#1CASINO Yukon Presentation May 2013#2CASINO Agenda and Introductions 1. Introduction and Project Overview - Paul West-Sells, President, Casino Mining Corporation 2. Video Presentation 3. Mine Closure - Greg Smyth (Knight Piesold) 4. Fish and Aquatic Resources - Rick Palmer (PECG) 5. Terrestrial Resources - Graeme Pelchat (EDI) 6. Socioeconomic Program - Paul Mitchell-Banks (AMEC) 2#3CASINO YESAB Proposal Technical Team Knight Piésold CONSULTING → Lead - Environmental Consulting Firm amec EDI LORAX ENVIRONMENTAL P mê PALMER ENVIRONMENTAL CONSULTING GROUP INC. Feasibility Study Lead Socioeconomics - Lead Terrestrial Program (wildlife, etc.) Geochemistry Aquatic program (water quality-fisheries) Associated Engineering Road design BergerABAM Power supply 3#4CASINO Introduction What is Casino? • Casino is the key project being developed by Casino Mining Corporation subsidiary of Western Copper and Gold Corporation, based in Vancouver, B.C. Casino Mining Corporation is committed to: Safe, ethical and socially responsible development Enhancing benefits to nearby communities and the Territory - 4#5CASINO History of the Project First mineral claims on the property filed as early as 1917 • Since that time, there has been significant exploration and History and Location Alaska development of the project Location of the Property • • 300 km northwest of Whitehorse, 115 km west of Pelly Crossing Located within traditional territory of Selkirk First Nation Road access will fall within traditional territories of Selkirk and Little Salmon/Carmacks First Nations Burwash Landing Gulf Of Alaska 50 Beaufort Sea Alaska Casino Yukon .Inuvik Fort McPherson Yukon Dawson Casino Carmacks Elsa Mayo Pacific Ocean Northwest Territories Alberta British Columbia Vancouver Seattle Washington Northwest Territories Minto Faro Tungsten Whitehorse Haines Junction Carcross Teslin Watson Lake Atlin Haines Skagway 100 km Cassiar British Columbia Fort Nelson 5#6CASINO . • Planned operation is for 22 years Will employ ~600 people annually Proposed Mine Plan Conventional open pit, truck and shovel mine Combined flotation mill and cyanide gold heap leach same processes as Minto and Brewery Creek mines The mill will process an average of 125,000 tonnes per day 969#7CASINO The mine will produce a copper/gold concentrate, a molybdenum concentrate and gold doré Production These concentrates will be shipped to overseas smelters to be turned into metals Where is Copper . used? Electrical • Plumbing Appliances Where are Gold/silver used? Jewelry Coins Electronics ● Where is Molybdenum used? Steel hardener Lubricants High-temperature metal alloys 9999 9999 FINE GO GOLD ΟΣ OR PUR 7#8CASINO Construction • Occurs over four years Construction Plan . A total of $2.5 billion in capital costs Requires significant construction labour with 1,000 people employed per year The construction team will: • ● ● Use best practice design solutions for the construction of each facility Use sound environmental design Adhere strictly to safety standards and regulations 8#9CASINO Site Plan SUPERGENE OXIDE ORE STOCKFILE LOW GRACE CRE STOCKLE • Pit, minesite and tailings all in close proximity All in one drainage basin - away from Yukon river Proven conventional technology to manage tailings and waste: • Potentially acid generating material flooded Industry standard best practice • • Mt. Milligan Huckleberry POTENTIAL HA WASTE STORAGE ARCA Entube Pit Minesite LOW BRACE LORE STOCK LE GOLD EXTRACTION PLANT LOW GRADE CRE STOCKPILE, LAHT SITC Poland WASITE STORAGE AREA FINAL WEST EMGANAMENT CREST EL.T Tailings FINAL CRESTEL. THE CRECT GASCHMENTAREA METAL LEACHING MASTE STORAGE ARDA BAG MASTE 'STORAGE AREA "ENORABLE AREA. 6#10CASINO Power Plant • • • • 144 MW Natural Gas Power Plant Natural Gas sourced as LNG from Ft. Nelson, BC, trucked to site Two gas turbine driven generators with heat recovery boilers Combined cycle configuration results in efficient, low emissions power generation LNG storage facility at the Minesite GASNOR Naturgass-ren energi for et bedre miljet www.gamer.no LNG STORAGE FACILITY IN MOSJØEN, NORWAY 10#11• • • • CASINO Freegold Road Extension Access to site is by 132 km extension of the Freegold road Upgrades to the existing Freegold Road Road extension follows the old Casino trail Two lane, gravel road Pelly Crossing CASINO Carmacks 11#12CASINO • • • • $35 million spent 2007-2012 $8 million budgeted for 2013 Completion of YESAB application key task for 2013 Regular meetings with regulators, YESAB, Yukon Government Departments Continuing meetings with First Nation Governments and communities Status of Project • Measured and conservative plan