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Project Description Giscome Quarry and Lime Plant Giscome, British Columbia Submitted to: The BC Environmental Assessment Office 1 st Floor, 836 Yates Street PO Box 9426 Stn Prov Govt Victoria BC V8W 9V1 Submitted by: Graymont Western Canada Inc. #200 - 10991 Shellbridge Way Richmond, BC V6X 3C6 Prepared by: Pottinger Gaherty Environmental Consultants Ltd. #1200 – 1185 West Georgia Street Vancouver, BC V6E 4E6 PGL File: 2184-10.01 June 2013

Project Description Giscome Quarry and Lime Plant · 4.1 Project Justification ... 5.3.2 Primary Crusher ... Project Description – Giscome Quarry and Lime Plant June 2013 Graymont

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Page 1: Project Description Giscome Quarry and Lime Plant · 4.1 Project Justification ... 5.3.2 Primary Crusher ... Project Description – Giscome Quarry and Lime Plant June 2013 Graymont

Project Description Giscome Quarry and Lime Plant

Giscome, British Columbia

Submitted to:

The BC Environmental Assessment Office 1st Floor, 836 Yates Street PO Box 9426 Stn Prov Govt Victoria BC V8W 9V1

Submitted by:

Graymont Western Canada Inc. #200 - 10991 Shellbridge Way Richmond, BC V6X 3C6 Prepared by:

Pottinger Gaherty Environmental Consultants Ltd. #1200 – 1185 West Georgia Street Vancouver, BC V6E 4E6

PGL File: 2184-10.01

June 2013

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Table of Contents

1.0  Introduction ........................................................................................................................ 1 

1.1  Graymont – Corporate Overview ................................................................................ 1 

1.2  Corporate Policies ...................................................................................................... 2 

1.3  Project Contacts ......................................................................................................... 3 

1.3.1  Proponent ..................................................................................................... 3 

1.3.2  Consultants ................................................................................................... 4 

2.0  Project History ................................................................................................................... 4 

3.0  Project Location and Mapping ......................................................................................... 5 

4.0  Project Purpose and Rationale ........................................................................................ 5 

4.1  Project Justification..................................................................................................... 5 

4.2  Estimated Resource ................................................................................................... 5 

4.3  Capital Cost ................................................................................................................ 6 

5.0  Project Overview ............................................................................................................... 6 

5.1  Project Components ................................................................................................... 6 

5.2  Mining Method ............................................................................................................ 6 

5.3  Site Layout and Facilities ........................................................................................... 6 

5.3.1  Limestone Quarry ......................................................................................... 6 

5.3.2  Primary Crusher ............................................................................................ 7 

5.3.3  Haul Road ..................................................................................................... 7 

5.3.4  Lime Processing Facility ............................................................................... 7 

5.3.5  Process and Potable Water .......................................................................... 8 

5.3.6  Explosives Storage Facility ........................................................................... 9 

5.3.7  Solid and Waste Water Management ........................................................... 9 

5.3.8  Storage, Loading and Shipping Facilities ..................................................... 9 

5.3.9  Rail Spur and Access Roadway ................................................................... 9 

5.3.10  Co-product Storage and Handling .............................................................. 10 

5.3.11  Fuel Storage and Handling ......................................................................... 10 

5.3.12  Ancillary Structures ..................................................................................... 10 

5.4  Closure and Reclamation ......................................................................................... 10 

5.4.1  Limestone Quarry ....................................................................................... 10 

5.4.2  Lime Processing Facility ............................................................................. 11 

5.4.3  Haul Road ................................................................................................... 11 

6.0  Project Setting ................................................................................................................. 11 

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6.1  Existing Conditions ................................................................................................... 11 

6.2  Geology .................................................................................................................... 11 

6.3  Terrain ...................................................................................................................... 12 

6.4  Climate ..................................................................................................................... 12 

6.5  Hydrology ................................................................................................................. 13 

6.6  Hydrogeology ........................................................................................................... 14 

6.7  Water Quality ............................................................................................................ 15 

6.8  Vegetation ................................................................................................................ 15 

6.9  Fish and Fish Habitat................................................................................................ 16 

6.10  Wildlife ...................................................................................................................... 16 

6.11  Land Use .................................................................................................................. 17 

6.11.1  Prince George ............................................................................................. 18 

6.11.2  Contemporary Land Use ............................................................................. 18 

6.11.3  Land Use Regulation and Zoning ............................................................... 19 

6.11.4  The Prince George Land and Resource Management Plan ...................... 19 

6.11.5  The Official Community Plan for Electoral Area F ...................................... 19 

6.11.6  Prince George Area Crown Land Plan ....................................................... 20 

6.11.7  Environmentally Important Areas ............................................................... 21 

6.11.8  Forestry ....................................................................................................... 21 

6.11.9  Agricultural .................................................................................................. 22 

6.12  Archaeology .............................................................................................................. 22 

7.0  Potential Effects .............................................................................................................. 22 

7.1  Physical and Biological Environments...................................................................... 22 

7.1.1  Air Quality ................................................................................................... 22 

7.1.2  Noise ........................................................................................................... 23 

7.1.3  Fisheries ..................................................................................................... 23 

7.1.4  Vegetation ................................................................................................... 23 

7.1.5  Wildlife ........................................................................................................ 23 

7.2  Land Use .................................................................................................................. 23 

7.3  Visual Aesthetics ...................................................................................................... 24 

7.4  Archaeology .............................................................................................................. 24 

7.5  Social, Health and Community Issues...................................................................... 24 

7.6  Workforce and Employment ..................................................................................... 24 

8.0  Consultation Activities to Date ...................................................................................... 25 

8.1  First Nations Engagement ........................................................................................ 25 

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8.2  Public and Stakeholder Consultation ....................................................................... 25 

8.3  Provincial and Regional Government Consultation .................................................. 25 

9.0  Proposed Development Schedule ................................................................................. 25 

10.0  Required Permits ............................................................................................................. 25 

10.1  British Columbia Environmental Assessment Act .................................................... 26 

11.0  References ....................................................................................................................... 27 

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TABLES

Table 1: Normal maximum, minimum and average temperatures for Prince George Airport, BC (1971–2000) .................................................................................................................................. 12 Table 2: Precipitation data for Prince George Airport, BC (1971–2000) ....................................... 13 

FIGURES

Figure 1 Site Location and Local Setting Figure 2 Graymont's Land Claims Figure 3 Plant Layout Figure 4 Quarry Layout Figure 5 Process Flow Sheet

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List of Acronyms

ALR - Agricultural Land Reserve

CDC - BC Conservation Data Centre

CN - Canadian National Railway

COSEWIC - Committee on the Status of Endangered Wildlife in Canada

LRMP - Land and Resource Management Plan

MOE - BC Ministry of Environment

MOF - BC Ministry of Forests

SARA - Species at Risk Act

SBS - Sub-Boreal Spruce biogeoclimatic zone

SBSmk1 - Mossvale variant of the moist cool sub-boreal spruce subzone

SBSwk1 - Willow variant of the wet cool sub-boreal spruce subzone

SBSvk - very wet cool sub-boreal spruce subzone

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Project Description – Giscome Quarry and Lime Plant June 2013 Graymont Western Canada Inc. Page 1 PGL File: 2184-10.01

1.0 INTRODUCTION

Graymont Western Canada Inc. (Graymont) is proposing to construct and operate a limestone quarry and lime processing facility in the Giscome area of British Columbia (Figure 1). The rate of limestone extraction will initially be up to approximately 600,000 tonnes a year, with a future potential limestone extraction rate of up to 1.2 million tonnes per year.

This project description is an update to a previous 2007 version, and includes the following key changes that are considered significant measures to improve the project's ability to protect environmental and social values:

Selection of more efficient vertical kilns to thermally treat the crushed limestone. The 2007 Project Description proposed the potential use of horizontal rotary kilns, which have a greater fuel consumption and produce higher greenhouse gas emissions.

Purchase of an additional 109 hectares of private land surrounding the lime processing facility to create an 800m buffer around the proposed kilns.

Completed preliminary meetings with the Lheidli-T'enneh First Nation.

The Project constitutes a reviewable project pursuant to Part 3 (Mine Projects) of the Reviewable Projects Regulation (BC Regulation 370/02), because it would be a new quarry facility that involves the removal of limestone over the threshold of 250,000 tonnes/year of quarried product, and it would be regulated under the Mines Act. The Project is also reviewable pursuant to Part 2 (Industrial Projects) of the Reviewable Projects Regulation because the lime plant would have a production capacity above the threshold of 100,000 tonnes/year.

1.1 Graymont – Corporate Overview

Graymont is a family-owned company whose management team and employees are dedicated to meeting or exceeding customer needs. The company is focused on high calcium and dolomitic lime, value-added lime-based products such as specialty hydrates and precipitated calcium carbonates, aggregate and pulverized stone.

Graymont takes a long-term view of its business and the lime industry. Graymont has been in the lime business for over 50 years and operates facilities on sites that have been in operation for up to 200 years. Graymont is among the leaders in the industry in adding new efficient plants and equipment and operates some of the most modern facilities on the continent. Since 1989 Graymont has built close to 2.8 million tonnes of new state of the art capacity and will continue to add new capacity to meet market demand.

