New zinc mine in Northwest Territories crosses environmental hurdle
A new zinc mine in Canada’s Northwest Territories has received environmental approval.
Canadian Zinc Corporation (TSE:CZN) said Friday that its Prairie Creek Mine has cleared an environmental review by the Mackenzie Valley Environmental Impact Review Board, meaning the mine can proceed to the next stage of regulatory approvals.
The company’s stock shot up 8.5% on the news. CZN earlier this month reported a third-quarter loss of $5.3 million, which it attributed to higher exploration expenses and losses in the value of its shares in a Fijian mine.
In its review, the board concluded that the Prairie Creek mine is unlikely to have any significant adverse impacts on the environment or to be a cause for significant public concern. However, the board had three suggestions to manage any potential impacts, including the construction of a second water storage pond, that Canadian Zinc prepare a Tailings Management Plan, and that the company use secondary containment of concentrate while it is being trucked during the winter.
The Prairie Creek deposit contains zinc, lead and silver minearalization. Measured and indicated resources stand at 5.8 million tonnes and the inferred resource is 5.5 million tonnes. Canadian Zinc Corp. plans to build the mine to process an initial 600 tonnes of ore per day, increasing to 1200 tonnes per day, for a minelife of 20 years.