Shunpiking Online Vo.4 No.3 Blue gold more precious than gold, Eastern Shore citizens tell province Contributed by KIM THOMPSON*

SHIP HARBOUR, NS (29 March 2007) - EASTERN Shore residents are worried that a gold mine planned for Moose River will have environmental consequences for communities downstream, along the Eastern Shore. They are asking Nova Scotia's Department of Environment and Labour to reject the project.

On 15 March 2007 DDV Gold Ltd. filed an application to develop and operate an open-pit gold mine in Moose River (www.gov.ns.ca/enla/ea/MooseRiver.asp). The application was open for public input for just two weeks, until 30 March. The mining operation would cover over 265 hectares (650 acres), with an open pit 600m x300 m and 125 m deep (1800ft x 900 ft, 375 ft deep).

The DDV Gold Gold Ltd. is a wholly-owned, New Brunswick registered subsidiary of Atlantic Gold NL - an Australian resource company listed on the Australian Stock Exchange. In June, 2005 its name was changed from Diamond Ventures NL.

Little is known about this foreign operation. According to its prospectus, "The principals of Atlantic Gold Ltd were former directors and executives of Plutonic Resources Ltd, which through the 1990s became one of the largest gold mining companies in Australia. During 1989 to 1998, before its takeover by the large US-based Homestake Mining Company, Plutonic Resources owned, developed and operated six gold mines, each with its own dedicated processing plant, in Western Australia." (Three are still in production, and are now owned and operated by Canada's Barrick Gold Corporation, the largest gold producer in the world, with an unsavoury record in Africa and South America regarding environmental and indigenous rights - Ed.)

The Environmental Assessment Registration Document (EARD) accompanying the application has a number of major flaws, according to Barbara Markovits of Eastern Shore Forest Watch.

The mine project site includes the northeastern boundary of the proposed Ship Harbour Long Lake wilderness area, in the headwaters which feed Lake Charlotte and Ship Harbour. The document states that 550 million gallons of "treated" effluent will be dumped into Scraggy Lake, within the boundary of the proposed Ship Harbour Long Lake Wilderness Area, which is currently being officially assessed for protection by the Province.

Three separate studies within the past six years have determined that Ship Harbour Long Lake Wilderness Area (see map 2.2, below) is an excellent candidate for protected area status. The area has been considered for the protection in the past, and people across the province have been urging it be protected under legislation for close to a decade.

What else they have left out?

"Either they do not know about Ship Harbour Long Lake, or they are deliberately ignoring it," says Markovits. "In either case, this omission alone is enough to make you wonder what else they have left out."

Quite a lot, it seems.

The Moose River runs right through the mine property which also includes wetland areas. Mine effluent will be discharged into the Fish River watershed, resulting in obvious concerns about environmental impact on the whole downstream portion of the Watershed, including erosion, siltation, and the possibility of chemical spills.

The company did not do any environmental assessment on the entire Watershed, residents note, and they are urging the government to stop the project for that reason and that reason alone. This is clearly depicted on the map of the Australian project, reproduced below.

Toxic chemicals such as cyanide and arsenic associated with gold mining, are a major concern for waterways (fish, wells, etc.) downstream. There is no detailed hazardous materials plan, especially in the event of accidents. Sulfuric acid and tons of cyanide would be hauled along Highway 7, through many Eastern Shore communities.

Nor is there sufficient consideration of the enduring footprint of the project, which will continue to impact the Eastern Shore for years, well beyond the projected life span of mining operations.

Token 'public consultation'

"As far as we know, there was no public consultation outside the communities of Moose River Gold Mines and Upper Musquodoboit," says Markovits.

"Residents to the south of the proposed mine site have not been consulted, even though they are likely to be among those most affected by the project because they are downstream from the mine In particular, the communities of Lake Charlotte, Upper Lakeville, Beech Hill and Ship Harbour are concerned about their wells," she adds.

