WHAT IS THE SMALL MINE CONCEPT AND THE MAJOR ISSUES?

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1 WHAT IS THE SMALL MINE CONCEPT? BASIS OF STUDY WHAT ARE THE FEATURES OF THIS CONCEPT COMPARED TO ECHO BAY S ORIGINAL CONCEPT? WHAT ARE ISSUES RELATED TO REOPENING THE AJ? THE AJ MINE

2 PRODUCTION RATE MINING METHOD TAILING DISPOSAL METHODS UG TAILING DISPOSAL UNDERGROUND FACILITIES SURFACE FACILITIES NOISE TRAFFIC EMPLOYMENT OPPORTUNITIES FINANCIAL IMPACT ON JUNEAU WATER QUALITY WHAT IS THE SMALL MINE CONCEPT AND THE MAJOR ISSUES?

3 ORE PRODUCTION RATE: 3,500 TONS/DAY MINED MILLING RATE: 2000 TONS/DAY WASTE ROCK PRODUCTION: 2000 TONS/DAY OF ROCK AVAILABLE FOR SALE OR OTHER SURFACE USES ORE RESOURCE: 12.8 M TONS OF ORE (INCLUDES DILUTION) MINE LIFE: 12.8 YEARS REVENUE OUNCES OF GOLD: 782,000 OVER MINE LIFE AVERAGE GRADE OF MINED ORE: OUNCES PER TON AVERAGE GRADE OF MILLED ORE: OUNCES PER TON PRODUCTION RATE

4 MINING METHOD THE MINING METHOD ANALYZED IN THE SMALL MINE ANALYSIS IS LONG-HOLE OPEN STOPING. IT CONSISTS OF RELATIVELY LARGE STOPES ROUGHLY 150 FT LONG BY 150 FT WIDE BY 200 FT HIGH. THIS METHOD IS MORE SELECTIVE THAN BLOCK CAVING USED BY THE AJ IN THE OLD DAYS, OR SUB-LEVEL STOPING USED IN THE LARGE MINE ANALYSIS. LONG-HOLE OPEN STOPING WOULD NOT RESULT IN NEW CAVING

5 UNDERGROUND DISPOSAL METHODS DRY TAILINGS PASTE PASTE WITH CEMENT HYDRAULIC BACKFILL SURFACE DISPOSAL NOT RECOMMENDED SUBMARINE DISPOSAL NOT RECOMMENDED TAILING DISPOSAL METHODS

6 UTILIZE EXISTING UNDERGROUND OPENINGS CAPACITY OF DEEP NORTH STOPES: 8.2 M TONS CAPACITY OF NEWLY MINED STOPES CAPACITY OF NEW STOPES: 7.7 M TONS OVER PROJECT LIFE TOTAL CAPACITY OF STOPES: 15.9 M TONS REQUIRED CAP. FOR DISPOSAL: 6.1 M TONS CONCLUSION - THERE IS PLENTY OF ROOM TO DISPOSE OF TAILINGS UNDERGROUND. UNDERGROUND TAILING DISPOSAL

7 UNDERGROUND FACILITIES UNDERGROUND FACILITIES ORE AND ROCK WASTE MOVEMENT WOULD TAKE PLACE ALONG ROADWAYS, THROUGH ORE PASSES, AND BY RAIL AND IN MINE HOISTING FACILITIES ORE SORTING, GRINDING AND CONCENTRATING WOULD TAKE PLACE IN THE UNDERGROUND MILL FACILITY PROCESSING OF TAILING MATERIAL AND DISPOSAL WOULD TAKE PLACE UNDERGROUND WAREHOUSING OF SUPPLIES AND EXPLOSIVES EQUIPMENT MAINTENANCE SHOPS WATER TREATMENT FACILITIES POWER GENERATING

8 AN ADIT LOCATED NEAR SEA LEVEL PREFERABLY BETWEEN THE OLD AJ STEAM PLANT AND LITTLE ROCK DUMP TO ACCESS THE OREBODY MINE OFFICE, CHANGE HOUSE, WAREHOUSE AND ROCK STORAGE POWER GENERATION (MAY ALL BE UNDERGROUND) SURFACE FACILITIES

9 NOISE NOISEY EQUIPMENT SUCH AS SCOOP TRAMS, TRUCKS AND MAN TRIPS WOULD RARELY BE OUTSIDE OF THE MINE CRUSHING AND GRINDING WOULD BE UNDERGROUND BLASTING WOULD ALL BE UNDER-GROUND AFTER INITIAL PORTAL DEVELOPMENT WASTE ROCK HAULAGE FROM ADIT AND STOCKPILING OF ROCK ON THE SURFACE NOISE BARRIERS WOULD BE CONSTRUCTED ON THE SURFACE AS REQUIRED

10 TRAFFIC TO AND FROM THE MINE PLANT SITE WOULD BE LIGHT EXCEPT AT SHIFT CHANGE PARKING NEAR THE PLANT SITE IS EXPECTED TO BE DIFFICULT DEPENDING ON THE FINAL LOCATION OF THE ADIT THE MINE OPERATOR SHOULD BE ENCOURAGED TO PROVIDE BUS TRANSPORT BETWEEN THE PLANT SITE AND SATELLITE PARKING AREAS TRAFFIC

11 EMPLOYMENT OPPORTUNITIES EMPLOYMENT OPPORTUNITIES MINE/MILL EMPLOYMENT WOULD BE EXPECTED TO REACH ABOUT 200 DURING PRODUCTION TYPES OF EMPLOYMENT OPPORTUNITIES INCLUDE: SKILLED AND UNSKILLED LABOR, MINERS, EQUIPMENT OPERATORS, MILL OPERATORS, ENGINEERS, GEOLOGISTS, OFFICE WORKERS, MANAGEMENT STAFF, CHEMISTS, BIOLOGISTS AND SAFETY PERSONNEL WAGES AND BENEFITS WOULD BE COMPETITIVE IN THE MINING INDUSTRY AND SE ALASKA

12 FINANCIAL IMPACT ON JUNEAU ROYALTIES AND RENT PAID TO THE CBJ MINING COMPANY WOULD MAINTAIN THE UNDERGROUND OPENINGS AND WORK AREAS ADDITIONAL SALES TAX PAID BY MINE EMPLOYEES AND EMPLOYEES OF LOCAL BUSINESSES MINING COMPANY AND EMPLOYEE SUPPORT OF EXISTING BUSINESSES IMPROVEMENT IN THE LOCAL BUSINESS CLIMATE AND IMPRESSION OF JUNEAU AS A GOOD PLACE FOR NEW BUSINESSES TO RELOCATE

13 EXISTING MINE DRAINAGE WOULD CONTINUE TO BE DIRECTED TO THE DRAIN TUNNEL CONSISTENT WITH REQUIRED WATER QUALITY STANDARDS MINE DRAINAGE FROM ACTIVE WORK AREAS WOULD BE TREATED AND RELEASED TO THE DRAINAGE TUNNEL OR USED IN THE MILLING PROCESS, FOLLOWED BY TREATMENT AND RELEASE TO AN OUTFALL IN GASTENEAU CHANNEL ALL WATER DISCHARGES WOULD BE SUBJECT TO NPDES PERMITS WATER QUALITY