Summary of Public, Stakeholder, and Aboriginal Engagement ......Summary Report #1: Engagement Activities from December 2010 to November 2011 (Up to and Including Terms of Reference)

Summary of Public, Stakeholder, and Aboriginal Engagement Activities: Sisson Project

Summary Report #1: Engagement Activities from December 2010 to November 2011 (Up to and Including Terms of Reference)

Northcliff Resources Ltd. 15th Floor – 1040 W. Georgia Street Vancouver, British Columbia V6E 4H8

December 7, 2011

SUMMARY OF PUBLIC, STAKEHOLDER, AND ABORIGINAL ENGAGEMENT ACTIVITIES: SISSON PROJECT December 7, 2011

i

Table of Contents

1.0 INTRODUCTION ................................................................................................................ 1

2.0 PUBLIC, STAKEHOLDER, AND ABORIGINAL ENGAGEMENT ACTIVITIES .................. 2 2.1 OVERVIEW......................................................................................................................... 2 2.2 STAKEHOLDER AND FIRST NATIONS IDENTIFICATION ................................................ 2 2.3 KEY PUBLIC, STAKEHOLDER AND ABORIGINAL ENGAGEMENT ACTIVITIES

CONDUCTED ..................................................................................................................... 2 2.3.1 Engagement Plans ............................................................................................... 2 2.3.2 Face to Face Meetings and Workshops ............................................................... 3 2.3.3 Emails .................................................................................................................. 3 2.3.4 Storefront Office in Stanley ................................................................................... 3 2.3.5 Website ................................................................................................................ 3 2.3.6 Display of Draft EIA Terms of Reference .............................................................. 4 2.3.7 Open Houses ....................................................................................................... 4 2.3.7.1 Public Notification ................................................................................................. 4 2.3.7.2 Format of Open House ......................................................................................... 5 2.3.7.3 Information Presented .......................................................................................... 6 2.3.7.4 Open House Attendance ...................................................................................... 7 2.3.8 Key Stakeholder Engagement .............................................................................. 7 2.3.9 Aboriginal Engagement ........................................................................................ 8

3.0 SUMMARY OF ISSUES AND CONCERNS IDENTIFIED THROUGH ENGAGEMENT .....10 3.1 SUMMARY OF ISSUES AND CONCERNS RECEIVED FROM THOSE ATTENDING THE

OPEN HOUSES .................................................................................................................10 3.2 KEY ISSUES AND RESPONSES ......................................................................................12

3.2.1 Tailings Impoundments: Structural integrity, Long Term Management, Weather Events .................................................................................................................12

3.2.2 Bonding Process .................................................................................................13 3.2.2.1 Response ............................................................................................................13 3.2.3 Water Quality and Aquatic Resources .................................................................13 3.2.3.1 Response ............................................................................................................13 3.2.4 Recreational Land Users .....................................................................................14 3.2.4.1 Response ............................................................................................................14 3.2.5 Aboriginal Traditional Use of Land and Resources in the Project Area ................14 3.2.5.1 Response ............................................................................................................15 3.2.6 Socio-Economic Considerations ..........................................................................15 3.2.6.1 Response ............................................................................................................15 3.2.7 Post-Closure Economics .....................................................................................15 3.2.7.1 Response ............................................................................................................15 3.2.8 Human Health .....................................................................................................15 3.2.8.1 Response ............................................................................................................16


ii

List of Tables

Table 1 Summary of Key Comments or Areas of Interest from Attendees at Sisson Open Houses, September 2011 ..................................................................................10

List of Appendices

Appendix A Email sent on August 18, 2011 Appendix B Frequently Asked Questions (FAQs) as posted on Project website Appendix C Newspaper Advertisement Appendix D Poster Placed in Local Communities Appendix E Example of Letter and Emails sent to Chiefs and Councils of First Nations

Communities Appendix F Example of Emails sent to local MLA and MP Appendix G Posters Presented at Open Houses Appendix H Letter Sent to the Assembly of First Nations Chiefs in New Brunswick Appendix I Example of Letter Sent to St. Mary’s and Woodstock First Nations Offering to

Host Open House Appendix J Outreach Summary Table


1

1.0 INTRODUCTION

This document is a summary report on public, stakeholder and Aboriginal engagement activities undertaken for the Sisson Project, the proposed tungsten and molybdenum mine being developed by Northcliff Resources Ltd. (Northcliff) in central New Brunswick (the “Project”), from December 2010 through November 2011

The public, stakeholder and Aboriginal engagement program initiated by Northcliff set out to identify key stakeholders, and interested members of the public and First Nations communities, and the strategies for engaging them in a meaningful way in the development of the Sisson project. It is expected, that over the course of the Project, engagement strategies will continue to evolve. 1.1 GOALS & OBJECTIVES The goal of the public, stakeholder and Aboriginal engagement program is to develop positive, long term relationships with the public, key stakeholders and First Nations to facilitate the success of the Project. The objectives of this effort are to:

• provide information and seek input from members of the general public, Aboriginal peoples, stakeholders and interested parties on the Project;

• identify, document, monitor and consider issues and concerns arising from the engagement process;

• request information on the current use of lands and resources for traditional purposes by Aboriginal persons and land uses by non-aboriginal persons and how those activities might be affected by the Project;

• provide early notification of Sisson Project field activities, and public consultation opportunities associated with the EIA process; and

• identify the need for planning, design and management measures that will avoid, mitigate or resolve the issues raised through the public, stakeholder and Aboriginal engagement process.

This summary report documents many of the key consultation and engagement activities conducted in support of the Project during the period of December 2010 (shortly after Northcliff acquired an interest in the Project) to November 2011, including the public review of the draft Terms of Reference for the Environmental Impact Assessment (EIA) of the Project.

It is noted that this summary report does not document all activities carried out by Northcliff during this period, or all comments received by various parties. Rather, it is intended to provide a synopsis of the main means by which the public, stakeholders, and Aboriginal persons were engaged during the identified period, and a summary of key questions or concerns expressed by such parties during these activities. Other similar reports will be issued in the future as necessary to document the engagement activities and issues raised during the ongoing EIA of the Project.


2

2.0 PUBLIC, STAKEHOLDER, AND ABORIGINAL ENGAGEMENT ACTIVITIES

2.1 OVERVIEW

Northcliff completed an agreement with Geodex Minerals in October 2010 to acquire a 70% interest in the Sisson Project. Prior to Northcliff’s involvement, Geodex undertook initiatives to provide stakeholders and First Nations with information about the Project. These initiatives included community meetings, as well as phone calls, emails and letters to First Nations. Early in 2011 Northcliff hired a Community Relations Manager, based in Fredericton, in order to facilitate both a sustained local presence in New Brunswick, and ongoing communication and engagement opportunities.

Throughout 2011, Northcliff has sought numerous opportunities to meet with stakeholders and First Nations in order to share information and discuss the Sisson Project. These opportunities have included: phone calls; face-to-face meetings; presentations and discussion sessions; regular update emails; letters; establishing a permanent local presence by opening an information office in Stanley; developing a project website; and, hosting open houses. These opportunities and engagement initiatives are described in more detail below.

In an effort to document and track communications and engagement initiatives throughout the Project, Northcliff maintains a web-based communications management software program.

2.2 STAKEHOLDER AND FIRST NATIONS IDENTIFICATION

As the Sisson Project has been active for a number of years, Northcliff benefited from some of Geodex’s early work – including work to identify key stakeholders and First Nations with specific interests in the Project. Early in 2011, Northcliff met with local communities, as well as provincial and federal government officials, to confirm or add to the stakeholder and First Nations identification list for the Project. Northcliff also met with key interest groups, stakeholder groups, Aboriginal organizations and First Nations communities to confirm or add to the list of those interested in participating in engagement opportunities and receiving information about the Project.

2.3 KEY PUBLIC, STAKEHOLDER AND ABORIGINAL ENGAGEMENT ACTIVITIES CONDUCTED

2.3.1 Engagement Plans

Northcliff held an internal workshop early in 2011 with key Geodex and Stantec personnel in New Brunswick to develop a stakeholder engagement plan. The plan outlines Northcliff’s understanding of stakeholder and First Nations interests, defines tactics to ensure that Project-related information is provided in a timely manner and is readily accessible, and identifies opportunities for personal engagement. The plan is considered a living document and is outlined in both the Project Description and the Terms of Reference for the EIA study.


3

2.3.2 Face to Face Meetings and Workshops

Face to face meetings have included everything from general discussions with stakeholders and First Nations leadership and organizations, to presentations and informal discussions over meals. Northcliff has held a few ‘workshops’ or focus group discussions on issues of particular interest to some stakeholders and First Nations organizations. Examples of these focused discussions include: meetings about fisheries and aquatic issues; wildlife; traditional knowledge and use studies; and the nature and content of feasibility studies.

