080121-08MN006-Sabina Hackett River Project Proposal ... - NIRB

Project Description2.1.3 Project Need and PurposeThe purpose of the Hackett River Project is to construct, operate and close and reclaim a basemetal mine site in a manner that minimizes environmental impacts and provides opportunities foreconomic and social development in Nunavut. Agreements will be negotiated with DesignatedInuit Organizations to ensure that benefits from the project are realized by registered beneficiariesand Nunavummiut.Proposed operations start with an open pit mine at Camp Lake, approximately 105 km south ofthe community of Kingaok (Bathurst Inlet) in the West Kitikmeot. Over the mine life two otherdeposits in the area will be developed; one (East Cleaver) by open pit methods and the second(Boot Lake) using underground methods. Ore will be mined and processed year round. Wastematerial from the mine areas will be stockpiled on surface in designated areas and tailings will bedeposited under water. With the current resources, the mine and processing plant will have anapproximate mine life of 14 years and employ a total of 225 to 350 people. Approximately halfthat number will be on site at any one time due to the rotation schedule.Sabina has actively explored for base metals in Nunavut since 2004. The company has identifieda number of prospective mineral resource areas and will continue to explore and developprospective areas throughout the life of the Hackett River Project. The goal is to find additionaleconomic base metal deposits in the general area of Hackett River that would extend the life ofthe processing plant. Cash flow from the Project will be re-invested into exploration anddevelopment programs.2.2 Project History1956 Copper mineralization was discovered by Rio Tinto Exploration at Camp Lake.This showing was initially called the “A” Zone and is now more commonlyknown as the “Main Zone”.1966 The precursor to Bathurst Inlet Mining Corporation acquired the property andcarried out prospecting, geological mapping and geophysics. The first drillingwas completed in 1969.1969 Norsemines and Atlin-Yukon made discoveries of significant mineralization onadjacent ground. These companies and Bathurst Inlet Mining Corporationamalgamated as Bathurst Norsemines Limited.1970 - 1975 Cominco Limited optioned the property and carried out airborne and groundgeophysical surveys, geochemical sampling, geological mapping and diamonddrilling. In 1970 an airborne electro-magnetic survey delineated a 30 km strikelength of prospective stratigraphy. Subsequent groundwork led to the discoveryof the East Cleaver, Boot Lake and Finger Lake Zones.1986 Bathurst Norsemines was consolidated and renamed Etruscan Enterprise Ltd.1993-1994 Etruscan became operator of the Property, and carried out airborne and groundgeophysical surveying as well as drilling. Emphasis was placed upon the Mainand East Cleaver Zones.1997 to 1998 Etruscan carried out a digital data compilation of geological, geophysical andJanuary 2008 Hackett River Project – Project Proposal Sabina Silver CorporationReport Version B.1 2–5 Rescan Environmental Services Ltd. (Proj. #833-2)