Premier Gold Mines Limited Hardrock Project Project Description

Premier Gold Mines Limited Hardrock Project Project Description

Prepared for:

Canadian Environmental Assessment Agency

Submitted by:

Stantec Consulting Ltd. 70 Southgate Drive, Suite 1 Guelph ON N1G 4P5

Premier Gold Mines Limited Suite 200, 1100 Russell Street Thunder Bay, Ontario P7B 5N2

File No. 160960914 April 23, 2014

Sign off Sheet This report has been prepared by Stantec Consulting Ltd. (Stantec) for the sole benefit of Premier Gold Mines Limited (Premier). The report may not be relied upon by any other person or entity, other than for its intended purposes, without the express written consent of Stantec or Premier.

This report was undertaken exclusively for the purpose outlined herein and was limited to the scope and purpose specifically expressed in this report. This report cannot be used or applied under any circumstances to another location or situation or for any other purpose without further evaluation of the data and related limitations. Any use of this report by a third party, or any reliance on decisions made based upon it, are the responsibility of such third parties. Stantec and Premier accept no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions taken based on this report.

Stantec makes no representation or warranty with respect to this report, other than the work was undertaken by trained professional and technical staff in accordance with generally accepted engineering and scientific practices current at the time the work was performed. Any information or facts provided by others and referred to or used in the preparation of this report were assumed by Stantec to be accurate. Conclusions presented in this report should not be construed as legal advice.

The information provided in this report was compiled from existing documents and data provided by Premier and by applying currently accepted industry standard mitigation and prevention principles. This report represents the best professional judgment of Stantec personnel available at the time of its preparation. Stantec reserves the right to modify the contents of this report, in whole or in part, to reflect any new information that becomes available. If any conditions become apparent that differ significantly from our understanding of conditions as presented in this report, we request that we be notified immediately to reassess the conclusions provided herein.

Prepared by (signature)

Fiona Christiansen, Regional Technical Leader (Central Canada), Environmental Assessment Stantec Consulting Ltd.

Prepared by (signature)

Amiel Blajchman, Director, Environment, Aboriginal and Community Affairs Premier Gold Mines Limited

Reviewed by (signature)

Denis Marquis, Principal Stantec Consulting Ltd.

grahammeTypewritten Text














PREMIER GOLD MINES LIMITED HARDROCK PROJECT PROJECT DESCRIPTION

Table of Contents

EXECUTIVE SUMMARY.UNDER SEPARATE COVER

SOMMAIRE....SOUS PLI SPAR

TABLE OF CONCORDANCE ........................................................................................................ V

ABBREVIATIONS .......................................................................................................................... X

1.0 GENERAL INFORMATION AND CONTACTS ................................................................. 1.1 1.1 GENERAL DESCRIPTION OF PROJECT ............................................................................ 1.1 1.2 PROPONENT CONTACT INFORMATION ......................................................................... 1.1 1.3 OVERVIEW OF CONSULTATION TO DATE ...................................................................... 1.2 1.4 OTHER RELEVANT INFORMATION .................................................................................... 1.4

Environmental Assessment Processes ......................................................... 1.4 1.4.1 Regulatory Requirements ............................................................................. 1.5 1.4.2 Regional Study ............................................................................................... 1.7 1.4.3

1.5 STUDY AREA BOUNDARY ................................................................................................. 1.7 1.6 PROJECT DESCRIPTION ORGANIZATION AND CONTENT ........................................... 1.8

2.0 PROJECT INFORMATION ............................................................................................... 2.1 2.1 GENERAL DESCRIPTION, CONTEXT AND OBJECTIVES ................................................. 2.1 2.2 DESIGNATED ACTIVITIES ................................................................................................... 2.3 2.3 COMPONENTS AND ACTIVITIES ...................................................................................... 2.3

General Approach and Environmental Protection Measures ............... 2.3 2.3.1 Existing Facilities and Infrastructure............................................................. 2.4 2.3.2 Proposed Facilities, Infrastructure, and Activities ................................... 2.10 2.3.3 Anticipated Production Capacity ............................................................ 2.19 2.3.4 Percent Increase in Capacity from Existing Project ............................... 2.20 2.3.5 Description of Related Activities ............................................................... 2.20 2.3.6

2.4 EMISSIONS, DISCHARGES AND WASTES ....................................................................... 2.20 Atmospheric Emissions ................................................................................ 2.20 2.4.1 Liquid Discharges and Management ...................................................... 2.21 2.4.2 Solid Wastes and Management ............................................................... 2.23 2.4.3

2.5 CONSTRUCTION, OPERATION, DECOMMISSIONING AND CLOSURE PHASES AND SCHEDULING .......................................................................................................... 2.23

Construction ................................................................................................. 2.23 2.5.1 Operation ...................................................................................................... 2.25 2.5.2 Decommissioning/Closure ......................................................................... 2.26 2.5.3 Summary of Project Schedule ................................................................... 2.27 2.5.4

3.0 PROJECT LOCATION ..................................................................................................... 3.1 3.1 PROJECT COORDINATES ................................................................................................. 3.1 3.2 SITE PLAN ............................................................................................................................ 3.1

i


3.3 MAPS OF DESIGNATED PROJECT COMPONENTS AND PROXIMITY TO EXISTING FEATURES ........................................................................................................... 3.1

3.4 PHOTOGRAPHS OF WORK LOCATIONS ........................................................................ 3.4 3.5 LAND AND WATER USES ................................................................................................... 3.4

Zoning Designations and Land Use Plans .................................................. 3.4 3.5.1 Current Land Description, Ownership and Mining Rights ....................... 3.5 3.5.2 Existing Management and Conservation Plans ....................................... 3.5 3.5.3 Applicability of Marine Terminal and/or Canada Port Authority 3.5.4

Considerations ................................................................................................ 3.6 Lands and Resources Currently Used for Traditional Purposes by 3.5.5

Aboriginal Peoples ......................................................................................... 3.6

4.0 FEDERAL INVOLVEMENT ............................................................................................... 4.1 4.1 FEDERAL FINANCIAL SUPPORT ........................................................................................ 4.1 4.2 FEDERAL LAND REQUIREMENTS....................................................................................... 4.1 4.3 APPLICABLE FEDERAL LEGISLATIVE AND REGULATORY REQUIREMENTS ................... 4.1

5.0 EXISTING CONDITIONS AND POTENTIAL ENVIRONMENTAL EFFECTS ........................ 5.1 5.1 DESCRIPTION OF EXISTING PHYSICAL, BIOLOGICAL AND SOCIO-

ECONOMIC SETTING ........................................................................................................ 5.1 Climate, Air Quality and Noise .................................................................... 5.1 5.1.1 Physiography and Geology ......................................................................... 5.3 5.1.2 Soil Quality ....................................................................................................... 5.6 5.1.3 Surface Water Flow ....................................................................................... 5.6 5.1.4 Surface Water Quality ................................................................................... 5.8 5.1.5 Aquatic Resources ........................................................................................ 5.9 5.1.6 Hydrogeology (Groundwater Flow and Quality) ................................... 5.16 5.1.7 Geochemistry ............................................................................................... 5.18 5.1.8 Vegetation Communities ........................................................................... 5.19 5.1.9

Wildlife ............................................................................................................ 5.20 5.1.11 Species at Risk and Critical Habitat .......................................................... 5.21 5.1.12 Socio-Economic Environment ................................................................... 5.26 5.1.13

5.2 POTENTIAL PROJECT CHANGES RELATED TO FEDERAL LEGISLATION ..................... 5.30 Fish and Fish Habitat (Fisheries Act) .......................................................... 5.30 5.2.1 Aquatic Species at Risk (Species at Risk Act) ......................................... 5.33 5.2.2 Migratory Birds (Migratory Birds Convention Act) .................................. 5.33 5.2.3

5.3 POTENTIAL CHANGES RELATED TO FEDERAL LANDS ................................................. 5.33 5.4 POTENTIAL EFFECTS ON ABORIGINAL PEOPLES .......................................................... 5.33 5.5 ENVIRONMENT INTERACTION MATRIX ......................................................................... 5.33

6.0 ENGAGEMENT AND CONSULTATION WITH ABORIGINAL GROUPS ........................... 6.1 6.1 POTENTIALLY AFFECTED AND INTERESTED ABORIGINAL GROUPS ............................. 6.1 6.2 OVERVIEW OF ABORIGINAL ENGAGEMENT ACTIVITIES TO DATE .............................. 6.2 6.3 KEY COMMENTS AND CONCERNS EXPRESSED BY ABORIGINAL GROUPS TO

