MT.

MILLIGAN COPPER-GOLD PROJECT

ENVIRONMENTAL ASSESSMENT

3.8 CONSTRUCTION PHASE ACTIVITIES

Construction of the Mt. Milligan mine is anticipated to take about 30 months. The project will
involve a Construction Management approach led by the construction management
members of Terrane’s Project Management team. Contracts will be prepared and issued for
service contracts including detailed engineering and construction services. The construction
contract work packages prepared by engineering will be assembled into contracts and
issued for competitive bidding.

More detail on the project execution plan is in Appendix J.

3.8.1 Construction Camp

About 700 people will be employed (direct and contractor) during construction of the
Mt. Milligan mine. A temporary camp will be provided for workers, with the exception of the
mine crews involved in pit stripping, during construction as shown in Figure 3.8-1. Mine
crews will commute daily from Fort St. James to the site when they arrive in the fall of 2010.

The camp will be a pre-fabricated, modular structure with 711 single occupancy rooms and
associated facilities including a dormitory building, kitchen, recreation complex,
administration complex, sewage treatment, and potable water system.

The structure will be designed with peaked roofs to handle the high snow loads in this
location. The camp will be dismantled and removed at the end of the construction period.

The mine will not accommodate casual visitors. Only people with business at the mine will
be permitted to travel to the Mt. Milligan Mine site. Most crews will work a single 12-hour
day-shift. However mine pre-strip and tailing dam construction is expected to occur
continuously given the large volume of material that must be moved starting mid-2010.
A shift comprising two 12-hour periods will be established for those crews. Mine equipment
operators will be full-time Terrane employees. The will be involved in pit stripping and
Tailings Storage Facility (TSF) construction and will travel to Fort St. James on a daily basis
and will not stay at the construction camp.

The relatively few night shift staff (security and contractor TSF construction crews during
2011) will be housed in the bottom level of the furthest southwest trailer to reduce noise
levels during their day time sleep period.

The 12-hour shifts will restrict available free time. This together with limited road access
outside the immediate mine area, normal mining operation hazards, rugged surrounding
terrain, cold and wet climate and fish and wildlife protection objectives support the mine’s
policy of discouraging employees from exploring areas adjacent to the mine during their time
off. All personnel will be required to leave the construction camp and return to their
permanent residence during their off time.

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 Reference
Shelter Industries Inc.
Y:\GIS\Projects\VE\VE5156401_Mnt-Milligan\mapping\19_other\19-50-089.mxd

CLIENT:

PROJECT:

Mt. Milligan

Construction Camp Facility Layout

DATE: ANALYST:
July 8, 2008 Figure 3.8-1
JOB No: QA/QC: PDF FILE:
VE5156401 - 19-50-089_CampLayout.pdf
GIS FILE:
19-50-089
PROJECTION: DATUM:

N/A N/A
 MT. MILLIGAN COPPER-GOLD PROJECT
ENVIRONMENTAL ASSESSMENT

3.8.2 Construction Sequence and Water Management

The water management concepts during construction are shown in Figures 3.8-2 through to
3.8-4 and are discussed below together with the construction sequence.

3.8.2.1 Construction in 2009

The major activities in the first year of construction include:

• establish the construction camp and offices

• upgrade the access road to the site and selected site roads
• establish the site water management system
• construct the Meadows Creek Water Supply Pond (MCWSP) and pump station and south
starter tailing dam and King Richard Creek basin liner
• commence construction of the power line from the Kennedy substation to the site

Components of the site construction activities with emphasis on water management are
summarized below:

1. establish access road to site including upgrading road and bridges

2. establish construction camp and offices:
• establish sumps and silt fences and construct diversion ditches around construction
camp/office area; place temporary erosion protection mats and rock as required in
erodible areas of the diverson ditches; terminate the diversion ditches in surficial
sands and alluvials where possible
• clear and grub, strip topsoil and level site and erect construction camp and office
facilities
• drill potable water wells and connect water distribution system
• establish camp generator, electrical distribution system and fuel tank (double lined)
• install sewage collection pipelines and sewage treatment plant and construct
temporary treated sewage holding pond within TSF basin
• establish refuse collection and recycle system, install refuse incinerator and construct
landfill using a manufactured liner within till area of West Separator Berm laydown
area
3. establish site access roads to MCWSP, dam at King Richard Creek and processed sand
and gravel borrow area in esker field near north tailing dam

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ARRANGEMENT PLAN
0m 200 400 600 800 1000 STAGE 1A (2009) CONFIGURATION
WMAP-1A.dwg June 23, 2008

