Kinross (now Porcupine Gold Mines) Agreement,Timmins

Kinross Gold Corporation was interested in the property area of the former Hollinger Mine and McIntyre Mine after their current owner, Royal Oak Mines Inc., went into receivership in 1999.

However, there was a subsidence liability of about $40 million on the former Hollinger and McIntyre minesites. The receiver wanted to keep all the former Royal Oak properties together including properties with liabilities and highly prospective properties.

The successful bidder on the property, Kinross, sought and received an agreement for co-sharing of liabilities with the provincial government, through MNDM. The Government and Kinross developed a co-funding formula. Both partners would split the initial $5 million in expendiitures 50:50 and MNDM would cover the next $10 million in expenditures. Kinross would be liable for expenditures thereafter.

Rehabilitation priorities and work plans are co-ordinated by a joint steering committee. As well, Kinross had to submit closure plans for sub-sites and protect against trespasser concerns.

Subsequently, there have been several changes in ownership of the property area. The current owner is Porcupine Gold Mines (PGM) (51% held by Goldcorp Canada Ltd. and 49% held by Goldcorp Inc.).

Work Completed to Date

Up to March 31, 2008, $8.14 million have been spenton rehabilitation projects on the subject properties, with MNDM contributing $5.64 million and PGM $2.5 million, as per the agreed-upon funding formula.
Over a dozen shafts and raises capped with reinforced concrete.
Over a dozen stopes filled with volumes varying from as little as 100 tonnes to over 40,000 tonnes.
Nine large stopes capped with reinforced concrete.
Dozens of investigations and geo technical studies of varying magnitude to assess the risk of mine hazards.