Golden Heart Gold Mine Project Environmental Impact Statement

Golden Heart Gold Mine Project

Environmental Impact Statement

Report Prepared for

Golden Band Resources Inc.

Report No: GBN 11-03

Report Prepared by

ASKI Resource Management & Environmental Services Inc.

September 2011

Golden Heart Gold Mine Project

Environmental Impact Statement

Report Prepared for:

Golden Band Resources Inc. 100 – 701 Cynthia Street

Saskatoon, SK Canada S7L 6B7

Report Prepared by:

ASKI Resource Management and Environmental Services Inc.

Peter Ballantyne Cree Nation Cottage #13 - 2300 10th Ave W.

P.O. Box 278 Prince Albert, SK S6V 5R5

September 2011

ASKI Golden Heart Gold Mine Project EIS Page i

DGH/ASKI September 2011

Executive Summary

Golden Band Resources Inc. (Golden Band ) is Saskatchewan‟s newest gold producer and the

company owns several gold deposits in the La Ronge Gold Belt in northern Saskatchewan,

including the Golden Heart deposit. The Golden Heart deposit is located approximately 180

kilometres (km) north of the community of La Ronge and approximately 10 km north-northeast of

the Northern Settlement of Brabant Lake.

In September 2010, Golden Band submitted a Project Proposal to the Ministry of Environment for a

gold mining project referred to as the proposed Golden Heart Gold Mine Project (Golden Heart

Project). The project will involve the construction, operation and decommissioning of the Golden

Heart gold mine and the transport and milling of the resulting ore at the existing and currently

approved and operating Jolu gold mill, as a continuation of the La Ronge Gold Project.

Golden Band‟s La Ronge Gold Project consists of the currently operating Roy Lloyd underground

mine and the planned EP open pit mine, the former Komis underground mine, which will be subject

to an exploration and resource delineation program in 2011, the operating Jolu Gold mill and

JAG/Mallard TMF as well a number of other mineral properties/deposits in various stages of

exploration. The La Ronge Gold Project was subject to environmental impact assessment in 2008

and 2009 and the development of the Golden Heart mine, as a continuation of the project, is being

proposed to ensure an uninterrupted supply of ore to the Jolu mill.

The Golden Heart Project consists of:

The upgrade of approximately 13 km of an existing exploration trail including appropriate

stream crossings at 4 separate locations;

The development and operation of a gold mine which includes an open pit in year one and an

underground mine originating from the lower level of the pit for three successive years (total

4 years of mining);

The surface storage of approximately 1.1 million tonnes of mine rock;

The construction and operation of various support facilities;

The decommissioning and reclamation of the mine and all associated infrastructure,

including the access roads;

Conducting „transition phase monitoring‟ as required; and, eventually,

Transferring the decommissioned and reclaimed property to the institutional control of the

Province of Saskatchewan.

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No camp facilities will be constructed or operated at the Golden Heart site. All employees at the

Golden Heart site will be housed in local communities and transported to and from the site for

individual shifts. Temporary trailers will be installed on the Golden Heart site to provide office space

and mine dry facilities.

The currently approved and operating camp for the Jolu mill site, which houses the people employed

at the Jolu mill, will not be expanded as a result of the Golden Heart project.

Approximately 460,000 tonnes of ore will be mined during the estimated four year life of the Golden

Heart mine. All ore will be hauled by licensed highway trucks to the currently operating Jolu mill for

milling and doré gold production. The tailings generated from the milling will be deposited in the

existing, approved JAG /Mallard tailings management facilities (JAG/Mallard TMF) which has

sufficient capacity to effectively manage the volume of tailings generated by the Golden Heart

deposit.

The milling of Golden Heart ores at the Jolu mill will require no alterations to the Jolu mill, no

additional infrastructure at the Jolu mill site, and will result in no measureable increase in

environmental impacts at that site. As demonstrated within the Golden Heart Environmental Impact

Statement, based on the impact assessment conducted, the proposed Golden Heart Gold Mine Project

will have a negligible and temporary impact on the Valued Ecosystem Components identified and all

impacts can be successfully mitigated.

The methods proposed to facilitate the various activities associated with the project all have a proven

track record of successfully minimizing the impact at other mines and mills of a similar nature in

northern Saskatchewan. In addition, sites of a similar nature in the same region of the province have

been successfully operated, decommissioned and reclaimed with temporary and limited negative

impact to the environment. Golden Band will implement a comprehensive monitoring program once

approval to proceed is received and will respond effectively if that monitoring were to demonstrate

unexpected results. This, combined with an effective regulatory oversight of the entire operation

will serve to further reduce the potential of negative incremental environmental impacts resulting

from the proposed project.

If project approval is granted Golden Band will make a submission which outlines the proposed

environmental monitoring at the Golden Heart site and will include, but not necessarily limited to:

Proposed water quality sampling station locations;

Proposed frequency of sample collection at each station;

Proposed suite of analytes for analysis at each station; and

Any additional monitoring deemed appropriate or specified by the appropriate regulatory

agencies.

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As part of the environmental assessment process, Golden Band conducted extensive public

consultations in the communities of La Ronge, Brabant Lake, Missinipe, Grandmother‟s Bay, Sucker

River, Stanley Mission and Southend in January and February, 2011. In each community (La

Ronge, Brabant Lake, Missinipe, Grandmother‟s Bay, Sucker River and Stanley Mission,

representatives of Golden Band provided a PowerPoint presentation on the proposed Golden Heart

Gold Mine Project, ore haul and the Jolu Mill and responded to any and all questions posed. The

length of each meeting ranged depending on the number of attendees and the level of detail in the

questions and responses. The meetings ranged from approximately 2 hours in duration to one which

lasted in excess of 3 hours. In each case, the representatives of Golden Band answered every

question posed by attendees. Discussions during each meeting were recorded and proceeds are

provided in Appendix VI of the Golden Heart Gold Mine Project Environmental Impact Statement,

as well as on-line at: http://www.goldenbandresources.com/Enviro.html.

Impacts on traditional pursuits such as hunting, fishing, trapping and the collection of medicinal

plants is judged to be negligible in large part because of the relatively small area of disturbance

posed by the development and the fact that the ore body has been the subject of exploration and

exploration drilling on numerous occasions since 1948. Access to the site will be on a trail that has

existed for a number of years and minimal additional disturbance is required in order to commission

the roads to handle the type of traffic proposed.

Assuming a continued supply of ore, the La Ronge Gold Project is expected to continue to employ

approximately 100 full time employees although the total at any one time will vary depending on

activities and the schedule of mining. Of that total, it is expected that the Golden Heart mine will

allow the continued employment of approximately 25 people at the mining operation with the other

75 people employed at the Jolu mill site and other satellite mines within the La Ronge Gold Project.

It is Golden Band‟s intention to continue to secure a significant portion of the workforce, goods, and

services from within the Northern Administration District of Saskatchewan.

The La Ronge Gold Project annual payroll is estimated to be between $25,000,000 and $30,000,000

and will require the expenditure of approximately $150,000,000 in the purchase of goods and

services.

Golden Band has both a legal and a moral responsibility to decommission, cleanup and reclaim all

sites related to the La Ronge Project including all roads and borrow areas at the cessation of

activities and fully intends to do so in the manner prescribed by the appropriate regulatory authority.

Past experience in the region (e.g. Contact Lake Gold Mine) proves that the site can be

decommissioned to a condition that will allow for the unrestricted access and use similar to that

which the sites were subject to before development. As a result, the disturbance to traditional land

use at the Golden Heart site must be considered temporary – lasting a maximum of 6 years in total (4

years of operation & 2 years of decommissioning and reclamation).

By way of this submission, Golden Band is requesting environmental assessment approval of the

proposed Golden Heart Gold Mine Project. Should such approval be granted, Golden Band intends

https://mail.ca.srk.com/owa/redir.aspx?C=67bb2630e2fc42afbc8c457eb189c7cb&URL=http%3a%2f%2fwww.goldenbandresources.com%2fEnviro.html

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to apply to the Ministry of Environment and other government ministries and agencies for the

necessary approvals, permits and authorities required allowing the construction, operation and

eventual decommissioning of the Golden Heart Gold Mine. Golden Band intends to undertake all

activities in a manner that meets or exceeds all applicable legislation and regulations.

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Table of Contents

Executive Summary .................................................................................................................... i

1 Reason for Submission ............................................................................................... 1 1.1 Introduction ....................................................................................................................... 1 1.2 Purpose of Submission ...................................................................................................... 1 1.3 The Proposed Project ........................................................................................................ 2

1.3.1 Scope of Project ...................................................................................................................... 2 1.3.2 Project Location ....................................................................................................................... 3

1.4 Project Operations ............................................................................................................. 4 1.4.1 Project Operator ...................................................................................................................... 4 1.4.2 Site Management .................................................................................................................... 5

1.5 Need for the Project ........................................................................................................... 5 1.5.1 Project Schedule ..................................................................................................................... 5

2 Project Specific Guidelines (PSG) for an Environmental Impact Assessment of the Proposed Golden Heart Gold Mine (GHGM) Project ........................................... 7 2.1 Project Specific Guidelines ................................................................................................ 7 2.2 Cross-Reference Project Specific Guidelines versus Environmental Impact Statement ..... 7

3 Summary of Historic Exploration & Milling Activities ............................................. 15 3.1 Golden Heart Site ............................................................................................................ 15 3.2 Jolu Mill Site .................................................................................................................... 16

4 Current Site Condition ............................................................................................... 19 4.1 Golden Heart Site ............................................................................................................ 19 4.2 Jolu Site .......................................................................................................................... 19

4.2.1 Mill Site .................................................................................................................................. 19 4.2.2 Star Camp Site ...................................................................................................................... 19

5 Existing Environment ................................................................................................ 20 5.1 Introduction ..................................................................................................................... 20 5.2 Climate ............................................................................................................................ 20

5.2.1 Temperature .......................................................................................................................... 20 5.2.2 Precipitation ........................................................................................................................... 21 5.2.3 Evaporation ........................................................................................................................... 21 5.2.4 Wind Speed and Direction ..................................................................................................... 21 5.2.5 Rainstorm Frequency ............................................................................................................ 21

5.3 Air Quality ........................................................................................................................ 22 5.4 Regional Geology ............................................................................................................ 23 5.5 Regional Physiography .................................................................................................... 23 5.6 Regional Hydrology ......................................................................................................... 24

5.6.1 Runoff Volume ....................................................................................................................... 24 5.6.2 Peak Flow Potential ............................................................................................................... 24

5.7 Golden Heart Site ............................................................................................................ 25 5.7.1 Introduction ............................................................................................................................ 25 5.7.2 Surface Hydrology and Lake Morphology ............................................................................. 25 5.7.3 Aquatic Environment ............................................................................................................. 26 5.7.4 Terrestrial Environment ......................................................................................................... 32

5.8 Jolu Site .......................................................................................................................... 38 5.8.1 Jolu Site Surface Hydrology .................................................................................................. 38

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5.8.2 Jolu Site - Aquatic Environment ............................................................................................ 38 5.8.3 Jolu Site - Terrestrial Environment ..................................................................................... 42

5.9 Project Regional Socio-Economic Environment ............................................................... 43 5.9.1 Population Trends ................................................................................................................. 44 5.9.2 Education............................................................................................................................... 45 5.9.3 Housing ................................................................................................................................. 46 5.9.4 Health Care ........................................................................................................................... 46 5.9.5 Employment........................................................................................................................... 47 5.9.6 Labour Force Participation .................................................................................................... 48 5.9.7 Mineral Industry ..................................................................................................................... 49 5.9.8 Local Infrastructure ................................................................................................................ 52 5.9.9 La Ronge Gold Project Surface Lease Agreement ............................................................... 52

6 The Project ................................................................................................................. 54 6.1 Introduction ..................................................................................................................... 54 6.2 Land Tenure .................................................................................................................... 55

6.2.1 Introduction ............................................................................................................................ 55 6.2.2 Jolu Site ................................................................................................................................. 56 6.2.3 Star Lake Camp .................................................................................................................... 56 6.2.4 Golden Heart Site .................................................................................................................. 57

6.3 Mining – Golden Heart Deposit ........................................................................................ 57 6.3.1 Local Geology ....................................................................................................................... 57 6.3.2 Resource Estimates (National Instrument 43-101) ............................................................... 59 6.3.3 Mining Options Considered ................................................................................................... 60 6.3.4 Mining Method ....................................................................................................................... 60 6.3.5 Mining Rates.......................................................................................................................... 64 6.3.6 Use of Explosives near Fish Bearing Waters ........................................................................ 64 6.3.7 Residual Explosives .............................................................................................................. 65 6.3.8 Mine Rock Characterization .................................................................................................. 66 6.3.9 Mine Rock Management & Monitoring .................................................................................. 73 6.3.10 Ore Characterization ............................................................................................................. 73 6.3.11 Ore Stockpiling and Transportation ....................................................................................... 74 6.3.12 Mine Site Water Management ............................................................................................... 74 6.3.13 Mine Site Air Emissions ......................................................................................................... 78 6.3.14 Mine Site Hazardous Substances & Waste Dangerous Goods ............................................ 79 6.3.15 Mine Site Infrastructure ......................................................................................................... 80

6.4 Golden Heart Gold Mine Support Facilities and Services................................................. 82 6.4.1 Administration ........................................................................................................................ 82 6.4.2 Road Access ......................................................................................................................... 82 6.4.3 Ore Transportation ................................................................................................................ 84 6.4.4 Personnel Transportation ...................................................................................................... 84 6.4.5 General Waste Management ................................................................................................ 84 6.4.6 Spill Response & Management ............................................................................................. 85 6.4.7 Labour Force & Economics ................................................................................................... 86 6.4.8 Recreational Fishing .............................................................................................................. 87

6.5 Milling – Jolu Site ............................................................................................................ 87 6.5.1 Introduction ............................................................................................................................ 87 6.5.2 Milling – Jolu Site .................................................................................................................. 87 6.5.3 Golden Heart Tailings Characterization ................................................................................ 93 6.5.4 Tailings Management – Jolu Site .......................................................................................... 97 6.5.5 Jolu Site Water Management ................................................................................................ 99 6.5.6 Treated Water Discharge .................................................................................................... 100 6.5.7 Jolu Site Air Emissions ........................................................................................................ 100

6.6 Schedule of Activities .................................................................................................... 101

7 Worker Health and Safety ........................................................................................ 102

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7.1 Introduction ................................................................................................................... 102 7.2 Occupational Health and Safety .................................................................................... 102

7.2.1 New Employee’s Orientation ............................................................................................... 102 7.2.2 Safety Manuals .................................................................................................................... 103 7.2.3 Hearing Conservation .......................................................................................................... 103 7.2.4 Personal Protective Equipment ........................................................................................... 103 7.2.5 Lock Out Procedures ........................................................................................................... 103 7.2.6 Mobile Equipment ................................................................................................................ 103 7.2.7 Fire Protection ..................................................................................................................... 103 7.2.8 Work Place Hazardous Materials Information System ........................................................ 104 7.2.9 First Aid ............................................................................................................................... 104 7.2.10 Emergency Vehicle/Communications ................................................................................. 104 7.2.11 Occupational Health and Safety Committee ....................................................................... 104 7.2.12 Mining .................................................................................................................................. 105 7.2.13 Milling Activities ................................................................................................................... 105 7.2.14 Upset Conditions ................................................................................................................. 105 7.2.15 On-site Medical ................................................................................................................... 105 7.2.16 Emergency Response ......................................................................................................... 106

8 Decommissioning .................................................................................................... 107 8.1.1 Existing La Ronge Gold Project Conceptual Decommissioning and Reclamation ............. 107

8.2 Conceptual Decommissioning Plan ............................................................................... 107 8.2.1 Golden Heart Mine .............................................................................................................. 108 8.2.2 Transition Phase Monitoring ................................................................................................ 112

8.3 Decommissioning Financial Surety ................................................................................ 113 8.3.1 Decommissioning Cost Estimate......................................................................................... 113 8.3.2 Financial Assurance Instrument .......................................................................................... 113

8.4 Custodial Transfer of Decommissioned and Reclaimed Sites ........................................ 113

9 Operational Regulatory Oversight .......................................................................... 115 9.1 Applicable Acts & Regulations ....................................................................................... 115 9.2 Permitting ...................................................................................................................... 116

10 Inspections and Monitoring .................................................................................... 117 10.1 Environmental Inspections ............................................................................................. 117

10.1.1 Visual Inspections ............................................................................................................... 117 10.2 Monitoring Program ....................................................................................................... 119

10.2.1 Environmental ..................................................................................................................... 119 10.2.2 Socio-Economic .................................................................................................................. 119

10.3 Reporting ....................................................................................................................... 119 10.3.1 Environmental Report .......................................................................................................... 119 10.3.2 Annual Environmental Report ............................................................................................. 120 10.3.3 Socio-Economic Reporting .................................................................................................. 120

11 Malfunctions or Accidents ...................................................................................... 121 11.1 Introduction ................................................................................................................... 121

11.1.1 Hazardous Substances & Waste Dangerous Goods Storage ............................................ 121 11.2 Leakage from Mine Water Ponds .................................................................................. 122 11.3 Water Pipe Line Spills ................................................................................................... 122 11.4 Open Pit Slope Failure .................................................................................................. 122 11.5 Mine Flooding ................................................................................................................ 122 11.6 Release of Contaminants from Ore & Mine Rock Storage Areas ................................... 123 11.7 Ore Haulage .................................................................................................................. 123 11.8 Transportation Accident ................................................................................................. 124

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11.9 Fire Suppression ........................................................................................................... 124 11.10 General Emergency Response ........................................................................... 125

12 Potential Impacts and Mitigation ............................................................................ 126 12.1 Assessment Scope and Methodology ............................................................................ 126 12.2 Project Options/Alternatives .......................................................................................... 126 12.3 Assessment Boundaries ................................................................................................ 127

12.3.1 Spatial Boundaries .............................................................................................................. 127 12.3.2 Temporal Boundaries .......................................................................................................... 128

12.4 Overview of General Assessment Methodology ............................................................ 130 12.5 Ranking of Potential Environmental Impacts.................................................................. 132 12.6 Identification of Potential Impacts .................................................................................. 132 12.7 Water Quality & Quantity ............................................................................................... 136 12.8 Terrestrial Environment ................................................................................................. 137 12.9 Air Quality ...................................................................................................................... 138

12.9.1 Construction, Operations and Decommissioning ................................................................ 138 12.9.2 Ore Haul – Golden Heart to Jolu Mill .................................................................................. 139 12.9.3 Conclusion ........................................................................................................................... 140

12.10 Migratory Birds .................................................................................................... 140 12.11 Navigable Waters ................................................................................................ 141 12.12 Mitigation of Potential Impacts ............................................................................ 142

12.12.1 General Mitigation ........................................................................................................... 142 12.12.2 Rare Plant Mitigation....................................................................................................... 143 12.12.3 Woodland Caribou Mitigation .......................................................................................... 144 12.12.4 Noise Mitigation .............................................................................................................. 147 12.12.5 Air Quality Mitigation ....................................................................................................... 148 12.12.6 Species at Risk ............................................................................................................... 149 12.12.7 Heritage Resource Mitigation ......................................................................................... 150 12.12.8 Traffic on Highway No. 102 ............................................................................................ 150

12.13 Significance of Identified Environmental Impacts & Mitigation ............................. 150 12.13.1 Valued Ecosystem Components ..................................................................................... 151

12.14 Potential Impacts on Traditional Land Use & Traditional Pursuits ........................ 151 12.14.1 Traditional Land Use ....................................................................................................... 151 12.14.2 Impacts to Traditional Pursuits & Land Use.................................................................... 153 12.14.3 Trapper Compensation ................................................................................................... 153

12.15 Potential Socio-Economic Impacts ...................................................................... 153

13 Impacts of the Environment on the Project ........................................................... 156 13.1 Introduction ................................................................................................................... 156 13.2 Forest Fire ..................................................................................................................... 156 13.3 Drought Conditions ........................................................................................................ 157 13.4 Major Precipitation Event ............................................................................................... 157 13.5 GHG Emissions ............................................................................................................. 157 13.6 Seismic Event ................................................................................................................ 158 13.7 Global Warming ............................................................................................................. 158

14 Cumulative Impacts ................................................................................................. 159 14.1 Introduction ................................................................................................................... 159 14.2 Highway Traffic .............................................................................................................. 160 14.3 Air Emissions ................................................................................................................. 160 14.4 Other Active Mines in the Area ...................................................................................... 160 14.5 Other Industrial Activities ............................................................................................... 161 14.6 Land Disturbances......................................................................................................... 161

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14.7 Historical Environmental Impacts ................................................................................... 162

15 Follow-Up Programs ................................................................................................ 164 15.1 Environmental Monitoring .............................................................................................. 164

15.1.1 Operational Monitoring ........................................................................................................ 164 15.1.2 Metal Mining Effluent Regulations ....................................................................................... 165 15.1.3 Post–Decommissioning Monitoring ..................................................................................... 166

15.2 Wildlife & Woodland Caribou Management/Protection Plan ........................................... 166 15.2.1 Caribou Management/Protection Plan ................................................................................ 166 15.2.2 Wildlife Sightings ................................................................................................................. 166

15.3 Trapper Compensation .................................................................................................. 167 15.4 Historical Impacts of Mercury ........................................................................................ 168 15.5 Socio-Economic Follow-up Program .............................................................................. 168

16 EIA Public Consultations ........................................................................................ 170 16.1 Introduction ................................................................................................................... 170 16.2 Guiding Principles ......................................................................................................... 170 16.3 Identification of Stakeholders ......................................................................................... 171 16.4 EIA Public Consultations ............................................................................................... 172 16.5 Response to Issues in Consultations ............................................................................. 173 16.6 Continued Consultations ............................................................................................... 177

17 Commitment Register & Conclusions .................................................................... 177 17.1 Commitment Register .................................................................................................... 177 17.2 Conclusion .................................................................................................................... 179

18 References ................................................................................................................ 180

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List of Tables

Table 1: Cross Reference - Golden Heart Mine PSGs to Environmental Impact Statement ............ 8 Table 2: Rainstorm Potential ........................................................................................................ 22 Table 3: Runoff Potential .............................................................................................................. 24 Table 4: Stream Crossing Flows ................................................................................................... 30 Table 5: Uncapped Resource (With Grade Cut Values of 4, 5, 6 g/t Gold) ................................... 59 Table 6: Capped Resource (With Grade Cut Values of 4, 5, 6 g/t Gold) ....................................... 60 Table 7: Golden Heart Underground Production Equipment ......................................................... 63 Table 8: Proposed Production Schedule ...................................................................................... 64 Table 9: Golden Heart Mine Rock Strong Acid Digest ICP-OEM/Me Elemental Analysis .............. 68 Table 10: Golden Heart Mine Rock Net Acid Generation Testing ................................................. 69 Table 11: Golden Heart Mine Rock Modified Acid Base Accounting ............................................. 70 Table 12: Golden Heart Mine Rock Week 25 Humidity Cell Leachate Analysis ............................ 72 Table 13: Predicted Golden Heart Discharge Water Quality ......................................................... 78 Table 14: Tailings Decant Leach Solution Analysis ...................................................................... 94 Table 15: Tailings Acid Base Accounting (ABA) ........................................................................... 95 Table 16: Tailings Net Acid Generation (NAG) ............................................................................. 95 Table 17: Tailings Production Associated with the La Ronge Gold Project ................................... 97 Table 18: Predicted Treated Effluent Quality .............................................................................. 100 Table 19: Daily Environmental Inspections – Mine Site .............................................................. 117 Table 20: Daily Environmental Inspections – Jolu Mill Site ......................................................... 118 Table 21: Potential Impacts and Mitigation Measures ................................................................. 133 Table 22: Minor Navigable Waters Characterization ................................................................... 141 Table 23: Summary of Community Comments & Responses ..................................................... 174 Table 24: Golden Heart Project Commitment Register ............................................................... 178

List of Figures

Figure 1: La Ronge Gold Project – Golden Heart Deposit Location Map Figure 2: Golden Band Resources Inc. Claim Boundaries Figure 3: Golden Heart Deposit Access Road and Fresh Water Intake Figure 4: Jolu Site Plan Figure 5: Vegetation Cover Type Figure 6: Rare Plan Occurrences Figure 7: Woodland Caribou Habitat Suitability Assessment Figure 8: Moose Habitat Suitability Assessment Figure 9: Heritage Resource Occurrence – Golden Heart Site Figure 10: Heritage Resource Occurrence - Waddy Lake Shore Figure 11: Golden Heart Site Plan Figure 12: Generalized Jolu Mill Circuit Figure 13: Golden Heart Area Flows

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List of Appendices

Appendix I: Project-Specific Guidelines for an Environmental Impact Assessment, Golden Heart Gold Mine, 180 km North of La Ronge, Saskatchewan (March, 2011)

Appendix II: Golden Heart Gold Deposit Environmental Baseline Investigations, Revised Final

Report. (Canada North Environmental Services, February, 2011) Appendix III: Heritage Resource Impact Assessment of the Golden Band Resources Proposed

Golden Heart Mine, Western Heritage, September 2010 Appendix IV: Hydrogeological Assessment, Golden Heart Deposit near Brabant Lake,

Saskatchewan, Clifton Associates, January, 2011 Appendix V: Mine Rock, Ore and Tailings Characterization Data Appendix VI: Golden Band Resources Inc. Occupational Health & Safety and Environmental

Policies Appendix VII: Air Emissions Assessment Appendix VIII: Consultations Summary

Appendix IX: SEARP Technical Review Comments & Responses

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1 Reason for Submission

1.1 Introduction

Golden Band Resources Inc. (Golden Band or GBR) is Saskatchewan‟s newest gold producer, with

company headquarters in Saskatoon, Saskatchewan. The company owns gold deposits in the La

Ronge Gold Belt in northern Saskatchewan, including the Golden Heart deposit which is the subject

of this submission.

1.2 Purpose of Submission

In Saskatchewan, the proponent of a project that is considered to be a “development” pursuant to

Section 2(d) of the provincial Environmental Assessment Act is required to conduct an environmental

impact assessment (EIA) of the proposed project and prepare and submit an Environmental Impact

Statement (EIS) to Saskatchewan‟s Minister of Environment.

In September 2010, Golden Band submitted a Project Proposal to the Ministry of Environment for a

gold mining project referred to as the proposed Golden Heart Gold Mine Project (Golden Heart

Project). The project will involve the construction, operation and decommissioning of the Golden

Heart gold mine located in the La Ronge gold belt, approximately 180 kilometres (km) northeast of

the community of La Ronge, Saskatchewan, and the transport and milling of the resulting ore at the

existing and currently operating Jolu gold mill (Figure 1).

The Environmental Assessment Branch (EAB) of the Ministry of Environment coordinated a

technical review of the Project Proposal by the relevant provincial and federal ministries and

agencies. In November 2010, Golden Band was informed by Saskatchewan‟s Ministry of

Environment that the Golden Heart Mine Project requires an environmental assessment under The

Environmental Assessment Act (the Act). Based on this determination, Golden Band is required to

conduct an environmental impact assessment and prepare an Environmental Impact Statement (EIS)

for review. Once the EIS is submitted, the Ministry of Environment will prepare Technical Review

Comments. The public will then have an opportunity to comment on both the EIS and the Technical

Review Comments prior to the Minister‟s decision on whether or not to allow the project to proceed,

or to proceed with conditions.

As required, Golden Band has conducted an environmental impact assessment and this document,

the Golden Heart Mine Project Environmental Impact Statement has been prepared and is

respectfully submitted by Golden Band in response to the requirements specified by Saskatchewan‟s

Ministry of Environment in the Project-Specific Guidelines for an Environmental Impact

Assessment, Golden Heart Gold Mine, 180 km North of La Ronge, Saskatchewan, (March, 2011)

(Appendix I).




proposed Golden Heart Gold Mine Project. Should such approval be granted, Golden Band intends

to apply to the Ministry of Environment and other government ministries and agencies for the

necessary approvals, permits and authorities required allowing the construction, operation and

eventual decommissioning of the Golden Heart Gold Mine. Golden Band intends to undertake all

activities in a manner that meets or exceeds all applicable legislation and regulations.

1.3 The Proposed Project

1.3.1 Scope of Project

The Golden Heart Gold Mine Project consists of:

The upgrade of approximately 13 km of an existing exploration trail including appropriate

stream crossings at 4 separate locations;

The development and operation of a gold mine which includes an open pit in year one and an

underground mine originating from the lower level of the pit for three successive years (total

4 years of mining);

The surface storage of approximately 1.1 million tonnes of mine rock;

The construction and operation of various support facilities including:

o An administration/office/mine dry facility;

o A maintenance shop;

o A freshwater intake;

o A temporary ore storage area;

o Mine water settling ponds;

o Explosive storage magazines;

o Electric generating capacity;

o Fuel (diesel, gasoline and propane) storage facilities; and,

o Laydown areas;

The transport of gold ore to the existing and approved Jolu mill as part of the company‟s La

Ronge Gold Project;

The milling of the ore at the Jolu mill and the deposition of the tailings generated in the

already approved JAG/Mallard tailings management facility (JAG/Mallard TMF);

The decommissioning and reclamation of the mine, mill, TMF and all associated

infrastructure including the access roads;

Conducting „transition phase monitoring‟ as required; and, eventually,

Transferring the decommissioned and reclaimed properties to the institutional control of the

Province of Saskatchewan.

No camp facilities will be constructed or operated at the Golden Heart site. All employees at the

Golden Heart site will be housed in local communities and transported to and from the site for



individual shifts. Temporary trailers will be installed on the Golden Heart site to provide office space

and mine dry facilities.

The currently approved and operating camp for the Jolu mill site, which houses people employed at

the Jolu mill, will not be expanded as a result of the Golden Heart project.

Approximately 460,000 tonnes of ore will be mined during the estimated four year life of the Golden

Heart mine. All ore will be hauled by licensed highway trucks to the currently operating Jolu mill for

milling and doré gold production. The tailings generated from the milling will be deposited in the

existing, approved JAG /Mallard tailings management facilities (JAG/Mallard TMF) which has

sufficient capacity to effectively manage the volume of tailings generated by the Golden Heart

deposit.

The milling of Golden Heart ores at the Jolu mill will not require alterations to the Jolu mill, nor

additional infrastructure at the Jolu mill site, and with no measureable increase in environmental

impacts at that site other than a potentially small increase in the total volume of tailings stored at the

site. The potential additional volume of tailings deposited within the JAG/Mallard TMF will not

affect the ability of Golden Band to effectively operate or decommission the TMF or other

infrastructure at the Jolu site.

1.3.2 Project Location

La Ronge Gold Project

Golden Band‟s La Ronge Gold Project consists of the currently operating underground mine at the

Roy Lloyd mine site (Bingo Deposit) and the planned EP open pit mine, the former Komis

underground mine, which will be subject to an exploration and resource delineation program in

2011, the operating Jolu Gold mill and JAG/Mallard TMF as well a number of other mineral

properties/deposits in various stages of exploration. The entire La Ronge Gold Project is located

within the boundaries of the Missinipi Integrated Land Use Plan (Draft). The project is located

within the self-declared traditional territory of the Lac La Ronge Indian Band. Golden Band has also

been informed by the Peter Ballantyne Cree Nation that the area has also historically been used by its

members.

Golden Heart Deposit

The Golden Heart property is located in the La Ronge Gold Belt, at approximately 180 kilometres

(km) north of the community of La Ronge and approximately 10 km north-northeast of the Northern

Settlement of Brabant Lake. The property consists of one claim (Claim S-106203), 100% owned by

Golden Band which encompasses 477 ha (Figure 2).

The deposit is located 4 km northeast of the narrows between Upper and Lower Waddy lakes (at

approximately UTM coordinates 575614 E and 6231000N (Zone 13, NAD 83 datum) (or 560 13‟03”



north latitude and 1030 47‟13” east longitude; NTS 64 D4), and immediately northwest of Weedy

Pond (Figure 3).

Jolu Gold Mill and Tailings Management Facilities

The Jolu mill is located at approximate UTM coordinates 544800 E, 6206700 N (Zone 13, NAD 83

datum), approximately 135 km northeast of the community of La Ronge on mineral claim S-108203

which is in good standing.

Golden Band maintains a valid Approval to Operate Pollutant Control Facilities for the operation of

the La Ronge Gold Project Jolu mill and Star Lake Camp (Approval No. PO10-171) issued January

11, 2011 by Saskatchewan Ministry of Environment.

Star Lake Camp

The approved Star Lake camp which houses Jolu mill site employees is also located on mineral

claim S-108203 and currently holds a Ministry of Environment issued Temporary Work Camp

Permit which will be converted to an annual permit in 2011.

1.4 Project Operations

1.4.1 Project Operator

Golden Band will be the project operator.

Golden Band is a Saskatchewan based resource company whose major focus is the long-term,

systematic gold exploration and development of its La Ronge gold belt properties in Northern

Saskatchewan.

Golden Band‟s Head Office is located at:

Suite 100 -701 Cynthia Street

Saskatoon, Saskatchewan

S7L 6B7

Tel: (306) 955-0787

Directors and Officers of the corporation are:

o Ronald K. Netolitzky, M.Sc. Geology Executive Chairman & Director

o Klaus Lehnert-Thiel, P.Eng., P.Geo., Ph.D Director

o A. Robson Garden, QC Director

o Robert G. Ingram, C.A. Director

o Stuart Diamond, JD, MBA Director

o John Tosney, M.Sc., P.Eng. Director

o Archibald Nesbitt, LL. B, B.Comm. Director



o Rodney Orr, P. Geo., MBA Vice President of Corporate Development

o Gary Haywood, P.Eng. Vice President Operations & COO

o Mark Thiel, CA Vice President of Finance and

Administration, CFO & Corporate

Secretary

Golden Band is traded on the TSX Venture Exchange as GBN: TSXV.

1.4.2 Site Management

Management of all activities at both the Golden Heart mine and the Jolu mill site will be the direct

responsibility of employees of Golden Band although a number of specific activities may be

contracted out. These are likely to include mining, the transport of the ore from the mine site to the

central Jolu mill and the maintenance and operation of the Star Lake camp and other housing

requirements of the project.

1.5 Need for the Project

Since 1994, Golden Band has assembled, through staking and strategic acquisition, a land package of

more than 75,000 hectares, including twelve known gold deposits, four former producing mines, and

a licensed gold mill.

In late 2010, after receiving environmental assessment approval and all required regulatory permits

and approvals for the La Ronge Gold Project, the company commenced gold production mining at

the Roy Lloyd mine (formerly called the Bingo mine) and the milling of the ore at the Jolu mill site.

Ore from the Golden Heart Gold Mine is required for the continued operation of the Jolu mill, to

maintain or expand current employment opportunities and to continue the La Ronge Gold Project as

a viable and contributing gold producer in northern Saskatchewan.

1.5.1 Project Schedule

The conceptual development schedule for the proposed Golden Heart Project has been developed in

order to ensure an uninterrupted supply of ore to the Jolu mill and is provided below.



The timeline for the development of the Golden Heart Project is dependent on the status of the other

La Ronge Gold Project mines as the Golden Heart deposit will be mined when the supply from other

approved La Ronge Gold Project mines is reduced or discontinued. The results of ongoing

exploration and resource delineation programs will determine when the Golden Heart mine is

brought into production.



2 Project Specific Guidelines (PSG) for an Environmental Impact Assessment of the Proposed Golden Heart Gold Mine (GHGM) Project

2.1 Project Specific Guidelines

In November 2010, Golden Band was informed by the Ministry of Environment that the Golden

Heart Mine Project would require an environmental assessment under The Environmental

Assessment Act (the Act). Based on this determination, Golden Band was required to conduct an

environmental impact assessment and prepare an Environmental Impact Statement for technical and

public review. On January 13, 2011, the Ministry of Environment issued Draft Project-Specific

Guidelines for an Environmental Impact Assessment, Golden Heart Gold Mine, 180 km North of La

Ronge, Saskatchewan, for public review and comment. In March 2011, after receiving and

considering public comments on the draft project specific guidelines, the Ministry of Environment

issued the final Project-Specific Guidelines for an Environmental Impact Assessment, Golden Heart

Gold Mine, 180 km North of La Ronge, Saskatchewan.

Appendix I provides a copy of the Project-Specific Guidelines for an Environmental Impact

Assessment, Golden Heart Gold Mine, 180 km North of La Ronge, Saskatchewan (March, 2011)

(PSGs) issued by the Environmental Assessment Branch of the Ministry of Environment.

2.2 Cross-Reference Project Specific Guidelines versus Environmental Impact Statement

Table 1 provides a summary of the requirements specified in the PSGs and provides a reference as to

where the requirement is addressed within this document.



Table 1: Cross Reference - Golden Heart Mine PSGs to Environmental Impact Statement

GOLDEN HEART GOLD MINE

PROJECT-SPECIFIC GUIDELINE REQUIREMENT

PSG Page Reference

EIS Section

Golden Band is required, pursuant to section 9 of the Act, to conduct an environmental impact assessment (EIA) and prepare and submit to the Minister of Environment an environmental impact statement (EIS) for technical and public review.

1 1.2

Duty to Consult

The Ministry requests Golden Band to make direct contact with local First Nations and Métis communities in the area or those whose Treaty or Aboriginal rights may be impacted. Documentation of this contact and correspondence is highly recommended. Documentation of this contact and correspondence is highly recommended.

3 12.14 &

Appendix VIII

Any issues raised by the public, First Nations or Métis communities must be presented in the EIS along with ways in which these will be addressed.

3 12.14 &

Appendix VIII

Golden Band should be sure to discuss if they are aware of any First Nations or Aboriginal Rights concerns related to the proposed development.

3 12.14 &

15.3

A description should be provided regarding the traditional use and values associated with the lands and resources that may be impacted by the project, as determined through discussions and consultation.

3 12.14

The information of relevance to the First Nations and Métis communities must always include preliminary assessments of the likely economic, social, cultural, along with the environmental impacts, including potential risks; in the language of the people, and conveyed in a culturally appropriate way.

3 12.14,

15.3, 15.4, & 17.1

To the extent possible, mitigation proposed within the EIS may provide accommodation for any rights that may be impacted by the proposed project.

4 15.3 &

15.4

EIS Content

The EIS is a statement of Golden Band’s environmental conclusions and commitments regarding the development and, as such, must be explicitly endorsed by Golden Band.

4 1.2

Executive Summary

The executive summary must be easily understood and printed in black and white so that reproductions can be easily made. A glossary of technical terms is also useful.

4/5 Ex. Sum.

The proponent of the project must provide the rationale as to why any issues identified in the guidelines were not adequately addressed in the EIS and highlight key impacts that were identified for more intensive investigation.

5 Ex. Sum.

When submitting the EIS, two hard copies and two digital copies (PDF) are required. Golden Band should confirm the number of digital and paper copies and the distribution method with the EA Branch prior to submission.

5 Completed

An executive summary of the EIS is required. It should briefly summarize the EIS under the following topic areas:

purpose of carrying out the development;

description of the preferred option and alternative means for development;

the benefits and costs of the preferred option and the alternatives;

potential for short and/or long-term environmental effects of the development, including the potential for spills/malfunctions/accidents;

potential cumulative environmental effects that are likely to result from the development in combination with other local/adjacent projects (past, present and future) and activities in the short and long term;

significance of the identified potential environmental impacts;

mitigation measures including their environmental outcome and technical and economic feasibility;

5/6

Ex. Sum.



decommissioning and reclamation;

monitoring programs for the development at all phases; and,

involvement activities and comments received along with Golden Band’s responses.

To enhance public involvement, the executive summary should be written in clear language and avoid the use of technical terms and jargon and be available under separate cover.

Ex. Sum.

Project Description

The EIS needs to provide detailed descriptions of all project phases: operation, maintenance, decommissioning and abandonment.

6 6 & 8

Generally, the EIS should include the following information:

project ownership;

project location, including map(s) showing exact location of proposed development and alternative sites/routes mapped at scales appropriate to effects and with identifiable geographic and environmental features, surface and ground water resources, current land use and nearby communities, residences, and industries;

status and map of current and proposed surface lease(s) and active mineral disposition relative to the project (use NAD 1983 CSRS 98 datum, Zone 13N for maps);

the purpose and need for the project;

description of proposed project (including project life, dimensions, plans);

alternative means of accomplishing the project;

construction materials and power supply requirements;

sourcing of construction/operation supplies and servicing;

project requirements for water, mill reagents, hazardous materials, etc.;

anticipated schedule for all phases;

estimated personnel, skill requirements and ongoing employment opportunities for local communities, First Nations and Métis people;

occupational health and safety considerations;

emergency measures/contingency plans and procedures;

a description of traditional land use, traditional knowledge, and current use of the study area by First Nations and Métis people;

technical issues and new technologies specific to the project;

a description of the potentially affected environment;

contaminant releases and their impact on the environment; and,

technically and economically feasible monitoring and mitigation measures

6 1, 6, 7, 8, 11, 12, 13

& 15

A description of currently existing facilities and procedures should be included to provide a context for discussion of the potential project-specific and cumulative impacts of the proposed expansion on environmental conditions. This description should contain an assessment of the performance of the current facilities/operations and include relevant data.

6 6

Mining

A description of the open-pit and underground mining procedures that will be used to mine the GHGM project ore deposit, including:

estimates of ore reserves, average and range of ore grades for the deposit;

geochemical characterization of ores identifying potential metal contaminants;

proposed ore production and mine life for the deposit;

mining scenarios and waste rock disposal options (above ground/below ground disposal);

water management issues at the deposit:

o water requirements for mining, if needed, and proposed sources of required water, or

7/8

6.3 & Appendix

V



o mine dewatering procedures, if required, and anticipated quantity and quality of produced mine waters;

residual explosives and potential environmental effects;

on-site works at the deposit, storage/treatment of any dewatering waters, sedimentation ponds and effluent treatment systems;

estimates of inflow amounts from underground operations in years two (2) thru four (4) as part of the overall site water balance estimates

mine infrastructure and locations at the deposit, including waste management facilities.

7/8

6.3 & 6.4

Waste Rock Management

A comprehensive assessment of the potential environmental impacts of waste rock disposal options will be required, including:

characterization of all non-mineralized, mineralized and acid-generating waste material produced during mining, including results of analyses of the chemical and physical characteristics, e.g., metal contaminants, leachate data, potential for oxidation;

proposed options for storage of all types of waste rock, including design and location of all waste rock piles;

potential use of waste rock for construction or other uses;

potential for groundwater contamination by waste rock disposal;

waste-rock contaminant source terms and leachate concentrations used in contaminant transport assessment;

settling ponds for the management of ore pad/waste rock pile waters that do not meet Saskatchewan Surface Water Quality Objectives;

incorporation of results of any ongoing test work related to waste rock/special waste rock characterization into modelling analysis; and

quality assurance and monitoring programs for the disposal of waste rock.

7/8

6.3.8, 6.3.9, 6.3.12

& Appendix

V

Water balances should be provided for facilities holding water from waste rock disposal sites. 8 6.3.12

Milling

If milling modifications are required, the EIS should identify water requirements for the mill; proposed sources for mill water; and, mill effluent treatment and discharge.

8 6.5

The EIS should identify if the project would require changes to the existing management programs for solid, liquid and gaseous wastes at Jolu mill.

8 6.5

The EIS should include detailed information regarding the anticipated quality and quantity for produced wastes and the potential environmental impacts associated with these wastes. The proposed management programs for all wastes should be described.

8 6.5

If modifications to the TMF are required, the EIS should include detailed information regarding the selection process and proposed method for the safe and effective storage of tailings generated by the milling of the GHGM project ores at the Jolu mill.

8 6.5.4

Any changes related to environmental protection procedures during operations, water balance and containment of potential contaminants in the tailings disposal system following reclamation and decommissioning should be described.

8 6.5.4

The EIS should demonstrate that the project would not lead to contaminants and loadings in aquatic receiving systems in excess of the system’s assimilative capacity. The EIS should identify where contaminant levels would meet Saskatchewan Surface Water Quality Objectives and Canadian Water Quality Guidelines downstream from the facility and provide an evaluation of any environmental impacts.

8 6.5.5 & 6.5.6

Any changes identified to the operations or infrastructure at the Jolu site that would be necessary to accommodate the mining of the GHGM project ore, milling and waste management operations should be described and the potential effects on the environment assessed.

8/9 6.5

Objectives/Costs and Benefits

The EIS should clearly outline the need for the project and describe the associated benefits in 9 1.2, 6.4.7



contrast to any potential environmental, social or economic costs as they may impact overall operations, the industry, community, First Nations, Métis people or the public.

& 12.15

Project Options/Alternatives

The EIS should discuss, in detail, the criteria (environmental, engineering and economic) used by Golden Band to evaluate alternative means, locations and/or designs for the project and justify the preferred option on environmental considerations.

9 12.2

Existing Environment

Describe the existing environment of the project area in sufficient detail to enable an understanding of how the current environmental conditions might be impacted (positively or negatively) by the project and any alternatives.

9 5

Golden Band should ensure that relevant data is collected in a format that can interface with the SKCDC. As well as being included in the EIS, these data sets should be forwarded directly to Saskatchewan Ministry of Environment. The proponent should also contact the SKCDC for rare species information.

9 5 &

Appendix II

The EIS should provide climatic, meteorological and air quality information, including dust, for the operational area of the project.

9 5.2

The EIS should contain a description of the geology and hydrogeology of the operational area of the project sufficient to discuss the implications of the activities associated with the project.

10 5.4,5.6 &

6.3

Groundwater information, including flow rates, quality and results of any groundwater contaminant transport modelling and model sensitivity analyses, should be provided to evaluate any potential effects of the project on surrounding aquifers and on surface waters.

10

6.3, 6.3.12 &

Appendix IV

The EIS should identify whether any groundwater modeling was conducted for prior mining development activities in the area and whether predictions based on this modeling were verified by operational monitoring data.

10 6.3 &

Appendix IV

The EIS should discuss the surface hydrology and water quality of the operational area of the project and include data on watershed areas, drainage patterns, flow rates and surface water quality in any watersheds potentially affected by the project.

10 5.6

All potential noise-sensitive receptors (e.g., wildlife) and their locations relative to the project area should be identified. Indicate the distance of the project to nearby sensitive receptors, preferably including a map.

10 5.6 & 12.12

Relevant information on aquatic and terrestrial ecology that potentially may be affected by the proposed development should be included in the EIS.

10 5 &

Appendix II

The proposal addressed relevant information related to any potential effects of the proposed GHGM project on aquatic and terrestrial ecology, and should be included in the EIS, including:

hydrology, bathymetry and limnology of any potentially affected waters adjacent to project operations and infrastructure;

numbers and important population characteristics of any potentially affected fish species e.g., sensitive habitats, and the possible effects on aquatic resources in these waters;

numbers and characteristics of any potentially affected wildlife species e.g., woodland caribou, moose, bear, aquatic and riparian furbearers, avifauna, sensitive habitats, resident and migrant populations and species with commercial and/or subsistence values;

plant or animal species considered rare, endangered or threatened, (refer to Committee on the Status of Endangered Wildlife in Canada (COSEWIC) - www.cosewic.gc.ca); and

any potential impacts to benthic invertebrates, fish, wildlife and plants based on contaminant transport modeling results.

10/11 12

In particular, the EIS should address:

A Caribou Management/Protection Plan, such as the one for the La Ronge Gold Project, which addresses highly suitable browsing and foraging habitat for woodland caribou that may be impacted by this project;

Details regarding the calculation of habitat assessment values;

11

11

12.12 & 15.2

12.12 & 15.2



Details regarding the timing/planning to minimize impacts to caribou.

Information collected on Species at Risk and their habitat must be submitted to the SKCDC. 11 5 &

Appendix II

Golden Band must demonstrate that wildlife surveys optimized detection ability, that they were conducted at the appropriate time (day, year, and under suitable weather conditions) and location (relative to the ecological footprint of the development), and that sufficient effort was devoted to obtaining comprehensive coverage of the potentially impacted area.

11 5 &

Appendix II

The EIS should include wildlife information maps of the vegetation/wildlife habitats for the wildlife species of concern that are found in the study area.

11 5 &

Appendix II

Saskatchewan Tourism, Parks, Culture and Sport, Heritage Resources Branch requires a Heritage Resource Impact Assessment (HRIA) prior to development, as it was identified as having potential to impact heritage sites due to its proximity to major water bodies/courses

11 5 &

Appendix III

Socio-Economic and Land Use Issues

The EIS needs to include a description of the existing land uses, community characteristics (residents, communities, First Nations or Métis people) and infrastructure within the socio-economic study area.

11 6.2 & 12.14

The EIS should identify the current and historical use of lands and resources within the study area for traditional purposes by First Nations and Metis peoples (i.e. non-commercial uses including hunting, trapping, fishing and other traditional use activities).

12 12.14

A description should be provided regarding the traditional use and values associated with the lands and resources that may be impacted by the gold mine project, as determined through discussions and consultations with the First Nations and the Métis Locals.

12 12.14

Occupational Health & Safety

The EIS should provide a brief description of existing occupational health and safety programs in place and identify whether the development (e.g., influx of workers during construction phase) would require changes to these programs. The EIS should identify the proposed programs for worker health and safety, monitoring, and training modules for environmental instrumentation, protection and awareness.

12 7

Involvement Activities

The EIS should include a concise description of the scale and extent of Golden Band’s public consultation activities and describe the program for involvement with residents regarding the gold mine project, particularly the residents from First Nations, Métis, and nearby communities potentially affected by the project. Any issues or concerns raised during the involvement programs should be documented in the EIS and their significance evaluated.

12/13 16 &

Appendix VIII

Conceptual Decommissioning and Reclamation Plan

The EIS should provide a conceptual decommissioning plan for all elements of the Golden Heart project. The conceptual plan should include:

decommissioning objectives;

alternative procedures for decommissioning site facilities;

proposed procedures for the decommissioning, reclamation and abandonment of all project elements;

identification of acceptable post-operational land use options for the project site;

environmental mitigation and reclamation measures e.g., contouring, waste stabilization and re-vegetation;

potential post-decommissioning contaminant loadings and impacts to the local drainage system and to groundwater from all the decommissioned project facilities;

post-operational landforms and drainage systems; and,

proposed contingency measures.

13 8

The conceptual plan should reflect project impact assessment, mitigation and monitoring experience. The plan should identify, to the extent possible:

environmental impacts which can be mitigated by post-decommissioning procedures;

impacts which cannot be mitigated - these impacts constituting irretrievable

13 8 &

12.12.3



environmental losses accruing to the province and to future generations; and

any potential opportunities for environmental enhancement.

Procedures to ensure that resources are available to implement the plan on mine closure, or at an unscheduled time, should be discussed.

