A Different Kind of Gold Project, Part II

Written by Gerardo Del Real
Posted July 3, 2017 at 8:00PM

Publisher's Note: Yesterday we brought you Part I of Gerardo's interview with Laurel Sayer of Midas Gold, in which they discuss how Midas will clean up a former mining site from 1930s on the way to becoming one of the largest gold producers in the country. Today's interview gets into the particulars of what it will do to remediate the site. It's a project where all stakeholders benefit: the public, the environment, the government, wildlife, and certainly Midas Gold (TSX: MAX)(OTC: MDRPF) shareholders. It's American capitalism at its finest. So be sure to read Part II below before you fire up the grill. Happy Fourth! And if you're interested in other gold companies we're currently recommending, check them all out here. 

Gerardo Del Real: I understand that after the reclamation effort is complete, if permitting goes the way that everyone expects it to go, it won't just be a cleanup. There will be wetlands that will be improved on, salmon will benefit from it. Can you just list off, and I know this is where you're really passionate, Laurel, could you provide us a list of just some of the benefits that the site will see immediately once the reclamation is complete?

Laurel Sayer: Yes. The major positive element that I think that Midas brings is that Midas accumulated and has the entire ownership of the Stibnite Mining District. We have purchased the surface rights, we have responsibility is what we would say, for the entire area, which makes it easier for us to go in and connect all of the reclamation that we can do. Because different companies have owned different parts of it, we're able to take it and look at it holistically, in order to bring all the right kind of reclamation. Nature doesn't work in little pieces. Rivers are a holistic movement, wetlands, they all feed into each other, and that's why we are able to have such a strong restoration component to our plan.

For example, let me just highlight a few of them. There are tailings that are covered by some spent ore and some crushed rocks up there from a former mining project. Those tailings during run off, they seep, the tailings seep into the ground, and into the water systems. We're going to take off the rock, we're going to go in and reprocess those tailings, and take the minerals out of that, and then reuse that rock that is there. We'll be able to reuse it in other construction areas that we do with the mine. There's an area up there called "Blow Out Creek." It was a historic hydro project that they had up there with a former mining company in the 1930s. The dam blew out when they were looking at how to repair it.

It blew out and it is a major source of sediment in the East Fork and the South Fork, and on down the South Fork at the Salmon River. Any fisherman, any biologist knows that sediment is not a fish's primary home that they want to have. We will clean up that sediment, we'll clean up Blow Out Creek, at the beginning of the project. There is the Yellow Pine Pit that we identified as that. A lot of folks call it the Glory Hole. It's an old mining pit and we're going to dewater that pit, put the river in a big 14-foot tunnel, and reconnect it. It has stopped since about 1938, so for 80 years, the fish have not been able to, the salmon have not been able to, go into the upper reaches of the river and we'll reconnect that.

Once we're finished with that, mining that pit, we will restore the pit and the waterway, so that it'll have a natural habitat. We will take in the Blow Out Creek area, we'll have some wetland areas. When you mine and you have impacts like that on the environment, when they're not restored or even during your mining operation, you have to replace your disturbance for wildlife and fish. We're going to do many of those things right at the beginning so that we can take care of the environment with the critters, with the fisheries, and our motto when we sit and we talk about this and we go out to the public is, "We're going to leave this place better than we found it."

We're going to be responsible, and do more than is asked of us by the regulatory agencies, so anyone that wants to see what we do can read our plan and see that we basically are an environmental project, a restoration project, restoring an area that needs improvement and we've got a mining project attached to it. That's how we like to tell about our project.

Gerardo Del Real: You know, when we were onsite Laurel, one of the more serious gentleman at the site visit mentioned that he asked CEO Stephen Quin if he could recall another project where there was the potential to not only have a very robust producing gold mine, but also leave an area better than when they found it. I recall that Stephen said he didn't recall any other project he's ever been involved with where the place that he'll leave will actually look a whole lot better than the mine that he's hoping to put into production. I thought that was unique.

The other comment that I took away from that very serious gentleman was that this is actually a project that people can be proud to be involved with, and I thought that was a pretty unique perspective, because everybody wants to make money and there's obviously a world-class asset there, but in order to access that, and in order for the cash flow to happen, before that the reclamation has to happen, a large part of it. I just think it's unique. In my 10 years or so in the resource space, I can't recall a similar situation, so with that Laurel, where is Midas in permitting process? How is that coming along?

Laurel Sayer: Well, we have, of course we've filed our plan, and now we're in the scoping area. We've, right now in fact, the Forest Service is holding scoping meetings, telling the public about the project and helping educate the public on how they can comment. It's an opportunity for the public to go to a meeting and be involved in the National Environmental Policy Act (NEPA) process which is the process that the Forest Service and the government requires projects like this to go through in order to get permits. It's moving, we're moving forward.

Gerardo Del Real: Excellent. Again, I want to thank you for your time because I understand you are in the middle of that process, so thank you for taking the time today. Now, one of the important contributions that you've made recently is I know that you were able to coordinate the various agencies to outline a specific timeline and process in which the permitting process would play out. Where do you see the timeline as far as reaching a decision point between the multiple agencies?

Laurel Sayer: We are hoping and on our timeline, and us working with the agencies, and they're onboard as well, is that we will have a record of decision by the first quarter of 2019. We've had to adjust it somewhat. We originally wanted it to be December of 2018, but we've had to push it out just a bit into the first quarter of 2019. We have great cooperation and enthusiasm, I can say, with the agencies to help us meet that timeline.

Gerardo Del Real: Excellent, excellent. Now Laurel, again I want to thank you for your time. Is there anything that you'd like to add, anything maybe that I left out that's important to you?

Laurel Sayer: I think that the most important part is that we are doing a restoration project with mining component, but we like to say that we are changing how mining is done, that it is possible to integrate industry and the environment together in order to build an economy, to restore a forest, and to restore a historic area. It can be done, and we like to say that we're paving a whole new way of how you can do mining.

Gerardo Del Real: Well, that's excellent work, Laurel. I would encourage everybody to get a bit more familiar with the project and the extensive work that will go into this. If you go to MidasGoldCorp.com, get some great pictures, some great history of the project, and a vision for what it'll look like in the future. Laurel, thank you very much for your time today.

Laurel Sayer: Thank you.

To your wealth,


Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

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