Graymont is the third largest producer of lime in North America. In Canada, Graymont subsidiaries have operations from New Brunswick to British Columbia. In the United States, subsidiary companies operate in Ohio, Pennsylvania, Wisconsin, Washington, Oregon, Montana, Utah, and Nevada while serving markets in a much wider geographic area. In addition to Graymont's lime interests, Graymont Materials, located in upstate New York and the province of Quebec, provides construction stone, sand and gravel, asphalt products, and ready mix concrete for the infrastructure and general construction needs of the area.

Additional information, including names of the current executive team, can be found at http://www.graymont.com.

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1.2 Corporate Policies

Graymont has developed a series of corporate policies including a Sustainable Growth, Environment, Health and Safety, and Public Relations, which are provided below:

Sustainable Growth Policy

Graymont is committed to responsibly meeting society’s needs for quality lime and stone products through high levels of social, economic and environmental performance. We believe that our opportunities to contribute to and thrive in the communities and economies in which we operate must be earned through demonstrated adherence to this commitment.

To this end, Graymont and its management team will demonstrate leadership by:

Conducting all aspects of our business with honesty, openness and integrity. Proactively seeking, engaging and supporting dialogue regarding our operations. Fostering leadership in resource stewardship throughout Graymont, wherever we operate. Seeking to minimize the impact of our operations on the environment and biodiversity. Practicing continuous improvement through appropriate application of new technology,

innovation and best practices in all facets of our operations. Being efficient and effective in providing long-term economic value to shareholders,

communities and customers.

And, in all aspects of our business and operations, Graymont and its employees will:

Respect human rights and treat those with whom we deal fairly and with dignity. Respect the cultures, customs and values of people with whom our operations interact. Obtain and maintain business through ethical conduct. Comply with internal standards and all laws and regulations in each jurisdiction where we

operate. Be responsive to community priorities, needs and interests through all stages of facility

development, operations, and closure. Contribute to maintaining and enhancing the economic, social and environmental norms in all

communities where we operate.

Health, Safety and Environment Policy

At Graymont we work together to fulfill our world-class vision by operating safe, clean, orderly facilities, where everyone shares a strong commitment to an injury-free workplace and a dedication to improving our environmental performance. Our goal is to promote the health and safety of all employees, protect and preserve the environment, and contribute to the well-being of the communities where we operate.

We will: Further our belief that the health and safety of our employees is paramount to building a

sustainable and successful business by actively pursuing opportunities to encourage safe and healthy employee behavior both in and out of the workplace.

Ensure that Health, Safety and Environmental (HSE) considerations are an integral part of each job and every process by: Committing to respecting, implementing and abiding by the Graymont HSE Standards

and all applicable regulatory obligations.

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Individually committing to open dialogue about HSE opportunities, innovations and performance.

Engaging all levels and functions of the organization in supporting the HSE initiatives and goals.

Including HSE considerations at all stages of our projects or processes in order to deliver world class results.

Develop, implement and continuously improve systems designed to achieve zero HSE incidents.

Enhance environmental stewardship through efficient, best-in-class operations and business practices by: Fostering a strong respect for the environment by efficiently and economically utilizing

our natural resources. Striving for zero waste by focusing on reduction, beneficial reuse or elimination of

traditional waste and co-product streams. Make certain that Graymont HSE standards comply with or surpass all relevant laws and

regulations. Require our business partners and contractors to adopt appropriate HSE practices. Walk the talk, demonstrating integrity and exercising leadership by actively promoting HSE

excellence in everything we do. Commit the appropriate resources to design, build, operate and maintain safe and

environmentally responsible facilities. Continuously challenge ourselves to identify and pursue opportunities to improve our HSE

approach, processes and results.

We will accomplish these commitments by empowering our employees to achieve long term continuous improvement in all aspects of HSE performance.

Community Relations

Graymont has a long-term commitment to the maintenance and enhancement of society, the environment and the economy in all communities where we live and work.

As a good neighbour, we demonstrate support through monetary investment in community programs, projects and activities, and by encouraging and supporting employee involvement in the community.

1.3 Project Contacts

1.3.1 Proponent

Graymont Registered Office: #200 10991 Shellbridge Way Richmond, BC V6X 3C6

Rob Beleutz Environmental, Health and Safety Manager Phone: 604-249-1911 Fax: 604-207-9014 Email: [email protected]

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1.3.2 Consultants

Environmental Assessment: Lead Pottinger Gaherty Environmental Consultants Ltd. 1200-1185 West Georgia Street Vancouver, BC V6E 4E6

Primary Contact: Stewart Brown Phone: 604-895-7612 Fax: 604 -682-3497 E-mail: [email protected]

2.0 PROJECT HISTORY

The mineral claims (known as the Pat claims) located over the proposed quarry location were staked in 1993 by one of Graymont’s predecessor companies. During late 1993 and 1994, eight diamond drill holes tested the limestone potential in the timber cut-block on the Pat 2 claim. This drilling plus surface mapping and sampling surveys conducted at the same time determined there were significant volumes of high-calcium limestone resources on the property. The fieldwork defined the northern and eastern boundaries of the limestone deposit. The property was held in good standing until 2005 when additional geological mapping and sampling was performed on the claims and the surrounding area. More claims were staked around the periphery of the original claim block in early 2006.

In the summer and late fall of 2006, an additional 18 diamond drill holes totalling 8,299 feet of drilling further tested and defined the eastern and northern limits of the deposit and confirmed additional limestone resources to the west. Ore tonnage estimates indicate greater than 100 million tonnes of high quality limestone on Graymont’s property.

In 2007 Graymont agreed to purchase from Canadian National Railway (CN) approximately 150 acres (60 hectares) of land at the southwest end of Eaglet Lake, just east of the settlement of Giscome. This site was formerly used by CN for quarrying ballast rock, and is the proposed location for the lime processing plant. In 2006 Graymont also acquired an adjoining parcel of land immediately to the east of the former CN land. Figure 2 illustrates land claims and land ownership in the vicinity of the Project.

In 2007 the BC Environmental Assessment Office issued an order under the Environmental Assessment Act indicating that the Project required an Environmental Assessment Certificate before it could proceed. Graymont and its consultants prepared and submitted a draft Terms of Reference for the Project in 2007,and undertook the majority of field assessments and initiated reporting. Graymont subsequently put the Project on hold at the end of 2007 for economic reasons.

Graymont has since determined that the Project is now viable and intends to complete the environmental assessment, and submit an Application for an Environmental Assessment Certificate to the BC Environmental Assessment Office.

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3.0 PROJECT LOCATION AND MAPPING

The Project is located approximately 27 kilometres east-northeast of Prince George, BC (Figure 1). The proposed lime processing plant is located on Graymont-owned land, approximately 1km east-northeast of the settlement of Giscome (Grid Reference for approximate centre: 542430.32E, 5992122.14N; Latitude 54°04'32.17" N, Longitude 122°21’05.97" W). The proposed lime processing plant site is level and is located immediately to the south of Eaglet Lake at an elevation of approximately 600m above sea level. It is proposed that an adjacent CN rail line will be the main form of access to the site. Road access to the site will be along an existing road which currently connects to the south western edge of the proposed plant area.

The proposed quarry is located on Crown land, approximately 4km southeast of the settlement of Giscome (Grid Reference for approximate centre: 546604.52E, 5989513.51N; Latitude: 54°03'07.02"N, Longitude 122°17'17.54"W). The topography in the vicinity of the proposed quarry is characterized by rolling hills separated by low-lying, generally swampy areas. Elevations range up to 855m in the hills to the northeast. The proposed limestone quarry will be accessed by a haul road, the route of which is currently being evaluated.

The regional setting of the Project is illustrated in Figure 1, and the local setting and Project location are illustrated in Figure 2.

4.0 PROJECT PURPOSE AND RATIONALE

4.1 Project Justification

The Proponent (Graymont Western Canada Inc.) is proposing to construct and operate a lime processing facility and associated quarry (the Project) in the Giscome area of British Columbia. The proposed Project will produce high quality lime products for use in environmental and industrial applications and limestone products for use as construction stone. The principle markets for the proposed Giscome lime plant will be flue gas desulphurization and mining applications. The proposed Project is well suited to development of a lime manufacturing facility because of its proximity to the CN railway and the presence of high quality limestone deposits.

Phase I construction of the lime plant with one kiln and quarry is expected to employ 40 to 60 people, totalling about 15 to 20 person-years. Approximately 15 permanent positions could be created for operation of the single kiln plant site and quarry. Phase II construction of the second and third kilns, if warranted by market conditions, would require about 15 person-years during construction.

4.2 Estimated Resource

The mineral claims (known as the Pat claims) located over the proposed quarry location were staked in 1993 by one of Graymont’s predecessor companies. During late 1993 and 1994, eight diamond drill holes tested the limestone potential in the timber cut-block on the Pat 2 claim. The fieldwork defined the northern and eastern boundaries of the limestone deposit. In the summer and late fall of 2006, an additional 18 diamond drill holes totalling 8,299 feet of drilling further tested and defined the eastern and northern limits of the deposit and confirmed additional limestone resources to the west. Ore tonnage estimates indicate greater than 100 million tonnes of high quality limestone on Graymont’s property.

