Province of British Columbia

MINISTRY OF ENERGY AND MINES

Report of Inspector of Mines

(Issued pursuant to Section 15 of the Mines Act)

Inspection No.:

56836.00

File:

18050-02-09

Mine No.:

0100079

Permit No.:

M-241

Emp/Cont:

55.
00
0.0
0
0.00

Orders

H&S:

Stop Work:

0.00

RECL:

2.00

Inspection Report
NAME OF MINE

Yellow Giant Gold Project

LOCALITY

OWNER/OPERATOR

Banks Island Gold Ltd

ADDRESS

300-1055 W. Hastings St.

Vancouver BC V6E 2E9

MANAGER

Ben Mossman

AREAS INSPECTED

Yellow Giant Mine site (M-241) and

exploration areas under MX-1-862

Persons Contacted
MANAGEMENT

Ben Mossman, Dirk Mechert, Allegra Cairns

OHS COMMITTEE
WORKERS
A copy has been forwarded to the Joint Occupational and Safety Committee and the union as applicable. The Mine manager shall complete the right hand column noting
specific corrective actions taken by a specified date, and return a copy to the Inspector within 15 days of receiving the report. Further the manager shall post a copy to the
bulletin board, to be replaced by a copy showing the managers response. In this document, Code means Health, Safety and Reclamation Code for Mines in British Columbia.

INSPECTION SUMMARY

MANAGERS RESPONSE OF ACTION TAKEN

An inspection of the Yellow Giant Mine (M-241) and Yellow

Giant Gold exploration sites (MX-1-862) was conducted on July
15, 2015 by Andrew Rollo (Sr. Environmental Geoscientist),
MEM Vancouver, and James Robinson (Inspector of Mines),
MEM Smithers accompanied by Ben Mossman of Banks Island
Gold. Allegra Cairns and Dirk Mechert were also contacted
during this site inspection.
This inspection was conducted in response to a July 9 site
inspection that resulted in shutdown orders being given for the
Bob and Discovery zone exploration sites of the (MX-1-862).
The objective of this inspection was to determine compliance
with the existing M-241 permit.
During this inspection, it was noted that ore from the Discovery
Zone was being processed at the Yellow Giant Mine Process

Andrew Rollo
Senior Environmental Geoscientist

Signature Inspector of Mines

Suite 300-865 Hornby Street, Vancouver, BC V6Z 2G3

Address

Date of Inspection:
Copies To

Signature Manager

2015/07/15

Dated:

, 20

Report of Inspector of Mines Page 2 of 4

INSPECTION ORDERS

MANAGERS RESPONSE OF ACTION TAKEN

Facility. According to the mine manager, ore from all

exploration sites (i.e. Bob, Kim, and Discovery) has been
processed at the Yellow Giant Mine since issuance of M-241 on
March 4, 2014. The M-241 permit currently only authorizes
processing of Tel Zone ore.
Permit M-241 authorizes the storage of dewatered backfilled
Tel Zonetailings to mined out stopes in the underground at the
Tel Zone. According to the Mine Manager (and the 2014
Annual Reclamation Report), tailings were discharged to the
collapsed underground workings at the Bob Zone from August
2014 to approximately July 2015. Due to an improper seal of
the historic adit portal and recent heavy rains, tailings and
process water were released to the receiving environment. This
observation during the July 9 inspection resulted in the
shutdown of the Bob Zone exploration site. During the July 15
inspection, no additional tailings were being discharged to the
collapsed Bob Zone workings but seepage to the receiving
environment was observed from the historic adit portal. It was
not possible to observe the historic portal plug directly as it had
been covered by a large mound of waste rock. At the time of
the July 15 inspection, dewatering of the collapsed Bob Zone
workings was being conducted to help reduce the amount of
seepage through the historic adit portal.
Currently, water from the Bob Zone is being pumped to the
Yellow Giant Mine site for management, treatment, and storage
in the underground workings of the Tel Zone. Permit M-241
only authorizes management of water generated at the Yellow
Giant Mine Site.
During the inspection it was observed that tailings were being
placed in an uncovered stockpile adjacent to the process plant.
Permit M-241 authorizes tailings to be stored temporarily on
surface for a maximun of four weeks in a covered facility.
Given that Bob was no longer useable for tailings disposal and
the M-241 underground (Tel Zone) was being used for water
storage and unable to accept tailings backfill, there was no place
to store tailings generated at the Yellow Giant Mine within four
weeks of their creation. The Mine Manager indicated that
backfill in the M-241 underground was not possible until an
engineering study was completed. No date was provided for
delivery of this report.
Numerous induced sediment releases off the mine site were also
observed during the July 15 inspection. The most noteable of
which originated from a seep on the southwest edge of the
Yellow Giant Mine site pad. A sump had been constructed to
collect some of the site pad seepage, but water and sediment
was flowing directly to the receiving environment at this
location. No reports of induced sediment transport off the mine
site has been previously reported to MEM, as required by the
M-241 permit.