DATE .................................................................................................................................... 6.3

ii


6.4 CURRENT TRADITIONAL LAND USES ................................................................................ 6.5 6.5 ABORIGINAL CONSULTATION AND ENGAGEMENT PLAN .......................................... 6.5

7.0 CONSULTATION WITH PUBLIC AND OTHER PARTIES (NON-ABORIGINAL) ................ 7.1 7.1 POTENTIALLY AFFECTED AND INTERESTED STAKEHOLDERS ......................................... 7.1 7.2 OVERVIEW OF CONSULTATION ACTIVITIES UNDERTAKEN TO DATE AND KEY

COMMENTS AND CONCERNS ........................................................................................ 7.1 7.3 OVERVIEW OF ONGOING AND PROPOSED STAKEHOLDER CONSULTATION

ACTIVITIES ........................................................................................................................... 7.3 7.4 CONSULTATION WITH OTHER JURISDICTIONS ............................................................... 7.5

8.0 REFERENCES................................................................................................................... 8.1

LIST OF TABLES Table 1.1: Key Environmental Federal Permits / Approvals ................................................. 1.5 Table 1.2: Key Provincial Environmental Permits / Approvals .............................................. 1.6 Table 2.1: Historical Work Executed on the Hardrock Deposit Area Since 1980.............. 2.6 Table 2.2: Tailings Management Facility Design Basis ........................................................ 2.14 Table 3.1: Summary of Figures showing Key Project Components and Proximity to

Existing Features ........................................................................................................ 3.1 Table 5.1: Regional Ambient Air Quality Concentrations 2010 Thunder Bay ............. 5.1 Table 5.2: Hydrometric Data stations in the Kenogamisis River Watershed .................... 5.7 Table 5.3: Environmental Water Balance for Climate Normal Conditions....................... 5.8 Table 5.4: Summary of Lake Morphology ............................................................................. 5.10 Table 5.5: Fish Species Known to Inhabit Lakes and Streams in the Study Area ........... 5.10 Table 5.6: Summary of Species at Risk in the Project Area ................................................ 5.22 Table 5.7: Potential Project Interaction Matrix ..................................................................... 5.34 Table 6.1: Aboriginal Community Contact Information ...................................................... 6.1

iii


LIST OF APPENDICES Appendix A: Figures Appendix B: Photo Log Appendix C: Current Land Ownership and Mining Rights

LIST OF FIGURES APPENDIX A Figure 1.1: Project Location Figure 2.1: Preliminary Site Plan Figure 2.2: Preliminary Site Plan: Plant Site Details Figure 2.3: Open Pit Isometric View Figure 2.4: Historic Mining Figure 2.5: Conceptual Process Flowsheet (Phase 1) Figure 2.6: Conceptual Process Flowsheet (Phase 2) Figure 5.1: Surficial Geology Figure 5.2: Bedrock Geology Figure 5.3: Surface Water Features Figure 5.4: Fisheries and Known Fishing Areas Figure 5.5: Groundwater Monitoring Wells Figure 5.6: Vegetation Ecosite Types Figure 5.7: Environmentally Sensitive Areas Figure 5.8: Existing Land Use Figure 5.9: Archaeological Potential Figure 5.10: Cultural Heritage Resources Figure 6.1: Aboriginal Group Locations and Reserves

iv


Table of Concordance

Pres

crib

ed In

form

atio

n fo

r the

De

scrip

tion

of a

Des

igna

tion

Proj

ect

Gui

de to

Pre

parin

g a

Desc

riptio

n of

a D

esig

nate

d Pr

ojec

t und

er th

e C

EAA

, 201

2

Requirement Project

Description Section

General Information and Contacts 1. 1.1 The nature of the project 1.1

1. 1.1 The proposed location of the project 1.1

1. 1.2. a. The name of the project 1.1

2. 1.2. b. The name of the proponent 1.2

2. 1.2. c. The address of the proponent 1.2

2. 1.2. d. The name and contact information for the proponent CEO or equivalent

1.2

2. 1.2. e. The name and contact information for the principal contact person for the purposes of the project description

1.2

3. 1.3. A list of the jurisdictions (federal authorities, provincial or municipal governments, etc.) and other parties including Aboriginal groups and the public that were consulted during the preparation of the project description

1.3

4. a. 1.4. a. Information on other jurisdictional environmental assessment regimes and/or regulatory requirements to which the project has been or could be subjected (i.e., provincial, territorial, land claim environmental assessment processes, etc.)

1.4.1 and 1.4.2

4 b. 1.4. b. Information regarding whether the project area is located in a region that is/has been involved in a regional environmental study

1.4.3

Project Information 5. 2.1. General description of the project (context and objectives) 2.1

6. 2.2. Activities that describe the project in whole or in part that concur with the provisions identified in the Regulations Designating Physical Activities

2.2

7. 2.2.1. a. A description of the physical works associated with the project including all structures and associated infrastructure. Include a

2.3

v


Pres

crib

ed In

form

atio

n fo

r the

De

scrip

tion

of a

Des

igna

tion

Proj

ect

Gui

de to

Pre

parin

g a

Desc

riptio

n of

a D

esig

nate

d Pr

ojec

t und

er th

e C

EAA

, 201

2

Requirement Project

Description Section

description of their purpose, approximate dimensions and capacity where appropriate; and any related activities required to support the project

8. 2.2.1. b. Production capacity and the size (e.g., length of road, acreage used) of the main components of the project, including a description of the processes, infrastructure and any permanent or temporary structures

2.3.4

n/a 2.2.1. c. The percent increase in size or capacity if project is an expansion of an existing project

2.3.5

9. 2.2.1. d. A description of all activities associated with the project 2.0

10. 2.2.2. The nature of any solid, liquid or gaseous wastes likely to be generated by the project, and of plans to manage these wastes

2.4

10. 2.2.2. a. Sources and location of atmospheric contaminant emissions (greenhouse gases [GHGs], etc.)

2.4.1

10. 2.2.2. b. Sources and location of liquid discharges 2.4.2

10. 2.2.2. c. Types of by-products to be generated by the project and plans for proper disposal procedures as applicable

2.4.3

11. 2.2.3 The construction, operation and decommissioning phases, and the timing and scheduling of each phase

2.5

11. 2.2.3. a. Scheduletime of year, duration and staging (site preparation, construction, operation, decommissioning, abandonment)

2.5.4

11. 2.2.3. b. Main activities associated with each phase of the project (e.g., site preparation land clearing, excavations, grading, etc.)

2.5

Project Location 12. a. 3.1. The geographical location of the projectprovide coordinates

for the centre of a facility, or the start/end points of a linear facility

3.1

12. b. 3.2. A site map indicating the location of the project at an appropriate scale

3.2; Figure 2.1

12 b. 3.3. Map(s) indicating the locations of the project components/activities in relation to existing features, including names where applicable (e.g., watercourses, transportation

3.3; Figures 1.1, 2.1, 2.2 5.3, 5.4, 5.5 5.6, 5.7, 5.8,

vi


Pres

crib

ed In

form

atio

n fo

r the

De

scrip

tion

of a

Des

igna

tion

Proj

ect

Gui

de to

Pre

parin

g a

Desc

riptio

n of

a D

esig

nate

d Pr

ojec

t und

er th

e C

EAA

, 201

2

Requirement Project

Description Section

infrastructure, land use factors, Aboriginal settlement and/or claim lands, ESAs, etc.)

and 6.1

n/a 3.4. Photographs of work locations 3.4; Appendix B

12. c. 3.5. Legal land description for property(ies) associated with the project (title, deed/document, authorization relating to a water lot)

3.5.2; Appendix C

12. d. 3.6. Proximity of the project to: permanent, seasonal or temporary residences; Aboriginal lands associated with traditional territories, settlement and resources; and federal lands

3.5.5; Figure 6.1

n/a 3.3.1. a. Describe zoning of land and water affected by the project 3.5.1

n/a 3.3.1. b. Describe the ownership of land and water affected by the project, including sub-surface rights

3.5.2; Appendix C

n/a 3.3.1. c. Identify land use, water use, resource management or conservation plans in proximity to the project

3.5.3

12. e. 3.3.1. d. Identify if the lands are or have been used as a marine terminal, or designated within a land use plan that has undergone public consultation

3.5.4

12. e. 3.3.1. c. If applicable, provide land status and zoning under the Port Land Use Plan if lands are within waters/lands under the jurisdiction of a Canada Port Authority under the Canada Marine Act

