Revised Final Environmental Study Report (24 MB) - Gold Canyon ...

Revised Final Environmental Study Report (24 MB) - Gold Canyon ... Revised Final Environmental Study Report (24 MB) - Gold Canyon ...

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GOLD CANYON RESOURCES INC. GCU: TSX-V Suite 810 - 609 Granville Street, P.O. Box 10356 Pacific Centre, Vancouver, B.C., Canada V7Y 1G5 Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604) 682-0537 www.goldcanyon.ca April 19, 2013 Chief Matthew Keewaykapow, Cat Lake First Nation Chief Lorraine Crane, Slate Falls First Nation Chief Clifford Bull, Lac Seul First Nation Chief Leslie Cameron, Wabauskang First Nation Mr. Jim Bradley, Minister of the Environment Mr. Michael Chan, Minister of Tourism, Culture and Sport Mr. Michael Gravelle, Minister of Northern Development and Mines Mr. Dave New, Ministry of Natural Resources, Area Supervisor, Red Lake South SENT VIA EMAIL ONLY Re: Response to Trout Forest Tourist Outfitters Final Environmental Study Report Review We write to respond to the submission dated 30 March 2013 from the Trout Forest Tourist Outfitters (“TFTO”) titled Gold Canyon Resources Inc.: Final Environmental Study Report Review (the “TFTO Submission”). The TFTO Submission is seriously flawed and, therefore, should be given very little, if any, weight when assessing Gold Canyon Resources Inc.’s (“GCU”) Environment Study Report for the Springpole Gold Access Corridor Project (“Project”). Our main concerns with the TFTO Submission are as follows: 1. Many of the concerns relate to the development of the Springpole gold mine project (“Gold Project”), rather than the Project, and are not within the scope of this review. A further comprehensive review of the mine development would be undertaken if the Gold Project advances to that stage. 2. TFTO’s concerns related to the Project are based on factual errors, misunderstandings, and mischaracterizations. The resulting conclusions that TFTO asks the Ministry to draw are extreme and beyond any reasonable understanding of the nature and scale of the Project. Moreover, those conclusions lack any evidentiary or logical foundation. 3. GCU’s consultation efforts are not accurately reflected. GCU undertook extensive consultation, including with the TFTO. GCU listened carefully to all reasonable concerns raised and adjusted the design of the Project in response. 4. TFTO uses inflammatory language that is unwarranted and then distributed the TFTO Submission broadly in an effort to raise concerns among others. TFTO refers to “stakeholders” in numerous paragraphs and purports to represent a broad view of such stakeholders. It is unfortunate that TFTO has chosen this approach. TFTO can only speak for its members. GCU has always been open and forthcoming with information to explain the Project with all interested stakeholders.

Page 2 GCU began consulting with TFTO in 2012. In early 2013, GCU asked TFTO to identify any issues that remained unresolved for the TFTO. TFTO identified three outstanding concerns that are all addressed in the ESR, but the focus of TFTO members was asking GCU to provide economic compensation or buy their operations, which in most cases are far from the Project vicinity. GCU has declined to buy any operations of TFTO members, but has remained open to discuss any reasonable outstanding concerns about impacts of the proposed road. The balance of this letter elaborates further to put the Project and the TFTO Submission into proper context. A more detailed response to the TFTO Submission is attached. The Project GCU’s Springpole Gold Access Corridor Project (the “Project”) involves the construction of an already approved forestry road (~22 km) and a short-term, restricted access winter road (~21 km) on lands that will be leased, pursuant to Section 81 of the Mining Act. The proposed road corridor is illustrated on Figure 2-1 of the final ESR. Contrary to the original TFTO Submission, the area to be cleared for the Project consists of only 0.645 km 2 , rather than 645 km 2 , and approximately 0.33 km 2 of that area is already approved to be cleared in the Trout Lake Forest Management Plan. 1 The proposed road will allow the safe and efficient exploration work necessary to further define the mineral resource on the Springpole Gold Project, currently known to host more than five (5) million ounces of gold and 26 million ounces of silver. This Project goes no further. The results of the work to define the mineral resource will lead to a further decision on whether the Gold Project would proceed to the environmental assessment review stage: • If the Gold Project proceeds to the environmental assessment review stage, a comprehensive environmental assessment would be initiated to assess the Gold Project from its development to it ultimate decommissioning. • If Gold Project does not proceed – and, specfically, GCU does not initiate a provincial environmental assessment for the Gold Project before 2017 – then the portion of the proposed road beyond the forestry road will be decommissioned in accordance with the MNR’s modern best practices, as described in Section 5.3 of the Final ESR. GCU will provide financial assurance to the Crown to support any such decommission work as a condition of this environmental assessment process. The Project is a road corridor development; a type of undertaking that has been commonplace in Ontario for more than 50 years. The environmental protection measures for road development are well understood and proven, having been integrated into numerous EA processes and projects across northern Ontario. The Project incorporates best practices and additional site-specific measures to further mitigate potential impacts to biological values. In addition, GCU proposes to decommission historic mineral exploration trails in the region. Consultation with Stakeholders GCU has consulted local stakeholders, including the TFTO, since April 2012 regarding the Project. GCU has modified the Project design and adopted specific mitigation measures to respond to stakeholder concerns. 1 TFTO filed a revised submission to correct this significant error, but the value was still miscalculated.

