ENVIRONMENTAL Challenges

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WELCOME!
ENVIRONMENTAL Challenges

See also MINING LAW - Worldwide - Legal Issues/Considerations
http://www.goldminerpulse.com/phpBB3/viewtopic.php?f=2&t=3

MINING - International - Creating a Win-Win Partnership with the Developing World
http://www.goldminerpulse.com/phpBB3/viewtopic.php?f=2&t=11

Reason for Hope
A Spiritual Journey
Hardcover
http://books.google.ca/books?id=B8LyKezUim4C&dq=Reason+for+Hope+Goodall&pg=PP1&ots=rAvVuEeH4B&sig=LYwf6Kw3T7DNplTJnr0yheJf-q4&hl=en&sa=X&oi=book_result&resnum=1&ct=result
By Jane Goodall with Phillip Berman
http://en.wikipedia.org/wiki/Jane_Goodall

More on Vale Inco's eco-efforts
http://www.inco.com/development/community/profiles/sudbury/default.aspx

... All this would seem to suggest a hope-less millennium ahead. Indeed, environmentalists have produced terrifying statistics that "prove" that life on pleanet earth is doomed, statistics computed from the rate at which the rain forests are being destroyed, the greenhouse gases building up, the human population growing, and so on. It is as though we were on a large ship. The lookout in the bow suddenly sees rocks ahead and alerts the crew. Yet it takes time for a big vessel to change course, so all attempts to avert disaster will fail. Of course, it will take time for the ship to disintegrate in the waves. Our world will end "not with a bang but a whimper." It is easy to imagine that such a fate awaits life, as we know it, on Spaceship Earth. Yet despite this, I do have hope for the future - for our future. But only if changes are made in the way we live - and made quickly. We do not, I think, have much time. And these changes must be made by us, you and me. If we go on leaving it to others, shipwreck is inevitable.

My reasons for hope are fourfold: (1) the human brain; (2) the resilience of nature; (3) the energy and enthusiasm that is found or can be kindled among young people worldwide; and (4) the indomitable human spirit. ...

The hope lies in the fact that, finally, we have begun to understand and face up to these problems. ...

... More people are concerned than ever before. Even in China, the government, which has for so long denied that it has any environmental problems, has been jolted into concern by the terrible floods of 1998. Today environmental concerns are freely discussed in the Chinese media. ... After all, humans have accomplished "impossible" tasks before. Would anyone have believed you a hundred years ago if you had predicted there would soon be a man on the moon? a fax machine? a jumbo jet? ...

And there is more good news. Many companies have begun "greening" their operations. ... No African government will sit on "black gold,: so it is important that the exploring, drilling, and pumping be done by the most responsible and ethical companies. And unless you and I support those companies, by purchasing their products, they will never survive in the competitive marketplace.

There are hundreds of similar examples of corporate environmental responsibility. And there are signs everywhere that illustrate a changing attitude. ...

My second reason for hope lies in the amazing resilience of nature if we give her a chance - and, if necessary, a helping hand. There are many success stories. The lower reaches of the River Thames in London were once so poisoned that almost all life was dead; today, after a massive cleanup operation, fish are swimming, and many birds have returned to breed. ...

... For a hundred years the toxic emissions from a nickel mine (in Sudbury, Ont.) had polluted the environment for miles around. ... citizens finally realizing that their health as well as their environment were at risk, had decided to do something about it. The mine had reduced its emissions by 98 percent in about fifteen years. As a symbol of hope, they gave me a feather from one of the peregrine falcons that once again nested there - after being locally extinct for more than forty years. ... (emphasis added)...

There are, in fact, success stories everywhere. ...

It can be argued that changes of this sort will lead to major social injustices. Meat farmers, for example, would need alternative livelihoods. The same is true for trappers and miners and those in the animal laboratory industry, and so forth. I am not, for a single moment, denying the complexity, the interrelatedness, the social and political implications of these issues. But we cannot condone forever the pursuit of unethical, cruel and destructive behaviors simply because to end them will create problems: would anyone advocate the continuation of concentration camps in order to ensure the jobs of those in charge? ...