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4.3 Capital Cost

The Pre-feasibility Study estimated the initial capital cost of the first phase of the Project to be between $80 million and $90 million. Capital cost of Phase II would be $25 million. The Project will contribute to the BC and federal governments by way of corporate taxes, provincial net proceeds and net revenue taxes, sales taxes, and employment taxes on a long-term basis.

5.0 PROJECT OVERVIEW

5.1 Project Components

Graymont proposes to construct and operate a lime processing facility and associated quarry (the Project) in the Giscome area of British Columbia. The Project consists of the following major components:

A limestone quarry; A 7km-long (approximate) haul road connecting the limestone quarry to the lime processing

plant; A lime processing plant; Storage, loading and shipping facilities; A 600m-long (approximate) rail spur connecting the lime processing plant facilities to CN’s

main line, and an access roadway that connects the processing plant facilities to the existing public roadways;

Co-product storage and handling; Fuel storage and handling; and Ancillary structures.

5.2 Mining Method

The limestone quarry is proposed to ultimately cover an area of just over 2km2 or 220 hectares of Crown land. The initial focus for the quarry operations will be a 70-hectare central block determined based on a geologic resource model developed from Graymont’s drilling data, geological studies and exploration program. Figure 4 shows proposed initial and ultimate quarry extents. The rate of limestone extraction will initially be up to approximately 600,000 tonnes a year, with a future potential limestone extraction rate of up to 1.2 million tonnes per year.

Conventional quarry-type mining methods will be used to extract ore and unsuitable rock from the proposed quarry. Drilling and blasting will be used to break the rock.

5.3 Site Layout and Facilities

The Project infrastructure will include the following facilities: limestone quarry, haul road, lime processing facility, storage, loading and shipping facilities, rail spur and access roadway, co-product storage and handling, fuel storage and handling, and ancillary buildings.

5.3.1 Limestone Quarry

Conventional quarry-type mining methods will be used to extract ore and unsuitable rock from the proposed quarry. Drilling and blasting will be used to break the rock. The ore will be crushed at the quarry prior to being transported to the lime processing facility. The economics of transporting the limestone to the processing plant area by haul truck or by conveyor is being evaluated as part

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of the Mine Feasibility Study. Hydraulic front-end loaders will load blasted rock into haul trucks if they are to be used. As part of the Mine Feasibility Study, Graymont is also evaluating options for electrical power supply to the quarry and explosives storage areas.

Fugitive dust emission, water and sediment control and management measures will be incorporated into all phases of quarry development and operation to ensure safety and environmental protection.

Quarry activities, including loading, crushing and hauling operations, will normally occur during two 8-hour shifts, five days per week, for 80 hours per week, but could extend beyond this if required.

5.3.2 Primary Crusher

Crushing activity will occur at the limestone quarry prior to ore being transported to the lime processing facility. Ore will be crushed using a mobile or stationary primary crusher. Selection of mobile or fixed equipment will be evaluated as part of the Mine Feasibility Study. Hydraulic front-end loaders will load ore into the crusher where it will be sorted at the screening tower into three sizes: 2"x5", 3/4"x2" and minus 2" (Figure 3).

Fugitive dust emission controls will be incorporated into all phases of development and operation to ensure safety and environmental protection.

5.3.3 Haul Road

A number of potential haul routes are currently being evaluated. If the Mine Feasibility Study determines that use of haul trucks are preferred, crushed stone will be transported to the processing plant using a connecting haul road, which is approximately 7km long. The proposed haul road may cross a combination of Crown land and land owned by Graymont. Negotiations with the Crown will be necessary in order to gain any relevant authorizations and to develop road use agreements and sharing conditions. The haul road will be designed in line with regulatory requirements to safely accommodate two-way truck traffic and to ensure surface water runoff is managed appropriately. The road will be graded into the natural ground and will be surfaced with crushed limestone.

A small network of service vehicle roads will also be developed within the proposed quarry disturbance limits that will allow access to the quarry and other portions of the Project site.

5.3.4 Lime Processing Facility

The lime processing plant will be located on a level parcel of land approximately 1km east-northeast of the settlement of Giscome and approximately 400m south of Eaglet Lake. A schematic of the initial plant layout (one kiln) and process flow diagram provided in Figures 4 and 5. This layout is indicative only and is subject to change and finalization.

Operations at the lime processing plant will include the following processing stages:

Thermally treating the crushed limestone in vertical kilns; Storing manufactured product, raw materials and fuels; Controlling dust and stack emissions; Managing wastewater, co-products and off-specification product, and Providing support and administrative facilities.

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A simplified lime manufacturing process flow sheet for a typical lime plant with one kiln is provided in Figure 6. This flow sheet is indicative only and is subject to finalization for the proposed Giscome plant.

The processing plant will operate 24 hours per day, 7 days per week. Crushed stone is fed from conventional stockpiles into either one, two or three vertical kilns (two 600tpd kilns and one 400tpd kiln) with a combined feed capacity for three kilns of 3,600 tonnes per day of limestone. Graymont intends to construct one 600tpd vertical kiln initially and add one or two additional kilns based on market demand. Lime is created through the thermal processing of limestone in a process known as calcination. Calcination drives carbon dioxide (CO2) gas out of calcium carbonate to form calcium oxide or lime.

The rate of annual lime production will initially equal approximately 198,000 tonnes, with a potential annual lime production rate of 528,000 tonnes from three kilns.

It is estimated that up to 2,040Gj/mt per day of fuel will be required to produce enough heat for combustion in one kiln. Graymont is currently evaluating a variety of solid fuel sources, such as pulverized petroleum coke and thermal coal. Graymont is also currently investigating the burning of biosolids (wood waste), natural gas and liquid natural gas to verify whether it would be a feasible alternate fuel source.

Additional heat energy sources may also include liquid or gaseous fuels such as oil #6, propane and natural gas. These fuels currently may not be economical as a full-time fuel source; however; they will be suitable for starting the process and will also improve heat distribution throughout the process.

An air quality management plan and best industry practice will be implemented where practicable in the lime processing plant and associated storage, loading and shipping facilities to ensure that emissions from all operations within the plant site boundary are controlled and minimized. Such control measures may include baghouses, scrubber systems or filtration devices; minimizing product and fuel handling activities; covering stockpiles; and collection and recycling of dust back into the process.

Graymont has purchased 521ha of land on which the lime processing facility will be located. The purchased land will provide a minimum buffer of 800m around the kilns to reduce potential impacts on adjacent land owners.

A water and wastewater management plan that conforms with best industry practice will also be implemented where practicable within the boundaries of the lime processing plant site (including the plant, the product and fuel storage, handling and shipping areas and ancillary structures) to ensure that potential impacts to surface water quality are minimized.

5.3.5 Process and Potable Water

Proposed quarry and lime processing activities do not currently include a requirement for process water as scrubbers will not be used and lime hydration will not occur onsite. Graymont. However. will likely apply for a water licence and install a well to extract water for plant washrooms and showers. If potable water is required for consumption, bottled water will be trucked to the site.

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Graymont currently holds a conditional water licence to draw 4.546m3/day of water from Churchill Creek for domestic use on the North 1/2 of District Lot 9331, Cariboo District except Plan PGP43114 and Lot 1, District Lot 9331, Cariboo District, Plan PGP43114.

5.3.6 Explosives Storage Facility

Explosives required for blasting activities will be stored in an approved facility at the quarry. In addition to ANFO (an ammonium nitrate-fuel oil mixture), and Dyno Blastex (a packaged emulsion explosive), the storage facility will also house detonating cord, fuse lighters, surface and non-electrical delays, boosters, and blast gel.

5.3.7 Solid and Waste Water Management

Solid waste will be separated and segregated for management and waste reduction purposes. Recyclables and waste hydrocarbons or chemicals including waste oil, lubricants and regents will be shipped offsite for disposal while other suitable waste will be disposed of through refuse burial at an approved landfill.

The Environmental Assessment Certificate Application will include a list of material types and a proposed handling and disposal procedure.

5.3.8 Storage, Loading and Shipping Facilities

The storage, loading and shipping facilities will be located entirely on private lands that are owned by Graymont. The lime loading facility will incorporate automated truck and rail loading capabilities. Finished lime products will be loaded into railcars and trucks at controlled flow rates to minimize spills of the lime products. The rail deliveries and shipments will coincide with the CN rail schedules. Shipments by truck may occur anytime during a 24-hour period and are dependent on customer needs.

5.3.9 Rail Spur and Access Roadway

Rail is expected to be the primary means of transporting lime products to customers and receiving solid fuel for kilns. A rail spur that once connected the plant site area to CN’s rail line was removed in years past. Graymont is proposing to rebuild this rail spur in its former location. Once the rail spur is connected to the plant site, it will branch off into several parallel sidings to facilitate both empty and loaded railcars.

An existing road currently connects to the western edge of the processing plant; however, the road access will need to be upgraded in order to allow truck traffic to the plant site area. Trucks will be used to ship and receive a lesser quantity of the lime products and raw materials, respectively. Trucks will also be used to transport small volumes of consumables and manufactured products.

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5.3.10 Co-product Storage and Handling

Co-products will be generated through quarrying and processing the limestone, as follows.