13 8.3

Reclamation planning concepts that should be included in the EIS are described in Ministry’s draft document, "Guidelines for Decommissioning, Cleanup and Reclamation of Northern Mine Sites" (Saskatchewan Environment, March, 1995).

14 8.2

Abandonment and Institutional Control

The EIS should include proposed criteria for abandoning the project and associated infrastructure and commitments for the monitoring of decommissioning success prior to final abandonment.

14 8.4

Impact Assessment & Mitigation

Information provided in the EIS that is related to potential impacts should be complete and detailed. Impact severity is analyzed as the change from baseline conditions, i.e., the difference between environmental conditions expected if the development were not to proceed and those expected as a consequence of it.

15 12

Specific to the proposed development, the following potential impacts and/or mitigation measures must be addressed in the EIS:

potential impacts on the local and regional hydrogeology, such as any implications of mine dewatering;

potential metal contaminant species and mass flux loadings to the groundwater regime;

re-establishment of levels following completion of operations;

evaluation of the potential impacts on surface waters and local drainage patterns by the project e.g., effects from the mine, site development and road development, including effect of abstraction of water for industrial uses;

proposed mitigation measures for any potential impacts to ground and surface waters;

potential impacts from mine rock management;

contingency plans if contaminant migration predictions are not met;

potential effects on any use of lands, waters and resources for traditional purposes by aboriginal persons, e.g., hunting and trapping, should be documented, including potential effects on human health and on the quality of any country foods that may be harvested;

monitoring programs for potentially-affected surface and ground waters;

potential effects of malfunctions/accidents/spills and contingency plans for mitigation and cleanup;

potential environmental impacts of the transportation of waste rock and ore, specifically the

o projected increase in truck traffic on Highway #102; o potential implications for fisheries, migratory birds, wildlife and wildlife

habitat, specifically the woodland caribou; and, o potential contribution to greenhouse gas emissions by components of the

project and potential impacts on air quality.

15/16

10, 11, 12 &

Appendix VII

Regional/Cumulative Impacts

The EIS should assess and discuss whether existing environmental conditions, including other developments in the area, might influence the development or its potential impacts.

16 14

Monitoring

The EIS should identify the need for, and requirements of, any follow-up assessment or monitoring programs for the project, particularly those related to management of wastes generated by the mining and milling of the GHGM project ores.

16 10

Ancillary Developments

The EIS needs to provide a description of ancillary developments anticipated as a result of the proposed development. Each ancillary development must be described and analyzed in sufficient detail for the reader of the EIS to determine the environmental and social significance of the proposed development and the major social, economic and environmental implications as related to the development described in this EIS.

17 10



Commitments Register

The EIS must contain a summary table of the avoidance, mitigation and monitoring commitments made by the proponent throughout the EIS that will be updated with any terms and conditions put forward by the Minister should the Minister approve the development.

17 17.1

Summary

The EIS must provide a concise, complete statement of the anticipated net environmental costs and benefits of the development in both the short and long terms. The discussion must also include intangible costs and benefits that cannot be expressed in economic terms. The EIS must provide enough information to allow the province and the public to determine the gains and losses (retrievable and irretrievable) which may accrue from the proposed development, should it be allowed to proceed.

21 17.2

After submitting the draft Golden Heart Gold Mine Project Environmental Impact Statement for

technical, review comments were received from the Assessment Branch of the Saskatchewan

Ministry of Environment. Responses to the technical review comments were prepared and are

provided in Appendix IX and, where appropriate, changes where incorporated in this Environmental

Impact Statement.



3 Summary of Historic Exploration & Milling Activities

3.1 Golden Heart Site

The Golden Heart deposit area is the host to three areas of known gold mineralization; the Golden

Heart deposit (previously known as the Weedy Lake B and C Zones), the A Zone, and the D Zone.

The Golden Heart deposit and the A Zone were first discovered in 1948 by Cominco prospectors.

Since then, the various zones have undergone several exploration campaigns, most notably by

Golden Rule Resources between 1982 and 1997.

The results of the various exploration activities culminated in the definition of the Golden Heart

deposit, which has been defined by 145 core holes. The exploration activities to December 2009 are

summarized as:

1937 - Waddy Lake district mapped by the Geological Survey of Canada at a scale of 1”= 2

miles, published in 1938 at a scale of 1”= 4 miles as Map 528A.

1948-1955 – Gold discovered in Weedy Lake area by Cominco and the Keewatin claims

were staked. Surface work consisted of prospecting, trenching and 9 drill holes which led to

the definition of the A, B, and C Zones.

1949 – Preliminary geological investigations of the area conducted by Saskatchewan

Department of Mineral Resources with mapping completed at 1”= ½ mile.

1962 – Hydra Exploration Ltd. prospected the area.

1979 – Staked by Golden Rules Resources Inc. as CBS 6432.

1980 – Golden Rule carried out 14.9 line-km of line cutting, ground magnetometer and VLF-

EM. A, B and C zones were relocated, stripped and re-sampled, soil and lithogeochemical

sampling and reconnaissance geological mapping.

1981 – Golden Rule completed 28 km of line cutting, VLF-EM and magnetometer surveys,

additional trenching, chip sampling, and detailed mapping of A, B, and C zones, soil and

lithogeochemical sampling and detailed prospecting in the vicinity of B Zone.

1982 – Golden Rule carried out additional line cutting, detailed geological mapping of A and

B zones, detailed geological mapping, trenching and stripping northeast of B zone;

additional hand trenching and detailed channel sampling of A, B and C zones and 13

diamond drill holes testing the A, B and C zones.

1982-1984 – Golden Rule completed 42 core holes totalling 4,688 m.

1983 – Golden Rule carried out in-fill Wacker basal till sampling, 17 core holes on B zone.

CBS was converted to ML 5332.



1984 – 12 drill holes totalling 1,349 m completed on A, B and C zones.

1987 – Tyler Resources Inc. optioned the property and, among other activities, conducted

prospecting, mapping and trenching; 12 diamond drill holes (2,000 m) on the B and D zones.

An additional drill program was carried out by Golden Rule Resources and Tyler resources

which totalled 46 core holes (10, 844 m).

1988 – An addition 19 diamond drill holes totalling 4,530 m on A zone and 17 holes on B

zone.

1989 – Golden Rule completed 15 core holes (4,314 m) and conducted in-fill drilling at

intermediate depths.

1995-1996 – Golden Rule conducted two additional drill campaigns (12 holes: 6,014.5 m

and 56 diamond drill holes: 6,139 m) testing the Golden Heart deposit at depth.

2007 – Golden Band Resources Inc. conducted Soil Gas Hydrocarbon (SGH) sampling.

2008 – Golden Band completed four diamond drill holes (804.06 m)

In total, approximately 145 exploration drill holes totalling 27,690.4 m were drilled on the Golden

Heart deposit between 1948 and 2008. Golden Band also undertook a resource delineation program

in January 2011 which totalled 1,120 m to refine mining plans for the deposit.

3.2 Jolu Mill Site

The Jolu gold mill and JAG/Mallard TMF are located on a site that has been previously disturbed by

gold mining and milling activities, with an existing mill and the historical deposition of gold mill

tailings.

The Mallard component of the JAG/Mallard TMF was originally a small headwater lake and has

been used as a tailings management facility receiving gold mill tailings by three operating companies

throughout three different mining operations over the past 38 years. These include:

Decade Mine 1973-1975

Jolu Mine 1987-1991

Komis Mine 1995-1997

In October 2008, Golden Band submitted an Environmental Impact Statement for the Jolu Central

Mill Gold Project which proposed the mining of gold deposits at the Bingo, Komis, EP, Decade and

Jolu satellite mines, the construction of the JAG TMF, the expansion of the storage capacity and

operation of the Mallard TMF, re-commissioning the centrally located Jolu mill and the construction

of other facilities associated with milling operations.

After conducting a technical and public review of the Jolu Central Mill Gold Project Environmental

Impact Statement (Golden Band 2009), Ministerial Approval to proceed with the project pursuant to



the Saskatchewan Environmental Assessment Act was received on May 29, 2009. Since that time,

Golden Band has acquired the necessary permits and approvals to proceed with the construction of

the JAG TMF and other infrastructure required to commence operations at the Jolu mill site and

various satellite mines. The entire project is now referred to as the La Ronge Gold Project.

Golden Band currently maintains a valid Approval to Operate Pollutant Control Facilities for the

operation of the La Ronge Gold Project (Approval No. PO10-171) issued January 11, 2011 by

Saskatchewan Ministry of Environment.

The Jolu mill site is the centre of operations supporting the satellite mines with office space and

personnel, warehousing, purchasing, engineering, and other support functions. The satellite mines

are all located within an area of the La Ronge Gold Belt adjacent to, and west of, Highway No. 102,

between the Churchill River and immediately north of the Northern Settlement of Brabant Lake. Ore

from the individual ore bodies within the operational area is trucked to the centrally located Jolu mill

by haul roads and Highway No. 102.

During the initial one to two years of operation, tailings generated by the milling of the gold ores in

the Jolu mill will be placed in a new, above-ground tailings management facility, the Jolu Above-

Ground Tailings Management Facility (JAG TMF). Use of the JAG TMF will continue until the

Mallard TMF receives its Schedule 2 designation under the federal Metal Mining Effluent

Regulations, can be re-commissioned, the storage capacity increased and the facility operated as a

tailings management facility. The JAG TMF is expected to have sufficient tailings storage capacity

to accommodate the deposition of tailings from gold milling operations until the federal process

requirements for the Mallard TMF are met.

The Federal Environmental Assessment Screening Report on the use of the Jolu mill‟s Mallard

Tailings Management Facility for tailings disposal was approved by Fisheries and Oceans Canada

(DFO) on June 4, 2010. Written comments were received from one private citizen, one municipality,

and eight non-government organizations and numerous oral submissions were made by the public

during the public meetings. All submissions from Aboriginal and non-Aboriginal communities

potentially affected by the project indicated strong support for the project. No comments indicating

opposition to the project were received.

The final step in the federal regulatory process is the publication of the Mallard TMF in Schedule 2

of Metal Mining Effluent Regulations (MMER) and the establishment of the financial assurance for

the habitat compensation project required by Fisheries and Oceans Canada. On February 19, 2011

proposed Regulations Amending the Metal Mining Effluent Regulations (MMER) were published in

the Canada Gazette, Part I, for a 30-day public review period. The proposed amendment would

designate the Mallard TMF as a tailings impoundment area by adding the TMF to Schedule 2 of the

regulations. The proposed Amendments and the associated Regulatory Impact Analysis Statement in

Canada Gazette can be found at the following website address: http://www.canadagazette.gc.ca/rp-

pr/p1/2011/2011-02-19/html/reg2-eng.html.

http://www.canadagazette.gc.ca/rp-pr/p1/2011/2011-02-19/html/reg2-eng.html

http://www.canadagazette.gc.ca/rp-pr/p1/2011/2011-02-19/html/reg2-eng.html



Golden Band had been advised that Environment Canada was aiming for publication in Canada

Gazette Part 2, the final step in the scheduling process, in late spring of 2011, however the federal

election has impacted this timeline.

Until the federal approval process has been completed Golden Band will use the provincially-

approved JAG TMF for the deposition of mill tailings.



4 Current Site Condition


An access trail currently exists between the Golden Heart site and Highway No. 102. The trail travels

approximately 13 km southwest from the site, ending at Highway No. 102, approximately 12 km

north of the Northern Settlement of Brabant Lake (Figure 3). Currently, the trail can be travelled by

4x4 truck but upgrades will be required once approval to proceed with the project is received.

The Golden Heart deposit was first discovered in 1948 by Cominco prospectors. Since then, the area

has undergone several campaigns of exploration. In addition to significant line cutting and other

geological surveys, a total of 145 holes (totalling 27,690.4 m) have been drilled on the Golden Heart

property between 1948 and 2008, with 1,120 m of addition drilling being conducted by Golden Band

in 2011.

As a result of this exploration activity, the Golden Heart site has been previously disturbed with the

removal of vegetation to allow for exploration drilling and the operation of an exploration camp and

core storage area.

4.2 Jolu Site

4.2.1 Mill Site

Access to the Jolu mill site is by a road that travels approximately 12.5 km east from the site ending

at Highway No. 102 approximately 45 kilometres southwest of the Northern Settlement of Brabant

Lake and approximately 49 road kilometres northeast of the Northern Settlement of Missinipe.

The site itself consists primarily of the existing mill, tailings management facility and associated

infrastructure, ore storage facility, the closed Jolu and Decade mines, and the remnants of a mine

rock pile (Figure 4). The mine rock pile was used in the summer of 2010 as a source of material for

the construction of the JAG TMF.


the Jolu Mill site and Star Lake Camp (Approval No. PO10-171) issued January 11, 2011 by

Saskatchewan Ministry of Environment. As required, Golden Band has and continues to conduct all

monitoring, maintenance and reporting to satisfy the conditions of that approval.

4.2.2 Star Camp Site

A 49-person camp has been constructed approximately 2 kilometres southeast of the Jolu mill on the

site of the former Star Lake Gold Project camp. The camp provides sleeping and eating

accommodations for Jolu site personnel.



5 Existing Environment

5.1 Introduction

The Golden Heart project is located within the Sisipuk Plain Landscape Area of the Churchill River

Upland Ecoregion of the Boreal Shield Ecozone. The Churchill River Upland Ecoregion is located

along the southern edge of the Precambrian Shield in north central Saskatchewan. It is the largest

ecoregion in the province, occupying 17% of the total area of Saskatchewan. It borders the

MidBoreal Upland and MidBoreal Lowland to the south, and the Athabasca Plain and Selwyn Lake

Upland to the north. The Precambrian bedrock is covered by a thin layer of discontinuous glacial

deposits due to the uneven and chaotic topography. Local relief can vary by as much as 90 m. Hills

range from 550 m in a central highland to 300 m in the southeast around Amisk Lake, and to 275 m

in the northwest around Lake Athabasca.

As a key component in preparing the Jolu Central Mill Gold Project Environmental Impact

Statement (Golden Band 2009), Golden Band retained Canada North Environmental Services

(CanNorth) to prepare an environmental evaluation of the terrestrial and aquatic resources in the

vicinity of the satellite mines and the Jolu mill. Field surveys were completed in 2004, 2006, 2007

and 2009 by CanNorth.

CanNorth was also retained to prepare an environmental assessment of the aquatic and terrestrial

resources in the Golden Heart study area (GSA) in 2009 and 2010. The aquatic study area includes

Weedy Pond, Weedy Creek, Weedy Bay, Waddy Lake, and four stream crossings along a 4x4 trail

used to access the Golden Heart deposit. In addition, data from two reference water bodies in the

Greater Waddy Lake Study Area (WSA) were included for comparative purposes. The terrestrial

study area included the WSA (of which the GSA is included). Appendix II provides the results of the

detailed investigations conducted within the GSA.

5.2 Climate

Long-term climate records are available from Environment Canada for meteorological stations

located in La Ronge, Saskatchewan (approximately 200 km southwest of the proposed project area)

and Lynn Lake, Manitoba (approximately 200 km northeast of the Project area). Detailed climate

records are included in Appendix II.

5.2.1 Temperature

The annual average temperature in the project area is approximately –2°C. Monthly average

temperature values vary considerably, with average temperature values maintained above 0°C for the

months of May through September, near 0°C for the months of April and October, and below

freezing for the months of November through March. July is the warmest month with an average

temperature of 16.6°C, while January is the coldest month with an average temperature of –22.7°C.



5.2.2 Precipitation

Average annual precipitation is the area is 481.4 mm. Rainfall dominates the precipitation during the

months of May through September, contributing 69% of the average annual precipitation. The

remaining 31% falls as rain or snow during the months of October through April, with the majority

of precipitation falling as snow during the colder months of November through March.

Snow accumulations during the months of mid-October to mid-April contribute to spring runoff in

late-April to May. Conversely, the contribution of precipitation occurring as summer rainfall

provides a substantial portion of the annual surface flows during the summer months. Monthly

precipitation values reported by Environment Canada for La Ronge (1967 to 2006) and Lynn Lake

(1970 to 2006) are also provided in Appendix II (Tables 2.1-3 and 2.1-4, respectively).

5.2.3 Evaporation

Evaporation refers to the calculated lake evaporation occurring from a small, natural, open

waterbody having negligible heat storage and very little heat transfer at its bottom and sides. Data

from Environment Canada were used to calculate the potential for evaporation losses from open

water surfaces at various weather stations, including La Ronge and Lynn Lake. Appendix II, Tables

2.1-5 and 2.1-6 provide the gross evaporation estimates at these locations. Appendix II, Table 2.1-7

and 2.1-8 presents the net evaporation values which were calculated by subtracting gross evaporation

from precipitation.

Annual gross evaporation values range from 394 to 577 mm for the two locations, with an average of

468 mm. Evaporation primarily occurs from May to October, with the majority of loss occurring in

June through September.

Average annual gross evaporation values are comparable to average annual precipitation values,

indicating that during a typical year, an open water surface will not lose water or gain water from the

atmosphere.

5.2.4 Wind Speed and Direction

Wind speed and direction at La Ronge and Lynn Lake meteorological stations are presented in

Appendix II.

The prevailing winds at La Ronge and Lynn Lake are from the west (W) with wind speeds averaging

11.3 and 12.2 km/h, respectively. The maximum hourly wind speeds range from 46 to 65 km/hr. and

50 to 70 km/hr., respectively (Environment Canada 2010).

5.2.5 Rainstorm Frequency

Table 2 summarizes the potential for heavy rainstorms in the project area, based on Environment

Canada„s Rainfall Frequency Atlas for Canada (Hogg and Carr 1985).



Table 2: Rainstorm Potential

Probability In Any One Year 24 Hours 6 Hours 1 Hour

1:2 34.7 24.4 14.7

1:5 47.1 33.2 21.8

1:10 55.3 39.1 26.4

1:25 65.6 46.4 32.4

1:50 73.3 51.9 36.7

1:100 80.9 57.4 41.1

Statistical PMP 282.0 193.0 143.0

Rational PMP 510.0 n/a n/a

The Probable Maximum Precipitation (PMP) estimates in the above table referred to as the

“statistical” PMP are derived from an equation described by Hogg and Carr (1985), which was

developed to define the outside limit of rainstorms that have occurred. Meteorologists also define a

“rational” 24 hour PMP that is calculated from the physical processes that cause extreme rain. By

maximizing the physical inputs, the maximum possible rainstorm can be calculated. Environment

Canada completed a study of Point Probable Maximum Precipitation for the Prairie Provinces

(Hopkinson 1999), which defines the potential for 24 hour rainstorms. As indicated in the table, the

rational PMP for this project area is 510 mm.

5.3 Air Quality

Air quality data have been made available from previous Environmental Impact Statements for

developments in the La Ronge Gold Project area. At the Star Lake Gold mine site, air quality

monitoring consisted of dustfall and sulphation monitoring at four sites (SMDC 1985). Dustfall

values were reported in the range of 0.12 to 2.13 mg·cm-2

per 30 days: sulphate values ranged from

0.33 to 1.9 mg·cm-2

per 30 days. The values for the same air quality parameters collected at the

Corona Jolu project (Royex, 1987) were lower. Dustfall values at the Corona Jolu ranged from 0.1 to

0.95 mg·cm-2

per 30 days; sulphate vales ranged from 0.002 to 0.15 mg·cm-2

per 30 days. The

Ministry of Environment Air Quality Standard for dustfall and sulphation are 2.0 mg·cm-2

per 30

days and 30 mg·cm-2

per 30 days respectively.

Wet acid deposition data are available from Atmospheric Environment Services from the Canadian

Network for Sampling Precipitation (CANSAP). CANSAP determined the wet and dry deposition

rates of sulphur as sulphate and nitrogen as nitrate. Based on these measurements, the wet deposition

rates of sulphur as sulphate and nitrogen as nitrate in 1978 were 1.8 and 0.5 kg·ha-1

·year-1

respectively (CANSAP 1977-1979 as cited by Liaw and Atton 1981) which can still be considered at

or near global background values. Shewchuk (1983) found that wet deposition rates of sulphur to be

approximately 1 kg· ha-1

·year-1

. As noted by Shewchuk, these values are amongst the lowest in

world.

The pH of the rain during the CANSAP study period varied between 4.8 and 5.8 (CANSAP 1977-

1979 as cited by Liaw and Atton 1981) and was 5.6 in 1980 (Liaw and Atton 1981). These values

indicate mild acidification in the rainwater which is most likely attributed to poor buffering capacity



of the rainwater itself and likely does not reflect the anthropogenic source of acid emissions (Liaw

and Atton 1981). Studies have been conducted by the Saskatchewan Research Council (Shewchuk

1983) to determine the chemistry of the snow pack in the north in order to assess the potential impact

of natural and anthropogenic acid deposition. Snow was collected during a field program in March

1983 from the surface of small lakes (less than one square kilometre in area) in a network of 27 sites.

In the Precambrian Shield region of Saskatchewan, the sulphate concentrations varied between 0.53

and 0.89 mg/L; the nitrogen as nitrate varied between 0.08 and 0.18 mg/L; the conductivity between

4.8 and 8.0 μmhos/cm, and the mean pH from 4.77 to 5.46.

5.4 Regional Geology

The La Ronge Gold Project properties are all located within the La Ronge Domain which occupies

the western part of the Reindeer Zone of the Trans-Hudson Orogen. The Trans-Hudson Orogen has

been described as a mid-Proterozoic collage of lithostructural belts produced during subduction

generated arc volcanism and associated syn-sedimentary basin development. The evolution of the

orogen has been attributed to the north-south convergence between the Rae-Hearne and Superior

structural provinces. A more specific description of the geology of the Golden Heart deposit is

provided in section 6.3.

5.5 Regional Physiography

The Golden Heart study area occurs within the Sisipuk Plain of the Churchill River Upland

Ecoregion of the Boreal Shield Ecozone (Acton et al. 1998; SKCDC 2002). The terrain in this

ecoregion is Precambrian Shield and is characterized by a mix of bedrock outcrops, glacial deposits,

wetlands, and lakes. Rivers and streams link many lakes to form the regional drainage pattern such

as that seen in the Churchill River system, and lakes comprise 30-40 % of the ecoregion (SKCDC

2002). Glacial deposits are thin and discontinuous (Acton et al. 1998). Local topography is uneven

and fens, bogs, and lakes occur in the depression areas (Acton et al. 1998). The climate in the area is

subarctic and is characterized by cool, short summers and very cold and long winters (Acton et al.

1998).

A mixture of coniferous forest and mixed wood forest is characteristic of the Sisipuk Plain. Stands of

black spruce (Picea mariana) and jack pine (Pinus banksiana) are not as extensive as in other

portions of the Shield. Widely distributed glaciolacustrine materials support trembling aspen

(Populus tremuloides), white birch (Betula papyrifera), balsam poplar (Populus balsamifera), jack

pine, white spruce (Picea glauca), and black spruce. Small stands of trembling aspen occur on well-

drained, south-facing slopes. On sandy glacial till areas, closed forests of black spruce and/or jack

pine occur, depending on the depth of the deposits. Jack pine also occurs on very thin soils

associated with bedrock outcrops. White birch, green alder (Alnus crispa), and willow (Salix spp.)

are scattered throughout the area. Black spruce and larch (Larix laricina) are associated with the

low-lying bog and fen peatlands (Acton et al. 1998).



Several different soil types occur in the ecoregion. Dystric and Eutric Brunisols are associated with

sandy uplands, and Gray Luvisols occur on clayey lacustrine uplands and loamy to silty fluvioglacial

deposits. On level ground and in depressional areas, Gleysolic soils are associated with clayey

sediments, whereas Mesisols and Organic Cryosols occur in shallow to deep peatlands (Environment

Canada 2003).

The study area exhibits typical Precambrian Shield terrain with moderate to gentle relief (locally

rugged with steep cliff bounded ravines and shorelines) and numerous poorly drained areas of

swamp separated by areas of rock outcrop.

5.6 Regional Hydrology

5.6.1 Runoff Volume

The runoff volume can be expressed as the unit runoff per square kilometre. Estimates of the runoff

potential based on the recorded flows of Pagato River, (a nearby representative river), which drains

similar terrain and is located approximately 100 km east of the project area, are included in Table 3.

Table 3: Runoff Potential

Probability in Any One Year Runoff Volume (dam³/km²)

1:100 Dry 68

1:50 Dry 73

1:25 Dry 80

1:10 Dry 95

1:5 Dry 111

1:2 Normal 155

1:5 Wet 203

1:10 Wet 230

1:25 Wet 260

1:50 Wet 280

1:100 Wet 300

Note: 1 dam3 is equivalent to 1,000 m

3

5.6.2 Peak Flow Potential

Resulting from the differences in timing of flows from various parts of a drainage basin, peak flow

potential is not directly related to the drainage area. In order to understand the flood potential for this

region, records from 27 stations were analyzed. It was determined that the 1:10 year daily mean

flood peak can be estimated with the following equation:

1:10 Year Peak Flow = 0.18 A0.7



Other frequencies can be estimated by applying the following ratios to the 1:10 year estimate (i.e.,

1:10 year peak flow value multiplied by the following ratios):

1:2 0.62

1:5 0.83

1:10 1.00

1:25 1.22

1:50 1.40

These estimates are based on data from large river basins and can be applied to other natural streams;

however it is not recommended that these estimates be applied to very small drainage areas such as

constructed sites. For small areas, estimates based on rainstorm potential are more appropriate.


5.7.1 Introduction

CanNorth was retained to prepare an environmental assessment of the aquatic and terrestrial

resources in the Golden Heart study area (GSA). Comprehensive baseline investigations of the

aquatic environment in the Golden Heart study area (GSA) were conducted in 2007 and 2009 and

included the four streams which will be crossed by the access road to the site. The investigations

included hydrology, limnology, and fish community investigations in both 2007 and 2009, fish

spawning in 2007 and fish and aquatic habitat investigations in 2009. Additional baseline

investigations of Weedy Pond and Weedy Creek were completed in 2010.

The following provides a summary of the existing environments within the Golden Heart study area

and the Jolu area. Appendix II contains the results of the entire GSA baseline investigations. Detailed

regional baseline as well as the detailed baseline for the Jolu mill site can be found in the Jolu

Central Mill Gold Project Environmental Impact Statement, (Golden Band 2009).

5.7.2 Surface Hydrology and Lake Morphology

Baseline hydrological information was obtained from both desktop studies and field surveys

conducted in the GSA and WSA.

Bathymetric mapping of Weedy Bay, Lower Waddy Lake and Weedy Pond was completed in 2007.

Data from reference water bodies in the WSA (Douglas (Reference) Bay and Reference Lake) were

included for comparison. Weedy Bay is located at the north end of Lower Waddy Lake and has a

maximum depth of 5.1 m and total surface area of 10.04 ha. Douglas (Reference) Bay is similar with

a maximum depth of 4.30 m and a total surface area of 9.62 ha. Weedy Pond is a shallow waterbody

with a maximum depth of 1.80 m and total surface area of 42.02 ha. Reference Lake has a maximum

depth of 12.80 m, and a total surface area of 51.48 ha.



5.7.3 Aquatic Environment

Study Area Water Bodies

Water quality and sediment quality were assessed in the GSA in 2006 and 2007 (water bodies) and

2009 (limnology at stream crossings). Water and sediment chemistry data were generally comparable

between Weedy Bay, Weedy Pond, and the reference areas (Douglas (Reference) Bay and Reference

Lake). Baseline concentrations of ions, nutrients, metals, and trace elements, were predominantly

below laboratory detection limits in the water and sediment samples. In some samples, chromium

and iron concentrations in the water exceeded guidelines. In addition, chromium, copper, nickel, and

vanadium concentrations in the sediment exceeded guidelines.

Results from the particle size analyses, suggests the water bodies in the study area were dominated

by silt/clay substrates, with the exception of Weedy Bay which was dominated by fine sand.

Phytoplankton and zooplankton communities were generally comparable between Weedy Bay,

Weedy Pond, and the two reference areas (Douglas (Reference) Bay and Reference Lake). Weedy

Pond phytoplankton communities had a lower diversity and evenness compared to the other three

water bodies examined; however, density was greatest in Weedy Pond, and taxon richness was

comparable. Phytoplankton species from all the water bodies were predominantly from the Divisions

Chlorophyta (green algae) and Bacillariophyta (diatoms). Zooplankton species from Weedy Bay,

Weedy Pond, and Douglas (Reference) Bay generally belonged to the Division Rotatoria, whereas,

Reference Lake zooplankton communities were predominantly from the Division Crustaceae. Weedy

Pond had the greatest density and richness all of water bodies, but had the lowest diversity and

evenness.

Benthic invertebrate communities were assessed in 2006 and 2007. The dominant benthic

invertebrates in Weedy Bay, Weedy Pond, and Douglas (Reference) Bay belonged to the Family

Chironomidae. In contrast, the community composition in Reference Lake was predominantly from

the Family Chaoboridae. Both families belong to the Class Insecta and are commonly known as

midges. Average density and richness values of benthic invertebrates were highest in Weedy Bay,

while evenness and diversity were greatest in Douglas (Reference) Bay.

Aquatic species occurring in lakes, ponds, and streams include: pondweed (Potamogeton sp.), bur-

reeds (Sparganium sp.), bladderworts (Utricularia sp.), yellow pond lily, quillwort (Isoetes

echinospora), milfoils (Myriophyllum sp.), arrowhead (Sagittaria cuneata), mare‟s tail (Hippuris

vulgaris), water calla (Calla palustris), lesser duckweed (Lemna minor), small yellow water-

crowfoot (Ranunculus gmelinii), and vernal waterstarwort (Callitriche palustris).

Fish community investigations were completed in 2006 and 2007 in the GSA, and the reference

waterbodies. A total of six fish species were captured: northern pike (Esox lucius), yellow perch

(Perca flavescens), lake whitefish (Coregonus clupeaformis), white sucker (Catostomus

commersoni), longnose sucker (Catostomus catostomus), and burbot (Lota lota). The greatest



diversity of fish was found in Weedy Bay where all six species were captured. Four species were

captured in Douglas (Reference) Bay (northern pike, yellow perch, lake whitefish, and white sucker),

and one species (northern pike) was captured at both Weedy Pond and Reference Lake. The most

abundant large-bodied fish species captured in Weedy Bay and Douglas (Reference) Bay was yellow

perch.

There were a variety of fish habitat types identified in the study area that potentially provide

spawning, rearing, and overwintering habitat for fish. A spring spawning survey (2007) suggested

that northern pike are utilizing selected habitats for spawning in all of the water bodies through the

capture of ripe and spent northern pike. Spawning was confirmed in certain areas by locating

northern pike eggs. A fall spawning survey conducted in Weedy Bay (2006) suggested that Lake

Whitefish were utilizing the habitat for spawning (through the capture of ripe and spent lake

whitefish), however, no eggs were located to confirm spawning locations.

Chemical analyses of northern pike flesh in each of the water bodies identified similar concentrations

of analytes. All analyte concentrations were near or below detection limits; however, the mean

concentration of analytes in some northern pike indicated notable differences between water bodies.

These differences included: mean concentrations of aluminum, arsenic, calcium, tin, and strontium

which were generally three times higher when compared to each waterbody. The mean

concentrations of mercury in the flesh of northern pike in Weedy Bay and Douglas (Reference) Bay

were high.

Saskatchewan Environment guidelines for human consumption of fish indicate consumption should

be limited when mercury concentrations are greater than 0.50 ppm (or 0.50 μg/g) (Appendix II -

Appendix F). Mean mercury concentrations in the northern pike flesh samples analysed from Weedy

Bay (0.52 ± 0.29 μg/g) and Douglas (Reference) Bay (0.58 ± 0.29 μg/g) were marginally greater than

the guideline values (Appendix II - Table 4.7-10). These results suggest that consumption of

northern pike from these bays of Waddy Lake should be limited to approximately 10 meals or 2.3 kg

(5 lbs) of fish per year.

Weedy Creek and Weedy Pond 2010 Aquatic Investigations

Additional aquatic investigations were undertaken in Weedy Creek from May 7th to 22

nd 2010 and

included an aquatic habitat assessment, as well as a fish community and spawning assessment. A

hydrological station, including a staff gauge and continuous water level recorder, was installed at

Weedy Pond in order to collect information on lake level. Limnological measurements were also

collected at the mouth of Weedy Creek during the survey.

Hydrology

A staff gauge was installed at Weedy Pond in May 2010. No staff gauge was installed in Weedy

Creek as numerous beaver dams downstream of Weedy Pond attenuate the flow of water

downstream to Weedy Bay as well as providing areas of unconfined flow, making the installation of

a staff gauge in the creek ineffective. In addition, a hydrological station was established at Weedy



Pond to monitor stage elevation on a continuous basis, using a Solinst GOLD LTTM Levelogger.

The Levelogger provides a continuous record of stage elevation data that can later be used for water

budget maintenance and planning. The Levellogger was installed on May 8th, 2010 and data were

downloaded during fieldwork scheduled in the area during the late summer or fall. A Solinst

BarologgerTM was also installed adjacent to the hydrological station at Weedy Pond in order to

accurately measure atmospheric pressure; these data will provide corrections to the raw pressure

transducer data on an ongoing basis.

Limnology

Surface limnological measurements were recorded at the hoop net station near the mouth of Weedy

Creek throughout the survey. Water temperatures ranged from 4.6ºC on May 10th to 9.4°C on May

20th . Specific conductance was low, ranging from 53 to 65 μS/cm. Dissolved oxygen was measured

at between 7.75 and 10.74 mg/L, and values for pH were consistently recorded to be near-neutral,

ranging from 7.0 to 7.5.

Aquatic Habitat Assessment

A detailed assessment of the quantity and quality of critical fish habitat in Weedy Creek was

conducted in May 2010. A number of obstacles to fish passage, mostly beaver dams and log jams,

were observed throughout the middle and upper reaches of the creek. In addition, the upper reach of

Weedy Creek was found to be largely unconfined due to a large beaver dam restricting downstream

flow out of Weedy Pond. Weedy Creek provides only marginally suitable spawning habitat for

northern pike due to its cut banks and numerous obstacles; however, evidence of spawning

utilization was found in the lower reaches of the creek. Moderately suitable spawning habitat for

yellow perch is provided by abundant overhanging tree branches and large woody debris. Due to the

prevalence of obstacles, Weedy Creek is, for the most part, not navigable.

Fish Spawning Assessment

A fish spawning assessment was also completed on Weedy Creek during May 2010 in an effort to

determine whether the area is being utilized by northern pike and/or sucker species for spawning and

rearing. During the spawning survey, a hoop net was used to capture fish migrating from Weedy

Bay, Lower Waddy Lake into Weedy Creek to spawn. All large-bodied fish were checked to

determine their sex and spawning condition. No mature northern pike were captured in the hoop net,

however, a small number of juvenile northern pike were captured. Areas of Weedy Creek were also

searched for fish eggs, which provide evidence of spawning habitat utilization of a specific area.

Northern pike eggs were located in the lower reach of Weedy Creek, indicating that this section of

the creek is utilized by this species for spawning. No suitable habitat for sucker species was located,

therefore no egg searches were completed for these species.



Fish Community Assessment

A fish community assessment of the entire reach of Weedy Creek was completed in May 2010 in

order to determine which fish species reside in the creek. Fishing methods included backpack

electrofisher and minnow trap. No fish were captured or observed in Weedy Creek during the

capture efforts.

Access Trail Stream Crossings

During the spring of 2007 and the fall of 2009 various investigations of the aquatic environments

were completed on the four streams through which the current access trail passes and over which the

access road will be required to cross.

Limnology

During the investigations, water temperatures varied from 0.6 to 2.7°C and 6.9 to 8.4°C (spring and

fall, respectively) at the four stream crossings. Dissolved oxygen concentrations were above the 6.5

mg/L CEQG, ranging between 6.8 mg/L at Stream Crossing 4 in the spring and 12.4 mg/L at Stream

Crossing 3 in the fall. In the fall of 2009, specific conductance was relatively low and constant,

ranging from 21 to 26 µS/cm. Stream Crossing 2, however, had a much lower specific conductance

measuring 11 µS/cm. During the spring of 2007, there was a greater range in specific conductance

between the stream crossings. Specific conductance ranged between 30 and 77 µS/cm. At all

streams, pH was relatively similar ranging between 5.8 and 7.0 and was constant between seasons.

Levels of pH were slightly below or within the ranges specified by CEQG (6.5 to 9) at all stream

crossings (CCME 2007).

Stream Flows

Stream velocity measurements at each of the four stream crossings along the access trail are provided

in Table 4. Stream Crossing 3 had the greatest discharge rate at 0.182 m3/s measured in October

2009 and Stream Crossing 4 had no measureable flow during both surveys. Stream Crossing 2 had

multiple steep drops along the stream and had a discharge rate of 0.001 m3/s in July 2007, and 0.006

m3/s in October 2009. Stream Crossing 1 had little flow, with no measureable flow in July 2007 and

a discharge rate of 0.014 m3/s measured in October 2009.



Table 4: Stream Crossing Flows

Stream Crossing Date Stream Discharge (m

3/sec)

1 July 2007 No Flow

October 2009 0.014

2 July 2007 0.001

October 2009 0.006

3 July 2007 0.025

October 2009 0.182

4 July 2007 No Flow

October 2009 No Flow

Spawning Surveys

Spawning surveys were also conducted at each stream crossing. A total of two northern pike eggs

were collected during the spring egg spawning survey at Stream Crossing 2. Downstream of this

crossing is an ideal northern pike spawning habitat, with vegetation lining the creek outlet.

Upstream, however, there are fish obstacles (waterfalls and large woody debris) and steep drops. No

eggs were collected at Stream Crossings 1, 3, or 4. At Stream Crossing 1, the potential for northern

pike to spawn may be unlikely due to the presence of willows and woody debris obstructing the

stream. The flow at Stream Crossing 3 is very fast and not ideal for northern pike spawning,

however, it may be suited for white sucker. Stream Crossing 4 had no flow and is a large, flooded

low lying area. Mixed forest, willows, and grasses are the dominant vegetation at this crossing.

Fish and Aquatic Habitat

Stream Crossing 1

One HS (Habitat Section) was identified within the 300 m study area of Stream Crossing 1

(Appendix II – Figure 4-7-20). The upland area was mixed harvested forest with tamarack, and

black and white spruce. The riparian zone was variable, consisting of trees, shrubs, and grasses with

a gradual slope and 70% crown closure.

The substrate was predominately organic material with a small amount of silt/clay. The cover

consisted of large woody debris and dense overhanging vegetation. The depth of the stream channel

was a maximum of 0.50 m with a width of 1.00 m. The HS was characterized as a glide habitat.

Numerous fallen trees blocked the stream channel causing log jams throughout the creek, which

could present an obstacle to fish migration further upstream.

Critical habitat was assessed for fish species that could potentially spawn within the stream,

including northern pike, yellow perch, white sucker, and Lake Whitefish. No potential spawning

habitat was identified at the stream crossing for any of the fish species assessed.



Stream Crossing 2

A total of eight HSs were identified at Stream Crossing 2 (Appendix II – Figure 4-7-21). The upland

area was consistent throughout, consisting of a mature, mixed forest. The riparian zone was also

similar, consisting of trees, shrubs, grasses, and sedges. The slope was moderate to steep, and the

banks were stable to slightly unstable in areas. A 50% crown closure was evident at all HSs with the

exception of HS 1 (20%).

The substrate was variable throughout the stream channel. HS 1 featured a combination of silt/clay

and organics, while the substrates in the remaining seven HSs consisted mostly of boulder (~50%),

with small amounts of gravel, silt/clay, cobble, and bedrock present.

All HSs featured some type of cover for fish, with the exception of HS 6. Fish cover consisted

mainly of large woody debris, rock, and overhanging vegetation. There was virtually no aquatic

vegetation in the stream channels for all eight of the HSs, with the exception of HSs 1 and 8 where

sparse patches were recorded.

The depth of the stream channel was variable, with a minimum depth of 0.35 m and a maximum

depth of 0.80 m. The width of the channel also varied, ranging from 0.30 m at HS 8 to 6.00 m at

HSs 1 and 7. HSs 2, 4, 5, and 7 were characterized as runs, while HS 1, 6, and 8 were characterized

as glides, and HS 3 as a riffle area. A number of small waterfalls and drops downstream of the road

crossing, some greater than 0.5 m in height, likely present a barrier to fish passage upstream.


including northern pike, yellow perch, white sucker, and lake whitefish. HSs 1 and 8 were assessed

as moderately (2) and marginally (1) suitable for northern pike and yellow perch, respectively. HSs

2, 3, 4, 5, and 7 were marginally suitable (1) habitat for white sucker. HS 1 was not suitable

spawning habitat for the fish species assessed.

Stream Crossing 3

A total of eight HSs were identified at Stream Crossing 3 (Appendix II – Figure 4-7-22). The upland

and riparian zones at Crossing 3 were identical to Crossing 2, however, the crown closure ranged

from 10 to 70%, with the majority of HSs rated as less than 40%.

The substrate was variable throughout the stream channel. In HSs 1, 4, and 8, the substrate consisted

mainly of silt/clay, while the substrates in HSs 2, 3, 5, and 7, were dominated by boulders (>50%).

HS 6 substrate was primarily bedrock; however, a small amount of boulders were also present.

All HSs featured some type of cover for fish. Similar to Stream Crossing 2, there was virtually no

aquatic vegetation in the stream channels. A moderate amount of overhanging vegetation and rocks

were present for cover at Stream Crossing 3.



The depth of the stream channel was variable, with a minimum depth of 0.40 m and a maximum

depth of 1.00 m. The width of the channel also varied, ranging from 4.50 m at HS 5 to 10.00 m at

HSs 3, 6, and 7. HSs 2, 3, and 7 were characterized as runs, while HSs 1, 4, and 8 were

characterized as glides, and HSs 5 and 6 were riffle areas. A waterfall just upstream of the road

crossing likely restricts fish migration past this point.


including northern pike, yellow perch, white sucker, and lake whitefish as noted previously. HS 1

was assessed as marginally (1) suitable for northern pike and yellow perch. HS 3 was marginally

suitable (1) habitat for yellow perch, white sucker, lake whitefish, and lake trout.

Stream Crossing 4

Three HSs were identified at Stream Crossing 4 (Appendix II – Figure 4-7-23). The upland area is a

mature mixed forest. The riparian zone was variable, consisting of trees, shrubs, and grasses with a

gradual slope and 60% crown closure.

The substrate was predominately organic material at HSs 2 (70%) and 3 (80%). In contrast, the

substrate at HS 1 was dominated by clay/silt (70%). The cover consisted of large woody debris and

dense overhanging vegetation. Aquatic vegetation was absent or sparse.

The depth of the stream channel ranged from 0.20 to >1.00 m; the channel was largely undefined and

widths were difficult to measure. The HS was characterized as a pool area, with the stream channel

blocked in a number of areas due to multiple log jams and beaver dams. It is likely that these

blockages prevent fish passage both upstream and downstream of the crossing. Critical habitat was

assessed for fish species that could potentially spawn within the stream, including northern pike,

yellow perch, white sucker, and Lake Whitefish. No potential spawning habitat was identified for

any fish species assessed.

5.7.4 Terrestrial Environment

Vegetation

A variety of vegetation communities are represented within the Greater Waddy Lake Study Area

(WSA). Moisture and nutrient regime are important factors in determining which species

assemblages occur (Beckingham et al. 1996). Recent burns are a dominant feature throughout much

of the WSA, however, none of the GSA had been burned in the recent past and therefore many

mature forest communities were represented. Amongst fire-impacted areas of the WSA, there are

pockets of forest within the burn areas that were not affected, and often this includes areas associated

with creeks, lakes, wet shrub lands, fens, and bogs. Burn areas are generally re-vegetating with

various combinations of jack pine, black spruce, aspen, and/or white birch. These vary from mixed

stands of jack pine-aspen-birch to stands either coniferous or deciduous dominated. Common

understory species include green alder, blueberry, bunchberry (Cornus canadensis), and fireweed



(Epilobium angustifolium). Some stands may have been coniferous before the burn (e.g., jack pine

black spruce) but are now regenerating primarily in aspen and birch. Prior to the burns, it appears

that most of the area was forested with jack pine and/or black spruce.

Mature stands of black spruce differ in their species composition depending on whether they occupy

lowland or upland topography. Upland sites are characterized by the presence of Labrador tea and a

ground cover of feather mosses. Feather mosses commonly include Schreber‟s moss, knight‟s plume,

and stair-step moss. Peat mosses dominate in wetter positions. Other common species associated

with black spruce communities include cloudberry (Rubus chamaemorus), bog cranberry (Vaccinium

vitisidaea), small cranberry, leatherleaf, woodland horsetail, bunchberry, blueberry, stiff clubmoss

(Lycopodium annotinum), and alders.

Mixed coniferous stands of jack pine and black spruce are common and are characterized by the

presence of shrubs such as green alder, blueberry, and Labrador tea. Common species of the herb

layer included bunchberry, fireweed, bog cranberry, woodland horsetail, and palmate-leaved colt‟s-

foot (Petasites frigidus var. palmatus). Ground cover is dominated by feather mosses and some

lichen (Cladina spp.). Jack pine stands are dominated by blueberry, bog cranberry, green alder,

feather moss, and lichen, with black spruce often a component.

Mixedwood stands of jack pine-aspen are dominated by green alder and feather moss. Black spruce,

Labrador tea, blueberry, twinflower (Linnaea borealis), lesser rattlesnake plantain (Goodyera

repens), stiff club-moss, and lichen were other characteristic species. A mature mixedwood stand of

black spruce-white birch is characterized by the presence of Labrador tea, marsh reed grass, green

alder, bunchberry, willow, stiff club-moss, and dewberry (Rubus pubescens).

Pure deciduous stands occur in the project area, both mature and early regeneration. Birch stands can

occur in sites of wet or dry moisture regimes and can vary greatly in their understory species. Drier

sites are characterized by the presence of blueberry, green alder, pin cherry (Prunus pensylvanica),

low-bush cranberry, and rose in the shrub layer.Bunchberry, wild sarsaparilla (Aralia nudicaulis),

tall lungwort (Mertensia paniculata), club-mosses (Lycopodium spp.), and fireweed are common in

the herb layer. Wetter sites are commonly vegetated with species such as speckled alder, marsh reed

grass, currents (Ribes sp.), dewberry, small enchanter‟s nightshade (Circaea alpina), three-leaved

Solomon‟s-seal (Maianthemum trifolium), violet (Viola sp.), bishop‟s-cap (Mitella nuda), and

woodland horsetail. Aspen or aspen-white birch stands are dominated by a green alder shrub layer,

with other common species including bunchberry, rose, club-mosses, bog cranberry, twinflower,

blueberry, Labrador tea, wild sarsaparilla, and fireweed.

Poor fens are dominated by black spruce and larch, and characterized by the presence of understory

and ground cover species such as Labrador tea, leatherleaf, bog birch, feather mosses, and/or peat

mosses. Other common species included speckled alder, three-leaved Solomon‟s-seal, small

cranberry, bog willow (Salix pedicellaris), bog cranberry, northern blackberry (Rubus arcticus), mud

sedge (Carex limosa), water sedge (Carex aquatilis), creeping snowberry (Gaultheria hispidula),

bog sedge (Carex magellanica), round-leaved sundew (Drosera rotundifolia), and peat mosses.



Fens are characterized by the presence of larch with understory species such as flatleaved willow

(Salix planifolia) and reed grass, but also Labrador tea, speckled alder, marsh cinquefoil (Comarum

palustre), bog laurel, and three-leaved Solomon‟s-seal. Graminoid fenland areas areprimarily

vegetated with species such as marsh reed grass, Northwest Territory sedge (Carex utriculata), water

sedge, and beaked sedge (Carex rostrata).

Species commonly associated with lakeshore margins include: marsh reed grass, swamp horsetail,

bulrush, marsh cinquefoil, leatherleaf, Northwest Territory sedge, green alder, tufted loosestrife

(Lysimachia thyrsiflora), white birch, larch, black spruce, sweet gale (Myrica gale), Labrador tea,

cattail, water sedge, willows, northern water-horehound (Lycopus uniflorus), and marsh skullcap

(Scutellaria galericulata).

Creeks often provide a moist, rich environment for vegetation. All tree species may occur in such

habitats, including those not noted in other sites such as white spruce, balsam poplar, and balsam fir

(Abies balsamea). A wide range of shrubs may be found here, including speckled alder, willows,

currants, raspberry (Rubus idaeus), low-bush cranberry, alder-leaved buckthorn (Rhamnus alnifolia),

rose, and red-osier dogwood (Cornus sericea ssp. sericea). Common herbs include marsh reed grass,

violet, small enchanter‟s nightshade, sweet-scented bedstraw (Galium triflorum), dewberry, fowl

manna grass (Glyceria striata), two-seeded sedge (Carex disperma), bishop‟s-cap, wild sarsaparilla,

tall lungwort, marsh skullcap, and woodland horsetail. Several ferns may occur in such sites,

including oak fern (Gymnocarpium dryopteris), spinulose wood fern (Dryopteris carthusiana),

ostrich fern (Matteuchia struthiopteris), northern lady fern (Athyrium filix-femina ssp. cyclosporum)

as well as rare fern species such as long beechfern (Phegopteris connectilis), and crested shield fern

(Dryopteris cristata).

Shrub lands are generally dominated by willows and alders. However, shrub lands occurring in

boggier and poor fen habitats may be dominated by low shrub land species such as leatherleaf,

Labrador tea, and/or sweet gale.

Roadsides and overgrown trails create habitat for a variety of both native and non-native species.

Many disturbance adapted vegetation species were recorded here. This includes such species as

clovers (Trifolium spp.), dandelion (Taraxacum sp.), sweet-clovers (Melilotus sp.), lamb‟s-quarters

(Chenopodium album), pennycress (Thlaspi arvense), Canada thistle (Cirsium arvense), and

scentless chamomile (Matricaria perforata).

Figure 5 provides an illustration of the vegetation cover type identified within the study area.

Additional detailed discussion of the terrestrial vegetative environment is provided in Appendix II.

Rare Plant Survey

One hundred and ninety-five plant species were observed during rare plant surveys in the GSA in

2010, including six rare species. Note that none of the rare plant species observed are provincially

or federally listed species. The six rare species, few-flowered sedge (Carex pauciflora), three-



fruited sedge (Carex trisperma), yellow touch-me-not (Impatiens noli-tangere), heart-leaved

twayblade (Listera cordata), Alaskan clubmoss (Lycopodium sitchense), and lesser bladderwort

(Utricularia minor) were recorded at a total of nine locations in the GSA in 2007 and 2010

(Table 5.3-6 within Appendix II). Three 2010 observations were repeat observations of 2007

occurrences, and an additional four rare plant occurrences were recorded in 2010. Two

occurrences were observed in 2007 but not in 2010. The plants at these locations may be in a

period of dormancy or may have experienced a natural mortality; no physical disturbance that

would have resulted in their destruction was evident at these locations.