I truly believe that more and more people are seeing the appeal in the eyes around them, feeling it in their hearts, and throwing themselves into the battle. Herein lies the real hope for our future; we are moving toward the ultimate destiny of our species - a state of compassion and love. ... (From Chapter 15, Hope, pgs. 232-251)

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Canada - Ontario

Environmental Liabilities

There are no environmental liabilities at the Black Fox Mine Site. A bond of C$675,000 has been given to the Ontario Ministry of Northern Development and Mines (MNDM) for site remediation for previous mining activities at the Glimmer Mine in accordance with Ontario Regulation 240/00 for Mine Development and Closure under Part VII of the Ontario Mining Act. (From NI 43-101 Technical Report Apollo Gold Corporation Black Fox Project Timmins, Ontario, Canada Prepared for: Apollo Gold Corporation, April 14/08, p. 26 of 216)

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United States - Montana

The Montana Tunnels operating permit boundary contains 2,124.2 acres with permitted disturbance totaling 1,199.5 acres. The M pit will increase the disturbed area by about 150 acres and the operating permit boundary will be expanded by 260 acres to accommodate the required changes. The current reclamation bond held by the state totals $US 18,368,553. National Fire Insurance Company of Hartford, a unit of Continental Casualty Company (“CNA”), provides $14,987,688 of the total reclamation bonding for the Montana Tunnels mine plan of operations at a deferred bond premium cost of $14 per $1,000 of bonding under a Term Bonding Agreement dated August 1, 2002. The remainder of the bond is posted with real estate ($3,252,168) and cash ($128,697). The amount of bonding for the M pit has not been determined by the Montana DEQ, MTMI has estimated a premium payment of $100,000 per month during the life of the M pit. The permit application for the M Pit was filed in the 2nd quarter of 2004, an Environmental Impact Statement (EIS) is in process and scheduled for completion in November of 2007. MTMI has developed closure plans for the Montana Tunnels Mine and estimates the cost of closure to total $10,317,140. The closure costs for M-pit are estimated to add $8 million to the L-pit closure costs. MTMI has large topsoil (1,900,000 cy) and cap rock (7,500,000 cy) stockpiles to be used for reclamation. MTMI has reclaimed more than 200 acres of disturbed land to date. MTMI does not discharge any water from the site. All process water and storm water is captured in the tailings pond and a fresh water pond for water reuse in the milling process. (emphasis added) (From Technical Report Montana Tunnels Mine Jefferson County, Montana, U.S.A., The Montana Tunnels Mine is a 50/50 Joint Venture between Montana Tunnels Mining Inc., a 100% owned subsidiary of Apollo Gold Inc. and Elkhorn Tunnels, LLC. Richard Nanna March 30, 2007 Jeff Choquette March 30, 2007, p. 10 of 157)

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Mexico

25.6 ENVIRONMENT CONSIDERATIONS

A discussion of bond posting, remediation and reclamation. As yet, a bond is not required in Mexico. Mexican Environmental Norms (Laws) are similar to EPA, Canadian and World Bank criteria. There is a slight difference in attitude to enforcement. Mexican authorities review the project for flaws but do not take any responsibility.

The Feasibility Study was prepared with the above standards in mind and also with the banks newly developed “Equitorial Principles”. Placer Dome was very concerned with the potential for “Acid Mine Drainage” and so is Alamos and M3. The main mineral in the deposit is Pyrite. In fact, the ore is classified according to its average pyrite content; high being over 1.7%.

The Placer Dome Feasibility and the Alamos Feasibility rely on reclamation of the mine dump on a continuous basis while operating, and that which cannot be reclaimed immediately after. Both studies provide for 1 meter of cover to prevent water penetration.

Placer Dome considered mine dump in various areas to the east and south of the pit. Alamos did not prefer these areas as they are close (1.5 km) and upgradiant from the Mulatos River. Instead Alamos decided to put the mine dump in the same drainage as the pit, the Mulatos wash. It too drains into the Mulatos River but is further away. As well, unaffected upstream Mulatos wash runoff water is piped under the dump and around the pit in the Alamos plan.