3.5.4

12. f. 3.3.1. d. Identify whether project activities will impact in any way (i.e., access, occupation, exploration, development, etc.) lands and resources currently used by Aboriginal peoples for traditional purposes

3.5.5; Figure 6.1

Federal Involvement Financial Support, Lands and Legislative Requirements 13. 4.1. Information identifying any federal government department or

agency that is, or may be, providing financial support to the project

4.1

14. 4.2. Identify any federal lands associated with the project area, including information related to granting of interest in federal land (easement, ROW, transfer of ownership)

4.2

vii


Pres

crib

ed In

form

atio

n fo

r the

De

scrip

tion

of a

Des

igna

tion

Proj

ect

Gui

de to

Pre

parin

g a

Desc

riptio

n of

a D

esig

nate

d Pr

ojec

t und

er th

e C

EAA

, 201

2

Requirement Project

Description Section

15. 4.3. Information relating to federal legislative or regulatory requirements, permits, licences and authorizations that the proponent believes are required for the project

4.3; 1.4.1; 1.4.2.1

Environmental Effects 16. 5.1. A summary of the physical and biological components in the

area likely to be affected by the project, including the physical and biological components in the area that may be adversely affected by the project (e.g., air, fish , terrain, vegetation, water, wildlife, including migratory birds, and known habitat use)

5.1 and 5.5

17. 5.2. A summary of potential impacts of the project to:

17. a. 5.2. a. Fish and fish habitat (Fisheries Act) 5.2.1 and 5.5

17. b. 5.2. b. Aquatic species (Species at Risk Act) 5.2.2 and 5.5 17. c. 5.2. c. Migratory birds (Migratory Birds Convention Act, 1994) 5.2.3 and 5.5 18. 5.3. Description of potential environmental impacts of the project

to federal, provincial lands (outside the province the project is located in) or international lands

5.3 and 5.5

19. 5.4. Description of the effects on Aboriginal peoples resulting from changes to the environment caused by the project, including effects on health and socio-economic conditions, physical and cultural heritage, the current use of lands and resources for traditional purposes, or any structure, site or thing that is of historical, archaeological, paleontological or architectural significance.

5.4 and 5.5

Proponent Engagement and Consultation with Aboriginal Groups n/a 6.1. List of Aboriginal groups potentially interested in or affected by

the project, including detailed contact information

6.1

n/a 6.2. a., b., c.

Description of engagement and consultation activities with Aboriginal groups undertaken to date with regards to the project (including names, date(s) that engagement/consultation activities occurred, and means of engagement/consultation meetings, correspondence,

6.2

viii


Pres

crib

ed In

form

atio

n fo

r the

De

scrip

tion

of a

Des

igna

tion

Proj

ect

Gui

de to

Pre

parin

g a

Desc

riptio

n of

a D

esig

nate

d Pr

ojec

t und

er th

e C

EAA

, 201

2

Requirement Project

Description Section

communications)

n/a 6.3. Summary of comments and concerns expressed by Aboriginal groups, and responses provided to date with regards to the project

6.3

n/a 6.4. Summary of current land and resource use by Aboriginal groups/peoples for traditional purposes

6.4

n/a 6.5. Overview of a consultation plan identifying ongoing and proposed Aboriginal engagement and consultation activities, schedule and type of information that will be collected (or reasons why engagement and consultation is not required)

6.5

Consultation with the Public and Other Parties n/a 7.1. a., b.,

c. List of stakeholders potentially interested in or affected by the project, including detailed contact information and a description of engagement and consultation activities to date (names, date(s) that engagement/consultation activities occurred, and means of engagement/consultation meetings, correspondence, communications)

1.3; 7.1, and 7.2

n/a 7.2. Summary of comments and concerns expressed by stakeholders, and responses provided to date with regards to the project

7.2

n/a 7.3. Summary of ongoing and proposed stakeholder consultation activities

7.3

n/a 7.4. Summary of consultations with other authorities that have environmental assessment or regulatory decision-making jurisdiction with respect to the project

7.4

Executive Summary 20. 8.0 Summary of information provided in Sections 1 through 7 above

in both French and English Executive Summary

ix


Abbreviations

Abbreviations / Unit Definition

AANDC Aboriginal Affairs and Northern Development Canada

ABA acid base accounting

amsl above mean sea level

ARD acid rock drainage

Au gold

BIF banded iron formations

CCEM Community Coordinator / Environmental Monitor

CEA Agency Canadian Environmental Assessment Agency

CEAA, 2012 Canadian Environmental Assessment Act, 2012

CGRT Core Government Review Team

CHVI Cultural Heritage Value or Interest

CIA Cultural Impact Assessment

COSSARO Committee on the Status of Species at Risk in Ontario

COSEWIC Committee on the Status of Endangered Wildlife in Canada

CRA commercial, recreational and Aboriginal

CWS Canada Wide Standard

d day

DDH diamond drill hole

DFO Fisheries and Oceans Canada

EA Environmental Assessment

ECA Environmental Compliance Approval

ESA, 2007 Endangered Species Act

g gram

h hour

ha hectare

HHERA Human Health and Ecological Risk Assessment

HONI Hydro One Networks Inc.

km kilometre

x



L/day litres/day

LNG liquefied natural gas

LOM life of mine

m metres

m3 cubic metres

ML metal leaching

MMER Metal Mining Effluent Regulations of the Fisheries Act

MNDM Ministry of Northern Development and Mines

MNO Mtis Nation of Ontario

MNR Ministry of Natural Resources

MOE Ministry of the Environment

MTO Ministry of Transportation

Mt million tonnes

NAG non-acid generating

NHIC Natural Heritage Information Centre

NO nitric oxide

NP neutralizing potential

NPR Neutralization Potential Ratio

NRCan Natural Resources Canada

oz ounces

OPP Ontario Provincial Police

PAG potentially acid generating

ppb parts per billion

ppm parts per million

PWQO Provincial Water Quality Objectives

RSMIN Red Sky Mtis Independent Nation

SAR Species at Risk

SARA Species at Risk Act

SARO Species at Risk in Ontario

SO2 sulphur dioxide

SW Southwest

xi



t tonne (metric)

t/d or tpd tonnes (metric) per day

tpy tonnes (metric) per year

TK Traditional Knowledge

TLU Traditional Land Use

TMF tailings management facility

TSS Total Suspended Solids

WSC Water Survey of Canada 0C degrees Celsius

xii


General Information and Contacts April 23, 2014

1.0 General Information and Contacts

1.1 GENERAL DESCRIPTION OF PROJECT

The Hardrock Gold Deposit is located in Northern Ontario, Canada, approximately 275 kilometres northeast of Thunder Bay (Figure 1.1). It is situated in the geographic townships of Lindsley, Errington, and Ashmore and is just a few kilometres south of the ward of Geraldton, which is part of the amalgamated Municipality of Greenstone.

Premier Gold Mines Limited (Premier, the Proponent) acquired the Hardrock mining claim in December 2008 from Lac Properties. The property is a brownfield site that was actively mined during 1930-1990s and in later years was known as the MacLeod-Mosher complex. Premier has undertaken or commissioned a number of economic, environmental and engineering studies and consultation activities related to the potential Project development and will continue this approach as the Project moves through the planning, construction, operation and closure phases.

Premier proposes to construct, operate and ultimately close/rehabilitate a new open pit gold mine, processing plant and ancillary facilities, collectively known as the Hardrock Project (the Project). Infrastructure will generally include an on-site processing facility, waste rock and tailings disposal sites, water treatment facility and serviced plant site. Highway 11, which is situated in the immediate footprint of the proposed open pit, will require re-location.