Because the majority of the study area focused on the Golden Heart site and trail and areas on

either side of the road (Figure 6), most of the rare plants observed in the study area were close to

the existing trail. It is possible that the disturbed soils and increased light on the forest floor along

the existing Golden Heart trail may provide a diversity of habitat suitable for some rare plant

species (eg. yellow touch-me-not), and thus the presence of the existing trail may be a factor in their

distribution. However, it is more likely that the distribution of rare plants outside the study area is

equivalent to that observed in the 2010 study area; several of the species observed in 2010 in the

GSA were also observed outside of the GSA in the WSA in 2007, including Alaskan club moss,

three-fruited sedge, and lesser bladderwort (CanNorth 2008; CanNorth unpublished results).

Saskatchewan Activity Restriction guidelines (SKCDC 2003) dictate that a 50 m avoidance

area be established to avoid rare plants during heavy disturbance activities such as road

construction. Recommended avoidance areas (50 m radius) were marked with flagging tape in

June and August 2010; however, some rare plants were not identified until after field surveys

were completed and these areas were not flagged. Some avoidance areas abut the existing trails

in several locations, and several rare plant occurrences are within 50 m of the existing road.

Rare plant distribution information will be compared to the final road alignment in advance of

construction to ensure that potential impacts are accurately evaluated. Transplantation of plants to

areas of suitable habitat outside the potential impact area is anticipated to provide successful

mitigation, if required.

In addition to avoidance and transplantation, several mitigation measures are typically recommended

to reduce impact to rare plant populations and to native plant communities. These mitigation measures

are outlined in the Section 12.12.2 - Rare Plant Mitigation.

Wildlife

Eighteen species of wildlife or wildlife sign were observed during the wildlife surveys, including the

bald eagle (Haliaeetus leucocephalus), osprey (Pandion haliaetus), “microtine” rodents, red squirrels

(Tamiasciurus hudsonicus), various hare species (e.g., snowshoe hare, Lepus americanus), grouse

(Bonasa sp.)/ptarmigan (Lagopus sp.), least weasel (Mustela nivalis), mink (Mustela vison), ermine

(Mustela erminea), pine marten (Martes americana)/fisher (Martes pennanti), North American river

otter (Lontra canadensis), red fox (Vulpes vulpes)/coyote (Canis latrans), grey wolf (Canis lupus),

Canada lynx (Lynx canadensis), black bear (Ursus americanus), moose (Alces americana), deer



(Odocoileus sp.), and woodland caribou (Rangifer tarandus caribou). No active raptor nests were

identified in the WSA.

Sensitive wildlife identified in the Greater Waddy Lake study area was limited to woodland caribou,

which are listed as threatened by the Committee on the Status of Endangered Wildlife in Canada

(COSEWIC) and vulnerable by the Government of Saskatchewan (SKCDC). Evaluation of

woodland caribou habitat suitability identified 8.6% (WSA/BSA) and 9.6% (GSA) of the habitat was

highly suitable for browsing and foraging. Figure 7, which illustrate habitat suitability rankings

shows that the majority of the habitat at/around the Golden Heart site and along the access roads is

“low” suitability habitat, with patches of moderate, and very small and scarce patches with high

suitability. No woodland caribou sign was observed in the vicinity of the Golden Heart Study Area.

Wildlife Habitat Assessment

During the relevant baseline investigations, habitat suitability rankings within the study area were

derived using:

Data from regionally relevant studies;

Information from ungulate reports and management plans for Saskatchewan;

Habitat use data collected as part of the baseline investigations/studies (winter tracking and

pellet counts);

Forage availability data collected as part of this study (browse and lichen field

measurements);

The vegetation cover mapping and descriptions (Appendix II); and,

Author knowledge of ungulate habitat associations and requirements.

In order to rate and map habitat suitability the following descriptive three-class rating system was

used:

LOW - The habitat type may be used by the wildlife species in question. However, use is

limited mainly to travel, resting, loafing or opportunistic feedings and/or breeding. The

habitat type contributes minimally to population viability of the species.

MODERATE - The habitat type is used by the species for feeding and/or breeding but is of

suboptimal quality relative to other habitats. The type may contribute significantly to

population viability of the species but only during periods of low environmental stress.

HIGH - The habitat type is an important habitat of the species for feeding and/or breeding.

The habitat type contributes significantly to population viability.

Figure 7 provides an illustration of the Woodland Caribou habitat assessment ranking and Figure 8

provides a similar map with regard to moose habitat.



Species at Risk

Golden Band has committed to conducting a spring breeding bird, spring water bird, and fall

migration surveys prior to site development activities. In the meantime, a thorough species at risk

database search and review of the Saskatchewan Bird Atlas (for species known to occur in the area)

is underway to discern the likelihood of hard-to-detect species, such as common nighthawk and

short-eared owl, occurring in the project area. Because northern leopard frog has not been detected in

other studies in the near and general vicinity of the Golden Heart Project, it likely does not occur in

the project area. It also should be noted that the proposed project is not anticipated to impact any

wetlands. However, spring acoustic surveys will be completed during the same time frame as the

water bird and breeding songbird surveys to confirm this.

Heritage Resources

Western Heritage Services Inc. was retained in 2010 to investigate the potential of heritage resources

within the existing Golden Heart access trail, proposed freshwater intake pipeline corridor and road,

existing and potential borrow sources as well as the proposed mine site.

Prior to completing any field activities, the proposed Golden Heart development area was screened

by Western Heritage using the following criteria: the presence previously recorded heritage sites, the

area‟s overall heritage resource potential based on the guidelines for northern Saskatchewan as

outlined by the Heritage Resources Branch (HRB), the extent of previous land disturbance, and the

scope of the new proposed land development.

Upon screening and consultation with the HRB, it was determined that eight areas of moderate to

high heritage potential should be investigated with pedestrian survey and judgmental shovel testing

as well as a preliminary reconnaissance of the proposed mine site area. All eight of the targeted

areas fall within 250 m of potable (drinking) water - locations which are considered to be of high

heritage potential according to the HRB guidelines for northern Saskatchewan.

Representatives of Western Heritage conducted the field investigations from August 31st to

September 3rd

, 2010 under HRIA permit #10-232. The field investigation followed Western

Heritage best practices HRIA procedures, which include a program of systematic pedestrian survey

supplemented with judgmental sub-surface shovel testing. Shovel tests measured 40 x 40 cm in size

and were screened through 6 mm wire mesh.

Two new archaeological sites (HbMw-1 and HbMw-2) were discovered during the assessment. One

site (HbMw-1) was found on a previously disturbed side trail within the proposed mine site area;

however, the current known boundaries of the site are not in conflict with the existing access trail or

proposed mine foot print. A second site (HbMw-2) was found on the eastern shore of Lower Waddy

Lake. While this site is adjacent to the mouth of the proposed freshwater intake pipeline, it is not in

conflict with the proposed development.



Figure 9 and 10 provide the location of two sites of heritage resource significance identified during

the investigations. Although no diagnostic tools were discovered during the investigation, sites of the

nature found are generally considered to be of pre-contact in time frame (approximately 300 BP or

earlier).

No other new heritage resources were discovered while investigating any of the proposed locations

of heritage of concern along the current access trail or existing ATV trail outside the mine site area.

However, in accordance with correspondence provided by the Heritage Conservation Branch on

November 29, 2010, further testing will be conducted in any previously undisturbed areas within the

mine foot print prior to construction. As a result, Western Heritage has indicated that it has no

further heritage concerns regarding the road corridor to the proposed mine site or the proposed

pipeline/road to Lower Waddy Lake as they are proposed. Appendix III provides a copy of the

entire Western Heritage Service Inc. report.

5.8 Jolu Site

Detailed local baseline environmental data for the Jolu mill site is presented in the Jolu Central Mill

Gold Project Environmental Impact Statement (Golden Band 2009).

The following provides a brief summary of the existing environments within the Jolu site study area.

Appendix I of the Jolu Central Mill Gold Project Environmental Impact Statement (Golden Band

2009) provides a more detailed discussion of the investigation conducted as well as the results of

those investigations. That document also includes historic baseline information for the Decade and

Jolu study areas where pertinent.

5.8.1 Jolu Site Surface Hydrology

Mallard Creek

A staff gauge and automated water level data recorded were installed at the outlet of the Mallard

TMF to Mallard Creek in the spring of 2008 and measured flows were:

May 16, 2008: 106.91 L/s

Aug. 28, 2008: 26.35 L/s

Sept. 19, 2008: 41.82 L/s

Additional flow and water level measurements will continue to be used to establish a hydrology

rating curve at the JAG/Mallard tailings management facility (TMF) outlet to allow for continuous

monitoring of flows entering Mallard Creek during the operational lifetime of the Jolu mill.

5.8.2 Jolu Site - Aquatic Environment

The aquatic study area included stream crossings along the Jolu Mill access road, the Mallard TMF,

Mallard Creek, and Yew Lake. The Mallard TMF was originally a small headwater lake named



Mallard Lake, which has since been used as a TMF throughout different mining campaigns. In 1988,

a series of dams and berms were built to isolate the facility from the natural environment by

diverting fresh water inflows and controlling effluent discharges. Prior to this construction, fish

salvage was undertaken to remove fish from the lake. The construction activity resulted in the

division of the basin into cells A, B, and C. In 1998, two dams were altered to allow a small channel

to flow between Cells A and B and Cells B and C. Mallard Creek is a small stream that connects the

Mallard TMF to Yew Lake. Mallard Creek and Yew Lake are located downstream of Cell C in the

Mallard TMF, thus has also received historical impacts.

The following provides a brief discussion of the Jolu aquatic study area including the JAG/Mallard

TMF, Mallard Creek, and Yew Lake (Figure 4). Both the Mallard TMF and Yew Lake have

previously been impacted by more than 30 years of historical gold mining and milling operations in

the area. As the previously approved project included the re-commissioning and expansion of the

Mallard TMF, a detailed discussion of the current condition of the Mallard basin and the downstream

aquatic environments is presented in Section 6.5 of the Jolu Central Mill Gold Project

Environmental Impact Statement (Golden Band , 2009). A summary of the existing environments is

provided for general information.

Mallard TMF

The Mallard TMF has been used in the past for gold mill tailings deposition and is divided into three

cells (A, B, and C). Although all three of the cells were a part of the recent studies conducted, the

majority of sampling took place in Cell B due to its larger size and depth. The substrate of the basin

contains large quantities of mill tailings and, therefore, is not considered optimum for benthic

community development or as fish habitat. In addition, the chemical properties of the water and

sediment within the TMF are not considered optimum for fish health. The water chemistry data

identified much higher concentrations of ions, cyanide, and copper in the TMF waters when

compared to Reference Lake. In addition, cyanide and copper levels in the TMF water exceeded

both provincial and federal water quality guidelines for the protection of freshwater aquatic life.

Mallard sediment chemistry data also showed elevated concentrations of ions and numerous metals,

many of which exceeded guidelines. Notably, mean concentrations of copper exceeded all available

sediment quality guidelines in both Cells B (1294 ± 560 µg/g) and C (1700 ± 221 µg/g), as did

cyanide, and vanadium. Chromium (75 ± 13 µg/g), molybdenum (48 ± 7 µg/g), nickel (121 ± 8 µg/g),

zinc (162 ± 8 µg/g), and arsenic (13 ± 3 µg/g) exceeded sediment quality guidelines in the sediment

from Cell C of the TMF, while nickel (43 ± 9 µg/g) exceeded the Lower Effects Limit in sediment

from Cell B. The elevated concentrations of some analytes can likely be attributed to the fact that

tailings from past mining campaigns were probably present in the sediment samples obtained from

Cells B and C of the Mallard TMF.

The benthic invertebrate community in Mallard contained very low density (89 ± 29 organisms/m2)

and taxon richness (2 ± 1) values compared to the Reference Lake benthic invertebrate community

(1,982 ± 635 organisms/m2 and 4 ± 1, respectively). In terms of fish community structure, three



species of fish (yellow perch, white sucker, and lake chub) were found to reside in the Mallard TMF

during environmental baseline investigations. Although northern pike eggs were located during the

spring spawning survey, indicating northern pike are also present in the Mallard TMF, no northern

pike were captured during the spring spawning or summer fish community surveys. However

northern pike were subsequently captured by Fisheries and Oceans staff in 2008.

Yew Lake

Yew Lake is a small waterbody located downstream of Cell C of Mallard. Mallard and Yew Lake

are connected by Mallard Creek. Similar to Mallard, numerous water and sediment chemistry

analytes from Yew Lake were elevated in comparison to Reference Lake and to available guidelines.

In particular, copper and iron concentrations in the Yew Lake water sample exceeded the available

water quality guidelines, while cyanide, cadmium, chromium, copper, molybdenum, nickel, arsenic,

and vanadium sediment concentrations exceeded at least one of the available sediment quality

guidelines. In addition, mean mercury concentrations in northern pike during the Golden Band

baseline investigation measured 1.4 ± 0.1 µg/g in Yew Lake, which were the highest mercury levels

measured in northern pike flesh samples from the WSA.

Additional fish chemistry data were also provided by the Lac La Ronge Indian Band. Five northern

pike were obtained from Yew Lake in May 2008 following concerns raised by the Lac La Ronge

Indian Band regarding the level of mercury contamination in Yew Lake.

The mercury levels of the northern pike flesh samples ranged from 1.0 to 2.6 μg/g, and four of the

five samples exceeded the mercury rating of 3 (indicating that no one should consume those fish).

Mercury levels were also measured in the liver and kidney tissue from the five northern pike. The

mercury concentrations in these organs were found to be extremely high, ranging from 5.8 to

21.0 μg/g in liver tissue and 10.0 to 22.0 μg/g in kidney tissue, which is well above the 1.5 μg/g

guidelines, indicating that human consumption of the fish is not recommended.

Based on the concentrations measured during this program and a review of the Ministry of

Environment Mercury Consumption Guidelines, fish from Yew Lake should not be used for human

consumption.

As a result of the elevated levels observed in Yew Lake, the Lac La Ronge Indian Band also

arranged for the collection of five northern pike from Long Lake in September 2008 for chemical

analyses of the flesh, kidney and liver. The mercury concentrations in fish flesh from Long Lake

ranged from 0.48 μg/g to 0.87 μg/g. Although these concentrations of mercury in northern pike are

lower than that observed in Yew Lake, they are still elevated. Four of the five samples have mercury

levels at which consumption should be limited to 10 meals per year. Children and pregnant women

should not eat fish with mercury levels over 0.5 ppm. The Environmental Impact Statement for the

Jolu Central Mill Gold Project (February 2009) provides all of the mercury in fish tissue data for

water bodies studied as part of that EIS.



Plankton taxon richness, diversity, and evenness tended to be similar between the Yew Lake and

Reference Lake samples, however, density was more than two times higher in Yew Lake. The

benthic invertebrate community in Yew Lake appeared stressed, with over 90% of the community

dominated by a single genus (Chaoborus sp.), and density, taxon richness, and diversity all lower in

Yew Lake as compared to Reference Lake. A total of five species of fish were captured in Yew

Lake over the course of the 2006 and 2007 aquatic surveys, including northern pike, white sucker,

burbot, yellow perch, and lake chub. Highly suitable yellow perch spawning habitat and moderately

suitable northern pike and white/longnose sucker spawning habitat was identified in the lake. During

the spring spawning investigation, northern pike eggs were found in Yew Lake, confirming that

northern pike are spawning in this waterbody.

Mallard Creek

Mallard Creek is a small stream, approximately 250 m in length between the Mallard TMF with

Yew Lake, the nearest downstream lake. A spawning survey was completed at Mallard Creek in

May 2008. One white sucker was captured during this time. A complete fish community survey and

habitat assessment was completed in September 2008 and the results from the investigation are

provided in the Jolu Central Mill Gold Project Environmental Impact Statement (Golden Band

2009).

The fish community assessment completed in September 2008 resulted in the capture of six fish.

Only one large-bodied fish species, white sucker, was captured, and all four individuals

observed were juvenile fish. In addition, one lake chub and one northern redbelly dace were

captured during the survey.

An aquatic habitat assessment was conducted for the entire length of Mallard Creek. Mallard

Creek was divided into seven discrete habitat sections. Critical habitat was assessed for large-

bodied fish species that could potentially spawn within the stream, including northern pike, yellow

perch, and white sucker.

Organic matter dominated the substrate in Mallard Creek, however, coarser substrate such as

gravel, cobble, and boulder were found closer to the outlet of Cell C of the Mallard TMF.

Aquatic vegetation could be found in all habitat sections. Species observed included sedge,

cattail, bur-reed, pondweed, and pond-lily. Beaver dams throughout the length of Mallard

Creek have caused extensive flooding of the surrounding forest, and also present possible

barriers to fish passage.

Suitable spawning habitat was identified for northern pike, white sucker, and yellow perch.

Marginally to moderately suitable habitat for northern pike spawning was identified in 6 of the

7 habitat sections in Mallard Creek, mostly due to higher densities of sedge and other aquatic

vegetation through the stream channel. Marginal to moderately suitable spawning habitat for white

sucker was identified in habitat section 1, in the area just downstream of the Mallard TMF.



Marginally suitable habitat for yellow perch spawning was identified in five of the seven habitat

sections, and moderately suitable spawning habitat was identified in habitat section 5 of Mallard

Creek during the aquatic habitat assessment.

Although spawning habitat for northern pike, yellow perch, and white sucker was identified in

Mallard Creek, no evidence was found of utilization by these species of the habitat during the spring

spawning survey conducted in May 2008 (Golden Band 2009). Thus, the importance of the habitat

present in Mallard Creek is lessened. The presence of small-bodied fish in the study area indicates

that food sources such as zooplankton and invertebrates are available for young of year and juvenile

fish. Small-bodied fish are also a food source for predatory fish species such as northern pike and

larger yellow perch. For northern pike and yellow perch, nursery and early-to-late-stage rearing

habitat are similar to spawning habitat. Nursery and early stage rearing habitat for white sucker

tends to be similar to spawning habitat requirements. Therefore, it can be inferred that some

feeding, nursery and rearing habitat is present for the three large-bodied species of fish known to

inhabit Yew Lake.

Because of the shallow nature of Mallard Creek, suitable overwintering habitat for fish is not

available or very limited. With a maximum depth of around 0.8 m and relatively slow flow, the entire

creek would likely freeze to the bottom during the winter months.

5.8.3 Jolu Site - Terrestrial Environment

A total of twelve terrestrial habitat types were mapped during the 2004 and 2007 baseline

investigations of the, 245 vascular plant species were recorded in the WSA including three rare plant

species. Eighteen species of wildlife or wildlife sign were observed during the vegetation, winter

tracking, pellet count and browse availability surveys. This included bald eagle (Haliaeetus

leucocephalus), osprey (Pandion haliaetus), microtine rodents, red squirrels (Sciurus vulgaris),

varying hare (Lepus americanus), grouse/ptarmigan spp., least weasel (Mustela nivalis), mink

(Mustela vison), pine marten (Martes americana)/fisher (Martes pennanti), river otter (Lontra

canadensis), red fox (Vulpes vulpes)/coyote (Canis latrans), grey wolf (Canis lupus), lynx (Lynx

canadensis), black bear (Ursus americanus), moose (Alces Americana), deer (Odocoileus sp.), and

woodland caribou (Rangifer tarandus ). No active raptor nests were identified during the 2007 aerial

raptor survey of the WSA.

Four rare species were recorded within the Jolu/Decade study area; however none of the rare plant

species occurrences have been negatively impacted by the operation of the Jolu mill site and

JAG/Mallard TMF, nor will they be impacted by the proposed current development.

Sensitive wildlife identified in the study area included woodland caribou, which are listed as

threatened by the Committee on the Status of Endangered Wildlife in Canada and vulnerable by the

government of Saskatchewan. Woodland caribou habitat suitability evaluation and mapping of the



WSA was completed and highly suitable woodland caribou habitat was identified in 7.8% of the

WSA.

5.9 Project Regional Socio-Economic Environment

The La Ronge Gold Project is taking place in the Northern Administration District of Saskatchewan

(NAD). The NAD, is defined in the Province‟s current Northern Municipalities Act, but its creation

dates back to The Northern Administration Act, 1948, which provided for the administration and

development of the northern part of Saskatchewan.

The NAD includes approximately half of Saskatchewan‟s land area, but less than four per cent of the

province‟s population. A population of approximately 37,000 lives in approximately 45

communities which include municipalities, First Nation reserves, settlements, and sometimes a

combination of both. Two-thirds of the population is under the age of 35, and 8 out of 10 people are

of Aboriginal heritage, dominated by Cree, Dene, and Métis.

Although rich in natural resources, this sparsely-populated region is challenged by infrastructure,

education levels and average income when compared to the rest of the province. The isolation of the

communities creates special circumstances for northerners working to strengthen their local

economies and personal economic well-being.

The provincial government recognizes these challenges and through the Ministry of First Nations

and Métis Relations and other ministries' initiatives the government puts a special emphasis on

helping people within the NAD realize their goals and improve their standard of living. The

government is strengthening key northern industries with an emphasis on forging partnerships

among northern agencies, stimulating mineral exploration, and supporting forestry, tourism and

commercial fishing. Furthermore, it has invested in new water and sewer systems for communities

and has begun a significant road construction campaign that will improve access roads and build new

roads to communities which currently have no road access.

Northern Saskatchewan is a tourist destination. The La Ronge area alone had over 1,100 people

register at the tourism office in 2007. Twenty-five percent of these tourists were from other

provinces and 10% were from outside of Canada.

About 300 of Saskatchewan‟s 370 licensed outfitting operations are located in the NAD. Sports

fishing lodges are generally owner-operated small businesses that operate seasonally and each

provides employment for two or more local people as guides, dock hands, small motor mechanics,

and cooks.

About 1,000 angling guides work in the NAD of Saskatchewan (90% of the total 1,052 guides

including the 370 owner-guides). Most of the guides were of First Nation heritage in 2006.

The Saskatchewan Outfitters Association report that they have seen a 20% decline or about 3,000

fewer customers in the last ten years. Some of the challenges for this sector include competition



with new outfitters in central and South America, the new passport requirement for American clients,

the high Canadian dollar making vacations in Canada less attractive to Americans, late spring thaws

that reduce the fishing season, as well as new federal requirements for small commercial boat

operators, including guides, to have safety training certification.

The following information has been obtained from the Northern Saskatchewan, Regional Training

Needs Assessment Report 2008-2009 (April 2008) and Northern Saskatchewan, Regional Training

Needs Assessment Report 2009-2010 (January 2009) prepared by Northlands College, the Northern

Labour Market Committee and the Saskatchewan Ministry of Advanced Education, Employment and

Labour.

5.9.1 Population Trends

Compared to the total provincial population, the northern Saskatchewan population is very young.

43% are under age 20 compared to 27% provincially, and only 22% are over age 44 compared to

41% provincially. Census 2006 reports that the median age for the population in the NAD is

22.9 years old, compared to 38.7 for the province as a whole.

Although the northern population accounted for only 3.5% of the province‟s population, northern

children aged 0 to 19 represented 6% of all children in the province.

The NAD has led population growth across the province for the past 25 years. Since 1981, the

northern population has grown by 34%, compared to total provincial growth of only 1%.

The Aboriginal population in northern Saskatchewan totalled 29,085 people in 2006. People

reporting an Aboriginal identity formed 85.8% of the population in the region, compared to 14.9%

provincially and 3.8% nationally. The NAD‟s Aboriginal population grew by 2,365 people, a rate of

8% in 5 years.

The majority of Aboriginal people in the NAD (62.3%) are of First Nation heritage, primarily Cree

and Dene, while 22% identified themselves as Métis.

Aboriginal people make up a larger proportion of the young population, reflecting the higher

population growth of the Aboriginal population compared to the non-Aboriginal population. In the

adult population aged 45 to 64, only 71% of northern people and 8% of all people in the province are

of Aboriginal heritage. However, of children aged 0 to 4, 93% in the north and 29% in the province

as a whole are Aboriginal.

Over half of the First Nations population continues to reside on their own First Nation reserve lands

within the NAD.

Statistics Canada‟s report Projections of the Aboriginal Populations, Canada, Provinces and

Territories 2001 to 2017 (Stats Canada, 2005) projects that Aboriginal people would make up a

larger proportion of the province‟s population by 2017.



Saskatchewan‟s Aboriginal population is expected to grow from 138,300 in 2001 to 202,800 by

2017, a growth rate of 46.6% over 16 years. By 2017, Aboriginal people would represent 20.8% of

the total population up from 13.8% in 2001, one in 5 people would be Aboriginal in 2017 compared

to 1 in 7 people in 2001. Statistics Canada states that the two main reasons for the increase are the

higher birth rate and the young age of the Aboriginal population.

The report projects that the proportion of children aged 1 to 14 who are Aboriginal in Saskatchewan

will increase from 25.9% in 2001 to 36.6% by 2017.

The report concludes that, overall, the Aboriginal population will be aging and by 2017 would have

proportionally fewer children and more seniors than in 2001. However, the Aboriginal segment of

the population will stay much younger than the provincial and Canadian populations.

The population is aging in northern Saskatchewan, reflecting provincial and national trends.

Between Census 1996 and Census 2006, the proportions of the population in the 1 to 9 and 25 to 34

age groups declined while the proportion of the population aged 35 and older increased substantially.

The decline in the number of young adults aged 25 to 34 could be the result of out-migration.

5.9.2 Education

Although the number of northern children aged 1 to 9 has declined in the past 10 years, it is likely

that the north could see an increase in the number of children by 2017 as the number of people of

child-bearing age increases: the 11,300 children who were aged 5 to 19 in 2001 will have advanced

into the main child-bearing ages of 20 to 34 by 2017 – almost double the 6,800 people in the 20 to 34

age group in 2001.

The decline in the number of young children in the NAD is reflected in declining school enrolments

at the Kindergarten and elementary levels in both the provincial and First Nations school systems

over the past decade. In the past 5 years alone, the total number of enrolments in provincial and First

Nations Kindergarten decreased by 150 children and the number of enrolments in elementary Grades

1-5 declined by 1,000 children.

More northern students appear to be staying in school longer as reflected by the growing number of

enrolments in middle years and secondary levels in both the provincial and First Nation schools in

the NAD. Enrolments in secondary level (Grade 10 to 12) have increased by 84% and middle years

increased by 15% since 1998.

With more students staying in school longer, more are achieving their Grade 12/Adult 12 diploma

each year. Provincial schools, First Nation schools, and post-secondary institutes within this

proposed project‟s region graduated 346 students in 2006-2007 – double the number of graduates

from 10 years ago. Of the total graduates in 2006-07, 266 youth and 4 adults graduated from regular

school programs. Seventy-six adults graduated from Adult 12 programs, comprising 22% of all

graduates.



A higher proportion of people in younger age groups have attained their grade 12 than people in

older age groups. Census 2006 shows that 18% of youth age 15 to 24 and 21% of people aged 25 to

34 had a high school diploma compared to only 13% of people over age 35. As youth age, their

educational achievements will likely increase.

The region continues to have lower education rates than the province in general. 58% have less than

a high school diploma compared to 30% for the province as a whole. Fewer have achieved

post-secondary qualifications in college, university, or a trade – only 26% compared to 43% in the

province as a whole.

5.9.3 Housing

Homes are more crowded within the NAD. According to Census 2006, 14% of homes in the NAD

had more than one person per room compared to 1% of homes provincially.

Fewer people own their homes. Only one-third of dwellings are owned by the occupants compared to

three-quarters provincially. Almost half (46%) of the homes were constructed within the past

20 years compared to only 19% provincially, however, more homes in the north needed major

repairs. One in four homes needed major repairs in the NAD compared to only one in ten homes

provincially.

More married-couple households have children. 33% of married-couple households in the north

have children compared to 26% provincially.

More families are single-parent families. 38% of families in the north are headed by a lone parent

compared to 17% provincially.

5.9.4 Health Care

Communities within the NAD fall under the authority of four health districts. The Mamawetan

Churchill River, in the northeast, representing two-thirds of the population. The Keewatin Yatthé

Health District, covering the northwest, represents about one-third of the region‟s population.

Athabasca Health Authority in the far north is the smallest health district in the NAD. Cumberland

House municipality and First Nation are part of the Kelsey Trail Health District.

Total employment in health care systems in northern Saskatchewan is estimated at approximately

2,000 people, at three northern provincial health authorities (Mamawetan Churchill River, Keewatin

Yatthé, and Athabasca Health Districts) and in 12 northern First Nations. These positions range

from doctor, nurse, practical nurse, dental technician, addictions worker, community health educator,

kitchen workers, janitorial staff, and maintenance. In March 2007, Keewatin Yatthé had 74.6% of

employees self-identified as Aboriginal.

The nursing shortage, common throughout the province, is a reality in northern Saskatchewan as

well. Mamawetan Churchill River Regional Health Authority reports that the high overtime hours



for nurses are mainly due to the registered nurse vacancies that exist in acute care at the La Ronge

Health Centre.

5.9.5 Employment

In the past, people of the NAD have not fared as well in the labour market as similar Aboriginal

people in other parts of the province. Remoteness, few local employment opportunities, and a

preference to stay close to home has resulted for many people within the NAD attaining lower

educational levels, fewer work experience skills, withdrawal from the labour force, or being

channelled into less skilled jobs earning smaller wages. A report on The Aboriginal Labour Force in

Western Canada (Perspectives on Labour and Income, January 2005, Statistics Canada) has found,

however, that Aboriginal people are starting to benefit from an increasingly tight labour market.

The Looking Ahead: A 10-Year Outlook for the Canadian Labour Market (2006-2015) (HR&SD

Canada 2006) report predicts that the national labour market will perform well over the next decade

with no widespread labour shortages emerging although this will depend on the region and it

economic circumstances. Across the country, 1.7 million new jobs are projected to be created and

3.8 million existing jobs freed up by retirements.

Over the past decade, about half of all job openings were newly created jobs and half were existing

jobs needing to be filled because workers had retired. Over the next decade, two-thirds of jobs will

be available because of retirement of workers from existing jobs.

Most of the management jobs that are currently facing recruitment pressures are expected to continue

to face pressures over the next decade retirement as well. Retirements will create job openings at

management levels across all sectors from health care to mining to construction.

Employment demand will be greatest for jobs in the services sector, construction, and energy sectors.

It is anticipated that the services sector will have the greatest rate of job growth, particularly in

computer system design, health care, and professional services. The construction sector will be

driven by activity in the resource and energy sectors and the resource and energy sectors will be

driven by high energy and resource prices.

Sectors expected to show a decline in job growth include the forestry, pulp and paper, wood products

and manufacturing sectors.

In Saskatchewan, the Occupational Employment Outlook (Service Canada, 2008) report projects

79,300 job opportunities during the 5 year period between 2006 and 2011. Two-thirds of all job

openings are expected to be in occupations usually requiring post-secondary education or experience

in management and only 9% of jobs will accept less than a high school diploma. For this reason,

education and training will be the keys to increased northern employment.

Jobs that are expected to have the highest demand to 2011 include education, social sciences, most

trades, equipment operations, and health care workers.



5.9.6 Labour Force Participation

Participation in the labour force within the NAD is low. There are often few opportunities for

employment or work experience in some communities, the usual stepping stones to career planning,

skill development, and employment. Fully half of the people age 15 and over are not participating in

the workforce despite the fact that the population is so young. The 50% of people who are

participating in the labour force, working or looking for work, have an unemployment rate of 20%

compared to 5.6% provincially.

Employment in goods-producing industries grew by 17% between 2001 and 2006 – mostly in mining

and construction since forestry employment decreased. Workers aged 15 to 24 had the second

highest increase in employment. Employment of workers over age 55 increased the most at 51%.

Of the labour force employed at the last Census time, the majority were employed in education,

health care and public administration (governments). The median age of those employed was 40,

similar to the median age for Canadians as a whole. In northern Saskatchewan, the sector with the

youngest workers was retail with a median age of 33 while public administration/governments had

the oldest median age at 41.

The public service and the non-commercial service sector employs the largest number of people,

equalling almost half of the northern labour force.

About 4,100 people are employed in non-commercial service occupations in provincial, federal, First

Nations, and municipal government administration, and in government-funded education and health

authorities. Some of these occupations include teachers, nurses, laboratory technicians, social

workers, police officers, conservation officers, town administrators, and water/waste water operators.

The median age for public sector employees in the north is among the oldest of all groups. Workers

in the education have a median age of 43 and workers in health and government have a median age

of 41.

The vast majority of workers with public pension plans in the north retire earlier than their

counterparts in the private sector. These occupations are expected to face high attrition rates as

workers retire – almost all the 10,900 job openings projected for Saskatchewan for these sectors

from 2006 to 2011 will be due to retirements with only 1500 of the jobs projected to be new.

About 800 teachers are employed in the NAD: provincial schools in the north employ about 375

full-time equivalent educators, northern First Nation school systems employ about 400 teachers, and

provincial post-secondary institutes employ about 70.

Over 100 people work in early child care programs and services across the NAD including the

KidsFirst NORTH program, Health Canada's Aboriginal Head Start Program, and in 10 licensed

provincial early learning and child care (ELCC) centres. The province implemented new education

requirements for child care staff across the province that came into effect January 2007.



A large proportion of the educators in the NAD are of Aboriginal heritage. Many of these teachers

are graduates of NORTEP, which has graduated over 300 teachers since the program started 30 years

ago. A study on the impact of NORTEP after 30 years, NORTEP/PAC Innovation, Determination,

Impact completed in 2006, found that NORTEP has resulted in an increased number of Aboriginal

educators to reflect the northern population and a high participation rate in career teaching. Of the

NORTEP grads in the workforce, 91% are in teaching-related positions.

In northern Saskatchewan, although total enrolments have only slightly increased, there is a higher

proportion of students at the middle years and high school levels and so teachers with secondary

level specialization are in demand. The north has fewer specialist teachers in secondary-level (high

school) math, science, computer science, and applied arts than the provincial norm. For example,

only 30% of math courses in the north are taught by teacher specialists compared to 66%

provincially.

The teacher turnover rate for northern provincial schools varies year to year and by community and

teacher specialty. A small number of schools in Northern Lights School Division (NLSD) continue

to have a high teacher turnover rate while the majority of communities have a stable and longer-term

workforce. As well, there is a very low turnover rate within NLSD‟s elementary school teacher

workforce while teachers with specialty qualifications in senior sciences, practical and applied arts,

and French are always in demand.

The provincial government employs 234 workers in La Ronge out of the total 12,197 provincial

government employees in Saskatchewan. Positions include program administration, highway

equipment operators, pilots and aircraft engineers for forest fire fighting. Many are nearing

retirement age.

Municipalities in the NAD employ about 130 workers in full-time and casual positions such as

administration staff, water treatment operators, and heavy equipment operators for road maintenance.

In the summer, northern municipalities employ an additional 100 seasonal workers under the

Northern Forest Protection Worker and Training Program in a partnership comprised of the

Ministries of Environment, and Advanced Education, Employment and Labour, Northlands College,

and New North. These workers undertake town maintenance projects while they wait to be called to

fight forest fires.

5.9.7 Mineral Industry

Mineral exploration in the north is at an all-time high, spurred by the high market prices for a variety

of commodities, including gold, copper, zinc, uranium and rare earth elements. Exploration

expenditures in the Province were almost $277 million in 2009 and forecast to be approximately

$355 million in 2010.

Currently, operating mines in northern Saskatchewan are the largest employers in the region,

employing about 2,600 employees and long-term contractors and 500 short-term contractors directly



at the mine sites. Of these, about 1,540 are residents of Saskatchewan's north employed by

companies and contractors. About 42% of all employees are residents of Saskatchewan‟s north who

are of Aboriginal ancestry. Hudson Bay Mining and Smelting based in Flin Flon, Manitoba employs

an additional 280 northern Saskatchewan residents, primarily residents of Creighton and surrounding

communities. Company head offices in Saskatoon employ an additional 1,000 direct employees.

The northern Saskatchewan mining operations paid $223 million to local businesses and joint

ventures and $47 million in wages to northern employees in 2006. Since 1991, businesses and

residents of northern Saskatchewan earned $2.3 billion in goods, services, and payroll from northern

mine sites - 38% of the total $6.1 billion spent. The mining industry has helped develop northern

Saskatchewan businesses by breaking contracts into smaller achievable units and giving preferential

tendering to northern businesses.

If all the potential projects on the horizon were to proceed to development and operation, the

northern Saskatchewan mining industry could employ well over 2,500 long-term workers at the mine

sites for years to come (conservative estimate). Jobs include heavy equipment operators, miners,

technicians, trades people, and engineers. In addition, construction of the new mines would create

several hundred shorter-term trades jobs.

The mining industry is enjoying a period of remarkable growth at the same time as many mine

workers are looking to retire, creating challenges for company‟s human resources departments. The

Mining Industry Human Resource Council (MIHR) estimates that the mining sector will need to hire

up to 10,000 new workers each year across Canada over the next 10 years to meet anticipated

production targets (Mining Labour Market Transition Project Final Report, 2007 (MIHR, 2007).

The report depicts Saskatchewan‟s mining workforce with 31% of workers over age 45 compared to

47% nationally; women make up 9% of the mining workforce, slightly lower than the national rate;

and only 40% have a post-secondary education – the lowest of all provinces.

The industry needs to promote the careers and opportunities it offers to new sources of workers, such

as young people, women, the Aboriginal workforce, new Canadians, retirees, and mining ex-patriots.

A MIHR survey of people in these target groups found they had a significant lack of awareness about

the mining sector, seeing it as dirty, using old technology, and having a poor future, when in fact the

mining industry uses advanced technology, pays high wages and benefits, and offers advancement

and mobility opportunities.

The MIHR has initiated a strategy to address the pending labour shortage. The strategy has included

or anticipates such things includes launching a mine career marketing campaign, mining mentorship

programs, summer employment job boards, apprenticeship guides, photo galleries, website pop-ups

and banners, and employer tool kits for recruitment presentations.

As a means of addressing the recruitment, retention and education gaps for employment in the

northern Saskatchewan mining industry, a partnership of mining industry, governments, training



funders, and training delivery agencies was established in 1993. The Multi-Party Training Plan

(MPTP) is now in a fourth 5-year training Plan which commenced in July 2008 to address current

and emerging skill needs in the mineral sector. Training planning is undertaken by the Mineral

Sector Steering Committee.

Northern Career Quest Partnership is a multi-party training and employment initiative for the

mining and oil and gas industries. With funding from the federal Aboriginal Skills and Employment

Partnership (ASEP), combined with commitments by the provincial government and companies in

Saskatchewan and Alberta, Northern Career Quest provides training spaces and full time permanent

jobs for Aboriginal people, primarily from the northern half of Saskatchewan over 4 years

commencing in the Fall of 2008. Northern Career Quest has linked with the Multi-Party Training

Plan for the Mineral Sector to expand the job and training links for its clients.

The northern mines have implemented a variety of measures for recruitment of local people, such as:

Preferential hiring clauses for northern and Aboriginal workers, free air transportation from

many northern Saskatchewan communities, the week in/week out shift schedule, and multi-party

training ventures.

Career awareness to promote professional, technical, and trades careers in mining to northern

students including site tours for students, teachers, and community members; presentations to

students and teachers; work placements for students in post-secondary training; student summer

jobs; $100,000 each year in post-secondary scholarships; and employment for northern graduates

of training.

Long-term apprenticeship training initiatives. Saskatchewan‟s uranium producers have

increased the number of apprentices to address a shortage of skilled tradespersons and looming

retirements within the companies.

The mineral sector creates spin-off service business opportunities in catering, janitorial, trucking,

security, air charter, and grocery and retail supplies. Grocery and hardware stores have seen an

increase in their sales because of all the exploration projects. Operating mines continue to help

develop and expand northern businesses through their Surface Leases and Human Resource

Development Agreements (HRDAs) with the provincial government. Under the Leases, each mine

site in the NAD has made a commitment to increase the economic benefits and opportunities to

businesses in northern Saskatchewan by means of invitational bidding from preferred northern

businesses and breaking tenders up into smaller units to enable smaller companies to win the

contracts. Athabasca Catering, Clearwater Catering, Athabasca Basin Development Corp., and

Sakitawak Development Corporation have Aboriginal ownership and employ about 380 workers

(about 300 from the north). These and other northern companies earned $223M from the mines in

2006 for the goods and services they provided. Service job opportunities include cooks, kitchen

workers, house-keepers, janitors, and security guards.

With the expansion of existing mines in the north and the current construction of mines Northern

Resource Trucking (NRT) has contracts in place with Saskatchewan mining companies to provide



their freighting services. NRT has added specialized equipment to haul heavy loads, and has started

a driver training school. NRT, owned 71% by northern First Nations and Métis communities,

employs over 140 people. NRT launched a new driver training facility in La Ronge to address the

need for basic driver‟s licenses, a long time barrier to northern residents accessing driving

occupations. NRT and Northlands College work in partnership to provide truck and heavy

equipment driver training, some on a mobile simulator, and basic driver education.

5.9.8 Local Infrastructure

The only community within 50 km of the Golden Heart site is the Northern Settlement of Brabant

Lake which is located approximately 12 km south of the site. The Province of Saskatchewan‟s

online Municipal Directory System reports that the community has a population of 102. The school

(Ospwakun Sepe School) in Brabant Lake is part of the Northern Lights School Division No. 113

and has students from kindergarten to grade eight with four classrooms, a small industrial arts shop,

and a gymnasium. The Northern Lights School Division No. 113 web site also indicated during the

2010-2011 school year the school contained 20 students, one teacher and a single teacher aide.

Commercial activities within the community include a cafe, store and gas station. SaskTel provides

phone service, internet access, and the community has cable TV available.

Based on discussions between representatives of Golden Band, the Ministry of Municipal Affairs

and the Ministry of Environment, the community's water supply is provided by a freshwater intake in

Brabant Lake with the water being pumped to a water treatment facility located within the

community. The water treatment plant is regulated by the Saskatchewan Ministry of Environment.

Sewage from the community is treated in a lagoon which is also regulated by the Ministry of

Environment. The community does not have a centralized potable water distribution or sewage

collection system and a hauling service for both sewage and water is provided by a local commercial

firm. Based on communication with representatives of the community, both the water treatment

plant and sewage lagoon have been designed with excesses capacity over current demands.

Domestic waste from the community is disposed of in a landfill located northwest of the settlement

and is accessed by a spur from the access road to Golden Band‟s Komis/EP mine site. Golden Band

has initiated discussions with the Ministry of Municipal Affairs over the long term use of landfill

facility until such time as a regional landfill is established in the area and the current landfill is

decommissioned.

5.9.9 La Ronge Gold Project Surface Lease Agreement

Golden Band holds a valid surface lease agreement (see Section 6.2.1) with the Government of

Saskatchewan (the La Ronge Gold Project Surface Lease Agreement 2009). With regard to the

economic and employment articles of that agreement, Golden Band currently:



Initiates, to the extent possible, special recruiting efforts in northern communities in

cooperation with local governments, First Nations, Métis and federal and provincial

agencies;

Uses its best efforts to cause all contractors working on its sites to adopt similar policies;

Use its best efforts, and with the support and cooperation of Saskatchewan training

institutions, to organize and implement training programs so that employees completing the

training will be able to use the skills acquired and time spent as credit towards certification

or status recognized in Saskatchewan; and,

Actively encourages businesses located in the Northern Administration District to supply

goods and services to the La Ronge Gold Project.

As production mining and milling has commenced at the Roy Lloyd mine and the Jolu mill, Golden

Band will be preparing and submitting, on an annual basis, a report to the Northern Office of the

Ministry of Advanced Education, Employment and Labour which will provide a detailed assessment

of employment statistics for the La Ronge Gold Project and on behalf of its on-site contractors,

which reflect the degree of achievement of the objective expressed in Part III (Direct Employment

and Economic Benefits for Residents of Saskatchewan‟s North) of the Surface Lease Agreement.

These statistics are prepared and submitted in accordance with the terms of the Human Resource

Development Agreement for the project.

The Surface Lease Agreement also requires that the lease holder report annually to the Government

of Saskatchewan regarding all traditional user compensation agreements negotiated related to its

projects. Golden Band Resources intends to fully adhere to this requirement. In addition, on or

before March 31st of each calendar year, Golden Band will be preparing and submitting a Business

Participation Report that characterizes the nature and value of goods and services purchased during

the course of the year from northern business and the activities undertaken in the previous year to

achieve the intent of Part III of the Surface Lease Agreement. These document are available for

public review with due consideration of certain commercially sensitive information and will serve to

focus Golden Band on reviewing its performance in terms of hiring local people and maximizing the

purchase of goods and services from Northern Saskatchewan suppliers whenever possible.

http://www.aeel.gov.sk.ca/



6 The Project

6.1 Introduction

The Golden Heart mine will have minimal support facilities beyond what is required to conduct

mining activities. No camp facilities will be constructed or operated at the Golden Heart site. All

employees at the Golden Heart site will be housed off site in local communities and commute by bus

or van to complete each shift. It is anticipated that accommodations will be secured in the Northern

Settlement of Brabant Lake to house employees and contractors working at the Komis/EP mine site

(previously approved satellite mine) as well as the majority of the individuals employed at the

Golden Heart site.

Golden Heart Site

As such, infrastructure at the Golden Heart Site will be limited to:

An open pit followed by an underground mine;

A mine rock storage area:

A temporary ore storage area;

Laydown areas;

A mechanical shop;

A generator building;

Propane storage;

Fuel storage;

Oil/Lubricant storage;

A Mine dry/Office /First aid facility;

Mine water settling ponds;

An explosives magazine(s);

A freshwater intake and pipeline; and

Potable water/sewage treatment facilities.

Figure 11 shows the preliminary site layout for the proposed Golden Heart mine site.

Jolu Mill Site

Currently, the Jolu mill site includes the following infrastructure:

The Jolu/Decade site includes the following infrastructure:

Jolu & Decade mines (previously developed but currently inactive);

Jolu Mill and Water Treatment Facility;

Assay laboratory facilities;

JAG/Mallard Tailings Management Facility;

Mechanical shop;

Backup Generator building;

Hazardous Substances Waste Dangerous Goods and chemical storage;

Laydown areas;

Propane storage;



Warehouse;

Fuel storage;

Oil/Lubricant storage;

Dry facility/Office /First aid facility;

Figure 5 provides the location of the Jolu and Star Lake camp sites in relation to Highway No. 102

and provides the Jolu site layout.

Star Lake Camp

The currently approved and operating Star Lake camp, which houses people employed at the Jolu

mill, will not be expanded as a result of the Golden Heart project . The Star Lake camp includes the

following infrastructure:

Camp facilities;

Propane storage;

A domestic waste incinerator;

Freshwater intake; and

Potable water and sewage treatment facilities.

6.2 Land Tenure

6.2.1 Introduction

Anyone occupying provincial Crown land in Saskatchewan must have authority to do so from the

Province. The common form of land disposition used for mining operations located on Crown land

in the Northern Administration District is a Surface Lease Agreement. A Surface Lease Agreement

is a contractual agreement between the provincial government and the land user. Its primary function

is land rental.

The Province uses its land and mineral resource ownership rights to control the impact of mining

development. In order to access provincial resources, mineral developers are required to respect all

provincial laws, regulations and policies related to environmental protection, workers employment,

training, health and safety. This is reinforced by contractual obligations through the Surface Lease

Agreement.

The Surface Lease Agreement does not give a developer the right to proceed with a development. In

addition to obtaining surface rights to use the Crown land the developer must also have

environmental approval for the project and obtain all other necessary permits and approvals. The

Surface Lease Agreement covers all phases of a mine‟s life from construction (in some cases test

mine phase) through to operations, decommissioning and reclamation and transitional phase

monitoring. Once an operational site has been decommissioned and reclaimed and the transitional

phase monitoring results reveal that the site is stable, the developer can apply to the Province to be



released from its obligations under the Surface Lease Agreement and return the land back to

provincial control.

The need for a Surface Lease is determined on a case-by-case basis with the extent of surface work

proposed, along with attendant disturbance and impacts on the site, being the prime determinant.

While exploration activities and most bulk ore sampling procedures, for example, can generally be

adequately regulated through other types of permits, situations do arise where the Surface Lease

Agreement is the more appropriate regulatory instrument.

In all cases, a Surface Lease Agreement must be in place before production. It is also possible for a

mine developer to request establishment of a Surface Lease prior to actual commencement of

commercial production.

Each lease is subject to all provincial laws in force and obligates the owners/operators to obtain and

comply with all necessary licenses and permits, and any further regulatory approvals.

Surface Lease Agreements obligate every proponent to enter into a separate Human Resource

Development Agreement with the Northern Affairs Branch of the Ministry of First Nations and

Métis Relations.

The general terms and conditions of a Surface Lease Agreement are standard, and are applicable to

all mineral development projects. Terms are negotiable with the project proponents for site and/or

project specific issues (i.e. land areas, effective date, term, early surrender and for extension

provisions). Each agreement typically goes through several draft stages leading to a mutually

acceptable document.

6.2.2 Jolu Site

The Jolu site, which includes the Decade and Jolu deposits and tailings management facilities, is

located on mineral Claim S-108203 and is currently under the La Ronge Gold Project Surface Lease

Agreement 2009 between the Province of Saskatchewan and Golden Band. In addition to the two

deposited noted, the La Ronge Gold Project Surface Lease Agreement 2009 covers approximately

188 hectares and includes the Jolu mill, the JAG/Mallard TMF and associated facilities and roads.

The Surface Lease boundary at the Jolu mill site is shown on Figure 4. All milling of ores and

production from the La Ronge Gold Project sites (including the milling of Golden Heart ores) and

tailings disposal will occur within the current Surface Lease boundaries.

6.2.3 Star Lake Camp

The approved Star Lake camp which houses Jolu mill site employees is also located on mineral

claim S-108203 and is permitted by a current and valid Saskatchewan Ministry of Environment

issued under a Temporary Work Camp (Permit #EX-10-L2-036) which will converted to an annual

permit prior to the permit‟s expiry in 2011.



6.2.4 Golden Heart Site

Once Ministerial approval (pursuant to the Saskatchewan Environmental Assessment Act) of the

Golden Heart Gold Mine Project is received, Golden Band will make application for a revised or

new Surface Lease Agreement from the Province to cover the areas required to complete the

development, operation, decommissioning and reclamation of the mine site.