The heap leach pad is the same as in the Placer Dome Feasibility and will be reclaimed in the same way by placing cover over it, after it reaches maximum height and it’s decontamination by rising. The other concern is the proximity of the village of Mulatos. Placer Dome and Kennecott had provided to move it in their 1997 Feasibility Study, although it was a much debated issue. Alamo has decided to leave it as is, for this Estrella Pit development. The difference is that Placer Dome was planning to mine the “Mina Viejo” area and Alamos is not. The Mina Viejo outcrop is between the village and the Alamos ‘Estrella” pit. ... (-- pgs. 124-125 of 190)

Acid rock drainage (ARD) potential has been identified. Measures to prevent ARD have been incorporated. Mexican norms, World Bank Guidelines and “Equatorial Principles” have been followed.

The nearby village of Mulatos should be largely protected from noise, dust, vibration and fly rock by the Mina Vieja outcrop which will not be mined at this stage. Money is provided for the installation of water, sewer and power to the village. (-- pgs. 16-17 of 190)

The Mulatos River flows northward 1½ km east of the Estrella pit eastern boundary. The pit eastern boundary is the high point of land and so the pit and mine dump area do not drain directly into the Mulatos River they drain naturally into the Mulatos wash. The Mulatos wash (Arroyo) does not flow continuously. It discharges into the Mulatos River several kilometers north of the mine. There is evidence in the Mulatos wash, which will form the pit northwest boundary of some acid drainage. About 70% of the Estrella pit is sulfide ore. Means have been established to contain acid water. These means include capping the waste dump during and after mining and dams and a 48” storm water pipe through the area which will be disturbed. This pipe will bypass the upstream Mulatos wash storm water through the mining area. (From ALAMOS GOLD, INC. and MINAS de ORO NACIONAL, S.A. de C.V. TECHNICAL REPORT, The Estrella Pit Development, Mulatos, Sonora, Mexico, Prepared by M3 Engineering and Technology Corporation, 2440 W. Ruthrauff, Suite 170, Tucson, Arizona USA 85705 and M3 Mexicana Hermosillo Sonora Mexico and Consultants, June 17/04, p. 23 of 190)

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Peru

See also MINING LAW - Worldwide - Legal Issues/Considerations - Peru
viewtopic.php?f=2&t=3&p=78#p78

6.7 Environmental Regulations

The Perúvian Government is reported to be increasingly concerned about the environment and
environmental compliance, especially as regards mining and milling operations. New legislation
is in place (Regulation on Protection of Environment – DSN No. 016-93, with updates made in
2003). According to the available information (source: http://www.minem.gob.pe), The General Mining Law of Perú can require concession holders to prepare:

• an Environmental Evaluation (Evaluación Ambiental, or EA) for mining exploration programs;

• an Environmental Impact Assessment (Estudio de Impacto Ambiental, or EIA) if either renewed mining or milling activity is to take place or existing operations are to be expanded by more than 50%;

• a Program for Environmental Management and Adjustment (Programa de Adecuación y Manejo Ambiental, or PAMA), which establishes a company’s environmental compliance plan for mining and milling operations; and

• a Mine Closure Plan (Plan de Cierre), prior to mining construction and operation.

6.7.1 Environmental Evaluation Plans

The environmental requirements for mining exploration programs are divided into classifications A, B & C. Classification A covers general exploration activities and requires no prior authorization. Classification B requires an application with payment of US$50 prior to drilling up to 20 holes within a 10 ha area. Classification C covers mining exploration programs with more than 20 holes, exploration areas of more than 10 ha and/or the construction of more than 50m of tunnels. This requires the submission of a suitable EA for approval (or disapproval) by MEM. The Ministry is required to approve/disapprove an EA within 20 days of its submission. If a response is not received within 20 days the EA may be assumed to be (automatically) approved.

6.7.2 Environmental Impact Assessments

When applying for a new mining or processing concession, to increase the size of its existing
processing operations by more than 50% or to execute any other mining project an EIA must be
submitted to MEM:

• the purpose of an EIA is to identify environmental problems that might arise as a result of
mining or metallurgical activity (an EIA is prepared ahead of a PAMA);

• an EIA must indicate the applying company’s intention to spend at least 1% of annual sales
on environmental expenditures;

• the Ministry is required to approve/disapprove an EIA within 45 days of its submission; and

• if a response is not received within 45 days the EIA may be assumed to be (automatically)
approved.

