Emgold Mining Corporation (TSX VENTURE: EMR)(PINK SHEETS:
EGMCF)(FRANKFURT: EML) ("Emgold" or the "Company") provides the
following update on its Idaho-Maryland Project ("Project"), located
in Grass Valley, California. In follow up to the Company's March 7,
2011 press release, Emgold, through its 100 percent owned
subsidiary Idaho-Maryland Mining Corporation ("IMMC"), has
commenced the filing process for its 2011 Revised Permit
Application with the City of Grass Valley ("City"). The City is the
Lead Agency and responsible for completing the Environmental Impact
Report ("EIR") for the Idaho-Maryland Project, as part of the
California Environmental Quality Act ("CEQA") process.
The Idaho-Maryland Mine was once the second largest underground
gold mine in California and is reported to have produced 2.4
million ounces of gold at an average recovered grade of 0.43 ounce
per ton. The mine contains a NI 43-101 compliant measured and
indicated resource of 472,000 ounces of gold at a grade of 0.28
ounces per ton and an inferred resource of 1,002,000 ounces of gold
at a grade of 0.39 ounce per ton, estimated as of March 1, 2007
(see Emgold's NI 43-101 compliant Technical Report titled
"Idaho-Maryland Mine Project" dated December 8, 2009 at
www.emgold.com or, filed under the Company's profile at
www.sedar.com). A detailed summary of the Idaho-Maryland Project is
also available at www.emgold.com and www.idaho-maryland.com.
Permitting History
Emgold is in the advanced stage of permitting the re-opening of
the Idaho-Maryland Mine and is completing an EIR for the Project
through its 100% owned subsidiary, IMMC. Since 2003 and in
accordance with CEQA, IMMC has submitted to the City conceptual
applications followed by the original 2005 Project Permit
Applications. The City then completed a Master Environmental
Assessment ("MEA") for the Project in 2006. Subsequently, Emgold
completed 2007 Revised Project Permit Applications to take into
account community input obtained through the MEA process. The City
and its consultant, Environmental Science Associates (ESA) then
completed an Initial Study for the Project in 2007 and then
prepared the Draft EIR, which was completed in October 2008. The
public comment period for the Draft EIR was completed in January
2009. The Draft EIR concluded that, of the 15 areas evaluated, the
Company was successfully able to avoid or mitigate potential
environmental impacts of the Project in all areas, but one (air
quality). This is a major accomplishment for any mining and/or
industrial project, regardless of the jurisdiction.
After reviewing the Draft EIR, meeting with various government
agencies to review their comments, reviewing public comments from
the Draft EIR obtained during the public comment period (letters
and public meetings), and obtaining input from the local community
through IMMC's community outreach program, the Company elected in
mid-2009 to modify and clarify the project design contained in the
2007 Project Permit Applications to further mitigate and/or
eliminate potential environmental impacts of the Project identified
in the Draft EIR. Subsequently IMMC commenced technical work to
modify and support changes to its 2007 Project Description.
During each phase of the permitting process IMMC has
participated in local information sessions and held numerous
consultation meetings in order to address stakeholder concerns and
seek community input with its submissions to local, state and
federal agencies.
Current Activity
On April 1st, IMMC submitted a check for US$25,000 to allow the
City to commence the review of its 2011 Revised Permit Applications
to determine their completeness. On April 8th, IMMC submitted
drafts of the Revised Executive Summary, Introduction, and Project
Description. Upon receipt of comments on the aforementioned
submittals, IMMC plans to submit drafts of the Revised Formal
Development Review Application and Mineral Project Application to
the City by April 20th. Three other applications, the General Plan
Amendment, Pre-zone, and Annexation Applications, that make up the
remaining part of the Permit Applications for the Idaho-Maryland
Project, have been deemed by the City to need no further revisions.
IMMC's goal is to have the 2011 Revised Permit Applications
complete and accepted by the City at the end of April, 2011. A
similar review process was completed with the City for its original
project applications and for its 2007 Revised Permit
Application.
Based on the modifications and clarifications IMMC has included
in the Revised Project Description, IMMC anticipates that a Revised
Draft EIR will be required and has been proceeding on this basis
since mid-2009. The Revised Draft EIR will ensure the modifications
and clarifications in the Revised Project Description are fully
analyzed in the EIR. The Revised Draft EIR will also ensure that
the public has the opportunity to comment on the revised Project as
part of the CEQA process. In its letter to the City on April 1st,
IMMC has requested that a Revised Draft EIR be completed and that
the City expedite the decision on the requirement for IMMC to
complete a Revised Draft EIR.
Key Modifications and Clarifications to the Project
Description
The 2011 Project Description modifications and clarifications
reflect the goal of Emgold and IMMC to ensure the Idaho-Maryland
Mine Project is a socially and environmentally responsible project
that will benefit the City, Nevada County, the local communities,
and our shareholders. As the air quality analysis in the 2008 Draft
EIR identified certain impacts to be significant or potentially
significant, the primary focus of the modifications in the Revised
Project Description was to lessen potential air quality impacts
from oxides of nitrogen, random organic gases, respirable dust
(PM10), and greenhouse gas emissions.
IMMC has completed significant work on air quality modeling for
the Project and alternatives to address the air quality impacts
outlined in the Draft EIR. Modeling done by IMMC's air quality
experts has significantly reduced oxides of nitrogen, reactive
organic gases, and respirable particulate matter from previous
estimates contained in the Draft EIR. IMMC's proposed measures
taken to accomplish these reductions include, but are not limited
to, use of a Traffic Management Plan (e.g., van-pooling and
car-pooling) to reduce employee traffic trips and associated air
emissions, use of low NOX burners for combustion of natural gas,
use of emulsion explosives, use of higher tier engines for off road
underground and surface equipment, and use of shaft hoisting
instead of trucking for material handling of ore and development
rock.
