Hello Phyllis,

Jim Wall requested some additional information from my office regarding the water license application for our pending Muskox Intrusion project, located approximately 110km south of Kugluktuk.

As stated in the permit application, our exploration efforts for the project will be conducted out of the McGregor Lake camp, located at the north end of McGregor Lake (as per the diagrams I sent with the application).  Should our exploration program go ahead as planned, we will be required to bring approximately 250 - 45 gallon drums of fuel to the camp (140 Jet B for helicopter support and 110 diesel for drilling and camp usage).  It is unlikely that all 250 drums will be at camp at the same time as we intend to shuttle the fuel from Kugluktuk to McGregor Lake by Twin Otter on an as need basis throughout the program.  Once the drums arrive at McGregor Lake, they will be slung by helicopter to the approved fuel cache site.  

All fuel drums will be stored in the same approved location that Muskox Minerals utilized during its past exploration programs (1995-2002).  The fuel cache site is situated approximately 100m north of McGregor Lake camp and consists of a large natural depression near the top of a hill well away from any standing water (at least 200m from McGregor Lake).  The fuel cache site, approximately 100 by 100m in size, is completely encircled by natural ridges several metres high (a natural berm).  There is no natural path from the cache site to standing or flowing water.

Also at Jim's request, please find attached Anglo American's Spill Contingency Flow Chart for the Muskox Intrusion project (as a .pdf).  Included on it are the names and telephone numbers of key governmental and Anglo American personnel that would be contacted in the unlikely event of a spill.

I hope this helps the application process along.  Please do not hesitate to contact me should you require further information related to this water permit application.

Yours truly,

Gary DeSchutter
Project Geologist
Anglo American Exploration (Canada) Ltd.
Winnipeg Ph: 204-888-3863

gdeschutter@angloamerican.ca