2.3.3 Emails

Since early 2011, Northcliff has been gathering contact information for Project stakeholders and First Nations in order to send communications and updates about Sisson Project activities. Northcliff sends email notifications at key milestone dates, such as the acceptance of the Sisson Project Description and release of the draft Terms of Reference for the EIA. Northcliff has also sent emails to update stakeholders and First Nations on field programs and other activities. Northcliff also maintains regular, informal communications with stakeholders and First Nations to respond to issues, answer questions and schedule meetings. A copy of Northcliff’s email sent on August 18, 2011 giving notice of the release of draft Terms of Reference for the EIA, as well as dates, times, and locations for three public open houses, is included in Appendix A.

2.3.4 Storefront Office in Stanley

Northcliff has established a local community office with local staff in Stanley, New Brunswick. The storefront office is located at 80 Irishtown Road and is open from 3:00 pm to 8:00 pm on Wednesdays, and 9:00 am to 5:00 pm on Saturdays. Project team members from Northcliff are present at the storefront office during these times to provide information on the Project, answer questions, and collect any comments or questions from members of the public. Approximately 150 people have visited the storefront office since it opened in mid-August 2011.

In addition to a variety of general Project information, copies of the Project Description and draft Terms of Reference are available for public review at the storefront office. CD-ROM copies of the Terms of Reference document were also made available to members of the public. Reference materials about mining are also available at the storefront.

2.3.5 Website

Northcliff has established a website dedicated to the Project, located at www.sissonproject.ca. The website contains background information about the Project, Project news, information about Northcliff, Project-related documents, information on Northcliff’s commitment to sustainable development and environmental leadership, answers to frequently asked questions, contact information, a form to sign up for the Project newsletter, and a general feedback form. A copy of the Project Description submitted to the CEA Agency on April 15, 2011 and the draft EIA Terms of Reference can also be downloaded from the site.

http://www.sissonproject.ca/


4

Numerous requests from members of the public to be added to Northcliff’s email lists and its newsletter mailing list have been received via the website. No other comments were received via this means of communication.

The ‘frequently asked questions’ section of the website was developed in response to feedback and issues that have arisen during consultation events. The frequently asked questions and responses, as posted on the website, are included in Appendix B.

2.3.6 Display of Draft EIA Terms of Reference

During the public comment period on the draft EIA Terms of Reference from August 18 to October 3, 2011, paper copies of the draft Terms of Reference were made available at several key publicly accessible locations in the vicinity of the Project for the public to access and review. In addition to the availability of the document on the Sisson Project website, it was also provided for viewing in hard copy format at:

• the New Brunswick Department of Environment office in Fredericton;

• the Fredericton Public Library (12 Carleton Street, Fredericton);

• the Nackawic Town Hall (115 Otis Drive, Nackawic);

• the Stanley Village Office (20 Main Street, Stanley); and

• the L.P. Fisher Library in Woodstock (679 Main Street, Woodstock).

Northcliff made numerous CD-ROM copies of the draft Terms of Reference, and these were made available to interested members of the public, and distributed at the open houses (see below).

2.3.7 Open Houses

Three public open houses were held in September 2011 as part of the public review of the Draft EIA Terms of Reference. The open houses were held in Juniper, Millville, and Stanley at the following locations and times:

• Juniper Recreation Centre - September 12, 2011, 4:30-8:30 pm;

• Millville Village Office - September 14, 2011, 4:30-8:30 pm; and

• Upper Nashwaak Lions Club - September 15, 2011, 4:30-8:30 pm.

2.3.7.1 Public Notification

The public was notified of the open houses in several ways, including:

• two advertisements in the Fredericton Daily Gleaner, on September 9 and 10, 2011;


5

• two advertisements in the Woodstock Bugle, on September 7 and 9, 2011;

• advertisements placed in the September issues of the monthly community newspapers in Stanley, Millville, and Nackawic;

• posters in post offices, villages offices, convenience stores and restaurants in Stanley, Juniper, Florenceville-Bristol, Cross Creek, and Millville;

• letters sent to the Chiefs of all First Nations communities in New Brunswick;

• email sent to all individuals on e-newsletter mailing list;

• emails sent to mayors of communities in the Project area (Fredericton, Stanley, Millville, Florenceville-Bristol, and Nackawic) and representatives of local service districts in the Project area (Douglas, and Aberdeen);

• email sent to the Member of the Legislative Assembly (MLA) and Member of Parliament (MP) of the Project area; and

• notice on the Sisson Project website (www.sissonsproject.ca).

Key regulatory agencies, including the Canadian Environmental Assessment Agency in Halifax and the New Brunswick Department of Environment’s Project Assessment Section were also notified of the open houses via email, and invited to attend.

Identical advertising copy was placed in the Daily Gleaner, Woodstock Bugle, and community newspapers. A copy of this advertisement is in Appendix C.

A copy of the poster that was placed at various locations in local communities is provided in Appendix D.

An example of the letters that were sent to Chiefs and Council of New Brunswick First Nations is provided in Appendix E.

A copy of the email providing information on the release of the Draft Terms of Reference and the open houses, as previously mentioned, is provided in Appendix A.

An example of emails that were sent to local mayors, as well as the local MLA and MP, is shown in Appendix F.

2.3.7.2 Format of Open House

Open houses were staffed by members of the Sisson Project team, including representatives of Northcliff, Stantec Consulting, Knight Piésold Consulting, and SRK Consulting. Various poster boards were laid out within the venue to provide key information on various aspects of the Project, the regulatory process including the Terms of Reference, key Project-environment interactions, and key studies to be carried out. Project representatives were on hand to speak

http://www.sissonsproject.ca/


6

with attendees, present information, and answer questions. Team members at the event used issues tracking forms to record comments, questions, and concerns from those in attendance, which are summarized below.

2.3.7.3 Information Presented

Posters were presented at the open house (see Appendix G) and were grouped into five general subject areas:

• Project and Proponent information;

• Acid rock drainage assessments;

• Water management including tailings management;

• Aquatic environment; and

• Environmental Impact Assessment (including regulatory processes, Terms of Reference, and key Project-environment interactions and planned studies).

The Project Information posters presented information about the location and preliminary design of proposed Project facilities, Northcliff’s commitment to responsible mineral development, information on tungsten and molybdenum, and the geology of the Sisson deposit.

The acid rock drainage posters presented information on acid rock drainage and metal leaching in general, and on the studies being conducted to determine the potential for acid generation at Sisson.

The water management posters presented information on the water monitoring studies that are ongoing and planned for the Project, as well as information on water management principles, including engineering design considerations, for the Project.

The aquatic environment posters presented information on Northcliff’s ongoing fish and fish habitat studies surrounding the Project area.

The posters on the environmental impact assessment process included a summary of the federal and provincial environmental assessment processes, the key environmental issues that will be included in the environmental impact assessment, an overview of where copies of the draft Terms of Reference can be downloaded or viewed, and information on how to submit comments and/or questions.

There were at least 17 members of the Project team present at each open house. The structure of the open houses allowed members of the public in attendance to speak with Project representatives with expertise in particular subject areas of interest. Since the Project team members present represented a wide range of technical expertise, detailed and/or technical questions were, for the most part, answered in person.


7

2.3.7.4 Open House Attendance

There was a welcome table inside the entrance of each open house staffed by Project team members who kept track of total attendance. Attendees were asked to sign in and to give their email address if they would like to be added to the Project newsletter mailing list, however, signing in was not required. Staff maintained an overall head-count of attendees to the open houses, whether they signed in or not. Total attendance at each open house was approximately:

• 35 attendees in Juniper;

• 40 attendees in Millville; and

• 46 attendees in Stanley.

Ms. Kim Edmondson, Project Manager for the EIA of the Sisson Project at the New Brunswick Department of Environment, was present at the Juniper and Stanley open houses.

2.3.8 Key Stakeholder Engagement

Since December 2010, Northcliff has worked to develop relationships with key stakeholders with an active interest in the Project, building upon previous relationships initially developed by Geodex Minerals. These include, but are not limited to:

• Nashwaak Watershed Association Inc. (NWAI);

• Canadian Rivers Institute (CRI);

• Atlantic Salmon Federation (ASF);

• New Brunswick Salmon Council;

• Taymouth Community Association;

• New Brunswick Trappers & Fur Harvesters Federation;

• New Brunswick Outfitters Association;

• The Mayors of Fredericton, Stanley, Millville, Florenceville-Bristol, and Nackawic;

• Cabin owners in proximity to the project;

• Political representatives and public officials such as local MLA’s, MP’s and Ministers; and

• Representatives of the local service districts (LSDs) of Douglas and Aberdeen.


8

Many meetings have been held with these and other stakeholder groups and individuals to provide updates on the Project, discuss planned studies and methodologies, and understand key concerns or areas or interest. Northcliff has also engaged with certain stakeholder groups in the planning and conduct of certain tasks and/or studies. The Company maintains regular email contact with many of these key stakeholder groups and individuals, and sends out periodic email updates to interested parties.

Northcliff will continue to engage these key stakeholders, and any others that may be identified in the future, throughout the EIA process.