Overburden and excess rock associated with the quarrying operation. The overburden and excess rock will be sold where possible or stockpiled for later use as reclamation materials within the quarry.

Undersized materials or material rejects removed from the lime process prior to thermal treatment. These materials will also be stockpiled for later use in reclamation activities within the quarry.

Lime collected from dust collection and partially calcined limestone minerals from the lime manufacturing process and emission control systems will be reused within the process or sold where possible. Where no other use can be found for the lime kiln dust, it will be disposed of in an authorized landfill.

Graymont is currently assessing whether or not the kilns will be equipped with baghouses or semi-wet scrubbers. If scrubbers are incorporated in the kilns, water is consumed and evaporated at 40L/min. Water enhances the semi-wet scrubbing process but does not result in a wastewater discharge.

5.3.11 Fuel Storage and Handling

In general, rail access will allow the processing plant to receive solid fuel shipments on a regular basis reducing the requirements for onsite storage. However, winter weather conditions will more than likely necessitate stockpiling a six-month reserve of solid fuel.

A fuel management plan will be implemented to ensure handling, storage, transfer and spill response procedures are adhered to for all phases of the Project and that potential impact to surface water quality is minimized.

5.3.12 Ancillary Structures

Additional ancillary structures include: an administrative office, truck weigh scale, maintenance shop, oil storage building, electrical substation building, and liquid fuel storage tanks. Onsite liquid fuel storage will be in dual-lined, aboveground tanks. These tanks will contain diesel and gasoline, used for plant vehicles and possibly for auxiliary engines. Propane storage would also be considered for heating, and possibly for auxiliary and standby engine fuel.

5.4 Closure and Reclamation

The quarry and lime plant are expected to operate for 50 plus years.

5.4.1 Limestone Quarry

A closure plan for the limestone quarry will be developed for the Environmental Assessment Certificate Application.

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5.4.2 Lime Processing Facility

Buildings and structures that comprise the limestone processing facilities including the limestone plant, storage loading and shipping facilities, fuel storage and handling facilities, and all other ancillary structures will be removed from the site as part of the closure process. Structures will be dismantled and sold or recycled where available. If sale or recycling is not a viable option, then the structures will be demolished and disposed of appropriately.

Following removal of the structures, any residual contamination which may have impacted the site through its operating life will be remediated to applicable BC Contaminated Sites Regulation standards. The site will be graded and seeded as required.

5.4.3 Haul Road

Graymont will determine whether the haul road will still be required by forestry operators or other stakeholders in the local area at the time of closure. If the haul road is not required, it will be re-graded to prevent surface water from ponding and will be scarified to encourage natural revegetation.

6.0 PROJECT SETTING

6.1 Existing Conditions

The Project is located approximately 40km east-northeast of Prince George, BC. The proposed limestone quarry is to be located on Crown land in an area measuring approximately 200 hectares (ha) and is located approximately 4km southeast of the settlement of Giscome. The proposed limestone processing plant is to be located approximately 1km east-northeast of Giscome on a 20ha plot.

A portion of the northern extent of the site was used as a ballast quarry by CN in the 1970s. Portions of the property have been historically logged or used for agricultural purposes. The remainder of the site is undeveloped and there is no indication that the site and immediate surrounding area to the site have been developed for industrial or commercial use. Aerial photographs indicate that a logging camp existed at the southwest end of Eaglet Lake (currently occupied by Canadian National Railway Company) from the 1940s to the 1970s, with various sawmills operating in the same area from the 1960s to the 1970s.

6.2 Geology

Glacial deposits are widespread and outcrops rare in the local area. The limestone outcrops within Graymont’s Pat claims are believed to be in the Upper Triassic Cariboo Terrane Formation. The dominant rock units noted in the area include a massive, medium- to dark-grey cryptocrystlline limestone; a medium-grey, fossiliferous wackestone to grainstone, with a variety of fossils, including crinoid ossicles and stems, solitary rugose and colonial corals, brachiopods, bivalves, gastropods, and other minor bioclasts; and a carbonaceous, very dark-grey unit, consisting of interbedded shales, wackestones, and grainstones.

A previously conducted magnetometer survey outlined a boundary between the Pat claim limestone and the volcanic exposures in the eastern edge of the proposed quarry area. The boundary trends about 340°.

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Limestone within the project area consists of abundant high calcium limestone, which consists of greater than 95% calcium carbonate and less than 5% magnesium carbonate (dolomite). To date, exploration efforts have indicated an in situ resource in excess of 100 million tonnes of high calcium limestone. Further exploration is scheduled for this summer and mine planning is underway to better define the available limestone resource.

6.3 Terrain

The Pat claims lie within the Cariboo Mountains of the Interior Plateau of east-central British Columbia. Topography in the Giscome area is characterized by rolling hills separated by low-lying, generally swampy areas. Elevations range from 640m along Bateman Creek to 855m in the hills to the northeast. Glacial deposits cover much of the area near and surrounding Giscome, and can reach up to 100m in thickness. They include tills, drumlins, lacustrine deposits, and outwash gravels. The thickness and composition of surficial deposits vary locally. Overburden within the Pat claims consists of greenish-grey till with isolated boulders, grey clay, gravel, and bentonite. Overburden thickness in the central block of the proposed quarry area varies between 0 and 25m.

6.4 Climate

The site is located within the Fraser Basin Ecoregion1 which is a broad, lowland and rolling upland area, located in the southwestern portion of the Sub-Boreal Interior Ecoprovince. The climate is sub-continental with even precipitation amounts throughout the year. Easterly-flowing moist Pacific air coupled with summer surface heating of lakes and streams bring summer rains, while in the winter, southward-flowing cold Arctic air meeting moist Pacific air bring persistent snowfall events. More specifically, the site is located within the McGregor Plateau eco-section of the Fraser Basin Ecoregion. This eco-section has a cool moist climate caused by moist Pacific air rising over this plateau as it moves over the Hart Ranges to the east. In the winter dense, cold Arctic air can invade from the north down the Northern Rocky Mountain Trench or from over the Hart Ranges to bring long periods of intense cold and snow.

The Canadian climate normals for 1971–2000 as published online2 by Environment Canada indicate that the average daily temperature for the Prince George Climate Station, 55km northeast of the site, range from -9.6°C in January to 15.5°C in July.

Table 1: Normal maximum, minimum and average temperatures for Prince George Airport, BC (1971–2000)

J F M A M J J A S O N D Year

Daily Max (°C) -5.5 -0.8 5.0 11.4 16.5 19.5 22.1 21.7 16.4 9.5 0.6 -4.0 9.4

Daily Min (°C) -13.6 -10.0 -5.5 -1.1 3.2 7.0 8.8 7.9 3.8 -0.4 -6.3 -11.7 -1.0

Daily (°C) -9.6 -5.4 -0.3 5.2 9.9 13.3 15.5 14.8 10.1 4.6 -2.9 -7.8 4.0

1 The British Columbia Ecoregion Classification D. A. Demarchi, 2011, Ecosystem Information Section, Ministry of Environment, Victoria, British Columbia. 2 Canadian Climate Normals or Averages 1971–2000 website, found at http://climate.weatheroffice.ec.gc.ca/ climate_normals/index_e.html. Accessed October 3, 2012.

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The area receives an average annual precipitation for the Prince George Climate Station of 601mm, consisting of 149mm of rainfall and 216cm of snowfall. The average snow depth increases from 5cm in November to 28cm by January, and is typically gone by April. Precipitation is fairly even throughout the year, with the greatest amount of precipitation observed in June (72.7mm). February experiences the least amount of precipitation with 31.4mm.

Table 2: Precipitation data for Prince George Airport, BC (1971–2000)

J F M A M J J A S O N D Year

Rainfall (mm) 6.2 7.2 13.1 25.9 49.5 72.7 63.5 51.1 51.9 50 20.2 7.5 419

Snowfall (cm) 55.8 30.1 22.9 6.3 1.4 0 0 0 0.6 8.4 36.2 54.4 216

Precipitation (mm) 52.4 31.4 32.7 32.2 50.9 72.7 63.5 51.1 52.5 57.9 51.5 52 601

The average wind speed at Prince George is 9.4km/hr and the predominant wind direction is southerly (greater than 14% of the time). During 2004, calm periods (i.e., periods with wind speeds less than 1km/h) occurred 13.8 to 18.4 % of the time (Ministry of Environment (MOE), Environment Protection Division, 2006).

6.5 Hydrology

The proposed Graymont project is located within the Bateman Creek watershed, which lies largely within the Nechako Plateau provincial hydrologic zone. Bateman Creek is a small system which flows in a north-westerly direction, ultimately draining into Eaglet Lake near the settlement of Giscome. Eaglet Lake in turn drains westwards via Hay Creek into the Willow River and then into the Fraser River. The Fraser watershed is a major North American river basin supporting a highly significant salmon population. The confluence of the Willow and Fraser Rivers lies upstream of the confluence of the Nechako and Fraser Rivers at Prince George.