To lessen potential impacts to the South Fork of Wolf Creek,
IMMC has eliminated the water treatment plant and the water
discharge to South Fork of Wolf Creek. Instead, a raw water line
will be constructed under East Bennett Road. Dewatering of historic
mine workings will occur at the New Brunswick site, with raw water
transferred through the raw water line under East Bennett Road to
the Idaho-Maryland site mine water detention pond. Any mine water
discharged from the mine water detention pond at the Idaho-Maryland
site will go through a water treatment plant to be located there,
with discharge going to Wolf Creek instead of South Folk Wolf
Creek.
Residents in the vicinity of the mine have expressed concerns
that their domestic wells may be impacted by mine dewatering. IMMC
has included in the project provision of an Nevada Irrigation
District (NID) trunk line along East Bennett Road and feeder lines
on roads proximate to East Bennett Road, to have an alternative
supply of potable water available to hook up to residences should
they be impacted. IMMC has provided a Domestic Well Level
Monitoring Program and Domestic Well Mitigation Program which
outline how domestic wells will be monitored through the life of
the project and how impacts to domestic wells will be mitigated,
should they occur.
IMMC has also provided additional information on the clean up of
historic mine tailings remaining from past mining activities (prior
to 1956) on the Idaho-Maryland site. This clean up was not included
in the analysis completed by the City in the 2008 EIR and IMMC
wants to ensure the positive aspects of this clean up are properly
analyzed as part of the Project.
Additional modifications amd clarifications are contained in the
Revised Project Description. Subsequent to finalization and
acceptance of the 2011 Revised Permit Applications, the application
documents will be made available to the public at
www.idaho-maryland.com, www.cityofgrassvalley.com, and at the
public libraries located in Grass Valley. This should occur in
early May.
Expected Path to Move Forward with the EIR Process
Subsequent to acceptance of the 2011 Revised Permit Applications
by the City, it is expected that the City's consultant, ESA, will
prepare a budget and schedule to complete the EIR process (Revised
Draft EIR and Final EIR). Upon review of this budget and schedule
by the City and IMMC, a decision will be made to proceed with the
work or alternatively obtain competitive bids to complete the
process. Once a decision is made to move forward, the City and IMMC
will complete a revised Reimbursement Agreement. As part of the
CEQA process, IMMC (as the applicant) is responsible for
reimbursing the City and any its consultants for any costs to
complete the EIR.
The City and its consultants will prepare the Revised Draft EIR.
The Revised Draft EIR will be published and a public comment period
will then commence with public meetings held through the City of
Grass Valley Planning Commission. Subsequent to the public comment
period, the Final EIR will be prepared by the City and its
consultants. The Grass Valley Planning Commission will review the
Final EIR and entitlements for the Project, make a determination if
the documents are complete and adequate, and forward the package to
the Grass Valley City Council. The City Council will be responsible
for Certification of the Final EIR, approving the entitlements, and
approving a Conditional Use Permit for the Project. Additional
public meetings will be held when the Project reaches City Council.
It is anticipated that the Final EIR will be completed in late 2011
or early 2012.
David Watkinson, President and CEO of Emgold stated, "We have
been working hard over the last year and a half and believe that
the revisions to the Project will eliminate, reduce, or mitigate a
number of potential impacts identified in the Draft EIR. While air
quality was identified as a significant issue in the Draft EIR, the
significance, in the case of nitrogen oxides, is a result of Nevada
County being a non-attainment area for ozone (nitrogen oxides are a
precursor to ozone). Nevada County has high ozone levels due to air
that blows into the Sierra Nevada Mountains from the San Francisco
and Sacramento area, not due to local emissions. As such, the
significance level the mine has to meet is much lower than in an
area that is not a non-attainment zone. We expect to meet the
nitrogen oxide significance level for several project alternatives
that will be analyzed in the EIR. We are also required to deal with
AB32 legislation in California, in the CEQA process, even though
the state has yet to adopt many provisions of this law, including
defining of 'significant levels'. We look forward to completion of
the Revised Draft EIR and Final EIR with these changes
incorporated."
For more information about Emgold, the Idaho-Maryland Gold
Project and the Buckskin Rawhide, Stewart, and Rozan Properties,
please visit www.emgold.com.
On behalf of the Board of Directors
David G. Watkinson, P.Eng., President & CEO
This news release may include certain statements that may be
deemed "forward-looking statements". All statements in this
release, other than statements of historical facts, that address
the mineral resource estimates, are forward-looking statements and
are based on a number of assumptions, including but not limited to
the assumptions underlying the estimated resources outlined in the
Technical Report are and remain valid, that the demand for and
price of gold remains constant or increases and does not experience
a material decline, and that the Company will be able to raise the
capital required to hold and develop the Idaho-Maryland Project.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include changes the price of gold, the price of the company's
shares, the costs of labour, equipment and other costs associated
with exploration, development and mining operations, exploitation
and exploration successes, continued availability of capital and
financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the
Company's filings that are available at www.sedar.com or the
Company's website at www.emgold.com.
U.S. 20-F Registration: 000-51411
This release was prepared by the Company's management. Neither
TSX Venture Exchange nor its Regulation Services Provider (as the
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Contacts: Emgold Mining Corporation David G. Watkinson, P.Eng.
President & CEO 604-687-4622 or Toll Free: 1-888-267-1400
info@emgold.com www.emgold.com
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