2.3.9 Aboriginal Engagement

Northcliff is committed to meaningful and constructive engagement with First Nations communities in New Brunswick. In addition to a variety of initiatives concerning the Project in general, several initiatives were specific to the release of the draft Terms of Reference.

In November 2010, Northcliff sent a letter to five Maliseet First Nations (St. Mary’s, Tobique, Woodstock, Kingsclear and Oromocto) introducing the Company and asking for a meeting. Follow-up phone calls were unsuccessful in arranging a meeting.

Northcliff has also sent letters to New Brunswick First Nations at key regulatory milestones in order to disseminate Project documentation and keep First Nations up-to-date, to request meetings to discuss capacity support and to express an interest in working with First Nations to undertake an Aboriginal Traditional Use/Knowledge study. Letters are sent to ensure transparency in communications between Northcliff and aboriginal organizations.

On April 28, 2011 letters were sent to the Chiefs and Council of all First Nation Communities in New Brunswick and to the Assembly of First Nations Chiefs of New Brunswick (the “Assembly”) to advise them of the formal acceptance by CEAA of the Project Description for the Sisson project and to offer the opportunity to meet with Northcliff to discuss the Project.

On August 18, 2011, letters were sent to the Chiefs and Council of all First Nation Communities in New Brunswick and to the Assembly to provide notice of the release of the draft Terms of Reference and of the three public open houses. An example of one of these letters is included in Appendix E.

With the exception of the communities of St. Mary’s and Woodstock, the Assembly is coordinating engagement on behalf of First Nation communities in New Brunswick. As per the letter sent to the Assembly announcing the release of the Terms of Reference and the three public open houses (Appendix H), Northcliff has acknowledged that the Assembly will advise Assembly member First Nations about the company’s interest in providing opportunities for sharing information on and discussing the Project and the Terms of Reference in particular. As the Assembly is not representing the communities of St. Mary’s and Woodstock with regard to the Project, Northcliff offered to host an open house or community meeting in each of these communities. As an example of this communication, a copy of the letter sent to the Chief and


9

Council of St. Mary’s First Nation is included in Appendix I. Neither community has yet hosted an open house or community meeting regarding the Project.

Over the course of 2011, Northcliff has met with representatives (Chiefs, Councilors and advisors) from Woodstock, St. Mary’s, Tobique, Madawaska and Kingsclear as well as Mi’kmaq Chiefs through the Assembly. The Chief from Oromocto declined to participate in a meeting with Northcliff. These meetings varied in format, however, Northcliff has been able to introduce its team and the Sisson Project and express an interest in working with First Nations on studies such as an Aboriginal Traditional Use/Knowledge study. Northcliff continues to engage with identified First Nations communities and entities in order to organize meetings and express its interest in working together.


10

3.0 SUMMARY OF ISSUES AND CONCERNS IDENTIFIED THROUGH ENGAGEMENT

As described in this report, Northcliff supports the meaningful participation and engagement of First Nations, stakeholders groups and individuals in the development of the Sisson Project. The engagement process includes a variety of communication and outreach tools for individuals and organizations to understand the Project’s environmental, social and economic components and become involved in dialogue about them. A summary table of the various outreach initiatives undertaken by the Proponent in support of the Project is included in Appendix J.

The following sections summarize the key issues and concerns regarding the Project raised by First Nations, stakeholders and the public to date. Northcliff has also provided its responses to these issues and concerns, regardless of whether they are of relevance in the context of the draft EIA Terms of Reference. Identified issues and concerns span the full spectrum of mine development – from the planning stage to closure. It is noted that this summary is not inclusive of every issue raised, but a synopsis of the most frequently mentioned concerns identified through engagement activities

3.1 SUMMARY OF ISSUES AND CONCERNS RECEIVED FROM THOSE ATTENDING THE OPEN HOUSES

Information collection sheets were used by Sisson Project team members at the open houses to record questions and comments. Some of the key questions and comments from those in attendance at the three open houses are summarized in Table 1, below. Table 1 is intended to provide an overview of the comments, and is not necessarily all-inclusive of every question received or every topic discussed, but rather a listing of the most common topics or key areas of interest.

Table 1 Summary of Key Comments or Areas of Interest from Attendees at Sisson Open Houses, September 2011

Key Questions, Comments, or Areas of Interest Response Provided by Northcliff Team Labour, Economy, and Employment Opportunities

• How many jobs will be created? • What type of jobs will be available? • When would hiring take place? • Will they be building camps? • How do I submit a resume? • Have family working out west – how can they

apply for a job?

• Although these questions are not directly relevant to the Terms of Reference, attendees were told how to submit resumes, and provided information about Project employment opportunities to the extent that is known at this time.

Tailings Storage Facility (TSF) • Will tailings be like the oil sand tailings? • Heard a rumour that the tailings facility would be

used to store waste water from shale gas fracking operations?

• The tailings storage facility, and all other Project components will be as described in the Project Description. These questions are not directly relevant to the Terms of Reference.

• Northcliff clarified that it will not be storing wastes or water from shale gas operations


11


Key Questions, Comments, or Areas of Interest Response Provided by Northcliff Team Accidental Events Associated with the TSF

• Can tailings facility withstand rain events such as what happened in NB last December?

• What if the dam breaks? • What about an earthquake? • How can we predict what will happen 500 years

from now? • What construction method will be used for the

TSF embankments? • What about seepage quantities over the long

term?

• Though these questions are not directly relevant to the Terms of Reference, the potential environmental effects of accidents, malfunctions, unplanned events and effects of the environment on the Project will be assessed in the EIA Report, as will alternatives means of carrying out the Project that are technically and economically feasible.

• The experts in attendance from Knight Piésold Consulting generally described the type of tailings impoundment that would be constructed for the Project, as well as its relative performance in terms of safety and ability to manage inflows.

Reclamation and Bonding • How does the bonding process work?

• Bonding is a process that is overseen by regulatory authorities under a separate process under the New Brunswick Mining Act, and is outside of the scope of the EIA process and is thus not relevant to the Terms of Reference.

• Northcliff explained that bonding is required in order to acquire permission to mine. The bond is based on the closure plan which must be developed in order to determine the costs of closure.

Wildlife • Owner of camp lease wondered about impacts

on wildlife. Deer are just starting to come back, lynx and coyote have been sighted in area.

• The potential environmental effects of the Project on terrestrial wildlife will be assessed in the EIA Report, as described in Section 4.5 of the Terms of Reference.

Recreational Fishing • Good trout fishing in area waters because the

water seems cooler. (Will area streams be warmer?)

• The potential effects of the Project on fish habitat will be assessed in the EIA Report, as described in Section 4.4 of the Terms of Reference.

Baseline Data Collection • Inquiry about time to collect adequate baseline

data. Not long enough

• The approach to characterize the existing conditions for each valued ecosystem component is described in the Terms of Reference.

Chemicals and Chemical Management • What chemicals will be used in the process? • What will the chemistry of the tailings water

(supernatant) be? • Will there be chemicals released into the

Nashwaak watershed?

• The Project will be as described in the Project Description. Further detail will be provided in the EIA Report.

• Any surplus water released to the environment in New Brunswick must meet strict water quality standards established by the New Brunswick Clean Water Act, the Fisheries Act, and the Metal Mines Effluent Regulations.

Project Location • Where is the project?

• A variety of maps were on display at the open house showing the Project location. The Project location is also described in the Project Description and the Terms of Reference.

Transportation

• What will be the transport routes? • Transportation will be addressed as described in

Section 4.14 of the Terms of Reference. The transportation route will be described in the EIA Report.


12


Key Questions, Comments, or Areas of Interest Response Provided by Northcliff Team Regulatory Processes

• Would like a summary of successful HADD projects

• 45 day public consultation period on the TOR is not long enough – should be at least doubled

• Undecided whether they are in favour of the project or not. Need to read more about it.

• These comments are not relevant to the Terms of Reference.

• Northcliff is working with the Nashwaak Watershed Association Inc to identify HADD opportunities

Mining and Processing • What is a flotation process? • What minerals are being mined?

• These comments are not relevant to the Terms of Reference, however the flotation process was explained in detail by the Sisson Project team to the open house attendee, and information about the minerals to be mined (molybdenum and tungsten) was provided at the open houses and is included in the Project Description and Terms of Reference. It was clarified that copper is not one of the minerals of economic interest.

Land Use • What about the camp lease holders…will their

camps be expropriated? • Would like to tour the site - tours should be

offered to interested members of the public.

• Comments are not relevant to the Terms of Reference, however there are currently no plans to expropriate camp leases. Tours of the site will be considered in the future as part of the consultation and engagement program for the Project.

Aboriginal Land and Resource Use • Aboriginal hunters use that area. • Explain consultation efforts with First Nation

communities.

• The assessment of Current Use of Land and Resources for Traditional Purposes by Aboriginal Persons is described in Section 4.12 of the Terms of Reference and Aboriginal engagement program is described in Section 3 of the Terms of Reference.