A number of tributaries to Bateman Creek have been named; however, the majority of the sub-catchments are unnamed. No previously collected water quality or systematic hydrometric data appears to be available for this watershed. The BC Ministry of Transportation holds a water licence on Eaglet Lake for a maximum of 36,000 gallons per day for the purpose of dust control (licence number C115132), and the BC Fish and Wildlife Branch holds a water licence for a maximum of 10 cubic feet per second (ft3/s) for the purpose of works constructed for conserving fish or wildlife (licence number C064588) (MOE, 2007a). MOE (2007a) does not report actual water usages. An older reconnaissance report suggests that beaver dams may play a role in the hydrology of Bateman Creek, and lists spot discharge measurements (taken in May 1984, but assumed by the report authors to be representative of “average summer conditions”) of 10–15ft3/s (Griffith, 1984).

The overall local climatic regime is typically nordic, with subfreezing temperatures and significant snow accumulation from about November through March. Streamflow regimes in such regions tend to be nival in character, with maximum flows occurring during spring snowmelt freshet, and a low-flow (baseflow) period during winter. Although Bateman Creek does not appear to have been monitored, Water Survey of Canada data are available for the adjacent (but substantially larger) Willow River watershed (Hay Creek joins Willow River approximately 5km east of Eaglet Lake). The average annual hydrograph for the Willow River is illustrated in Figure 3, and it is expected

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that the hydrograph for Bateman Creek will follow a similar overall form, albeit with much lower flow rates.

Winter baseline hydrology work was performed in late February 2007. Field survey activities included initial site reconnaissance, assessment of winter hydrologic conditions, and winter water quality sampling.

Snowpack was at least 1.0–1.5m throughout the watershed and ice cover was extensive (up to 1m thick), even in the lower reaches of Bateman Creek. Two surveying stations were established in the lower section of the Bateman Creek mainstem. The lower of the two sites was located approximately 200m upstream from the Eaglet Lake confluence; the upper station was situated approximately 700m upstream from Eaglet Lake, 20m above the Giscome South Bridge crossing.

Results from this survey indicate minimal winter flow in the Bateman Creek mainstem. The downstream site exhibited free-flowing water depths less than 0.1m, while the upper site had an impounded depth of just under 0.5m. To the limited extent that surface water quality could be sampled (from one wider pooled area), the results do not suggest substantial impact from anthropogenic activities within the basin, and overall hydrochemical characteristics appear generally consistent with wintertime groundwater contributions, possibly imprinted by carbonate catchment geology (e.g., low Total Suspended Solids, moderately high hardness, slightly alkaline [ph-7.8]).

6.6 Hydrogeology

The hydrogeology of the proposed quarry area will be investigated to allow the evaluation of baseline hydrogeology conditions at the quarry and associated facilities, and to provide a dataset with which to conduct the environmental assessment. The proposed quarry area is within the headwaters of Bateman Creek. Current mine plans call for the quarry to be excavated to an elevation below adjacent portions of the Bateman Creek channel, and to approximately the same elevation or lower than the water level in Eaglet Lake. The field program will provide information needed to evaluate groundwater levels, groundwater flow (lateral and vertical components), groundwater quality, and interactions between groundwater and surface water. In particular, the field program will focus on collecting the data required to evaluate potential interactions between groundwater and Bateman Creek, and between groundwater and Eaglet Lake.

Currently available geologic drilling results suggest that the limestone in the quarry area has low hydraulic conductivity. Prolific groundwater-bearing zones have not been encountered.

The plant will require a water supply for potable use and may require a water supply for the process, depending on the final process selected. Water quantities required are not presently known. If a significant, laterally extensive groundwater-bearing zone is encountered during the field program, a water supply well may be installed for testing purposes. A short-term pumping test would be conducted to estimate the well yield and to evaluate nearby boundary conditions. The well would be designed to be suitable for conversion to a water supply well if favourable conditions were encountered.

Potential impacts to groundwater resources are expected to be minor, and indirect impacts to surface water resources due to interactions between groundwater and surface water are expected to be more important. Indirect effects to surface water resources may include: reduction

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in base flow to Bateman Creek due to quarry dewatering; changes in Bateman Creek water quality due to discharge of quarry dewatering water; changes to Bateman Creek water quality due to transport of solutes from facilities associated with the quarry through groundwater; and changes to the Eaglet Lake water balance due to quarry dewatering. The environmental assessment will focus on potential indirect effects to surface water resources due to changes to groundwater quantity and quality.

6.7 Water Quality

The proposed Graymont project is located within the Bateman Creek watershed. Results of a literature and data review and preliminary analysis will be used in conjunction with field monitoring data to identify the baseline surface hydrological and water quality characteristics of water bodies potentially affected by the proposed project.

6.8 Vegetation

The Project is located in the Fraser Basin Ecoregion, which is located in the Sub-boreal Interior Ecoprovince, to the east of the Coast Mountains and to the west of the Interior Plains in the north-central part of British Columbia. Within the Fraser Basin Ecoregion, the Project is located in the McGregor Plateau Ecosection and near the Nechako Lowland Ecosection.

Vegetation in the Project area is within the Willow variant of the wet cool sub-boreal spruce subzone (SBSwk1). This is bordered on the west by the Mossvale variant of the moist cool sub-boreal spruce subzone (SBSmk1) and on the east by the very wet cool sub-boreal spruce subzone (SBSvk). Broad Ecosystem Inventory mapping of the area (1:250,000; MOE 2006, Internet site) shows that white spruce – sub-alpine fir and sub-boreal white spruce – lodgepole pine are the most common forest types. Smaller amounts of lodgepole pine and hybrid white spruce–black cottonwood riparian forest are also present. Also present in the area are wetlands, cultivated fields, and Eaglet Lake. The mapping indicates several patches of old-growth forest in the area. Due to the mountain pine beetle outbreak in central BC, it is expected that most of the lodgepole pine in the area will be infested or dead.

Rare plants and ecosystems may occur in the local area. These include species listed by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC 2006, Internet site) as Endangered, Threatened, or Special Concern, those listed on Schedules 1, 2, and 3 of the Species at Risk Act (SARA 2006, Internet site), and those listed as Red (Endangered or Threatened) or Blue (Special Concern) by the BC Conservation Data Centre (CDC 2006, Internet site). Rare ecosystems are listed by the CDC.

Seventy-one rare plant species are listed by the CDC as occurring in the Sub-Boreal Spruce (SBS) biogeoclimatic zone. Two Blue-listed species (special concern); pygmy waterlily (Nymphaea tetragona) and American sweet-flag (Acorus americanus), have been observed near the Project in Eaglet Lake. Several other CDC-listed species, including short-flowered evening primrose (Camissonia breviflora), Smith’s melic (Melica smithii), tender sedge (Carex tenera), and bald sedge (Carex tonsa var. tonsa), have been observed in the region.

A CDC search for Red- and Blue-listed ecological communities revealed 11 communities that occur in the SBSwk1 in the McGregor Plateau Ecosection. A search for the SBSwk1, SBSmk1 and SBSvk in both the McGregor Plateau and Necako Lowland revealed a further 17 ecological communities.

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6.9 Fish and Fish Habitat

There are historical reports of both Chinook and rainbow trout in Bateman Creek, and of burbot, largescale and longnose sucker, rainbow trout, mountain whitefish, Dolly Varden, northern pikeminnow, and a number of forage fish species in Eaglet Lake.

Migration into Bateman Creek from Eaglet Lake during the open water season is likely; however, year-round use of the watershed by different fish species is currently not well understood.

Eaglet Lake was observed to support recreational fishing during the winter, and it almost certainly supports fishing during the open-water season.

A preliminary winter field assessment was conducted in conjunction with the surface water field assessment in late February 2007. Although the observed water levels were very low at the two survey stations established on the lower reaches of Bateman Creek, the dissolved oxygen concentration was high, and flow was present at the downstream site, providing the necessary habitat elements for fish eggs to survive through the winter.

The upper sampling location indicates “pooled areas” are present in the lower river section, which provide limited over-wintering habitat for juvenile fish. The dissolved oxygen concentration at this site was also high, providing the necessary habitat elements for over-wintering; however, it is unlikely that adult life stages are present in the system. Large-bodied fish would likely over-winter in Eaglet Lake, where habitat and food are more abundant.

6.10 Wildlife

Over 200 species of wildlife may occur in the study area, including a number of species at risk.

Five species of amphibians, including the long-toed salamander, western toad, Columbia spotted frog, wood frog, and pacific treefrog potentially occur in the region (Green and Campbell 1992; CDC 2006, Internet site; Klinkenberg 2006). All of these species are listed as Yellow or secure in British Columbia. One species of reptile potentially occurs in the region, the common garter snake, which is also listed as Secure in BC (Gregory and Campbell 1987; CDC 2006, Internet site).

The Sub-Boreal Interior Ecoprovince supports a large number of bird species. Close to half of all birds generally found in British Columbia are known to breed in the region (Demarchi, 2011). Eaglet Lake, which is just north of the site, supports both osprey and bald eagles, and these species could use the study area for nesting and foraging (Wilson, pers. Comm.). Depending on the habitat, several other species may be nesting in the area. The mixed deciduous and coniferous forests of the local area are known to support a wide variety of species including common ravens, pine siskins and yellow warblers (BC Ministry of Forests (MOF), 1991). Riparian areas may support black terns and rusty blackbirds, which are listed as Blue in BC and as Special Concern by COSEWIC (MOF 1991; COSEWIC 2006, Internet site; CDC 2006, Internet site). Older pine forests commonly support great horned owls, northern hawk owls, and spruce grouse (MOF, 1991). Of the bird species occurring in the eco-region, at least eight are listed as Blue (Special Concern) in BC including the sharp-tailed grouse, great blue heron, American bittern, sandhill crane, short-eared owl, barn swallow, rusty blackbird, and Le Conte’s sparrow (CDC 2006, Internet site). At least four species are listed as Red (Endangered or Threatened) including

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the peregrine falcon, Swainson’s hawk, upland sandpiper, and Cape May warbler (CDC 2006, Internet site).