6.7.3 Program for Environmental Management and Adjustment

A PAMA establishes a company’s environmental compliance plan. Included within the scope of
environmental compliance are considerations of the impact on the environment of mining
disturbance, capital investments in environmental control, monitoring systems, waste management control and site restoration. The Ministry is required to approve/disapprove an EA within 60 days of its submission. If a response is not received within 60 days a PAMA may be assumed to be (automatically) approved. If the Ministry or an interested party can show just cause within the 60 day period, a PAMA may be modified during the first year after its submission.

6.7.4 Mine Closure Plans

The Perúvian Government enacted its first Mine Closure Law in October 2003; it is unclear as to
whether any amendments have been made. In general terms, the 2003 law sets out the obligations of a company with a mine in operation, as regards rehabilitation, closure and postclosure activities. Included within this scope is the requirement for mining companies to prepare and submit closure plans that define the steps to be taken, included costs, to protect the environment from solids, liquids and gases generated by mining work.

The 2003 law mandates the establishment of an Environmental Guarantee at the early stages of Tthe project, to avoid the possibility of a lack of future funds. Candente should ascertain the aamount and nature of the required guarantees that are probably payable on an annual basis and probably vary with the size of operation (e.g. operations with mill throughputs of less than 500 tpd are deemed small mine operations, the legal and tax requirements for which differ from operations with larger mill throughputs).

6.7.5 Permits

The Cañariaco property does not have any known environmental liabilities. A Class B EA was
conducted by GEMA Consultants (GEMA) for Candente, as required in law when trenching,
drilling or other major work is performed (Currie, 2004). GEMA also conducted a Class C EA,
and obtained a Class C Permit from the Perúvian government, for advanced drilling and
exploration work at Cañariaco (van Egmond, 2006).

Environmental baseline studies have started and Candente has a permanent salaried Perúvian employee to manage the work. A social and environmental impact assessment study framework is being prepared, which studies will include the determination of the geochemical characteristics of the waste and ore grade rock, assessment of the localized mine area for a potential water supply and social and community relation studies. Once these studies are completed, to levels deemed suitable by Candente and in accordance with the requirements of the Equator Principles, aa process of obtaining all the required environmental, construction and mining permits will be undertaken. The specific permit requirements and durations for the various activities identified to date for the start of construction and mining operations are summarized below.

Permitting Requirements

Environmental Studies and Permits (EIA)
To carry out the studies : 6 months
To obtain the approval from MEM : 6 months
Mining Plan and Closure Plan
To make the plans : 3 months
To obtain the approval from MEM : 3 months
Mining Operation Certificate (COM)
To obtain the approval and certificate from MEM : 1 month
To obtain permits to use the superficial land
Easement by Agreement
Negotiation and signing the agreements with the owners : 3 – 6 months
Procedure of real servitude
(in case easements by agreement are not obtained) : 9 – 15 months
Municipality Permits to Construct
To prepare the documentation : 3 months
To obtain the permits : 3 months
Labour Permits
To obtain labour permits
(including preparing of documentation) : 3 months
Permits to Use Water
To prepare the documentation : 3 months
To obtain the permits from Ministerio de Agricultura
(Ministry of Agriculture or “MINAG”) : 4 - 6 months
Permits to Build Roads
To prepare the documentation : 4 - 6 months
To obtain the permits : 4 - 6 months
Benefit Concession
(necessary to process the mineral, including plant and heap leach site)
To prepare the documentation and obtain the concession : 12 months

(From Candente Resource Corp. UPDATED TECHNICAL REPORT AND PRELIMINARY ECONOMIC ASSESSMENT ON THE CAÑARIACO NORTÉ PORPHYRY COPPER PROJECT STARTER PIT OPTION DEPARTMENT OF LAMBAYEQUE PERU Peruvian (NTS) Map Area AMENDED VERSION -- MINEFILL SERVICES, INC. Suite 200, 595 Howe Street, Vancouver, BC, V6C 2T5 Telephone: (604) 683-3855 Fax: (604) 683-3865 -- 109 pgs -- 2007-04-26 , pgs. 20-23 of 109)

