Is the PC Silver Mine located near Nahanni National Park Reserve?
Yes. The Prairie Creek mineral deposit was discovered in 1928 with active development work, to varying degrees, since 1965. In 2009, Parks Canada expanded Nahanni National Park Reserve around the Prairie Creek Silver Mine (“PC Silver Mine”).
The Company currently maintains a Memorandum of Understanding (“MOU”) with Parks Canada focused on responsible mine development and access road operations.
This framework reflects decades of environmental review, consultation and mine-specific regulatory work. Honey Badger works collaboratively with Parks Canada. Based on this MOU, Parks Canada “acknowledges that (the Company’s) existing legal rights can be exercised” and “recognizes and respects the rights (of the Company) to develop the Prairie Creek Silver Mine”. Recent conversations between Honey Badger and senior Parks Canada representatives were encouraging.
Very importantly, because of PC Silver Mine’s legacy and importance to the local economy, Parks Canada amended the Canada National Parks Act to specifically allow for:
- the continued development of the PC Silver Mine,
- and construction and operation of the required access road.
The mine has since continued to operate within a regulated framework involving:
- Parks Canada,
- Indigenous governments,
- and northern regulatory authorities.
What Indigenous agreements are currently in place? Is the mine currently permitted?
- the mine site, and
- the all-season access road.
Under the Northwest Territories regulatory system established through the Mackenzie Valley Land and Water Board framework, permits and licences are issued for defined terms and renewed periodically through established regulatory processes.
Certain historical licences referenced in older reports have expired as part of the normal renewal cycle and have subsequently been replaced or renewed through updated authorizations.
The Company is currently operating under active licences and permits.
Is the mine currently permitted?
The PC Silver Mine has active:
- Water Licences,
- and Land Use Permits,
for both:
- the mine site, and
- the all-season access road.
Under the Northwest Territories regulatory system established through the Mackenzie Valley Land and Water Board framework, permits and licences are issued for defined terms and renewed periodically through established regulatory processes.
Certain historical licences referenced in older reports have expired as part of the normal renewal cycle and have subsequently been replaced or renewed through updated authorizations.
The Company is currently operating under active licences and permits.
Is Honey Badger planning to rely on winter roads?
The current development plan contemplates construction and operation of an all-season road rather than reliance on winter road access.
The required Environmental Assessment process for the all-season road has already been completed, and the mine currently holds active Water Licences and Land Use Permits associated with the all-season road corridor. A significant amount of money and time was spent de-risking the all-season road construction project over the past few years prior to Honey Badger’s acquisition of the asset.
Honey Badger believes an all-season road offers substantially improved:
- operational reliability,
- logistics,
- safety,
- and long-term infrastructure value for the region.
Does PC Silver have access to water for operations?
Yes.
The PC Silver Mine currently holds an active Water Licence authorizing removal of potable water from a local aquifer for operations.
Water management and usage are regulated through the Northwest Territories co-management regulatory framework.
What Indigenous agreements are currently in place?
The mine has signed agreements with several Indigenous governments, including:
- Nahɂą Dehé Dene Band
- Łíídlįį Kų́ę́ First Nation
- Acho Dene Koe First Nation
These include:
- Impact Benefit Agreements,
- and Transportation Corridor Agreements.
The agreements establish frameworks for:
- ongoing engagement,
- employment and training opportunities,
- contracting participation,
- and regional economic development.
Specific commercial terms remain confidential.
Honey Badger believes long-term collaboration with Indigenous governments is fundamental to successful operations.
The Company’s relationships with the communities in which it operates are critical to ensure the future success of its existing operations and the construction and development of its projects. The Company has taken a proactive approach toward engaging and working with local Indigenous and non-Indigenous communities that could be impacted by its material mineral projects.
Could mercury levels prevent PC Silver concentrates from being sold?
Because of chemistry, every mine that produces zinc anywhere in the world also produces some mercury by-product. We understand that PC Silver is generally no different, especially because of its high mined zinc grades and also high zinc grades in concentrate. Honey Badger and prior operators have conducted extensive discussions with potential concentrate purchasers and smelters regarding PC Silver concentrates.
The Company understands that:
- zinc (and lead) concentrates will be shipped offsite using specially designed methods to be processed at smelters that have modern technology. Safe removal of the metals, including mercury, will contribute to the overall targeted best-practice operations of the mine.
- a number of zinc smelting circuits have processes to handle mercury safely; we understand that this is an established and widely used technology,
- PC Silver’s concentrate characteristics also contain important positive attributes for smelters including high zinc grades, yet low iron and silica content, for example.
In particular:
- PC Silver zinc concentrates contain unusually low iron levels (~2% Fe),
compared to many conventional zinc concentrates (~8% Fe).
Lower iron content can materially reduce hazardous waste generation during smelting and may represent an important processing advantage.
The global zinc concentrate market is substantial, with annual demand in:
- Canada,
- Europe,
- Asia,
- and other western markets measured in millions of dry metric tonnes annually.
We expect that PC Silver concentrate production represents a small portion of the global zinc concentrate market and our concentrate should be suitable for blending within existing smelter systems.
Are arsenic and antimony significant issues in the concentrates?
The Company’s understanding is that:
- arsenic and antimony concentrations are not expected to represent material issues within the planned concentrate streams.
Antimony may also provide potential value within lead concentrates.
As with all polymetallic mining operations, concentrate specifications and treatment terms will ultimately be finalized through future commercial arrangements with smelters and offtake partners. The zinc concentrate market is now tight which favors mining companies such as Honey Badger. In fact, zinc and lead concentrate treatment and refining charges (called “TC/RCs”) at other operations that have been made public are the most beneficial for mining companies at any time in history.
Is older criticism of the mine still relevant?
Certain reports and commentary regarding PC Silver reference information that is now decades old and pre-dates:
- major permitting milestones,
- updated environmental assessments,
- Indigenous agreements,
- active licences,
- and subsequent engineering and regulatory work completed on the mine.
Honey Badger believes PC Silver today represents one of the more advanced, and highest quality, brownfield silver-zinc-lead redevelopment opportunities in the world.
Forward Looking Information
Certain statements contained herein constitute “forward-looking information” within the meaning of applicable securities laws, including but not limited to, the potential of the PC Silver Project, the potential merits of the PC Silver Project, and Honey Badger’s strategic objectives. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements reflect the Company’s current expectations regarding future events, performance and results and speak only as of the date of this release. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law