Ungulates such as moose and elk are common regionally, as well as locally (MOF, 1991). Woodland caribou (southern population) are found in the region but outside the project area, with two herds being located at least 45–50km of the site. The Hart Range is located approximately 45km east of the site and supports approximately 450 caribou and has a stable population (CDC 2006, Internet site). The Narrow Lake caribou range is located approximately 50km southeast of the site and supports approximately 50 caribou. This population is believed to be declining (CDC 2006, Internet site). One other herd was historically located approximately 50km south of the site, but it is believed to be extirpated as of 2004 (CDC 2006, Internet site).

Grizzly bear may also be found in the region. Although grizzly bear are listed as Threatened, the Grizzly Bear Population Units that fall within the study area have populations that are listed as viable (Hamilton et al., 2004). Local wildlife biologist, Doug Wilson (pers. comm.), indicated that he was not aware of any mammalian species that are at risk in the Project area and that the wildlife values in the Project area are standard for the region.

6.11 Land Use

The proposed Giscome Quarry and Lime Plant is located in the Regional District of Fraser-Fort George in British Columbia. The Regional District of Fraser-Fort George is a federation of four municipalities, including the City of Prince George, and seven electoral areas, including Electoral Area F: Willow River-Upper Fraser. More specifically, the Project site is located approximately 27km to the east-northeast of Prince George.

The project area is located in a rural area, with the communities of Giscome and Newlands and the Town of Willow River in the near vicinity. These communities fall under Electoral Area F. Giscome and Newlands are located on either end of Eaglet Lake, with Giscome on the southern end. Newlands is approximately 10km northeast of Giscome at the northern end of Eaglet Lake. Willow River is located 10km west of Giscome.

Historically, Giscome, Newlands and Willow River were ‘railway towns’ that were founded with the building of the Grand Trunk Pacific Railway in the early 1910s. The Railway surveyed residential lots along the tracks, many of which still exist in the area. The lumber industry developed in the early 1920s, and the communities were bustling mill towns for the next 50 years. A sawmill used to operate approximately 20 miles to the northeast of the Giscome and was one of the largest and longest running sawmills in the district. The mill industry thrived until the 1970s, when larger companies bought out the smaller operations. Since then, the former towns have disbanded and the population in the area has dwindled. The economy is now based on small-scale agriculture.

The communities of Giscome and Newlands rely largely on hay and cattle. There are approximately 21 houses in Giscome. The community has very few services: a school and regional park. Until recently, the CN ballast pit was operational in Giscome (on the proposed lime processing plant site). A small scale quarry, locally known as the Kode-Jerrat quarry is located approximately 0.6km north of Graymont’s proposed quarry footprint. It is understood that small-scale limestone extraction operations take place in this quarry.

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Newlands is also a small farming community, with no services. Both Giscome and Newlands depend on Willow River and Prince George for services and amenities.

According to Statistics Canada 2001 findings, the population of the area is 155, although that takes into account the communities of McGregor, Wolverine, Hansard, Aleza Lake, and Upper Fraser, in addition to Newlands and Giscome. The estimated population of Newlands and Giscome combined is approximately 70 people.

The town of Willow River was established in 1912 by the Grand Trunk Pacific Railway. The Railway surveyed 2,000–3,000 lots in the area, many of which still exist but are undeveloped. The former ‘railroad town’ and mill town is now a bedroom community for Prince George. It has a post office, grocery store, liquor store, gas station, and video store. The population of Willow River in 2011 was 130 people.

6.11.1 Prince George

Prince George was founded in the early 1800s as “Fort George,” which was a fur trading post at the junction of the Nechako and Fraser Rivers. The site remained a trading post for close to a century, but with the arrival of the Grand Trunk Pacific Railway line the Fort was officially incorporated as the City of Prince George.

The region’s economy has hinged on the forestry industry for over eight decades. Prince George has approximately 15 paper mills and sawmills. Forestry alone comprises 28% of the income for the city. Other key facilities in the area include two chemical plants and an oil refinery.

According to Statistics Canada 2011 findings, the population of the Fraser-Fort George Regional District, with Prince George as the principal urban centre, is 91,879. The population for the area decreased slightly (i.e., 0.4%) from 2006 to 2011. In 2006 approximately 82% of the inhabitants had lived in the area for at least five years, with 18% of the population migrating to the area from outside of the district between 2001 and 2006.

Given Prince George’s proximity to the Giscome Quarry and Lime Plant, the city will likely serve as the Project’s primary source of labour. The labour force for the Prince George area was approximately 53,500 in 2006, with an unemployment rate of 7.8%. According to provincial statistics, the unemployment rate in the region (Cariboo) in November 2012 was 5.1%.

The population of Prince George is well educated, particularly since the founding of the University of Northern British Columbia in 1994. More than a third of the population has completed a post-secondary certificate or diploma program. Approximately 49% of the educational population above 25 years of age have Engineering and Applied Sciences Technical/Trades as their field of study.

6.11.2 Contemporary Land Use

Prince George is the hub for central British Columbia and provides major services for the regional area, including health, emergency response (fire and ambulances), higher education, government services, and an international airport. In addition, all major businesses are located in the city. It is anticipated that Prince George will be the principal provider of major services for the Project.

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6.11.3 Land Use Regulation and Zoning

Land use in the Giscome area is governed by Zoning Bylaw No.833, which applies to most of the Regional District of Fraser-Fort George. The area is regulated by three major plans: the Prince George Land and Resource Management Plan (LRMP), the Prince George Area Crown Land Plan, and the Official Community Plan for Electoral Area F. The LRMP and Prince George Area Crown Land Plan regulate Crown land, while the Official Community Plan regulates private land. The proposed site for the Graymont Quarry is on Crown land and therefore the LRMP and Crown Land Plan will regulate the quarry to a greater degree than the Official Community Plan. The opposite is true for the proposed Plant site, which is located on private land and will be regulated largely by the Community Plan.

6.11.4 The Prince George Land and Resource Management Plan

The Prince George LRMP is a long-term plan for land use and resource development on Crown land within the Prince George District. The plan is based on the principles of integrated resource management and has developed recommendations (accepted by government) for a number of resources including: forestry, recreation, minerals, energy, agriculture, range, water resources, fish, wild-life, access, heritage, and culture.

The LRMP planning area is subdivided into five broad land use categories: Agriculture and Settlement, Enhanced Resource Management, General Resource Management, Special Management, and Protected Areas. The Giscome Lime Plant and Quarry fall under the category of “Agriculture and Settlement.”

One of the key objectives of the LRMP is to “ensure opportunities and access for the exploration and development of subsurface resources.” The Prince George LRMP supports exploration and development on suitable Crown land that is not within the protected areas. The Giscome Project falls under this category. The plan provides strategic direction for detailed planning to allow responsible resource development.

6.11.5 The Official Community Plan for Electoral Area F

Land use in the area is also regulated by the Official Community Plan for Electoral Area F. The Community Plan is the long-term development policy of the Regional Board for the Willow River–Upper Fraser Valley. Consistent with other community plans in the Regional District of Fraser-Fort George, the plan indicates the overall objectives of managing land and resource use so as to: reflect the wishes of local residents, minimize conflict between adjacent land uses, account for other governmental policies, and allow for the cost-efficient provision of public services.

The plan is intended to be relevant for 5 to 10 years and includes a general resource management objective “to recognize the importance of the region’s forest, agricultural and mineral resource base and to support an integrated approach to their management, such as is progressing under Local Resource Management Plan, Protected Area Strategy and similar planning exercises, including non-extraction uses such as wildlife management, watershed and scenic protection, lakeshore conservation, and other special environmental considerations for the maximum long-term benefit of the region’s residents.”

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The plan includes management objectives in the areas of: transportation, agriculture, commerce, industry, Crown land, water resources, fish and wildlife, the environment, recreation and heritage, and services and infrastructure. A key objective is to recognize that the extractive industry is often best located in rural areas close to the resource. According to the plan, resource extraction is allowed in the area, but resource processing requires an application for a zoning change.

The plan also aims to support the general objectives of the BC Land Reserve Commission, namely to preserve agricultural land and encourage the establishment and maintenance of farms, as well as the use of Agricultural Land Reserve compatible with agricultural purposes.

6.11.6 Prince George Area Crown Land Plan

The Crown Land Plan contains a comprehensive inventory of Crown land use and resource attributes, as well as future land requirements for various settlement and resource-oriented uses, including: agricultural and grazing land, forest, wildlife habitat, public recreation land, conservation land, rural residential land, aggregate materials, industrial and commercial land. Privately owned lands, which may be shown as allocated to a specific Crown land use, are not governed by the provisions and policy guidelines of the Plan.