1.2 PROPONENT CONTACT INFORMATION

The proponent contact information is as follows:

Name of Proponent: Premier Gold Mines Limited

Mailing Address of Proponent: Suite 200, 1100 Russell Street Thunder Bay, Ontario P7B 5N2

Chief Executive Officer: Ewan S. Downie Chief Executive Officer, President and Director

Environmental Assessment Contact Person:

Amiel Blajchman Director, Environment, Aboriginal and Community Affairs

Telephone Number of Contact Person: (416) 459-0114

E-Mail of Contact Person: [email protected]

Website: http://www.premiergoldmines.com

1.1



Name of Consultant: Stantec Consulting Ltd

Mailing Address 70 Southgate Drive, Suite 1 Guelph, Ontario, N1G 4P5

Contact Person: Fiona Christiansen Project Manager

Telephone Number: (519) 836-6050

Fax Number: (519) 836-2493

E-Mail [email protected]

1.3 OVERVIEW OF CONSULTATION TO DATE

Premier has opened a local community consultation office in Geraldton (the closest ward to the Project) with the aim of increasing its presence in the community and providing an easily accessible opportunity for local stakeholders to provide comments. As part of Premiers public engagement, Premier has already conducted multiple community meetings and initiated a communications log to track all communications for the Project. Consultation with Aboriginal groups, regulatory agencies, and other stakeholders will be ongoing throughout the life of the Project. Consultation with the following key regulatory agencies is anticipated:

Provincial Agencies:

Ministry of Northern Development and Mines (MNDM);

Ministry of the Environment (MOE);

Ministry of Natural Resources (MNR);

Ministry of Tourism, Culture and Sport;

Ministry of Transportation (MTO);

Ministry of Economic Development and Trade;

Ministry of Municipal Affairs and Housing;

Ministry of Labour;

Ontario Provincial Police (OPP); and

Hydro One Networks Inc. (HONI).

Federal Agencies:

Aboriginal Affairs and Northern Development Canada (AANDC);

1.2



Canadian Environment Assessment Agency (CEA Agency);

Natural Resources Canada (NRCan);

Health Canada;

Fisheries and Oceans Canada (DFO);

Transport Canada; and

Environment Canada.

Local Agencies/Interest Groups:

Municipality of Greenstone;

Greenstone Economic Development Corporation;

Greenstone Landowners Association;

Geraldton Area Natural Resources Advisory Committee;

Geraldton District Chamber of Commerce;

Geraldton Community Forest;

Geraldton Snowmobile Club;

Kenogamisis Golf Club;

Longlac Snowmobile Club;

Longlac Chamber of Commerce;

Thunderbird Friendship Centre; and

Confederation College.

Premier has been working effectively to build and maintain personal and respectful relationships with First Nations and Mtis communities in the area. The Ontario government has identified the following communities to have an interest in the Project:

Long Lake 58 First Nation;

Ginoogaming First Nation;

Aroland First Nation;

Mtis Nation of Ontario (MNO); and

Red Sky Mtis Independent Nation (RSMIN).

Engagement with these communities has been undertaken by Premier and will continue throughout the Project.

1.3



1.4 OTHER RELEVANT INFORMATION

Environmental Assessment Processes 1.4.1

Under the Canadian Environmental Assessment Act, 2012 (CEAA, 2012) only Designated Projects included in the Regulations Designating Physical Activities require a Federal Environmental Assessment (EA). It is anticipated that the Project will be a Designated Project pursuant to Section 16(b): The construction, operation, decommissioning and abandonment of a new metal mill with an ore input capacity of 4,000 t/d or more and Section 16(c): The construction, operation, decommissioning and abandonment of a new rare earth element mine or gold mine, other than a placer mine, with an ore production capacity of 600 t/d or more.

As the proponent of a designated project, Premier has provided the CEA Agency with this description of the designated project that includes the information prescribed by the Prescribed Information for the Description of a Designated Project Regulations. It is anticipated that the CEA Agency will conduct a screening and on completion of the screening, decide if an environmental assessment of the designated project is required. If a Federal EA is required, this Report will be used to assist the Agency in the development of the Environmental Impact Statement Guidelines, as well as provide stakeholders with preliminary Project information as part of the ongoing consultation program.

In Ontario, mining development projects are carried out by private sector proponents and are not subject to provincial Individual EA requirements, although certain ancillary activities associated with a mining development may be subject to one or more prescribed Class EA processes. Four potentially applicable Class EA processes have been identified to date for the Project (listed below); additional Class EAs may be identified as the Project progresses.

Class Environmental Assessment for Provincial Transportation Facilities;

Municipal Engineers Class Environmental Assessment (Municipal Class EA);

Class Environmental Assessment for Resource Stewardship and Facility Development; and

A Class Environmental Assessment for Activities of the Ministry of Northern Development and Mines under the Mining Act.

The undertaking of these Class EAs will be carried out separately from the Federal EA; however portions of the processes will be undertaken in parallel, such as coordination of consultation events and notifications, as appropriate. It is generally anticipated that the same body of information will be used to inform both the Federal and Class EA processes.

1.4



Regulatory Requirements 1.4.2

In addition to the EA requirements discussed above, various federal, provincial, and municipal permits, licenses and/or authorizations must be obtained prior to the development of the Project.

1.4.2.1 Federal Approvals

Key federal permits and approvals potentially required for development at the Project site are listed in Table 1.1.

Table 1.1: Key Environmental Federal Permits / Approvals Permits / Approvals Project Activities

Authorization for Works Affecting Fish Habitat Legislation: Fisheries Act Responsible Agency: Fisheries and Oceans Canada

Work that may result in serious harm to fish that are part of a commercial, recreational or Aboriginal fishery, or to fish that support such a fishery.

Schedule 2 Listing, Metal Mining Effluent Regulations (MMER) Legislation: Fisheries Act Responsible Agency: Fisheries and Oceans Canada / Environment Canada

Use of fish bearing waters to deposit mine effluent, waste rock, and tailings.

Approval of Works in Navigable Waters Legislation: Navigation Protection Act Responsible Agency: Transport Canada

Construction of any works in or over navigable waters.

Deposition of material that is liable to interfere with navigation into a water body where there are not at least approximately 36.6 m of water depth at all times.

Explosives Regulations Legislation: Explosives Act Responsible Agency: Natural Resources Canada

Manufacturing, use/storage of blasting explosives

Transportation of Dangerous Goods Legislation: Transportation of Dangerous Goods Act Responsible Agency: Transport Canada

Transportation of hazardous materials

At this time no approvals under the Species at Risk Act, administered by Environment Canada, are anticipated.

1.4.2.2 Provincial Approvals

At present, no permits are required for drilling and general surface exploration. Permits are required to undertake surface stripping and trenching and drilling when the drill site encroaches on Highway 11.

1.5



On April 5, 2012, the MNDM approved Premier's Advanced Exploration Closure Plan for the Project. The Closure Plan was developed to support advanced exploration within the historical underground workings and required the construction of a ramp and dewatering to allow access. An Environmental Compliance Approval (ECA) and a Permit to Take Water was received from the MOE on October 23, 2012; however, no dewatering has occurred at this time.

Further provincial permits and approvals will be required for development at the Project site. A preliminary list of key environmental permits/approvals is provided in Table 1.2.

Table 1.2: Key Provincial Environmental Permits / Approvals Permits / Approvals Project Activities

Mine Closure Plan Legislation: Mining Act Responsible Agency: Ministry of Northern Development and Mines

Closure Plan for the Hardrock Project.

Permit to Take Water Legislation: Ontario Water Resources Act Responsible Agency: Ministry of the Environment

Water taking and dewatering activities

Environmental Compliance Approval Legislation: Environmental Protection Act Responsible Agency: Ministry of the Environment

Air and noise emissions for the Mine and Mill.

Environmental Compliance Approval Industrial Sewage Works Legislation: Ontario Water Resources Act Responsible Agency: Ministry of the Environment

Mine/Mill process water and sewage treatment.

Environmental Compliance Approval Waste Disposal Site Legislation: Environmental Protection Act Responsible Agency: Ministry of the Environment

Operation of a landfill

Work Permit Legislation: Public Lands Act Responsible Agency: Ministry of Natural Resources

Water crossings and road construction/upgrading on Crown Land.

Aggregate Permit Legislation: Aggregate Resources Act Responsible Agency: Ministry of Natural Resources

Extraction of aggregate for construction activities

Work Permit Legislation: Lakes and Rivers Improvement Act Responsible Agency: Ministry of Natural Resources

Permits for each of the Polishing Pond Dam and Tailings Dam.

Endangered Species Act Permit Legislation: Endangered Species Act Responsible Agency: Ministry of Natural Resources

If proposed activities have the potential to affect a species listed on the Species at Risk in Ontario List and/or its habitat.

1.6



Table 1.2: Key Provincial Environmental Permits / Approvals Permits / Approvals Project Activities

Forest Resource Licence Legislation: Crown Forest Sustainability Act Responsible Agency: Ministry of Natural Resources

Tree removal on Crown land. Note: As a timber company already has a

license for this area, MNR may only want confirmation of an agreement between Premier and the licence holder.