3.2 KEY ISSUES AND RESPONSES

3.2.1 Tailings Impoundments: Structural integrity, Long Term Management, Weather Events

Numerous discussions, during workshops, open houses and at the Sisson Project storefront office, have focused on the proposed tailings storage facility and its integrity to withstand natural events such as the floods of December 2010. Related concerns were the potential environmental effect on the Nashwaak watershed in the event of a breach. Concerns about long-term safety of the structure and management responsibility of the tailings storage facility were also raised. Some people questioned the size of the impoundment.

Response

Northcliff has engaged internationally recognized experts for the engineering design of the tailings impoundment. The tailings impoundment design and management is being conducted as part of the feasibility study, which is underway. This includes planning for water management during construction, operation and closure. This information will be presented to the public in the EIA Report. Northcliff’s consulting engineers also participated at the open houses and discussed issues of structural integrity and weather events with participants. Detailed responses


13

about these issues have since been posted on the Sisson Project Website in the Frequently Asked Questions (FAQs) section.

The long-term management of the tailings impoundment after closure was discussed and Northcliff responded by stating that mine closure planning, which is required by the government in order to acquire an approval to operate, includes reclamation and monitoring.

3.2.2 Bonding Process

Stakeholders and members of the public have inquired about the closure bonding process. Specifically, they have asked about the amount of bond required and the basis of the amount; who holds the bond; its adequacy to cover costs; the timing of posting the bond; and the frequency at which the bond amount will be reviewed and updated. Individuals also wanted to know if it could also be used for unplanned events during operation.

3.2.2.1 Response

Bonding is a regulatory process, administered by the New Brunswick Department of Natural Resources. The process requires that a detailed decommissioning and closure plan, including any long-term requirements, must be developed and approved before permission to mine is granted. The amount of the bond is established by the costs directly related to the approved closure plans. There are different forms of security and this will be established as part of the permitting process.

3.2.3 Water Quality and Aquatic Resources

Water quality and aquatic resources have been a dominant discussion point to date. Concerns relayed to Northcliff representatives have included the quality of any water discharge (if there is one), potential effects on fish habitat, potential effects on surface and groundwater flows, the potential for heavy metal leaching, and concerns regarding Atlantic salmon.

3.2.3.1 Response

As engineering design and studies related to water quantity and quality are not yet complete, detailed answers at this point are not available. A variety of studies on surface and groundwater flows, water quality, fish and fish habitat are currently being conducted but the results are not yet known. The results will be reported in the EIA report for the Project. Northcliff continues dialogue on aquatic studies with external expert stakeholders and interested parties as the studies are conducted.

Northcliff has explained to stakeholders that a number of tests are being conducted to both understand and manage potential environmental effects of the proposed mining operations on water quality. These include a variety of geochemical and metallurgical studies that will identify potential issues, like the potential for waste rock and materials to generate acid, the presence of heavy metals, and the potential of the mine to affect surface water and ground water. This information will be forthcoming and included in the EIA report. Water balance studies are also


14

underway to establish whether the Project will have a water discharge during operation, or if all water on site (captured surface water and water from pit de-watering) will be used in the processing of ores.

Concerns about potential effects on fish habitat, and in particular Atlantic salmon habitat, and potential environmental effects on Atlantic salmon recovery efforts have been raised in a number of different venues. A study of streams in the Project area, including qualitative and quantitative work, is being conducted to better understand the occurrence of salmon and the quality of the existing habitat. With this information, an evaluation of potential environmental effects of the Project on aquatic habitats and species including Atlantic salmon will be conducted.

Northcliff has engaged, through a Memorandum of Understanding (MOU), the Nashwaak Watershed Association Inc. to assist in efforts to identify areas for potential habitat improvement as part of any compensation program that may be required by Fisheries and Oceans Canada.

3.2.4 Recreational Land Users

Cabin owners in the area have commented that the proposed mine may affect their recreational use of the area, including fishing, hunting, outfitting, snowmobiling and all-terrain vehicle use. Outfitters and trappers have raised concerns about their future ability to access the Project area and possible disturbances to wildlife.

3.2.4.1 Response

Northcliff is corresponding, on a regular basis, with cabin owners and outfitters in the area to better understand their concerns. Recreational users have been informed that the Feasibility Study for the Sisson Project currently underway will define vehicle travel routes associated with the mine, and will provide more detailed information on how recreational land users may be affected by the Project. In instances where roads and winter travel routes traditionally used by recreational users are affected, alternative travel corridors will be explored. The distinction between the proposed operating area of the mine versus the claim block has also been clarified using maps. Northcliff has engaged the New Brunswick Trappers & Fur Harvesters Federation to undertake a cooperative study of wildlife in the area.

3.2.5 Aboriginal Traditional Use of Land and Resources in the Project Area

Northcliff has been told by some First Nations that the Project area is in traditional Maliseet territory. In preliminary meetings, without the benefit of maps, Northcliff has also been told that the Project area has been used for hunting by First Nations.


15

3.2.5.1 Response

Northcliff has expressed, through emails, letters to and meetings with, First Nations and Aboriginal organizations, an interest in working with them to conduct a Traditional Use/Knowledge Study in the project area.

3.2.6 Socio-Economic Considerations

A number of resident New Brunswickers, and New Brunswickers living and working outside of the province, have enquired about employment, training and contracting opportunities.

3.2.6.1 Response

Individuals have been informed about the mine development process and anticipated timelines before construction can begin. Those inquiring about employment are encouraged to submit a resumé, and these are categorized according to skill sets and maintained in a database. Applicants are encouraged to stay engaged with the Project’s status through the website and by subscribing to Northcliff’s e-newsletter.

3.2.7 Post-Closure Economics

Concerns have been expressed about the ‘false economy’ and the ‘boom-bust’ cycle that can be created by large-scale resource development projects.

3.2.7.1 Response

Northcliff acknowledges that mines are not permanent developments. However, carried out properly and with the right types of investment, sustainable economic benefits can be derived from the economic activity generated by mining.

Furthermore, the long-term operation of a mine over several decades creates additional infrastructure and business opportunities that would not ordinarily exist.

3.2.8 Human Health

Some local residents have expressed concern about potential health issues associated with the Sisson Project. Specifically, it has been asked whether dust containing lead and arsenic will be dispersed from the Project and if groundwater quality (i.e., well water) will change.


16

3.2.8.1 Response

In support of the EIA for the Sisson Project, a human health and ecological risk assessment is being conducted. As part of this, baseline data is being collected on existing levels of metals in water, soil, vegetation, invertebrates, and mammals, as well as within the Sisson deposit. This will serve as baseline information for modeling, which will consider weather and wind patterns as well as existing air and water quality data , to predict how any dust released by the Project will be dispersed. Based on this, potential environmental effects to human health will be characterized.


Appendix A Email sent on August 18, 2011


From: Greg Davidson Sent: August-18-11 9:42 PM Subject: Terms of Reference Release & Open House Schedule Good Afternoon: I am writing to advise you that a draft Terms of Reference (TOR) for a comprehensive environmental impact assessment study for the Sisson Project was released by the federal government and can be found at http://www.ceaa-acee.gc.ca/050/document-eng.cfm?document=51654 . The TOR provides the governments’ direction on the scope of studies that need to be considered in the Environmental Assessment by Northcliff and its consultant. The release of the draft TOR initiates a 45 day public review and Aboriginal consultation period on the project description as currently conceived, and the content of the TOR. To provide the public with an opportunity to learn more about and discuss the Sisson Project and the TOR with Northcliff personnel and its consultants, Northcliff Resources is hosting a series of open houses. The open houses will be held at:

Juniper Recreation Center Monday September 12 4:30 pm – 8:30 pm

Millville Fire Hall Wednesday September 14 4:30 pm – 8:30 pm

Stanley (Upper Nashwaak Lions Club) Thursday September 15 4:30 pm – 8:30 pm We hope you will be able to join us. If you have any questions please don’t hesitate to contact me. Regards Greg

Greg Davidson | Community Relations Manager

Northcliff Resources Ltd. | 47 Avonlea Court, 2nd

Floor, Fredericton, NB E3C 1N8

T 1 506-455-0530 C 1 506-440-1801 TF 1 506 455-0533 E [email protected]

http://www.ceaa-acee.gc.ca/050/document-eng.cfm?document=51654

mailto:[email protected]


Appendix B Frequently Asked Questions (FAQs) as posted on Project website


September 29, 2011

FAQ’s

Who is Northcliff Resources Ltd.?

Northcliff Resources Ltd. is a public mineral exploration and development company. The Sisson Project

team consists of mining industry professionals who collectively have many decades of experience in

planning and operating open pit mines, both in Canada and globally.

Who owns the Sisson Project?

The Sisson Project is a 70/30 Joint Venture between Northcliff Resources Ltd. and Geodex Mineral Ltd.,

subject to earn in by Northcliff. Northcliff is the operator of the Project.

When will the mine be operational?

