MD&A Disclosure

MD&A Disclosure on Community, Environment, Health & Safety

Each quarter, Avalon includes a Community, Environment, Health & Safety section in its Management Discussion and Analysis of the Financial Statements. Following is the latest quarterly filing, link below to previous quarterly disclosure.

Following is the latest excerpt from the nine months ending May 31, 2011

During the quarter ended May 31, 2011 (the Quarter), Avalon continued its community engagement work in Lutsel K’e, Fort Resolution (Deninu Kue First Nation and Fort Resolution Metis Council), Yellowknife (YKDFN, Tlicho First Nations and North Slave Metis Association) and Hay River (Katlodeeche First Nation and Hay River Metis Council). Continuing community engagement is focused on development of partnerships and facilitating employment and business opportunities for First Nations members. 

During the Quarter, Avalon entered into a negotiation agreement with the Deninu Kue First Nation (“DKFN”), and subsequent to the end of the quarter signed a similar agreement with the Lutsel K’e Dene First Nation (“LKDFN”).  This type of initial agreement (often referred to as a memorandum of understanding (“MOU”)), is done in order to frame the negotiations toward an impacts and benefits-type agreement. Avalon has commenced negotiations on Accommodation Agreements, with the LKDFN, YKDFN and DKFN, with the objective of concluding these agreements in 2011.

Avalon has placed a high priority on its performance with respect to health and safety at Thor Lake.  During the three months ended May 31, 2011, there was one lost time accident at the Nechalacho Project, involving an injury to a finger due to improper tool use. A second similar incident did not result in lost time. Both incidents involved a driller helpers employed by the contract drilling company. Since the summer drilling program commenced, there was one lost time accident at the site when the Cook stumbled on uneven ground around the camp suffering a sprained ankle requiring medical attention.

There was a Land Use inspection conducted during the quarter by the Indian and Northern Affairs Land Use inspector, near the conclusion of the winter drilling program with no significant issues to report. The inspector was pleased with the Company’s activities but noted some minor issues where further cleanup of hydrocarbons was required, when small amounts became visible during snowmelt. Avalon completed all necessary actions. In addition, the inspector gave permission for cutting a limited number of trees on the approach to the airstrip to increase safety for takeoff and landing. . All land use inspection reports have been filed on the Company’s website in the CSR/Sustainability section.

The Developers Assessment Report (“DAR”), (otherwise known as an Environmental Impact Statement), was submitted to the Mackenzie Valley Environmental Impact Review Board (MVEIRB) during the quarter on May 20, 2011, just three months upon receiving the final terms of reference from MVEIRB. A copy of the DAR can be found on MVEIRB’s public registry at www.reviewboard.ca.

Avalon also received a new land use permit from the Mackenzie Valley Land and Water Board (“MVLWB”) covering its current activities at the site, as the existing permit was scheduled to expire on July 4, 2011. The new land use permit was issued by the MVLWB on June 23, 2011, for a period of 5 years beginning on July 5, 2011.
 

Link to previous quarterly MD&A disclosure on Community, Environment, Health & Safety