1 : 25000 - -
FIGURE 3.8-2
VE5156401 AMEC-BBY 1
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WATER MANAGEMENT GENERAL
ARRANGEMENT PLAN
0m 200 400 600 800 1000 STAGE 1B (2010) CONFIGURATION
WMAP-1B.dwg June 23, 2008

1 : 25000 - -
FIGURE 3.8-3
VE5156401 AMEC-BBY 1
 MT. MILLIGAN PROJECT
WATER MANAGEMENT GENERAL
ARRANGEMENT PLAN
0m 200 400 600 800 1000
STAGE 1C (2011) CONFIGURATION
WMAP-1C.dwg June 23, 2008

- -
1 : 25000 FIGURE 3.8-4
VE5156401 AMEC-BBY 1
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ENVIRONMENTAL ASSESSMENT

4. establish surface water management system consisting of:

• upslope diverson ditch for borrow areas
• collection ditch and exfiltration pond for the processed sand and gravel area
• coffer dam and diversion pipeline for Meadows Creek including sediment control (e.g.,
place geotextile sock around diversion inlet and outlet to remove any suspended
solids created by construction of the inlet sump and coffer dam)
• coffer dam for upper King Richard Creek
• internal coffer dam and construction water holding pond in a natural depression within
MCWSP
• sump below Meadows Creek dam location with pump to the construction water
holding pond
• sediment sump downstream of south starter dam on lower King Richard Creek
• contingency flocculent addition system for MCWSP
5. clear and grub, strip topsoil and construct MCWSP and install liner and pump station
6. remove the Meadows Creek coffer dam and diversion pipeline when no longer required
7. clear and grub, strip topsoil and construct south starter dam and King Richard Creek
basin liner
8. install recycle pump in seepage recovery pond (converted sediment sump) below south
starter dam
9. clear and grub, strip topsoil, level plantsite and excavate foundation material under mill;
replace with engineered (sized and compacted) fill; any drainage from this area will flow
into the pond established behind the completed south starter dam
10. construct collection ditch on south side of construction camp leading to the pond behind
the south starter dam

The civil works (MCWSP) and south starter dam) must be completed during the dry summer
and early fall to ensure optimum compaction of till dam cores and liners.

During construction of the MCWSP dam, the water would be collected in the sump
immediately downstream of the dam footprint and pumped back to the construction water
holding pond built in a natural depression in the MCWSP basin, augmented by a small coffer
dam.

The construction water holding pond would have about 100,000 m3 capacity. The average
precipitation for July and August is 118 mm. For the 44 ha MCWSP basin this precipitation
represents about 52,000 m3 runoff neglecting evaporation and infiltration. Therefore no
discharge is expected from the construction water holding pond until the MCWSP dam is

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completed. After the dam is constructed, the construction water pond could be emptied into
the MCWSP.

The diversion pipe for Meadows Creek would be left in place until water quality was
acceptable. The capacity of the MCWSP is 2.6 Mm3. The total mean flow of Meadows
Creek from July to October inclusive is 1.4 Mm3, therefore, a discharge is not expected from
the water supply pond during 2009 until the South starter TSF is constructed, especially with
the Meadows Creek diversion pipeline in place. Once the south starter dam is constructed,
excess water will be pumped from the MCWSP to prevent an overflow of sediment laden
water.

With the above construction plan, no surface discharge of contact water associated with the
major civil works is expected. The only releases expected are via exfiltration from the ponds
and ditches constructed around the processed sand and gravel area and possibly the
construction camp area.

A flocculent addition system will be established as a contingency on the inflow to the

MCWSP in the unlikely event it is required while the south starter dam and King Richard
basin liner are being constructed. The water supply pond would be used as a settling pond
until the pump system was established. The pond has a length to width ratio of about 4:1
which is reasonable to reduce short-circuiting. Results of testing candidate flocculents are in
Appendix K.

3.8.2.2 Construction in 2010

Construction in 2010 will involve the plant site buildings and associated infrastructure,
explosives plant, concentrate load-out facility (near Fort St. James), and the fire water
system. The south starter TSF dam will be raised. In addition, stripping the open pit will
begin.

A batch cement plant will be established northeast of the construction camp.

Drainage from the plant site construction activities including the batch cement plant will flow
to the TSF pond by gravity behind the south starter dam where the water will be retained for
mill start-up. A collection ditch will be constructed below the open pit stripping area and
water drained by gravity to the TSF pond. A pump in the seepage collection pond below the
south starter dam will return construction water from that area to the TSF.