7.6 Socio-Economic Impact

Candente employed between 300 and 350 people on a rotational basis during its 2004, 2005 and
2006 drilling programs (average about 40 per day from 17 different local communities).
Candente also contributes to the self-sustaining social needs of the local communities, including medical facilities and supplies for schools. Pro-active environmental protection plans have been put in place, covering issues such as monitoring water in local creeks and rivers, replacing soil and replanting trees after every drilling program. Meetings are held in the surrounding towns and villages where independent professionals explain to the community about exploration and mining activities and how they would recognize contamination problems that might arise. (emphasis added) In recognition for the work outlined, Candente was selected as the “Best of the Year for 2005” in the mining sector by the Superior International Council of Iberian Press (Consejo Superior Internacional de Prensa) and awarded the “Fijet America Corporate Excellency 2005 Golden Trophy” The Press Council, formed in 1997, nominates companies annually from eight to twelve business sectors who contribute significantly to the development of Spanish speaking countries. The Superior Council recognized Candente for the advancement of the Cañariaco property, not just as a mining project but also for its potential to be very significant to the development of the Lambayeque Department of Perú, and have stated:

‘We have chosen Candente for their excellent work with local communities and in protecting the environment while advancing the Cañariaco Norté copper project to a tangible reality’.

(Ibid., p. 26)

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Canada - British Columbia

Canadian Geographic
Magazine Subscription
A River to Ruin
Why are Americans fighting so hard to protect British Columbia's Flathead River from a strip mine?
By Jeff Hull
June, 2008
http://www.canadiangeographic.ca/magazine/jun08/feature_flathead_river.asp

See also Flathead River
http://en.wikipedia.org/wiki/Flathead_River

MINING LAW - Worldwide - Legal Issues/Considerations[/size]
viewtopic.php?f=2&t=3

More MINING Lite - The industry featured in the popular media
viewtopic.php?f=2&t=19

The ecological value of the valley - its unparalleled carnivore populations and pristine water - "is too important to jeopardize with irresponsible energy development," says Max Baucus, Montana's senior senator. As chairman of the powerful Senate Finance Committee, he wields a great deal of influence on Capitol Hill. He says he's 100 per cent committed to stopping" industrial development in the Flathead. ...

"I don't know if we're going to seek tenure further down the road. Right now the referral process does not include the Flathead. Therefore our plans are to not include the Flathead," says BP (multinational energy producer, formerly British Petroleum) http://en.wikipedia.org/wiki/BP spokesperson Anita Perry. "It's up to the British Columbia government, not BP, to decide if the Flathead will every be developed, and today it's just not available."

BP's caginess points out why Baucus and others on both sides of the border feel that eventually, without comprehensive protection for the Flathead, an energy project will become the first in a series of destructive dominoes that would ravage the most ecologically rich, unprotected valley remaining along the Canada-U.S. border. Despite BP's withdrawal, other companies, including one eyeing a mine site within the Flathead River flood plain, appear poised to take advantage of the improved infrastructure that would accompany development of Cline's Lodgpole Mine http://www.clinemining.com/projects/coal/lodgepole.html project.

"We are hell-bent to get it done and are pushing the government to get it done," Cline's chief executive officer Ken Bates said recently in the online magazine Kootenaybiz.com http://www.kootenaybiz.com/. "I'm sorry they are taking so long."

Accordingly, Cline's proposal has ignited a cross-border shouting match and triggered a Canadian Environmental Assessment http://www.ec.gc.ca/ele-ale/default.asp?lang=En&xml=BB58DC68-2AB4-43D2-B1DF-A947297F9DD1. Senator Baucus has implored Secretary of State Condoleezza Rice to ratchet the dispute to a higher level, and U.S. State Department officials confirm that they are, on some unspecified level, planning to engage their Canadian counterparts.

... Premier Gordon Campbell ... would like to recast the argument as one about global warming, piously claiming that climate change, not industrial development, is the biggest threat to the Flathead. But the premier's concern about climate change seems a bit obtuse given that open-pit mining of low-grade coal http://en.wikipedia.org/wiki/Open-pit_mining, which Cline plans to ship overseas to feed the largely unregulated industrial economies of China, India and Brazil, would ultimately generate even more greenhouse-gas emissions.