6.3 Mining – Golden Heart Deposit

6.3.1 Local Geology

Surficial Geology

The Quaternary geology of the Waddy Lake district has been well mapped and described in

considerable detail by Janet Campbell (Sask. Geological Survey Summary Investigations, 1985) and

by B. T. Schreiner (Saskatchewan Energy & Mines, Report 221, 1984).

During the Wisconsin glaciation era, northern Saskatchewan was subject to several continental ice

advances moving in a northeast-south-westerly direction. The lower till attributable to the last major

ice advance is commonly found throughout the La Ronge Domain except where it has been eroded in

glaciofluvial channels. In the Waddy Lake area, a thick blanket of lacustrine sediments is present

below an elevation of approximately 425 m, which makes the upper limit of proglacial Lake Agassiz

in the region. At several locations in the Golden Heart area, an ablation till is also present at the

surface which is related to a minor re-advance (Cree Lake re-advance) during the final stages of

glaciation which served to blanket till-covered topographic lows and strip topographic highs.

Property Geology

The geology of the Golden Heart deposit area consists of variably deformed mafic volcanics, debris

flows, gabbros, and mafic schists, which have been intruded by two small diorite/granodiorite

bodies. The Golden Heart property is located within the Byers Mineral Belt, a tectonic zone

delimited by a regional-scale structural break referred to as the Byers Tectonic Zone which extends

in an east-west trend for 26 km across the northern part of the La Ronge Greenstone Belt. The 100 to

500+ metre-wide structural zone, which also hosts the Tower East, Kaslo and Corner Lake gold

deposits, forms a tectonic zone of polyphase deformation which appears to have influenced the

regional emplacement of a number of gold-bearing porphyritic intrusive stocks and plugs along the

trend.

Northwest of the Byers Tectonic Zone, the property is underlain by pillowed andesites that exhibit a

gradational change to volcaniclastic closer to the A zone intrusive. Southeast of the Byers Tectonic

Zone, the volcanics are generally more felsic in composition and finer grained, more intercalated

tuffaceous units are present, and one discontinuous band of coarse conglomerates was mapped.

Depositional textures are not as well preserved south of the Byers Fault due to the degree of



metamorphism and because of the intensity of shear-type deformation appears to increase towards

Weedy Lake.

The area is cross-cut by three shear zones which have juxtaposed the various units and are all likely

splays or part of the Byers Tectonic Zone which in this area in near its north-eastern terminus. The

southeast fault lies within Weedy Lake, trends NNE, dips steeply to the NW, and is represented by

mafic schist. Well-developed slickensides within this unit plunge 580 to the north indicating normal

movement and likely postdates the gold mineralization, at least the latest movement does.

The second fault, the B Zone shear,- is defined by a zone of brittle deformation, treanding about

northeast, with a steep north-westerly dip, entirely within the B Zone Stock. The shear zone is

defined by a narrow, <5 m-wide zone of deformation. Along its southeast margin is a massive, milky

quartz vein (0.5-0.8 m wide) that can be traced on surface for over 140 m. The northwest margin of

the shear zone is poorly defined but is manifested by a >25 m-wide zone of quartz veining and

strongly potassically altered (biotite and potassic feldspar) silicified and rusty diorite/tonalite. The

quartz veins generally trend about 0500 and dip steeply to the northwest with orthogonal veins that

commonly trend about 0100 and 090

0. In addition, there is a set of westerly trending shallow dipping

(<300 N) quartz veins as part of this stockwork. The shear zone is host to the B Zone or Golden Heart

Deposit.

The third shear zone lies about 65 m to the NW of and parallel to the B Zone shear and defines the

boundary between the B Zone Stock and amfic volcanics. The shear zone treands about 0500 and

dips near vertical to steeply west. It is defined by a 20 to 30 m zone of brittle-deformed diorite and

mafic volcanics which are intruded by a stockwork of narrow (<0.5 m) quartz veins. The wall rocks

have undergone pervasive sulphidic and potassic (biotite and feldspar) alteration. As in the B Zone

shear, the veins trend to the NE (0300 to 050

0) and dip steeply (≈55

0) to the NW. There are also

orthogonal veins which trend to the north and west as well as a series of westerly trending, shallow

dipping quartz veins. A well-developed mineral lineation plunges steeply to the NW and appears to

indicate a reverse dextral movement. This zone, formerly known as the C Zone, is now termed the

Contact Zone and is part of the Golden Heart deposit.

The Golden Heart deposit is related to late-stage, upper level or sub-volcanic intrusive events

occurring near the margins of a larger mulit-phase batholith of predominately granodioritic

composition that, in turn, is a late-stage event of the Hudsonian Orogeny. Gold-sulphide

mineralization within these intrusives commonly occurs as moderately to steeply dipping, steeply

plunging, discrete mineralized zones of disseminated „free‟ gold intimately associated with increased

levels of pyritization (3-10%), albitization, strong silicification, and quartz/quartz-carbonate veins or

stockworks.

Although the gold-sulphide mineralization is spatially related to broad zones of polyphase

deformation and possibly folding, the individual zones do not appear to be directly controlled by

discrete faults or shears. The gold mineralization was emplaced early in the geological sequence of



events and is related to the waning stages of the plutonic cycle and controlled by the associated

pervasive brittle and hydrothermal activity.

At least seven shear zones have been identified which have quartz veining and gold mineralization.

These mineralized shears pre-date the last movement of the Byer Tectonic Zone and are sub-parallel

to, and located on both sides of the fault. They are considered to represent earlier movement along

the same zone of crustal weakness.

Mineralization

The Golden Heart deposit is hosted by a sheared and altered diorite. Gold occurs as both free gold

and in quartz veins as gold particles enclosed in pyrite and silicates. The mineralization is proximal

to a prominent structural feature known as the B-Zone Shear that transects the property in a north-

north-easterly direction.

The shear itself appears to be an imbricate and bifurcating series of shears that strike north-easterly

with moderate to steep dips to the northwest. In general, there appear to be good correlation between

intensity of alteration and intensity of shearing.

Alteration consists predominantly of silicification and pyritization. Chlorite, albite, carbonate, and

hematite can also be present. Gold values tend to be higher in more strongly altered zones. Other

sulphide minerals occurring in trace to minor amounts include chalcopyrite, sphalerite, and galena.

The distribution of gold tends to be irregular and confined to silicbide and pyritized diorite, proximal

to the B-Zone Shear.

6.3.2 Resource Estimates (National Instrument 43-101)

Table 5 shows the block model statistics by category and cut-off grade for the uncapped resource

estimate for the Golden Heart deposit. The base case at a 4 g/t gold (Au) cut-off is shown in bold

face.

Table 5: Uncapped Resource (With Grade Cut Values of 4, 5, 6 g/t Gold)

Cap g/t Au Cut-off Grade

g/t Au Category Tonnes

Grade g/t Au Ounces Au

0 4.0 Inferred 671,000 9.1 196,549

0 5.0 Inferred 442,050 11.51 163,640

0 6.0 Inferred 312,500 14.05 141,164

Table 6 shows the block model statistics by category and cut-off grade for the capped Resource

Estimate and is provided for comparison reasons only.



Table 6: Capped Resource (With Grade Cut Values of 4, 5, 6 g/t Gold)

Cap g/t Au Cut-off

Grade g/t Au

Tonnes Grade g/t

Au Ounces

Au Tonnes

Grade g/t Au

Ounces Au

Indicated Category Inferred Category

107, 55 4.0 492,800 6.62 104,807 10,500 4.95 4,672

107, 55 5.0 272,650 8.38 73,423 3,000 5.74 646

107, 55 6.0 168,000 10.20 55,083 1,400 6.16 277

The above tables were obtained from the report entitled Technical Report and Resource Estimate -

Golden Heart Gold Deposit - Greater Waddy Lake Project, Claim S-106203, Greater Waddy Lake

District, Saskatchewan – NTS 64-D-4 (Golden Band 2009b). Resource classifications conform to the

definition from National Instrument 43-101.

6.3.3 Mining Options Considered

During mine planning, both underground and open pit mining methods were considered as methods

to develop the Golden Heart deposit based on the established resource. The Golden Heart deposit has

been well defined by drilling over a strike length of 300 metres, vertically to a depth of 250 metres,

and down-plunge to an average of 350 m. The deposit exhibits a northeast plunge along a plane

striking 050° and dipping 70° to 85° northwest. Using the resource estimate and the drilling results,

it has been determined that mining of the deposit initially as a small open pit mine (Year 1) followed

by underground mining (Years 2 to 4) are the preferred mining methods.

Prior to any mine development, all trees and other vegetation will be removed and any merchantable

timber will be stockpiled for local use. All other surface organics will be removed and stockpiled in

an area north of the proposed pit for reuse during decommissioning and site reclamation. A

vegetation survey has confirmed that no rare or endangered species are present in the proposed areas

of pit development or associated surface disturbance.

6.3.4 Mining Method

Open Pit Mine (Year 1)

The resource model for the Golden Heart deposit was imported into Whittle software to provide a pit

optimization plan. Once the optimization was complete, a preliminary design of the open pit was

constructed using the results from Whittle. The preliminary design consists of a single pit with the

following design characteristics:

10 m wide ramp at a 10% grade;

75 degree slope for each bench; and

10 m bench height.

The pit will be completed in approximately one year and produce approximately 162,000 t of ore at

an average ore production rate of 443 t/day. The layout of the proposed open pit and mine rock pile

is shown on Figure 11. The resulting open pit will be approximately 175 m long and 150 m wide,



with an estimated depth of 50 m and a total volume of approximately 490,000 m3. Mining operations

will be conducted using conventional drilling and blasting from 5 m high ore and 10 m high mine

benches. The pit will be mined on a two shifts per day, 12 hours per shift, schedule.

The drilling will be performed with a track mounted top hammer drill for 89 mm and 107 mm drill

holes. Blasting will be conducted with packaged ANFO with manual blast hole charging. A number

of other mobile equipment units will be used on site such as a 40-tonne class bulldozer and a 150 kW

class road grader. Run-of-mine mill feed will be transported by truck and stockpiled on the

temporary ore storage pad near the pit rim. Any oversized run-of-mine mill feed will be reduced in

size by secondary blasting or a hydraulic impact hammer.

The blasted rock will be loaded with a 50 tonne hydraulic backhoe excavator onto 40 tonne class off-

highway trucks. The combination of backhoe excavators and off-highway haul trucks was selected as

the primary loading and hauling arrangement due to the better selectivity that a backhoe excavator

offers in terms of reducing dilution and increasing ore recovery. Also, the backhoe/truck system

provides high productivity and is well suited for hard rock applications.

Pickup trucks and crew vans will be used by engineering, geology and management personnel for

travelling on the site and between the site and other facilities.

The following provides a list of the mobile equipment which may be utilized at Golden Heart mine.

1 – Crawler drill – 89 mm diameter (blasting)

3 – Haul trucks – 54 tonnes

1 – Excavator – 3.71 cu. m.

1 - Wheel loader – 4.6 cu. m.

1 – Bulldozer – 155DX or D8T

1 – Grader – (150 kW)

1 – Water truck – 10,000 litres)

1 – Backhoe – 1 cu. m.

1 – Tele-handler (2,000 kg)

1 – Service truck & tools

3 – Pick-up trucks

1 – Crew van

1 – 12 Ton picker truck

Fuelling of semi-mobile equipment such as dozers and drills will be done using a modified

mechanic‟s or service truck, which can travel to equipment requiring fuelling anywhere within the

open pit. That truck will be equipped with fire suppression equipment as well as spill response

equipment.

All fully mobile equipment will be refuelled at a fuel station located near the maintenance building.

The fuelling station will be constructed with suitable secondary containment and will be equipped

with appropriate fire suppression equipment as well as spill response materials and equipment.

It is expected that the mobile equipment utilized for the open pit will be the same equipment which

will be used to mine the EP deposit.



Underground Mine (Year 2-4)

Once the open pit mine has been completed, the remainder of the resource will be accessed through

underground development to a depth of approximately 355 meters below surface elevation. At this

time no preliminary underground development designs have been completed, however, underground

access will likely be achieved through the development of a decline which will likely be developed

from the base of the open pit.

The decline will be situated in the footwall and will have the approximate dimensions of 4.5 m by

4.5 m. The decline will be developed at a grade of 15%. Crosscuts to the ore body will be developed

at 3.5 meters by 3.5 meters. The ore body will be subdivided in sublevels with approximately 25 m

vertical distance. The stopes will be accessed through drifts developed on the ore. The access drifts

will be a minimum of 2.4 m wide to allow access with a small Load Haul Dump unit (LHD) with a

3.5 cu. yard bucket capacity for mucking.

Production drill holes will be drilled in a V pattern using 2 1/8 inch diameter holes. Drilling of holes

for the stopes would likely utilize hydraulic or pneumatic drills mounted on a rubber tired carrier. A

minimum mining width of 2 m is assumed. A total of 2 drill shifts per day will be required to drill

the required total of approximately 590 feet per day.

All production blasting will be conducted with ANFO and initiated using non-electric caps. Drilling

and blasting will be conducted by the underground contractor. The production drilling may be

outsourced to a specialized drilling sub-contractor. Blasting will be conducted by one underground

blaster on one shift per day.

Mucking of stopes will be carried out in the sill drifts only. Remote operation of the LHD„s beyond

the stope brow will be applied. The LHD would transport ore back to loading areas near the decline

where trucks would be loaded. The use of 26 ton underground trucks is anticipated.

Mining will require 1 longhole drill operating 2 shifts and 1 stope mucking LHD„s with a 3.5 cu.

yards capacity operating for 2 shifts. One 26 ton underground truck will be required for haulage to

surface. Mine personnel will, at beginning and end of each shift, enter and leave the mine through

the decline. Transportation of personnel will be with suitable underground personnel carriers. The

underground personnel carriers will be provided by the underground contractor and will also be used

by Golden Band staff for geology and engineering tasks. Materials and explosives will be transported

underground via the ramp in service vehicles similar to the personnel carriers. Refuelling of

equipment will only take place at a surface refuelling station.

Mine ventilation will be a push system, with an intake fan located on the top of the fresh air raise at

surface. The fresh air raise will be off the ramp access and connected to the access crosscut on each

level. The raise will be connected to each level with bulkheads and suitable ventilation regulators in

place. Auxiliary ventilation fans will be located on the levels to redirect air volumes to the working

areas. Exhaust ventilation will take place through the ramp. A mine air heater with propane burners



will be installed to heat ventilating air to maintain an approximate air temperature of 10°C during

winter months.

Golden Band Resources intends to adhere to all requirements specified in The Mines Regulations,

2003 in the final design and construction of the Golden Heart underground mine. For example, the

fresh air intake raise will be equipped with a ladder way as a means of secondary egress from the

mine. In addition, refuge stations will be installed in the underground mine in accordance with the

requirements specified in The Mines Regulations, 2003 to provide shelter in the event of a fire or

other incident underground.

Golden Band is anticipating utilizing the services of a qualified contract mining company to develop

and mine the underground Golden Heart deposit. The contract miner would be responsible for all

mine development and mineral ore extraction work including maintenance of equipment and site

facilities. Golden Band staff will also be engaged in grade control, sampling, geology and

engineering of the mine operation and retain staff for the execution of these duties.

Notwithstanding this, Golden Band Resources as operator of the site will remain responsible for the

conduct of the operation and will not use a contractor to discharge its responsibility.

Table 7 provides an overview of the equipment that would be typically employed at the Golden

Heart underground mine.

Table 7: Golden Heart Underground Production Equipment

Golden Heart Production Equipment Qty.

LHD, 2.2 yd3 (3 tonne) cap. 2

LHD, 6 yd3 (8 tonne) cap. 2

Trucks, (26 ton) cap. 2

Drill Jumbo, 2 boom 1

Drill Jumbo, 1 boom 1

ANFO Loader 1

Longhole Drills, 51 mm dia. 1

Service Equipment

Low profile Grader 1

Scissor Lift Truck 1

Utility Truck 1

Hydraulic Scaler 1

Personnel Carriers 1

Diesel Pickup Trucks 4

Surface Mobile Equipment

Wheel Loader 4 m3 bucket 1

Dozer D-7 1



6.3.5 Mining Rates

Table 8 summarizes current the development plans and the ore and mine rock production rates. The

average expected daily ore mining rates have been calculated based on an annual schedule over the

life-of-mine. Ore from the Golden Heart mine will be blended with ore from other Golden Band

mines in order to achieve a mill feed rate of 700 tonnes per day (t/day) and is therefore expected to

be mined at a rate of approximately 350 t/day.

Table 8: Proposed Production Schedule

Deposit Material

Year

Total

(Tonnes)

Year 1

(Tonnes)

Year 2

(Tonnes)

Year 3

(Tonnes)

Year 4

(Tonnes)

Golden Heart Phase 1 Pit

Mine Rock 895,110

895,110

Ore 161,890 161,890

Underground Mine Rock 90,000 90,000 25,000 205,000

Ore 130,000 130,000 38,000 298,000

Average Daily Mining Rate (Tonnes/day)

444 356 356 208

Total Ore Mined 161,890 130,000 130,000 38,000 459,890

6.3.6 Use of Explosives near Fish Bearing Waters

No explosive will be used within fish bearing waters during the development, operation or

decommissioning of the Golden Heart mine.

In order to verify that there are no impacts to fish as a result of the use of explosives during mining,

Golden Band used the “Guidelines for the Use of Explosives In or Near Canadian Fisheries Water”

(DFO, 1998) with one notable exception described below, to determine the amount of explosives

that could potentially be used per time delay when blasting.

When explosives are used in mining, one large charge is not used, but rather, the explosive

detonations are timed to go off in rapid succession to minimize explosive use and ensure that the

rock does not stay in place. The succession of explosive detonations is managed through time

delays. For both the open pit and underground development at the Golden Heart site, the maximum

number of holes that can be blasted per time delay has been calculated.

In the guideline document referenced, there are a series of equations that can be used by proponents

to determine if explosive use is within allowable limits. The equations determine the setback

distance required for a peak pressure and velocity. Both calculations were completed and

determined that the peak velocity would govern the required distance from water which may contain

fish. The notable exception when using the guideline document is the maximum pressure criteria

that was used to determine set back distances. The pressure recommended in the guide is 100 kPa,



however as instructed by DFO on April 22, 2009 for the Jolu EIS, an interim value of 50 KPa was

used in the calculations.

The equations provided in Appendix II of the guidance document were used to determine the amount

of explosives that could be used per time delay based on the distance between the mine and the

nearest fish bearing waterbody, Weedy Pond. Based on the analysis, 1 hole can be blasted per time

delay at the point of the mine closest to Weedy pond; however, this increases to 5 on the portion of

the pit farthest from the pond. The initial number of holes blasted per time delay for the

underground development was calculated to be 5. During both the open pit and underground mine

development, Golden Band will maintain the number of holes per time delay at or below the levels

outlined in the guidance document.

6.3.7 Residual Explosives

The majority of the rock will be blasted using a bulk form of Ammonium Nitrate (AN) and fuel oil

mixture to make the blasting product ANFO. ANFO is soluble in water and nutrient rich in

environmental terms. As a result, “good housekeeping” practises are the first step in minimizing the

environmental impacts of ANFO use and includes the appropriate storage of the components and the

immediate clean-up and appropriate disposal of any material spilled during transport and use.

From a blasting perspective, ANFO is ideally suited for dry hole application. In the event that ANFO

is loaded into a wet borehole inadvertently, an incomplete detonation of the product may occur. In

such instances, residual ammonia nitrate may remain in the rock fill and be inadvertently transferred

with the mine rock pile, causing nutrient loadings to the receiving environment if not appropriately

managed.

The potential for wet-holes at the Golden Heart site is considered to be low due to the land-based

nature of the site and the low permeability of the host rock. However, even though mining area is

assumed to be dry, a contingency will be available. The potential for wet holes will be evident at the

time of drilling and without fail at the time of loading each blast hole. The blaster responsible for

loading and firing the drilled pattern begins the loading process by walking the entire pattern and

checking the actual drilled depth of each hole versus the plan and noting any conditions such as

water in each hole. This information is recorded on the blast pattern record sheet to determine the

amount and type of explosive required in each hole including the delay detonators used. The

presence of water in any drill hole requires one of several approaches to be taken to ensure proper

and complete explosive detonation. One way is to attempt to dewater the hole using a down hole

dewatering pump and truck so that a poly borehole liner can be lowered into the hole and ANFO

poured inside the bag.

In the event that an incomplete detonation of the product occurs, it is likely that an orange colour

smoke plume would be observed rising from the affected area. The blaster is required to make an

inspection of the blasted area, make note of blast holes that may have experienced incomplete

detonation and mark those locations with flagging.



The flagged off area will remain until the excavation equipment advances up to within half the hole

spacing distance at which time the suspect material would be more closely inspected for the presence

of ANFO.

Material considered un-detonated or high in ANFO residue, which will contain potentially elevated

level of nutrients (primarily ammonia) will be selectively excavated. The material will be placed

within the mine rock pile in a manner that ensures that all leachate either remains within the pile

where it will be subject to natural degradation or discharges in a manner and at a location that

ensures that it will be contained and not enter any streams, muskegs or fish bearing waters.

6.3.8 Mine Rock Characterization

The mining of the Golden Heart deposit is anticipated to produce approximately 1.1 million tonnes

of mine rock composed of material extracted from the mine but not processed (milled) because of its

low gold content. As a result, the rock will be permanently stored on surface in a pile close to the

mine itself.

Depending on the mineralization of the material, mine rock has the potential to pose a risk to the

environment in the immediate area of the pile, particularly if the rock is enriched with the sulfur-

bearing minerals such as pyrite, chalcopyrite, sphalerite etc.

When stored on surface in piles, the weathering of the mine rock can produce a weak acid which

combines with water creating acidic water which itself dissolves minerals present in the rock. Water

flowing through the rock pile can eventually discharge into the local environment as acid rock

drainage (ARD). In order to assess the potential environmental impact of the surface storage of mine

rock at the Golden Heart site, Golden Band has completed a detailed mine rock characterization

program.

Prior to collection of any mine rock samples for analysis, a comprehensive review of the Golden

Heart deposit‟s lithology was undertaken in order to gain a clear understanding of the rock types

within the proposed development for both the open pit and underground mine.

Golden Band conducted a comprehensive review of the lithological information contained in an MS

ACCESS database, which is used as the source data for resource modelling and mine planning

software. Sections along the strike of the ore body were created and from that, sample locations

were selected which would be considered representative of the mine rock and ore from throughout

the deposit. From this information an understanding of the various lithologies was obtained and used

to determine the number of samples that should be collected in order to provide representative

samples throughout the deposit and mine rock to be mined.

Recommendations contained within The Mine Rock Guidelines – Drainage and Control of Drainage

Water Quality (Saskatchewan Environment and Public Safety, 1992) for operating mines were then

used to determine a reasonable number of core samples required to gain an accurate understanding of

the mine rock character, the potential for that rock to result in ARD and to assess the potential



environmental risks associated with permanent surface storage of the rock, prior to the operation of

the mine.

Based on these investigations, it was concluded that the deposit is comprised primarily of diorite

(approximately 75%) followed by mafic tuff (15%), with the remaining being other lithologies such

as volcanics and granodiorite. Twenty-four samples of mine rock (12 diorite, 8 mafic tuff, as well as

4 samples of the ore shear zone) were collected for modified acid base accounting and net acid

generating testing, and twelve of these were selected for strong acid digest ICP-OES/MS elemental

analyses. The number of volcanic and granodiorite samples was extremely limited and no samples

could be located during the sample collection program. The number of samples collected is

considered adequate for this stage in the development process considering that additional samples

will be collected during the development of the deposit as per The Mine Rock Guidelines.

After the initial collection of the rock samples for analysis, Golden Band‟s mine plans were further

refined. Based on the new proposed mine design (small open pit followed by an underground mine)

it is now anticipated that, of the rock to be mined, diorite represents approximately 85% of the mine

rock, mafic tuff between 5 and 10% and other rock types making up the remaining 5 to 10%.

Although some of the samples originally selected were now considered to be outside of the current

conceptual open pit, the analytical results are still considered to be representative of the deposit and

mine rock that will be produced during mining. All samples were sent to SGS Canada Inc. (SGS) for

preparation and analysis.

The results of the SGS strong aid digest ICP-OEM/MS elemental analysis, net acid generating

potential, modified acid base accounting, and net acid generating testing of mine rock samples within

the current open pit shell and representative of the underground development are included in Tables

9, 10 and 11 respectively. The results of the strong acid digest ICP-OES/MS elemental analysis of

the same samples are provided in Table 12. The results for all of the samples collected, including

those outside of the pit shell are provided in Appendix B of the report entitled “The Recovery of Gold

from the Golden Heart Deposit Sample” within Appendix V.



Table 9: Golden Heart Mine Rock Strong Acid Digest ICP-OEM/Me Elemental Analysis

Parameter Units W96-127

Diorite

W96-125

Diorite

W96-110

Shear Zone

W96-107

Diorite

W95-100

Mafic Tuff

W96-111

Shear Zone

W96-111

Diorite

Hg µg/g <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1

Ag g/t 0.31 0.72 0.25 0.41 0.24 0.10 0.26

Al µg/g 75000 66000 19000 74000 74000 40000 75000

As µg/g 2.0 1.9 1.6 2.4 <0.5 1.8 1.5

B µg/g 33 30 49 76 51 66 70

Ba g/t 380 590 370 580 130 260 290

Be g/t 1.1 1.5 0.59 1.2 0.78 0.66 0.90

Bi µg/g 0.37 <0.09 0.14 0.12 0.14 0.15 0.13

Ca µg/g 50000 17000 79000 27000 54000 87000 44000

Cd µg/g 0.19 0.38 0.14 0.23 0.20 0.15 0.20

Co µg/g 17 10 42 23 22 37 23

Cr µg/g 59 100 730 86 100 610 70

Cu g/t 59 53 38 35 38 27 67

Fe µg/g 45000 43000 63000 57000 52000 53000 45000

K µg/g 12000 17000 26000 12000 6700 18000 19000

Li g/t 19 16 41 20 9 30 20

Mg µg/g 20000 5600 46000 16000 28000 48000 27000

Mn g/t 590 570 1200 690 880 1040 580

Mo µg/g 2.1 2.4 36 0.8 2.1 7.5 0.6

Na µg/g 22000 30000 8600 30000 20000 8500 24000

Ni µg/g 41 35 280 34 44 290 47

P µg/g 510 690 360 580 490 350 460

Pb µg/g 5.7 8.4 3.5 5.9 5.8 2.9 7.1

Sb g/t <0.8 <0.8 <0.8 <0.8 <0.8 <0.8 <0.8

Se µg/g <0.7 <0.7 <0.7 <0.7 <0.7 <0.7 <0.7

Sn µg/g 4.1 2.1 0.9 1.5 1.1 0.7 1.0

Si % 24.8 29.5 17.5 26.4 24.2 20.1 25.0

Sr g/t 160 250 220 280 170 240 320

Ti µg/g 5100 5600 3100 5100 4700 2300 3900

Th g/t 3.8 8.5 0.50 3.9 2.8 0.60 2.0

U µg/g 1.2 2.4 0.58 1.3 1.0 0.58 0.68

V g/t 130 58 200 140 150 150 140

Y µg/g 14 16 7.4 15 13 7.4 11

Zn µg/g 52 54 110 50 58 110 52



Table 10: Golden Heart Mine Rock Net Acid Generation Testing


Diorite

W96-128

Diorite

W96-125

Diorite

W96-109

Shear Zone

W96-109

Diorite

W96-110

Shear Zone

W96-107

Diorite

W95-100

Mafic Tuff

W95-100

Diorite

W95-100

Mafic Tuff

W96-111

Shear Zone

W96-111

Diorite

W89-074

Diorite

Sample wt. g 1.52 1.53 1.52 1.48 1.48 1.52 1.54 1.55 1.48 1.54 1.50 1.50 1.51

Vol. H2O2 mL 150 150 150 150 150 150 150 150 150 150 150 150 150

Final pH units 10.20 4.21 10.32 9.67 10.16 11.05 10.35 7.30 3.91 7.65 11.20 10.71 9.07

NaOH Normality 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

Vol NaOH to pH 4.5

mL 0.00 0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.40 0.00 0.00 0.00 0.00

Vol NaOH to pH 7.0

mL 0.00 0.95 0.00 0.00 0.00 0.00 0.00 0.00 1.25 0.00 0.00 0.00 0.00

NAG@pH 4.5 kg H2SO4/t 0 0.05 0 0 0 0 0 0 1.3 0 0 0 0

NAG@pH 7.0 kg H2SO4/t 0 3.0 0 0 0 0 0 0 4.1 0 0 0 0



Table 11: Golden Heart Mine Rock Modified Acid Base Accounting


Diorite

W96-128

Diorite

W96-125

Diorite

W96-109

Shear Zone

W96-109

Diorite

W96-110

Shear Zone

W96-107

Diorite

W95-100

Mafic Tuff

W95-100

Diorite

W95-100

Mafic Tuff

W96-111

Shear Zone

W96-111

Diorite

W89-074

Diorite

Paste pH Units 9.32 9.12 9.45 9.43 9.37 9.84 9.77 9.32 9.84 10.09 9.87 10.09 10.18

Fizz Rate -- 3 1 3 4 3 4 3 1 3 1 4 3 3

Sample wt. g 1.97 2.02 2.01 2.02 1.95 2.00 1.96 1.97 1.95 1.95 2.01 2.00 1.98

HCl added mL 26.00 20.00 23.90 53.20 24.80 81.00 36.80 20.00 20.00 20.00 81.60 38.50 25.80

HCl Normality 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

NaOH Normality 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

NaOH to pH 8.3

mL 10.24 13.60 11.55 29.98 11.62 21.90 19.75 14.89 9.43 12.63 17.81 17.41 14.49

Final pH Units 1.82 1.50 1.50 1.62 1.54 1.90 1.59 1.16 1.82 1.57 1.74 1.63 1.66

NP1 t CaCO3/1000 t 40.0 15.8 30.7 57.5 33.8 148 43.5 13.0 27.1 18.9 159 52.7 28.6

AP t CaCO3/1000 t 17.6 13.4 3.70 49.9 5.01 14.6 17.2 8.30 25.9 2.61 11.3 6.23 4.30

Net NP t CaCO3/1000 t 22.4 2.37 27.0 7.61 28.8 133 26.3 4.70 1.20 16.3 147 46.5 24.3

NP/AP ratio 2.28 1.18 8.30 1.15 6.75 10.1 2.54 1.57 1.05 7.23 14.1 8.46 6.66

S % 0.606 0.448 0.154 1.73 0.223 0.485 0.602 0.296 1.00 0.120 0.371 0.230 0.196

SO4 % 0.04 0.02 0.04 0.13 0.08 0.02 0.06 0.03 0.17 0.04 0.01 0.03 0.06

Sulphide % 0.56 0.43 0.12 1.60 0.16 0.47 0.55 0.27 0.83 0.008 0.36 0.20 0.14

C % 0.332 0.021 0.272 0.465 0.282 1.64 0.323 0.031 0.202 0.058 1.80 0.485 0.178

Carbonate % 1.39 0.048 1.24 1.44 1.28 7.40 1.24 0.029 0.612 0.211 8.66 1.94 0.668

CO3 NP2 t CaCO3/1000 t 23.1 0.80 20.6 23.9 21.2 123 20.6 0.48 10.2 3.50 144 32.2 11.1

CO3 Net NP t CaCO3/1000 t 5.47 -12.8 16.9 -26.0 16.2 108 3.38 -7.82 -15.7 0.89 132 26.0 6.79

CO3 Net NP/AP

ratio 1.31 0.06 5.56 0.48 4.24 8.41 1.20 0.06 0.39 1.34 12.7 5.17 2.58

Classification Based on ABA NP1

uncertain uncertain PAN uncertain PAN PAN uncertain uncertain uncertain uncertain PAN PAN PAN

Classification Based on ABA NP1

uncertain PAG uncertain PAG uncertain PAN uncertain PAG PAG uncertain PAN PAN uncertain

1 - Measured in ABA test

2 - Theoretical, based on CO3 content alone

Green highlighting indicates Net NP values less than 20 Orange highlighting indicates NP/AP ratio less than 3

PAG – Potentially Acid Generating based on interpretation of ABA test data alone

PAN – Potentially Acid Neutralizing based on interpretation of ABA test data alone Uncertain – acid generating potential is uncertain based on interpretation of ABA test data alone



As a review of analytical results in Table 10 shows that the net acid generation testing indicated that

two of the thirteen samples were below neutral pH after hydrogen peroxide addition. With the

exception of one shear zone sample, which had a sulphur content of 1.73%, the sulphur contents of

the remaining samples were at or below 1%. A similar review of Table 11 shows that the modified

acid base accounting for the samples ranged from potentially acid generating to potential acid

neutralizing, with several samples coming back as uncertain.

After reviewing the results of the modified acid base accounting and net acid generation testing,

Golden Band arranged for additional kinetic testing of two composite samples of diorite, the

dominant mine rock type, in order to gain a further understanding of the potential for the rock to be

acid generating.

A composite sample was created from samples which had sulphide contents above 0.5% which

included the following samples: W96-127, W96-107, and W95-100, for a combined average

sulphide content of 0.65%. The second composite sample included diorite samples which had

sulphide contents below 0.5% (W96-128, W96-125, W96-109, W96-111) with a combined average

sulphide content of 0.23%. Due to the relatively small contribution of the other rock types to the

overall mass of mine rock, additional testing of this rock was not undertaken.

At the time of the writing of this report, SGS Canada Inc. has completed week 25 of a 40-week

humidity cell leachate analysis. Table 12 provides a summary of the week 25 humidity cell leachate

analysis analytical results as well as the regulatory limits established by the Saskatchewan Mineral

Industry Environmental Protection Regulations, 1996 (MIEPR) and the federal Metal Mining

Effluent Regulations (MMER). The entire suite of leachate analysis for the first 25 weeks is

provided in Appendix V.



Table 12: Golden Heart Mine Rock Week 25 Humidity Cell Leachate Analysis

Parameter Units

Low Sulphide Composite Sample

(Average sulphide Content = 0.23%)

High Sulphide Composite Sample

(Average sulphide Content = 0.65%)

MIEPR (Sask.)

&

MMER(Federal)

Hum Cell Leachate Volume mL 951 940

pH units 7.15 7.20 6.0 – 9.5

Conductivity µS/cm 25 26

Acidity mg/L as CaCO3 <2 <2

Alkalinity mg/L as CaCO3 10 9

SO4 µg/L 1.0 2.2

Hg mg/L <0.0001 <0.001

Ag mg/L <0.00001 <0.00001

Al mg/L 0.04 0.06

As mg/L 0.0005 0.0005 0.50

B mg/L 0.0023 0.0035

Ba mg/L 0.00354 0.00466

Be mg/L <0.00002 <0.00002

Bi mg/L <0.00001 <0.00001

Ca mg/L 3.0 3.57

Cd mg/L <0.000003 0.000024

Co mg/L 0.000013 0.000036

Cr mg/L <0.0005 <0.0005

Cu mg/L <0.0005 <0.0005 0.30

Fe mg/L <0.002 <0.002

K mg/L 2.48 1.94

Li mg/L 0.001 0.001

Mg mg/L 0.221 0.174

Mn mg/L 0.00352 0.00340

Mo mg/L 0.0013 0.00013

Na mg/L 0.07 0.08

Ni mg/L 0.0003 0.0002 0.50

Pb mg/L 0.00003 0.00017 0.20

P mg/L 0.016 0.018

Sb mg/L 0.0002 0.0003

Se mg/L <0.001 <0.001

Si mg/L 0.39 0.37

Sn mg/L 0.00032 0.00015

Sr mg/L 0.0061 0.0058

Th mg/L <0.000004 <0.000004

Ti mg/L <0.0001 <0.0001

Tl mg/L <0.0002 <0.0002

U mg/L 0.000239 0.000129 2.5 (MIEPR)

V mg/L 0.00066 0.00074

W mg/L 0.00020 0.00039

Y mg/L 0.000002 0.000004

Zn mg/L <0.002 <0.002 0.50



After 25 weeks of humidity cell testing, the leachate from both the high and low sulphide composite

samples has metal concentrations well below MMER and MIEPR limits and the pH is well within

the rage identified in MMER.

6.3.9 Mine Rock Management & Monitoring

Notwithstanding the results of the SGS Canada Inc. humidity cell test results, Golden Band will

develop and implement a mine rock monitoring program based on the recommendations provided in

the Mine Rock Guidelines – Design and Control of Drainage Water Quality (Saskatchewan

Environment and Public Safety, April 1992) and industry best management practices. The objective

of the plan will be to establish procedures and testing to identify, segregate and properly manage

any potentially acid generating mine rock encountered during the mining of the Golden Heart

deposit.

The mine rock storage pile itself will be designed, built, and reclaimed so as to minimize short-,

medium- and long-term impacts on the environment. In the event that problematic Potentially Acid

Generating (PAG) mine rock is encountered during the mining of the Golden Heart deposit it will be

segregated from the non-acid generating mine rock and either be used as backfilled in the

underground mine or placed in the bottom of the mine out pit where it will be covered and flooded

during decommissioning

The surface mine rock storage area is proposed in an area located generally northeast of the proposed

pit. The area is underlain by bedrock interspersed with sandy soils.

Prior to the deposition of mine rock in the area, all trees and other vegetation will be removed and

any merchantable timber will be stockpiled for pickup. All other organics will be removed and

stockpiled in an area east of the ore storage area and north of the proposed pit for reuse during

decommissioning and site reclamation. A vegetation survey has confirmed that no rare or

endangered species are present in the proposed areas of disturbance.

Diversion and collection ditches will surround the mine rock pile and it will be constructed in such a

way so as to direct runoff to a central collection point which itself will discharge the mine water

settling ponds or the low muskeg area west of the pile (assuming the water is of suitable quality).

The surface area of the mine rock pile is expected to be approximately 3.5 hectares and will have a

height of approximately 10 m.

A portion of the mine rock will also be used for the construction of surface facilities such as roads,

laydown areas and structure foundations. In all such activities, only non-acid generating rock or rock

considered to be of low reactivity will be used.

6.3.10 Ore Characterization

In addition to the mine rock samples, six samples of mineralized material (ore) were collected for

modified acid base accounting and net acid generating testing and three of these samples were



selected for strong acid digest ICP-OES/MS elemental analysis. Samples were shipped and all

analysis was completed by SGS Canada Inc. in Lakefield, Ontario. The results of this test work are

summarized in provided in Appendix B of the report entitled “The Recovery of Gold from the Golden

Heart Deposit Sample” within Appendix V.

With the refinement of the open pit design, only one of the samples (W89-74) is within the area of

the current mine development, however, all samples collected are expected to be representative of

ore from the deposit. Three of the six samples were below neutral pH after hydrogen peroxide

addition and most of the samples were either uncertain or potentially acid generating. A composite

sample from the samples sent for metallurgical testing was also sent for modified acid base

accounting and net acid generation testing. The composite sample was considered to be acid

generating. The complete results are provided in Section 1.3 of the report entitled “The Recovery of

Gold from the Golden Heart Deposit Sample” within Appendix V.

6.3.11 Ore Stockpiling and Transportation

Run-of-mine ore will, if necessary, be passed through a grizzly to screen out oversized boulders. Any

oversized run-of-mine mill feed will be reduced in size by secondary blasting or a hydraulic impact

hammer. The material will then be stored at a temporary stockpile near the pit in order to ensure that

any leachate from the temporary surface storage of the ore can report or be pumped to the pit or mine

water settling ponds. Given the short residence time this material will have on this ore stockpile (it is

estimated that no one load of material would remain on the pad for more than 1 month) no concerns

with any leachate from this pile are expected. However, any leachate that is produced will be

collected within the pit sump and be delivered to the mine water settlings ponds, which will be

regularly sampled and analysed as part of the environmental monitoring program (see Section 10).

The mill feed from the temporary stockpile will then be loaded onto highway trucks by a quarry size

4 m3 bucket wheel loader such as a Komatsu WA 600 or Caterpillar 980G for transportation to the

Jolu mill.

6.3.12 Mine Site Water Management

Groundwater Inflow and Characterization

Water inflow is an inevitable part of mine development and all water inflows, whether to

underground or open pit mines, must be collected and appropriately managed before discharge to the

environment.

A field program was conducted in April and May 2010 to gather hydrogeology information for the

Golden Heart deposit. Clifton Associates Ltd. was retained to undertake the program which consisted

of:

1. Testing to determine values for the hydraulic conductivity of in-situ bedrock; and,

2. Sampling of groundwater for analysis of a variety of aqueous parameters.



A geotechnical investigation was also undertaken in conjunction with the above program to provide

data for the design of the open pit. The geotechnical program consisted of:

1. Determining the Rock Quality Designation (RQD) of the core; and

2. Characterizing various parameters of the discontinuities within the rock mass for later

evaluation of stability of the proposed pit walls.

The information from the field program and the estimates for the potential volume and quality of

inflow for the proposed open pit and underground mine is provided in Appendix IV.

The resulting estimates show that the average water inflow into the Golden Heart open pit during the

initial mining of the pit will be in the order or 43 m3/day. The inflow is expected to decrease quickly

after the first month of mining. After a period of 5 years the groundwater flux into the pit is expected

to be approximately 4 m3/day. As these volumes of inflow are relatively low, conventional sumps

and pumps will be utilized to keep the mining areas relatively free of water. These pumping systems

will move the accumulated volumes of water to the mine water settling ponds constructed for the

purposes of settling suspended solids. The water accumulated in the settling ponds will be sampled

and monitored prior to discharge to the environment. All water discharged from the mine water

settling ponds will be in compliance with Saskatchewan„s effluent discharge limits as well as the

Metal Mining Effluent Regulations.

Modeling was not conducted on the proposed underground mine at the Golden Heart site as the

design has not been finalized. However the inflow rates provided within this report and permeability

information gathered can be used, along with the actual pit inflow rates, to provide a reasonable

estimate on the groundwater inflow rates for the underground development.

The potential flooding of the underground mine is not likely as precipitation waters will be collected

in sumps at the bottom of the pit before the water is allowed to enter the mine and the

hydrogeological investigations and past operating experience all show that water flows into the

underground workings will be relatively small. Notwithstanding this, a detailed mine water

management contingency plan will be developed for the underground mine prior to commencement

of underground mining.

Mine Site Freshwater Use and Source

Estimated freshwater requirements for the operation of the site are 10,170 m3 per year or up to 58.0

m3 per day. This includes:

6.0 m3/day - mine dry, office and domestic use;

4.0 m3/day - shop;

8.0 m3/day - mining; and

40 m3/day - road and site watering (dust suppression) 3 months of the year.

It is proposed to that Weedy Bay of Lower Waddy Lake be used as the freshwater source during

mining activities.



Weedy Bay is relatively small bay located at the north end of Lower Waddy Lake. Weedy Bay has a

mean depth of 2.29 m and a maximum depth of 5.10 m. The total surface area is approximately

10.04 ha and the shore length measures 0.81 km. The volume is approximately 0.23 x 106 m

3, with

over 60% of the volume within the 0 to 2 m depth range. There were no islands in Weedy Bay.

The predicted water use by the Golden Heart site (with no recycling) is anticipated to be well below

the long term sustainable yield of the Lower Waddy Lake basin and, as such, withdrawal of water to

facility mine operations will have no discernible or measurable effect on Weedy Bay, Lower Waddy

Lake or the aquatic habitats within the bay or lake.

The fresh water intake in Weedy Bay will consist of an electrically driven pump which will be

suspended from a floating intake structure. The intake structure will be accessed using a floating

walkway and will be screened in accordance with the specifications defined in the Department of

Fisheries and Oceans Canada Freshwater Intake End-of-Pipe fish Screen Guideline. The proposed

location of the freshwater intake is shown on Figure 3.

Mine Water Recycling

During mining activities, Golden Band intends to maximize the recycling of mine water inflows at

the Golden Heart mine in order to reduce the amount of Weedy Bay fresh water consumed and the

amount of water that must be pumped to surface and discharged to the environment. This may

include recycling water from the muskeg area downslope of the mine water settling ponds back to

the mine.

Mine water recycling has proved very successful during the underground exploration and mine

development at the Roy Lloyd (Bingo) mine where groundwater inflows into the mine are recycled

and have significantly reduced the need to use surface water in underground activities such as

drilling.

Site Water Management

All surface runoff, the pit and underground mine water, and water captured in collection ditches from

disturbed areas, including the ore storage area, will be directed to a lined, three-cell mine water

settling pond located northeast of the open pit (Figure 11). Water from within the mine will be

collected in a sump and transported to the mine water settling ponds by a suitably constructed and

sized pipeline. If necessary to prevent freezing, this line will be heat traced during winter operations.

The mine water settling ponds will be sized to handle the maximum predicted mine water inflow and

a moderately severe summer rain event such as a 1:10 year 24 hour storm event with a contingency

volume. Based on a review of the project area‟s hydrology and rain storm potential, a 1:10 year 24

hour storm would produce approximately 55.3 mm of water with some loss to wet the surface.

Allowing for infiltration, approximately 50 mm is expected to turn into runoff. Based on the

proposed site development area, excluding the mine rock pile and open pit, of approximately 4 ha,

the site will generate approximately 2,000 m3 of water during the rainfall event and therefore it is the



ponds will have a capacity in the order of 2,000 m3, with a approximate 2 m water depth and 0.5 m

freeboard. The ponds will be sized to provide sufficient retention time to allow for the settling of

suspended solids and sample collection before the water is released to the environment. The pond

capacity will be finalized as site development plans proceeds and an application will be submitted to

Ministry of Environment, for approval, prior to construction of the ponds.

Ditches will be created around the mine rock pile which will direct surface runoff to a central unlined

collection pond. Water within this pond will be directed to the mine water settling ponds on an as-

needed and if-required basis. The mine rock pile is predicted to be approximately 3.5 ha in size and

therefore during a 1:10 year 24 hour storm event, the pile may generate approximately 1,750 m3 of

runoff. The runoff collection ditch and settling ponds around the mine rock pile will be designed to

contain the runoff generated from a 1:10 year 24 hour storm, or approximately 1,750 m³ of water.

After a rainfall event, water from the water contained around the mine rock pile will be directed to

the mine water settling pond prior to being discharged to the environment.

Site topography limits the ability to direct site drainage from the site building area to the mine water

settling ponds. However, diversion and collection ditches will be constructed around this area and

runoff will be directed to a central unlined collection pond. Pumping from the pond to the mine

water settling ponds will be conducted on an as-needed and if-required basis.

Discharged mine water quality after it has passed through the three cell mine water settling pond has

been predicted based on a review of the ground water samples collected by Clifton and Associates

Ltd. and experience from the Roy Lloyd Mine. Based on this information, the settled mine water

discharge quality from the Golden Heart mine during operations is predicted to be at or below the

concentrations shown in Table 13, which are well below the federal and provincial discharge limits.

The mine water settling pond discharge water quantity and quality are predicted to have no physical

or chemical effect on areas downstream of the ponds including the muskeg area which will receive

the effluent, Weedy Bay or Lower Waddy Lake proper where Saskatchewan Surface Water

Objectives for the Protection of Aquatic Life values will be met. Notwithstanding this, monitoring of

the volume and quality of the water will be conducted at the discharge point and at a suitable point

downstream of the discharge in order to ensure that there are no impacts downstream.

Golden Band will review the recently published Mining Code of Practise and the final design of all

components of the Golden Heart site water management system will be completed in consultation

with the Saskatchewan Ministry of Environment who are required to review and approve the final

design prior to issuing the requisite Approval to Construct Pollutant Control Facilities.



Table 13: Predicted Golden Heart Discharge Water Quality

Parameter Units MMER*

(Federal) MIEP*

(Provincial) Predicted Mine Water

Discharge Quality

Arsenic mg/l 0.5 0.5 <0.01

Copper mg/l 0.3 0.3 0.01

Cyanide mg/l 1 1 <0.01

Lead mg/l 0.2 0.2 <0.01

Nickel mg/l 0.5 0.5 <0.02

Zinc mg/l 0.5 0.5 <0.1

pH Units >/=6.0 - </=9.5 >/=6.0 - </=9.5 7.5

Un-ionized Ammonia mg/l NP 0.5 0.3

TSS mg/l 15 15 10

Notes: * Maximum monthly mean: NP = Nor Present; **Not in MIEP but typically specified in MOE Operating Approvals.

Application of Metal Mining Effluent Regulations

Although it has been estimated that discharge from the mining operation will be less than 43 m3/day

and therefore less than the 50 m3/day trigger for the Metal Mining Effluent Regulations (MMER)

issued pursuant to the federal Fisheries Act, Golden Band is aware that the MMER trigger relates to

the sum of all operational drainages in any day, and not solely to that from the mine workings and

that the MMER apply to mines under development.

Golden Band will monitor the Golden Heart site discharges to confirm the facility‟s status relative to

the Metal Mining Effluent Regulations. In the event that site effluent volumes "trigger" the MMER,

Golden Band Resources will design a monitoring program that meets or exceeds MMER

requirements.

6.3.13 Mine Site Air Emissions

Mining activities at the site may result in some minimal effect on the air quality (primarily airborne

particulates [dust] and exhaust emissions from mobile equipment and electrical generation units) in

the immediate vicinity of the site. Such emissions will result from activities such as blasting, ore and

mine rock hauling, service and general vehicle traffic, and potentially wind generated dust from the

ore and mine rock stockpiles. Appropriate dust suppression measures will be taken to maintain air

quality within the standards specified in The Clean Air Regulations. In addition, all requirements

specified in The Occupational Health and Safety Regulations, 1996 and The Mines Regulations,

2003, related to emissions will be complied with.

The anticipated level and concentration of total air emissions from the development operation and

decommissioning of the Golden Heart site is fully discussed in Section 11.6 and is provided in

tabular format in Appendix VI.



6.3.14 Mine Site Hazardous Substances & Waste Dangerous Goods

Golden Band and its contractors will manage and store all hazardous substances and waste

dangerous goods in accordance with the requirements specified in The Hazardous Substances and

Waste Dangerous Goods Regulations.

Detailed design of storage facilities for materials such as explosives and chemicals have not been

completed; however, each storage facilities will be designed, constructed and operated in accordance

with all relevant codes and regulations. Each facility will contain appropriate secondary containment

in order to protect the environment, site personnel and the public. Once the final design is complete

an application will be submitted to Ministry of Environment, for approval, prior to construction of

these facilities.

Mine Site Explosives Magazines

An onsite storage facility will be required to ensure an uninterrupted supply of explosives for mining

operations at the mine site. As such, Golden Band will meet or exceed all requirements specified in

The Mines Regulations 2003.

