1. NRCan Community Roundtable Presentation Meliadine Gold Project Rob Johnstone Deputy Director Sustainable Mining and Materials Policy Division Minerals, Metals and Materials Policy Branch Minerals and Metals Sector Natural Resources Canada August 25-27, 2014

2. Outline  1. Mandate and Role  2. NRCan’s Review  Permafrost and Terrain Stability  Hydrogeology  Potential for Acid Generation and Metal Leaching From Mined Materials  3. Conclusions 2

3. 3 NRCan’s Role in the Meliadine Gold Project  The mandate of Natural Resources Canada (NRCan) is to develop, implement and deliver policies, programs, science and technology for the sustainable development and responsible use of Canada’s mineral, energy and forestry resources. Specific to the Meliadine Gold Project:  NRCan may issue a licence under the Explosives Act.  NRCan is providing advice and expertise in:  Permafrost and terrain stability,  Hydrogeology, and  Potential acid generation/metal leaching from mined materials.

4. NRCan Review – Location of the Explosives Manufacturing and Storage Facilities 4

5. NRCan’s Review – Explosives Manufacture and Storage  NRCan is satisfied with the information provided by AEM.  AEM (or its explosives contractor) will be required to submit applications for the manufacturing and storage facilities including information on: types and maximum quantities of explosives, storage plans, liquid effluent plans, spill contingency plans, security plans, etc.  NRCan has no recommendations for this aspect. 5

6. 6 NRCan’s Review – Permafrost and Terrain Stability  Disturbance of the land can result in changes to ground temperatures and lead to increases in thaw depth, changes to drainage and erosion.  Additionally, the stability and design of mine infrastructure (e.g. tailing and waste rock storage facilities) depends on the properties of the materials on which they are built. Access Road Corridor and Borrow Sites:  NRCan agrees with AEM that appropriate engineering design can minimize impacts on terrain related to the road and borrow sites. Mine waste management facilities:  NRCan agrees with AEM that geotechnical investigations and analysis are sufficient for the environmental assessment. While AEM is not relying on frozen conditions, permafrost should be considered as thawing of facility and dike foundations can result in instabilities.

7. 7 NRCan’s Review – Permafrost and Terrain Stability NRCan Conclusions and Recommendations  NRCan has no outstanding items related to permafrost and terrain stability.  NRCan’s recommendations focus on more detailed site specific geotechnical investigations and analysis to support detailed design.  NRCan’s recommendations are aimed at ensuring AEM has an adequate understanding of the permafrost and terrain and that mine infrastructure is designed appropriately and ensure that effects on the environment are minimized.  AEM has agreed in principle to NRCan’s recommendations.

8. 8 NRCan’s Review – Hydrogeology  Project activities will result in changes the groundwater environment.  AEM has collected limited information in order to determine how groundwater moves below the permafrost. They have used this information to the extent possible to model the groundwater.  AEM expects saline (salty) groundwater to flow into the underground mine and is considering options for its management.  AEM has indicated that it will consider gathering additional data on groundwater as part of monitoring and follow-up.

9. 9 NRCan’s Review – Hydrogeology NRCan Conclusions and Recommendations  NRCan acknowledges the difficulty and high cost of defining how groundwater moves in a remote sub-permafrost zone.  AEM has provided reasonable estimates for the purposes of the environmental assessment.  NRCan has provided AEM with suggestions for improving the information related to how the groundwater moves at the project site. This would include drilling additional wells in order to collect more information post environmental assessment.  NRCan has recommended that AEM consider the uncertainty related to the estimated volume of saline water flowing into the underground mine in the development of their saline water management plan.  AEM has agreed in principle to NRCan’s recommendations.

10. NRCan’s Review – Potential for Acid Generation/Metal Leaching From Mined Materials  Mining involves the excavation of large amounts of rock and ore.  Ore is processed to obtain a commodity (e.g. gold). The rest becomes waste (e.g. waste rock and tailings).  In the presence of oxygen and water, sulphide-bearing rocks can develop acidic drainage, which contains elevated concentrations of metals and other elements that can lead to adverse environmental effects if not properly predicted, controlled and mitigated. 10

11. 11 NRCan’s Review – Potential for Acid Generation/Metal Leaching From Mined Materials  AEM collected samples and conducted tests and analysis to understand the behaviour of rocks at the project site. This included analysing the acid and neutralization potential of the waste rock and tailings.  In the Draft EIS, AEM concluded that most mined material has no potential to generate acid. Waste rock and the bulk of the tailings did not require mitigation to prevent oxidation.  During the technical review, NRCan made several comments intending to ensure that AEM had taken a conservative approach to classifying mined materials (e.g. waste rock and tailings).

12. 12 NRCan’s Review – Potential for Acid Generation/Metal Leaching From Mined Materials  The Final EIS provides a more conservative assessment of acid generation and neutralization potentials of the waste rock and tailings.  The Final EIS indicates that the Discovery deposit waste rock is uncertain or potentially acid generating. Therefore there is the potential for acid rock drainage and the waste rock will require management.  The Final EIS indicates that Discovery ore tailings will likely produce acid. Some tailings from other deposits (F Zone, Pump, Wesmeg) show some uncertain potential for acid generation. If blended, the tailings have sufficient neutralization capacity and are not expected to be acid generating.  The Final EIS includes additional detail on milling operations and the tailings management strategy.

13. 13 NRCan’s Review – Potential for Acid Generation/Metal Leaching From Mined Materials NRCan’s Conclusions and Recommendations:  NRCan is satisfied with AEM’s response as it is understood that the testing results and predictions will be continuously monitored during operations and validated as parts of the operation’s environmental management system and waste rock and tailings management strategies will be developed as necessary.

14. 14 Summary of NRCan’s Conclusions  For the purposes of the environmental assessment NRCan is satisfied with the information provided by AEM in relation to:  Permafrost and Terrain Stability  Hydrogeology  Potential for Acid Generation/Metal Leaching From Mined Materials  NRCan’s recommendations have been accepted in principle by AEM.

15. Questions? 15