According to the Prince George Crown Land Plan map and based on conversations with a representative of Front Counter BC, the proposed Graymont Lime Plant will be located on privately held lands, whereas the proposed Graymont Quarry will be located on Crown land. The approximately 7km haul road will cross both private and Crown land.

Crown land designations include:

Wildlife Habitat Management Area: Crown lands considered both suitable for wildlife habitat use and important to the continuous production, maintenance and conservation of local and regional wildlife resources.

Recreation and Conservation Management Area: Crown lands considered most suitable for outdoor recreation and natural or heritage conservation uses and which may be required to meet the recreational and conservation needs of the region.

Settlement Reserve Area: Crown lands with capability or suitability for a range of future settlement-oriented uses and which should be reserved until development for an appropriate use is considered desirable.

Agricultural Development Area: Crown lands considered most suitable for agricultural production and necessary for the expansion and development of a viable agricultural industry, the diversification of the regional economic base, and strengthening of the agricultural community in the Prince George Area.

Integrated Forestry Management Area: Crown lands considered most suitable for timber, range, watershed, fish and wildlife production, and forest-oriented recreation, which should be managed in an integrated and coordinated fashion to maximize the long-term environmental, social and economic benefits of these resources for local and regional residents.

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The primary objectives of the Plan are as follows:

Resolve existing land/resource use conflicts by allocating available Crown lands to their most suitable uses, based on biophysical and socioeconomic information.

Establish guidelines and policies for management, future planning and development of Crown land identified as suitable for different uses.

Facilitate the land and resource use programs of affected government agencies involved with Crown land in the Prince George Area.

Eliminate the uncertainty surrounding future timber supplies and promote silvicultural programs for Crown forest land most suited for inclusion in a provincial forest.

Reduce processing time for Crown land applications and minimize their referral to other agencies.

The Plan lists four alternative means of achieving the basic Plan objectives:

1. Alternative “A” – The Forest Management Plan Emphasis maximizes Crown land available for short and long-term timber harvesting and forest management.

2. Alternative “B” – The Mixed Resource Management Emphasis maximizes Crown land available for management, conservation and protection of a full range of natural resources, including forest resources.

3. Alternative “C” – The Mixed Management and Development Emphasis maximizes Crown land available to accommodate a variety of development oriented uses according to anticipated Crown land requirements.

4. Alternative “D” – The Agricultural Development Emphasis maximizes Crown land available for short and long-term agricultural development.

Alternative “C” best applies to the proposed Graymont Quarry site and associated haul road.

6.11.7 Environmentally Important Areas

Environmentally important areas near the proposed project site include Eaglet Lake and Aleza Lake, the latter of which is located approximately 15 km northeast of Giscome. The Aleza Lake Research Forest is a 9,000ha university-based outdoor research facility and working forest. The research and education programs are multi-disciplinary in nature, with an emphasis on partial cut harvest systems, biological diversity, climate change, and environmental monitoring in small forest tenures.

6.11.8 Forestry

The local area was once characterized by a thriving lumber industry and mill towns. A large sawmill used to operate approximately 32 km to the northeast of the area but that has been closed for several years, and there are currently no active sawmills in the area. Logging still occurs to the northwest of Eaglet Lake.

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6.11.9 Agricultural

Small-scale agriculture is prominent in the area, especially hay and cattle farming. A portion of the Site is located within the Agricultural Land Reserve and may require approval for a non-farm use from the Agricultural Land Commission.

6.12 Archaeology

A review of the Archaeological Branch database found that no previous archaeological assessments have been completed on the site. An Archaeological site, GaRo1, was located at the outlet of Eaglet Lake west of the site. Artefacts included lithic and bobe material. A total of about 1,500 artefacts and flakes were recorded for GaRo1, of which 71 are classified as artefacts.

An Archaeological Impact Assessment will be completed as part of the Application for an Environmental Assessment Certificate. Graymont will consult and involve the Lheidli-T'enneh First Nation during the completion of the Archaeological Impact Assessment.

The objectives of the Archaeological Impact Assessment will be:

To identify and evaluate any other archaeological deposits that may be present within the proposed development area;

To identify and assess possible impacts of the proposed development on any identified archaeological sites;

To provide recommendations regarding the need and appropriate scope of further archaeological studies prior to the initiation of the proposed development; and

To recommend viable alternatives for managing adverse impacts.

7.0 POTENTIAL EFFECTS

7.1 Physical and Biological Environments

The project will create new disturbances, which has the potential to impact the physical and biological environment including: air quality, noise, fisheries, vegetation, and wildlife.

7.1.1 Air Quality

Impacts to air quality will result from quarry and the lime plant activities. The different emission sources are classified as follows:

Stationary combustion sources (e.g., kilns, engines, generators, compressors); Particulate emission sources (e.g., bag house exhausts and other particulate emission

control device exhausts within the plant); Line or area sources of particulate emissions from train and truck traffic; and Particulate emission sources from lime quarrying, crushing, storage and handling activities.

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The key pollutants that will be emitted include:

Sulphur dioxide; Oxides of nitrogen as nitrogen dioxide; Carbon monoxide; Total hydrocarbons ; Volatile organic carbons; and Total particulate matter.

The emission rates for the above pollutants will be estimated based on the maximum design activity levels and either the manufacturer’s specification for each source, various equipments, where available, or the applicable emission factors recommended in Environmental Protection Agency’s AP-42 report will be applied.

7.1.2 Noise

Noise generation will occur from construction and operational activities. Noise will be associated with quarry activities including blasting and operation of the primary crusher, as well as noise associated with the processing plant operation. Noise frequency will be instant, intermittent or continuous.

7.1.3 Fisheries

There are historical reports of both Chinook and rainbow trout in Bateman Creek, and of burbot, largescale and longnose sucker, rainbow trout, mountain whitefish, Dolly Varden, northern pikeminnow, and a number of forage fish species in Eaglet Lake. While watercourses do not occur within the footprint of the quarry or facility, there is the potential that the haul road may cross watercourses. The haul road route has not yet been selected. Potential impacts to watercourses will be reviewed as part of the environmental assessment.

7.1.4 Vegetation

Vegetation removal will occur within the quarry and lime processing facility. Field reports are currently being completed and results will be used to assess the potential impacts to plant communities and species at risk as part of the environmental impact assessment.

7.1.5 Wildlife

Direct or indirect habitat removal may occur and impact wildlife or species at risk. Field reports are currently being completed and results will be compiled and assessed to identify impacts to wildlife populations as part of the environmental impact assessment.

7.2 Land Use

A Contemporary Land Use Study will analyze and describe the Project’s potential effects on land and resource uses, taking into account the overall objectives of the Willow River–Upper Fraser Official Community Plan and existing applicable Land and Resource Management Plans. The assessment will consider impacts of the Project on current and potential future land and resource uses.

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7.3 Visual Aesthetics

Changes to the landscape resulting from Project construction and operation will be assessed. Impacts to visual and aesthetic resources will address effects on a regional study area scale and a local study area including the community of Giscome.

7.4 Archaeology

A review of the Archaeological Branch database found that no previous archaeological assessments have been completed on the Site. An Archaeological Impact Assessment will be completed as part of the environmental assessment to assess the potential and identify and evaluate any other archaeological deposits that may be present within the proposed development area.

7.5 Social, Health and Community Issues

The Giscome quarry and lime plant will be located near the community of Giscome. Construction of the lime plant with one kiln and quarry is expected to require a labour force of 40 to 60 people during construction. Approximately 20 permanent positions will be generated for operation of the single kiln plant site and quarry.

An assessment of the social and economic impact of the influx of temporary workers on the local area during the construction phase will be provided, including their potential impact on local services and business, housing, transport, emergency services, infrastructure and community services. Similarly the long-term socioeconomic and socio-community impacts of the operations of the Giscome Plant and Quarry will be assessed.

Primary research will be conducted with key stakeholders in the Giscome and Prince George areas. Anticipated stakeholders include, but are not limited to: elected officials, regional planners, non-governmental organizations, and individuals from the service sector (health, education, emergency response, fire, police, transport, and utilities).

7.6 Workforce and Employment

Phase I construction of the lime plant with one kiln and quarry is expected to require a labour force of 40 to 60 people during construction. Approximately 20 permanent positions will be generated for operation of the single kiln plant site and quarry. Phase II construction of the second and third kilns, if warranted by market conditions, would require a labour force equivalent to about 15 person years during construction. The Phase II project will require few, if any, additional employees to operate.

Most employment opportunities will become available when construction on the project begins. Graymont will hire qualified local residents whenever possible. In addition, indirect employment opportunities will be created in a variety of service areas including road maintenance, transportation of products, and equipment servicing. Graymont will use competitive local business services that can meet the Project’s requirements.

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8.0 CONSULTATION ACTIVITIES TO DATE

8.1 First Nations Engagement

The Project is located within the traditional territory of the Lheidli-T'enneh First Nation. Graymont has undertaken preliminary discussions with the Lheidli-T'enneh First Nation and will continue to consult with them during all phases of the environmental assessment. In addition, Graymont will also engage the Lheidli-T'enneh First Nation in completion of the Archaeological Impact Assessment.