In addition, the explosives facility will be constructed and operated in accordance with federal and

provincial regulations. The site will contain an explosives magazine and a separate magazine for

blasting accessories. The access road leading to the magazine will be within the surface lease

boundary and therefore access will be controlled and restricted to appropriately trained and

authorized personnel.

Mine Site Chemical Storage & Management

Although chemical usage at the mine site is expected to be limited, all materials will be trucked to

the mine site by a commercial hauler as required and will immediately be transferred to an

appropriately constructed storage facility that will include secondary containment designed for the

chemical(s) being stored. In each case, the commercial hauler will be required to have a Spill

Contingency Plan appropriate for the cargo being hauled and be capable of responding to an

anticipated event while transporting chemicals to the La Ronge Gold Project sites.

All chemicals will be stored in an appropriate manner and in accordance with the Hazardous

Substances and Waste Dangerous Goods Regulations. The site manager will maintain an up-to-date

record of the various substances on site and will maintain Material Safety Data Sheets (MSDSs) and

appropriate procedures for spill management, handling and clean up in an accessible location.

Mine Site Fuel Management

All fuels for equipment on site will be stored in double walled tanks which will include self-

contained secondary containment, appropriate high level alarms and pump dispensers. A Spill Kit

will be located in the immediate vicinity of the fuelling station and the actions identified in Golden



Band‟s La Ronge Gold Project Spill Contingency Plan will be implemented immediately in the

unlikely event that an unanticipated discharge takes place. The fuel storage area will be equipped

with suitable crash barriers and will be certified and/or registered as required by the appropriate

regulatory authority.

Fuel will be trucked to the site by a commercial hauler as required and will immediately be

transferred to the tanks. The commercial hauler will be required to have a Spill Contingency Plan

and be capable of responding to an unanticipated discharge while transporting fuel to the site.

No fuels, oils or other hazardous substances will be stored within 100 m of any water body and no

equipment maintenance or re-fuelling will be conducted within 100 m of a water body.

Mine Site Propane Fuel

Approximately 18,000 USWG of propane will be stored at the Golden Heart site in a tank(s)

provided by the material supplier. The tank area will be constructed with suitable crash barriers and

will be operated in accordance with all applicable regulations. Propane will be delivered by a

commercial supplier on an as-needed basis and immediately placed within the appropriate tank. The

commercial hauler will be certified and capable of responding to an unanticipated discharge in the

unlikely event that such a situation occurs.

All provincial regulations relating to the handling and storage of propane will be adhered to.

Mine Site Lubricants and Coolants

Various lubricants and coolants required for regular maintenance of equipment will be stored on site.

Each one of these materials is stored, handled, recycled or disposed of in an appropriate manner. The

site manager will maintain an up to date record of the various lubricants and coolants on site and will

maintain MSDSs and appropriate procedures for spill management, handling and clean up in an

accessible location.

Used oil and lubricants on site will be stored in appropriate containers and transported off site for

appropriate recycling or disposal.

6.3.15 Mine Site Infrastructure

Mine Site Electrical Power

Electrical power will be produced on the Golden Heart mine site with installed diesel powered

generators. These generators will have appropriate secondary containment capable of containing a

spill of fuel, oil and/or antifreeze in the unlikely event that an unanticipated discharge of such

material occurs. It is anticipated that the site will is expected to have two 500 kW generators.

Fuel for the generators will be stored in double walled tanks located immediately adjacent to the

generator building. Fuels lines connecting the fuel tank to the generator will be installed in a manner



that provides containment of any leaks. The fuel tank, fuel lines and generators building will be

inspected regularly.

Mine Site Administration

Temporary trailers will be installed to provide office space, on-site first aid and dry facilities. These

site support facilities will be located in an area northeast of the pit (Figure 11). The support facilities

will be temporary structures consisting of Atco or equivalent trailers which will be in place for the

duration of site operational activities. At the conclusion of these activities, the trailers will be

removed from the site and the areas will be decommissioned in accordance with the approved

decommissioning and reclamation plan.

Mine Site Sewage Management

Wash water will be supplied to the site support facilities by a fresh water line and a surge tank.

Sewage will be directly discharged into a holding tank.

All facilities will be constructed and operated in a manner that meets or exceeds the Saskatchewan

Plumbing and Drainage Regulations and the applicable Saskatchewan Onsite Wastewater Disposal

Guide, 2009. All plumbing and small volume sewage systems plans will be submitted for review and

permitting by the local Health Region.

Sewage will be disposed on site, in a manner approved by the Health Region, or pumped into a truck

and hauled off site using a licensed septic hauler for disposal in a Ministry of Environment approved

facility. The preferred option for sewage disposal at present for the Golden Heart site is to develop

an approved on-site sewage treatment facility, such as the infiltration trench which is being used at

the Roy Lloyd (Bingo) mine site. The plumbing and septic sewage system proposed will be

submitted to the Mamawetan Churchill River Health Region for review and approval prior to

construction in order to secure a rural plumbing permit.

Should on-site disposal not be the selected option, sewage will be hauled to Brabant. It is Golden

Band‟s understanding, based on preliminary discussions with Ministry of Environment staff, that the

capacities of the municipal lagoon system at Brabant should not be an issue, in the event that this

strategy is employed, Golden Band will negotiate agreements with the community for approved to

use the lagoon, secure contracts with licensed hauler(s) and ensure year round access to the lagoon is

provided.

Mine Site Potable Water

It is currently anticipated that potable water will be trucked to the site in the form of bottled water

and stored in suitable containers. This will eliminate the need for onsite treatment. However,

filtration and disinfection of non-potable water for personnel hygiene use (washing, showering, etc.)

will be conducted to ensure employee safety. On site treatment of water for potable consumption will

also be evaluated.



Consideration to the requirements of the Health Hazard Regulations (2007), Technical Guidelines

#554, and the Saskatchewan Plumbing and Drainage Regulations (1997) will be adhered to during

the design of these facilities in order to provide onsite water to the employees for showering and

washing.

Water usage by site personnel is expected to be in the order of 3.8 m3/day, based on a usage of

150L/person/day and a workforce of 25 people.

6.4 Golden Heart Gold Mine Support Facilities and Services

6.4.1 Administration

Golden Band‟s head office is located in Saskatoon. The head office will be responsible for

development and implementation of corporate policy and direction, however, it is the intent to allow

each site to have administration and support staff. Most of these staff will be centred at the Jolu site

with a limited number located at the Golden Heart site.

6.4.2 Road Access

Access roads to the Jolu mill site currently exist and are maintained. The existing trail to the Golden

Heart site will need to be upgraded to improve trafficability.

Golden Heart Mine Access Road

The existing 13 km (approximately) trail from Highway No. 102 used to access the Golden Heart site

during exploration will require upgrading in order make it safe and to handle larger and more

frequent vehicular traffic. The upgraded road will generally follow the same route as the existing

trail; however the upgrade may include minor grade adjustments, widening of the right-of-way,

resurfacing with crushed rock as required and the installation of clear span bridges and potentially

culverts (assuming the Saskatchewan Ministry of Environment and Fisheries and Oceans Canada

approvals at locations where the road crosses existing streams). The proposed bridge locations and

designs will be provided to the Ministry of Environment representatives for review and issuance of

appropriate approvals as required prior to construction An Operational Statement will also be

completed for each installation and provided to the local Fisheries and Oceans Canada office. Prior

to the installation of culverts, Golden Band will provide Fisheries and Oceans Canada and the

Saskatchewan Ministry of Environment with additional detailed information on creek crossings

(particularly crossing No. 1 and 4) in order to demonstrate that there are no impacts to fish habitat as

a result of culvert (or bridge) construction.

Due consideration, as discussed in Section 12.12.2., will be given to the protection of the rare plant

occurrences along the road corridor.

During bridge construction, Golden Band will adhere to the Fisheries and Oceans Canada,

Saskatchewan Operational Statement, Clear Span Bridges, Version 3.0 (or subsequent iterations)



and make every effort to minimize negative impacts during the construction and use of all stream

crossings.

Details of the access road upgrade are conceptual at this time. Once the project receives Ministerial

Approval pursuant to the Environmental Assessment Act, detailed designs will be prepared and

submitted to the appropriate agencies for review and approval prior to its construction.

During access road construction, any available topsoil will be removed and temporarily stockpiled

for use during decommissioning of the Golden Heart site and access road. In addition, any and all

contaminated soils encountered during construction, operations and decommissioning of the all of

the La Ronge Gold Project sites will be handled in an appropriate manner and in a manner approved

by the appropriate regulatory agency. Any unused portions of the currently existing access trail will

be decommissioned and reclaimed by scarifying the road bed and the replacement of all duff, logs

and organic debris across the cleared areas in order to stimulate natural re-vegetative process. Gravel

from borrow areas along the road corridor will be utilized for road upgrades.

During the conduct of the Golden Heart project environmental assessment, contact and discussions

were held with three individuals who currently reside in the area of the proposed Golden Heart mine.

All were members of the Lac La Ronge Indian Band and all have a lifelong history of using the area

of the proposed mine for traditional pursuits such as fishing, hunting and trapping.

During those discussions, two of the individuals identified that they maintain two separate cabins

located at separate locations on or near Lower Waddy Lake and regularly harvested fish from the

lake for their own consumption. One of the individuals also indicated that he maintains an active trap

line in the area north and east of Lower Waddy Lake and that the line does traversed the proposed

Golden Heart mines site. Although the individual indicated that he does rely on wild game for a

portion of his food consumption, he has not harvest any large game (i.e. moose) in the area of the

proposed mine for at least ten years and does not normally hunt in the area of Weedy pond nor does

he use the Weedy Pond area for the harvest of any type of forest products.

During discussion with a second individual, he indicated that he also actively trapped and that his

trap line traversed the lower portion of the proposed access road to the Golden Heart site.

During discussions, none of the parties was aware of any places of special or historical significance

in the immediate area.

In addition, in January 2011, information related to the proposed project (locations, proposed site

layout and access road routes) was shared with the GIS personnel with the Kitsaki Management

Limited Partnership (the development arm of the Lac La Ronge Indian Band) who is conducting GIS

mapping for the Lac La Ronge Indian Band. The initial response received from that agency indicated

the project as proposed did not appear to raise any Treaty or traditional land use issues.

Once Ministerial Approval pursuant to the Saskatchewan Environmental Assessment Act has been

issued for the Golden Heart Project, Golden Band will secure a Surface Lease to cover the Golden



Heart site and the associated access road to the site. In addition, prior to undertaking any

construction activities on the access road upgrade, all necessary permits [including, but not

necessarily limited to Aquatic Habitat Protection Permits and Forest Product Permits] will be secured

from the appropriate regulatory agencies.

6.4.3 Ore Transportation

It is planned to haul mill feed from the mine site to the Jolu mill stockpile using 30-tonne capacity

highway tractor-trailer units. For any transportation of mill feed through sections of Highway No.

102, Golden Band will enter into a Transportation Agreement with the Ministry of Highways and

Infrastructure to allow for the use of higher payload transportation over public highways.

At full production, this will mean that approximately 12 round trips per 24-hour day will be made

between the Golden Heart site and the Jolu mill. The addition of these trucks to the normal large

truck traffic on Highway No. 102 is expected to be a minimal incremental increase to the currently

observed level of truck traffic on the highway and therefore have minimal impact on dust and

particulate levels to human and ecological receptors.

The operation of the ore haul trucks will be outsourced to a qualified contractor. The outsourced

services will include the provision and maintenance of the tractor units and suitable heavy duty ore

trailers as well as the staffing of qualified transport truck drivers.

Careful attention will be paid to the loading of the trucks to ensure that during transport on Highway

No. 102, stray materials (rocks) do not fall from the trucks during travel.

6.4.4 Personnel Transportation

All site employees at the Golden Heart mine site will be housed off site in local communities. This

will require two trips per day between the community and the mine site.

It is anticipated that accommodations will be secured in the Northern Settlement of Brabant Lake to

house employees and contractors working at the Komis/EP mine site (previously approved mine

development) as well as the majority of the individuals employed at the Golden Heart site.

Staff at the Jolu site are housed at the Star Lake camp and transported to work by a bus or van.

The transportation services will be provided by a qualified contractor(s) or employees.

6.4.5 General Waste Management

Domestic Waste

Domestic waste will be handled in an appropriate manner. For example, “household waste” will be

collected and temporarily stored in wildlife proof containers. Uncontrolled burning of garbage,

plastics and other waste (excluding clean wood) will be strictly prohibited at the Golden Heart site.



Any waste that cannot be reused or recycled will be disposed of by hauling the material off site for

disposal in an approved waste disposal site (i.e. La Ronge or Brabant landfills).

Industrial Waste Management

Initial plans are for the creation of a solid waste disposal area located away from natural drainage

courses at the Golden Heart site for all non-hazardous materials. Other waste materials generated at

the Golden Heart mine will be recycled (e.g. spent lubricants) or disposed of in accordance with

appropriate regulations.

6.4.6 Spill Response & Management

Golden Band has established an Emergency Preparedness & Response Plan and Spill Contingency

Plan and this plan will be updated to reflect activities at the Golden Heart site. The revised plan will

continue to consist of a number of Environmental Protection Plans (EPP) focusing on specific

activities and/or situations. These EPPs document proactive as well as reactive procedures to be

implemented to prevent and/or mitigate accidental releases or spills of potentially harmful

substances. The updated plan will include general contingency planning including, but not

necessarily limited to;

actions to be taken in the event of a spillage of contaminated waters outside of

contained areas,

action to be taken in the event that treated effluent approaches or exceeds quality

limits specified in The Mineral Industry Environmental Protection Regulations,

1996, or the Metal Mining Effluent Regulations and/or specified in the Approval to

Operate Pollutant Control Facilities; and

an action plan to deal with spills of specific hazardous materials used on site.

a general action plan to deal with spills of unspecified hazardous materials.

The La Ronge Gold Project Emergency Preparedness & Response Plan, and La Ronge Gold Project

Spill Contingency Plan for all La Ronge Gold Project sites will be reviewed at least annually by

company management and on an as-needed basis by employees and supervisors. The EPPs are

designed as living documents which can be amended as improved procedures are identified.

In any and all cases of an unanticipated discharge or upset condition on the site, the Golden Band

policy is as follows:

1. Protect the health and safety of persons in the area.

2. Protect the environment.

3. Protect the facility and equipment.

In the event that a reportable spill does occur, the person having control of the pollutant that has been

spilled shall report the occurrence to the Ministry of Environment, Spill Control Center at 1-800-

667-7525.



The report shall, at a minimum, contain the following information:

Reporting agent;

Location and time of the spill;

The type of material spilled;

Quantity of material spilled;

Details of any action taken and/or proposed to be taken at the spill site; and

A description of the location of the spill and the immediate surrounding area.

The person having control of the spilled material and the owner of the material will then submit a

written report to the Ministry of Environment within seven days of the reportable spill taking place.

The written report will, but may not necessarily be limited to, the following:

Location of and time of spill;

The type and quantity of material spilled;

A description of the spill site area;

Details of any remedial action taken with respect to the spill;

The method and location of disposal of spilled material, clean-up material and contaminated

soils; and

Changes in procedures or actions undertaken to ensure similar events are not repeated.

6.4.7 Labour Force & Economics

The La Ronge Gold Project is expected to employ approximately 100 full time employees although

the total at any one time will vary depending on activities and the schedule of mining. Of that total, it

is expected that the Golden Heart mine will each employ approximately 25 people and the remaining

75 will be dedicated to the operations and various activities related to the Jolu mill site and other

satellite mines. The number of estimated workers employed is expected to be approximately 25, on a

rotational basis, with 12 to 13 people per rotation. Golden Band intents to hire predominantly

northerners for operator position at the site, although the number and locations of their home

communities is difficult to predicted at this stage in the proposed project.

The entire La Ronge Gold Project annual payroll is estimated to be between $25,000,000 and

$30,000,000 and will require the expenditure of approximately $150,000,000 in the purchase of

goods and services.

The payroll and expenditures are total expenditures obtained from the Pre-feasibility for the La

Ronge Gold Project and were based on an approximate 3 year project life, or an approximate

annualized expenditure of approximately $8,300,000 to $10,000,000 on payroll and $50,000,000 in

the purchase of goods and services. This is thought to be a reasonable approximation for the project

when the Golden Heart Gold Mine is in production.





6.4.8 Recreational Fishing

Employees and contractors of Golden Band are expected to form recreational clubs for undertaking

after hours recreational activities such as fishing. The employees and contractors working at the

Golden Heart mine will be housed in nearby communities and therefore additional fishing pressures

in the vicinity of the site is expected to be minimal. Golden Band is committed to work with local

fisheries officials to ensure that recreational fishing in lakes surrounding the sites does not cause

undue pressure on the local fisheries populations. Restrictions, such as catch and release, or fishing

limits will be considered, if deemed necessary. Any employees or contractors will be required to

record fish capture data in the vicinity of the Golden Heart site.

6.5 Milling – Jolu Site

6.5.1 Introduction

The various components of the Jolu mill, JAG/Mallard TMF and water treatment facilities are fully

described in the Jolu Central Mill Gold Project Environmental Impact Statement (Golden Band

2009). The mill is currently operating and Golden Band maintains a valid Approval to Operate

Pollutant Control Facilities for the operation of the La Ronge Gold Project Jolu Mill site and Star

Lake Camp (Approval No. PO10-171) issued January 11, 2011 by the Saskatchewan Ministry of

Environment.

No changes are required in the Jolu mill, JAG/Mallard TMF or the Jolu water treatment facilities and

no changes are anticipated in the water quality or quality as a result of the milling of the Golden

Heart ore at the Jolu site.

6.5.2 Milling – Jolu Site

Golden Band will mill all Golden Heart ore at the existing 700 t/day Jolu mill.

The unit operations for the Jolu mill will be as follows:

Stockpiling;

Two-stage crushing;

Ball mill grinding;

Gravity separation;

Gravity concentrate leaching;

Cyclone overflow and thickening;

Leaching;

Carbon In Pulp process;

Carbon handling and treatment;

Electrowinning;

Smelting;

Tailings disposal and process water reclamation; and,



Effluent treatment.

No changes are required to the milling circuit as a result of the introduction of the Golden Heart

deposit ores.

Milling Circuit

Figure 12 provides a generalized illustration of the Jolu mill circuit.

Crushing and Grinding

Run of mine ore is delivered from the satellite mines by highway truck to the Jolu site and placed in

a surge pile for feeding by front end loader into the grizzly. Grizzly undersize material is crushed on

a 7-day per week, one shift per day basis at a production rate of 700 t/day in a two-stage circuit

comprising a jaw crusher and a cone crusher in closed circuit with a sizing screen.

The Jolu mill crushing system is designed to operate at 70 t/hr, with a daily operating time of 10

hours per day.

Primary Crushing - The ore is dumped directly from the trucks onto a stationary grizzly 4.8 x 4.2 m.

This grizzly has 400 mm apertures for sizing and will prevent oversize rocks from entering the

circuit. A rock breaker is installed to reduce any oversize material.

The surge bin below the grizzly has a 50 t capacity. The surge bin discharges via a vibrating feeder

to a 93kW (125HP) Jaw crusher, a 762 x 915 mm, with a 65 mm (approximate) opening (2½ inch)

Belt conveyors transfer the crushed material to the double deck 1524 x 3660 mm 15 HP crushing

screen which returns any rock over 11mm to the crusher. A metal detector ahead of the screen

ensures that no metal is allowed to be fed to the secondary crusher.

Secondary Crushing - Material under 11 mm passes to a secondary (150 kW Simons cone) crusher

with a 6 mm discharge (1295 mm diameter 200 HP).The crushed ore is then transferred by belt

conveyor (No.3) to the fine ore bin, which has a capacity of 400 t.

Ball Mill Grinding - The grinding circuit reduces the size of the crushed ore to the required size for

gravity separation and the leaching processes. Lime is fed to the mill as required in order to maintain

the slurry pH value at between 10.5 and 11.0.

A trommel screen on the mill discharge returns oversized ore for extra grinding and prevent ball

fragments from entering the mill slurry pumps. Blends of 1/3 proportion of four, three and two inch

balls is used to maximize ball mill efficiency.

The ground ore is then discharged into the cyclone feed pump box. The slurry density is measured in

the feed line to the cyclones and dilution (recycle) water is added to the pump-box to maintain the



optimum density (approximately 54 percent w/w solids). The cyclone feed pump automatically

adjust its capacity (using VFD control) as the pump-box level rises and falls.

The cyclone overflow product has a particle size P80 of 120 µm. and a pulp density of approximately

35 percent. Oversized particles are discharged thought the cyclone underflow back to the mill, at

about 70 percent slurry density, or to the gravity circuit.

A 919 x 1830 mm vibrating trash screen (0.6 mm opening), removes trash from the slurry, which

then proceeds to the leach circuit via the thickener.

Gravity Concentration and Processing

A CD-20 semi-continuous Knelson Concentrator processes the feed to the gravity circuit which

includes:

A high capacity vibrating screen (to remove oversize particles) step deck screen.

Intensive cyanide leaching system (Acacia Reactor) to leach the precious metals from the

gravity concentrate.

The concentration cycle lasts between 25 and 30 minutes and will accumulate 8-10 kg of a

concentrate, at a design gold concentration of ~6,000 g/t. This gravity circuit recovers 40-45 percent

of the feed gold; however, the cycle time, the concentrate production rate and gold recovery is highly

dependent on the ore type and ore gold content.

After each concentration cycle is complete, gold concentrate is flushed from the concentrating cone

to the Acacia storage cone. Flushing is done using reclaim water for 30 seconds at a flow rate of

approximately 14 m3/h. During this time, the concentrator is off-line and the entire cyclone

underflow product is returned to the mill.

The concentrate is collected in an Acacia storage cone, which provides a day storage capacity of 700

kg for batch leaching (cyanidation) in the Acacia reactor. Any excess water is drained off, or

overflows to the grinding area sump.

The leach solution is made up in the 1.2 m3 reaction vessel feed tank, which is a part of the Acacia

reactor. An intense leach solution of 0.3 percent sodium hydroxide and 2.0 percent sodium cyanide

is designed to extract 99% of the gold.

Leach Feed Thickener

The leach feed thickener (12.2 m diameter-3.5kW motor) prepares the finer cyclone overflow

material for leaching by raising the pulp density to 55 percent prior to the addition of reagents using

a self-diluted feedwell system (SUPAFLO® Floc-Miser), which combines deaeration and mixing

requirements in a single unit. Flocculent consumption rate is approximately 30 g/t. In addition

variable speed drive units increase flow capacity (one operating one standby).



Leaching Circuit

The thickened slurry is leached with cyanide to dissolve the gold from the gangue components.

Once the mill is operating at 700 tpdt hydrogen peroxide will be added to assist the leaching

process.

Each of the existing leach tanks has a diameter of 6500 mm and a total height of 7900 mm (of which

600 mm is a freeboard). Every tank is equipped with a 15 kW mechanical agitator (25 hp). The

existing (500 Nm3/h) air compressor will be supported by a new hydrogen peroxide addition system,

to accelerate the leaching process once the mill is processing at a rate of 700 tpd.

Cyanide is added at 20 percent solution strength to the first two tanks, and the free cyanide

concentration in the leach circuit should not exceed 0.2 g/L in the last tank. The four tanks provide a

total leaching time of 29 hours.

Carbon In Pulp (CIP) Circuit

After leaching, wherein the gold is extracted from the gangue and enters the aqueous portion of the

slurry, carbon is added to adsorb and extract the gold.

Leach slurry from the last leach tank flows by gravity to the CIP circuit. The CIP circuit consists of

six 3.6 m diameter x 4.3 m tanks equipped with air swept subvertical screens, air lifts for carbon

transfer and 2 kW (3 hp) driven agitators.

The slurry flows by gravity from the first tank to each successive tank, while the carbon is advanced

(counter current) from the last tank towards the first. The slurry flow is continuous and the carbon is

advanced on an intermittent schedule.

The slurry retention time per tank is approximately 0.73 hours. The CIP tanks are arranged in-line

and the pulp overflows from one CIP absorption tank to another through a transverse screen launder

moulded in the tanks. All tanks are interconnected by a 100 mm line feeding into the feed box of the

downstream tank. Each CIP tank can be by-passed by placing the plug in the feed box, which forces

the pulp to overflow directly to the launder. The transfer screens launders consists of 0.85 mm

opening replaceable screen panels and downstream weirs. These weirs keep the screens flooded on

the inside of the launder, and are air swept to avoid any carbon build-up from plugging the screen

mesh. There is a secondary baffle to prevent loss of carbon through a faulty screen. During normal

operations there is approximately 900 kg of carbon is in each CIP tank (or 20 g/L of slurry).

Advancement of carbon may take place once or twice a shift for a period varying from 20 minutes to

one hour. The slurry from the CIP tank No.6 flows to the horizontal vibrating carbon safety screen

equipped with 0.6 mm cloth to reclaim any fine carbon, or carbon lost due to a hole in a launder

screen. After complete carbon removal this slurry is pumped to the tailings pond, and samples are

taken for process control and metallurgical accounting.



After carbon has migrated to the first CIP tank, it is fully loaded and is removed by air lifting the

slurry over a loaded carbon wash screen with 0.6 mm screen cloth. The carbon, containing about

3,000 g/t of gold is transferred into the acid wash vessel, where it is processed in batches of

1.25 tonnes (3 m3).

Regenerated or fresh carbon is transferred periodically to CIP tank No.6 as required to maintain the

designed carbon concentration in slurry of 20 g/L.

Carbon Washing, Stripping, Regeneration

Carbon washing, stripping and regeneration are batch and semi continuous processes. The 1.25 t

(3m3) batch of carbon is transported to three process stages and accordingly treated. The stages are:

Carbon acid washing;

Carbon stripping; and

Regeneration (continuous ).

Adequate surge capacity between each stage provides process overlap with normal operation of the

carbon transfer system from the CIP stage. Operating schedule (frequency of batch operations)

mainly depends on gold concentration in the leaching slurry and the gold load to the carbon.

About 1.25 t (3.0 m3) of loaded carbon is screened into the acid wash vessel every 31 hours.

Carbon is acid washed with nitric acid and neutralized with caustic prior to being educted to the strip

vessel. Both solutions are prepared in the acid holding tank. Two bed volumes (6m3) of 0.5 percent

HNO3 solution is used for acid wash. The carbon then is washed with one bed volume (3m3) of

1 percent NaOH solution to neutralize the acid. The wash solutions are directed to the tailings

pumpbox via the acid wash area sump.

The loaded washed carbon is then transferred to the strip vessel by the eductor No 1. Fresh water for

this eductor and the other three eductors is supplied from the eductor water tank and pump. The

same flow rate of 5.7 m3/h of feed water is used for all four eductors. It estimated that the carbon

concentration in the transport slurry is 29 percent (wt.).

Stripping is accomplished with a hot barren solution (1 percent NaOH and 0.4 percent NaCN). The

barren solution is prepared and stored in 2090 diameter x 2090 mm high covered and insulated

barren solution tank. The following reagents are added to the barren solution tank: fresh water

(pumped from the fresh water tank), NaOH (powder, manually added), NaCN (20 percent stock

solution pumped from the cyanide mixing tank). The barren solution is heated prior to stripping to

135ºC by passing the solution through two heat exchangers, one employing heat recovery from the

return hot pregnant solution (heat recovery exchanger) and a second using the inline electric heater.

The hot barren solution is introduced from the bottom of the strip vessel. Pressure in the strip vessel

while stripping, is maintained at 450 kpa by the barren solution pump (7.5 HP) working against the



pressure reducing valve on the vessel outlet. Approximately 12 bed volumes (BV) of solution are

required to reduce the carbon gold loading to 150 g/t. The solution flows through the carbon bed,

and discharges from the top outlet to the 2090 diameter by 2090 mm pregnant solution storage tank.

Pregnant solution temperature is reduced to 90ºC as it passes thru the heat recovery exchanger. The

stripping flow rate will be 1.33 BV/h (4m3/h).

The 12 bed volumes of solution are pumped in 16 hours in order to complete a batch strip. After

stripping the carbon is washed with two bed volumes of fresh water (the same flow rate). Stripping

and the electrowinning processes operate simultaneously by continuous circulation of the strip

solution through the column and the electrowinning cell in series.

Washed carbon is transferred from the strip vessel tank by eductor No.3 to the dewatering screen

with 0.6 mm cloth. The carbon is collected in a kiln bin from where it is withdrawn by a screw

conveyor to feed the carbon reactivation kiln at the flow rate of 25 kg/h. That flow represents about

60 percent of total average flow of carbon through the regeneration circuit.

The kiln shell is externally heated by propane burners. Two heating zones are provided. The initial

zone has temperature 600-700ºC, and the second zone to remove organic impurities operates at

700ºC for 30 minutes.

Regenerated carbon discharges from the kiln through the sealed chute and is collected in a water

filled quench tank. The regenerated carbon is transferred by eductor up to the sizing screen equipped

with 1 mm cloth. The plus 1 mm carbon is delivered to the regeneration carbon holding bin. Fresh

make-up carbon after conditioning with water in the attrition tank is also transferred by eductor up to

the sizing screen and its overflow combined with the regenerated carbon in the regeneration carbon

holding bin.

To maintain the required carbon concentration in the CIP tanks, a mixture of the regenerated and

fresh carbon is transferred periodically by eductor No.4 to the CIP tank No.6. Residual gold in the

regenerated carbon should not exceed 150 g/t.

Electrowinning, Refining

The Acacia pregnant solution (1 m3/h, 2000 mg/L Au, 1.5 h/day) and the pregnant solution from the

carbon strip operation (4 m3/h, 80 mg/L Au, 10 h/day) will flow together and feed the electrowinning

cell. Gold (and some impurities) electroplates onto the cathodes, thus the concentration of gold in

solution diminishes. The continuous circulation of the strip solution through the barren solution

tank, pregnant solution tank, and the electrowinning cell finally produces the barren solution with the

gold concentration of <5 mg/L. This solution (5.8 m3) will be discharged to the CIP circuit as a

bleed stream.

The electrowinning cell (3.3 m3) has 24 steel wool cathodes. It operates at 1,300 Amp, 6V D.C.

supplied by the rectifier. It is assumed that cathode loading would be 2 kg of Au per 1 kg of steel.



The cathodes loaded with gold are washed with water, manually transferred to the drier and finally

smelted with the fluxes in the bullion furnace. For direct smelting of steel wool cathodes a strongly

oxidizing flux is recommended. The composition of the flux is 30 percent sodium borate,

125 percent silica, 150 percent sodium nitrate, and 100 percent loaded cathodes. The gold doré will

be shipped off site bi-weekly for refining.

No changes are required in the Jolu mill, JAG/Mallard TMF or the Jolu water treatment facilities and

no changes are anticipated in the water quality or quality as a result of the milling of the Golden

Heart ore at the Jolu mill.

6.5.3 Golden Heart Tailings Characterization

Significant investigation of the character of the tailings generated from the milling of the Golden

Heart ore at the Jolu mill has been conducted. In 2009, Golden Band submitted representative sample

of Golden Heart ore to SGS Canada Inc. for analysis in order to accurately characterize the tailings

that can be expected from the milling of the ore. The results of this work are considered

representatives of the tailings that will be generated during the milling of Golden Heart ores.

Physical Properties

Decant liquids from bench tests were analyzed by SGS Canada Inc. for trace constituents. Table 14

presents the results of this analysis.



Table 14: Tailings Decant Leach Solution Analysis

Parameter Units Total Dissolved

pH Units 10.7 -

Conductivity µS/cm 2770 -

Alkalinity mg/L as CaCO3 882 -

Acidity mg/L as CaCO3 <2 -

Hg µg/L 0.2 0.2

Ag mg/L 0.0080 0.0074

Al mg/L 7.94 1.6

As mg/L 0.115 0.111

B mg/L 0.020 0.018

Ba mg/L 0.0321 0.0092

Be mg/L <0.0002 <0.0002

Bi mg/L <0.0001 <0.0001

Ca mg/L 19.7 17.3

Cd mg/L 0.00267 0.00254

Co mg/L 0.0836 0.0763

Cr mg/L 0.241 0.226

Cu mg/L 3.83 3.76

Fe mg/L 28.5 25.7

K mg/L 60.3 61.1

Li mg/L <0.002 <0.002

Mg mg/L 1.64 0.076

Mn mg/L 0.0963 0.0326

Mo mg/L 0.0547 0.0538

Na mg/L 498 496

Ni mg/L 0.121 0.119

P mg/L 0.25 0.09

Pb mg/L 0.0030 0.0008

Sb mg/L 0.031 0.031

Se mg/L <0.01 <0.01

Sn mg/L 0.0008 0.0002

Si mg/L 26.8 10.5

Sr mg/L 0.0854 0.0675

Ti mg/L 0.278 0.006

Th mg/L 0.00057 <0.00004

Tl mg/L <0.002 <0.002

U mg/L 0.00022 0.00010

V mg/L 0.126 0.114

Y mg/L 0.0015 0.00011

Zn mg/L 0.55 0.54



Table 15 and 16 shows the results of the ABA and NAG testing conducted on bench scale tailings

samples by SGS Canada Inc. The NP:AP ratios indicate a marginal potential to generate acid and

the pH of the tailings after cyanidation will range between 10 and 10.5.

Table 15: Tailings Acid Base Accounting (ABA)

Parameter Units Tailings

Paste pH Units 9.16

Final pH Units 1.6

NP t CaCO3/1000 t 31.6

AP t CaCO3/1000 t 44.3

Net NP t CaCO3/1000 t -12.7

NP/AP Ratio 0.71

S % 1.51

S= % 1.42

SO4 % 0.09

C(T) % 0.27

CO3 % 0.98

Table 16: Tailings Net Acid Generation (NAG)

Parameter Units Tailings

Sample Weight g 1.5

H2O2 mL 150

Final pH Units 2.8

NaOH Normality 0.1

NaOH to pH 4.5 mL 3.3

NaOH to pH 7.0 mL 4.6

NAG (kg H2SO4/tonne) @ pH = 4.5 11.0

NAG (kg H2SO4/tonne) @ pH = 7.0 15.0

The results of this testing indicate that the tailings composite sample is acid generating. The

complete results from this test work are provided in the report entitled An Investigation of The

Recovery of Gold from The Golden Heart Deposit Samples prepared by SGS Canada Inc. (Appendix

V). A water cover will be maintained over the tailings, therefore minimizing any acid generation

from the tailings.

Based on these results, the tailings generated from the milling of Golden Heart ores will be similar to

those currently generated by the Jolu mill and no changes are anticipated in the operation of the

JAG/Mallard TMF, or water treatment facility. Treated effluent quality and quantity are anticipated

to be very similar to that currently anticipated and no changes are expected.

Any potential changes to the predicted quality of water within Yew Lake due to seepage from the

Mallard TMF, was also assessed to determine the potential for changes in MIEP regulated

parameters. The mass balance presented in the Jolu Central Mill Gold Project Environmental Impact



Statement (Golden Band 2009) which was developed using the tailings solution analysis of the ore

from various mines which were to feed to TMF, was re-run using the total concentration of arsenic,

lead, nickel and zinc from Table 14. As noted in Section 6.5.4, the final tailings elevation is not

expected to be higher due to the milling of ore from the Golden Heart mine as the volume of tailings

which will be placed in the Mallard TMF has not substantively changed from what was originally

presented in the above noted EIS. Since the final tailings elevation will remain consistent with what

was previously predicted and since the modelling was conducted for a higher tailings elevation, the

volume of seepage predicted is not expected to increase.

Although the Golden Heart ore will be blended with ores from existing operating and/or approved

mine site, the mass balance was updated using Golden Heart ore alone in order to verify that there

are no additional impacts associated with the mill of this ore. The conservative mass balance using

Golden Heart tailings as the sole source shows the concentration of arsenic, lead, nickel and zinc in

Yew Lake to be 0.00017 mg/L, 0.00002 mg/L, 0.00027 mg/L and 0.00095 mg/L, respectively. This

compares to the original prediction of 0.00004 mg/L, 0.00001 mg/L, 0.00016 mg/L, 0.00079 mg/L

for arsenic, lead, nickel and zinc provided in the 2009 EIS. The concentration of copper was not

assessed as the source term (tailings decant solution) for the Golden Heart ore as it is approximately

an order of magnitude below the concentration used in the original mass balance.

The new mass balance shows slight changes in the concentrations of parameters however the

concentrations remain below both Surface Water Quality Objectives – Surface Water Quality

Objectives for the Protection of Aquatic Life (Saskatchewan Environment 2006) and the existing

concentrations observed in Yew Lake and therefore the impacts are expected to remain negligible.

The source term for cyanide used in the mass balance and groundwater modelling presented in the

Jolu Central Mill Gold Project Environmental Impact Statement (Golden Band 2009) was based on

the average concentration of total cyanide within Cell B of the Mallard TMF in 1989 and was 21.9

mg/L. The lowest and highest cyanide levels during that period were 2.1 mg/L and 130 mg/L,

respectively. Recent operating data is available for the concentration of total cyanide within the

water in the JAG TMF. The concentration of cyanide in a sample collected on April 24, 2011 was

49.4 mg/L, on June 14, 2011 was 23.3 mg/L and on July 26, 2011 was 2.75 mg/L. During this

period the mill was processing ore from the Roy Lloyd mine.

A sample of the tailings discharge to the JAG TMF is also collected on a monthly basis. The

concentration of total cyanide in the water feeding the JAG TMF between February 2011 and June

2011 ranged from 30.3 mg/L to 453 mg/L, with an average concentration of 230 mg/L. During the

operation of the mill in 2007 the low, high and average concentration of total cyanide in the water

feeding the Mallard TMF was 125 mg/L, 870 mg/L and 506 mg/L, respectively.

The concentration of cyanide feeding and within the JAG TMF appears to be consistent with past

successful operating experience but will continue to be monitored on a regular basis.



The concentration of cyanide within the Mallard TMF is expected to continue to be comparable with

the historic concentrations as a result of milling Golden Heart ore as no changes to the process will

be required and minimal changes in reagent consumption, including cyanide, are expected. The ore

from the Golden Heart mine will be blended with ore from existing approved mines as well.

6.5.4 Tailings Management – Jolu Site

Golden Heart Mine Project Tailings Management Options

Figure 4 illustrates the location and layout of the JAG/Mallard TMF.

The Jolu mill and JAG/Mallard Tailing Management Facility are currently in existence, and when

the Mallard TMF is expanded (as approved) and is federally approved, the facilities will be

combined and will form one TMF. As the JAG/Mallard TMF has sufficient volume capacity to

contain all of the tailings generated by Golden Heart ores and the introduction of Golden Heart ores

will not impact the quality of effluent or the eventual decommissioning of the facility, no other

options were considered for the management of the tailings generated from the milling of the Golden

Heart ores.

Tailings Volumes

Tailings from the development of the Golden Heart mine can be accommodated within the existing

and approved JAG/Mallard Tailings Management Facility (JAG/Mallard TMF) footprint. The total

tailings production associated with the La Ronge Gold Project over the 4 year period is outlined in

Table 17.

Table 17: Tailings Production Associated with the La Ronge Gold Project

Deposit Ore Mined (t) Tailings Volume (m3)

1

Bingo (Roy Lloyd Mine)

300,366 200,244

Komis2 129,500 86,333

EP 51,000 34,000

Golden Heart 459,890 306,593

Total 940,756 627,170

Notes: 1 Volume determined based a conservative tailings density of 1.5 t/m3 to ensure that storage volume accounts for

the time it will take for the tailings to consolidate. A settled tailings density of 1.75 t/m3 has been predicted and

was used in the conceptual design for the JAG and Mallard TMFs.

2 Komis ore production based on an underground mine development

The conceptual design for the JAG/Mallard TMF, with Mallard and JAG as separate facilities which

would eventually be combined, was included the Jolu Central Mill Gold Project Environmental

Impact Statement (Golden Band 2009).

The production schedule for the La Ronge Gold Project previously included the mining of the Jolu

and Decade deposits and the open pit mining of the Komis deposit. Although the mining of these two

deposits was approved in the previous EIS, it has been concluded that the development of the Decade



deposit and underground portion of the Jolu deposit be deferred in favour of the Golden Heart

deposit, as more information is required in order to determine the economics and feasibility of

mining these deposits. The decision to mine the Komis deposit as an underground operation has also

significantly reduced the anticipated volume of ore produced by that satellite mine and thus

increased the tailings storage capacity for tailings generated during the milling of the Golden Heart

mine.

The total approved storage volume for the JAG/Mallard TMF is approximately 788,237 m3, or over 4

years of capacity, based on a 700 t/day milling rate. As a result, based on the present production

schedule, the entire volume of tailings generated from the milling of the Golden Heart deposit ores

can be accommodated within the current, approved footprint of the JAG/Mallard TMF. In addition,

depending on the volume of ore obtained from either the Decade or Jolu deposits, it may be possible

to accommodate the tailings from the mining of these deposits as within the current design and

approved TMF without further expansions, however additional resource modelling is required in

order to make this determination.

The final elevation of the tailings within Cell A and Cell B of the Mallard TMF were provided in the

Jolu Central Mill Gold Project Environmental Impact Statement (Golden Band 2009). The estimated

tailings elevations were estimated to be 488.3 m above sea level (asl) in Cell A and 487 m asl in Cell

B. The final tailings elevations are not expected change due to the milling of ore from the Golden

Heart mine as the volume of tailings which will be placed in the Mallard TMF has not substantively

changed from what was originally presented in the 2009 EIS.

Tailing Disposal, Process Water Reclamation

Tailings management at the Jolu site is fully described in the Jolu Central Mill Gold Project

Environmental Impact Statement (Golden Band 2009).

No changes are required to the JAG/Mallard TMF or its operation as a result of the introduction of

the Golden Heart deposit ores.

During milling, the ore will be ground to approximately 100% passing a #65 mesh (0.23) and 50 to

60 percent passing the #400 mesh (0.038 mm).

The tailings slurry generated from the milling of Golden Heart ores will be pumped from the tailings

pump box within the mill via an insulated 1.5 km tailings pipe line to the tailings pond at a nominal

flow of 54 m3/hr. at 41% concentration. Samples of the discharged tailings slurry are taken

periodically to control metallurgical and environmental performance of the mill. Solids from the

tailings slurry settle in the tailings pond, producing an expected settled tailings with density of 1.75

t/m3 (66.5 percent wt. solids) and tailings impoundment provides valuable retention time for partial

cyanide degradation. The tailings pond (decant) solution is pumped back to the mill‟s reclaim water

tank via an isolated reclaim water pipeline. The reclaim water contains residual cyanide and gold

that is partially recovered in the mill and water treatment system processes. The reclaim water is fed



to the water treatment plant, the recycle water tank and is used in numerous others applications at the

mill.

6.5.5 Jolu Site Water Management

Water management at the Jolu site is fully discussed in the Jolu Central Mill Gold Project


The milling of ores from the Golden Heart mine will have no impact on water management at the

Jolu site.

Jolu Site Water Treatment

Water treatment at the Jolu site is fully discussed in the Jolu Central Mill Gold Project


Effluent treatment at the Jolu site employs reverse osmosis (RO) technology which has significant

advantages in comparison with other cyanide waste treatment process such as lime/ferric sulphate

treatment, hydrogen peroxide, or the sulphur dioxide processes. The major advantage of RO

treatment is that it provides a high and very stable removal efficiency for all contaminants. RO

treatment also removes cyanates and thiocyanates which cannot be removed easily by many other

technologies. Contrary to other water treatment processes, RO treatment also removes non-regulated

water constituents (Ca, SO4, Cl, etc.), thus producing water which has an overall chemical

composition similar to the surrounding surface water. RO treatment efficiency will be controlled by

a conventional regular sampling frequency, as well as by a continuous online control via pH and

conductivity electrodes.

The milling of ores from the Golden Heart mine is expected to have no impact on water treatment

volumes. Treated effluent water quality will be comparable to that previously predicted for the Jolu

site based on the results from the metallurgical and tailings test work.

Effluent Quality Predictions

The milling of ores from the Golden Heart mine is not anticipated to change the predicted effluent

discharge quality from the Jolu water treatment facility. Table 18 provides a summary of the

anticipated quality of the treated liquid effluent from the Jolu site.

Effluent Treatment Contingency

A contingency plan has been developed in the event that the risk mitigation measures are not

sufficient to ensure that treated effluent quality is acceptable at all times, or there is an unexpected

accumulation of water within the JAG/Mallard TMF. One of the contingencies implemented in the

design of the RO plant was the possible addition of hydrogen peroxide in advance of the RO in order

to destroy cyanide, if required.



Table 18: Predicted Treated Effluent Quality

Parameter

MMER1 (mg/L) MIEPR

2 (mg/L)

Predicted Treated Effluent Quality (mg/L)

Max. Monthly

Mean

Max. in Composite

Sample

Max. in Grab

Sample

Max. Monthly

Mean

Max. in Grab

Sample

Max. Monthly

Mean

Max. in Composite

or Grab Sample

Arsenic 0.5 0.75 1 0.5 1 <0.001 <0.001

Copper 0.3 0.45 0.6 0.3 0.6 0.08 0.15

Cyanide 1 1.5 2 1 2 0.5 0.5

Lead 0.2 0.3 0.4 0.2 0.4 0.0004 0.001

Nickel 0.5 0.75 1 0.5 1 0.003 0.005

Zinc 0.5 0.75 1 0.5 1 0.003 0.004

TSS 15 22.5 30 153 30

3 <5 <5

pH 6.0 - 9.5 6.0 – 9.53 6.0 – 9.5

3 6.0 -9.5 6.0 -9.5

Un-ionized Ammonia

None Specified 0.5 1 0.3 0.4

1 - Metal Mining Effluent Regulations (Federal) 2 – The Mineral Industry Environmental Protection Regulations, 1996 (Saskatchewan) 3 – Not in MIEP but included in Appendix A of Operation Approval No. PO10-171 issued by MOE.

6.5.6 Treated Water Discharge

The Jolu site treated water discharge is fully discussed in the Jolu Central Mill Gold Project

Environmental Impact Statement (Golden Band 2009) and is regulated by the current Approval to

Operate Pollutant Control Facilities PO01-171 issued to Golden Band by Saskatchewan Ministry of

Environment.

No changes are anticipated in the Jolu treated water discharge as a result of the introduction of the

Golden Heart deposit ores.

6.5.7 Jolu Site Air Emissions

Air emissions at the Jolu site are fully discussed in the Jolu Central Mill Gold Project Environmental

Impact Statement (Golden Band 2009), appendices and addendums which were reviewed by all

responsible federal and provincial regulatory agencies and departments.

The milling of ores from the Golden Heart mine is not expected to have any additional impact on air

emissions at the Jolu site.



6.6 Schedule of Activities

The following provides a general schedule of proposed development, operation, decommissioning

and transition phase activities.

The timeline for the development of the Golden Heart Project is dependent on the status of the other

La Ronge Gold Project mines as the Golden Heart deposit will be mined when the supply from other

approved La Ronge Gold Project mines is reduced or discontinued. The results of ongoing

exploration and resource delineation programs will determine when the Golden Heart mine is

brought into production.

Approval for the Golden Heart mine will ensure an uninterrupted supply of ore to the Jolu mill and

the proposed mining schedule below is therefore dependant on ongoing mining activities and

exploration and resource delineation programs, including the planned underground exploration and

resource delineation program at the Komis mine.

Once a Ministerial Approval under the Environment Assessment Act is received for the Golden Heart

Gold Project, Golden Band will immediate prepare and submit to the Ministry of Environment an

application to upgrade the access trail and construct the various facilities required at the mine site.

Upon receipt of the required Approval to Construct, Golden Band will proceed with implementing

the approved activities.



7 Worker Health and Safety

7.1 Introduction

As a mineral resources company, Golden Band has committed to making occupational health and

safety a primary objective in all of the company‟s exploration, development and operational

activities. The Board of Directors has established an Environment, Health and Safety Committee

with a mandate to monitor the effectiveness of this commitment and to provide oversight on the

company‟s environmental, health and safety objectives. The company has also established an

Occupational Health and Safety Policy (Appendix VI).

Golden Band recognizes that the safety of its employees is a core value that cannot be compromised.

Employees are expected to be aware of workplace hazards and risks, and “risky” behaviour is not

acceptable. Compliance with safety standards and procedures is absolute.

Golden Band‟s management will ensure that the Health and Safety Management System objectives

and effectiveness are reviewed on a regular basis and that programs are implemented to achieve the

objectives and key performance indicators are monitored. It will also actively promote continual

improvement in all programs and objectives.

7.2 Occupational Health and Safety

The safety concerns at the Golden Heart Project are anticipated to be essentially the same as those

encountered in any mining (underground and open pit) and gold milling operation. These include

risks associated with the use of heavy mobile equipment, stationary industrial equipment and

machinery, chemicals, exposure to falls of ground, contaminants, noise, air quality and extreme

weather conditions.

The emphasis at the sites is on the prevention of safety and/or health problems through the

development of a companywide safety culture, safety conscious employees and maintaining a safe

work environment. This is accomplished through a combination of training and diligence in

monitoring the workplace to identify and minimize factors that may have the potential to pose an

unnecessary risk to the health and safety of a worker.

Some of the more significant activities related to health and safety that will be implemented at the

Golden Heart site are as follows:

7.2.1 New Employee’s Orientation

Upon their arrival at any of the La Ronge Gold Project sites, including the Golden Heart site, all new

employees will attend an orientation session on safety, fire protection, environmental awareness, site

rules, and any other related topics.



7.2.2 Safety Manuals

A safety manual has been prepared, is presented to all employees and replaced when requested.

Employees are/will be required to read and be familiar with its contents.

7.2.3 Hearing Conservation

Noise surveys will be carried out throughout the site at regular intervals and any areas above the

85 dBA level will be posted and employees will be required to wear hearing protection. Hearing

protection will be issued to every employee and will also be available at strategic locations (related

to noise levels) throughout the project sites.

7.2.4 Personal Protective Equipment

Efforts will be made to reduce or eliminate workplace hazards whenever and wherever possible.

However, when this is not possible, approved personal protective equipment will be provided and

used. Any employee that is required to wear personal protective equipment will be trained in its use,

maintenance and capabilities.

7.2.5 Lock Out Procedures

In order to ensure that machinery and other equipment (both electrical and fueled) cannot be

inadvertently used or started and jeopardize the safety of any employee working on the equipment,

lock out procedures have been developed and must be followed.

7.2.6 Mobile Equipment

Employees with duties that include the operation of mobile equipment will be trained in the safe

operation, maintenance and inspection of such equipment.

7.2.7 Fire Protection

All La Ronge Gold Project sites are/will be completely dependent on their own resources for fire

prevention and suppression. As such, programs, procedures and practices have been developed and

implemented at each site in order to insure that fire prevention and protection are of paramount

importance. These will be extended to cover the Golden Heart site.

