Geodome subsidiary awaits approval for gold project

A wholly-owned subsidiary of Geodome Resources is hoping to pour its first gold bar within a year at its Jordan Creek open pit project in Idaho.

Sunbeam Mining reports it is planning to start plant construction in early September, pending approval from the U.S. Environmental Protection Agency (epa), with construction of access roads expected to begin in November.

The Jordan Creek mine, which will have a 10-year life span, will produce 650,000 tons of processable ore annually. Sunbeam’s chief mining engineer, A. J. Silva, said the mine will operate about 10 months each year, closing during spring runoff to avoid sedimentation problems in area streams. It will run two shifts five days a week, and is expected to employ 30-to-35 people.

Mr Silva said the company recently submitted a model to the epa showing that although there will be elevated arsenic levels in the spent ore, little of it will leach into the ground and nearby streams. The company says arsenic levels in Jordan Creek will be below the agency’s standard of 0.19 mg per litre for receiving streams, as well as below the agency’s standard of 0.05 mg for drinking water.

Unauthorized cyanide was discharged on two separate occasions into Jordan Creek by the company during heap-leach testing at the site in the early 1980s.

Company officials hope to receive the environmental agency’s decision by the end of July. If the mine receives the agency’s tentative approval, there will be a 30-day public comment period, followed by a public hearing at Sunbeam’s request.

Sunbeam hopes to begin milling stockpiled ore early next spring.

The final environmental impact statement for the project was issued in September, 1984. The company has spent the past 2 1/2 years raising capital and obtaining the more than 20 necessary permits.