Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 4 www.resourceworld.com 31 in the East Zone. These resources were based on a 0.25% cut-off grade. No exploration was performed until 1994 and a series of coop- erate takeovers and reorganizations resulted in the property divided between American Bullion Minerals (80%) and Teck (20%). American Bullion retained geologist Mark Rebagliati in 1994 to evaluate exploration by previous owners. Rebagliati estimated a possible larger resource with a lower cut-off grade and recom- mended more drilling. Over 36,000 metres were drilled which increased the size of the deposit. By the end of 1995, the prop- erty had 244 diamond and 44 percussion holes (totaling 74,782 metres). In 2003, bcMetals conducted an infill drilling campaign and poked another 49 holes (16,591 metres) into the deposit which resulted in the first NI 43-101 compliant resource. Over the next two years bcMetals continued to drill Red Chris and ultimately commissioned and completed a feasibility study which was pub- lished in 1995. Imperial Metals acquired bcMetals in 1996 for an all-cash takeover of $1.70 per share ($68.4 million). "When we first took over bcMetals, the deposit was consid- ered to be another medium sized low-grade, open-pit, porphyry deposit," said Robertson. "Through our exploration efforts we have been able to reveal the fact that Red Chris is truly a world- class porphyry deposit and the current mine plan is just Phase I. It will be a significantly better mine at the end of the day. We are taking a slow and methodical approach to development." Imperial began a deep drilling program in 2007 which revealed significant additional mineralization beneath pit design. Resources at Red Chris are based on drill programs conducted between 1974 and 2011 with data from 388 diamond drill holes. Current measured and indicated resources tally to an impres- sive 1.2 billion tonnes averaging 0.517% copper-equivalent (0.327% Cu; 0.327 g/t Au; 1.114 g/t Ag), with a 0.2% copper- equivalent cut-off grade. There is an additional 1.2 billion lbs inferred resources averaging 0.441% copper-equivalent (0.271% Cu; 0.292 g/t Au; 1.020 g/t Ag). CuEq = [Cu% + (Au g/t 0.583)]: using US $3.00/lb copper price and a US $1,200/oz gold price. Red Chris received British Columbia Environmental Assessment Certification in 2005 and Canadian Environmental Assessment Act approval in 2006. In July 2010, the company submitted an Application for a Mines' Act Permit and received the permit in May 2012. The permitting process was not without its legal issues. In 2007, a lower court ruled that the Federal Environmental Assessment was "procedurally incorrect" and should be redone. That ruling was in favour of an application by MiningWatch Canada, (rep- resenting some environmental, labour and aboriginal interests), that argued the assessment was not a comprehensive review and that public consultation was inadequate. The Supreme Court ultimately overturned that ruling in early 2010. Interestingly, both the Provincial and Federal environmental reviews of Red Chris concluded that the project was not likely to cause signifi- cant adverse environmental effects. These conclusions were never challenged in the courts. "We never had real stiff opposition with First Nations, I believe that was miss-characterized a bit," said Robertson. "We have had a pretty open and productive relationship with the Tahltan Nation but we also spent a lot of time and effort building that relationship and it has gotten much stronger in recent years. They have worked closely with us during the permitting phase and helped us improve the mine plan." Specifically, Robertson referred to the Fisheries Habitat Compensation Plan that was put in place. "The Tahltan Nation proposed a new plan after the initial one had already been approved. We were initially hesitant but eventually we got on board with the new concept they tabled and it turned out to be a much better plan than the original one." Robertson attributes this success to Imperial Metals' corporate philosophy of developing a "partnership mentality," with First Nations stating, "We intend to continue work like this through- out the mine life. We have similar relationships with First Nations at our Mt. Polley and Huckleberry Mines." Recently, the Provincial Government announced new Economic and Community Development Agreements (ECDAs) that will enable Cheslatta Carrier First Nation, Nee-Tahi-Buhn Band, Skin Tyee Nation and Wet'suwet'en First Nation to receive a share of mineral tax revenues collected by the province from the expansion of the Huckleberry Mine, located 123 km southwest of Houston, BC. ECDA's ensure First Nations benefit from mining activities within their traditional territory. "The expansion of the Huckleberry mine created jobs for First Nations and helped make their communities stronger. These agreements show what can be accomplished through the co-oper- ation and collaboration with First Nations in responsible mining development," stated Energy and Mines Minister, Bill Bennett. To date, BC has shared more than $12 million in mineral tax revenues as a result of ECDAs with First Nations in whose traditional ter- ritories mines are located. Imperial Metals maintains agreements with the Tahltan, Xat'sull, T'exelcemc, Office of the Wet'suwet'en, Wet'suwet'en, Cheslatta, Adams Lake, Little Shushwap and Simpcw First Nations. Each agreement is unique. Many include provisions for First Nation edu- cation and training, employment and contracting opportunities, capacity support and provisions for communication and interaction on issues such as social and environmental responsibility. Imperial Metals is currently working with the Tahltan Nation to finalize a comprehensive benefits agreement which will pro- vide the basis of a partnership between the Tahltan people and Imperial for the life of the Red Chris Project. n

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