Fire extinguishers and other firefighting equipment will be located at strategic points throughout the

site and maintained in good working order.

A Fire Control Plan for the Golden Heart site will be prepared and provided to Saskatchewan

Ministry of Environment, Fire Protection Officer in Southend.



7.2.8 Work Place Hazardous Materials Information System

In order to ensure that all employees are able to identify any and all hazardous materials a Workplace

Hazardous Materials Information System (WHMIS) program will be implemented at the project site.

The program will include labeling of products by suppliers, submission of Material Safety Data

Sheets by suppliers, the labeling of containers tanks and piping, the appropriate posting of Material

Safety Data Sheets, and the effective training of employees.

7.2.9 First Aid

All employees will be encouraged to obtain first aid certification.

In the event of a medical emergency, sick/injured persons can be rapidly transported to the La Ronge

(nearest) medical facility.

If any disease clusters are observed on site, they will be immediately reported to Medical Health

Officer in La Ronge.

7.2.10 Emergency Vehicle/Communications

A vehicle will be available at all times on each site to evacuate injured or sick personnel to the La

Ronge medical facility. No formal agreements are currently in place for Golden Band‟s existing

operations for the transportation of injured or sick personnel by Mamawaten Churchill River Health

Region (MCRHR) emergency services, the La Ronge EMT Services, or the La Ronge Regional Fire

Department, or for their involvement in any incidents on site. It is understood that any assistance

requested will be subject to availability.

Golden Band Resources will communicate with the Health Region before operations commence to

specifically discuss the Golden Heart operation and to identify and discuss what services might be

required as a result of operations. With regard to the use of off facility cyanide response kits, Golden

Band has contacted representatives of the Health Region to discuss longer term initiatives for

cyanide exposure responses.

At least one working satellite phone will be on each site at all times.

7.2.11 Occupational Health and Safety Committee

An Occupational Health and Safety committee will be established at the Golden Heart project site

and will consist of employees and supervisors. The Committee will be charged with the

responsibilities of reviewing accidents in the unlikely event that one should happen, conducting

safety inspections, evaluating existing safety programs, and recommending health and safety

improvements. The committee will meet on a regular basis and the minutes of such meetings will be

posted for the information of all employees.



7.2.12 Mining

Golden Band and its contractors will also adhere to all applicable requirements of the Occupation

Health and Safety Act 1993, The Mines Regulations, 2003 and any amendments that may be made to

those regulations in the future. All ventilation systems will be constructed and operated in order to

meet or exceed those regulations and to provide a safe and healthy work environment in the

underground mine.

Golden Band, in cooperation with the underground mine contractor will maintain and train

underground and open pit mine rescue teams. An appropriate level of trained emergency measures

response and associated personnel will be on-site during each shift and all employees will be

encouraged to obtain first aid certification.

7.2.13 Milling Activities

Golden Band and its contractors will adhere to the requirements of the Occupation Health and Safety

Act 1993, associated regulations and any amendments that may be made to those regulations in the

future.

7.2.14 Upset Conditions

In the case of any unanticipated or upset condition on any of the La Ronge Gold Project sites or

transportation routes, the policy will be as follows:

1. Protect the health and safety of persons in the area.

2. Protect the environment.

3. Protect the facility.

Appropriate personnel at each site will be trained and equipped for firefighting and mine rescue

activities as required by applicable regulations.

An Emergency Preparedness & Response Plan and a Spill Contingency Plan has been prepared to

cover all aspects of the La Ronge Gold Project and cover all chemicals, fuel and other hazardous and

waste dangerous goods present on the site and those being transported to and between sites. The

plan will be updated to include the Golden Heart site, all supervisory personnel will be familiar with

the updated Plan and it will be made available at a strategic location at the site for easy access.

7.2.15 On-site Medical

Golden Band has an established Emergency Response Plan which includes a medical evacuation

plan. This will be extended and amended to cover activities at the Golden Heart site. Employees will

be encouraged to obtain first aid certification and qualified medical staff will be retained on site.



In the event of a medical emergency, a vehicle will be available at all times on site to evacuate

injured or sick personnel to the La Ronge or Prince Albert medical facility. Safety personnel will be

on site in the event of a medical emergency.

7.2.16 Emergency Response

Golden Band will maintain a fully trained mine rescue team at the Golden Heart site and it is

expected that the existing mutual assistance agreement between Golden Band, Cameco Corporation

and the ProCon Kitsaki / Procon Joint Venture will be expanded to include the Golden Heart site.



8 Decommissioning

8.1.1 Existing La Ronge Gold Project Conceptual Decommissioning and Reclamation



activities. Golden Band fully intends to do so in the manner prescribed by the appropriate regulatory

authority. Other than the decommissioned tailings management facilities, the remainder of the La

Ronge Gold Project sites can be decommissioned and reclaimed to a condition that will allow for the

unrestricted access and use similar to that which the sites were subject to before development.

As such, a decommissioning and reclamation plan for all of Golden Band facilities within the La

Ronge Gold Project (i.e. the Roy Lloyd mine, Jolu mill, JAG/Mallard TMF, Star Lake camp and all

associated infrastructure) has been submitted and approved by the Saskatchewan Ministry of

Environment. Based on that plan, a financial assurance in the form of an Irrevocable Letter of Credit

to cover the cost of decommissioning and reclamation will be held by the Province of Saskatchewan

as required by The Mineral Industry Environmental Protection Regulations, 1996.

Once a Ministerial Approval under the Environmental Assessment Act is received and the

development of the Golden Heart Project is initiated, an updated decommissioning plan (which will

incorporate the Golden Heart site) will be submitted to Ministry of Environment for review and

approval and a renewed financial assurance instrument will be established.

8.2 Conceptual Decommissioning Plan

In all decommissioning and reclamation activities, Golden Band intends to adhere to:

1. The design criteria and objectives specified by MOE‟s Guidelines for Northern Mine

Decommissioning and Reclamation (November 30, 2008 – Version 6)

2. The Draft Guidelines for Decommissioning and Reclamation of Northern Mine Sites (1995)

3. Environment Canada‟s Environmental Code of Practice for Metal Mines (2009); and,

4. Industry Best Management Practices (BMP).

Should a decision be taken to cease operations at the mill or at any of the mine sites, Golden Band

will, as prescribed in the anticipated Approval to Operate a Pollutant Control Facilities issued to

Golden Band and Section 18 of The Mineral Industry Environmental Protection Regulations, 1996:

(a) advise the minister in writing at least 60 days before commencing the permanent closure;

and



(b) implement any decommissioning and reclamation plan approved by the minister according

to the time frames set out in the plan.

In addition, as prescribed by Section 406, subsection 7(2) of The Mines Regulations, 2003 Golden

Band will, prior to initiating final closure activities, provide the Chief Mines Inspector from the

Ministry of Advanced Education, Employment and Labour with:

A surface plan showing the boundaries of the properties and all lakes, streams, roads, main

pipelines, buildings, shafts, adits, surface workings, diamond drill holes, boreholes, dumps and

tailings management areas;

A plan of each underground level, showing all workings, shafts, drifts, crosscuts, diamond drill

holes, dams and bulkheads;

A plan respecting vertical underground sections at suitable intervals showing all shafts, drifts,

crosscuts, stopes, raises, winzes and workings in relation to the surface, including the location of

the top of bedrock, the surface of overburden, the position of any unconsolidated deposit and the

position of any known watercourse or body of water, with each section shown on a separate

drawing; and

A ventilation plan showing the direction and quantity of the main air currents, locations of

permanent fans, ventilation doors, stoppings and connections with adjacent undergrounds.

Once these activities have been completed, Golden Band will review and update the conceptual

decommissioning plan previously filed with the Ministry of Environment, submit the plan for review

and after receiving approval from the Ministry of Environment, initiate decommissioning and

reclamation. In all decommissioning and reclamation activities, Golden Band intends to implement

passive decommissioning and reclamation strategies at each of the mine and mill sites. The intent of

this strategy is to minimize, to the extent possible, the use of engineered containment structures on

the sites as such engineered facilities will likely require long term care and maintenance.

During all decommissioning activities, Golden Band will maximize opportunities to recycle and

reuse materials wherever possible as this will serve to reduce the total amount of material that will

have to be disposed of during decommissioning and reclamation activities.

8.2.1 Golden Heart Mine

Open Pit Mine

The open pit mine will be allowed to flood, with due consideration being given to ensuring an egress

route is available and for the installation of suitable conditions (i.e. pit wall stability) and barriers

(i.e. boulders or ridges) to restrict inadvertent entry to the pit. Volume inflows into the pit and

underground mine will monitored be during operations as will the pit wall geology and the resulting

information will be used to determine the anticipated time period for natural pit flooding by both

groundwater and surface runoff as well predicted water quality within the flooded pit. This

information will then be used to determine whether rapid flooding techniques (i.e. pumping of



surface water into the pit) should be considered as part of the decommissioning and final closure

strategy.

During decommissioning and reclamation the site will be contoured in a manner that maximizes the

surface runoff to the open pit in order to enhance the flooding and reduce the overall fill time.

Golden Band, in consultation with the appropriate regulatory agencies will also explore the potential

to rapidly flood the pit using water sourced from a nearby waterbody. This action has proved

successful at other mine sites in northern Saskatchewan.

Underground Mine

Golden Band intends to employ a progressive strategy in the decommissioning and reclamation of all

mine sites and mining activities. That is to say that, once mining activities are completed at a

particular site, mining equipment will be moved to the next site and decommissioning and

reclamation activities will be initiated as soon as practical. Generally, decommissioning and

reclamation activities at each site will consist of the following.

Salvaging of all equipment underground, where practical, transporting it to surface and relocating it

off site for reuse or appropriate disposal will initiate decommissioning of a particular underground

facility. The contracted-mining firm will undertake this activity. Once all salvage is complete, all

residual materials with a potential to produce unacceptable acid rock drainage will be loaded,

transported and placed in the underground workings, or pit bottom.

Adit/Portal Closure

Section 407 of the Saskatchewan Mines Regulations, 2003 states:

407 (1) If a shaft, raise, adit or other opening to the surface is abandoned or if the workings are

discontinued, the employer, contractor or owner must ensure that the shaft, raise, adit or

other opening is secured against unauthorized entry in accordance with this section.

(2) A shaft, raise, adit or other opening must be secured by covering the top of it with a

bulkhead designed by a professional engineer of reinforced concrete at bedrock or at the

top of the concrete collar of the shaft, raise, adit or opening.

(3) An employer, contractor or owner must ensure that the cover required pursuant to

subsection (2) is clearly marked with a substantial one-metre high marker or sign that

identifies the party responsible for the opening and the cover.

Golden Band will adhere to this requirement and construct a concrete bulkhead to permanently

decommission the adit and raises or, alternately, seek approval to construct a mine rock plug within

the adit and backfill raises. If conditions warrant, the mine rock plug or bulkhead will include two

drains at appropriate elevations to ensure that ground water does not build–up behind the bulkhead.



A surface clean-up will then be initiated in order to remove all materials foreign to the area. All

refuse collected during this exercise will be transported off surface and either recycled or if

necessary disposed of in an appropriate manner.

Mine Support Facilities

Mine site support facilities will all be temporary facilities that will be disconnected and transported

to the next mine site. All sewage holding tanks, etc. associated with these facilities will be removed

and transported off site for appropriate disposal.

Smaller support facilities, including the magazines and any storage buildings will be dismantled and

the materials transported off site for reuse or appropriate disposal.

Once all facilities have been dismantled and/or removed from the site, all buried services (i.e. piping,

electrical, etc.) will be dismantled and transported off site either for reuse or for disposal in an

appropriate manner.

Fuel storage tanks will be emptied (i.e. fuel used in equipment) and transported off site for reuse.

One small fuel storage tank will remain on site until all reclamation activities are complete in order

to provide appropriate storage of fuels needed to supply equipment employed in that activity. Once

all reclamation activities are completed, the last fuel storage tank will be emptied and the tank itself

transported off site for reuse or appropriate disposal.

All hazardous substance and waste dangerous goods pad material or other wastes that may be

generated and still remain on site, will be removed and transported off site to a proper environmental

recycling company. All hazardous clean-ups (including hydrocarbon spills) will be dealt with

according to applicable Ministry of Environment guidelines and requirements.

Materials Disposal

The ore stockpile area residuals and settling ponds sludges will be collected by loader and deposited

in the underground workings in a safe manner. All concrete foundations (should they exist) will be

broken into appropriate sized pieces and either deposited in the underground workings or covered in

place

Mine Rock Pile

The mine rock stored on surface , including all containment berms and drainage ditches, will be

contoured in a manner that ensure that any depressions that remain after water settling pond removal

etc. have been removed. The re-contouring activity will be designed to match the natural topography

as closely as possible and with a maximum 4 to 1 slope. These slopes will provide long term

stability and will be re-vegetated with appropriate ground cover as required. If feasible, based on

site topography, the runoff from the pile will be directed to the open pit.



Roads

Once all decommissioning and reclamation is complete to the satisfaction of the Ministry of

Environment, any bridge crossings constructed will be decommissioned in an appropriate manner

and all culverts removed from the access routes. The roads will not be permanently closed at this

time, however, as access to the site will be required in order to allow for post-decommissioning

(transition phase) monitoring to take place.

All roads accessing the various sites will be fully decommissioned and closed as directed by the

appropriate regulatory agencies. Generally, when permanent closure is requested it will include the

levelling of banks and the replacement of all duff, logs and organic debris across the cleared areas in

order to stimulate natural re-vegetative processes and the construction of swale/berm barriers at

appropriate approved locations.

Exploration activities at Golden Band existing deposits and prospects are expected to continue in

conjunction with the La Ronge Gold Project. All exploration trails and roads will be

decommissioned and reclaimed once exploration activities have been completed.

Power Infrastructure

On site power infrastructure will be removed for reuse or appropriate disposal.

Reclamation

Once all surface infrastructures has been removed and disposed of appropriately, all depressions

(i.e. from septic tank, etc.) will be backfilled with the same material that was removed and stockpiled

during initial development in order to restore each area to as near to pre-development condition as

possible. All remaining equipment, machinery, tanks etc. will be demobilized from the site.

The remainder of the site will then be graded to match pre-disturbance topography as much as

feasible and scarified to promote re-vegetation. The duff, logs and organic debris, which was

stockpiled during initial site development, will be spread across the cleared areas in order to

stimulate natural re-vegetative processes.

If required, active re-vegetation could take place, using species native to the area, however,

experience to date indicate that this will not be a requirement as native vegetation rapidly invades

areas reclaimed as described above.

All roads accessing the site will be fully decommissioned as directed by the appropriate regulatory

agencies. Generally, this will include consist of levelling of banks and the replacement of all duff,

logs and organic debris across the cleared areas in order to stimulate natural re-vegetative processes.

As portions of the La Ronge Gold Project will take place in the Steephill-Foster Woodland Caribou

Management Unit area, consideration will be given in all decommissioning and reclamation



activities to maximizing the creation of enhanced woodland caribou habitat, although no Woodland

Caribou sign was observed in the Golden Heart Study Area.

Summary

It is anticipated that after decommissioning, reclamation and transition phase monitoring are

completed, the Golden Heart site will be in a state that will allow for unrestricted access and for land

use similar to that which existed before the development of the Golden Heart mine. The ability to

successfully decommission the sites and minimize the residual effects can be judged against the

operational impacts/effects of previous gold mining operations in the region, their success in

implementing mitigation activities and effectively decommission the sites. These include the former

Waddy Lake Resources Komis project, the former Cameco Star Lake and Contact Lake projects, and

the history of the Jolu site itself.

8.2.2 Transition Phase Monitoring

Once all required decommissioning and reclamation activities are completed to the satisfaction of the

appropriate regulatory agencies, “transition phase monitoring” or “post-closure monitoring” will be

initiated at the Golden Heart site for an appropriate period of time to demonstrate that all areas are

performing as predicted and to demonstrate that the site is physically and chemically stable.

During the transition phase monitoring period, Golden Band will:

Continue monitoring and maintaining the sites, as per the requirements in the decommissioning

and reclamation plan, at their own expense; and

Maintain financial assurances sufficient to cover the cost of the remaining obligations outlined in

the decommissioning and reclamation plan and any monitoring and maintenance requirements

for the balance of the transitional period as well as a contingency, to be negotiated, for any

unexpected occurrences.

During this phase, it is expected that the appropriate regulatory agencies will continue to:

Conduct periodic regulatory inspections of the site to monitor the company‟s maintenance

activities to ensure that the performance targets provided in the decommissioning and

reclamation plan are being achieved; and

Review and verify monitoring results and maintenance activities.

If the site performs in accordance with the decommissioning and reclamation plan and achieves the

predicted chemical and physical stability during the transition phase monitoring period, Golden Band

will make an application for a Release from Decommissioning and Reclamation in order to obtain a

release from further monitoring and maintenance responsibilities and from the obligation to maintain

financial assurances.



8.3 Decommissioning Financial Surety

8.3.1 Decommissioning Cost Estimate

Once approval for the Golden Heart Mine Project to proceed pursuant to the Environmental

Assessment Act is received, and prior to the operation of the mine, Golden Band will develop a

detailed conceptual decommissioning and reclamation plan and estimate of associated costs for all

aspects of the entire Project. The Golden Heart information will then be incorporated with the

existing Operational Decommissioning and Reclamation Plan and the updated plan will be submitted

to the Ministry of Environment for review and approval.

8.3.2 Financial Assurance Instrument

Once approval of the updated Operational Decommissioning and Reclamation Plan and associated

cost estimates is received from the Ministry of Environment, Golden Band will immediately update

the existing assurance fund to cover the cost of decommissioning and reclamation in an amount and

form approved by the Minister and the requirements of The Mineral Industry Environmental

Protection Regulations, 1996,

8.4 Custodial Transfer of Decommissioned and Reclaimed Sites

It is anticipated that once all sites associated with the La Ronge Gold Project are decommissioned

and reclaimed, unrestricted access and land use should be permitted.

Once all decommissioning and reclamation activities have been completed and monitoring and

visual inspections have confirmed that each site is chemically and physically stable and appropriate

re-vegetation is underway, Golden Band will make an application to the Ministry of Environment for

a Release from Decommissioning and Reclamation in order to obtain a release from further

monitoring and maintenance responsibilities and from the obligation to maintain the financial

assurance instrument.

Based on Section 22 of The Mineral Industry Environmental Protection Regulations, 1996, the

application for Release from Decommissioning and Reclamation will, at a minimum:

Provide for the archiving of all records necessary to describe past operations, decommissioning

plans and assessments, final configurations, and release verifications;

Summarize the decommission and reclamation activities completed by the operator;

Describe the performance of the site during the post-closure (transition phase) monitoring

period;

Describe any land controls that may be required:

Predict, based on the documented performance of the site over the transition phase, the likely

ongoing expenditures the Province may be expected to accrue in order to adequately maintain

and monitor the site if it assumes custodial responsibility for the property;



Assess the risk of unforeseen contingencies based on performance of the site over the transitional

period; and,

Provide an estimate of the potential costs to the Province to address such contingencies should it

assume custodial responsibility.

Approval for the final abandonment of each site will only be sought by Golden Band after it has

completed all required transitional monitoring, made application and received approvals as

prescribed by the Reclaimed Industrial Sites Act and associated regulations.



9 Operational Regulatory Oversight

9.1 Applicable Acts & Regulations

During all activities, the Golden Heart mine, Jolu mill and ancillary facilities and actions will be

subject (wholly or in part) to a number of federal and provincial Acts and regulations. Golden Band

intends to adhere fully to all. The relevant Acts and regulations include, but are not necessarily

limited to:

Federal

Fisheries Act

Migratory Birds Convention Act

Species at Risk Act

Canadian Environmental Protection Act, 1999 (including the National Pollutant Release

Inventory Program)

Metal Mining Effluent Regulations

Environmental Emergency Regulations

Provincial

The Clean Air Act

The Environmental Management and Protection Act, 2002

Fisheries Act (Saskatchewan), 1994

Forest Resource Management Act

Litter Control Act

Forest Resources Management Amendment Act

Natural Resources Act

Prairie and Forest Fire Act, 1982

Provincial Lands Act

Wildlife Act, 1988

Wildlife Habitat Protection Act

The Occupational Health and Safety Act, 1993

Reclaimed Industrial Site Act

Saskatchewan Watershed Authority Act, 2005

Crown Minerals Act

The Public Health Act

The Mineral Industry Environmental Protection Regulations, 1996

The Saskatchewan Fisheries Regulations

The Fisheries Regulations

The Used Oil Collection Regulations

The Waste Paint Management Regulations

Water Regulations (if applicable)

Provincial Lands Regulations

Litter Control Regulations

Wildlife Regulations

Forest Resource Management Regulations

Clean Air Regulation



Environmental Spill Control Regulations

Hazardous Substances and Waste Dangerous Goods Regulations

The Mines Regulations, 2003

The Occupational Health and Safety Regulations, 1996

Use of Electricity in Mines Regulations

Reclaimed Industrial Sites Regulations

Groundwater Regulations

Mineral Disposition Regulations

Health Hazard Regulations

Plumbing and Drainage Regulations

9.2 Permitting

A preliminary review of provincial permit and approvals requirements for the Golden Heart project

to proceed (assuming Ministerial Approval pursuant to the Environmental Assessment Act) has been

completed. Based on that review, the project will be required, but may not be limited, to secure the

following provincial permits and/or approvals:

An Aquatic Habitat Protection Permit for any work planned in or near water (i.e. access rod

stream crossings).

A Forest Product Permit to allow for disturbance and/or harvesting forest vegetation on

crown lands.

Sand & Gravel Leases or Small Quantities Permits to allow for the harvest and use of sand

and gravel during road construction.

An Approval to Construct and Store for fuel and/or chemical storage facilities.

An Approval to Construct Pollutant Control Facilities.

An Approval to Operate Pollutant Control Facilities.

A Fire Control Plan for the site will be required.

Water Use License and Approval to Construct and Operate Works

Rural Plumbing/Sewage Disposal Permit

Surface Lease Agreement

Golden Band will also apply for a Mineral Lease once it has received Ministerial Approval

for the Golden Heart Project pursuant to the Environmental Assessment Act.



10 Inspections and Monitoring

10.1 Environmental Inspections

10.1.1 Visual Inspections

Mine Site

Environmental inspection activities at the mine site will include daily inspections of all equipment

(equipment, pumps, etc.) for leaks and/or fuel, lubricants and/or coolants spills. Secondary

containment and emergency spill equipment will be at all locations (near operating equipment, pump

locations, etc.) where the potential for a hazardous material spill may exist.

Regular, visual inspections will also be made of specific areas of the site that may pose a risk to the

environment. Table 19 provides a preliminary summary of areas that will be subject to daily

inspections by on-site personnel. A record of the results of these inspections will be maintained on

each site.

Table 19: Daily Environmental Inspections – Mine Site

Facility/Area Inspection Frequency

Fuel storage area(s)

Daily

Re-fueling stations

Generating facility

Fresh Water and Mine Water Lines

Oil/coolant storage area

HSWDG storage areas (if present)

Ore storage area

Mine water settling ponds and discharge

Sewage collection and treatment system

Domestic waste storage containers

Equipment (no leaks and good running order)

In addition to the daily inspections carried out by on-site personnel, a regular monthly inspection will

be conducted by senior management from Golden Band and will include, among other things, a

review of the reports on the daily inspections conducted by on-site personnel and include a detailed

inspection of the listed areas as well as the reminder of the site. A record of these inspections and

their findings will also be maintained.

Mill Site

Similarly, at the Jolu mill site, environmental inspection activities include daily inspections of the

mill facility and tailings management facility (TMF), hazardous substances and waste dangerous

goods storage facilities, all equipment (equipment, pumps, etc.) for leaks and/or fuel, lubricants



and/or coolants spills. Secondary containment and emergency spill equipment will be at all locations

(near operating equipment, pump locations, etc.) that the potential for a hazardous material spill may

exist.

Regular, visual inspections are also made and of specific areas of the site that may pose a risk to the

environment. Table 20 provides a summary of areas that are currently subject to daily inspections by

on-site Jolu personnel. A record of the results of these inspections is maintained on each site.

Table 20: Daily Environmental Inspections – Jolu Mill Site

Facility/Area Inspection Frequency

Tailings and Reclaim water line between the mill and TMF,

Daily

Freshwater intake and pipeline between the mill and Jojay Lake,

Ore Storage Pad area,

JAG TMF dams, berms and diversion works,

Mallard TMF dams, berms and diversion works,

Chemical & Fuel Storage Areas,

Propane Storage areas,

Hazardous Substance/Waste Dangerous Goods Storage Area(s),

Sewage and domestic solid waste storage areas,

Laydown area and boneyards,

Water Treatment Plant (when in operation),

Mill Terrace including exterior process and storage tanks,

Industrial Landfill (if authorized),

Used oil burners,

Any other areas as specified by the Ministry of Environment.

In addition to the daily inspections carried out by on-site personnel, a regular monthly inspection is

conducted of the Jolu mill site and associated facilities by senior management from Golden Band

which includes, among other things, a review of the reports on the daily inspections conducted by

on-site personnel and include a detailed inspection of the listed areas as well as the reminder of the

site. A record of these inspections and their findings is also maintained on site.

Star Lake Camp

Inspections at the Star Lake camp site include daily inspections of domestic waste incinerator, the

propane tanks and water and sewer systems.



10.2 Monitoring Program

10.2.1 Environmental


the La Ronge Gold Project Jolu Mill site and Star Lake Camp (Approval No. PO10-171). That

Approval to Operate, issued January 11, 2011 by Saskatchewan Ministry of Environment, requires

Golden Band to conduct extensive and detailed monitoring of various activities/media in and around

the Jolu mill, the Star Lake camp and the relevant receiving environment.

Once a Ministerial Approval under the Saskatchewan Environment Assessment Act is received for

the Golden Heart mine, Golden Band will prepare and submit to the Ministry of Environment an

application to construct various facilities at the site. That application will, at minimum, provide

detailed design and operational aspects for the facilities and propose the location and extent of

proposed environmental monitoring at the Golden Heart site including, but not necessarily limited to:





agencies.

The proposed monitoring is further discussed in Section 15.

Upon receipt of the required Approval to Operate Pollutant Control Facilities for the Golden Heart

mine, Golden Band will implement the monitoring program as prescribed.

10.2.2 Socio-Economic

Golden Band will monitor its own and its contractor employment statistics in addition to the

purchases of goods and services as prescribed in Part III (Direct Employment and Economic Benefits

for Residents of Saskatchewan‟s North) of the La Ronge Gold Project Surface Lease Agreement

2009. These statistics will be prepared and submitted in accordance with the terms of the Human

Resource Development Agreement for the project.

10.3 Reporting

10.3.1 Environmental Report

Golden Band will prepare and submit environmental reports to the Ministry of Environment on a

frequency defined within the Approval to Operate for the Golden Heart site. The reports will provide

a summary of the previous period sampling programs and prior to submitting each report,

representatives of Golden Band will review the data with respect to accuracy and completeness,

effluent quality limits and the Saskatchewan Surface Water Quality Objectives. All data will be



reported numerically in tables and graphically when warranted and will include previous

concentrations measured at each station for the previous months (to a maximum of 1 year).

The report will also summarize the results of required inspections conducted, a summary of any

incidents that had the potential to impact the environment and any alterations that may have been

made during the reporting period.

In the unlikely event that the monitoring shows any unusual results or excursions, the report will also

report the results of the monitoring and include a detailed discussion of any remedial actions taken

by the project to address the „unusual‟ event.

10.3.2 Annual Environmental Report

Golden Band will prepare an Annual Environmental Report for the Golden Heart mine. The report

shall include but not necessarily be limited to the following:

data from the environmental monitoring programs, summaries and interpretation of the data;

performance with respect to discharge limits at the final point of control for each site;

comparison of water quality monitoring results for Weedy Bay with Surface Water Quality

Objectives;

a summary of construction and decommissioning activities;

a report on the quality assurance and quality control program for the field and laboratory

procedures performed by both the Company's staff and their analytical laboratories; and

a report on continual improvements which have reduced impacts upon the environment.

10.3.3 Socio-Economic Reporting

As part of its obligations under the La Ronge Gold Project Surface Lease Agreement 2009, Golden

Band will prepare and file with the Northern Office of the Ministry of Advanced Education,

Employment and Labour (or equivalent), on an annual basis, employment statistics for the La Ronge

Gold Project and on behalf of its on-site contractors. These statistics will be prepared and submitted

in accordance with the terms of the Human Resource Development Agreement for the project.

In addition, on or before March 31st of each calendar year, Golden Band will prepare and submit a

Business Participation Report that characterizes the nature and value of goods and services

purchased during the course of the year from northern business and the activities undertaken in the

previous year.





11 Malfunctions or Accidents

11.1 Introduction

Malfunctions or accidents must be a consideration in the planning and operation of a project such as

the La Ronge Gold Project and this section considers the potential malfunctions and accidents related

to significant aspects of the proposed project. These include: mining at Golden Heart site, ore

transport from the mine to the Jolu mill, milling at the Jolu site, the management and discharge of

mill tailings and treated effluent and the transportation of hazardous substances to and from the sites.

Various reasonable malfunctions were considered in terms of their probability of occurrence,

response in the event that they do occur and the potential effects of occurrence.

11.1.1 Hazardous Substances & Waste Dangerous Goods Storage

A number of hazardous substances and waste dangerous goods materials will be employed on the

Golden Heart. All of these materials will be stored in vessels or facilities designed for the materials

being stored and in accordance with applicable acts and regulations.

A significant spill to the environment from any one of these facilities has the potential to affect the

surface environment in addition to surface and/or ground waters in the area. As such, each of the

facilities will be constructed with suitable secondary containment to retain the material stored within

and each will be operated in a manner that limits the potential for spillage.

All outdoor fuel storage tanks will be of double walled construction to contain leakage to the primary

(internal) tank. Fuelling stations will be constructed and operated in a manner that minimizes spill

during fuelling activities. In addition, the tanks and fuelling stations will be subject to daily

inspections and any items identified during that inspection will be addressed as soon as identified.

In the event of an unanticipated release from a storage facility, emergency response procedures,

defined in the Environmental Contingency Plan, will be implemented. A typical response to a spill

will be to ensure worker safety in the area, isolating the source of the spilled material, containing the

spilled material and clean-up of the area. This spill response coupled with site runoff design will

ensure that any spill of hazardous substances or waste dangerous goods storage facilities will be

contained within the operating areas of the sites.

The expected frequency of such events is considered very low and this, combined with a rapid and

effective response mechanism in the event that such an event does occur, will ensure that

malfunctions associated with the storage of hazardous substances and waste dangerous goods result

in minimal residual impacts to the environment.



11.2 Leakage from Mine Water Ponds

External lined ponds will be used to store surface runoff and mine water. The quality of the water

within the ponds is expected to be significantly better than the discharge criteria provided in The

Mineral Industry Environmental Protection Regulations, 1996, with the possible exception of TSS

and un-ionized ammonia, so a small leak in a particular pond would pose little to no risk to the

surrounding environment. Notwithstanding this, all such ponds will be subject to daily visual

inspections by on-site personnel of water levels and for obvious signs of leaks. In addition, a

detailed annual inspection will be conducted of each lined pond to ensure that the overall integrity of

the pond is maintained.

11.3 Water Pipe Line Spills

External pipelines will be used to collect pit and underground dewatering water, to transport that

water to the mine water settling ponds, etc. The quality of the water within the water pipelines is

expected to be significantly better than the discharge criteria provided in The Mineral Industry

Environmental Protection Regulations, 1996, with the possible exception of TSS and un-ionized

ammonia, so a small leak in a particular pond would pose little to no risk to the surrounding

environment. Notwithstanding this, all water pipelines in use will be subject to daily visual

inspections for leaks by on-site personnel.

11.4 Open Pit Slope Failure

Minor slippage of the pit slope and falling rock will be mitigated by safety benches established in the

pit slope and may require periodic cleaning to remove debris although this is unlikely considering the

expected pit slope stability on all open pits associated with the Golden Heart project. Detailed

geotechnical studies and pit design features are designed to minimize the potential for instability in

pit slopes, however the risk of a major failure cannot be dismissed entirely. Regular pit wall slope

monitoring will be implemented in an effort to identify areas of instability should they develop. Any

response to detected stability or pit wall failure will be dependent on the characteristics of the failure

and may vary from pinning the slope with rock bolts and cables to facilitating a design collapse of

unstable areas, removal of the fallen rock and reduction of the slope.

11.5 Mine Flooding

The potential flooding of the underground mine is not likely as precipitation waters will be collected

in sumps at the bottom of the pit before the water is allowed to enter the mine and the

hydrogeological investigations and past operating experience all show that water flows into the

underground workings will be relatively small. Notwithstanding this, a detailed mine water

management contingency plan will be developed for the underground mine prior to commencement

of underground mining.

.



In the event that a mine were to flood, there would likely be little to no threat to the environmental as

previous monitoring at other similar La Ronge Gold Project sites (Roy Lloyd & Komis) clearly

demonstrates that contaminants in mine waters are generally low.

11.6 Release of Contaminants from Ore & Mine Rock Storage Areas

Ore storage and mine rock storage areas will be constructed appropriately and will include a

perimeter ditch to collect all surface runoff and divert it to a collection pond where it will be

transferred to the mine water settling ponds for settling. The ponds will be designed with sufficient

retention time to allow for the settling of suspended solids and, if required acid will be added to

lower the pH and the concentration of un-ionized ammonia. Discharges from such ponds will be

monitored in a manner and on a frequency approved by the regulatory agencies.

The potential for wind generated dust from ore and mine rock stockpiles is possible although the

nature and size of the rock in these areas make such an occurrence extremely unlikely. In the event

that it does develop, appropriate dust suppression measures will be taken to maintain air quality

within acceptable standards.

Based on the ore and rock characterizations conducted, the temporary surface storage of ore and the

permanent storage of mine rock presents a negligible risk to surface and ground water in the

immediate area of such piles both during operations and after decommissioning and reclamation.,

however, the ongoing mine rock monitoring and management program will be used to verify that

there are no negative impacts during operation and upon decommissioning of the site.

11.7 Ore Haulage

During the active haulage of the ore from the mines to the Jolu mill, minor spillage from the haul

trucks could potentially result from overfilling or dusting. Both will be carefully controlled by

proper loading of the truck as and limiting the size of the loads.

The current La Ronge Gold Project operations (which includes an ore haul from the Roy Lloyd mine

to the Jolu mill on Highway #102) has been monitored and to date the covering of the ore loads has

not been required to reduce the potential of dusting from the load or to reduce the potential of ore

spillage during transport. The most effective mitigation to ensure minimal dusting and spillage from

ore haul is the proper loading of the trucks and Golden Band will continue to monitor this activity to

ensure that all trucks are loaded in an appropriate manner.

In the unlikely event that a large spill of ore occurred while being hauled between a mine and the

Jolu site due to an accident, the response would be to first attend to the injured, followed by a prompt

clean-up of all spilled material. In the event that the spillage occurred into a lake or stream,

additional considerations would be given to the clean-up in order to minimize the potential negative

impacts the clean-up could potentially have on the aquatic community affected.



Because of the nature of the ore, no residual environmental impacts would be expected from a major

spillage during hauling.

11.8 Transportation Accident

Transportation accidents involving one or more vehicles could potentially result in the release of a

hazardous substance or waste dangerous goods. In all instances, Golden Band will require that the

transporter have emergency response plans suitable for the materials being transported will be

developed and, in the event that an accident happens, implemented. Through proper emergency

response and clean-up, the potential residual environmental impacts of such an occurrence will be

kept to a minimum. In accordance with the La Ronge Gold Project Emergency Preparedness and

Response Plan, Golden Band will respond to any accident on site access roads. The Operations

Manager, or designate, will determine whether site personnel will respond to accidents on Provincial

Highways, as this decision will be based on factors such as the severity of the accident and location,

in relation to Golden Band‟s sites.

11.9 Fire Suppression

All facilities associated with the La Ronge Gold Project, including the Golden Heart site will be

entirely self-reliant for fire prevention and suppression. As such, programs, procedures and practices

have been developed at the site in order to ensure that fire prevention and protection are of

paramount importance.

As with the rest of the La Ronge Gold Project sites, fire extinguishers and other firefighting

equipment will be located at strategic points throughout the Golden Heart site, including in the

underground mine, and maintained in good working order. Appropriate training will be provided to

ensure an effective and efficient force of appropriately trained individuals is always on site to

perform necessary fire suppression duties.

All precautions will be taken to prevent and suppress forest fires near the sites. Burning or open

fires, except for fire response training, will be strictly prohibited at all sites. Firefighting equipment

will be readily and accessible on site during the fire season as prescribed by Section 21(3) of The

Prairie and Forest Fire Act. As per Section 21(3) of The Prairie and Forest Fires Act, all drills will

have firefighting equipment on site in a readily accessible area and serviceable during the fire

season. All water packs and pails to be kept full of water during the fire season. In addition all heavy

equipment and fuelling sites will have approved and fully charged fire extinguishers installed. All

equipment on site will be kept in good operating condition and clean ensuring there is no build-up of

combustible materials near manifolds, exhaust systems and mufflers.

All fuelling sites will be designated and no smoking allowed near fuelling sites or while operating

equipment.



Once approval to proceed with the project is received and the project implemented the following

information will be submitted to the Ministry of Environment in order to assist the Ministry‟s fire

suppression activities:

An identification of any staff with firefighting training and their training levels;

Radio frequencies, contact phone list, and other communication information for contacting

program staff;

Inventory list of firefighting equipment on site (e.g., aircraft, dozers, skidders, power units, chain

saws, etc.) other than the required firefighting equipment;

An emergency response plan in case of a forest fire including, but not necessarily limited to,

program staff assignments and contacts; steps to be taken for initial suppression; steps to be

taken to contact Ministry of Environment: identify any known nearby industries, residences, etc.;

and,

Golden Band will also follow Ministry of Environment recommendations on the creation and

maintenance of buffers around buildings and equipment.

11.10 General Emergency Response

Golden Band, in cooperation with the underground mine contractor, will maintain and train

underground mine rescue teams. An appropriate level of trained emergency measures response and

associated personnel will be on-site during each shift and all employees will be encouraged to obtain

first aid certification.



12 Potential Impacts and Mitigation

12.1 Assessment Scope and Methodology

This section presents a general overview of the assessment methodology adopted to conduct this

environmental assessment (EA) and to prepare the Environmental Impact Statement (EIS). The

assessment methodology reflects the requirements of the Environmental Assessment Act

(Saskatchewan) and the Canadian Environmental Assessment Act (CEAA).

It also defines the „scope of the project‟ and the „scope of the assessment‟ which provides the

framework used to conduct the environmental assessment.

12.2 Project Options/Alternatives

One of the purposes of undertaking an environmental assessment is to determine whether there are

alternative means of carrying out the project which could meet the project objectives, but would be

preferable from environmental or other considerations. Therefore, it is important to consider various

alternatives early in the mine planning process and to provide a comparison of each on the basis of

both economic and environmental merit.

Alternative means of completing the project are defined as the various technically and economically

feasible ways that the project can be implemented. For the Golden Heart Gold Project, alternative

means include alternative site infrastructure configurations, alternative water withdrawal,

management and discharge options, and alternative road options. The criteria used to evaluate

alternatives reflected a consideration for both the economic and technical feasibility, predicted short-

term (during operations) and long-term (after decommissioning) effects of the project activity.

Where existing disturbed areas, facilities and licensed waste management facilities are available, (i.e.

existing access trail, the Jolu mill and JAG/Mallard Tailings Management Area) and where

operational experience supports proven approaches and methodologies, alternate means were not

necessarily considered. For example alternate access routes were not considered as the access trail

currently exists and any new routing would result in an additional level of environmental impacts.

Similarly, the Jolu mill and JAG/Mallard TMF currently exists and the construction of a new mill

and TMF to support the milling of Golden Heart ore is economically not viable, would result in

unwarranted environmental impacts and would cause additional public concerns.

A larger open pit or option of several smaller open pits were initially considered the only

economically viable mining method for the Golden Heart deposit and the success of the application

of this mining methodology in the region has been previously demonstrated. However, further

review by Golden Band resulted in various configurations of pits and sizes being considered and a

two stage process (smaller open pit followed by underground mining) was further refined. This

strategy will reduce the amount of surface disturbance (i.e. smaller pit size) and reduces the total



volume of mine rock that will have to be permanently stored on surface – both of which provide an

overall reduction in the environmental impacts of the developing the Golden Heart deposit.

12.3 Assessment Boundaries

12.3.1 Spatial Boundaries

To facilitate the assessment and the interpretation of potential effects associated with the proposed

project-environment interactions, it is necessary to define appropriate spatial boundaries. As

discussed in the environmental baseline reports, these boundaries have been established based on the

scale of potential effects and the requirements of valued ecosystem components.

Valued ecosystem components (VECs) are environmental attributes or components identified as

having a legal, scientific, cultural, economic or aesthetic value (e.g., fish, beaver, caribou, moose and

raptures). They provide a common basis that underlies the environmental baseline studies conducted

in support of this assessment and have been a significant consideration in the development of an

effective monitoring program.

The concept and identification of VECs has more than 16 years of history in northern Saskatchewan

and continues to be an important consideration during consultation on the potential impacts of a

proposed activity or operation.

Identified VECs for the Golden Heart Project include:

Benthic Invertebrates;

Phytoplankton;

Zooplankton;

Predatory fish (Northern Pike and Lake Trout);

Bottom feeding fish (White Sucker and Lake Whitefish);

Fish habitat;

Raptors;

Migratory waterfowl;

Snow shoe hare;

Woodland Caribou, Moose; and,

Muskrat, Beaver, Mink.

In addition, during public consultations, the traditional use of certain areas and components of the

biophysical environment was raised as a potential issue of importance to certain members of the

local Aboriginal community. In order to follow up on this issue, information related to the proposed

project and areas of proposed disturbance and activities was shared with the GIS personnel with the

Kitsaki Management Limited Partnership (owned by the Lac La Ronge Indian Band) who is

conducting GIS mapping for the Lac La Ronge Indian Band. A response was received from Kitsaki

that the proposed activities of the project did not appear to raise any Treaty Land Use issues as

identified to date.



The spatial boundaries adopted for this assessment are provided and described in detail in the

environmental baseline investigations [Appendix II and the Jolu Central Mill Gold Project

Environmental Impact Statement (Golden Band 2009)].

12.3.2 Temporal Boundaries

Three events (or milestones) in the life of a mine project are used to define the temporal boundaries

for this assessment: pre-development activities (i.e. baseline data collection and project planning),

the operational period, and the post operational period.

Pre-development Period

The Golden Heart property has a long history of exploration.

From 1980 to 1996 Golden Rule Resources Ltd., its affiliates, and joint-venture partners explored 25

properties encompassing an area of 85,000 hectares in the Greater Waddy Lake region. Waddy Lake

Resources Inc. further explored and eventually brought the Komis deposit into production. The

baseline environmental investigations were completed by TAEM between 1993 and 1995 and were

submitted in the Aquatic and Terrestrial Baseline Investigations of the Komis Gold Mine Project,

Northern Saskatchewan (TAEM 1996) which formed Supporting Document III of the Environmental

Impact Statement for the proposed Komis underground mine development.

Currently, Golden Band proposes or is conducting its activities on the four separate properties over

an area of approximately 100 km adjacent to provincial Highway No. 102, between the Churchill

River and an area north and east of the community of Brabant Lake. The centre of operations will

continue to be the Jolu site, which includes the JAG/Mallard Tailings Management Facility and Jolu

mill.

As part of completing this and the previous Jolu Central Mill Project Environmental Impact

Statement, Golden Band retained CanNorth to prepare an environmental evaluation of the terrestrial

and aquatic resources in the vicinity of the proposed project areas including the Komis/EP site, the

Jolu site, Bingo site and most recently the Golden Heart site. Field surveys were completed between

2004, 2007, 2009 and 2010. Historic baseline information has also been included where pertinent.

The primary objective of these studies was to describe the current state of the aquatic and terrestrial

environment within the vicinity of the Golden Heart site in preparation for a comprehensive

environmental impact assessment of the project.

To meet this objective the following information was collected:

meteorological (temperature, precipitation, evaporation, and rainstorm frequency) and

hydrological (runoff volume and peak flow potential) station data obtained from the

Meteorological Service of Canada and Water Survey of Canada, respectively;



morphometric measurements of streams crossed by the proposed Golden Heart site access

road including stream discharge measurements;

bathymetry of lakes and bays within the aquatic study area;

limnology, stream discharge, aquatic habitat, fish community, fish spawning use at each of

Golden Band access road stream crossing locations;

water quality, sediment quality, plankton community, benthic invertebrate community,

aquatic habitat, fish community, and fish spawning use of the lakes and bays within the

aquatic study area (primarily Weedy Pond, Weedy Creek, Weedy Bay and the Reference

Lake);

habitat classification and mapping of the terrestrial study area;

vegetation community and rare plant occurrence within the terrestrial study area;

breeding raptor occurrence within the terrestrial study area;

mammal occurrence and the identification of large ungulates, particularly woodland caribou

(Rangifer tarandus caribou), in the terrestrial study area; and,

woodland caribou and moose (Alces alces) habitat occurrence within the terrestrial study

area.

The primary aquatic study area was defined by the location of the Golden Heart deposit, and the

company‟s currently licensed Jolu mill and JAG/Mallard TMF. In addition, a secondary study area

was included to obtain information on a representative lake and bay to act as reference water bodies

once mining activities commence.

For the terrestrial studies, two regional study areas were delineated, including the Greater Waddy

Lake study area (WSA) and the Golden Band Study Area (BSA). The regional study areas were

defined as a result of buffering Golden Band‟s claims by 1.5 km.

Operations Period

The operations period extends from the end of the predevelopment phase until the completion of

mining, milling, and related activities. At the Golden Heart Gold Mine Project, mining activities are

anticipated to take 4 years, followed by 2 years of decommissioning and reclamation.

Post-Operational

The post-operational period includes both decommissioning and post decommissioning time frames.

While effects of the project on some environmental components are limited to the operational years,

some, such as reduced vegetation cover may last a few years or a decade beyond the completion of

decommissioning activities.



12.4 Overview of General Assessment Methodology

The CEAA Environmental Assessment reference guide outlines the need to systematically consider

how project facilities and operations interact with the environment. Where potential „adverse‟ effects

are identified, feasible mitigation measures are to be identified, and an assessment carried out on the

„residual‟ effects.

The proposed mining and milling of the Golden Heart ore body will be undertaken using previously

proven methods and existing milling, tailings management and mill effluent treatment facilities. In

addition, the following considerations were taken into account:

The Project will utilize a variety of existing facilities or areas that have been largely

previously disturbed by exploration or milling. The Jolu mill property currently has

mitigation measures and operational controls in place (Approvals to Operate the Jolu mill

and JAG/Mallard TMF which require monitoring).

The effectiveness and success of a variety of operational practices, facility processes, and

mitigation measures that have been determined from actual operational and environmental

performance data available from previous operations of the La Ronge Gold Project sites and

from similar operations in the region (i.e. the former Contact Lake Gold Mine, etc.).

Prediction of environmental effects utilizes extensive operational and environmental data,

which provides a sound basis for predicting future performance, and therefore impacts with

confidence;

The description of the existing environment considers both pre-development baseline

conditions at the Golden Heart, the current state of the environment at the site and at the Jolu

mill; and,

A detailed consideration of potential malfunctions or accidents and there potential impacts.

In conducting the environmental assessment there was also a need to systematically consider how

project facilities and operations interact with the environment. Where potential „adverse‟ effects

were identified, feasible mitigation measures were identified, and an assessment carried out on the

„residual‟ effects.

Accordingly, a robust approach has been applied in carrying out this assessment, as discussed briefly

in the following paragraphs.

A description of the existing environment provided in Section 5 provides the basis to determine the

likely interactions between the project components/activities and the surrounding environment; and

likewise between the environment and the project. The environment, as defined by the Saskatchewan

Environmental Assessment Act, was considered and characterized in terms of „environmental

components‟ that may be affected by the project. The consideration of various aspects of culture,



heritage, archaeology and traditional land and resource use was limited to those that are likely to

result from project effects.

Valued Ecosystem Components (VECs) identified through northern consultation were specifically

considered in the environmental assessment.

The starting point in conducting the EA was to characterize the project components/activities

associated with various feasible alternatives (technically and economically) that have been defined,

and to identify those that have the potential to interact with the surrounding environment. The

potential project-environment interactions for this assessment are associated with various „inputs‟

and „outputs‟ required for activities, such as mining, milling, and the operation of supporting

facilities and infrastructure.

The inputs largely consist of consumables (e.g., materials, fuel, reagents) and labour; the outputs

consist of useful products (gold) and various waste products. There are also supporting facilities and

activities, such as transportation, which can interact directly with the environment. The Project

Description (Section 6) focuses on identifying each of the input and output components, and

supporting facilities/activities, and characterizing their potential to interact with the environment.

The assessment of environmental effects involved predicting and evaluating the likely environmental

implications of the proposed project and of feasible alternatives. The assessment was carried out in a

systematic manner, as discussed below.

In the final analysis, a six-step process was used to assess project impacts in order to ensure that the

interactions between the project components and the project setting are adequately described, that the

likely effects are identified and properly assessed, that mitigation measures are applied, and that the

significance of any residual effect is determined. The steps are as follows:

Step 1: Describe the project facilities and activities.

Step 2: Identify and describe those components of the project setting (environmental, socio-

economic, heritage, etc.) that will be or could be affected by the project development.

Step 3: Identify the nature and extent of the impact of any interaction between the project and the

existing project setting.

Step 4: Identify proposed measure(s) available to manage the impacts identified in Step 3.

Step 5: Identify the magnitude, frequency, duration, significance and mitigative measure applicable

to minimize of any residual effects on VECs of the project after mitigation measures are applied.

Step 6: Assess the significance of any residual effects.



12.5 Ranking of Potential Environmental Impacts

In assessing the potential impacts of the proposed Golden Heart Gold Mine Project, the following

definitions are provided to describe the significance of potential effects on the environment and

hence the potential risks associated with an activity:

No effect means that there is no interaction between the activity (or substances, etc.) and the

population or that the interaction has no effect.

Negligible effect is defined as one affecting the population or specific group of individuals at a

localized area and/or over a short period in such a way as to be similar in effect to small random

changes in the population due to natural environmental fluctuations, but having no measurable effect

on the populations as a whole.

Minor effect is defined as one affecting the population or specific group of individuals at a localized

area/or over the period (one generation or less), but not affecting other trophic levels or the integrity

of any population as a whole. It may be localized.