8.2 Public and Stakeholder Consultation

The public consultation program will be designed to meet and exceed the requirements of the Public Consultation Policy Regulation under the BC Environmental Assessment Act (BC Regulation No. 373/2002) and the expectations of the Regional District of Fraser-Fort George. The program will be refined throughout the Project in consultation with regulatory authorities and other stakeholders.

Graymont is committed to undertaking meaningful consultation with all relevant stakeholders throughout the pre-application and application review phases of the Project. It is Graymont’s intention to proceed with consultation throughout the application process. Residents of the communities of Giscome and Newland, the Town of Willow River, and the City of Prince George will be the main consultative communities within proximity of the Project. Additional stakeholders may include recreationalists, hunters and other tenure holders, and business owners in the area (CN Railway, forestry, etc.).

8.3 Provincial and Regional Government Consultation

Graymont and its consultants made considerable progress in discussions with regulatory agencies regarding the scope of environmental assessment studies in 2007. Graymont plans to re-engage the agencies to re-establish discussions on the expectations for the environmental assessment process. Graymont has currently re-established contact with the Environmental Assessment Office and the Fraser-Fort George Regional District and City of Prince George.

9.0 PROPOSED DEVELOPMENT SCHEDULE

Graymont plans to submit the Application for an Environmental Assessment Certificate by the end of December 2013. Summary of the proposed Project Development Schedule is provided in Figure 6. Graymont plans to begin construction in 2015.

In addition to the Environmental Assessment Certificate, Graymont will concurrently apply for other required permits listed in Section 10.0 including the Environmental Management Act Emissions Permit and approval from the Agricultural Land Commission.

10.0 REQUIRED PERMITS

Graymont will be in consultation with each of the various regulatory agencies throughout the assessment process to ensure that permit requirements are met and allow concurrent permitting following the Environmental Assessment Certificate, where appropriate. It is anticipated that permits or other agreements may be required under the following provincial and federal Acts:

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Mines Act (BC Ministry of Energy Mines and Petroleum Resources); Environmental Management Act (BC Ministry of Environment); Water Act (BC Ministry of Forests, Lands and Natural Resource Operations); Land Act (BC Ministry of Forests, Lands and Natural Resource Operations); Forest Act (BC Ministry of Forests); Fisheries Act (Fisheries and Oceans Canada); Explosives Act (Natural Resources Canada); and Canada Transportation Act (Canada Transportation Agency).

The regulatory consultation process planned for 2013 will determine what other Act(s) may apply to the development and operation of the Giscome Project and the list outlined above may be expanded.

Discussions with the Regional District of Fraser-Fort George Planning Department have indicated that the proposed plant site is located within the provincial Agricultural Land Reserve, while the proposed quarry site is not. The Official Community Plan for Electoral Area F also designates the lands as agricultural in both the plant and quarry site. Graymont will submit a series of applications to the Regional District of Fraser-Fort George to re-designate the land to heavy industry and to apply for an exclusion of land from the Agricultural Land Reserve (ALR) and corresponding inclusion of land into the ALR to offset impacts to agriculture. Some site-specific zoning approval will also be required. Graymont will also work with the appropriate provincial agencies to secure Crown land tenure on the proposed quarry site.

10.1 British Columbia Environmental Assessment Act

The Project constitutes a reviewable project pursuant to Part 3 (Mine Projects) of the Reviewable Projects Regulation (BC Regulation 370/02), because it is a new quarry facility that involves the removal of limestone, is regulated under the Mines Act, and will have an initial extraction rate of 600,000 tonnes of limestone per year, potentially increasing to 1.2 million tonnes per year. The Project is also reviewable pursuant to Part 2 (Industrial Projects) of the Reviewable Projects Regulation because the lime plant would have a production capacity above the threshold of 100,000 tonnes/year.

On April 12, 2007, the BC Environmental Assessment Office Project Assessment Manager issued an order under section 10(1)(c) of the Act, stating that the Project requires an Environmental Assessment Certificate, and that the Proponent may not proceed with the Project without an assessment.

The Project does not trigger a federal environmental assessment under the Canadian Environmental Assessment Act (2012).

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11.0 REFERENCES

Literature Cited

BC Ministry of Forests. 1991. Ecosystems of British Columbia. Special Report Series. Victoria, BC.

Demarchi D.A. 2011. The British Columbia Ecoregion Classification. Third Edition. Ecosystem Information Section, Ministry of Environment, Victoria, British Columbia.

Green, D.M. and R. W. Campbell. 1992. The amphibians of British Columbia. British Columbia Provincial Museum. Victoria, British Columbia.

Gregory, P.T. and R. W. Campbell. 1987. The reptiles of British Columbia. British Columbia Provincial Museum. Victoria, British Columbia.

Griffith, R.P., 1984. Reconnaissance Report: Spawning Habitat Improvement in Bateman Creek, Tributary to Eaglet Lake, Report Number FRN255. BC Ministry of Environment. www.env.gov.bc.ca/cgibin/apps/faw/searchresult.cgi?series=Fisheries %20Report

Hamilton, A.N., D.C. Heard, and M.A. Austin, 2004. British Columbia Grizzly Bear (Ursus arctos) Population Estimate. BC Ministry of Water, Land and Air Protection, Victoria, BC. 7pp.

Klinkenberg, Brian (Editor). 2006. E-Fauna BC: Electronic Atlas of the Fauna of British Columbia. [www.efauna.bc.ca]. Lab for Advanced Spatial Analysis, Department of Geography, University of British Columbia, Vancouver. Accessed March 13, 2007.

Ministry of Environment, 2006. Environmental Protection Division, Omenica and Peace Regions, Prince George BC, 2004 Annual air quality report for Prince George, July 2006.

Personal Communications

Wilson, Doug. Wildlife Biologist. Ministry of Environment, Environmental Stewardship Division. Prince George, BC. E-mail: February 22, 2007.

Internet Sites

BC Conservation Data Centre: Conservation Data Centre Mapping Service [web application] (B.C. CDC). 2006. Victoria, British Columbia, Canada, March 13. Available: http://maps.gov.bc.ca/imf50/imf.jsp?site=cdc.

Committee on the Status of Endangered Wildlife in Canada (COSEWIC). 2006. COSEWIC Status Assessments, April 2006. www.cosewic.gc.ca/eng/sct5/index_e.cfm.

Environment Canada, 2007. Canadian Climate Normals 1971–2000, at website http://www.climate.weatheroffice.ec.gc.ca/climate_normals/index_e.html

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MOE, 2007a. Water Licenses Web Query. Water Stewardship Division, BC Ministry of Environment. www.elp.gov.bc.ca:8000/pls/wtrwhse/water_licences.input

MOE, 2007b. Water Quality Guidelines (Criteria) Reports, Guideline Executive Summaries. Environmental Protection Division, BC Ministry of Environment. www.env.gov.bc.ca/wat/wq/wq_guidelines.html#working

Species at Risk Act. (SARA) 2006. Species at Risk Act Public Registry: Species List, October 2006.http://www.sararegistry.gc.ca/species/default_e.cfm.

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Figures

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FIGURE

1

File No.:

Date:

Dwg.:

Drawn by:

0035-24.23

F1.1

JAN 2013

IRB

SITE LOCATION AND LOCAL SETTING

BCGiscome,

GRAYMONT WESTERN CANADA INC.

N

Scale: 1:50 000Canada Centre for Topographic Mapping, Energy Mines and Resources, NTS Map 93J/1, “Giscome,” Edition 3, 1986.

540000m. E.5996000m

.E.

© 2002. Her Majesty the Queen in Right of Canada, Natural Resources Canada.

Sa Majesté la Reine du chef du Canada, Ressources naturelles Canada.

Scale / Échelle

km km0100 100 200 300

BRITISH COLUMBIACOLOMBIE-BRITANNIQUE

RockyMountains

/ Montagnes

Rocheuses

Coast Mountains

Chaîne Côtière

Vancouver Island

Île de Vancouver

Queen CharlotteIslands

UNITED STATES OF AMERICAÉTATS-UNIS D’AMÉRIQUE

ALB

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TA

A L A S K A

USAÉ-U d’A

Îles de laReine-Charlotte

Fort StJohn

Chetwynd

Dawson Creek

TumblerRidge

Stewart

SmithersTerrace

QueenCharlotte City

FortSt James

PrinceGeorge

Quesnel

Bella Bella BellaCoola

PortHardy

Port AlicePort McNeill

Tofino

CampbellRiver

WilliamsLake

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Lillooet

PortAlberni

Kamloops

Golden

InvermereVernon

Victoria

Vancouver

Kelowna

Hope PentictonCranbrook

SidneyAbbotsford

Princ

e Rupert

Masset

PACIFIC OCEAN

OCÉAN PACIFIQUE

Frase

rR

FlFraser

WillistonL

Fl Colum

biaR

KinbasketL

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Sound

Juan de Fuca StrDét de Juan de Fuca

Hecate

Str

Str

of Georgia

Stiki

ne R

OkanaganL

FortNelson

Dease Lake

Ashcroft

Merritt

PROPOSED LIMESTONE

QUARRY

PROPOSED LIME

PROCESSING SITE

POTENTIAL HALL ROUTES

GeorgePrince

Giscome

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