Vancouver — The Idaho Conservation League has filed a complaint alleging that a subsidiary of
The claim alleges that Twin Mining subsidiary Atlanta Gold allowed drainage from a historic underground adit to discharge into Montezuma Creek. The adit was originally driven in 1917.
Atlanta Gold took over the historic mine property in 1985 and has since taken numerous steps to remedy past deficiencies as part of a broader effort to permit a new mine facility on-site.
The company voluntarily constructed a settling pond to clarify the discharge water from the adit. As standards changed over the years, Atlanta Gold upgraded the facilities with the co-operation of the Environmental Protection Agency and the U.S. Forest Service. In 1997, for example, the company carried out upgrades that included excavating sediments, segmenting and relining the pond, and adding aeration to enhance water quality. Earlier this spring, the company installed a water-treatment facility for the historic mine drainage.
Atlanta Gold says it will “vigorously contest” the allegations made by the Idaho Conservation League.
Twin Mining is looking to develop the wholly owned Atlanta project into an open-pit, heap-leach mine by 2006, and expects to complete a draft Environmental Impact Statement (EIS) for the project later this year.
Production is estimated at more than 100,000 oz. gold annually at cash costs of about US$188 per oz. The mine life is estimated at between seven to 10 years, and capital costs are estimated at US$37.9 million.
At last report, the project hosted total proven and probable reserves of 13.6 million tons grading 0.06 oz. gold and 0.16 oz. silver, with a waste-to-ore stripping ratio estimated at 3.39-to-1.
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