towards submission of YESAB application Casino Airstrip 12#13● CASINO Schedule Conducted several years of engineering and environmental studies which will continue through 2013 Dates and milestones include: Time Milestone 2007 Environmental baseline studies initiated 2008 Initial Pre-feasibility study 2010 2008-2013 2012 2013-2015 2016 2017 2019 Pre-feasibility study updated Environmental studies, resource evaluation and Freegold Road Extension assessment Feasibility study YESAB assessment and permitting Start of construction Heap leach operation starts Mill operation starts 13#14CASINO Video Presentation May 2013#15Closure Plan CASINO May 2013 Greg Smyth Knight Piésold CONSULTIN#16CASINO Objectives for Mine Closure Established and proven technologies are being used in the reclamation and closure plan Physical stability of tailings dam Protection of downstream environment Restoration of mine area Consistency with Yukon Government requirements Ensure that long-term active care is not required. Governments will hold sufficient security to ensure this project never becomes a liability to taxpayers no matter what happens. 16#17CASINO . Overview Integrated mine plan based on results of studies of baseline conditions, geochemistry, geotechnical evaluation, receiving environment Pit water is contained and amenable to passive seasonal treatment in wetland Runoff from heap, mill & LGO areas drain to the TMF wetland The discharge water quality is expected to be similar to what it is today 17#18CASINO (11) TMF in Section Position of phreatic surface Acidic Supergene Waste (10) Waste Rock (9) PAG Tailings (8) NAG Tailings (1) (2) Bedrock Foundation Non-reactive Cycloned Sand Non-reactive Rockfill Low Permeability Blanket 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 18#19CASINO Low-flow winter gravity release of pond water into TMF seepage Covered Heap W18 Passive Pit Treatment TMF pond TMF wetland W4 & M18 19#20CASINO Open pit fills up in 50 to 100 years Pit water - preliminary prediction, not acidic (near neutral pH) Seasonal discharge into TMF wetland . • Pit water storage: Oct - April Release to TMF: May - September (5 months) Open Pit 20#21• CASINO Heap Leach Facility Will be operated and closed similar to what was done successfully at Brewery Creek and accepted by YESAB for the Eagle Gold project - SO Heap is located uphill of TMF and closure wetland everything is captured, tested and treated as required in one facility Top soil cover to promote runoff and allow revegetation 21#22CASINO TMF Wetland Construction . Wetland Construction Simple solution used effectively at other mines . More than enough room for the wetlands (50 times greater than necessary) Alternative systems for water treatment, if required, are being examined 22#23CASINO Fish and Aquatic Resources May 2013 Rick Palmer PALMER ENVIRONMENTAL CONSULTING GROUP INC.#24CASINO Legend Proposed Pit Proposed TIA W12 Protor Gulch W43 Adit Discharge Environmental Baseline Studies W21 W20 W16 Dip Creek W15 W6a W6b Canadian Crk Yukon River W1 W3 W2 W14 W12 Britannia Crk Sunshine C W17 W43 W8 W13 Melov Crk Brynelsen Crk W18 W4 W5 W9 Casino Crk Dip Creek R2 Klotassin River 24#25CASINO Surface Water Quality • • What We Know Some streams near the deposit have higher concentrations of aluminum, cadmium, copper, iron, lead and zinc Poorest water quality was noted in upper Casino Creek Several watercourses have metal concentrations naturally exceeding the recommended levels for the protection of aquatic life Photo: Britannia Creek, under-ice sampling Photo: Upper Canadian Creek 25#26CASINO Fish Communities: Fish captured in all creeks, except: • Headwaters of Casino Creek Small tributaries to Casino Creek Headwaters of Canadian Creek Species captured: Arctic grayling, slimy sculpin, burbot, round whitefish and juvenile Chinook salmon Fish and Fish Habitat Arctic Grayling Slimy Sculpin 出 26#27CASINO Fish and Fish Habitat Fish Habitat: · • Fish habitat quality is better in downstream areas e.g., Dip Creek, Britannia close to the Yukon Areas closest to the proposed development in upper Casino and Canadian Creeks were low quality habitat not supporting fish Very limited overwintering and spawning habitat was observed in Casino and upper Canadian Creeks Photo: Upper Casino, September 2008 Photo: Upper Canadian Creek, September 2008 27#28CASINO Fish Habitat Compensation • A No-Net-Loss Plan is required for projects that impact fish habitat An estimated 7,000 m² of fish habitat estimated to be impacted Habitat being impacted is of low quality: Only supports low numbers of Arctic grayling during the summer/fall months SIMMS. Photo: Adult Arctic