Moderate effect is defined as one affecting a portion of a population, which may result in a change in

abundance and/or distribution over one or more generations of that portion of the population or any

population dependant on it, but does not change the integrity of any population as a whole. It may be

localized.

Major effect is defined as one affecting a whole population or species in sufficient magnitude to

cause a decline in abundance and/or a change in distribution beyond which natural recruitment

(reproduction, immigration, to affected areas) would not return that population or species, or any

population or species, or any population or species dependent on it, to its former level within several

generations.

12.6 Identification of Potential Impacts

Table 21 provides a summary of identified potential impacts, the expected duration and the

significance of the identified impacts to various components of the natural ecosystem and proposed

mitigation to address the identified impact. The last column identifies potential residual impacts after

the successful application of mitigation measures including the successful decommissioning of the

project.

The ability to successfully decommission the site and minimize the residual effects has been

developed with due consideration of the operational impacts/effects of previous gold mining

operations in the region, their success in implementing mitigation activities and effectively

decommissions the sites. These include the former Waddy Lake Resources Komis project, the former

Cameco Star Lake Gold Operation, and the former Cameco Contact Lake Gold Mine projects and

the history of the Jolu site itself.



Table 21: Potential Impacts and Mitigation Measures

Site/Activity Potential Impact to Ecosystem Component

Duration of Impact Significance of Impact

Mitigation Residual Impacts

(Assumes Successful Mitigation)

Golden Heart Mine Site

Existing access trail upgrade and pipeline route upgrade

- Removal of vegetation in right of way

- Dusting

- 4 years - Minor effect

- Decommission, re-vegetate & close road

- Appropriate dust suppression measures (wetting with clean water)

- No effect

Vehicular traffic & ore haulage

- Wildlife disturbance

- Wildlife interactions

- Dusting

- 4 years

- Negligible effect

- Minor effect

- Minimize traffic volume

- Sound vehicle maintenance

- Enforced speed limits

- Qualified & careful operations

- Appropriate dust suppression measures

-Caribou Management/Protection Plan

- Negligible effect

Mine dewatering - Ground water drawdown - 4 years - Negligible - Natural recovery (passive mitigation) - Negligible effect

Mining of open pit and underground

- Removal of vegetation

- Surface disturbance

- Permanent

- Permanent

- Moderate

- Moderate - Post closure flooding - Negligible effect

Mine rock management - Removal of vegetation

- Surface run-off to muskeg

- 4 years

- Permanent

- Minor

- Negligible

- Re-contouring

- Re-vegetation - No effect

Mine water discharge - Downstream aquatic environment

- 4 years

- Reduced volumes in years 2-5

- Negligible - Maximize recycling

- Effective mine water settling - No effect

Temporary ore storage - Leachate - 4 years - Negligible

- Appropriate capture and management of leachate

- Re-vegetate

- No effect

Surface facilities/infrastructure

- Removal of vegetation

- 4 years

- 4 years - Minor effect - Decommission and re-vegetate - No effect

Mining Operations - Air emissions - 4 years - Negligible - Monitoring and maintenance

- Dust suppression - Negligible effect

Freshwater withdrawal - Draw down of water (Waddy Lake)

- 4 years - Negligible - Natural recharge of lake waters (passive mitigation)

- No effect

Noise (Pit blasting & vehicle traffic)

- Impact to wildlife - 1 year

- Year 2-4 reduced - Negligible

- Minimize blasting as required

- Noise abatement strategy if warranted - Temporary negligible effect



Jolu Mill Site

Vehicular traffic & ore haulage

- Wildlife disturbance


- Dusting

- 4 years

- Negligible effect

- Minor effect






- Caribou Management/Protection Plan

- Negligible effect

Mill Operations - Air emissions

- Noise - 4 years - Negligible

- Monitoring and maintenance

- Noise abatement strategy if warranted - Negligible effect

Freshwater withdrawal - Draw down of water (JoJay Lake)

- 4 years - Negligible - Natural recharge of lake waters (passive mitigation)

- No effect

JAG/Mallard Tailings Management Facility (TMF)

Operation

- Seepage to downstream environment

- 4 years - Negligible - Inspection & maintenance

- Monitoring of Mallard Creek and Yew Lake - Negligible effect

Operation - Air emissions - 4 years - Negligible - Appropriate dust suppression measures - Negligible effect

Operation - Reduction in Mallard Creek flow

- 5-7 years - Minimal - Freshwater diversion works, discharge of effluent, attenuation of flows in diversion works

- Negligible effect

Treated effluent discharge - Discharge to Mallard Creek & downstream aquatic environment

- 4 years - Negligible

- RO treatment of effluent

- Minimize discharge volumes

- Monitoring

- Negligible effect

Surface facilities/infrastructure

- Removal of vegetation - 4 years - Minor effect - Decommission and re-vegetate - No effect

Cumulative Impacts



Ore Haul - Wildlife disturbance


- 4 years

- 4 years

- Negligible effect

- Minor effect






- Negligible effect

Cumulative Impacts

Vehicular Traffic - Wildlife disturbance


- 4 years

- 4 years

- Negligible effect

- Minor effect






- Negligible effect

Increased Traffic - Air emissions - 4 years - Negligible





- Negligible effect

Increased local access - Increase in hunting/fishing - 4 years - Negligible (access roads currently exist)

- Restrict access

- No site fishing/hunting policy

- Decommission and close access roads

- Negligible effect



12.7 Water Quality & Quantity

Mine water and surface runoff will be appropriately managed at the Golden Heart site by the

collection, treatment (as required) and discharge to a low, muskeg area northwest of the open pit.

Water from the muskeg area eventually makes its way to Weedy Bay of Lower Waddy Lake. Based

on the anticipated flow volumes and quality of the site discharge, no measurable impacts are

anticipated on the hydrological regime or water quality of Weedy Pond, the muskeg area, Weedy

Bay or Lower Waddy Lake. By extension there will be no discernable or measurable impact on the

potable water source of the nearest community (Brabant Lake), or for local trappers in the general

area.

Both the predicted effluent quality, (Table 13) and the existing groundwater quality (Table 5 -

Groundwater Chemical Analysis from the Hydrogeological Assessment (Appendix IV)) were

reviewed and the predicted effluent quality and existing groundwater compare to Saskatchewan's

Drinking Water Quality Standards and Objectives (Saskatchewan Environment 2006). The water

quality met chemical health maximum allowable concentration and interim maximum chemical

health criteria.

The average water inflow into the Golden Heart open pit during the initial mining of the pit will be in

the order or 43 m3/day. The inflow is expected to decrease quickly after the first month of mining.

After a period of 5 years the groundwater flux into the pit is expected to be approximately 4 m3/day.

Past experience at operating gold mines and at the currently operating Roy Lloyd mine have

consistently demonstrated discharge water quality similar to that predicted in the EIS. The effluent

will be discharged into the muskeg immediately opposite the mine and will travel approximately 2

km thorough an undefined channel in the muskeg before entering Weedy Bay of Waddy Lake. When

the volume of water, anticipated water quality, the polishing effect of passage through the muskeg as

well as the diffusion the muskeg area will provide to the effluent are all considered, it can be

confidently said that there will be negligible impacts from effluent discharge.

Based on the relatively short period of time that the Golden Heart mine will be operated (4 years of

mining and 2 years of decommissioning and reclamation), no measurable cumulative impacts are

anticipated on the hydrological regime or water quality of any of the water bodies or on the potable

water of the nearest community (Brabant Lake).

Notwithstanding this assertion, Golden Band Resources will establish a monitoring program to

ensure that the discharges from the site are having no measurable impact on the water quality in

Weedy Bay of Waddy Lake.

The proposed monitoring stations are described in Section 15.1.1, but the locations of the monitoring

stations and sample frequency will be subject to review and acceptance by MOE. Figure13 shows

the flows from the proposed Golden Heart site in relation to the community of Brabant Lake. As can



be seen there is a significant distance between the site discharge and the community of Brabant

(approximately 9 kms of lake and rivers).

Section 15 provides a summary of proposed water quality monitoring at the site and includes a

proposed reference monitoring station within Waddy Lake at which water quality samples will be

analysed on a quarterly basis (Analytical parameters proposed include pH, Conductivity,

Temperature, TSS, TDS, Al, As, Ba, Cd, Co, Cr, Cu, Fe, Hg, Mn, Mo, Ni, Pb, Sb, Se, V, Ca, Mg, K,

Na, HCO3, SO4, Cl, TKN, NH3, PO4, TOC, Turbidity). Similarly, a second "potential impact

station" is proposed in Weedy Bay of Waddy Lake (near the muskeg discharge to the lake). The

same set of parameters will be monitored at this station on a quarterly basis.

Once Ministerial Approval pursuant to the Saskatchewan Environmental Assessment Act has been

issued for the Golden Heart Project, Golden Band Resources will finalize the design the monitoring

program in consultation with the Saskatchewan Ministry of Environment who are required to review

and approve the monitoring program prior to the commencement of operations. At that time the

location of the water quality monitoring stations in Waddy Lake will be finalized.

12.8 Terrestrial Environment

The upgrade of the existing access trail and the development of the various facilities at the Golden

Heart site (including the open pit mine) are anticipated to result in approximately 50 hectares of

physical disturbance to the terrestrial environment. During the development of the facilities, every

effort will be made to maximize the use of previous disturbed areas (i.e. routing the access road on

previously disturbed existing access trail (to the extent possible) in order to minimize the amount of

new disturbance. During development of all facilities, merchantable timber will be harvested and

stockpiled for removal, the organic layer will be removed and stockpiled for use during the

reclamation which will be undertaken immediately (weather permitting) after the cessation of mining

activities.

The area of the proposed Golden Heart site and associated development has been impacted by

previous exploration activity since 1948. Eleven vegetation cover types occur within the GSA. Four

cover types accounted for slightly more than 75% of the GSA, including spruce forest (31.7%,

1030.4 ha), deciduous forest (16.6%, 539.8 ha), regeneration-tree/tall shrub dominated (15.9%, 515.4

ha), and water (11.0%, 358.6 ha). The least common cover types included regeneration-early stage

(0.4%), regeneration-shrub dominated(0.5%), and anthropogenic (2.1%). The remaining cover types

were exposed rock/lichen (6.7%, 218.2 ha), bog (5.4%, 174.7 ha), jack pine forest (5.4%, 176.0 ha),

and fen (4.2%, 137.8 ha).

The proposed footprint (Figure 11) falls almost entirely on the upland vegetation types of jack pine

forest, deciduous forest, and spruce forest, with very limited adjacency to bogs (Figure 5). Thus the

project will impact the upland forest vegetation types, rather than the lowland bog and fen habitats.

Most rare plants in the ecoregion and study area prefer lowland habitats.



Impacts on upland habitats will be minimized, in part, by avoiding known locations of any rare

plants and timing vegetation clearing to avoid breeding/nesting periods of birds.

While there will be disturbance to the terrestrial environment as a result of the mine development,

the short period of time that the Golden Heart mine will be operated (4 years of mining and 2 years

of decommissioning and reclamation) combined with the fact that the site can be returned to a pre-

develop land use within 10 years all combine to minimize the impacts of the project to the terrestrial

environment.

12.9 Air Quality

In general terms, if the wind does not blow toward a receptor, human, or environmental, there will be

no perceived air quality issues; however, in reality, the wind does blow in different directions with

varying frequencies. Contaminant and particulate concentrations typically decrease with increasing

wind speed as a result of dilution. When wind speed is high, there is good dispersion; however, with

a low wind speed local contaminant concentrations near the ground can be higher. Wind speed also

induces mechanical turbulence as a result of flows around obstacles on the surface, such as

topography, buildings, etc.

The nearest community to the proposed Golden Heart mine is the Northern Settlement of Brabant

Lake which is approximately 12 km south of the proposed mine site. The prevailing winds in the

area (based on reports for La Ronge and Lynn Lake) are from the west (W) with wind speeds

averaging 11.3 and 12.2 km/h, respectively. The maximum hourly wind speeds range from 46 to 65

km/hr and 50 to 70 km/hr, respectively.

12.9.1 Construction, Operations and Decommissioning

In order to assess the impacts of air emissions for the entire life-of-mine (the construction, operation,

decommissioning /reclamation and post closure phases) a comprehensive list of all potential air

emission sources at the Golden Heart project has been developed and assessed (Appendix VII).

Emissions during the construction phase include those resulting from clearing, earthworks

construction, hauling of rock and till, hauling of supplies and equipment, equipment movement and

exhaust emissions.

Emissions during operations include mine and building heating, power generation, ore and mine rock

handling and transport, explosives usage, drilling, and mine rock pile fugitive emissions.

Emissions from site buildings and equipment were estimated using the United States Environmental

Protection Agency (US EPA) Document No. AP-42, 5th edition, which is available by chapter on the

Internet. Equipment exhaust emissions (NOx, CO and PM) were estimated using Table 2 from the

“Guidance Document – Off-Road Compression-Ignition Engine Emission Regulations” (March

2006) published by Environment Canada. Emissions of NOx, CO and PM from pickups was

estimated using the US EPA document entitled “Federal and California Exhaust and Evaporative

Emission Standards for Light-Duty Vehicles and Light-Duty Trucks” (February 2000). SOx



emissions from equipment were estimated using Table 3.3-1 from the US EPA document “AP-42”.

SO2 emissions from pickup trucks were estimated using a maximum sulphur concentration in

gasoline of 30 mg/kg and the assumption that all sulphur is converted to SO2 in emission. Particulate

fugitive emissions associated with the equipment and trucks were estimated using the US EPA AP-

42 document.

Exhaust emissions for equipment, including stationary sources, such as heater exhaust, power

generation and compressor were obtained by using the National Pollutant Inventory Reporting data

submitted for the Roy Lloyd (formerly Bingo) mine site during the operation of the underground

exploration program.

During decommissioning, it is anticipated that emissions will be generated from the hauling of rock

and till, the re-sloping of the mine rock pile, sealing entrances to the underground mine, berming the

open pit, dismantling ancillary facilities and transporting them off site, culvert removal, and

scarification along the access road (during the post closure period).

The total emissions rate as well as a mass release rate in grams per second (g/s) over the entire life-

of-mine have been calculated and include the above as well as dust generation from equipment usage

along the access road, site roads and site in general, emissions from support facilities and the

emissions generated during the transport of ore and placement of mine rock on the mine rock pile.

The detailed results of the assessment are provided in Appendix VII.

12.9.2 Ore Haul – Golden Heart to Jolu Mill

Golden Band also examined the haulage of ore on Highway No. 102 to determine if the level of

particulate and/or exhaust emissions required further analysis, or whether there was sufficient

justification to demonstrate that there are no cumulative impacts associated with the additional

vehicles on Highway No. 102. Golden Band is unaware of any specific actions by the Ministry of

Highways and Infrastructure with regard to dust suppression on Highway #102 near the communities

of Brabant or Missinipe however, Saskatchewan Ministry of Highways and Infrastructure noted in

their comments on the October 2008 draft version of the Environmental Impact Statement for the

Jolu Central Mill Gold Project (EIS) (which estimated an addition 8 round trips per day) that the

existing traffic counts on Highway 102 range between 150 to 200 vehicles per day. The Ministry

stated in their review comments that “as a result, the additional mine traffic would be, as proponents

says, “a minimal increase””.

As the project generated traffic along the highway is expected to be minimal and given the

geographic separation between the highway and the site (a minimum of 8 km) there is not expected

to be any cumulative air impacts associated with Highway No. 102 traffic and activities on site or on

the site access road.



12.9.3 Conclusion

When the information provided in Appendix VII is considered with the fact that the nearest

community (Brabant Lake) is located approximately 12 km south of the mine site and the prevailing

winds in the project area are westerly, no impacts to the residents of the community are anticipated

as a result of the operation of the Golden Heart mine.

12.10 Migratory Birds

An application such of this Golden Heart Project proposal must assess the application of the

requirements of the Migratory Birds Conservation Act as they relate to the project. Terrestrial,

aquatic and wildlife baseline investigations of the Greater Waddy Lake study area (WSA), which

includes the Jolu mill site, were conducted in 2004, 2006, and 2007 by Canada North Environmental

Services (CanNorth). CanNorth was also retained in 2009 and 2010 to prepare an environmental

evaluation focussed on the terrestrial, aquatic and wildlife resources in the vicinity of the Golden

Heart deposit.

Based on these investigations, the project area hosts a multitude of surface water bodies

(approximately 40% of the surface area) and therefore composed of a multitude of sites suitable for

both temporary use and nesting residency by migratory bird species. In all its activities Golden Band

will make every effort to avoid negative impacts to migratory birds by scheduling construction

activities to minimize, to the extent possible, disturbance of potential resident or nesting migratory

bird. This combined with the short duration and type of activities proposed to complete the

development, operation, decommissioning and reclamation of the Golden Heart mine no discernable

or measurable impact to migratory birds is anticipated as a result of the approval of the project.

Migratory birds are temporary residents in the area and will avoid areas of human activity and

Golden Band intents to conduct all clearing of vegetation during the winter months when migratory

birds are absent. As a result, the proposed project will not impact migratory birds as there is

significant suitable habitat in abundance in the area for the birds to locate. No disturbance and

minimal on-going activity will take place near any shorelines and therefore the proposed project will

have negligible impact to shoreline birds.

Not-with-standing this Golden Band is committed to conducting appropriate spring breeding bird,

spring water bird, and fall bird migration surveys prior to project development.

During operations, in the event that migratory and/or resident birds are observed in close proximity

to or on the JAG/Mallard TMF, Golden Band will implement intervention actions to minimize the

potential of those birds to realize a negative impact. In addition, Golden Band prohibits hunting by

any employee or contractor while on site or on any access road to a site.



12.11 Navigable Waters

Two aspects of the Golden Heart project (access road stream crossings and freshwater intake

installation) have the potential to impact navigable waters.

The Navigable Waters Protection Act (NWP Act) is a federal law designed to protect the public right

of navigation. It ensures that works constructed in navigable waterways are reviewed and regulated

so as to minimize the overall impact upon navigation. The NWP Act includes provisions for the

removal of unauthorized works or obstructions that render navigation so difficult it proves to be

considered dangerous. Within the Act “Navigable Waters” are defined as including any body of

water capable of being navigated by any type of floating vessel for the purpose of transportation,

recreation or commerce.

Under a new (April 22, 2009) Order issued by the Minister, a section of waterway can be designated

a class of waterway (i.e. a “Minor Navigable Water Way”) under the circumstances summarized in

Table 22.

Table 22: Minor Navigable Waters Characterization

Minor Navigable Water Way

Considered a minor navigable water way if the average width at the high-water level is < 1.2 m over a 200 m section of the water way

or

Considered a minor navigable water way if the average depth at the high-water level is < 0.3 m

Section 2

Considered a minor navigable water way if the average width of the navigable waters measured at the high-water level is 1.20 m or more but not more than 3.00 m over a 200 m section of the water way

and

(a) the average depth of the navigable waters measured at the high-water level is 0.30 m or more but not more than 0.60 m;

(b) the slope of the navigable waters measured at the high-water level is greater than 4%;

(c) the sinuosity ratio is greater than 2; or

(d) there are more than two natural obstacles in the navigable waters, at

least one of which is upstream and another of which is downstream from the midpoint of the center line of the navigable waters.

Section 3

“high-water mark” means the mark left on the landscape by the highest

level reached by navigable waters that has been maintained for a sufficient period to leave the mark on the landscape.

If designated a minor navigable waters, section 5.1 of the Navigable Water Protection Act exempts

the works from meeting the requirements of section 5 of the NWP Act (i.e. having Ministerial

approval).

Each of the stream crossings required for the upgrading of the Golden Heart access road was

assessed with regard to its impacts to navigable waterways as prescribed by the NWP Act.



Road Upgrade & Navigable Waters

The figures contained within Appendix II provide a photographic summary of each of the waterways

(streams) in the immediate vicinity of where that the upgraded Golden Heart access road will cross.

As can been seen from a review of the photographs, all of the streams are relatively small in size and

all contain natural obstacles that prohibit the navigation of the stream by any type of floating vessel

for the purpose of transportation, recreation or commerce. As a result, the upgrade of the Golden

Heart Access road will have no impact on navigable waterways.

Freshwater Intake & Navigable Waters

The only other aspect of the proposed Golden Heart Gold Mine Project that will take place in any

waterway or water bodies in the area is the installation of a fresh water intake in Weedy Bay;

however the placement of the intake will in no way impede navigation.

12.12 Mitigation of Potential Impacts

12.12.1 General Mitigation

The prospect of a project such as the Golden Heart Project will have some level of environmental

impact; however, mitigation measures implemented during the development and operation of the

facilities will reduce the severity of those impacts and this, combined with the implementation of an

effective decommissioning and reclamation strategy at the end of operations, will significantly

reduce the intensity and duration of the majority of the impacts. Many of these are described in the

previous table. In addition, the entire Golden Heart project is scheduled to be completed within six

years (4 of mining operations and 2 for decommissioning and reclamation) and reclamation activities

are expected to return the area to a condition similar to pre-development within a decade (i.e. the

time required to re-establish a reasonably diverse, although young, terrestrial ecosystem).

The following provides a discussion of the proposed mitigation measures to be employed on those

components of the local ecosystem that could be considered more susceptible to negative impacts

resulting from project development and operation.

The open pit, water settling ponds, tailings management facilities, mine rock storage piles will be

active 24 hours per day for, on average, 350 days a year during construction and operations. As a

result, it is unlikely that wildlife or birds will enter the areas as activity and noise will cause wildlife

avoidance. This combined with the fact that the areas will contain very little ponded water with low

concentrations of contaminants of potential concern results in the conclusion that the identified areas

will pose little to no threat to birds or wildlife. In addition, post-closure experience in the area

(Contact Lake Mine, Star Lake Mine, Waddy Lake Mine) has demonstrate that all of the areas

identified can be decommissioned and reclaimed in a manner that poses little long term risk to

wildlife and the site can be returned to a land use similar, if not identical, to that of the pre-disturbed

condition.



12.12.2 Rare Plant Mitigation

Six rare plant species were observed during the 2007 and 2010 rare plant surveys, including:

Few-flowered sedge (Carex pauciflora);

Three-fruited sedge (Carex trisperma);

Yellow touch-me-not (Impatiens noli-tangere);

Heart-leaved twayblade (Listera cordata);

Alaskan clubmoss (Lycopodium sitchense); and,

Lesser bladderwort (Utricularia minor)

Vegetation surveys completed in 2007 and 2010 have confirmed that no rare or endangered species

are present in the areas proposed for the development of the pit, mine rock, ore storage facility or any

other infrastructure at the proposed Golden Heart site.

As the rare plant survey focused on areas which will be disturbed if the Golden Heart project

approved, most of the rare plants that were identified are in close proximity to or within previously

disturbed areas along the existing access trail. It is possible that the disturbed soils and increased

light on the forest floor along the existing Golden Heart trail may provide a diversity of habitat

suitable for some rare plant species (eg. yellow touch-me-not), and thus the presence of the existing

trail may be a factor in their distribution. However, it is more likely that the distribution of rare

plants outside the study area is equivalent to that observed in the 2010 study area as several of the

species observed in 2010 in the GSA were also observed outside of the GSA in the WSA in 2007.

These included the Alaskan club moss, three-fruited sedge, and lesser bladderwort (CanNorth 2008;

CanNorth unpublished results).

As the Saskatchewan Activity Restriction guidelines (SKCDC 2003) dictate that a 50 m avoidance

area be established to avoid rare plants during heavy disturbance activities such as road construction

and during the June and August 2010 surveys, the majority of the avoidance areas (50 m radius)

were marked with flagging tape. Some of the identified “avoidance areas” abut the existing trail and

three of the rare plant occurrences are within 50 m of the existing trail.

The CanNorth rare plant investigation focused on the existing exploration trail and the final routing

of the upgraded road has yet to be finalized. During the final design of the route, Golden Band will

consider all of the rare plant occurrences and make every effort to avoid disturbing the sites during

the road upgrading activities.

In the event that the routing of an upgraded road cannot avoid a particular rare plant occurrence,

Golden Band will undertake the transplantation of the plant to alternate locations of suitable habitat

outside the potential impact area. Based on the CanNorth investigation and recommendations, it is

anticipated that this would provide successful mitigation. The three species that could possibly

require transplantation (few-flowered sedge, yellow touch-me-not, and Alaskan club moss) all have

fairly general habitat requirements (few-flowered sedge occurs in digressional areas such as bogs,



fens, and in riparian areas) growing on Sphagnum moss; yellow touch-me-not is a colonizer of

disturbed soils on stream margins and floodplains; and Alaskan club moss grows with reindeer

lichens on sandy Brunisolic soils under jack pine).

In addition to avoidance and transplantation, additional mitigation measures will be considered

during all road upgrade activities. These include, but are not necessarily limited to:

topsoil salvage and replacement as the salvaged topsoil may contain viable seed or

propagules of rare and other native plants;

the documentation of rare plant mitigation work for each occurrence location, including

topsoil salvage and replacement, and any transplantation, seed collection, and/or other

similar work that may be conducted; and

if transplantation is required, the monitoring and reporting of transplantation success on a

schedule and duration agreed to by SKCDC and the Ministry of Environment in order to

evaluate the success of mitigation measures.

In all vegetation related activities, Golden Band will avoid the introduction of exotic species by:

ensuring that equipment is clean and free of weeds before moving into areas of native

vegetation;

limiting vegetation clearing to only those areas necessary for construction and safety,

limiting grubbing to areas that will be filled or excavated and clearly marking all work area

boundaries to prevent excessive clearing of vegetation outside the designated work area; and

implementing re-vegetation (using only a Ministry of Environment approved seed mix) as

soon as reasonably possible after disturbance in order to rapidly establish ground cover.

12.12.3 Woodland Caribou Mitigation

Sensitive wildlife identified in the study area during baseline investigation included woodland

caribou (Rangifer tarandus caribou), which are listed as threatened by the Committee on the Status

of Endangered Wildlife in Canada (COSEWIC) and vulnerable by the government of Saskatchewan

(SKCDC). The baseline investigations at and surrounding the Golden Heart Site and the proposed

access road identified the habitat within the footprint of the proposed mine and associated activity as

having generally low suitability for caribou with some patches of moderate, and very little highly

suitable habitat for woodland caribou and no woodland caribou signs was noted in the Golden Heart

Study Area.

A study conducted by TAEM (1996) in the Round Lake-Komis mine site area (which is in close

proximity to the proposed Golden Heart site) reported observations of caribou tracks in January and



April 1995. TAEM (1996) also reported observing two caribou on lake ice during their aerial survey

approximately 10-20 km southwest of their study area in April 1995.

Traditional knowledge of caribou presence in the study area is limited. Local residents report having

“heard” of people seeing caribou in the area to the south but not in the Jolu area (Walter Charles,

pers. comm.). Formal knowledge of caribou use of the area is limited; however, there is evidence to

suggest that caribou have persisted in the project area from at least 1995 until present.

Woodland caribou are currently designated as “threatened” federally (COSEWIC 2002) and as

“vulnerable” by the Saskatchewan government (SKCDC 2007).

The Saskatchewan woodland caribou population is estimated to be 4,250 animals. The La Ronge

Gold Project area falls within the Steephill-Foster Woodland Caribou Management Unit (WCMU).

The population of the Steephill-Foster WCMU is projected to be 1,392 animals (Godwin and Thorpe

2000, Arsenault 2003). Within this WCMU, caribou populations are predicted to occur at a density

of 0.033 animals per km2.

Two factors are particularly important for the Steephill-Foster WCMU. They are:

Hunting mortality for subsistence use; and,

Access/linear feature development (roads and trails).

An increase in the amount of hunter access can have a direct impact on hunter harvest in an area

(AWCRT 2005). To mitigate development activities and minimize the incremental impact of the

Golden Heart project, a caribou protection plan has been developed and implemented by Golden

Band on its properties which will be extended to cover all activities at the Golden Heart site in order

to assist in planning and implementation of government mitigation strategies. These mitigation

strategies will help offset the negative effects associated with linear feature and road/trail

development.

Golden Band will have a strictly enforced policy that prohibits hunting by any employees while on

site or while in transit to work on the access road.

Golden Band Caribou Management & Protection Plan

Notwithstanding the low suitability of the Golden Heart site area for woodland caribou, Golden Band

has prepared a Caribou Management/Protection Plan covering all of its La Ronge Gold Project sites.

The plan, which was submitted to the Saskatchewan Ministry of Environment, reviewed and

approved, has been implemented at all of the La Ronge Gold Project sites and, will be extended to

cover the Golden Heart site once the project is approved.

The following provides as brief summary of the most pertinent aspects of the Caribou

Management/Protection Plan.



1. Golden Band has a strictly enforced policy that prohibits hunting by any employees while on

site or while traveling to and from the work place.

2. Timing of Industrial Activities - To the maximum extent possible, all activities are planned

to minimize impacts to caribou.

3. Minimizing Disturbance/Access Management - An increase in development and the amount

of linear features on the landscape is the most significant industrial footprint in boreal

caribou range. Every effort is made to construct as few new access roads/cut lines as

possible. When considering the need for and design of access roads the following objectives

are considered:

a. Utilize existing access whenever feasible;

b. Be as narrow and non-linear as possible (meandering);

c. Be as short as possible (taking meandering into account);

d. Minimize overall line of sight when feasible by utilizing doglegs;

e. Have minimal disturbance to duff/organic layer to facilitate and speed natural

recovery;

f. Every effort is also be made to locate access roads/trails in a manner that effective

caribou habitat is avoided and not fragmented. High quality/effective caribou habitat

is avoided where possible. Communication with other land users is used to ensure

that other operators in the area are consulted to ensure no duplication in

construction/road building occurs;

g. Physical barriers are minimized. Road height designs consider that caribou have line

of sight to habitat across roads. Road maintenance and construction takes into

account the ability of caribou to cross such physical barriers as berms and snow

banks. Minimum bank heights are maintained and at the end of the winter season,

snow banks are knocked down to facilitate movement; and,

h. Access is managed so that public use is restricted. Authorized vehicles must travel at

reduced speeds to minimize vehicle-animal collisions. Vehicle-pooling and minimal

commuting distances is also encouraged.

4. No new access roads are planned as part of the Golden Heart Project. The existing trail to the

site and trail to the freshwater intake will be upgraded to improve trafficability and road will

be used all year round. Should additional roads be required in the future the objectives

provided within this plan will be considered as part of the mitigation measures when

designing and constructing roads.



5. Caribou Range Restoration - Restoration work will begin at the completion of the proposed

activities.

6. Wildlife Sightings - As part of the Caribou protection measures Golden Band encourages all

employees to participate in a wildlife sighting system that helps to gather information of the

presence of wildlife at each site and along access roads. Although primarily aimed at

caribou, this system is also employed to track other listed species such as wolverine. The

system will provide a means for monitoring the presence/absence of species such as

caribou over the long term. It is the intent of Golden Band to supply the data from the

program on a regular basis to Ministry of Environment.

Caribou Range Restoration

It is the intent of Golden Band to decommission and reclaim the Golden Heart site, the access road

and other trails in the area as soon as they are no longer required. Details on the proposed

decommissioning and reclamation measures for the entire site are described in Section 9.

The following techniques may be employed to enhance the post-closure caribou habitat in the project

area:

Opportunities for caribou habitat recovery will be considered during initial design and

construction (minimal disturbance and frozen access);

When possible all construction will be completed in a manner that conserves/enhances the

natural recovery of vegetation;

The creation of habitat suitable for use by woodland caribou will be considered in final closure

planning to the extent possible; and,

Access and travel on post-closure recovering/recovered areas will be blocked (roll back of

debris) and minimized.

12.12.4 Noise Mitigation

Noise effects on wildlife have been analyzed in oil and gas development projects to define “zones of

influence” (AMEC 2005) or noise disturbance buffer widths (AXYS 2001; Devon 2006). Buffers

for woodland caribou (Rangifer tarandus caribou) were 300 to 500 m from the noise source, while

buffers for moose (Alces americana) were 200 to 1,000 m from the noise source. Black bear (Ursus

americanus) buffer was 500 m wide. Overall operational noises will be limited to the operation of

heavy equipment and initially to surface blasting. Noise levels to all receptors resulting from blasting

activity are expected to decline sharply once the pit is developed below the first bench and decline

even further in Year 2 when the underground mine is developed.



With regard to the impact to human receptors, the nearest community to the proposed Golden Heart

site is Brabant which is approximately 12 km south of the site. As such, it is unlikely that operations

at the site (including blasting) will cause a significant noise impact to residents of the community.

12.12.5 Air Quality Mitigation

During the development, construction, operation and decommissioning of the Golden Heart mine,

the following air quality issues are likely to be of primary concern:

Emissions resulting from diesel fuel combustion which contains nitrogen oxides, carbon

monoxide, sulphur dioxide and particulate matter (PM10 and PM2.5)

Fugitive dust emissions mining activities including blasting, mine rock and ore

haulage/storage and the hauling of the ore from the mine site to the Jolu mill.

Fugitive dust emissions from mine rock piles.

Several measures will be taken in order to minimise the amount of particulate matter that is released

into the atmosphere or area water bodies as a result of the Golden Heart Gold Mine Project. An

erosion and sediment control plan for the site will be developed which will include, but not

necessarily limited to the following:

Roads, Transportation and Heavy Equipment

Regular watering (preferably with recycled or mine water assuming it is of appropriate

quality) of any unpaved roads or access routes will be conducted during the construction

phase and, the operations phase;

Impose and enforce speed limits during all phases of the project to minimise dust levels and

reduce vehicle emissions;

Restrict idling of vehicles;

Design and construct all roads with the goal of keeping dust levels as low as reasonably

achievable. This may include the use of coarse aggregates or pavement as the preferred road

surface;

Reclaim and re-vegetate as many roads as soon as possible and upon decommissioning of

the mine;

Maintain all vehicles and equipment in good operating condition. Regular inspections will

be carried out and preventative steps taken to ensure the mine fleet is in good operating

condition;

Use extreme caution during refuelling of vehicles and equipment to minimise the release of

hydrocarbons to the atmosphere;



Use low sulphur diesel, if available, to further reduce vehicle emissions;

Stockpiled Materials

Wet any exposed soil stockpiles, waste rock or construction materials that are subject to

erosion from the wind. For long term piles, re-vegetation strategies will be considered as

required;

Consider constructing fencing around piles to reduce wind velocities if required;

Mine Operations

Employ good housekeeping methods at all times;

Select diesel powered engines with low nitrous oxide emissions to prevent ozone formation;

and with low hydrocarbon emissions to lower greenhouse gas emissions;

Use low sulphur content diesel fuel to mitigate sulphuric oxide emissions;

Wet the mine ore stockpile to limit dust emissions;

Blasting and Mine Rock Piles

Limit blasting to calm days or use delay blasting technique;

Consider staggered fencing to reduce wind velocity and fugitive dust;

Vegetate mine rock pile upon decommissioning to prevent erosion and dusting; and

Restrict burning to natural, organic vegetation only. Prohibit the burning of manmade

objects such as plastics as they have a harmful effect on the surrounding environment. All

proper authorities should be consulted prior to any onsite burning.

The air emissions from the construction, operation, closure and post closure periods are predicted to

have a negligible impact on human health and on the environment.

12.12.6 Species at Risk

Golden Band has committed to conducting a spring breeding bird, spring water bird, and fall

migration surveys prior to site development activities. In the meantime, a thorough species at risk

database search and review of the Saskatchewan Bird Atlas (for species known to occur in the area)

will be completed to discern the likelihood of hard-to-detect species, such as common nighthawk and

short-eared owl, occurring in the project area. Because northern leopard frog has not been detected in

other studies in the near and general vicinity of the Golden Heart Project, it likely does not occur in

the project area. It also should be noted that the proposed project is not anticipated to impact any

wetlands. However, spring acoustic surveys will be completed during the same time frame as the

water bird and breeding songbird surveys to confirm this.



If species at risk are found to occupy the area, timing restrictions will be adhered to wherever and

whenever possible. If this is not possible, an environmental monitor will be present to ensure that

construction activities do not impact such species.

12.12.7 Heritage Resource Mitigation

Two new archaeological sites (HbMw-1 and HbMw-2) were discovered during the heritage resource

assessment of the Golden Heart site, access road and freshwater access trail completed by during the

heritage assessment. One site (HbMw-1) was found on a previously disturbed side trail within the

proposed mine site area. This site is not in conflict with the existing access trail and Golden Band

has indicated that the site will be left in place and fenced to ensure that the area is not disturbed

during project development, operations or decommissioning ( i.e., “for avoidance”) although

discussion are currently underway with representatives of the Lac La Ronge Indian Band in order to

obtain their input on the most appropriate strategy to mitigate the site and ensure its integrity. Before

fencing or any other type of mitigation is implemented, additional testing will be conducted by

qualified individuals in order to determine the full extent of the site boundaries.

The second site (HbMw-2) was found on the shore of Lower Waddy Lake. While the site is adjacent

to the mouth of the proposed freshwater intake pipeline, it is not in conflict with the proposed

development and therefore no further archaeological investigations are recommended.

In accordance with correspondence provided by the Heritage Conservation Branch on November 29,

2010, further testing will be conducted provide to site construction, in any undisturbed areas of forest

that the mine foot print will affect.

12.12.8 Traffic on Highway No. 102

Golden Band recognizes that increased heavy truck traffic on Highway No. 102 may cause

deterioration of the road surface, particularly between the Golden Heart mine access roads and the

Jolu access roads. Discussions with the Ministry of Highways and Transportation will be held to

determine what special requirements will have to be met in order to use the heavy trucks and Golden

Band will negotiate an ore haulage agreement with the Ministry. Regardless of what may be

required by that agency, Golden Band will monitor truck traffic to ensure safe driving practices.

This will include speed limits and other relevant considerations.

12.13 Significance of Identified Environmental Impacts & Mitigation

A significant majority of the activities associated with the proposed La Ronge Gold project have

been planned and will be implemented on or within areas that have been previously disturbed and

impacted by past exploration activities.

All of the access trails to the project components currently exist and only the Golden Heart access

and freshwater intake access will require upgrades. The Jolu mill currently exists, as does the

tailings management facility. Tthe methods proposed for tailings management have a proven track



record of success in northern Saskatchewan and at the site itself as evidenced by the identification of

fish within the Mallard TMF during pervious investigations.

The methods proposed to facilitate the various activities associated with the project all have a proven

track record of successfully minimizing the impact at other mines and mills of a similar nature in

northern Saskatchewan. In addition, sites of a similar nature in the same region of the province have

been successfully operated, decommissioned and reclaimed with a limited negative impact to the

environment. This combined with the fact that Golden Band intends to employ the most advanced

industry Best Management Practices (BMP) wherever and whenever possible in all of its activities

and intends to implement a comprehensive monitoring program once approval to proceed is received

and will respond effectively if that monitoring were to demonstrate unexpected results. This,

combined with an effective regulatory oversight of the entire operation will serve to further reduce

the potential of negative incremental environmental impacts resulting from the proposed project.

12.13.1 Valued Ecosystem Components

Based on the assessment conducted, the proposed Golden Heart Gold Mine Project will have a

negligible and temporary impact on the VECs as identified.

12.14 Potential Impacts on Traditional Land Use & Traditional Pursuits

12.14.1 Traditional Land Use

The proposed Golden Heart mines site is located approximately 180 kilometres (km) north of the

community of La Ronge within Fur Block N-9 (Stanley). The entire Golden Band La Ronge Gold

Project is located within the self-declared traditional territory of the Lac La Ronge Indian Band.

Golden Band has also been informed by the Peter Ballantyne Cree Nation that the area has also

historically been used by its members.

During the conduct of this environmental assessment, contact and discussions were held with three

individuals who currently reside in the area of the proposed Golden Heart mine. All were members

of the Lac La Ronge Indian Band and all have a lifelong history of using the area of the proposed

mine for traditional pursuits such as fishing, hunting and trapping.

During discussions, two of the individuals identified that they maintain two separate cabins located

at separate locations on or near Lower Waddy Lake and regularly harvested fish from the lake for

their own consumption. One of the individuals also indicated that he maintains an active trap line in

the area north and east of Lower Waddy Lake and that the line does traversed the proposed Golden

Heart mines site. Although the individual indicated that he does rely on wild game for a portion of

his food consumption, he has not harvest any large game (i.e. moose) in the area of the proposed

mine for at least ten years and does not normally hunt in the area of Weedy pond nor does he use the

Weedy Pond area for the harvest of any type of forest products.



During discussion with a second individual, he indicated that he also actively trapped and that his

trap line traversed the lower portion of the proposed access road to the Golden Heart site.

During discussions, none of the parties was aware of any places of special or historical significance

in the immediate area of the proposed Golden Heart mine and neither was aware of the heritage

resource site located during the baseline heritage survey. Currently, Golden Band is in discussion

with representatives of the Lac La Ronge Indian Band on the most appropriate manner to protect the

integrity of the heritage resources site identified as Heritage Site HbMw-1.

In addition, in January 2011, information related to the proposed project (locations, proposed site

layout and access road routes) was shared with the GIS personnel with the Kitsaki Management

Limited Partnership (the development arm of the Lac La Ronge Indian Band) who is conducting GIS

mapping for the Lac La Ronge Indian Band. The initial response received from that agency indicated

the project as proposed did not appear to raise any Treaty or traditional land use issues.

A community (public) consultation session was also held in Southend Saskatchewan during the

conduct of the environmental impact assessment. The meeting was hosted by PBCN Southend

Councillors, was held in the Reindeer Lake School, took place between 6:00 and 9:30 pm on

Wednesday January 19, 2011 and was well attended. Additional follow-up meetings with a Southend

Councillor have also taken place since that time to discuss issues (primarily employment related)

raised by the community and its members.

During the conduct of the environmental impact assessment, several contacts were attempted to

meet with the Regional Director, Northern Region 1 (regionally elected leadership) of the Métis

Nation of Saskatchewan with no success. Although, this attempt to meet was not successful, public

consultation sessions were held in La Ronge, Missinipe, Brabant Lake and Southend as well as in the

Lac La Ronge Indian Band communities of Grandmother‟s Bay, Sucker River and Stanley Mission

during the environmental impact assessment. The meetings were all well-advertised with posters in

each community as well as announcement on Missinipe Broadcasting and presented opportunities for

the public, including Métis members of the community, to question the proponents and the project

and to voice any concerns that they may have with regard to the development of the proposed mine

and associated activities in the region.

Golden Band is committed to continue an appropriate level of engaging the general public of the La

Ronge region, including people of Métis‟ ancestry and members of the Lac La Ronge Indian Band

and Peter Ballantyne Cree Nation of activities related to the La Ronge Gold Project and any other

activities undertaken (i.e. further exploration in the region) by scheduled public meetings in relevant

communities. This consultation has and will continue to be undertaken in a manner that ensures that

the community members in the area are fully informed about activities of the company in a manner

that maximizes the opportunity for feedback on those activities.



12.14.2 Impacts to Traditional Pursuits & Land Use

Impacts on traditional pursuits such as hunting, fishing, trapping and the collection of medicinal

plants is judged to be negligible in large part because of the relatively small area of disturbance

posed by the development and the fact that the ore body has been the subject of exploration and

exploration drilling on numerous occasions since 1948. Access to the site will be on a trail that has

existed for a number of years and minimal additional disturbance is required in order to commission

the roads to handle the type of traffic proposed.

Golden Band publicly committed that it will negotiate in good faith to ensure a reasonable

indemnification for any legitimate interruptions to commercial trapping activity in the event that the

proposed project receives ministerial approval under the Environmental Assessment Act.

During the short four year period of construction and operation of the mine, the access road from

Highway No. 102 to the site will be a maintained haul road, accessible to the public except for the

end of the roads near the site where a security gate may be used to restrict entrance to employees for

safety reasons. It is Golden Band‟s intent to not restrict aboriginal people‟s access appropriate lakes

and hunting within the area while still maintaining the required safety and security related to public

access to an industrial site.



activities and fully intends to do so in the manner prescribed by the appropriate regulatory authority.

Past experience in the region (e.g. Contact Lake Gold Mine) proves that the site can be

decommissioned to a condition that will allow for the unrestricted access and use similar to that

which the sites were subject to before development. As a result, the disturbance to traditional land

use at the Golden Band site must be considered temporary – lasting a maximum of 6 years in total (4

years of operation & 2 years of decommissioning and reclamation).

12.14.3 Trapper Compensation

Article 14 of the La Ronge Gold Project Surface Lease Agreement 2009 requires Golden Band to

satisfy the Minister that any individual who, immediately prior to the disposition provided for in the

Agreement, used or occupied the Lease Lands by way of lease, license or permit, has been

compensated for their actual monetary losses arising out of the disposition and provide proof of such

to the Minister prior to March 31st of each year.

Section 15.3 provides further discussion of trapper‟s compensation.

12.15 Potential Socio-Economic Impacts

During the four year life-of-mine (operations and decommissioning) approximately 460,000 tonnes

of ore will be mined and transported to the existing Jolu site for milling. The ore from the Golden

Heart mine is required by Golden Band in order to continue operation of the Jolu mill, to maintain or



expand current employment opportunities and to continue the La Ronge Gold Project as a viable and

contributing gold producer in northern Saskatchewan.

Assuming a continued supply of ore, the La Ronge Gold Project is expected to continue to employ

approximately 100 full time employees although the total at any one time will vary depending on

activities and the schedule of mining. Of that total, it is expected that the Golden Heart mine will

allow the continued employment of approximately 25 people at the mining operation with the other

75 people employed at the Jolu mill site and other satellite mines within the La Ronge Gold Project.





services. The project will also provide revenues to the province of Saskatchewan through the

payment of various taxes and fees.

Golden Band is committed to maximizing, to the extent possible, local and northern employment at

the La Ronge Gold Mill Project. A review of current mining operation in northern Saskatchewan

suggests that there may be a shortage of local residents experienced or qualified in mining activities.

It is anticipated that the mining of the Golden Heart deposit will employ approximately 25 people

and provide sufficient resources to maintain the current level of employment at the Jolu mill.

In order to facilitate the employment of local residents at the all of its operations, Golden Band will:

o Continue to work with the Chief and Council of the Lac La Ronge Indian Band, Kitsaki

Management Limited Partnership and community leaders from Brabant, Sucker River,

Grandmother‟s Bay, Stanley Mission, La Ronge, Missinipe, and Southend to facilitate local

employment.

o Continue to work with joint industry-government training and employment initiatives such as

the Mineral Sector Steering Committee” of the Northern Labour Market Committee and

Northern Career Quest projects.

Golden Band is also committed to maximizing to the extent possible the purchase of goods and

services from within the region. Except for a few specialized capital equipment items, specialized

services and chemicals, Golden Band should not have to go beyond the Provincial capital for any

supplies or services. Saskatoon has heavy equipment dealerships and explosives suppliers, and the

regional labour force includes experienced equipment operators and mine workers.

To enhance its operating position in the La Ronge region, Golden Band has entered into an

agreement with the Lac La Ronge Indian Band and their business development organization, Kitsaki

Management Limited Partnership (Kitsaki). Golden Band and the Lac La Ronge Indian Band

announced jointly on September 19, 2007 the signing of a Memorandum of Understanding (MoU)

between the Band and Golden Band. Under the terms of the agreement between Golden Band and



the Lac La Ronge Indian Band, a number of activities required for Golden Band‟s planned

development and gold mining projects will be made available to Kitsaki for the provision of services.

These include underground and surface mining and construction, catering, transportation, and

environmental services. Kitsaki Mining Limited Partnership and Procon Mining & Tunnelling Ltd.

have created the Kitsaki/Procon Joint Venture for the purpose of providing such services to Golden

Band.

In addition to the Memorandum of Understanding between Golden Band and the Lac La Ronge

Indian Band, Golden Band and the Kitsaki Procon Joint Venture also signed a General Services

Agreement. The intent of this agreement is that business opportunities from Golden Band‟s advanced

exploration, pre-development projects, and anticipated future production operations are available to

members of the Lac La Ronge Indian Band. The broader document asserts the commitments that

both organizations have to environmentally responsible mineral development.

Under this General Services Agreement Golden Band states that the Kitsaki Procon Joint Venture

may conduct contract underground and surface mining and construction and the refurbishment of

their licensed mill. Kitsaki has business interests that will also become involved in catering,

transportation, provision of aggregate and environmental services.

As these initial actions demonstrate, Golden Band will continue to explore ways and means to

maximize the purchase goods and services from the La Ronge region assuming that such services

continue to be capable and reasonably cost competitive.



13 Impacts of the Environment on the Project

13.1 Introduction

An environmental impact assessment must also take into account how the environment could

adversely affect the project; for example, severe weather.

13.2 Forest Fire

All facilities associated with Golden Heart Mine and the La Ronge Gold Project will be self-reliant

for fire prevention and suppression. As such, programs, procedures and practices will be developed

and implemented at the site in order to ensure that fire prevention and protection are of paramount

importance.

Fire extinguishers and other firefighting equipment will be located at strategic points throughout the

sites, including in the underground mine and maintained in good working order. Appropriate

training will be provided to ensure an effective and efficient force of appropriately trained

individuals is always on site to perform necessary fire suppression duties.

All precautions will be taken to prevent and suppress forest fires near the sites. Burning or open fires

will be strictly prohibited at all sites, unless they are for firefighting training purposes.

Firefighting equipment will be readily and accessible on site during the fire season as prescribed by

Section 21(3) of The Prairie and Forest Fire Act. As per section 21(3) of The Prairie and Forest

Fires Act, all drills will have firefighting equipment on site in a readily accessible area and

serviceable during the fire season. All water packs and pails will be kept full of water during the fire

season. In addition all heavy equipment and fuelling sites will have approved and fully charged fire

extinguishers installed. All equipment on site will be kept in good operating condition and clean

ensuring there is no build-up of combustible materials near manifolds, exhaust systems and mufflers.

All fuelling sites will be designated and no smoking will be allowed near fuelling sites or while

operating equipment.

Once approval to proceed with the project is received and the project implemented a Fire Control

Plan for the Golden Heart site will be prepared and provided to Saskatchewan Ministry of

Environment, Fire Protection Officer in Southend. The plan will include, but not necessarily be

limited, to the following information:

An identification of any staff with firefighting training and their training levels;

Radio frequencies, contact phone list, and other communication information for contacting

program staff;

An inventory of additional equipment on site (e.g. dozers, power units, chain saws, etc.) capable

of assisting in firefighting; and



An emergency response plan in case of a forest fire including, but not necessarily limited to,

program staff assignments and contacts; steps to be taken for initial suppression; steps to be

taken to contact Saskatchewan Ministry of Environment: identify any known nearby industries,

residences, etc.

