Project Recommendation

Issued by the Minister of the Environment
under Chapter 10, Sections 8 and 9 of the Nisga'a Final Agreement (the Agreement)

To

Environment Canada, Fisheries and Oceans Canada, and Natural Resources Canada are
the responsible authorities for the KSM (Kerr-Sulphurets-Mitchell) Mine Project
under the Canadian Environmental Assessment Act (the former Act).

Description of the project

Seabridge Gold Inc. (the proponent) proposes to construct, operate and decommission the Kerr-Sulphurets-Mitchell Project (the Project), an open-pit copper, gold, silver and molybdenum mine located approximately 65 kilometres northwest of Stewart, British Columbia (B.C.). The proposed ore production rate is up to 130,000 tonnes per day for up to 52 years of mine operations. Components of the Project fall within the Nass Area and all of Highway 37A and part of Highway 37 run through the Nass Wildlife Area, as described in the Agreement.

Conduct of the environmental assessment

On July 10, 2009, the Canadian Environmental Assessment Agency (the Agency) determined that the Project is described in the Comprehensive Study List Regulations and that an environmental assessment was required, pursuant to the former Act. The Agency exercised the powers and performed the duties and functions of the responsible authorities for completing the comprehensive study, consistent with the requirements of the former Act, and acted on behalf of the Government of Canada to satisfy the relevant provisions of the Agreement. On December 19, 2014, I issued an Environmental Assessment Decision Statement under the former Act concluding that the Project is not likely to result in significant adverse environmental effects, taking into account the implementation of the mitigation measures described in the Comprehensive Study Report for the Project. The Environmental Assessment Decision Statement for the Project also identifies the follow-up program that will have to be implemented.

Assessment of effects referred to in Chapter 10, paragraph 8(e) of the Agreement

In accordance with Chapter 10, section 8(e) of the Agreement, I have determined that the Project can reasonably be expected to result in adverse, but not significant, environmental effects on residents of Nisga'a Lands, Nisga'a Lands, or Nisga'a interests related to fish, wildlife and migratory birds. I have established the recommendations below to prevent or mitigate these environmental effects and to verify the effectiveness of such measures.

