Participant Funding Program – Regular Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for the Environmental Assessment of Elmtree Property Gold Mine Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act (the Act), which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels.

A Funding Review Committee (FRC) independent of the environmental assessment (EA) was established for the Elmtree Property Gold Mine project (the Project) in New Brunswick which is being conducted by means of a comprehensive study (CS). Its purpose was to assess applications received under the PFP – Regular Funding Envelope (RFE) for the Project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided and, if so, in what amount.

On March 22, 2011, a total of $50,000 was made available under the RFE for the Project to support participation in the EA, including:

• review and comment on the environmental impact statement (EIS) submitted by the Castle Resources Inc. (the proponent);
• prepare for and participate in the conduct of the EA prior to the preparation of the Comprehensive Study Report (CSR);
• input and comment on the draft CSR/assessment report; and
• final input into the CSR.

The deadline to submit an application was April 26, 2011. Three applications were received for a total funding request of $86,380.

On May 2, 2011, the FRC met to review the applications. The FRC members were Mr. Paul Scott, retired Regional Director of the Agency's Pacific and Yukon office, acting as Committee Chairperson; Mr. Guy Demers, Senior EA Consultant; and Mr. Paul Charest, EA Consultant.

Background

Castle Resources Inc. (the proponent) proposes to develop an open-pit gold mine and ancillary facilities in northern New Brunswick (NB). The mine will be located approximately 20 km northwest of Bathurst, NB. A feasibility study is to be completed in the first quarter of 2011. The proposed production schedule is based on supplying the processing plant at a rate of 1,500 tonnes per day. The mine will operate for only 18 to 24 months, after which decommissioning, reclamation and abandonment will occur. Development of the mine would require stockpiling of ore, waste rock, organics and overburden, runoff collection and treatment and transportation of the ore for off-site processing.

Ore processing will be undertaken by a third party at an existing approved facility in northern NB. The mining operation, over the lifespan, will extract up to 559,000 tonnes per year of gold-containing ore for off-site processing.

As part of the Project, the proponent also proposes to relocate a portion of the South Branch Elmtree River to allow for the development of the mine for the purpose of gold-containing ore extraction.

The proponent submitted a project description to the Agency and the Major Projects Management Office on September 30, 2010. Following a scan of the document, the Agency determined that it was incomplete, notably lacking details on ore processing. The proponent followed up with an addendum to the project description on November 16, 2010 at which time the Agency accepted the document and initiated the CS. The Notice of Commencement was posted on the Agency's web site on March 15, 2011. The first public comment period started March 18, 2011 and ended April 26, 2011.

The Project is subject to review under NB's Environmental Impact Assessment Regulation. The Agency will cooperate with NB to the extent possible; however, the Project is undergoing a Determination Review in NB, which is similar to a screening in the federal EA process. As such, there will be limited opportunities to harmonize with the exception of the review of the EIS.

Eligibility

Under the PFP - RFE, funding may be provided to applicants to support their input to an EA with the federal government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must plan to engage in activities linked to the EA of the proposed Project and be able to demonstrate that they meet at least one of the following eligibility criteria:

• have a direct, local interest in the Project, such as living or owning property in the Project area;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA;
• have expert information relevant to the anticipated environmental effects of the proposed Project.

The three applicants were found to be eligible for funding.

Under the PFP - RFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• local collection and/or distribution of information;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs
• legal fees;
• purchase of relevant information material, with supporting documentation;
• general media advertising; and/or promotion
• other detailed expenses.

Rationale for Allocation

In reviewing the applications received and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

• that the applicants have a direct, local interest in the proposed Project, such as living or owning property in the Project area;
• that the applicants possess community knowledge or Aboriginal traditional knowledge relevant to the EA;
• that the applicants can provide expert information relevant to the anticipated environmental effects of the Project;
• the quality, clarity and content of the application and the applicant's proposed EA participation work plan;
• the small scale and relatively short time span of this particular Project;
• the potential for permanent follow-up and mitigation should there be acid generating rock discovered in the Project site.

Recommendation

The FRC recommends allocating a total of $50,000 to the three applicants as follows:

• $11,100 to the Comité d'intervention de la mine d'or Elmtree;
• $10,500 to the Bassins Versants de la Baie des Chaleurs; and
• $28,400 to the Bathurst Sustainable Development.

The FRC further recommends that a condition of any funding allocation be that the applicants provide input to the EA through comments on at least one of the following: the EIS; the draft CSR; and/or the final CSR.

Participant Funding Review Committee
Elmtree Property Gold Mine Project
Regular Funding Envelope

__________________________________
Paul Scott, Committee Chairperson, Retired Regional Director of the Agency's Pacific and Yukon Office

__________________________________
Guy Demers, Environmental Assessment Consultant

__________________________________
Paul Charest, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Elmtree Property Gold Mine Project
Regular Funding Envelope

Applicants	Total allocation amount recommended
Comité d'intervention de la mine d'or Elmtree	$11,100
Bassins Versants de la Baie des Chaleurs	$10,500
Bathurst Sustainable Development	$28,400
Total:	$50,000