town would parallel this route making their installation and maintenance practical.

Provide access to the proposed Iskut generating station for construction and operation.

Follow what our reconnaissance indicates is the most convenient route for road construction in to the area.

Since mine access roads f a l l within your jurisdiction and th is route appears to us to be a logical feeder to, andmeans of our utilizing the Stewart-Cassiar road which your department is currently finishing we feel that a survey and cost analysis by your depaxtment would be both timly and justifyable. Should your department chose

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t o undertake the f i e l d portion of t h i s survey i n the coming summer, some- time i n the l a t e winter after cost analysis, scheduling and layout work is canplete; Stikine and your depaxtment would then be i n a posit ion t o in te l l igent ly discuss t h i s road.

Assuming such a road were built the next Logical step would be for the Alaska Government t o complete a road from WrangeU. up t o the international boundr:y at the juction of the Jskut and Stikine which would have the e f fec t of developing a second access t o the coast. W e a lso feel that it is logical and w i l l be ultimately practical for a branch of the ra i l line at Dease Lake t o be extended down the Stikine t o our s i t e and eventuaLJy Wrangell. provide the route for development of properties such as ZECLA and the movement of concentrates t o OUT complex.

This l i n e when developed would

I thank YOU very much for receiving me9 and look forward t o meeting a d discussing t h i s project with your staff. call ing your office in ear ly October t o inquire when such a v i s i t would be most convenient and suitable.

I w i l l be

Yours truly,

WGS/mW C ~ C . H. A. McKenzie

W e G o SChUltZ Project Engineer fo r Stikine Copper Ltd.

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