FACT SHEET: ULU PROJECT

The Ulu project is located on Inuit Owned Lands ( IOL ) approximately 12 km North of Hood River or 155 km NNW of Lupin Mine Site. From 1989 to 1992, BHP Minerals Limited, conducted the initial surface mineral exploration at the site. In November 1995 Echo Bay mines acquired the property and began its exploration program which is expected to continue until mid 1998. To support this program, a camp, airstrip, and associated facilities were constructed. Winter roads were used during 95/96 and 96/97 winter seasons. The extra tons of ore achieved from the satellite deposits such as Ulu allows for the feasibility of continued operation at the Lupin mine site.

Background on Lupin Mine: Lupin mine is located approx. 80 km south of the Arctic Circle, on Contowoto lake. The Lupin Mine was acquired by Echo Bay Mines in 1979 from Inco . Lupin mine currently hold a Water Licence No. N7L2 -0925 which is valid until May 31, 2000.

GENERAL INFORMATION

ADDRESS:	Echo Bay Mines Ltd. Lupin Operations, 9818 Edmonton International Airport, Edmonton, Alberta T5J 2T2

CONTACT:	Mr. Hugh Ducasse , Manager Loss Control and Environment, Lupin (March 1997) (403) 890-7000 Fax: 890-8766

LICENCE NUMBER:	NWB2ULU (to be issued)

TYPE OF MINE:	Gold

MINING METHOD:	Underground exploration for bulk sample

PUBLIC CONSULTATION

COMMUNITIES:	Kugluktuk , Bay Chimo , and Cambridge Bay

(Negotiated Impact Benefits Agreement September 17, 1996)

DIO 'S:	KIA , Burnside HTA , and Kitikmeot HTA . ( KIA involved with review for winter road-land use permit)

TRADITIONAL KNOWLEDGE:	Participant in the Naonayaotit Traditional Knowledge Study.

NIRB:	Did not screen this project on IOL . Currently screening the access road on Crown Lands.

MINING OPERATIONS

DRILLING: 25,000 m underground diamond drilling for 2 year period

2000 m surface drilling

BULK SAMPLE:	1,100 tonnes	4000 samples

NUMBER EMPLOYEES:	64 (~24 Inuit)

PROCESSING PLANT:	Storage at Ulu , processing ore at Lupin mine site.

WATER USE

WATER SUPPLY:	West Lake (Storage: 27,000L for general water use; and 63,000 for fire water storage)

QUANTITY OF WATER:	50 cubic meters/day ( camp:40 m3 /d, diamond drill: 2.5 m3 /d, drill 4 m3 /d)

WASTE MATERIALS

WASTE ROCK:	160,000 tonnes	40,000 tonnes ore zone material

MINE WATER DISCHARGE:	Sumps in underground workings. Excess routed to lined pond on surface, treatment involve storage, settling of suspended solids and lime addition to control pH. Disposal eventually to natural depression to south of camp (East Lake).

TAILINGS CONTAINMENT:	None. Processing at Lupin mine site.

ORE STORAGE PAD:	5 Ha. Stockpiling to begin in 1997 with initial ore deliveried to Lupin scheduled for early 1999.

SETTLING/NEUTRALIZATION POND:	Used to treatment runoff and excess mine water. Eventual discharge to East Lake. (Each pond: Surface Area~ 625m2 Depth ~ 2.5 m Volume ~ 1200 m3 )

SURFACE RUNOFF WATER:	Storm water sump constructed outside the portal to prevent excess water inflow to underground. Water used underground if required.

SEWAGE TREATMENT PLANT:	Rotating Biological Contactor (RBC) Portable package plant with effluent discharge to East Lake. Sludges produced will be spread within disturbed area and capped with waste rock.

SOLID WASTE:	Burned in packaged waste incinerator. Other waste transported to Lupin for disposal.