Page 2<br />

GCU began consulting with TFTO in 2012. In early 2013, GCU asked TFTO to identify any<br />

issues that remained unresolved for the TFTO. TFTO identified three outstanding concerns that<br />

are all addressed in the ESR, but the focus of TFTO members was asking GCU to provide<br />

economic compensation or buy their operations, which in most cases are far from the Project<br />

vicinity. GCU has declined to buy any operations of TFTO members, but has remained open to<br />

discuss any reasonable outstanding concerns about impacts of the proposed road.<br />

The balance of this letter elaborates further to put the Project and the TFTO Submission into<br />

proper context. A more detailed response to the TFTO Submission is attached.<br />

The Project<br />

GCU’s Springpole <strong>Gold</strong> Access Corridor Project (the “Project”) involves the construction of an<br />

already approved forestry road (~22 km) and a short-term, restricted access winter road (~21 km)<br />

on lands that will be leased, pursuant to Section 81 of the Mining Act. The proposed road corridor<br />

is illustrated on Figure 2-1 of the final ESR. Contrary to the original TFTO Submission, the area<br />

to be cleared for the Project consists of only 0.645 km 2 , rather than 645 km 2 , and approximately<br />

0.33 km 2 of that area is already approved to be cleared in the Trout Lake Forest Management<br />

Plan. 1<br />

The proposed road will allow the safe and efficient exploration work necessary to further define<br />

the mineral resource on the Springpole <strong>Gold</strong> Project, currently known to host more than five (5)<br />

million ounces of gold and 26 million ounces of silver. This Project goes no further. The results of<br />

the work to define the mineral resource will lead to a further decision on whether the <strong>Gold</strong> Project<br />

would proceed to the environmental assessment review stage:<br />

• If the <strong>Gold</strong> Project proceeds to the environmental assessment review stage, a<br />

comprehensive environmental assessment would be initiated to assess the <strong>Gold</strong> Project<br />

from its development to it ultimate decommissioning.<br />

• If <strong>Gold</strong> Project does not proceed – and, specfically, GCU does not initiate a provincial<br />

environmental assessment for the <strong>Gold</strong> Project before 2017 – then the portion of the<br />

proposed road beyond the forestry road will be decommissioned in accordance with the<br />

MNR’s modern best practices, as described in Section 5.3 of the <strong>Final</strong> ESR. GCU will<br />

provide financial assurance to the Crown to support any such decommission work as a<br />

condition of this environmental assessment process.<br />

The Project is a road corridor development; a type of undertaking that has been commonplace in<br />

Ontario for more than 50 years. The environmental protection measures for road development are<br />

well understood and proven, having been integrated into numerous EA processes and projects<br />

across northern Ontario. The Project incorporates best practices and additional site-specific<br />

measures to further mitigate potential impacts to biological values. In addition, GCU proposes to<br />

decommission historic mineral exploration trails in the region.<br />

Consultation with Stakeholders<br />

GCU has consulted local stakeholders, including the TFTO, since April 2012 regarding the<br />

Project. GCU has modified the Project design and adopted specific mitigation measures to<br />

respond to stakeholder concerns.<br />

1 TFTO filed a revised submission to correct this significant error, but the value was still miscalculated.

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