O.Reg153/04 Legislation: Environmental Protection Act Responsible agency: Ministry of the Environment

Remediation of contaminated land (i.e., gas station, historic tailings)

Archaeological Clearance Legislation: Ontario Heritage Act Responsible Agency: Ministry of Tourism Culture and Sport

Disturbance of any potential archaeological sites

1.4.2.3 Municipal Requirements

The Municipality of Greenstone Official Plan provides direction for the development of land within the municipal boundaries. It is anticipated that an official plan and zoning by-law amendment may be required. In addition, permits/approvals may be required for the realignment of a municipal road (i.e., Michael Power Blvd) and any potential connections to municipal services. The municipality may have requirements related to environmental studies.

Regional Study 1.4.3

The area surrounding the Project has not been subject to a regional environmental study.

There have also been no Federal EA processes on adjacent properties to the Project, as Premier maintains a significant land position in the region and noted mineralization and mineral deposits are located within the property boundaries of Premiers land holdings (i.e., the Hardrock Property and other holdings).

1.5 STUDY AREA BOUNDARY

The formal study area boundary(ies) for the Project will be defined as the Project progresses. For the purposes of this report, terminology has been selected to aid the reader in a better understanding of the Project and the existing setting within which it is proposed:

General Project Area this term is an undefined area used to describe the local context for the Project, and generally includes the extent of the land shown on the mapping provided in this report.

1.7



Project Site this term is used to describe the general location of Project components; it represents the land within which the Project components will be sited.

1.6 PROJECT DESCRIPTION ORGANIZATION AND CONTENT

This document is intended to fulfill the requirements of a Project Description under the Prescribed Information for the Description of a Designated Project Regulations of the CEAA, 2012 for the Project. This Project Description Report was also prepared in accordance with the Guide to Preparing a Description of a Designated Project under the Canadian Environmental Assessment Act, 2012 (CEA Agency, 2012). The organization of this document follows the required structure as per CEAA, 2012 and the Guide to Preparing a Description of a Designated Project under the Canadian Environmental Assessment Act, 2012, as shown in the Table of Concordance.

1.8


Project Information April 23, 2014

2.0 Project Information

2.1 GENERAL DESCRIPTION, CONTEXT AND OBJECTIVES

Premier is planning to construct, operate and eventually close/reclaim a new open pit gold mine at the Project site to produce gold for sale. The Project is located in a relatively remote area of Ontario, approximately 275 km northeast of Thunder Bay. The Project is located just a few kilometres south of the ward of Geraldton (at the intersection of Michael Power Blvd and Highway 11), which is part of the amalgamated Municipality of Greenstone, Ontario. Topography is relatively flat to gently rolling. Highway 11 (also known as the Trans-Canada Highway) traverses the property in an east west direction.

The Project site is situated within a historic mine site. The former underground operations include the MacLeod - Mosher Mine and the Hardrock Mine. Each mine site was subject to mine closure work and rehabilitation in the late 1990s. A small town site related to historic mine operations (MacLeod Townsite) is located within the footprint of the proposed open pit. A second historic town site (Hardrock Townsite) is located to the east of the proposed open pit.

The Project is generally anticipated to include an open pit mining operation with an on-site ore processing facility, waste rock and tailings disposal sites, water treatment facility and serviced plant site. As the ore body is located beneath Highway 11, a highway re-alignment will also be required. The preliminary site layout shows that Premier proposes to place the required mine-related facilities in close proximity to the open pit to the extent practicable. The Project is located predominantly on lands owned/leased by Premier. Some Project components (such as the Tailings Management Facility (TMF) and waste rock pile) are located on Crown lands. Premier is in the process of taking these lands through the Claims to Lease process with MNDM. The historic MacLeod and Hardrock Townsites are currently in predominantly private ownership.

The open pit is designed as a conventional surface mining operation. Mining will occur at a rate of approximately 10,000 tpd of ore during the first two years of production. Following expansion of the mill, production capacity will be increased to 18,000 t/d in Year 3 for the anticipated life of mine (LOM), estimated to be 15 years. Of the 15 year LOM, 13 years will be necessary to mine the pit. During the last 2 years (14 and 15), mining will have completely ceased and the mineralized material stockpile will be the only supply for the mill. Ore for processing will be obtained from a combination of direct process open pit material and stockpile reclaiming operations.

The Hardrock resource will be mined from several open pits: one large pit (460 m depth at the end of mine life) and several smaller satellite pits of various depths (up to 150 m deep at end of mine life). The Main Pit is the larger of the pits spanning 1,515 m along strike by 863 m wide to a depth of 460 m at the end of mine life.

2.1



Several smaller satellite pits, east and west of the Main Pit will be mined to depths of up to 150 m at the end of mining. A total of 483.54 million tonnes of material including waste and resource material will be mined from the open pits over a 15 year period. The mill feed material consists of 89.33 million tonnes.

Ore processing will be carried out by conventional methods using a combination of gravity separation and cyanidation for gold recovery, followed by in-plant cyanide destruction using the SO2/air oxidation process. The mill will developed in two phases; Phase 1 will be capable of processing up to 10,000 tpd of ore, and Phase 2 will bring the plant capacity to 18,000 tpd. Tailings will be pumped via a pipeline to the TMF located approximately 8 km from the process plant. Tailings are anticipated to be potentially acid generating (PAG) and will be stored subaqueously. Ongoing ore processing plant water requirements will be derived from water recycled from the TMF. There will also be a need for additional surface water takings, likely from Mosher Lake. The anticipated total surface water taking from Mosher Lake is 55 m3/h following expansion of the mill in Phase 2. Mine-contact precipitation and runoff within the perimeter of the Project facilities, and water from pit dewatering, would be directed to the TMF or the process plant, depending on its quality. This excess site water will be treated and discharged to Kenogamisis Lake. Such discharge will meet applicable federal and provincial effluent discharge requirements.

Site infrastructure will be located to the west of the open pit and will generally include maintenance garages, warehouses, a mine dry, and administration buildings. Non-hazardous domestic solid waste may be deposited in an on-site landfill, unless a suitable off-site landfill with sufficient capacity can be found. Hazardous solid and liquid waste will be hauled off-site by a licensed contractor. A sewage treatment facility capable of handling approximately 300 people is envisaged for this Project. A packaged treatment plant for sewage treatment will be required with a permitted discharge consisting of an outfall pipe and diffuser to the selected surface water receiver (likely Kenogamisis Lake).

As part of the proposed development of the TMF, Lake A-322 and the associated first order watercourse draining the lake will be in-filled. A Goldfield Creek Tributary will also be realigned (between Lake A-323 and Goldfield Creek). The Southwest (SW) Arm Tributary located within the footprint of the proposed waste rock storage area will also likely be re-aligned.

Power for the Project will be supplied by HONI. Sufficient capacity and a connection point are assumed to be available at the intersection of Michael Power Blvd and Highway 11. Upgrades to the existing substation and a new Project substation will be required to accommodate the Project. Premier will work with HONI should a potential relocation of the substation be required.

2.2



2.2 DESIGNATED ACTIVITIES

The federal Regulations Designating Physical Activities identifies the physical activities that constitute the designated projects that could require the completion of a Federal EA. The following sections may apply to the Project:

Section 16(b): The construction, operation, decommissioning and abandonment of a new metal mill with an ore input capacity of 4,000 t/d or more

Section 16(c): The construction, operation, decommissioning and abandonment of a new rare earth element mine or gold mine, other than a placer mine, with an ore production capacity of 600 t/d or more

The mining and milling rate for the Project exceed the thresholds in the Regulations Designating Physical Activities under CEAA, 2012, and as such this Project Description must be submitted so that the CEA Agency may conduct a Screening to determine if the Designated Project requires an EA under CEAA, 2012.

2.3 COMPONENTS AND ACTIVITIES

General Approach and Environmental Protection Measures 2.3.1

The preliminary site layout is shown in Figures 2.1 and 2.2. The site plan will be refined as a result of further studies and ongoing consultation activities.