... faced with the B.C. government's two-zone mining policy - under which provincial lands either are already protected as parks or reserves or are open to mining - (Montana Governor Brian) Schweitzer, Baucus, ... American scientists and a dedicated cadre of Canadian conservationists believe that minding their own business would be tantamount to watching the ineluctible degradation of a unique ecological treasure. ...

... another mining proposal, on Sage Creek, threatened the valley in the 1970s. Canadian and American officials demanded - and won - a referral to the International Joint Commission (IJC) http://www.ijc.org/en/home/main_accueil.htm, which adjudicates disputes about waters that cross the Canada-U.S. border. In 1988, the IJC Study Board, a collection of more than 50 scientists from both countries, unanimously concluded that no mines should be allowed in the Flathead until baseline scientific data were collected and both countries could agree on a "mutually acceptable use of resources." (View the results http://www.ijc.org/php/publications/pdf/ID590.pdf). The Sage Creek mine was never developed[/size]. (emphasis added)

... As far back as 1911, John George "Kootenai" Brown http://pokerpulse.com/news/viewtopic.php?p=3358#3358, the first superintendent of Waterton Lakes National Park, argued it "seems advisable to greatly expand this park" to protect adjacent "breeding grounds" in the Flathead. In the 1950s and 1960s, various government officials lobbied for park expansion into British Columbia. In 1995, when UNESCO awarded World Heritage Site status to Waterton -Glacier http://whc.unesco.org/, the missing piece of pie - British Columbia's Flathead valley - was noted as problematic, too much core area was left unprotected, and expansion was recommended.

In 2002, Prime Minister Jean Chretien tried but could not overcome the B.C. government's resistance to park expansion. ...

Paul Martin's Liberal government made a park feasibility study a condition for the transfer to provincial jurisdiction of other federally owned coal blocks underlying the Flathead. But in 2006, the (Conservative) government of Prime Minister Stephen Harper quietly dropped the feasibility study from the deal. Without it, park expansion proposals are dead in the water. (-- pgs. 42-52)

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Mexico - Zacatecus - Permits - Timing

The writers are not aware of any significant environmental liabilities related to the current Cozamin project. Dispersed tailings from historic operations are present downstream from the current operation in drainages below the mine and below the tailings impoundment. A number of the historic workings have old waste dumps of which some contain sulphides. However, there are no permanent water sources in these arroyos, except for flows derived from activities related to mine dewatering during operations.The veins are characteristically low or moderate sulphidation.

Country rocks hosting the veins contain significant neutralizing capacity, and limestone is one of the main units found east of the Zacatecas area, so if necessary neutralizing material would not be expensive to obtain. Baseline environmental studies and evaluation of the tailings area have been conducted, and surface and subsurface water quality monitoring are ongoing. These will be used to develop operational strategies for management of site waters and historic wastes. (emphasis added)

6.5 Environmental and Permitting Considerations and Activities Highlights

Highlights of Capstone’s environmental and permitting activities (see section 25 for details) include:

• Capstone retained J.L. Hardy, P.Geo., and principal of Nimbus Management Ltd. of Vancouver, B.C. to oversee environmental impact and permitting requirements.

• In February 2005, Capstone commissioned Clifton Associates Ltd. of Guadalajara, Jalisco, Mexico to complete the necessary environmental assessment to support submission of the MIA (Environmental Impact Assessment), ETJ (Change of Land Use) and ER (Risk Assessment) for an expanded Cozamin mine project.

• Capstone submitted its MIA for the expanded Cozamin mine project on July 20, 2005. The MIA “dictamen”, valid for ten years, outlying required terms and conditions was received August 29, 2005.

• Capstone submitted its ETJ for Phases 1 and 2 of the tailings dam expansion on the 27th of June 2005, and received its dictamen February 14, 2006.

• Capstone submitted its ER in December 2005 and received its dictamen on the
29th of August 2006.

• Capstone received its operating permit (LAU) from SEMARNAT in October 2006.

• The MIA for the expanded operation was approved by SEMARNAT in April 2007 and has an operational term of 10 years.

• In September 2007 Capstone initiated participation in the Mexican government
sponsored environmental audit program.

