Royal Oak hopes to reel in permits for Kemess South

Now that the fate of nine fish appears no longer to be in jeopardy, Royal Oak Mines can proceed with development of its Kemess South copper-gold project in north-central British Columbia, amongst other projects.

At issue was the relocation of nine spawning bull trout from a small creek that runs through an area where the tailings dam is to be built.

Having met with federal and provincial authorites in December, the company believes the matter has been “substantially resolved” and expects permits to be in hand by late March.

Construction of the $350-million project will follow, and development will proceed in the form of a bulk-sample test.

The deposit contains a minable reserve of 221 million tons grading 0.22% copper and 0.018 oz. gold per ton at a stripping ratio of 1.26-to-1. A 44,000-ton-per-day operation is expected to produce an annual 213,000 oz. gold and 58 million lb. copper over a 15-year mine life.

Startup is slated for late in the first quarter of 1998.

However, the project must still be subjected to a public review, in accordance with the Canadian Environmental Assessment Act. The process is expected to begin during the week of Jan. 22, and will allow the public 45 days to review the project.

Resolution of the matter would pave the way for Royal Oak to take over three junior companies.

The plan of arrangement, which involves El Condor Resources (VSE), St. Philips Resources (TSE) and Geddes Resources (TSE), received share- holder and court approval more than two months ago. But unforeseen delays in the permitting process resulted in Royal Oak extending the closing date. The formality of concluding the deal is all that is left to complete.

Royal Oak is paying $2 cash and 0.95 of a Royal Oak share for each El Condor share, $3.40 cash for each St. Philips share, and 0.3 of a Royal Oak share for each Geddes share.