The timeframe depends on feasibility study results, environmental approval permits, First Nations and

community support, and financing. Construction of the mine is anticipated to begin in the second half of

2013, depending if the previously listed criteria are met.

How many jobs will be created?

Based on projects of similar size, it is anticipated that the Sisson Project could create 200-300 direct jobs

during the mine life as well as indirect jobs in the local market. About 500-800 jobs (through contractors)

are estimated over the course of the construction phase. A more precise estimate on the number of jobs

will be determined through the course of the Feasibility Study. Local, provincial and federal economies

will benefit from this Project through incomes generated and tax revenues.

How can I apply for a job with Northcliff Resources?

Job advertisements will state where to send resumes. Also, visit the Company website's Career section

for more information. Northcliff has a Local Hire Policy with employment based on merit.

Will the ore be processed at the mine site?

Yes. The mine plan calls for a processing plant onsite.

How big will the mine be?

Northcliff estimates the 'Project footprint' (i.e., the major Project components based on 2011 estimates by

Project consultant Knight Piesold) to total about 12 square kilometers.

September 29, 2011

Will water be needed for the Project? Where will this come from and will there be any effects to

surface or ground water?

As part of our studies for environmental and engineering purposes we will establish water demands and

sources of water. It is common to recycle water from the tailings pond back into the process. It is also

common to divert clean water around mine facilities and where it comes into contact with the mine

workings, it will be collected and directed back into the tailings impoundment and be used as process

water. The amount of water required by the Sisson Project is being determined by engineering and

hydrology studies.

Permit limits will be established for mine construction and operations in order to protect water quality and

aquatic resources in the Nashwaak watershed. Ongoing monitoring and enforcement by provincial

regulatory agencies will ensure that the Sisson Project meets the terms of approvals and permits.

Northcliff will develop water quality management plans to protect existing water quality.

What are tailings? How will they be managed?

Tailings are a by-product of the rock milling and mineral concentrating process. They are like fine sand or

silt and are commonly deposited as slurry (watery sediment) in an area impounded by earthen

embankments. Engineering studies will look at the quality of the tailings and inform Northcliff about the

best way to manage the impoundment. Modern mining practices and technologies have made significant

advancements in tailings impoundment design and management. Northcliff is committed to applying

appropriate management practices that are suitable to the local geography, geology and climate in order

to establish safe and stable operation and closure of the tailing impoundment.

Options for location and management of the tailings impoundment are being evaluated as part of the

Feasibility Study. Studies will confirm the nature of the bedrock, quality of the tailings and this information

will be used to inform the mine planning process.

Northcliff understands the importance of New Brunswick's land, water and natural resources, and is

committed to advancing the Sisson Project in a way that co-exists with the environment and other land

uses. Northcliff engineers are currently working to develop an environmentally sound, socially

responsible, economically viable, and technically feasible development plan for the Sisson Project.

What if there is an earthquake?

A fundamental assumption for the design team is that an earthquake will occur and that all facilities must

to be designed to withstand the seismic shaking that would result from such an event.

Canadian and New Brunswick Government regulations stipulate that all structures must be designed to

withstand appropriate seismic events. For example, the Canadian Dam Association has specific

requirements for the assessment of seismic potential and for the design of seismically stable

embankment structures.

Detailed studies will be conducted to establish appropriate seismic design criteria for the site, such that

Northcliff's team of specialists can meet or exceed all requirements relating to seismic stability.

Comprehensive emergency response and contingency plans will also be developed and will need to be

approved by relevant regulatory agencies, prior to receiving the necessary permits for mine development.

September 29, 2011

Will there be mine reclamation and reclamation bonding?

In New Brunswick, a comprehensive decommissioning, reclamation and closure plan must be approved

by the provincial government before mine operations can begin, and will be periodically updated during

the life of the mine. Further, government authorities require that sufficient bonding or other financial

sureties are in place in advance of issuing a mining lease, in order to responsibly close and reclaim the

Sisson Project at any stage of its operating life.

What route will be used for transportation?

There are a limited number of possible transportation routes, including the rail line nearby. A route will

not be decided on until the Feasibility Study is completed. A traffic assessment will be part of the mine

planning process. This involves detailed consideration of materials required to supply the mine and

transportation of materials out of the area.

Where will you get power from?

Northcliff is still evaluating options. Power from the Sisson Project will likely come from about 25km west

of the site. Northcliff has initiated discussions with NB Power and the exact routing of a power line will be

examined during the course of the Feasibility Study.


Appendix C Newspaper Advertisement


Northcliff Resources Ltd. (Northcliff) is a mineral exploration and development company focused on developing the advanced-stage Sisson Tungsten-Molybdenum Project located in central New Brunswick. The Sisson Project is located 100 kilometers northwest of Fredericton by road, near the communities of Stanley, Juniper and Napadogan.

The Sisson Project requires an environmental impact assessment under both provincial and federal legislation. Northcliff, in cooperation with internationally recognized engineering and environmental consulting firms, will be hosting a series of open houses to provide the public with information about the Sisson Project and the scope of the environmental studies planned to complete the environmental impact assessment. We hope you are able join us at one of these locations:

Juniper Recreation Center ................................... Sept 12, 4:30 - 8:30 pm

Millville Fire Hall .................................................. Sept 14, 4:30 - 8:30 pm

Stanley (Upper Nashwaak Lions Club) ............ Sept 15, 4:30 - 8:30 pm

For more information please contact:Northcliff Resources Community Relations Manager Greg Davidson

[email protected] | 1.506.455.0530

Sisson Project Open House


Appendix D Poster Placed in Local Communities


Northcliff Resources Ltd. (Northcliff) is a mineral exploration and development company focused on developing the advanced-stage Sisson Tungsten-Molybdenum Project located in central New Brunswick. The Sisson Project is located 100 kilometers northwest of Fredericton by road, near the communities of Stanley, Juniper and Napadogan.

The Sisson Project requires an environmental impact assessment under both provincial and federal legislation. Northcliff, in cooperation with internationally recognized engineering and environmental consulting firms, will be hosting a series of open houses to provide the public with information about the Sisson Project and the scope of the environmental studies planned to complete the environmental impact assessment.

We hope you are able join us at one of these locations:

Juniper Recreation Center ................................... Sept 12, 4:30 - 8:30 pm

Millville Fire Hall .................................................. Sept 14, 4:30 - 8:30 pm

Stanley (Upper Nashwaak Lions Club) ............ Sept 15, 4:30 - 8:30 pm

For more information please contact:Northcliff Resources Community Relations Manager Greg [email protected] | 1.506.455.0530

Responsibly Developing Opportunities in New Brunswick.

Sisson Project Open House


Appendix E Example of Letter and Emails sent to Chiefs and Councils

of First Nations Communities


1

Greg Davidson

From: Jayme( O'Donnell) Johnson <[email protected]>

Sent: July-14-11 12:02 PM

To: Greg Davidson

Subject: RE: Follow-Up

Good Afternoon,

I confirm receipt of the correspondence noted below. Should the Chief & Council wish to meet to discuss capacity and

support needs, we will advise.

Regards,

Jayme L.J. (O'Donnell) Johnson

Director of Operations

St. Mary's First Nation

Kchikhusis Commercial Centre

150 Cliffe Street

Fredericton, NB, E3A 2T1

Tel: (506)458-9511

Fax: (506)455-3322

From: Greg Davidson [mailto:[email protected]]

Sent: Friday, July 08, 2011 2:16 PM

To: [email protected]

Cc: Deirdre Riley

Subject: Follow-Up

Hi Jayme

I am following up on a letter sent to Chief Candice Paul and St Mary’s First Nation on June 10 by Chris Zahovskis,

President & CEO for Northcliff Resources. In the letter Chris indicated Northcliff’s desire to respectfully and

meaningfully engage First Nation communities to understand their priorities, concerns and aspirations as they relate to

the Sisson Project. Also included in the letter was an invitation to meet to discuss capacity support needs.

Please let me know if St. Mary’s is interested in to discussing capacity support needs with Northcliff.

Regards

Greg

2





“Notice Regarding Transmission

This message is intended only for the person(s) to whom it is addressed and may contain information that is privileged

and confidential. If you are not the intended recipient, you are hereby notified that any dissemination or copying of this

communication is prohibited. Please notify us of the error in communication by telephone (604-684-6365) or by return

e-mail and destroy all copies of this communication. Please note that any views or opinions presented in this email are

solely those of the author and do not necessarily represent those of Hunter Dickinson Inc. or any affiliated or associated

company. The recipient should check this email and any attachments for the presence of viruses. Neither Hunter

Dickinson Inc. nor any affiliated or associated company accepts any liability for any damage caused by any virus

transmitted by this email. Thank you.”


