NZC-TSX
NORZF-OTCQB
VANCOUVER, Jan. 16, 2019 /CNW/ - NorZinc Ltd.
(TSX: NZC; OTCQB: NORZF) ("NorZinc" or "the Company") is pleased to
announce the signing of a Traditional Land Use Agreement ("TLUA")
with the Nah?a Dehé Dene Band for
the construction and operation of the All Season Road ("ASR") to
connect the Company's high grade zinc/lead/silver Prairie Creek
Mine to the Liard Highway in the Northwest Territories of Canada.
The Nah?a Dehé Dene Band ("NDDB") of Nahanni Butte is the nearest community to the
Prairie Creek Mine ("the Mine"), located approximately 90km
southeast of the mine site. The mine site and route of the ASR are
within NDDB's Traditional Territory. The intent of the TLUA is to
confirm NDDB's support for the ASR and deliver benefits for the
NDDB, supplemental to the existing Impact Benefits Agreement
("IBA") signed with NDDB in 2011 that supported the Mine
development itself.
At the time of the original IBA, access to the proposed Mine was
planned to be by winter road. Subsequently it was concluded that an
all season road would provide significantly improved operational
efficiencies and better economic confidence for the Mine. The
Company recognized that the ASR may have additional potential
impacts and effects on the NDDB, compared to a winter-only road,
and recognition of this is established within the TLUA. The TLUA
combined with the IBA provides assurance the Prairie Creek Mine has
strong local Aboriginal support as the ASR moves through the final
phase of permitting.
"NorZinc is very pleased to sign this important land use
agreement", said NorZinc's CEO, Don MacDonald. "We are very grateful to
the Nah?a Dehé Dene Band for their
collaborative support which has made possible this very positive
step toward the development of the Prairie Creek Mine. It is so
important that the All Season Road has the support of the local
Aboriginal communities, and that those who live closest to the
access road particularly will benefit from its operation."
Signing Ceremony
The community signing ceremony for the Agreement took place in
Nahanni Butte on January 15, 2019. The ceremony had the
participation of NDDB Chief and Council, NDDB's band members, and
directors and officers of NorZinc. A formal ceremony is planned in
Vancouver during the AME Roundup
2019 conference at the end of January.
"In signing this Agreement we have further enhanced a
mutually beneficial relationship with Nah?a Dehe Dene Band, based on respect, and which will
enable the community to participate in the future economic benefits
of the All Season Road," added Don MacDonald.
At the signing ceremony Chief Darrell
Betsaka, Chief of NDDB said: "In this Agreement,
NorZinc and the Nah?a Dehe Dene Band
acknowledge their mutual intentions that the All Season Road will
be developed and operated in a manner that respects the land, the
environment and cultures of Aboriginal and non-Aboriginal peoples
of the North."
"The Agreement will supplement our existing IBA and mean
further jobs, training and education, business opportunities and
financial benefits for our people for many years to come and will
facilitate access to our traditional territory", added
Chief Betsaka.
Traditional Land Use Agreement
Similar to the IBA, in the TLUA NorZinc has agreed to maximize
NDDB Members employment and give advantages to support the success
of NDDB businesses.
Under this agreement, NorZinc recognizes and respects NDDB's
asserted rights and interests in their traditional land and in
return, NDDB acknowledges NorZinc's interest in the development and
future operation of the Prairie Creek Mine. The Agreement delivers
a framework such that training, employment and business contracts
are available to NDDB and to assure the mutual benefit to both
parties. The TLUA and the IBA strengthen the relationship between
NDDB and NorZinc.
NDDB and NorZinc have agreed to establish a committee to oversee
implementation of the Agreement, and to support NDDB liaison roles
to gain employment and business capacity for the benefit of NDDB
Members and NDDB Businesses. The Company has also agreed to make
annual contributions to an educational fund to encourage NDDB
Members to reach their career aspiration goals with higher
education.
Other Indigenous Agreements
In addition to the TLUA, the Company is negotiating a Road
Benefit Agreement with the Łíídlįį Kų́ę́ First Nation ("LKFN") of
Fort Simpson, NWT. Fort Simpson is the largest community within
the Dehcho Region, located about 185 kilometres east of the mine
site.
Earlier in 2018, NorZinc entered in to a Process Agreement with
NDDB and LKFN, which provides for the negotiation of a three party
Environmental Management Agreement ("EMA") relating to the ASR.
This EMA is in an advanced stage of negotiations and will provide
for Dene communities' review, participation and oversight of
environmental monitoring of the ASR during permitting, design,
construction, operation and closure phases, and the implementation
of the mitigation measures contained in the Environmental
Assessment.
Background
In January 2011 the Company and
NDDB signed an IBA relating to the maximizing of benefits from
opportunities arising from the operation of the Mine in a manner
that will be to the mutual benefit of both Parties. The IBA
contemplated winter road access to the Mine.
Subsequent to 2011, the Company advanced its design of the Mine
in a number of areas and concluded that the efficient operation and
viability of the Mine will be significantly improved utilizing the
ASR to connect the Mine to the Liard Highway. In April 2014 the Company made application for
licenses for the construction and operation of the road. In
October 2018, following completion of
an Environmental Assessment, the Company obtained final approvals
to allow the ASR permitting process to pass to the Mackenzie Valley
Land and Water Board ("MVLWB") and Parks Canada for final ASR
permit drafting.
The Company expects to submit its updated Project Description
Report shortly. MVLWB and Parks Canada will receive input from
territorial and federal agencies, and local communities,
culminating in road permits being issued, which will
incorporate the recommended mitigation measures included in the
Environmental Assessment Report. The regulatory phase is expected
to be completed in Q3 2019.
An operating Prairie Creek Mine will provide significant
economic opportunity for the NDDB and the entire Dehcho region.
About NorZinc
NorZinc is a TSX-listed development company trading under the
symbol "NZC". The Company's key project is the 100%-owned Prairie
Creek Project, an advanced-stage zinc-lead-silver property, located
in the Northwest Territories. The
Company also owns projects in Newfoundland that hosts several
zinc-lead-copper-gold-silver deposits.
E-mail: invest@norzinc.com
Website: www.norzinc.com
Cautionary Statement – Forward-Looking Information
This press release contains certain forward-looking
information, including, among other things, the expected completion
of acquisitions and the advancement of mineral properties. This
forward looking information includes, or may be based upon,
estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the completion of
transactions, the issue of permits, the size and quality of mineral
resources, future trends for the company, progress in development
of mineral properties, future production and sales volumes, capital
costs, mine production costs, demand and market outlook for metals,
future metal prices and treatment and refining charges, the outcome
of legal proceedings, the timing of exploration, development and
mining activities, acquisition of shares in other companies and the
financial results of the company. There can be no assurances that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. Mineral resources that are not mineral reserves do
not have demonstrated economic viability. Inferred mineral
resources are considered too speculative geologically to have
economic considerations applied to them that would enable them to
be categorized as mineral reserves. There is no certainty that
mineral resources will be converted into mineral reserves.
Cautionary Note to United States Investors
The United States Securities and Exchange Commission ("SEC")
permits U.S. mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "measured," "indicated," and
"inferred" "resources," which the SEC guidelines prohibit U.S.
registered companies from including in their filings with the
SEC.
SOURCE NorZinc Ltd.