A variety of environmental protection and management measures will be adopted to guide the planning, design, construction, operation, and decommissioning, reclamation and closure of the Project. These include:

where possible, siting facilities to avoid sensitive areas such as wetlands, watercourses and important habitat types, and where unavoidable to minimize the size and number of natural features that may be affected;

minimizing the footprint of Project facilities and activities to consequently minimize the amount of disturbed land, wetlands and water resources;

employing good planning, design and management practices;

regulated standards for air and water emissions, for storage or disposal of solid wastes, and for handling and disposal of hazardous materials;

regulated and/or industry design and management standards to satisfactorily deal with environmental risks such as seismicity, unusual weather events, flooding, and erosion;

2.3



preparing an Environmental Protection Plan for construction activities that is included in, and enforced through, construction contracts;

preparing and implementing an Environmental Management Plan for operation to attend to the ongoing monitoring and management of, for example, land and soil resources, water, air and water quality, noise and vibration, hazardous materials and waste, and occupational and community health and safety;

preparing and maintaining an Emergency Response Plan for all Project phases;

planning the mine for closure, and having a Closure Plan, and a bonding agreement with MNDM;

planning and financing activities to compensate for unavoidable adverse effects on environmental resources such as wetlands and aquatic habitats; and

a robust public, stakeholder and Aboriginal engagement program. Premier has already had ongoing stakeholder and Aboriginal consultation activities since acquiring the property in 2008. These will be ongoing throughout the Project planning and permitting phase and implemented throughout construction and operations and eventual mine closure in order to ensure that, wherever possible:

concerns about the Project are accommodated in its design, construction, operation and closure; and

employment, business and other benefits are realized locally.

As stated above, the location of the Project components will be finalized based on engineering feasibility studies and environmental considerations. To the extent possible, Project facilities will be sited to avoid and minimize interactions with watercourses, wetlands, and areas of high archaeological potential; where avoidance is not possible, mitigation or compensation measures will be developed in consultation with the applicable regulatory authorities.

Existing Facilities and Infrastructure 2.3.2

Infrastructure exists on-site as a result of current exploration activities and historic mining activities.

As the site is an active exploration area there are a number of exploration-related facilities, used to define the current mineral resources as well as to investigate soil and groundwater conditions, located on the property. Exploration infrastructure includes a core shack and environmental trailer located in the Project footprint and a community relations office located in Geraldton.

Mineral exploration of the Hardrock property has been carried out since about 1980 by various companies. Capped mine shafts exist at the Project as a result of the historic mine operations.

2.4



Historic mining voids are also present as a result of past mining activity. Historical work on the Hardrock property is summarized by year in Table 2.1. The location of the historic Hardrock, MacLeod-Cockshutt and Mosher mines is shown on Figure 2.3.

2.5



Table 2.1: Historical Work Executed on the Hardrock Deposit Area Since 1980 Year Company Activity Comments * Reference

1980 Long Lac Mineral Ltd.

Studies of existing underground reserves; Lithological reconnaissance

Gray, 1994

1982 Lac Minerals Ltd. Mining Corporation of Canada

Ore reserves and ore potential in the Hard Rock and MacLeod-Mosher mines

Ore reserves of 1,300,000 tons at 0.140 oz/t Au (Proven and Probable ore)

80% of total ore located below Level 13 of the Mosher winze (No. 3 shaft)

Mineralization of the down-plunge of the F Zone and South Zone

Jarvi, 1982

1987 Lac Minerals Ltd.

Line cutting Ground magnetometer, VLF EM, and IP surveys; Diamond drilling (37 DDH = 6,218.9 m)

DDH targets were the open pit potential of the Hard Rock D and F Zones, North and South Porphyry, and Homestake-Porphyry Hill

Several IP anomalies were partially tested

Gray, 1994; 2012 Premiers Prospectus


Diamond drilling (40 DDH = 9,052.6 m)

DDH targets were the open pit potential of the Hard Rock D and F Zones, North and South Porphyry, and Homestake-Porphyry Hill

Gray, 1994; 2012 Premiers Prospectus

1992 Arsaco Exploration of Canada Ltd. Lac Minerals Ltd.

Agreement between Asarco Exploration and Lac Minerals

Arsaco acquired 95 patented claims and 52 Licences, including the former MacLeod- Cockshutt, Mosher-Longlac and Hard Rock mines

Mason and White, 1993

2.6




1993 Arsaco Exploration of Canada Ltd Lac Minerals Ltd.

106 reverse circulation overburden (RCO) drill holes (1,483.2 m); Diamond drilling (28 DDH = 5,125.2 m); Geological resource estimate

RCO drilling program was a reconnaissance test for anomalous gold values in glacial till - Diamond drilling program tested IP targets associated with iron formation and the near- surface portion of the F Zone

Pit resource: 1,920,000 tons at 0.079 oz/t Au with strip ratio of 4.76/1*

Ramp Resource: 1,600.000 tons at 0.127 ounce per ton*

Gray, 1994; Mason and White, 1993


17 reverse circulation overburden (RCO) drill holes (395.6m); 21 sonic drill holes (304.8m); Diamond drilling (78 DDH = 11,961.9 m)

RCO drilling program was a reconnaissance test for anomalous gold value in glacial till - Sonic drilling program tested the MacLeod- Mosher tailings

Diamond drilling program consisted of infill drilling within a potential open pit zone (F Zone, North Porphyry Zone, South Porphyry Zone, and No.2 Vein) and testing of the near-surface portions of the C Zone and North Zone.

Gray,1994


Prefeasibility study; Mineral resource estimate

Pit resource: 2,900,000 tons at 0.086 oz/t Au* Underground Resource:1,400,000 tons at 0.131 oz/t*

Reddick et al., 2010; Mason and White, 1995b


Diamond drilling (7 DDH = 1,024.4 m)

Diamond drilling program to test some of the crown pillars of old stopes of the past producer mines

Murahwi et al., 2011 and 2012

1996 Lac Properties Inc. Cyprus Canada Inc.

Project joint-venture; Diamond drilling (24 DDH = 1,024.4 m); Metallurgic work on the previous sonic holes; Samples from tailings; Environmental assessment work

Diamond drilling program defined the previous open-pit area identified by Lac Minerals and Asarco Exploration

Reddick et al., 2010

2.7




1997 Lac Properties Inc. Cyprus Canada Inc.

Diamond drilling (1 DDH = 185.0 m) Geological resource estimate

Pit resource: 9,800,000 tons at 0.047 oz/t Au* Tailing resource: 11,200,000 tons at 0.023 oz/t Au*

Reddick et al., 2010

2000 Lac Properties Inc.

Diamond drilling (1 DDH = 369.5 m)

Diamond drilling program tested the F Zone crown pillar of old stopes at the past producer MacLeod-Cockshutt mine

Telesnicki and Steed, 2007

2002 Lac Properties Inc.

Diamond drilling (16 DDH = 2116.8 m)

Diamond drilling program tested some of crown pillars of old stopes of the past producer Hard Rock gold mine

Soni and Steed 2002

2008 Premier Gold Mines Limited

Acquisition of the Lac Claims Premier


Diamond drilling (346 DDH = 91,802 m); Overburden stripping with power washing, mapping and sampling

Diamond drilling program focused on the North Iron Formation Area, Porphyry Hill Area and East Pit Area

Two areas were stripped (GP Zone and TAZ Zone)

Premier


Diamond drilling (279 DDH = 114,611 m); Overburden stripping with power washing, mapping, and sampling; Regional prospecting program

Three areas were stripped (East MacLeod Zone, Headframe Zone and Portal Zone)

Diamond drilling focused on the same area as in 2009 The main zones drilled were North, F, SP, NN, and K;

discovery of the F2 and Z

Premier; Reddick et al., 2010


Diamond drilling (204 DDH = 107,413 m)

Diamond drilling program resulting in the expansion of the SP, F, P and K zones

Discovery of the Tenacity South Zone Updated mineral resource estimates compliant with

Regulation 43-101 and Form 43-101F1

Premier; Murahwi et al., 2011

2.8





Diamond drilling (125 DDH = 68,549 m)

Diamond drilling program focused on the Fortune, HGN and P Zones

Updated mineral resource estimates compliant with Regulation 43-101 and Form 43-101F1

Premier; Murahwi et al., 2013


Diamond drilling Updated mineral resource estimates compliant with Regulation 43-101 and Form 43-101F1

Brousseau et al., 2013

*Unless specifically indicated as 43-101 compliant, all resources listed in the table are historical in nature and should not be relied upon.

2.9



Proposed Facilities, Infrastructure, and Activities 2.3.3

The key Project components are expected to include:

open pit;

waste rock storage areas;

ore pads;

mill feed storage area and crushing plant;

mill plant;

tailings management facility ;

mine water treatment facility;

sewage treatment facility;

internal access roads and pipelines;

buildings and yards;

explosives manufacturing and storage;

water distribution system;

fuel storage and distribution system;

power distribution system;

domestic solid waste handling facility; and

temporary construction camp.

Key activities that will need to be undertaken prior to construction include property acquisitions, Highway 11 re-alignment, watercourse realignments, vegetation clearing and the relocation of a portion of the historic MacLeod tailings.