Appendix F Example of Emails sent to local MLA and MP


From: Greg Davidson Sent: August-18-11 9:42 PM Subject: Terms of Reference Release & Open House Schedule Good Afternoon: I am writing to advise you that a draft Terms of Reference (TOR) for a comprehensive environmental impact assessment study for the Sisson Project was released by the federal government and can be found at http://www.ceaa-acee.gc.ca/050/document-eng.cfm?document=51654 . The TOR provides the governments’ direction on the scope of studies that need to be considered in the Environmental Assessment by Northcliff and its consultant. The release of the draft TOR initiates a 45 day public review and Aboriginal consultation period on the project description as currently conceived, and the content of the TOR. To provide the public with an opportunity to learn more about and discuss the Sisson Project and the TOR with Northcliff personnel and its consultants, Northcliff Resources is hosting a series of open houses. The open houses will be held at:

Juniper Recreation Center Monday September 12 4:30 pm – 8:30 pm

Millville Fire Hall Wednesday September 14 4:30 pm – 8:30 pm

Stanley (Upper Nashwaak Lions Club) Thursday September 15 4:30 pm – 8:30 pm We hope you will be able to join us. If you have any questions please don’t hesitate to contact me. Regards Greg





http://www.ceaa-acee.gc.ca/050/document-eng.cfm?document=51654

mailto:[email protected]


Appendix G Posters Presented at Open Houses


Responsibly Developing Opportunities in New Brunswick

Welcome to the Sisson Project Open House


SISSON PROJECT


• Northcli� entered into an agreement with Geodex Minerals Ltd. in October 2010 whereby Northcli� acquired a 70% interest in the Sisson Project, subject to investing up to $17 million in project development expenditures

• Northcli� Resources Ltd. is a mineral development company focused on developing the advanced-stage Sisson Tungsten-Molybdenum Project in central New Brunswick

• Sisson has excellent potential to be a near-term metal producer, with the capability to meet increasing tungsten demand from North American and European markets

• Based in Vancouver, BC with o� ces in Fredericton and Stanley, NB, Northcli� is a public company listed on the TSX-V (NCF)

• Northcli� is associated with Hunter Dickinson Inc. (HDI), a diversi� ed, global mining group with a more than 25-year history of mineral development success

About Northcli� , the Sisson Project, and HDI

HDI Northcli�

Rathdowney

Heatherdale

Continental

RockwellAnooraq

Farallon

Northern Dynasty

Amarc

Curis

Taseko

Great BasinGold

Great BasinGold

North AmericanMetals

El Condor

Detour Gold

ContinentalGold

HDI COMPANIES HISTORIC COMPANIES

SISSON PROJECT


Responsible Mineral DevelopmentNorthcli� Resources is committed to working shoulder to shoulder with our stakeholders to achieve the responsible development of our projects and to contribute to the sustainable development of the communities in which we work. All our activities are guided by the following principles:

PRINCIPLES OF RESPONSIBLE MINERAL DEVELOPMENT

Health and Safety

We ensure our activities protect the health and safety of our employees and contractors, and of the communities in which we work.

Stakeholder Engagement

We engage with governments, communities, indigenous peoples, organizations, groups and individuals on the basis of respect, fairness, transparency, and meaningful consultation and participation.

Community Development

We establish productive local parterships to contribute to achieving development goals identi� ed by communities, to address local priorities and concerns, and to ensure communities bene� t to the greatest degree possible from our activities.

Environment and Society

We apply environmental and social best management practices in the planning, design and implementation of our activities, from exploration through to closure of our mining operations. We meet or exceed regulatory requirements in the jurisdictions in which we work.

Resource Use

We use land, water and energy resources responsibly, strive to maintain the integrity and diversity of ecological systems, and apply integrated approaches to land use.

Human Rights

We respect human rights principles, as well as local cultures, customs and values, in our dealings with employees, communities and other stakeholders.

Labor Conditions

We provide fair treatment, non-discrimination and equal opportunity for our employees, and comply with labor and employment laws in the jurisdictions in which we work. We strive for excellence in relations between management and employees.

Northcli� integrates these Principles of Responsible Mineral Development within our corporate management and decision-making, and we work to continually improve our performance. From project acquisitions and exploration through to mine closure, we assess the � nancial, social and environmental bene� ts and risks of our business decisions. Our goal is international best practice in all our operations, in Canada and around the world.

SISSON PROJECT


Project Location

Sisson Project

107

104

8

2

Saint-John River

Southwest Miramichi River

Nashwaak River

0 10 20

kilometres

Roads

Rivers

N

Railway

Powerlines

2,40

0,00

0 m

E

Doaktown

Marysville

Oromocto

St Marys

Stanley

FREDERICTON

Napadogan

Kingsclear

Tobique

Hartland

Woodstock

Juniper

• The Sisson Project is located on Crown land in central New Brunswick

• The project is located 100 kilometers northwest of Fredericton by road; near the communities of Stanley, Juniper and Napadogan

• The project is well-serviced by existing infrastructure including access to extensive road network, power lines, rail lines and deep sea ports

SISSON PROJECT


Project Summary• The Sisson property contains a large, near surface tungsten and molybdenum deposit

• Project life is expected to be 20+ years

• Sisson Project facilities will include a:

• Open pit

• Tailings storage facility

• Waste rock storage

• Potential for developing a value-added plant

• Ore storage

• Processing plant

• O� ces

Preferred project arrangement

SISSON PROJECT


Current Project Schedule

Q1 Q2 Q3 Q2

2011

Q1Q4

Engineering

2012 2013 2014

Q3 Q4 H1 H2 H1

2015

H1H2

Permitting

Terms of Reference

Project approval

Production

Stakeholder and First Nations Engagement

Construction

Feasibility Study

EIA

Opportunities for First Nations and public consultation and engagement on the Sisson Project will occur throughout the project

Major Project milestones are as follows:

• Public review of the Environmental Impact Assessment (EIA) Terms of Reference (Q3, 2011)

• Completion of Feasibility Study and submission of draft EIA (estimated Q3-2012)

• Release of the draft EIA, available to the public (estimated Q4 2012 or Q1 2013)

• Provincial government hosted public meeting (estimated Q2 2013)

• Release of the Federal Comprehensive Study Report, available to the public (estimated � rst half of 2013)

• The chart below shows approximate timeframes for major Project milestones

OTHER PROJECT INFORMATION


• Tungsten is the world’s hardest metal.

• Tungsten is an essential mineral used for producing tools, steel cutting instruments, drill bits, medical instruments and manufacturing equipment for industries

• Approximately 60% of world tungsten production is used to make tungsten carbide

• Consumer products such as cars, cellular phones, § at screen TVs, and computers use signi� cant amounts of tungsten

• Green technologies such as wind turbines and solar panels also require tungsten

• Tungsten is projected to increase in demand

• Molybdenum is essential in the manufacture of stainless steel products, and in alloys that make steel stronger and more heat resistant.

• Molybdenum also has uses as paint pigments, smoke and § ame retardants, dry lubricants, automotive grease and in tools

Tungsten and Molybdenum

100,000

2008 2009 2010 2011 2012 2013 2014 2015

5000

Year

0

-5,000

-10,000

-15,000

90,000

80,000

70,000

60,000

50,000

40,000

Supply

Demand

Surplus/Deficit

Tung

sten

(Ton

nes)

Tungsten Surplus/Deficit (Tonnes)

Deficit

Source: Roskill Information Services

OTHER PROJECT INFORMATION


Project Bene� tsThe Sisson deposit has the potential to support mining activity in central New Brunswick for more than 20 years. Economic activity generated over this period may include:

• Approximately 200 - 300 high-skill, high-wage jobs during operations

• Approximately 500 - 800 jobs during construction

• Training and development opportunities for employees

• Hundreds of millions in initial capital investment

• Tens of millions of dollars in annual operating expenditures

• Signi� cant annual tax revenues to provincial and municipal governments

• Supply and service contracts and spin-o� bene� ts for local communities

• Economic diversi� cation for central New Brunswick

ENVIRONMENTAL IMPACT ASSESSMENT PROCESS

Environmental Impact Assessment Process

PROVINCIAL FEDERAL

Guidelines

Coordinated Provincial/Federal Environmental Impact Assessment Process

Publ

ic C

onsu

ltatio

n th

roug

hout

pro

cess

We are here

Recommendations to Government

Provincial Government Decision Federal Government Decision

Proceed with Conditions?

Comprehensive Review?