Date of Inspection

2015/07/15

Initials

__________

(Inspector)

Initials

_________

(Manager)

Report of Inspector of Mines Page 3 of 4

INSPECTION ORDERS

MANAGERS RESPONSE OF ACTION TAKEN

Based on the observations of permit M-241 non-compliance and

the belief that these non-compliances will have a detrimental
environmental impact, a shutdown order was issued for the
Yellow Giant Mine (M-241) at the completion of the July 15
inspection. That shutdown order stated that no work is allowed
at the Yellow Gaint Mine site until updated water management,
tailings management, and erosion and sediment control plans
are reviewed and approved by the Chief Inspector.
INSPECTION ORDERS

HSRC Part:10.1.11

Departure From Approval

During the inspection numerous departures from the Mines Act

permit M-241, dated March 4, 2014, were noted, including:
tailings management, water management, ore processing, and
disturbances outside the currently permitted M-241 boundary.
None of these departures have been approved by the Chief
Inspector. An updated mine plan, including all relevant
information outlined in part 10.1.4 of the Health Safety and
Reclamation Code for Mines in BC, is required for review and
approval by the Chief Inspector before operations can resume at
the Yellow Giant Mine. A Mine Review Committee will be
convened to review the information provided.
Pursuant to the M-241 shutdown order issued July 15, Banks
Island Gold provided updated water management and tailings
management plans on July 20 for review and approval by the
Chief Inspector. A preliminary review of these plans indicate
that they rely on numerous Mines Act permit departures that
have not been approved. An amendment of the M-241 permit is
required in order to authorize Yellow Giant Mine to operate as
proposed in these plans.
HSRC PART:10.5.7

Materials Inventory

While a brief summary of the materials inventory was included

in the 2014 Annual Reclamation Report, observations at site
indicate that insufficient detail was provided to fully understand
what materials are stored where at the mine and exploration
sites. The manager must provide an updated materials
inventory, prepared by a qualified professional with experience
in mine waste characterization and management, outlining the:
- Composition, mass, volume, surface area, and storage
locations at both the mine and exploration sites;
- History and timing of excavation of each pile; and,
- Monitoring data and interpretation of these results.
A map, showing the surveyed locations and dimensions of all
waste piles at both mine site and exploration sites, must be
provided with the inventory. This inventory must be provided
by August 17, 2015.

Date of Inspection

2015/07/15

Initials

__________

(Inspector)

Initials

_________

(Manager)

Report of Inspector of Mines Page 4 of 4

INSPECTION ORDERS

MANAGERS RESPONSE OF ACTION TAKEN

PERMIT CONDITION C.1(a)(ii)

The Mine Manager was unable to confirm that an updated
Ground Control Management Plan (GCMP) had been provided
to MEM 60 days after receipt of the original authorization. The
Mine Manager must provide an updated GCMP, as outlined in
M-241 permit conditon C.1(a)(ii) by August 17, 2015.

PERMIT CONDITION C.1(b)

By Augsut 17, 2015, the Mine Manager must provide the most
recent underground inspection report prepared by a qualified
third party prefssional geotechnical engineer.
PERMIT CONIDITION D.3(d)(v)
During the inspection it was observed that dewatered tailings
were being placed in an uncovered stockpile adjacent to the
processing plant. The Manager must immediately ensure and
provide proof that tailings are stored in a covered facility for a
period of time not exceeding four weeks.
PERMIT CONDITION D.4(a)(ii)
Numerous additional sources of water are being conveyed to the
M-241 water management system for treatment, storage and
disposal. As well, additional water management structures near
the soil stockpile were in mid-construction. As required by
permit conditon D.4(a)(ii), the manager must halt all
construction of new water management infrastructure and
provide an updated water management plan to the Chief
Inspector for review and approval in conjunction with the
departure from approval notification required by HSRC Part
10.1.11, above.
PERMIT CONDITION D.5(c)
A number of induced sediment releases were noticed at the
Yellow Giant Mine; none of which have beeen reported to the
Chief Inspector. Two of the most significant sediment releases
observed were related to: discharge from the Yellow Giant
Mine site pad to Unnamed Lake; and, release of tailings from
the Bob Zone underground workings. By August 17, 2015, the
Manager must provide a report to the Chief Inspector outlining
all previously unreported induced sediment releases off site and
ensure that all future releases are adequately characterized and
reported to the Chief Inspector in accordance with permit
requirements.

Date of Inspection

2015/07/15

Initials

__________

(Inspector)

Initials

_________

(Manager)