A pollution control board in Washington state has revoked water rights and the water quality permit for the Crown Jewel project, reversing eight years of study by owners
The state’s Department of Ecology issued a water quality permit in January 1999, only to have it appealed by environmental opponents.
Crown and Battle Mountain are considering appealing the latest ruling. As an alternative, they are also considering changing the permit application and operating plan to satisfy the board’s objections.
“We remain determined to see that Crown Jewel goes into production,” says Crown President Christopher Herald. “It is important not merely to Crown and its shareholders but to the local economy, which continues to suffer with high unemployment.”
Production seemed likely when, in January 1999, the project received three favourable court rulings. Five months later, congress legislated approval of the plan.
News of the latest ruling sent Crown shares down 33% to US$1.19 on the following day; Battle Mountain dropped below US$2 per share.
Over the past eight years, the project has incurred more than US$80 million in development costs.
At full production, the operation would employ 150 people and produce 185,000 oz. gold annually over 10 years.
Battle Mountain is earning a 54% interest in the property, with Crown retaining 46%.
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