Selwyn and Selwyn Chihong have carried out extensive baseline environmental and engineering studies in 2006, 2007, 2008, 2009, 2010 and 2011 to gather the information necessary to enter the permitting process under the YESSA process. A preliminary assessment of the site features and the character of the ores suggests that a mine can be developed in a manner that it will have minimal long term environmental impact. The non-acid generating characteristics of the mineralization are very important in mitigating water contamination issues and waste management.
A tentative permitting and development schedule has been developed that would see the completion of the environmental assessment phase of the permitting process by Q2 of 2014. It is expected that construction will take 18 months. Assuming the Quartz Mining License is received by Q2 2014, construction could commence. Construction of tailings storage facility commences after receipt of a Type A Water License.
The current schedule is viewed as aggressive but achievable. Any change in the initial mine plan could delay the commencement of production.
Selwyn Project Development Timeline (subject to financing)
Another key initiative is the reactivation of the land use permit for the historic mine access road constructed from Tungsten, NWT to the XY deposit. Selwyn has received permits for rehabilitation and operating on the road that is within the Northwest Territories from both Federal Ministry of Parks and Department of Aboriginal Affairs and Northern Development. Tungsten and the Cantung mine have been a staging site for mobilization of equipment and supplies to the project, and the assistance and cooperation of North American Tungsten mine is gratefully acknowledged. Reactivation of the road will be invaluable for mobilizing equipment and supplies for future development activities. Selwyn Chihong is currently advancing an application for Licence of Occupation for Howards Pass Access Road.
In addition to the assembling of a strong in-house environmental team to undertake the environmental, socioeconomic and related studies, the Company is establishing a senior advisory committee to oversee the permitting process and consultation with governments and communities to ensure effective permitting and development of the project. The size of the Selwyn Project is of considerable interest to many communities and governments and their support is valued in this large undertaking to ensure maximum benefits for all.
First Nations Consultations
Selwyn and Selwyn Chihong has also commenced discussions with communities of the Kaska First Nation in the Yukon to negotiate a socioeconomic participation agreement to address environmental and social concerns and to explore opportunities for their participation in the economic benefits of the exploration and development of the Selwyn Project. The management team has a long history of working with the Kaska and seeks to broaden this relationship over the coming years. Selwyn Chihong completed an Interim Measures Agreement in July 2012 that applies to all exploration activities.
Part of the project borders the Northwest Territories and the settled land claim area of the Sahtu Dene and Metis. Selwyn Chihong has entered into a Cooperation Agreement with Tulita Land Corporation, Norman Metis Wells Corporation and Fort Norman Land Corporation in regards to activities in their settlement area.
Selwyn Chihong has also entered into negotiations with Naha Dehe Dene Band to complete a cooperation agreement in respect of its activities within their traditional territory, which covers part of the proposed access road within the Northwest Territories