(From Technical Report on the Cozamin project for Capstone Mining Corp., Zacatecas State, Mexico Dec. 31/07, p. 16 of 195)

Contact info:

Clifton Associates, Ltd. Natural Environment S.C.
http://www.cliftonmexico.com.mx/
Florencia 2280
Col. Providencia
Guadalajara, Jalisco
Mexico
44620
Phone: +52 33 3642 5735
Fax: +52 33 3642 5735
Contact:
I.B.A. Epitacio Robledo Amezcua, Coordinador de proyectos
Bíol. Guillermo Gómez Romero, Director de Ingeniería Ambiental
Ing. Ignacio Jiménez López, Sistemas de Información Geográfica
Ing. Zinnia Ron Rodríguez, Coordinador de proyectos
Ing. Luis David Rizo Decelis, Coordinador de proyectos

Environmentally, the main challenge to the mine will be to ensure tailings remain oxygen deficient to ensure no acid generation and subsequent metal dissolution. Tailings are sent to the dam at a ph of approximately 10 (leaving the zinc rougher flotation circuit) and reclaim water ranges from pH 7-8 as a result of a combination of rain water (pH 6) mine water pH 7.5 and process water pH 10. The mine has removed historic spills downstream of the tailings dam and installed a small grouted catchment dam to ensure any seepage is returned to the dam and not allowed to percolate through old tailings. There are no waterways downstream of the mine property, and only small local agricultural water ponds exist, limiting any potential impact. The company has purchase the surface land needed for the ultimate tailings dam (+10 million tonne capacity) as well as a buffer zone to limit impact to any surrounding communities and to provide space between the growing city of Zacatecas and the mine site.

The company has filed a closure plan with the Mexican authorities, and this plan is updated and filed on an annual basis. The plan is designed with progressive closure activities during the life of the mine, and final closure at the end of the mine life. Monitoring of both water quality, geotechnical stability of the tailings dam, and successful re-vegetation lasts for 5 years after closure. Progressive closure is unlikely to occur as the major historic clean ups required have been completed under the expansion in 2007. Mine plan modifications have resulted in no waste being transported to surface removing the necessity of periodic waste dump closures. These changes will be addressed in the 2007 year end filings.

The mine has prepared a 5 year mine plan based on the reserves presented in this report. The mine plan exploits only a portion of the measured and indicated resources and none of the inferred resources. Capital associated with the mine plan includes the necessary access to deeper resources to ensure that short term planning does not result in an impact to a longer mine life. (emphasis added) (Ibid., p. 93 of 195)

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Argentina - Puna - Local Gov't - Permits - Historical Monuments

4.3 Environmental Requirements

Exploration programs are required to operate within all normal federal, provincial, and local environmental rules and regulations. This includes proper and environmentally conscientious protection of operational areas against spills, capture and disposal of any hazardous materials, reclamation of disturbed ground, and removal of all refuse.

With over 200 years of mining activity and sporadic prospecting and exploration in the area, the site has undergone moderate to considerable historic disturbance. The ruins of buildings from the Jesuit period (1700s) and from the more recent mining period (1936-1954) lie to the north and over the mine workings and have been designated a National Monument (figure 3). Cardero does not anticipate any need at this time to disturb these historical features. However, Cardero is working in conjunction with the Provincial Director of Anthropology (Direccion Provincial de Antropologia) with the Ministry of Education, Culture and Technology (Ministereo de Educacion, Cultura y Tecnologia de la Provincia de Catamarca) to assure responsible and proper preservation of the site.

Cardero does not anticipate any obligations for recovery or reclamation of historic disturbance. Cardero is also working with the Secretary of Mines (Secretaria de Mineria) and the Provincial Office for Environmental Management (UGAP - Unidad de Gestion Ambiental Provincial) to assure proper and responsible environmental activity. Total disturbance associated with Cardero’s planned exploration will be minimal and there are no known existing environmental liabilities. There are no known wildlife issues. Animal life in the area consists of domestic sheep, goats, llamas, alpacas, and wild vicunyas along with smaller lizards, rodents and a few birds. (emphasis added)

4.4 Permits

All required permits to conduct exploration work are in the process of being issued by the Secretary of Mines, Ministry of Education, Culture, & Technology, and the Provincial office for Environmental Management, Catamarca province. Conduct with respect to the ruins located on the property is monitored by SMGA, a consulting firm based in Catamarca that performs in accordance with all governmental requirements. All necessary permits were issued for the exploration program conducted in 2007 and there are no known permitting issues that could adversely impact exploration and development of Incahuasi during 2008. (From Summary Report on the Incahuasi Gold Project for Cardero Resource Corp., Jan. 20/08, pgs. 11, 13 of 57)