As with 2009, no surface discharge is expected from the construction activities during 2010.

The contingency flocculent addition system for the MCWSP is not required in 2010 as pumps
will be in place to return water from the water supply pond if required. Clean upstream
Meadows Creek water would discharge through the MCWSP to lower Meadows Creek and
Rainbow Creek.

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The only release expected during 2010 may be from the exfiltration pond below the sand and
gravel processing area near the north dam. The pond will be equipped with a pump and the
water pumped to the pond behind the south starter dam if required.

In the fall of 2010, all the construction water collection ditches and exfiltration ponds will be
constructed below the southeast, northeast, and north dams in preparation for construction of
these dams in 2011. Ditches and ponds will be constructed in the top 5 m of alluvial to allow
exfiltration of water that contacts construction areas. Pumps will be installed in the ponds to
transfer water to behind the south starter dam constructed on King Richard Creek.

A portion of the southeast starter dam might be constructed in the early fall of 2010
depending upon mine equipment availability.

Upon delivery and erection of the major mining units, pre-production mining will be carried
out by the Owner’s crews during late 2010. Run-of-mine waste materials will be provided for
the construction of the TSF tailing embankment. Bench pioneering and preparation activities
will proceed in advance of ramping up to full scale production.

The delivery of waste material from the open pit to the tailing embankment area has been
coordinated with the staging of the embankment crest elevation.

Clearing at the open pit and the King Richard Creek TSF during the pre-production period
has been estimated at approximately 560 ha. On-going additional clearing will be required as
the open pit and waste storage facilities are expanded and the haul roads are extended.

In advance of road building, a contractor will log, clear and grub the roads from the truck
shop area to the MBX/66 pit areas. After the arrival and assembly of the partial support mine
equipment fleet (track and RT dozers, small front end loader, graders, small haul truck, water
truck and rock drill), 4.8 km of haul roads will be constructed by the mine crew. Permanent
roads will be constructed to the following areas: primary crusher, truck shop, waste dumps,
and TSF embankments.

3.8.2.3 Construction in 2011

In 2011, the contractor will continue logging, clearing, and grubbing, and the mine crew will
continue road building activities for an overall total of 7.2 km.

The southeast, northeast, and a portion of the north dam TSF starter dams and causeway
will be constructed. Water collected during construction of the tailing starter dams will either
exfiltrate or be collected and pumped from the recovery ponds to the pond behind the south
starter dam.

After all the starter tailing dams are constructed, the downslope collection ditches and ponds
will be excavated to the underlying low permeability till layer with the downslope sides lined

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with impermeable till as required. Therefore, these ditches and ponds systems will serve as
TSF seepage and dam shell runoff/seepage collection and pump back systems during mine
operations.

Construction of all mine facilities including the mill, warehouse, truck shop, and crusher will
be completed by the end of 2011. Commissioning of the facilities will begin in December
2011.

3.8.3 Construction Traffic

About 80,000 t of equipment and materials will be shipped to the site over approximately 30
months of construction based on experience with similar sized mine projects. This will
include fuel (about 13,000 t over the construction period). At about 20 t per load, this
represents about 4000 heavy loads.

Table 3.8-1 provides an estimate of road traffic during construction. The table shows the
number of return trips. Therefore, the number of pieces of equipment on the road is double
the values shown. Demobilization of contractor’s equipment can be managed by using a
back haul, so that travel is included in the table. The number of light vehicle return trips is
also shown in the table.

Arriving trucks will be unloaded and shipped out each day.

Table 3.8-1: Construction Traffic

Heavy Loads
Average
Number Number Number Loads Tonnes Average Light
Period of Months of Days of Loads Moved Moved Peak/Day Traffic
Year 1
Jan - May 5 30 2 300 6,000 2 3
Jun - Sept 4 30 6 720 14,400 8 6
Oct - Dec 3 30 4 360 7,200 5 6
Total 1,380 27,600
Year 2
Jan – May 5 30 2 300 6,000 4 5
Jun – Sept 4 30 7 840 16,800 8 10
Oct – Dec 3 30 5 450 9,000 5 8
Total 1,590 31,800
Year 3
Jan – May 5 30 2 300 6,000 4 5
Jun – Sept 4 30 4 480 9,600 6 10
Oct – Dec 3 30 1 90 1,800 3 6
Total 870 17,400
Grand Total 3,840 76,800
Notes: Total tonnage to move - 80,000 tonnes. Number of loads - 4,000 loads. Average size of load - 20 tonnes.

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