Key Project Components

Open Pit

Mining of the Hardrock deposit has been designed as an open pit with a planned production of 3,650,000 tonnes per year (3.65M tpy) or 10,000 tpd of mineralized material processed at the mill during the first two years, and of 6,570,000 tonnes per year (6.57M tpy) or 18,000 tpd of mineralized material processed at the mill starting the third year, for 365 days per year of mill operation and mine operation. An isometric view of the open pit areas are provided in Figure 2.4.

2.10



The pit slopes will be designed for safety based on applicable industry standards. The benches in the rock will be developed by blasting. Pumps will likely be required for pit dewatering.

The mining method will be a conventional shovel and truck type operation. Ore, mine rock and overburden removed from the open pit will be trucked to the surface. Ramp widths will be designed to accommodate the necessary heavy equipment. Two types of trucks are likely to be required for the Project: 150 tonnes for mineralized material, overburden and waste; and 250 tonnes for waste only. The use of diesel shovels and/or electric shovels will be evaluated.

During pre-production, 1,230,000 tonnes of waste, 400,000 tonnes of overburden and 200,000 tonnes of mineralized material will be mined. This amount of waste was estimated to start the construction of the dyke, tailings, roads and parking area.

The estimated LOM for the Project will be 15 years during which 13 years will be necessary to mine the pit. This schedule will yield a total of 89,332,152 tonnes of mineralized material at an average grade of 1.18 g Au/t.

Production during the first two years will be at a full production capacity of 10,000 tpd. Production will be increased during the third year, following expansion of the mill, to 18,000 tpd (the increase in production will not be possible without the mill expansion). The total amount of mineralized material to be processed during the first two years will be 7,300,000 tonnes, for a total of 465,693 ounces of gold. Year 3 represents the first year of full production (18,000 tpd). Most of the mineralized material will be mined from Year 3 to Year 13; during this period, 72,270,000 tonnes of mineralized material containing 2,783,369 ounces of gold will be milled. Also during this period, more than 345.9 Mt of waste and overburden will be removed.

Mining operations, drilling and blasting will cease in Year 13. In that year, the mineralized material stockpile will be the primary supply for the mill and will account for most of the production. A total of 5,537,763 tonnes from the mineralized material stockpile and 1,032,237 tonnes from the open pit will be processed by the mill resulting in the production of 131,513 ounces in Year 13; a reduction from previous years due primarily to the lower average grade during this period.

During the last two years (14 and 15), mining will have completely ceased and the mineralized material stockpile will be the only supply for the mill. The total amount of mineralized material to be processed during these last two years will be 9,762,152 tonnes, for a total of 143,501 ounces.

The type of explosive used for the Project will be emulsion. Non-electric detonators will be used. An explosive manufacturing facility will likely be constructed on-site considering the volume of explosives needed each year.

2.11



Waste Rock Storage Areas

Waste rock has been classified as falling into one of two categories, inert non-acid generating (NAG), and reactive potentially acid generating/metal leaching (PAG/ML). Waste rock classified as inert has been assumed to produce runoff that will meet anticipated discharge requirements with possible removal of Total Suspended Solids (TSS) only. Waste rock classified as reactive is expected to produce runoff that may require treatment for metals, pH, and arsenic.

The open pit mine plan estimate approximately 388 Mt of NAG waste rock and overburden will be generated over the life of mine. NAG waste rock and overburden will be stored separately to the south of the pit on cleared ground that generally slopes toward Kenogamisis Lake. Material is assumed to be placed on the pad at a maximum height of 60 m at a 1.5:1 slope with a 10 m bench every 10 m. The maximum height of 60 m was estimated to be a reasonable height given the consideration of site visibility from public areas. The location of the storage area was selected to be reasonably close to the open pit to minimize the overall Project environmental footprint. The area was also considered to have suitable foundation conditions with appropriate land tenure. Runoff from the waste rock pile will be collected in sedimentation pond(s) for removal of TSS prior to being released to the environment.

An estimated 5.5 Mt of potentially reactive waste rock may require water treatment for parameters other than TSS. It is currently expected that this material will be stored on a lined pad, to the south of the open pit, with runoff collected and sent to the water treatment plant prior to discharge to the environment. As the Project proceeds and more information on acid rock drainage (ARD)/ML is obtained, a detailed waste rock management plan could include an evaluation of a co-disposal option of PAG/ML rock with NAG rock, to determine if the net discharge would meet regulatory effluent requirements. Other options will be considered as appropriate.

Ore Pads

Three separate ore pads (approximately178,000 square metres combined) will be located east of the mill and are capable of storing up to one million tonnes of mineralized material. Preliminary ARD/ML testing indicated that approximately 19% of the ore could be ARD/ML, it has been assumed at this time that the ore storage pads will be lined with an impermeable membrane, with runoff collected and sent to the water treatment plant prior to discharge to the environment. As the Project progresses and more information on ARD/ML is acquired, the need for lined ore pads and treatment of runoff may be eliminated.

2.12



Mill Feed Storage Area and Crushing Plant

A truck dump and primary crusher will be located east of the mill and adjacent to the open pit road. The dump will be capable of handling up to 250 tonne trucks. The primary crusher will feed the mill storage area, located north of the mill. The mill feed storage area is a fully enclosed area and will accommodate 47,000 tonnes of total ore capacity (27,000 tonnes live capacity), providing 1.5 days of live storage for the mill. Ore will be transported to the mill by conveyors (apron feeders).

Ore Milling and Processing Plant

The mill will include further ore crushing, semi-autogenous and ball milling, carbon-in-leach , cyanide destruction, carbon stripping, electrowinning, and refining. The mill will be built in two stages: Phase 1 will be capable of processing up to 10,000 tpd of ore and Phase 2 will bring the plant capacity to 18,000.

Ore processing will be carried out by conventional methods using a combination of gravity separation and cyanidation for gold recovery, followed by in-plant cyanide destruction using the SO2/air oxidation process. Tailings will be pumped via a slurry pipeline to the TMF located approximately 8 km from the process plant. On-going ore processing plant water requirements will be derived from water recycled from the TMF. There will also be a need for additional surface water takings, likely from Mosher Lake (55 m3/h). Excess site water will be treated and discharged to Kenogamisis Lake. Such discharge will meet applicable federal and provincial effluent discharge requirements.

Conceptual process flowsheets for Phase 1 and Phase 2 of operation are provided in Figures 2.5 and 2.6, respectively.

Tailings Management Facility

The TMF site selection process was generally carried out in accordance with Environment Canadas Guidelines for the Assessment of Alternatives for Mine Waste Disposal (Environment Canada, 2011). The location of the TMF considered technically and economically feasible alternatives, the use of natural topography for containment and ensuring all tailings storage is located in a single location. The location also considered the Projects environmental footprint and existing land tenure.

The TMF for the Project was conceptually designed to satisfy the design criteria provided in Table 2.2.

2.13



Table 2.2: Tailings Management Facility Design Basis Item Quantity Units

Mineral Reserve 89,332,152 tonne

Tailings/Ore Ratio 1.0 -

Tailings Production 89,332,152 tonne

Average Mill throughput 18,000 tpd

Specific Gravity 2.87 -

Deposition Method Spigot/endspill -

Average Void Ratio 1.00 -

Deposited Dry Density 1.435 tonne/m3

Tailings Volume Requirement 62,252,371 m3

The TMF will also be constructed in two stages, with Stage 1 having capacity to store the first two years of tailings production at a milling rate of 10,000 tpd, and the relocated historic MacLeod tailings from stripping activities required for open pit construction (estimated to be 1.32 Mt). Subsequent raises, to provide additional storage capacity, will be carried out to coincide with operations, but will likely be done on a two year cycle, and consist of downstream raises. All tailings will be assumed to be PAG and stored subaqueous in the TMF.

Based on available information of subsurface soils, it is not likely that suitable impermeable soils will be available in the area for dam construction and therefore it has been assumed that rockfill gravity structures will be required with an upstream impermeable membrane and seepage cutoff. Rockfill will be sourced from NAG mine waste rock.

All containment structures for the TMF will be designed in accordance with:

Canadian Dam Association Dam Safety Guidelines;

Ontario Dam Safety Guidelines ; and

MNR Lakes and Rivers Improvement Act requirements.

The proposed TMF location is preliminary and is subject to further evaluation through the MMER alternatives assessment process that will be undertaken in parallel with the Federal EA process.