grayling captured in Casino Creek, August 2011 28#29CASINO Fish Habitat Compensation We have 3 options for compensation that are being explored: 1. Restoration of lower Britannia Creek 2. Development of off-line pond habitat in Dip Creek 3. Creation of new Chinook rearing habitat in lower Britannia Creek 2011/08/09 Photo: Lower Britannia Creek debris jam and flooding Photo: Dip Creek below Casino Creek, facing downstream Photo: Existing and historical Britannia Creek outlets to the Yukon River 29#30CASINO Option 1 - Habitat Restoration Proposed vegetated berm/fill in existing channel to divert all flow into original meandering reach Existing channel allowed to re-vegetate naturally Britannia Creek Yukon River Legend Year 1960 1999 2009 Removal or modification of in-channel debris that provides major flow obstruction 30#31CASINO Option 2 - Habitat Enhancement Proposed small intake structure to divert constant amount of baseflow into off-line channel Existing straight channel to remain unchanged GW3 Proposed berm to shield off-line channel from erosive flows GW2 BRITANIA CREEK MAIN CHANNEL LONGLOBAL Proposed off-line channet with deep pools excavated into floodplain GW1 31#32CASINO Terrestrial Environment May 2013 Graeme Pelchat EDI#33Terrestrial Environment Values CASINO Surficial geology, terrain, and soils • Unique landscape features Vegetation • Rare plants Wildlife . • Species of conservation concern Moose and caribou 33#34CASINO Moose are the most harvested animal in Yukon First inventory was 1987 • Lowest density in southern and central Yukon Collaboration with Yukon Government on regional studies Hunter access is primary concern 315 313 509 Casino 512 314 W 319 Fort Selkirk' 320 522 511 510 613 Moose Minto Freegold Road Extension 523 Freegold Road 529 630 Alshihik Village Stewart Crossing 524 Pelly Crossing 526 Carmacks Mount Nansen Road 402 34#35CASINO Conservation Concern Inventory studies since 1987 • Collaboration with Yukon Government on regional studies Winter habitat is primary concern Klaza Caribou Herd 35#36Casino Fort Selkirk Pelly Crossing Minto Landing Freegold Road Carmacks#37. CASINO Access Road and Wildlife This will be a controlled-access industrial road It is our intention that governments and wildlife management bodies are actively involved in the ongoing access and wildlife management of the road A management plan that addresses concerns about the potential impact of the road on wildlife is important. We expect the plan will include: ✓ Strictly controlled, gated and monitored access; ✓ No hunting from the access road; ✓ Monitoring of wildlife populations; ✓ Traffic management planning to avoid wildlife. 37#38CASINO Socioeconomic Program May 2013 Paul Mitchell-Banks amec#39• • Archaeology & Heritage CASINO Heritage assessments - final work completed this summer with help from the communities Continuing discussions with First Nation governments on the approach they would like to see Interviews and meetings with other land users underway#40CASINO Socioeconomics Socioeconomic work has been carried out over a number of years Numerous visits to communities Numerous interviews with land users, government officials, and people involved in services Wide number of socioeconomic elements/aspects that are studied collectively under valued components 40#41CASINO Socioeconomics Valued Components • • Community Vitality and Wellbeing Government Infrastructure and Services Sustainable Livelihood • Employability • Economic Development and Business Sector Cultural Continuity 41#42CASINO Socioeconomics Project offers a number of economic benefits to the region including: ● Business opportunities during the construction and operation phase Opportunities for business partnerships such as joint ventures Employment Opportunities • Training 1,000 jobs during construction per year 600 jobs per year during operations 42#43CASINO Economic Impacts Total Projected Impacts of the Casino project Construction and Operation Total Projected Life Impacts- 4 years of construction Output (millions) GDP (million) Employment Wages and (FTEs) Salaries (millions) Federal Tax (millions) Yukon Territorial Tax and Royalties Other Tax (millions) and 22 years of operation and Provincial Tax (millions) (Direct, Indirect and Induced) Total Yukon Impacts $8,308 $6,402 23,893 $1,131 $464 $1,810 $36 Rest of Canada $7,388 $3,275 27,480 $1,338 $472 $359 $16 All of Canada $15,696 $9,678 51,373 $2,469 $936 $2,169 $52 Total MNP LLP Member of Praxity, AISOL Global Alliance of Independent Firms BEST EMPLOYERS IN CANADA 2011 43#44CASINO 2050 1111 West Georgia Street - Vancouver, BC, Canada V63 4M3 Toll Free: 1.866.966.9995