Submission of Project Description

Project Description Accepted

Federal Coordination

Notice of Commencement Issued

Participant Funding

Terms of Reference

EIA Report Prepared

EIA Report Reviewed and Accepted

Federal Comprehensive Study Report Released

Formal public Meeting (Provincial)

EIA Registration

Determination Review

ENVIRONMENTAL IMPACT ASSESSMENT PROCESS

Terms of Reference

Public Review of Terms of Reference

• The Terms of Reference outline how the provincial and federal regulatory requirements for the EIA will be met

• Essentially, it describes how the EIA will be conducted

• Includes a description of technical studies to be conducted and work plans for conducting the EIA

• The Project’s public, stakeholder and Aboriginal engagement program is described

The Terms of Reference is now available for public review and comment

Download Digitally

The document can be downloaded online at www.ceaa-acee.gc.ca/050 under reference number 11-03-63169, or at the Sisson Project website www.sissonproject.ca

View Hardcopy

Paper copies are on display at:

Fredericton Public Library12 Carlton Street, Fredericton, NB

Nackawic Town Hall115 Oris Drive, Nackawic, NB

L.P. Fisher Library679 Main Street, Woodstock, NB

Stanley Village O� ce20 Main Street, Stanley, NB

COMMENTS

Comments can be submitted by October 3, 2011 to

Sisson Project (Tungsten and Molybdenum Mine)Canadian Environmental Assessment AgencyTara Oak, Project Manager1801 Hollis Street, Suite 200Halifax NS B3J 3N4 [email protected]

Northcli� Resourcesc/o Greg Davidson47 Avonlea Court, 2nd FloorFredricton, NB E3C [email protected]

WATER MANAGEMENT

Acid Generation Ingredients

Acid Rock Drainage (ARD) is neutralized by Carbonate Minerals

Oxygen

Rain or snowmelt

Acid waterand heat

pH increases and some contaminants removed

Acid water

BacteriaPYRITE

CALCITE

WATER MANAGEMENT

Acid Rock Drainage-Metal Leaching Studies

General Types of Remedial Methods

Tests to evaluate potential for Metal Leaching (ML) and Acid Rock Drainage (ARD) are performed on waste rock, tailings and low grade ore

• Composition (ICP-MS)

• Acid-base accounting

• Mineralogy (XRD, Microprobe, optical)

Kinetic-Lab: Humidity Cells Kinetic-Field: Barrels

Less Acidic, less metals

Acidity (pH <4), metals

PYRITE

OxygenLimit Oxygen

(submerge rock)

PyriteRemove Pyrite

(� otation)

+ Treat the drainage

Rain or snowmeltLimit Water Flow

(cover rock)

BacteriaKill Bacteria(bactericides)

Add acid consumer(limestone)

WATER MANAGEMENT

Key Points

• Not all rocks have potential for metal leaching and acid rock drainage (ML/ARD)

• ARD starts by exposing some types of rocks to the atmosphere, similar to how rust forms on a car

• For rocks that can cause ML/ARD, many solutions exist to prevent harm to the surrounding environment when the problem is identi� ed in advance of mining

• Since December 2010, SRK has been working towards predicting the potential of ML/ARD at Sisson and this work will be summarized in the EIA Report

• If potential is found to exist for ML/ARD, mitigation measures will be developed and implemented by the project to protect the environment

WATER MANAGEMENT

Climate and Water Monitoring

• Regular surface and groundwater quality sampling is ongoing

• Hydrology stations have been installed at key locations to automatically collect § ow measurement data

• Water quality and hydrology programs were initiated in 2007 and 2008

• Project climate station collects data to support water management planning

• Groundwater monitoring wells (12 wells at 6 sites) are currently being installed at key locations at the project

Dustfall Monitoring Snow Survey

Climate Station Flow Measurement Site

WATER MANAGEMENT

Project Water Management

Project Site Water Management Principles

• Water management is a primary consideration for all project design

• Full control of all project surface water and groundwater

• Site wide sediment and erosion control plan

• Reuse and recycle to the extent possible

• Seepage interception, collection, monitoring, and recycle

• Minimize project footprint

• Diversion of clean water to natural watercourses

Engineering Design Guidelines

The key goals of the design and engineering are:

• To safely and responsibly manage mine water and waste

• To ensure public safety

• To protect regional surface and groundwater resources

Engineering standards:

• Canadian Dam Association

• Provincial and Federal regulations

• Best engineering practice

• Best available technology

Tailings Storage Facility

Water Management Ponds (Collection points), typ.

Impacted Water Collection Channels, typ.

Clean Water Diversions typ.

Waste Rock Storage Area

Open Pit Area

Example of clean water diversion channel construction

Instream � ow measurement

Water collection and recycle points

WATER MANAGEMENT

Ongoing and Future Water Management Studies

Current Studies

• Preliminary level engineering design

• Groundwater and surface water data collection to de� ne the existing environment

Water Quality Guidelines

• The design basis is to ensure that all project water is contained, managed and recycled to the extent possible during operations.

• The project will be designed to protect groundwater and surface water resources during project construction through to closure

Next Steps (Late 2011 and Early 2012)

• Detailed groundwater and surface water studies

• Feasibility level engineering

• Continued groundwater and surface water data collection

• Detailed e� ects assessment modelling and studies

• Watershed modelling (water quantity)

• Flood water management studies

• Water quality predictions

• Stream geomorphology

• Physical habitat modelling

• Climate change management

Stream� ow measurement and monitoring Groundwater sampling

Surface water quality sampling

Monthly stream� ow records (hydrograph)

AQUATICS

Watercourses

Sisson Project

Claim boundary

Sisson Project

Claim boundary

AQUATICS

Aquatic Environment

What is the Aquatic Environment?

The Aquatic Environment includes all freshwater rivers, streams, and lakes in a particular area

What is planned?

Various studies will be conducted to determine how the project might a� ect the Aquatic Environment:

• Use of mapping databases and LiDAR data to identify watercourses

• Walkover and rapid assessment of stream habitat areas

• Characterization of � sh habitat quality

• Identi� cation of freshwater species of conservation concern, if present

• Water quality sampling

• Sediment sampling

• Benthic invertebrate sampling

• Qualitative electro� shing

• Quantitative habitat and � sh population surveys, including benthic invertebrates and periphyton

Key aspects to be considered as part of the environment e� ects assessment of the Aquatic Environment include:

• Surface water quantity and quality

• Sediment quality

• Fish habitat quantity and quality

• Fish populations

• Usability of the � sheries resource

• Aquatic species of conservation concern

What is Lidar?

LIDAR (Light Detection And Ranging) is a visual remote sensing technology that can measure the distance to, or other properties of a target, by illuminating the target with light.

LiDAR produces detailed contour mapping of topography that is used to create a digital elevation model, with which low-lying features, such as watercourses, are easily identi� ed.

OTHER ENVIRONMENTAL ISSUES


Key Environmental Issues for the EIA• The EIA will be focused on the key issues of concern, as represented by Valued Environmental

Components (VECs)

• VECs are selected based on regulatory requirements, input from the public, stakeholders, and Aboriginal peoples, and the professional judgment of the study team

• The VECs to be assessed as part of the EIA are described in the table below

VEC De� nition Key Environmental E� ects to be Assessed

Major Studies being, or to be, Conducted

Atmospheric Environment

• Includes the layer of air near the earth’s surface to a height of approximately 10 km

• Includes Air Quality and Climate

• Change in Air Quality • Change in Climate (greenhouse gas emissions)

• Meteorological monitoring• Dustfall monitoring• Ambient air quality monitoring• Dispersion modelling to predict maximum ground-level concentrations

Acoustic Environment

• Includes sound quality in the outdoor environment

• Noise is de� ned as unwanted sound

• Change in Sound Quality (sound and vibration) • Baseline sound monitoring• Sound modelling to predict sound pressure levels during Project

Water Resources

• Includes both groundwater and surface water that will be developed to provide potable water for human consumption or for other industrial, commercial, institutional or residential uses.

• Change in Water Quality• Change in Water Quantity (groundwater and surface water)

• A wide variety of hydrogeology and hydrology studies will be conducted

• See the Water Management poster for more information

Public Health & Safety

• Public Health includes the physical health and well-being of the public

• Public Safety relates to the protection of the general population from injury, damage, or harm

• Change in Public Health (human health and ecological risks)

• Change in Public Safety (accidents, malfunctions, and unplanned events

• Human Health and Ecological Risk Assessment

• Prevention by design

Aquatic Environment

• Includes all freshwater rivers, streams, and lakes in a particular area

• Change in � sh populations• Change in the productivity of � sheries resources• Change in the useability of recreational � sheries resources

• Change in the abundance or distribution of aquatic species of conservation concern

• Mortality of one or more individuals of a species listed on Schedule 1 of the Species at Risk Act or on the New Brunswick Endangered Species Act.

• A wide variety of stream habitat assessments, � sh surveys, and water quality tests are planned.