13.3 Drought Conditions

The impacts of a short or long term drought in the project area will have a minimal impact on the

project operations as proposed. The two most significant implications with regard to this condition

would likely be the increased potential of forest fires in the area and a potential decrease in surface

flows throughout the project area. As the predicted discharges of all liquid effluents (including

treated water from the Jolu mill water treatment facility) will have relatively low concentrations of

contaminants of concern and therefore not rely solely on dilution to reduce impacts to the receiving

aquatic environment, reduced natural flows in muskegs and natural streams due to short-term

drought are not expected to have a significant effect on the project or its environmental impacts.

Lower Waddy Lake is a large water body and the freshwater withdrawal for use at the Golden Heart

site is not likely to be impacted by drought conditions.

13.4 Major Precipitation Event

Secondary containment facilities, mine water settling ponds and contaminant retention structures will

be constructed to accommodate extreme precipitation events and prevent the inadvertent release of

deleterious substances to the receiving waters. Although not all facilities will be designed to

individually contain a probable maximum precipitation event, they will be designed in a manner that

ensures that if such an event were to occur, potential contaminants will not enter downstream

receiving environment at a concentration likely to have a significant or long-term negative impact on

the environment. This is particularly true if the dilution factor resulting from such an event is

considered.

13.5 GHG Emissions

Once approval of the Golden Heart Project environmental impact assessment receives Ministerial

approval, Golden Band will implement a program to quantify the greenhouse gas (GHG) and air

pollution emission rates for all activities and at all sites and continually pursue opportunities to

reduce both greenhouse gas and air pollution emissions.

The largest emitters of GHG and other pollutants will likely be the burning of fossil fuels for site

heat and power as well as to power mining and other mobile equipment. Maximizing fuel efficiency

and a reduction in fuel consumption will reduce air emissions as carbon-based petrochemical

products are broken up in combustion to form, carbon dioxide (greenhouse gas), carbon monoxide,

volatile organic compounds, nitrogen oxides (smog), sulphur oxides (acid rain), and very fine

particulate.



In order to ensure that the project minimizes, to the extent possible, GHG and other pollutant

emissions, Golden Band will:

Implement regularly scheduled maintenance of all fossil fuel burning equipment;

Monitor fuel consumption;

Minimize unnecessary use of vehicles;

Use group transport to and from the mine sites;

Reduce the amount of time that vehicles were left idling unnecessarily;

Reduce heating (i.e. propane consumption) by appropriately insulating and operating all relevant

facilities; and

Reduce electrical demands by turning off lights in unoccupied buildings and using fluorescent

lights.

13.6 Seismic Event

Extensive research on the tectonic stability of the Canadian Shield has been carried out by numerous

investigators and concluded that the Shield is one of the most tectonically stable areas in the world.

As a result, seismic activity is not a concern.

13.7 Global Warming

Assessing the potential changes in climate resulting from global warming in a particular region of

Canada has been and continues to be a challenge. Although a number of complicated and reputed

general circulation models have been developed and used to simulate the effect of various

concentrations of greenhouse gasses on the global climate, they differ to some extent in terms of how

the operate and the input parameters used. Consequently, although the models produce similar

results on a global scale, significant variations occur on a regional scale.

Generally it can be stated that higher air temperatures are predicted for most of Canada with

noticeably warmer fall and winter periods. The models also suggest that increased winter

precipitation may lead to more intense runoff events and that evaporation and evapotranspiration

rates are generally expected to increase in many areas of Canada.

Potential impacted features of the La Ronge Gold Project including the Golden Heart site will be

designed to handle significant precipitation events and therefore potential increases in runoff do not

pose a significant risk.

The potential of increased winter precipitation (and hence runoff) would likely serve to ensure the

maintenance of the water cover of the tailings management area in the event that evaporation and

evapotranspiration rates do increase as a result of higher mean temperatures.



14 Cumulative Impacts

14.1 Introduction

Cumulative environmental effects, and a determination of the significance of such effects, are key

components of every environmental assessment.

Section 2.9.2 of the Project-Specific Guidelines for an Environmental Impact Assessment, Golden

Heart Gold Mine, 180 km North of La Ronge, Saskatchewan (March 2011) issued by the

Environmental Assessment Branch of the Ministry of Environment states:

The EIS should assess and discuss whether existing environmental conditions, including

other developments in the area, might influence the development or its potential impacts.

The discussion should address whether the project-specific effects of the development

combined with the impacts from the existing and planned developments in the region

(including other exploration and pits for future gold development) will result in, or

contribute to, any cumulative environmental effects or regional effects in the short or long

term. Where potentially significant adverse cumulative effects are identified, additional

mitigation measures may be necessary.

The consideration of cumulative environmental effects related to past and existing activities and

projects within the Golden Heart Gold Project area has been accomplished by documenting the

extent to which previous mining activities have contributed to existing environmental conditions.

Environmental monitoring programs will provide information that is used to assess ongoing effects

in the air, aquatic and terrestrial environments from on-site activities. This aspect is thoroughly

covered in the “Existing Environment” discussion, which describes both baseline conditions (pre-

Project development) and environmental conditions as they now exist at the sites.

The Environmental Impact Statement describes specific projects and potential activities that could

result in the actual or potential overlap of effects.

When the isolated of nature of the site, distance from other La Ronge Gold Project sites and the lack

of any other industrial activities within the region are considered in combination with the small

footprint (spacial extent), the short temporal duration of the proposed project and the mitigation

measures proposed (including decommissioning and reclamation) the Golden Heart Project is

anticipated to have a negligible cumulative effect on wildlife, migratory birds, Species at Risk, or

wetlands.



14.2 Highway Traffic

Saskatchewan Ministry of Highways and Infrastructure noted in their comments on the October 2008

draft version of the Environmental Impact Statement for the Jolu Central Mill Gold Project (EIS)

that the existing traffic counts on Highway No. 102 range between 150 to 200 vehicles per day.

The addition of approximately 12 round trip ore haul trips and other potential traffic resulting from

the operation of the Golden Heart mine will result in an approximate 4% increase in heavy traffic on

the highway. The additional traffic volume on Highway 102 is therefore judged to be a minimal

increase and result in negligible cumulative impacts.

14.3 Air Emissions

The potential for cumulative air emissions impacts from the Golden Heat site with other La Ronge

Gold Project sites and the particulate emissions during the transportation of supplies and ore along

Highway No. 102 has also been assessed. The nearest mine to the proposed Golden Heart mine is

the Komis/EP mine which is approximately 6 km to the west. As a result of this geographic

separation, no cumulative impacts are expected.

Golden Band also examined haulage of ore on Highway No. 102 in order to determine if particulate

or exhaust emissions required further analysis, or whether there was sufficient justification to

demonstrate that there is little to no cumulative impacts associated with the additional vehicles on

Highway No. 102. As the project generated traffic along the highway is expected to be minimal and

given the geographic separation between the highway and the site (a minimum of 8 km) there is not

expected to be any cumulative impacts associated with Highway No. 102 traffic and the site/site

access road.

14.4 Other Active Mines in the Area

Claude Resources Inc. currently operates the Seabee Gold Mine at a location approximately

120 kilometres north east of La Ronge and approximately 50 kilometres east of the Jolu mill site.

Site access to the Seabee site is provided by float planes during the summer and by a winter road that

originates near the Northern Settlement of Brabant Lake and travel in an easterly direction across a

number of lakes before arriving at the Seabee site. This route is used in the winter to supply the vast

majority of the goods (including process chemicals) consumed by the operation of the Seabee gold

mine.

The construction and operation of the Noble Bay Graphite mine (≈3,000 - 7,000 tonnes of graphite

will be extracted annually) is intended to take place north east of Southend or approximately 50

kilometres north east of Brabant Lake. Custom crushing and screening of the proposed quarry

materials, combined with subsequent processing can upgrade material to 95% graphite concentration.

Road upgrades, domestic sewage system, and installation of power lines will be required to

accommodate the proposed project.



Although in the same general region of the province the other mine and/or mill sites La Ronge Gold

Project sites, the Seabee and Noble Bay Graphite mines) are of sufficient distance apart that

measurable cumulative effects will not be realized in any component of the biophysical environment

(water, terrestrial or atmospheric).

All three projects use provincial Highway No.102 to transport goods (including process chemicals)

to their respective sites over the same stretch of Highway 102. However, Highway 102 is also used

as the route to transport significant volumes of goods to the operating uranium mines of Rabbit Lake,

McClean Lake, Cigar Lake, in addition to numerous exploration camps and the communities of

Brabant Lake, South End, Wollaston, Points North and to access the winter road to communities in

the Athabasca Basin. As such, the cumulative effective of the addition of approximately 12 ore haul

trucks per day between the Golden Heart and the Jolu site, combined with the estimated 2 trucks per

week to provide consumables products to the La Ronge Gold Project is judged to be negligible.

In addition, it must be noted that it is anticipated that the Golden Heart development will be

conducted in order maintain an uninterrupted supply of ore to the Jolu mill and therefore the haulage

or ore along Highway No. 102 is only expected to start after haulage from other sites have decreased

or stopped and therefore, the overall vehicular traffic in between the Northern Settlement of Brabant

Lake and Jolu is expected to remain the same.

14.5 Other Industrial Activities

Mineral exploration within the La Ronge gold belt continues by Golden Band and by other

companies active in the region. The most significant impact associated with this activity is an

increase in the number of access trails within the area. In order to minimize the cumulative impact

of its own activities, Golden Band uses existing access trails wherever possible and will implement,

to the extent possible, the recommendations contained in the Caribou Management Plan discussed in

Section 12.9.3.

No other „industrial‟ activities are noted or expected within a 50 kilometre radius of the proposed

Golden Heart Gold Mine Project site.

14.6 Land Disturbances

The La Ronge Gold Project will maximize the re-use of areas previously disturbed by exploration

and the access trail to the extent possible. In addition, Golden Band will decommission and reclaim

the site and access roads at the cessation of activities; therefore the surface disturbance is considered

minimal in terms of the entire mineral claims held by Golden Band. In addition, the disturbances

caused by the development of the Golden Heart area is temporary (4 years of operations and 2 years

for decommissioning. reclamation and monitoring).



14.7 Historical Environmental Impacts

The environmental baseline investigations reported upon in the Jolu Central Mill Gold Project

Environmental Impact Statement (Golden Band 2009) did identify some „residual‟ environmental

impacts from previous mining and milling activities at the Jolu site. The most significant of these

was the presence of mercury contaminated tailings in Cell C of the Mallard TMF and mercury tissue

concentrations in tissues from fish captured in Yew Lake and Long Lake above those observed in

other lakes in the area. The mercury concentrations in Yew Lake were high enough that a fish

consumption advisory was issued for the lake by the Province of Saskatchewan which prohibits

fishing. Yew and Long Lake are directly connected and therefore the advisory also includes Long

Lake.

In the early 1970s, a small gold mining and milling operation on the shore of Mallard Lake by

Decade Development Ltd. with the installation of a 45-tonne per day concentrator to handle ore from

an open pit and from a single underground stope. A total of approximately 4,500 tonnes of ore was

milled during the two year life of the operation.

The processing of ores at the time included the use of mercury in the process which was co-deposited

with the tailings which were simply deposited in Mallard Lake as it was located adjacent and in close

proximity to the concentrator. It is believed that this activity and the residual tailings from this

operation which still reside in Cell C of Mallard have contributed to the elevated concentration of

mercury in the fish residing in Yew Lake and Long Lake.

Yew Lake is a small waterbody located downstream of Cell C of the Mallard TMF. Mean mercury

concentrations in fish captured from Yew Lake measured 1.4 ± 0.1 µg/g, which were the highest

mercury levels measured in northern pike flesh samples from the entire study area (WSA). Based on

the concentrations measured during this program and a review of the Ministry of Environment

Mercury Consumption Guidelines, consumption of fish from Yew Lake should be limited (SE 2004).

Additional fish chemistry data has also been made available by the Lac La Ronge Indian Band for

inclusion in this EIS. Five northern pike were obtained from Yew Lake in May 2008 following

concerns raised by the Lac La Ronge Indian Band regarding the level of mercury contamination in

Yew Lake.

The mercury levels of the northern pike flesh samples ranged from 1.0 to 2.6 μg/g, and four of the

five samples exceeded the mercury rating of 3 (indicating that no one should consume those fish).

Mercury levels were also measured in the liver and kidney tissue from the five northern pike. The

mercury concentrations in these organs were found to be extremely high, ranging from 5.8 to

21.0 μg/g in liver tissue and 10.0 to 22.0 μg/g in kidney tissue, which is well above the 1.5 μg/g

guidelines that indicate human consumption is not recommended.

The recent baseline investigation shows that the sediments in the Mallard TMF had measured

concentration of ions and numerous metals which exceeded guideline values. Within Cell C of the



TMF the average mercury concentration in the tailings/sediment samples was almost 15 times higher

than the Probable Effects Level.

Golden Band will either relocate and cover or in place the mercury containing tailings within Cell C

of the Mallard TMF thereby encapsulating the mercury within the tailings mass in that facility. In

this way the residual mercury within the historic tailings will no longer be available for flux into the

overlaying water column or for uptake by benthic community organisms.

In this regard, the proposed removal of the mercury contaminated tailings will have a net positive

cumulative environmental impact thereby off setting a portion of the negative impacts associated

with the project.



15 Follow-Up Programs

15.1 Environmental Monitoring

15.1.1 Operational Monitoring

If a Ministerial Approval under the Saskatchewan Environment Assessment Act is received for the

Golden Heart Gold Mine Project, Golden Band will prepare and submit to the Ministry of

Environment an application to construct various facilities at the site. The final design of the water

management system will be completed in consultation with the Saskatchewan Ministry of

Environment who will review and approve the final design prior to issuing the requisite Approval to

Construct Pollutant Control Facilities.

That submission will propose the location and extent of proposed environmental monitoring at the

Golden Heart site and will include, but not necessarily limited to:





agencies.

Generally, it is anticipated that the major components of the monitoring program will consist of the

following:


Freshwater withdrawal (Waddy Lake)

Volume - Quantity in cubic metres

Reference Station (Waddy Lake –site to be determined)

Water quality

Quarterly - pH, Conductivity, Temperature, TSS, TDS, Al, As, Ba, Cd, Co, Cr, Cu, Fe,

Hg, Mn, Mo, Ni, Pb, Sb, Se, V, Ca, Mg, K, Na, HCO3, SO4, Cl, TKN, NH3, PO4, TOC,

Turbidity

Minewater Settling Pond Discharge

Discharge volume - Quantity in cubic metres

Discharge water quality

Monthly - pH, Conductivity, Temperature, TSS, NH3, Al, As, Cu, Pb, Ni, Zn

Quarterly - pH, Conductivity, Temperature, TSS, TDS, Al, As, Ba, Cd, Co, Cr, Cu, Fe,

Hg, Mn, Mo, Ni, Pb, Sb, Se, V, Ca, Mg, K, Na, HCO3, SO4, Cl, TKN, NH3, TOC,

Turbidity



Potential Impact Station (Weedy Bay of Waddy Lake near Muskeg discharge to lake)

Water quality

Quarterly - pH, Conductivity, Temperature, TSS, TDS, Al, As, Ba, Cd, Co, Cr, Cu, Fe, Hg,

Mn, Mo, Ni, Pb, Sb, Se, V, Ca, Mg, K, Na, HCO3, SO4, Cl, TKN, NH3, TOC, Turbidity

Jolu Site & Star Lake Camp

The Approval to Operate Pollutant Control Facilities PO01-171 issued by the Ministry of

Environment requires that Golden Band conduct monitoring a specific locations and frequencies and

report the results to the Ministry of Environment on a frequency defined within the approval. Golden

Band intends to comply with these requirements.

In addition, as noted in Section 5, elevated mercury levels have been recorded in fish from Yew

Lake. The elevated levels are the result of historic operations in the Mallard basin, prior to the

construction of the JAG/Mallard TMF. Golden Band will work with the Ministry of Environment

local Health Region and Lac La Ronge Indian Band to monitor and report the extent of

contamination, even though the contamination is not the result of activities conducted by Golden

Band.

15.1.2 Metal Mining Effluent Regulations


Section 2 of the Metal Mining Effluent Regulations (MMER) issued pursuant to subsections 34(2),

36(5) and 38(9) of the Fisheries Act states:

2. (1) These Regulations apply in respect of mines and recognized closed mines that

(a) at any time after these Regulations are registered, exceed an effluent flow rate of 50 m3

per day, based on effluent deposited from all the final discharge points of the mine; and

(b) deposit a deleterious substance in any water or place referred to in subsection 36(3) of

the Act.

Based on baseline investigations and an assessment of the volume and quality of water discharged

from the Golden Heart project, the total flow of “effluent” discharged from the site will not exceed

50 m3 and will be of a quality well below those specified in Schedule 4 of the MMER.

Golden Band will monitor the Golden Heart site discharges to confirm the facility‟s status relative to

the Metal Mining Effluent Regulations. In the event that site effluent volumes “trigger" the MMER,

Golden Band will design a monitoring program that meets or exceeds MMER requirements.

Jolu Site

Environmental Effects Monitoring (EEM) programs are a requirement for mine operations in Canada

under the amended Metal Mining Effluent Regulations of the Fisheries Act. The aquatic baseline



data collected and presented in the Jolu Central Mill Gold Project Environmental Impact Statement

(Golden Band 2009) document was all collected using EEM protocols and the information presented

addresses a number of “site characterization” requirements in anticipation of a requirement for an

EEM study design.

When required, Golden Band will design and submit for review and approval an Environmental

Effects Monitoring Program for the Jolu site that meets or exceeds current requirements once

effluent discharge occurs. Once approval of the proposed program is received, Golden Band will

implement the program.

15.1.3 Post–Decommissioning Monitoring

Once all required decommissioning and reclamation activities are completed to the satisfaction of the

appropriate regulatory agencies, “transition phase monitoring” will be initiated at all sites for an

appropriate period of time to demonstrate that all areas are performing as predicted and to

demonstrate that the site is physically and chemically stable.

During the transition phase monitoring period, Golden Band will:

Continue monitoring and maintaining the site, as per the requirements in the decommissioning

and reclamation plan, at their own expense; and

Maintain financial assurances sufficient to cover the cost of the remaining obligations outlined in

the decommissioning and reclamation plan and any monitoring and maintenance requirements

for the balance of the transitional period as well as a contingency, to be negotiated, for any

unexpected occurrences.

15.2 Wildlife & Woodland Caribou Management/Protection Plan

Golden Band will have a strictly enforced policy that prohibits hunting by any employees while on

site or while travel to and from the work place along the access road.

15.2.1 Caribou Management/Protection Plan

As discussed previously in section 12.9.3, Golden Band Inc. has implemented a Caribou

Management/Protection Plan covering all of its La Ronge Gold Project sites. The plan, which was

submitted to the Saskatchewan Ministry of Environment, reviewed and approved by that agency, has

been implemented at all of the La Ronge Gold Project sites and will be extended to cover the Golden

Heart site once it is approved.

15.2.2 Wildlife Sightings

As part of the Caribou Management/Protection Plan, Golden Band encourages all employees to

participate in a wildlife sighting system that helps to gather information of the presence of wildlife at

each site and along access roads. Although primarily aimed at caribou, this system will also be

employed to track other listed species such as wolverine. Such a system will provide a means for



monitoring the presence/absence of species such as caribou over the long term. It is the intent of

Golden Band to supply the data from the program on a regular basis to SKCDC. An example of the

wildlife sighting card currently in use is provided below.

15.3 Trapper Compensation

Golden Band has established a draft trapper compensation policy for any trappers impacted by its

development activities, including the proposed Golden Heart Mine. The draft policy will be

finalized after consultation with appropriate groups representatives such as the Lac La Ronge Indian

Band and the Saskatchewan Trappers Association, however the policy and Golden Band‟s

relationship with trappers is based on the following principles:

Respect for Aboriginal traditional land uses;

Commitment to meaningful engagement;



Avoidance of impacts, where possible;

Encouraging and facilitating the continuation of traditional trapping practices; and,

Fair and equitable treatment of trappers affected by Golden Band‟s activities.

Golden Band also recognizes there are several potential categories of compensable losses to trappers,

including the following:

Loss of income;

Cost of temporary and permanent relocation; and,

Loss or damage to property or equipment used in trapping.

One of the most important ways to mitigate the risk of impacts to trappers is for Golden Band and

trappers to exchange information about their respective activities so that impacts can be avoided , if

possible. Trappers who have experienced or are likely to experience impacts due to Golden Band

activities are encouraged to contact Rodney Orr, Vice President of Corporate Development. During

the public consultation and information meetings, trappers in the current development areas were

asked to identify themselves and give their names and contact information to Golden Band

representatives in order to start this process. The compensation process includes the following

principles:

Discussion of appropriate compensation will be based on discussions with the affected

trapper and include consideration of the following principles:

Compensation is commensurate with the nature of the impact and scale of the operations

(i.e., geographic extent, duration etc.);

Compensation will have reference to current market values (for example, reference may be

made to the Saskatchewan Ministry of the Environment Annual Reports on Wild Fur

Harvest and Cash Values); and,

Any potential offsetting factors that should be taken into consideration (e.g., improved

access).

15.4 Historical Impacts of Mercury

As the historical mercury contamination of Yew Lake is of concern to the leadership and members of

the Lac La Ronge Indian Band, in the Jolu Central Mill Gold Project Environmental Impact

Statement (Golden Band 2009) Golden Band Resources committed to work cooperatively with the

Lac La Ronge Indian Band and Saskatchewan Ministry of Environment on the development of a plan

to further assess the impacts resulting from the previous deposition of mercury rich tailings in

Mallard and the development of an effective management plan to address the observed levels of

mercury contamination in the aquatic ecosystem of Yew and Long Lakes.

15.5 Socio-Economic Follow-up Program

As part of its obligations under the La Ronge Gold Project Surface Lease Agreement 2009, Golden

Band will prepare and file with the Northern Office of the Ministry of Advanced Education,




Employment and Labour (or equivalent), on an annual basis, employment statistics for the La Ronge

Gold Project and on behalf of its on-site contractors, which reflect the degree of achievement of the

objective expressed in Part III (Direct Employment and Economic Benefits for Residents of

Saskatchewan‟s North) of the Agreement. These statistics will be prepared and submitted in

accordance with the terms of the Human Resource Development Agreement for the project.

The Surface Lease Agreement also requires that the lease holder report annually to the Government

of Saskatchewan regarding all traditional user compensation agreements negotiated related to its

projects. Golden Band Resources intends to fully adhere to this requirement. In addition, on or

before March 31st of each calendar year, Golden Band will prepare and submit a Business

Participation Report that characterizes the nature and value of goods and services purchased during

the course of the year from northern business and the activities undertaken in the previous year to

achieve the intent of Part III of the Surface Lease Agreement for the La Ronge Gold Project.



16 EIA Public Consultations

16.1 Introduction

The prospect of a project such as the Golden Heart Project can promise direct and indirect economic

benefits to a community in the form of employment and business development. However, the same

project may also raise concerns and uncertainty in a segment of the community, particularly with

regard to the potential for negative impacts to the biophysical environment or to traditionally

important activities such as hunting, trapping and fishing.

Golden Band recognizes the importance of full and open discussion of the issues and options

associated with the development of the project and the related concerns that individuals or

communities may have in relation to the activities. In light of this, Golden Band has maintained open

and honest communications with local communities and individual stakeholders throughout all

stages of the project. As the proponent desires to ensure that their operational practices, both now

and into the future, reflect the values, expectations and needs of the community in which it is

operating, continued mutually respectful consultation with all stakeholders is important to Golden

Band.

Golden Band Resources has used the term “stakeholder” to refer to any person, affected

communities, local government authorities, regulatory agencies, non-governmental and other civil

society organizations, local institutions and other interested or affected parties, groups, organization,

or system that affects or can be affected by our actions. The consultations to date have been

undertaken to ensure open and informed discussion of the various options that must be considered in

developing a project such as the Golden Heart Gold Mine Project. In the end, all parties must be

satisfied, to the extent possible that the site and associated activities pose no danger to worker health

and safety, public health and safety, and are not a source of unnecessary negative impact on the

environment during operations and that after decommissioning and reclamation are complete the

sites will, to the extent possible, allow for a productive use of the land similar to its original use prior

to mining or to an acceptable alternative.

16.2 Guiding Principles

The following principles have and will continue to be used by Golden Band and its representatives in

conducting consultations with stakeholders:

Communicate clearly and at the right time;

Provide full information promptly to encourage fair and informed discussion;

Support consultation to the maximum by responding to information requests fully and quickly;

Establish clear and realistic timetables for accepting requests, suggestions and submissions, and

be sensitive to the limited resources available to people and groups;



Provide information, particularly technical information, in plain language;

Give practical help to people and groups to take part, with attention to equal opportunity;

Include people from non-English speaking backgrounds;

Provide frequent feedback, including the results of meetings, incoming suggestions and requests,

key recommendations, and information about emerging technologies;

Ensure that people who join the consultation process at different stages will, as much as possible,

be able to influence the direction of the developing project;

Stimulate conciliatory and constructive exchanges of views and genuinely try to address, without

prejudice, the major issues;

Frequently monitor and evaluate the effectiveness of the consultation program during and at the

end of each phase of the project; and

Share with the community the responsibility for effective consultations.

16.3 Identification of Stakeholders

The following communities/groups/agencies have been identified as key stakeholders:

La Ronge;

Air Ronge;

Sucker River;

Grandmother‟s Bay;

Stanley Mission;

Northern Settlement of Missinipe;

Northern Settlement of Brabant Lake;

Southend; and,

The Lac La Ronge Indian Band.

In addition, the following regulatory agencies are considered stakeholders as they will play a direct

role in the oversight of various aspects of the proposed project.

Saskatchewan Ministry of Environment, including but not necessarily limited to;

Environmental Assessment Branch

Uranium and Northern Operations

Land Management North;

Saskatchewan Ministry of First Nations & Métis Relations;

Fisheries And Oceans Canada; and

Environment Canada.



Numerous meetings have been conducted with various stakeholders in the region by Golden Band

over the past five years in relation to the La Ronge Gold Project. Regular site inspections have been

conducted of the various properties by representatives of the Ministry of Environment as well as

periodic inspections/tours by Fisheries and Oceans Canada and Environment Canada. Discussions

have taken place with suppliers in the region.

Representatives of Golden Band provide regular updates on project status to the Chief and Council

of the Lac La Ronge Indian Band and to the Board of Directors of Kitsaki Development Corp.

(owned and operated by the Lac La Ronge Indian Band).

Golden Band also attends meetings of the Mineral Sector Steering Committee of the Northern

Labour Market Committee and is a leading member of the Saskatchewan Mineral Exploration and

Government Advisory Committee (SMEGAC).

16.4 EIA Public Consultations

Public consultation is an integral component of environmental impact assessment and the

environmental impact assessment process in Saskatchewan requires that potential stakeholders to be

fully informed about the project. During this process, the identification and assessment of potential

options for the project, and the selection of preferred options for specific activities, is discussed with

regional residents, organizations, First Nations and other stakeholders.

Golden Band conducted extensive public consultations in the communities of La Ronge, Brabant

Lake, Missinipe, Grandmother‟s Bay, Sucker River, Stanley Mission and Southend between January

18 and February 07, 2011. The meetings were well advertised by the placement of posters

(Appendix VII) in multiple locations in each community and by the purchase of advertising to

announce the meetings on Missinipi Broadcasting in the days leading up to the consultation

meetings. Food and non-alcoholic beverages were provided by Golden Band to encourage

community member attendance.

During the conduct of the public information meetings, several contacts were attempted with the

Regional Director, Northern Region 1 (regionally elected leadership) of the Métis‟ Nation of

Saskatchewan with no success. Although, this attempt at direct contact was not successful, public

consultation sessions were held in La Ronge, Missinipe, Brabant Lake and Southend as well as in the

Lac La Ronge Indian Band communities of Grandmother‟s Bay, Sucker River and Stanley Mission

during the environmental impact assessment. The meetings were all well-advertised with posters in

each community as well as announcement on Missinipi Broadcasting and presented opportunities for

the public, including Métis‟ members of the community, to question the proponents and the project

and to voice any concerns that they may have with regard to the development of the proposed mine

and associated activities in the region.

In each community (La Ronge, Brabant Lake, Missinipe, Grandmother‟s Bay, Sucker River,

Southend and Stanley Mission) representatives of Golden Band provided a PowerPoint presentation



on the proposed Golden Heart Gold Mine Project, ore haul and the Jolu Mill and responded to any

and all questions posed. Paper copies of the presentation were made available to each meeting

attendee at the beginning of the meeting. Copies of the January 2011 PowerPoint presentation is

provided in Appendix VII.

The length of each meeting ranged depending on the number of attendees and the level of detail in

the questions and responses. The meetings ranged from approximately 2 hours in duration to one

which lasted in excess of 3 hours. In each case, the representatives of Golden Band did not leave

until every question posed by attendees had been answered to the satisfaction of the person posing

the question.

Golden Band retained the services of an independent recorder (Aurora Communications Inc.) to

attend and record all of the discussions during each of the meetings. Appendix VII provides a record

of the proceedings of each meeting as prepared by Aurora Communications.

Transcripts of each of the public consultation meetings can be viewed at:

http://www.goldenbandresources.com/Enviro.html

16.5 Response to Issues in Consultations

Each concern raised during the public consultation in each community is recorded in Appendix VII,

as are the responses provided at the time of the meeting by representatives of Golden Band. Table

23 provides a summary of comments/question posed in each community and of the responses

provided by representatives of Golden Band during the meetings. In addition, this Environmental

Impact Statement provides a detailed discussion of all relevant issues and concerns raised during

those each of the consultation sessions.

https://mail.ca.srk.com/owa/redir.aspx?C=67bb2630e2fc42afbc8c457eb189c7cb&URL=http%3a%2f%2fwww.goldenbandresources.com%2fEnviro.html



Table 23: Summary of Community Comments & Responses

Community Concern/Question Golden Band Resources Response

What about other minerals in the ore? Silver? Platinum? I’m not sure about platinum; we have silver, 5-10% in the first bar. That is a credit with the customer; we get money for it. Not sure about other metals – there are penalties for some.

Missinipe Will you continue exploration once underground? We are drilling right now and will use the resource model for the final mine plan. We currently have a conceptual plan. The objective is to maximize underground mining if the potential is there.

Who was Roy Lloyd? A former director of Golden Band, who passed away in 2005.

Is there any thought of transporting the ore across Waddy Lake on an ice road to the highway that comes down from the old Komis mine?

Not right now. We haven’t included that in any of the documentation. The exploration trail is challenging right now, with some low-lying areas.

Brabant How long for the reclamation to be completed on Golden Heart?

Right now we’re thinking roughly 1-2 years. After we decommission it, we have to continue to monitor it, which could be for 2-5 years or even longer. We have to be able to demonstrate to the province after we decommission – if we said the rock pile is stable, we must demonstrate that; if we said the water quality is good, we’ll take samples to confirm that – just making sure that everything is as expected. After that, we would apply to the province to go through their new Institutional Control process. That’s a process where they say we’ll take back the property but we need to feel comfortable with the risks. We would have to post financial assurances, or funds, to the province so they can continue the long-term monitoring of the site. The process is relatively new.

Who’s looking after trapper compensation? Rodney Orr; I have his business card, but I would like to get all the names and numbers. We want to make sure we document exactly who’s out there, who we should be talking to. Rod will come up with an agreement with the Lac La Ronge Indian Band that discusses the trapper compensation process, but we’ll probably do it on a 1:1 basis.

Is the construction phase of Komis/EP done already? We are in the beginning stages. We have started stripping the pit for EP; we have a temporary camp on site. I think our plan is to will develop the pit over the next few months. Komis and EP still have a bit more work to do. Jolu is pretty much there except for some work in the mill, and we’re still in the process of commissioning our permanent camp. At Roy Lloyd we’re pretty much where we want to be.

Southend How many LLRIB members are trapping on Highway 102? There are three trappers from Brabant that we talked to that trap in the Brabant area.

There will be more traffic on Highway 102. In terms of partnership, we weren’t part of the planning. If we have no jobs or contracts, why should we support it?

Liaison workers are important to have in the community. That's a request for you to take home, to take resumes etc. If you don't find anyone qualified, help us to train – we have good facilities we can use to train our people for mill operators etc.

These are valid concerns – Lac La Ronge started as one meeting per year and went on from there, so why not here too? The objective is to maximize northern employment.

Rodney will be coming back here to talk to you (in reference to Councillor Morin).

Golden Heart will be a continuation, so will create no additional traffic by itself – Bingo and EP maybe a little.

Does Southend have a percentage for jobs? If we have to compete with other northerners do we have a chance?

There’s no specific target right now. We have no internal targets.

I think you do have a reasonable chance. If people here are willing to take training, it would be good to have that.

What are the chances of supplying you with food or gas? We buy from the same places as you – could our local boys get some of the business?

Our agreement with Kitsaki Procon is not the only game in town. We will contract for fuel, but it has to be cost-competitive. We’re open to bids from anyone.

I’d like to see some kind of percentage – even 10%. You should consider our community because we can make something of it.

That’s a very valid point. Southend does deserve some of the jobs.

With LLRIB there is a serious concern to make sure we do protect the environment. As a company we want to do that.

No revenue sharing, no mine. Golden Band cannot make that commitment.

Asked whether the chemicals that go up are studied. Do you consider health – we’re not far from gold mines. You don’t consider us a direct impact community.

We looked at air emissions from mines and mills to see if there’s any impact or not. On the roads and sites, we keep dust down. Most emissions are from heating buildings etc. – there are not a lot of emissions during mining.

I hear gold mines are worse than uranium mines – if that’s true you’re killing animals etc. and LLRIB won't mind.

T. Moulding (Ministry of Environment): Actual environmental impacts from these types of operations are at the low end of the spectrum regarding environmental effect, but they are using up land space which is not available for other uses for a time. We make sure they are applying all laws and regulations. Our job is to make sure Golden Band obeys the law and to make sure what they said they’d do is what’s happening.

The minister has to accept their EIS (Environmental Impact Statement), and will consider feedback from communities from meetings like this and later meetings after the EIS is available. Part of the process is feedback from communities. We tell the company what we’re looking for in the EIS. Once they do that – they have to talk to communities in area – Southend is one of them.

Brabant Lake and Grandmother’s Bay are all La Ronge people, of course they will agree. If everything goes well, the permits are issued and we don't agree. .

T. Moulding (Ministry of Environment: We have to make sure they’re talking to everyone. An important aspect is the use of the public road. We are looking at other proposals from other companies that use this road as well. We take that information into consideration before we render any decision. This is the front end of the process; there will be another chance once we receive the EIS. In terms of technical review capacity, there’s a chance to seek capacity funding through FNMR (First Nations and Métis Relations) to review the projects. Check with the Department.

Grandmother’s Bay

Re trapper’s compensation – who will benefit the trapper or the community? Does it just affect people around the mine, not whole province?

Trappers will talk about their own issues individually to the company.

By my wife’s trap line by Dickens Lake, there was a lot of drilling going on there and we didn’t know anything

The exploration program you were referring to was conducted by another company.

Do you need a trapper’s license for compensation? I do have a trapper’s license from Wierzycki Lake area – part of N9, but I moved to trap with my wife (in the Dickens Lake area). About 8-10 miles southwest of Brabant. EP and Komis are part of N9.

We are just this week to work with the trappers. The first thing to do is identify who they are. I know where N9 is but not the zones. I have a list from the province that gives me names and a number: I have an idea how that ties in with our current and proposed projects. Today I would like to start that list of who the trappers are, and leave information so we get information about people who are not here as soon as possible. It’s going to be a more or less full time job for us to start working individually with the trappers, or the trappers families, to identify what the impact is and if there’s any compensation that makes sense.




Are there any contaminants coming off the uncovered rock hauled by trucks? Any gold on the highway? People are concerned because they drive on that road.

It’s natural rock with no real toxins. Toxins are introduced in the mill, and there’s a lot of environmental monitoring.

The environmental risks are low for the transportation of ore. Obviously we don't want to see any ore coming off the truck because that’s a potential safety issue as well for people travelling on the road. We definitely want to know if that does arise.

Grandmother’s Bay

Greywacke is my wife’s trapping area. There was line cutting there this fall. We’re a 49% owner; we have a partner there. There’s been no work on that project in three years. It was discovered in 1980s and other companies have owned it and worked the area. If we were operating that project, we would be talking to you. Right now it’s another company that’s involved there.

Is the Golden Heart mine only for Brabant people to work at? 25 qualified people. Whoever’s best qualified to work and trained has the right education.

Is there any possible training for mill workers in future? We want to get better training in the community rather than going south

There are a few training programs being proposed right now:

1) A mill operator training involving 10-11 positions. They will advertise it, go through a recruitment process, and pick the best candidates using whatever criteria are developed. If you know people who might fit into those types of positions, we’ll give the information directly to you guys. It’s in the Northerner this week.

2) The ore haul truck driver training for 3-5 trainees. It will be a 500-hp truck like NRT’s pulling a 30-foot trailer full of ore.

3) Golden Band has a proposal submission in for six lab techs: two immediately, two in six weeks, two in another six weeks.

4) Longer-term apprenticeship training – we have to assess what type of apprenticeship training would suit this environment; there could be 4-5, millwright, electrician, plumber/pipefitter, whatever.

5) We’re also looking at what we have submitted with Athabasca Catering for some training opportunities there for housekeeping and for and Red Seal Chef. That’s in process and we hope will get off the ground pretty quick.

When you showed the tailings pond you pointed to Yew Lake. Is that the tailings pond now?

Mallard was converted to a tailings pond in 1988 after an environmental assessment. It was used for Jolu, when tailings were placed in Cell B of the pond in 1988-91. It was used again for Komis by Waddy Lake resources from 1996-97. Prior to the Jolu mine and mill there was the Decade mine. They mined from 1973-75 and milled as well. It’s our understanding that they used mercury in the milling process. There is elevated mercury in tailings in Cell C and in sediments in Yew Lake. There’s also elevated levels of mercury in Yew Lake and Long Lake fish, so there’s a fish advisory in place for Yew and Long Lakes. There is historic contamination but there are no tailings in there. We will use Mallard for tailings.

How long can the Mallard tailings facility be used? What is the capacity?

Currently about seven years. The current JAG TMF is about three years, Mallard four years.

The way it was originally designed. There are opportunities to expand it because there’s very steep slopes in one side. If that were to happen in seven years or so, we’d have to do another environmental assessment. You would have to prove how well it’s worked in the initial seven years. Right now we’re predicting roughly seven years based on historical operations; it depends on how the tailings, when we deposit them, will consolidate. In this EIS we have to prove to government there is enough room for what’s already approved. The better they operate the longer it will be.

Stanley Mission

How much ore?

It will be mined at 350 tonnes per day over 203 years. It’s a relatively small mine. Right now, Bingo has only been defined to 400-450m vertically below surface, but we have been drilling deeper. The deposit itself is quite steep and narrow, about two metres wide, plunging down into the earth along a structure. We have drilled as far as 525m below surface and we know the structure and the mineralization are still there, but the drilling is so far apart that we don't k now if the mineralization is continuous. We will have to drill from underground.

The access to the Bingo deposit is a ramp that spirals down. We’re developing the upper part now for mining purposes, but we will set up a drill in the deep mine to test the down-plunge part of the structure. Geologically, I believe there will be more ore.

How does it compare to the Seabee mine?

They thought they had eight years. Its 20 years now. That’s a good example on tailings; when that one got full they had to do an EIA for a new tailings area

It started in 1991. They’re 1800 metres deep now.

What if you get more tailings than the TMF capacity)

We would either have to increase the footprint of the area or make the walls higher to make it deeper as opposed to wider. We don't know how much yet. The next mine is the EP deposit which should come into production sometime this year;

Komis probably sometime next year, ideally Golden Heart the following year – 2013 or 2014.

Bingo produces 350 tonnes per day (tpd), EP will be 50 tpd. That’s 400 tonnes per day in total which is the perfect capacity for start-up. We already know the equipment in that mill can operate up to 700 tonnes per day without a whole lot more work. Once we get Golden Heart going, and that supplies about 350 tonnes per day, we’re looking at about 1000 tpd. The mill can be expanded up to about that amount.

Just to clarify, for Golden Heart we’re looking at about 700 tonnes per day, so we’re keeping within our overall La Ronge project plan for milling capacity. We’re not planning to increase production to 1000 as a result of Golden Heart.

How many people are and will be employed at the mill? Kitsaki Procon have 24 employees there now, Golden Band 15. It won't change dramatically, so about 50 at the mill. Eventual numbers on the mining side would be about 50 as well, so about 100 employees total plus the indirect jobs which could be double or three times that number.

If I am looking for a cooking job, where do I apply? Call Kitsaki, put your resume in and we will forward it to Athabasca Catering.

What about tax exemptions with Athabasca Catering? We’ve been working on this for quite a few years, and it such an unclear area with Revenue Canada, but we’ve been asking for them to give us some sort of ruling on whether we can hire a First Nations person and give them tax-free income.




What are the boundaries of hunting and trapping around there?

Only the actual mine site. There must be a practice about not firing a rifle within so many metres. Putting a snare within sight of it is not going to be a problem. It’s not unsafe.

Right now there are no barriers up to keep wildlife off the tailings. One of the primary things will be waterfowl; we will try to make sure they don't go onto the tailings area. Rights now at Mallard, there are no concern about animal access. It’s more the JAG TMF that we’re worried about because we’re placing tailings in there. One of the big things is the noise from the site for the larger animals. For waterfowl, we’re looking at propane cannons to scare them away.

Stanley Mission

What if moose drink the contaminated water? For Mallard, the water quality is fairly good. We do have an issue, due to historic milling operations prior to the Jolu project, with mercury in sediment, and also with tailings in Cell C. There’s also mercury in fish downstream, in Yew Lake and Long Lake; the province has issued an advisory so you can't consume fish. But as far as animals now drinking water from Mallard, there’s no mercury in the water.

Can we use your access roads? What if I have a trap line there?

There’ll be some restrictions on site because of safety.

If you have an existing trap line there – we will have a gate for the road for safety reasons, because we’re going to be hauling reagents, supplies, tools and ore. We’re not going to restrict access to trappers; we’ll just have to figure out how to do it safely. Maybe it’s a system where you let the site know ahead and we make sure the gate’s open for you, or someone meets you at the gate and brings you along, or make sure it’s radio controlled so people announce every kilometre where they are so we don't have two trucks meeting on a blind corner. The road to Jolu is pretty windy and up and down. We will find a way to accommodate you.

Why can't you have a camp on site at Bingo? Partly because we’ve got a two or three-year mine life and it financially didn’t make sense to build a camp in that location. If we knew now that is was five years or more, then it would make sense. There are several other options: using facilities at Missinipe/Otter Lake; there are other possibilities, for instance at Grandmother’s Bay. It’s really just to get us up and running; that was most expedient for now. Longer-term we’ll be looking at that. At some point it would make sense, but we’re not there yet.

You mentioned that you had poured a gold bar? We poured our first gold bar on January 13, a week ago. It was the first one from the Roy Lloyd mine. It was about 500 troy ounces, 15.6 kg. or about 32 pounds in one little block. It’s a nice start. It was about 85% gold and 15% silver; It’s worth $5-600,000. We’ve spent $60 million so we need a few more, but we’re working hard.

Sucker River No Questions



16.6 Continued Consultations

Golden Band is committed to continue an appropriate level of engaging the general public of the La

Ronge region, including representatives of Northern Region 1 of the Métis Nation of Saskatchewan,

the Lac La Ronge Indian Band and Peter Ballantyne Cree Nation of activities related to the La Ronge

Gold Project and any other activities undertaken (i.e. further exploration in the region) by scheduled

public meetings in relevant communities. This consultation has and will continue to be undertaken

in a manner that ensures that the community members in the area are fully informed about activities

of the company in a manner that maximizes the opportunity for feedback on those activities.

17 Commitment Register & Conclusions

17.1 Commitment Register

Table 24 provides a summary of both the implicit and specified commitments made by Golden Band

in completing the environmental impact assessment and preparing this EIS for the Golden Heart

mine project and related to the remainder of its La Ronge Golden Project.



Table 24: Golden Heart Project Commitment Register

Reference No.

Project Phase Commit. Type

Description Source Reference Responsibility Action Required Action Date Actual Closeout Const. Ops. Dec/Rec

001 X X X Heritage Maintain integrity of identified heritage sites

La Ronge Indian Band

GBR & Contractors

As per ongoing consultations (Install barriers)

Construction Post

decommissioning

002 X X X Environment Caribou Management & Protection Plan EIS GBR &

Contractors Adhere to plan components

Project initiation

Post decommissioning

003 X X X Environment Wildlife population records EIS GBR &

Contractors Complete spotting records & report results to MOE

Project initiation


004 X X Environment Monitor the site discharges to confirm the facility’s status relative to the Metal Mining Effluent Regulations.

EIS GBR Monitor the site discharges to environment

Construction Post

decommissioning

005 X X Environment Minimize impacts to rare plant occurrences

EIS GBR Avoidance or mitigation (transplant)

Construction Decommissioning

006 X X X Operations Minimize dust emissions EIS GBR &

Contractors Monitor & implement suppression strategies when warranted

Project initiation


007 X Operations Minimize blasting impacts to fish EIS Mining

contractor Limit number of holes per -time delay

Operations End of operations

008 X X X Socio-Eco. Trappers compensation Community consultations

GBR Negotiate and pay compensation Construction Post final-closure

010 X X Socio-Eco. Maximize northern employment and business opportunities

Community consultations

GBR & contractors

Participate in NLMC, MPTP and NCQ activities

NA Post

decommissioning

011 X X X Socio-Eco. Inform communities of on-going activities (exploration & mining)

Community consultations

GBR Regularly scheduled public meetings

NA Post

decommissioning

012 X X X Environment Monitoring & report on specified environmental parameters

Approval to Construct & Approval to Operate

GBR Conduct specified monitoring and submit required reports

Construction Post final closure

013 X X X Socio-Eco. Monitor and report on northern employment and the purchase of northern goods & services

La Ronge Gold Project Surface Lease Agreement, 2009

GBR & contractors

Conduct specified monitoring and submit required reports

Construction Post

decommissioning

014 X Environment Decommissioning and reclamation MIEP Regs. GBR Decommissioning and reclamation Cessation of

mining Final Closure

015 X Environment Transition phase monitoring and inspections

MIEP Regs. GBR Monitoring & inspections as required

Final closure NA

016 X Land

Resource Transfer to institutional control of the province

Reclaimed Industrial Sites Act

GBR Report & application Post final-

closure Post final-closure

017 X Environment

Conduct a spring breeding bird, spring water bird, and fall migration surveys prior to site development activities. Time clearing activities to avoid impacts to rare species and migratory birds.

EIS GBR Survey & report Pre-

construction Pre-construction



17.2 Conclusion


proposed Golden Heart Gold Mine. Once such approval is granted, Golden Band intends to apply to

the Ministry of Environment and other government ministries and agencies for the necessary

approvals, permits and authorities required allowing the construction, operation and eventual

decommissioning of the Golden Heart Gold Mine. Golden Band intends to undertake all activities in

a manner that meets or exceeds all applicable legislation and regulations.

During the four year life-of-mine (operations and decommissioning) approximately 460,000 tonnes

of ore will be mined and transported to the existing Jolu site for milling. At the conclusion of mining,

the entire site and access road will be decommissioned and reclaimed, returning the site to a land use

very similar to that which currently exists at the undeveloped site.

During operations the Golden Heart project is anticipated to have no measureable impact on the

nearest aquatic environments of Weedy Pond or Weedy Bay, Lower Waddy Lake. Although the

development and operation of the mine will have a temporary impact of the local terrestrial

environment, primarily from the temporary removal of vegetation and the creation of a mine rock

pile, reclamation activities at the end of the mine life are expected to return the terrestrial

environment to a condition similar to within a decade (i.e. the time required to re-establish a

reasonably diverse, although young, terrestrial ecosystem).

The ore from the Golden Heart mine is required by Golden Band in order to continue operation of

the Jolu mill, to maintain or expand current employment opportunities and to continue the La Ronge

Gold Project as a viable and contributing gold producer in northern Saskatchewan.

The La Ronge Gold Project is expected to continue to employ approximately 100 full time

employees although the total at any one time will vary depending on activities and the schedule of

mining. Of that total, it is expected that the Golden Heart mine will allow the continued employment

of approximately 25 people at the mining operation with the other 75 people employed at the Jolu

mill site and other satellite mines within the La Ronge Gold Project. It is Golden Band‟s intention to

continue to secure a significant portion of the workforce, goods and services from within the

Northern Administration District of Saskatchewan.



services. The project will also provide revenues to the province of Saskatchewan through the

payment of various taxes and fees.



18 References

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Prepared for Imperial Oil Resources Ventures Limited.

Acton, D.F, G.A. Padbury, and C.T. Stushnoff. 1998. The Ecoregions of Saskatchewan.

Saskatchewan Environment and Resource Management / Canadian Plains Research Center.

Alberta Woodland Caribou Recovery Team (AWCRT). 2005. Alberta woodland caribou recovery

plan 2004/05-2013/14. Alberta Sustainable Resource Development, Fish and Wildlife Division,

Alberta Species at Risk Recovery Plan No. 4. Edmonton, AB. 48pp.

Arsenault, A.A. 2003. Status and conservation management framework for woodland caribou

(Rangifer tarandus caribou) in Saskatchewan. Fish and Wildlife Technical Report 2003-3. 40pp.

Beckingham, J.D., D.G. Nielsen, and V.A. Futoransky. 1996. Field guide to ecosites of the

mid-boreal ecoregions of Saskatchewan. Special Report 6. Natural Resources Canada,

Canadian Forest Service, Northwest Region Forestry Centre. Edmonton,

Alberta. Canadian Council of Ministers of the Environment (CCME). 2007. Canadian

environmental water and sediment quality guidelines for the protection of freshwater aquatic life.

Environment Canada, Hull, Quebec.

Campbell, J.E. 1985. Quaternary Geology of the Waddy Lake area applied to prospecting for gold, in

Summary of Investigations, 1985. Saskatchewan Geological Survey. Saskatchewan Energy of

Mines. Miscellaneous Report 85-4.

Canada North Environmental Services (CanNorth) 2008. Jolu Central Mill Gold Project aquatic and

terrestrial baseline. Main Document. Final Report. Prepared for Golden Band Resources Inc.

Saskatoon, Saskatchewan.

Committee on the Status of Endangered Wildlife in Canada (COSEWIC). 2002. Canadian Species at

Risk. Website: http://www.sararegistry.gc.ca/species/speciesDetails_e.cfm?sid=636.

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Golden Heart Gold Mine Project Environmental Impact Statement

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