"We need to put the brakes on this project, right now."

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*The Eastern Shore Forest Watch Association is a nonprofit organization dedicated to the long term care of forests. It was established in May 1998 by Eastern Shore residents concerned about current tree harvesting practices in Nova Scotia. Members range from woodlot owners and foresters to local businesses and youth.

For further information
Eastern Shore Forest Watch http://www.forestwatch.ca/
902.889.2629
forestwatches@yahoo.ca

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In their own words

2.0 PROJECT DESCRIPTION

The mine is planned as a surface operation with drill-and-blast, load-and-haul, processon-site type development. Production is estimated at approximately 4,500 tonnes of ore per day with a total ore production estimate over the life of the mine of at least 9 million tonnes for recovery of almost 0.5 million ounces (oz) of gold. Following a 12 month construction and commissioning phase, the mine life is estimated to be six years for production and two years for closure. However, once in production Project economics are expected to allow additional reserves to be identified, developed and mined over a longer period."

2.1 MINE HISTORY

The site is centered on an area characterized by substantial historical (gold) mining disturbance. The official name of the settlement, Moose River Gold Mines, owes its origin to these activities. Following the initial discovery of gold at Moose River in 1866 as many as fifteen shafts and eight pits were established with documented production amounting to approximately 26,000 oz from an estimated 80,000 tonnes of ore. These shafts and pits are located within the footprint of the proposed open pit. Three stamp mills and associated dams to provide power were believed to have been established on Moose River itself in the immediate vicinity of the workings and a substantial quantity of ore is said to have been hauled to Caribou, 10 km to the north, for processing. A revival of the underground mining operations was attempted in the mid 1930s, but this was abandoned following collapse of the main ingress shaft in Easter (April) 1936 and the rescue of two persons trapped underground became a celebrated media event. During the latter half of the 1980s substantial exploration and resource delineation drilling was undertaken by Seabright Exploration Incorporated and in 1989 a 57,000 tonne bulk sample was excavated from an area within the proposed open pit and trucked off-site for processing. A further round of drilling was completed in 1996 by Moose River Resources Inc. DDVG commenced exploration activities on the property in mid-2003 with a staged program consisting of 130 drill holes for 10,500 metres of drilling.

2.3 LOCATION

The Project site is located at Moose River Gold Mines in Halifax County (Figure 2.1). The proposed active surface footprint of the site is approximately 265 ha within a total property area of 400 ha and encompasses the settlement of Moose River Gold Mines, part of a small provincial park and undeveloped forest. It is bounded to the west by the Moose River and surrounded on all other sides by forested land in varying degrees of re-growth due to logging.

2.1 Map of proposed gold mining site

The map clearly shows that the projected site (broken lines) far exceeds the area proposed for environmental assessment (sold lines). Taking into account Point 2.0 quoted above, i.e., "once in production Project economics are expected to allow additional reserves to be identified, developed and mined over a longer period," this area extends westward, over and well beyond the Moose River. The Moose River, and its tributaries, drains the catchment area.

2.2 Map of drainage area

The site is characterized by low relief, hummocky type terrain, with frequent drumlins and numerous lakes, ponds, streams and wetland areas. At the present time the property is occupied by approximately 85% standing regrowth forest, 10% by clear-cut land, and 5% by cleared residential or built-up lots. Figure 2.2 shows the contributing drainage area above the mine site, based on 1:50,000 scale topographic mapping. Given the low relief and complex network of wetland areas, the drainage boundary shown may vary slightly based on actual field conditions. The boundary as shown covers an area of approximately 41 km2. The catchment area is drained by Moose River and its tributaries, from north to south adjacent to the proposed mining area.

Studies within the past six years have determined that Ship Harbour Long Lake Wilderness Area is an excellent candidate for protected area status. 550 million gallons of "treated" effluent will be dumped into Scraggy Lake, within the boundary of the proposed wilderness Area.