Mine Water Treatment Facility

Process water treatment is anticipated for mine contact water on-site, ore pad runoff, waste rock pile runoff, and any excess from the TMF discharge.

2.14



As cyanide in tailings will be destroyed in the mill using the Air/SO2 treatment method, the parameters of concern will likely be arsenic, metals (likely copper from the Air/SO2 treatment), TSS, and potentially ammonia. It has been assumed that water treatment will be carried out using a high density sludge clarifier / thickener system. Any excess ammonia will be treated by a typical acidification/degassing system. The effluent will at a minimum meet MMER Schedule 4 limits As the Project progresses and the flows and concentrations of effluent parameters are better understood, further refinement of the best treatment strategy will be possible.

Internal Access Roads and Pipelines

The main access to the Project will be via the western leg of the existing Highway 11. This access to the Project site will be used by personnel, material deliveries, and haulage trucks transporting material to the mill. Upgrades to the road will not be required as it is assumed to be currently rated for the loads expected. The road will be maintained by Premier personnel year round.

Premier will also own and maintain internal site roads which will link the main site facilities. Large haul truck traffic and other site vehicular traffic will be separated where appropriate.

Pipelines will be needed to transport and dispose of water/waste between various facilities, including the open pit, mill/processing plant and TMF. A pipeline will also be constructed to provide freshwater for potable and process requirements. It is anticipated that excess treated effluent from the TMF will be pumped via pipeline to the receiving water after a downstream polishing pond. The location and dimensions of pipelines will be confirmed as the Project progresses.

Buildings and Yards

Parking Areas and Security Building

Four parking areas have been provided for the Project, including:

a central parking facility for the mine operations and maintenance crews, offices/work areas for all mine technical, supervisor, and management personnel, and mine rescue equipment maintenance and storage;

a parking facility closer to the mill for the mill crews;

a parking area for the temporary mining camp; and

a parking area for the open pit equipment.

2.15



Mine Dry, Office Building and Assay Lab

A two-storey 50 m x 22 m mine dry and office building has been included for this Project. The mine dry will be capable of accommodating 300 people and the office building will be comprised of conference rooms, washroom facilities, mine rescue, first aid and filing rooms as well as office for management staff, operating and maintenance, geology, engineering and administration personnel. An assay lab will be built within the mill complex.

Repair Shop and Warehouse Building

The shop and warehouse building will be approximately 100 m x 40 m. The shop will have nine bays to service open pit trucks and other surface equipment. It will be equipped with an overhead crane and will provide adequate space for the storage of maintenance tool cabinets and other items required for maintaining the mobile fleet.

The warehouse will be located in the back of the shop and will store mobile equipment parts and other material required throughout the life of the mine. The repair shop will also have adequate space for office/desks to manage the maintenance of the open pit fleet.

Explosives Storage and Manufacturing

Explosives needed for Project development will be prepared in a dedicated explosives manufacturing facility. This facility will be located a safe distance from the open pit. The distance between the various buildings that make up the facility (ammonium nitrate storage, emulsion plant, explosives magazines) will be established in accordance with the Quantity Distance Principles Users Manual (Natural Resources Canada, 1995). The facility will be licensed under the Explosives Act.

Water Distribution System

The water distribution system will provide fire water and service water to all of the surface buildings on the mine site. This system will also provide water for mining personnel working at the mine, for eyewash, safety shower, hand washing, toilets, and possibly for drinking water.

The mine site will be connected to the Geraldton municipal water system and upgrades to the current system are required.

2.16



Sewage Treatment Facility

The Ontario Building Code requires wastewater systems with flow rates of greater than 10,000 L/d regulated by the MOE under the Ontario Water Resources Act require an ECA. Based on projections of 300 workers at the Project camp and a similar number during operation, and assigning an average unit flow rate of 250 L/person-day, the average sanitary wastewater flow rate would be approximately 75,000 L/d. At this flow rate, a subsurface disposal system would be classified as a Large Subsurface Disposal System. At this time it has been assumed that a package treatment plant will be required with a permitted discharge consisting of an outfall pipe and diffuser to the selected surface water receiver (likely Kenogamisis Lake). The effluent will be treated to meet regulatory requirements.

Fuel Storage and Distribution

Tanker trucks would deliver diesel fuel and gasoline to the site on an as-needed basis for use by heavy equipment and Project vehicles. Liquefied Natural Gas (LNG) is also being considered as a potential fuel source. Fuels would be stored in approved above-ground storage tanks equipped with secondary containment in accordance with provincial regulations and standards. All fuel storage and distribution infrastructure would be constructed to modern engineering standards and would be approved under provincial legislation requirements. Stationary mine equipment would be fueled with a fuel-dispensing truck. The precise requirements for on-site fuelling will be determined during the Feasibility Study.

Power Distribution System

Power for the Project will be supplied by HONI. Sufficient capacity and a connection point are assumed available at the intersection of Michael Power Blvd and Highway 11. Upgrades to the existing substation and a new Project substation will be required to accommodate the Project. Premier will work with HONI should a potential relocation of the substation be required.

The main site electrical switchyard and substation will be located adjacent to the mill and the parking lot. All site primary power distribution will be via overhead lines, with local outdoor type e-houses for transformers and load centres at each point of utilization.

General site lighting will be a combination of power line pole mounted fixtures and building mounted fixtures at the offices, shop, and other miscellaneous buildings.

2.17



Waste

Solid waste will be collected in steel bins and recycled and reused to the extent practical. Paper and cardboard will be recycled; waste steel will be sold as scrap; wood and plastic will be salvaged and recycled where possible. Non-hazardous domestic solid waste may be deposited in an on-site landfill, unless a suitable off-site landfill with sufficient capacity can be found. Recyclable solid materials and garbage may be collected by a local contractor for recycling or disposal of the garbage.

All waste disposal shall be undertaken in accordance with existing regulations. Contractors shall be required to conduct all day-to-day operations in such a manner as to avoid creating any unpleasant appearances or any conditions that will be detrimental to the surrounding area.

The contractor shall ensure that waste oils, fuels, and hazardous wastes (if any) shall be handled in a safe manner. Contractors will be required to transport, store and handle all such substances as recommended by the suppliers and/or manufacturers and in compliance with all applicable federal, provincial or municipal regulations.

Temporary Construction Camp

A small temporary mining camp, for approximately 300 workers (in shifts), will be located near the main access road to the Project. The temporary camp will include a mine dry, office and cafeteria facilities. Portable trailers will be installed to accommodate the construction and development personnel required to complete the construction of the garage, administration and mill buildings.

Key Project Activities

Existing Property Acquisitions

Premier intends to acquire existing properties, some of which are currently inhabited, as a result of the Project. This includes 37 houses and 5 vacant lots in the MacLeod Townsite, a public park in the MacLeod Townsite,12 houses and 11 vacant lots in the Hardrock Townsite, a police station, a discovery centre, a headframe and a gas station/general store. Site remediation associated with the gas station and the historic MacLeod tailings will be evaluated by Premier. Premier anticipates that some holes on the Kenogamisis Golf Club course will likely need to be relocated as a result of the Project. Premier currently owns the golf course property and leases it to the Municipality.

2.18



Realignment of Highway 11

As the ore deposit is partially located underneath Highway 11, realignment of a portion of the existing Highway 11 is required to accommodate the proposed open pit. A Highway 11 feasibility route study was undertaken by Stantec in July 2013. The Study identified and assessed alternative routes around the open pit. The Study provides a framework for future discussion with the MTO, and provides recommendations to carry-forward more detailed studies to confirm a recommended route for Highway 11. At this time, a relocation of approximately 4.2 kilometres of length of highway is anticipated. This new road will continue to by-pass the Project, connect with Michael Power Blvd and will provide access to Geraldton.

Watercourse Realignments

The Project has been developed in order to select watercourse realignments with the aim of minimizing the overall environmental effects to flow regimes, water transfer between subwatersheds, fish and fish habitat, and to maximize Project efficiencies.

As part of the proposed development of the TMF, Lake A-322 and the associated first order watercourse draining the lake will be in-filled. A Goldfield Creek Tributary will also be realigned (between Lake A-323 and Goldfield Creek). The SW Arm Tributary located within the footprint of the proposed waste rock storage area will also likely be re-aligned.

In-filling and realignments will require further investigation and review as engineering studies are advanced.

Historic MacLeod Tailings

A portion of the historic MacLeod tailings will likely require to b

Documents

Premier Gold Mines Limited Hardrock Project Project Description