Link to this entry
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Peru - Nazca - Archeological Reserve - Land Tenure

See also Peru - Land Tenure - MINING Law
http://www.goldminerpulse.com/phpBB3/viewtopic.php?f=2&t=3&p=106#p106

4.3 Environmental and Socio-Economic Issues

The mining concession Hanna III (800 ha), and the northern 600 ha of Hanna I (900 ha), (total
hectares 1,400 ha) lie within the “Nazca Archaeological Reserve http://en.wikipedia.org/wiki/Nazca”. It is unlikely that a mining licence eventually would be granted over this area. However, these hectares lie at the northern extremity of the Carbonera Dune Field, and would not constitute a significant loss to the prospectivity of the Carbonera Dune Field as a whole.

There are no populated sites within the confines of the Iron Sands Project properties. ...

The local economy is very poor, and dominated by agriculture and animal husbandry in the river valleys where irrigation is possible. The dune fields constitute hostile terrain and are generally unvisited.(From Technical Report on the Iron Sands Project: The Pampa El Toro, Carbonera and Tanaca Dune Fields, near Nazca, southern Peru for Cardero Resources Corp., Dec. 15/07, p. 11, 14 of 61)

A project scoping study as well as concentrator-melter-slag recovery commercial preengineering effort are planned to proceed in parallel with the melting test. The objective of the scoping study and pre-engineering effort will be to produce a bankable feasibility study that includes process flow sheets, equipment lists and budgetary cost estimates for the Project. In tandem with these tests, a mineral resource estimate will be completed by SRK consulting engineers in South Africa. Hydrogeological studies will be completed to determine if sufficient water is available to support on-site processing needs. Base line studies and discussions with local communities will be initiated as soon as possible. A work programme based on the recommendations listed above would cost somewhere in the range of US$ 2.5 to 3.5 million, and could be completed, subject to equipment and contractor availability, within a 16 month period. (Ibid., p. 57 of 61)

Note: According to Wikipedia http://en.wikipedia.org/wiki/Nazca, "Since 1997, Nazca has been the location of a major Canadian gold mining operation. The people who were living on the land for the previous 2000 years did not have title to the land so they were displaced without legal problems. Since then there have been some attempts to legalize poor citizens' ownership of their land and their fixed property, in response to Hernando de Soto http://en.wikipedia.org/wiki/Hernando_de_Soto_%28economist%29 's research on the poor. ... Between 1988 and 1995, he and the Institute for Liberty and Democracy (ILD) were responsible for some four hundred initiatives, laws, and regulations that changed Peru’s economic system.[6]

In particular, ILD designed the administrative reform of Peru’s property system which gave titles to more than 1.2 million families and helped some 380,000 firms which previously operated in the black market to enter the formal economy.[7] This latter task was accomplished through the elimination of bureaucratic red-tape and restrictive registration, licensing and permit laws that made the opening of new businesses very time-consuming and costly."

GoldMinerPulse will continue to monitor land tenure issues in Peru. Please check our MINING Law link listed above for updates.

Link to this entry
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Mexico - Baja - National Parks - Unique Habitat

The Picale Property occurs within the national boundaries of the Valle del Los Cirios Natural Park http://www.fpif.org/images/irc/33/368.jpg, which was set up to protect the Cirios cactus http://lh3.ggpht.com/_KMJW-QyWCjM/Rgkbj8byUzI/AAAAAAAAACc/KMGt3_ATypY/DSC_7520.JPG, a species unique to the central part of the Baja Peninsula.

Written approval was obtained from the Mexican authorities for the 2006 drill program at Picale. The guidelines and conditions were followed during all phases of the program. (From Diamond Drill Report on the Picale Project Baja California Norte IOCG (Alisitos Project) Baja California Norte, Mexico, for Cardero Resources Corp., Jan. 5/07, p. 7 of 58)

Link to this entry
http://www.goldminerpulse.com/phpBB3/viewtopic.php?f=2&t=12&p=111#p111