• See Aquatic Environment poster for more information

OTHER ENVIRONMENTAL ISSUES


Key Environmental Issues for the EIAVEC De� nition Key Environmental E� ects

to be AssessedMajor Studies being, or to be, Conducted

Terrestrial Environment

• Includes all terrestrial wildlife, habitat and birds • Change in wildlife populations, including migratory birds, and their habitats

• Change in the abundance or distribution of species of conservation concern

• Breeding bird, raptor and waterfowl surveys

• Habitat surveys• Incidental observations of amphibians and mammals

• Targeted surveys for bird species at risk

Vegetated Environment

• Includes terrestrial vascular plants, including invasive species, in upland, wetland, and aquatic habitats, with particular focus on rare plants

• Change in vegetation, particularly with respect to species of conservation concern (SOCC)

• Habitat modeling will be conducted to determine high potential areas for plant species of conservation concern

• Vascular plant � eld surveys (focus on SOCC)

Wetland Environment

• Includes wetland habitat including, soils, habitat values, surface hydrology, and wetland function

• Change in wetland area and/or function • Wetland mapping using NBDNR mapping layer

• Wetland � eld delineations and functional evaluations

Labour and Economy

• Includes the labour market, employment, employment income, business income, and their e� ects on provincial taxes and the provincial GDP

• Change in employment (direct and indirect)• Availability of skilled and unskilled labour• Change in economy (local, regional, provincial)

• Development of economic pro� les based on existing sources

• Quanti� cation of the economic e� ects of the Project on the provincial economy

Community Services and Infrastructure

• Includes local emergency response, ongoing support services, accommodation and housing, recreation and entertainment facilities, and food services

• Change in public services• Change in housing and accommodation

• Development of pro� le of existing community services and infrastructure

Land and Resource Use

• Includes public and private use of lands and resources within and adjacent to the project

• Change in Land and Resource Use (use and enjoyment of land for current purposes)

• Development of a pro� le of existing land and resources uses in the area

• Viewshed modelling

Current Use of Land and Resources for Traditional Purposes by Aboriginal Persons

• Incorporates knowledge of contemporary Aboriginal hunting, � shing, trapping and gathering activities for traditional purposes, and use of lands and resources for social and ceremonial activities based on traditional or historic practices

• Change in the current use of land and resources for traditional purposes by Aboriginal persons

• Traditional Use Study• Aboriginal engagement

Heritage Resources • Any physical remnants found on top of and/or below the surface of the ground that inform us of past human use of and interaction with the physical environment

• Change in heritage resources (including archaeological, historic, or paleontological resources)

• Heritage Resource Impact Assessment, including:

• Archaeological potential modelling• Field walkover surveys• Test pitting

Transportation • Includes consideration of road infrastructure condition, tra� c volumes, and tra� c safety, as a� ected by the Project

• Change in Transportation (road infrastructure, railway infrastructure, tra� c and tra� c safety)

• Compilation of average tra� c volumes and establishment of existing conditions of infrastructure

• Prediction of tra� c level of service during the project

E� ects of the Environment on the Project

• Includes the sensitivity of the Project to variations in meteorological conditions, to climate variability and climate change, and to natural and manufactured hazards

• Changes to the Project caused by environmental forces or processes (e.g., seismic activity, � re, severe weather, climate change, sea level rise).

• Analysis of building and safety codes• Compilation of climate normals, including weather extremes

• Environment Canada predictions on potential climate changes

• Survey of historical information in seismic events in central New Brunswick

NEXT STEPS


Public Review of Terms of ReferenceThe Terms of Reference is now available for public review and comment.

Download Digitally

The document can be downloaded online at www.ceaa-acee.gc.ca/050 under reference number 11-03-63169 or at the Sisson Project website www.sissonproject.ca

View Hardcopy

Paper copies are on display at:

Fredericton Public Library12 Carlton Street, Fredericton, NB

Nackawic Town Hall115 Oris Drive, Nackawic, NB

L.P. Fisher Library679 Main Street, Woodstock, NB

Stanley Village O� ce20 Main Street, Stanley, NB

COMMENTS

Comments can be submitted by October 3, 2011 to

Sisson Project (Tungsten and Molybdenum Mine)Canadian Environmental Assessment AgencyTara Oak, Project Manager1801 Hollis Street, Suite 200Halifax NS B3J 3N4 [email protected]

Sisson Project O� cec/o Greg Davidson47 Avonlea Court, 2nd FloorFredricton, NB E3C 1N8

[email protected]


Appendix H Letter Sent to the Assembly of First Nations Chiefs in New Brunswick



Appendix I Example of Letter Sent to St. Mary’s and Woodstock

First Nations Offering to Host Open House



Appendix J Outreach Summary Table


1

Outreach Summary Table Since developing its Stakeholder and Aboriginal Engagement Plan, Northcliff Resources has executed a number of specific outreach initiatives, utilizing tools like open houses, the Stanley Storefront operation, e-newsletter, group emails, workshops and group presentations. The following Summary Table illustrates several of these specific initiatives.

Initiative Summary Stakeholder / Group / First Nation Community Timing

Presentations Presentations were made to a number of municipal governments (Mayors &/or Council) and Local Service District Committees. These presentations were used to introduce Northcliff, and the Sisson Project to municipal leaders. Municipal presentations will be ongoing as the Project moves forward. Presentations were also made to a variety of business groups and service clubs introducing Northcliff Resources and the Sisson Project to the business community.

LSD Douglas (Keswick) Village of Stanley Town of Nackawic LSD Aberdeen (Juniper) Village of Millville Mayor - City of Fredericton Fredericton Chamber of Commerce Fredericton North Rotary Club KMPG Fredericton

Dec 2010 - Ongoing

Workshops Northcliff Resources has hosted two workshops. The first –an aquatics workshop - was held at Stantec offices and focussed on securing input and feedback from stakeholders on the scope of studies proposed for the aquatics program of the Environmental Assessment. This workshop was completed prior to the release of the Draft Terms of Reference for the Project. A second workshop was conducted at the Stanley “Storefront” office to inform stakeholders about the fundamentals of a feasibility study for the Sisson Project. The relationship between the feasibility study and the Environmental Assessment was also discussed as part of the mine development process. Additional workshops are being planned for 2012.

Aquatics Workshop: Canadian Rivers Institute Atlantic Salmon Federation NB Salmon Council Nashwaak Watershed Association Inc. Feasibility Workshop Mayor & Council Stanley LSD Representatives: juniper 2 - Business Owners -Stanley

May - Ongoing

2


Community Support Initiatives

Northcliff Resources continues to engage local communities through event sponsorships and educational initiatives. Northcliff Resources sponsored 4 x $1,000.00 scholarships in 2011. Three scholarships were awarded to First Nation students and one scholarship award was presented to a graduate of Stanley High School. Northcliff Resources sponsored, with a financial contribution, the Maliseet Conservation Youth Science Camp in 2011. A barbeque was held at the Stanley “Storefront” in late August to officially open the office. A contribution was made to the Stanley Firefighters Association for hosting the event. Sponsorship was also provided to the Juniper Recreational Council and the Fredericton Junior Achievement Program. Northcliff will continue to seek out sponsorship opportunities that will benefit local, non-profit community organizations and support initiatives that promote higher education.

Village of Stanley Volunteer Firefighters Association Community of Juniper Recreation Council Fredericton Junior Achievement Maliseet Nation Conservation Council Aboriginal Workforce Development Initiative Woodstock First Nation Metepenagiag First Nation

Dec 2010 - Ongoing

Aboriginal Engagement Assembly of First Nation Chiefs New Brunswick

Initial contact with Assembly of First Nation Chiefs New Brunswick (AFNCNB) Jan 19,2011. Meeting AFNCNB, Feb. 2, 2011 Meeting AFNCNB, March 1, 2011 Meeting AFNCNB, June 30,2011 Registered Letters sent to AFNCNB & individual Chief & Councils announcing the registration of the Sisson Project description and the Release of the Draft Terms of Reference. *The above engagement activity does not reflect all emails, phone calls, or other correspondence to discuss moving forward.

Representing all Mi'kmaq First Nations Communities and the Maliseet Communities of Madawaska, Tobique, Kingsclear and Oromocto First Nations

Ongoing

Aboriginal Engagement St. Mary’s First Nation

Initial contact with St. Mary’s First Nation Feb 15,2011. Meeting St Mary’s First Nation April 14,2011. Registered Letters sent to Chief & Council announcing the registration of the Sisson Project description and the Release of the

St. Mary’s First Nation Ongoing

3


Draft Terms of Reference. *The above engagement activity does not reflect all emails, phone calls, or other correspondence requesting meetings to discuss moving forward.

Aboriginal Engagement Woodstock First Nation

Initial contact with Woodstock First Nation Feb 17,,2011 Meeting Woodstock First Nation March 21, 2011 Meeting Woodstock First Nation April 13, 2011 Meeting Woodstock First Nation June 29, 2011 Registered Letters sent to Chief & Council announcing the registration of the Sisson Project description and the Release of the Draft Terms of Reference. *The above engagement activity does not reflect all emails, phone calls, or other correspondence requesting meetings to discuss moving forward.

Woodstock First Nation Ongoing

Aboriginal Engagement Saint John River Valley Tribal Council

Meeting with St. John River Valley Tribal Council May 3, 2011.

Madawaska First Nation Oromocto First Nation Woodstock First Nation St Mary’s First Nation Kingsclear First Nation

Ongoing

Aboriginal Engagement NB Aboriginal Peoples Council

Meeting with NB Aboriginal peoples Council June 3, 2011.

Off Reserve and Non-Status Aboriginal Members

Ongoing

Documents

Summary of Public, Stakeholder, and Aboriginal Engagement ......Summary Report #1: Engagement Activities from December 2010 to November 2011 (Up to and Including Terms of Reference)