1. The proponent should be required to implement the mitigation measures and follow-up program requirements identified in the Comprehensive Study Report.
2. The proponent should be required to prepare and implement a Fish Habitat Compensation Plan referenced in the Comprehensive Study Report, in consultation with the Nisga'a Nation and for approval by Fisheries and Oceans Canada.
3. The proponent should be required, prior to the construction of the tailings management facility, prepare and implement a Fish Salvage Plan, in consultation with the Nisga'a Nation and for approval by Fisheries and Oceans Canada, that provides for the assessment of the potential effects on fish and fish habitat in the receiving environment and describes how the effectiveness of the plan will be evaluated.
4. The proponent should be required, prior to the construction of the tailings management facility to prepare and implement a Salmon Monitoring Plan in consultation with the Nisga'a Nation and for approval by Fisheries and Oceans Canada, for monitoring salmon in Teigen Creek.
5. The proponent should be required to prepare and implement a Human Health Monitoring Plan, in consultation with the Nisga'a Nation and Health Canada.
6. The proponent should be required, prior to the mining of the Mitchell and Sulphurets Pit and the construction of the tailings management facility, to provide updated water quality predictions that satisfy the Government of B.C. requirements and use the predictions to update their water quality effects assessment and water treatment requirements.
7. The proponent should be required to prepare, and implement a Water Management Plan that satisfies the Government of B.C. requirements prior to the construction of the tailings management facility, water storage facility, or the mining of the Sulphurets Pit, in consultation with the Nisga'a Nation.
8. The proponent should be required to design the Project to meet British Columbia Water Quality Guidelines or Site Specific Water Quality Objectives, approved by the Government of B.C. for North Treaty Creek, and South Teigen Creek during the operations, closure and post-closure phases of the Project.
9. The proponent should develop, where required, Site Specific Water Quality Objectives that satisfy the Government of B.C. requirements in consultation with the Nisga'a Nation, prior to commencing the construction of water treatment plants, seepage dams, tailings management facility, or discharge pipeline associated with North Treaty Creek, and South Teigen Creek.
10. The proponent should be required to prepare and implement for all phases of the Project the following management plans and monitoring programs, as referenced in the Comprehensive Study Report, that satisfy Government of B.C. requirements, in consultation with the Nisga'a Nation:
    1. Spill prevention and emergency response plan and geographic response plan, including measures to address the potential risks of accidents or spills associated with road use, such as the identification of all hazardous and bulk materials that pose a risk to the environment or public safety, a fate and effects assessment for materials identified, site specific response tactics and spill reporting and notification.
    2. Water management plan, including measures for diverting non-contact water around the mine site and processing and tailings management area, collecting and treating contact water from the mine site to meet discharge requirements prior to a release to the receiving environment.
    3. Selenium management plan, including measures to ensure the protection of aquatic life through prediction, prevention, mitigation and monitoring of selenium at the mine site and processing and tailings management area.
    4. Groundwater monitoring and mitigation plan, including measures for monitoring changes to groundwater quality and quantity at the mine site and processing and tailings management facility and for developing contingency measures and mitigation strategies if effects are detected.
    5. Aquatic effects monitoring program, including measures to monitor Project-related effects on the freshwater environment, as well as contingency measures to address any unanticipated adverse effects.
    6. Wetlands management plan, including measures to ensure protection of wetlands during construction and operation, to maintain wetlands to levels of functionality similar to baseline conditions, and to monitor and report on the effectiveness of the measures.
    7. Terrestrial ecosystems management and monitoring plan, including measures to minimize vegetation loss and disturbance, avoid the introduction of invasive species and monitor metal concentrations in plant tissues to minimize potential risk to human and wildlife risk.
    8. Wildlife effects monitoring plan, including measures to monitor the health of wildlife, minimize vehicle-wildlife collisions and reduce the potential effect of increased traffic along the Coulter Creek Access Road, Treaty Creek Access Road, and Highways 37 and 37A. Participation in government and industry initiatives to support the recovery of the Nass moose population and to address cumulative effects related to traffic along the Highway 37 and 37A corridors should also be included in the wildlife effects monitoring plan.
    9. Bear standard operating procedure, including measures to reduce risks of potential bear-human conflicts.
    10. Wildlife collisions protocol, including protocols for annual monitoring and reporting of collisions between vehicle used in respect of the project and moose, black bear, grizzly bear and deer and for the mortality of such wildlife along Highways 37 and 37A.
    11. Traffic and access management plan, including measures to ensure that roads are designed and maintained in a manner that ensures the safety of road users and minimizes the adverse effects on the environment and used in a manner that avoids adverse worker and public safety and health effects and minimizes adverse social and environmental effects.
    12. Closure and reclamation plan, including defining the requirements for closure at site, developing approaches to address these requirements and incorporating them into the mine plan and schedule.

The above recommendations apply to the Project as described in British Columbia's Certified Project Description.

Assessment of effects referred to in Chapter 10, paragraph 8(f) of the Agreement

In accordance with Chapter 10, paragraph 8(f) of the Agreement, I have determined that the Project may result in both adverse and positive effects on the existing and future social and cultural well-being of Nisga'a citizens, and contribute to modest improvements in their existing and future economic well-being. I have established the recommendations set out below in relation to this assessment:

The proponent should prepare and implement the following strategies and programs referenced in the Comprehensive Study Report including measures that may manage effects on the economic, social, and cultural well-being of Nisga'a citizens who may be affected by the Project, in consultation with the Nisga'a Nation:

1. Labour Recruitment and Retention Strategy;
2. Employee Assistance Program;
3. Workforce Transition Program;
4. Procurement Strategy; and
5. Workforce Training Strategy.

Recommendation under Chapter 10, paragraph 8(h) of the Agreement

In accordance with Chapter 10, paragraph 8(h) of the Agreement, and considering the Comprehensive Study Report and the assessments of effects referred to under paragraphs 8(e) and 8(f), I recommend to Fisheries and Oceans Canada, Natural Resources Canada and Environment Canada that the Project should proceed.

Taking into account Recommendations consistent with Chapter 10, section 9 of the Agreement

In accordance with Chapter 10, section 9 of the Agreement, I recommend that Fisheries and Oceans Canada, Natural Resources Canada and Environment Canada take into account the recommendations of the environmental assessment when exercising their decision-making authorities in relation to the Project.