STUDIES

1991	Environmental Overview - Rescan

1992	Wildlife Survey - BHP

1996	Project Archaeological Impact Assessment Phase 1 and Phase 2

1996	Fisheries Assessment of Streams and Lakes in Ulu Project Area.

1996	Wildlife and Wildlife Habitat Assessment

1996	Preliminary Assessment of ARD Potential

1997	Studies planned for East Lake, Ulu Lake, archaeology, wildlife, soils and ARD potential.

1997	Completion of Kinetic Test ARD testwork .

Participant in the West Kitikmeot Slave Study

ENVIRONMENTAL CONCERNS

Runoff water from storage pad may have lowered pH due to oxidation of sulphide minerals in the stored ore. Continued Acid Base Accounting Test ARD testing. Lime can be added to adjust pH.

Ponds will have synthetic liner to minimize leakage.

East Lake as a contingency storage area due to excess mine water act as a polishing pond. Control structure will be constructed at ht outflow from the lake. Potential locations shown.

Hazardous and detonator storage will be near Camp 3, ~ 12 km from the Ulu site.

PROPOSED MONITORING

CONTAINMENT AREA(S):	Monthly during summer and prior to any discharge: pH and metal concentrations.

EAST LAKE:	Monthly during summer as it receives effluent from sewage plant and/or water from containment areas: pH and metal concentrations.

SEWAGE TREATMENT PLANT:	Monthly: BOD5 , Suspended Solids, and Faecal coliforms .

LICENCE INFORMATION

ENVIRONMENT CANADA ( EC ):

i.	Water body crossing for winter road, spill contingency, fuel storage, and waste management.

ii.	Recommend feasibility analysis of using East Lake as a contingency pond with retention structures. Concern with contiminants entering Ulu lake which is fish bearing. The drainage path between East Lake and Ulu Lake is very short.

iii.	Sewage Treatment Plant (Pending: awaiting specifications from Project Manager)

iv.	Recommend ongoing study to analize potential for ARD from ore storage piles or waste rock used in construction. Concerns with acid leachate and Arsenic.

v.	Monitoring:	Water Supply: Annual As, Cu, Ni, Hg, Cd, Pb, Zn, TSS , pH and Faecal .

Sewage: Monthly: ph, TSS , BOD5 , and Faecal .

Storage Pad Runoff: Monthly period of flow & prior to discharge, Weekly during discharge: As, Cu, Ni, Hg, Cd, Pb, Zn, TSS , and pH.

East Lake and Ulu Lake: Monthly during periods of flow As, Cu, Ni, Hg, Cd, Pb, Zn, TSS , pH and Faecal . (Increase frequency at outflow of East Lake if receiving discharge from ore runoff collection pond.)

vi.	Comprehensive A&R plan.

DEPARTMENT OF FISHERIES AND OCEANS ( DFO ):

i.	Sumps, Wastes and fuel caches be located a minimum of thirty (30) metres from the normal high water mark of any water body.

ii.	No construction or disturbance of any stream/lake bed or bank is permitted unless authorized by DFO .

iii.	No drilling done within thirty (30) metres fo the high water mark of any water body or watercourse.

iv.	General DFO considerations.

INDIAN AND NORTHERN AFFAIRS (DIAND)

i.	Identify water supply source and volume limits for domestic and industrial purposes. ( ie ; West Lake and volume not to exceed 100m3 /day);

ii.	Intake line should be equipped with mesh size sufficient to ensure no entrainment of fish;

iii.	Recommend sewage sludges be incinerated or buried in sump rather than spread within the area.

iv.	SNP parameter for Sewage prior to entering East Lake: Fecal 1000 CFU /100ml ; BOD5 30.0 mg/L; TSS 35.0 mg/L; Oil and Grease 5.0 mg/L; and ph 6.0-9.5.

v.	Effluent Parameters for excess minewater and ore stockpile effluent:

Max. Avg. Conc.	Max. Conc. of any Grab Sample
Total Arsenic, As	0.50 mg/L	1.0 mg/L
Total Copper, Cu	0.30 mg/L	0.60 mg/L
Total Lead, Pb	0.20 mg/L	0.40 mg/L
Total Nickel, Ni	0.50 mg/L	1.0 mg/L
Total Zinc, Zn	0.50 mg/L	1.0 mg/L
Total Suspended Solids, TSS	25.0 mg/L	50.0 mg/L
Oil and Grease	5.0 mg/L
pH	6.0-9.5

vi.	Recommend development and implementation of ARD monitoring plan for ore and Waste Rock

vii.	Requirement for Annual report.