Midway Gold (MDW-T) has received a Dec. 20, 2013, signed record of decision (ROD) on the final environmental impact statement (EIS) for the Pan gold project, White Pine county, Nevada. The ROD signifies full completion of the required National Environmental Policy Act (NEPA) and EIS process. The ROD represents the final step in the federal permitting process and allows construction to begin.
Pan gold project, NevadaThe Pan project is a low-cost, oxidized, Carlin-style gold deposit minable by shallow open-pit methods and treatable by heap leaching. A feasibility study was completed in November, 2011. It shows the net present value of the project is robust at a range of gold prices, ranging from $123-million at $1,200 per ounce gold to $344-million $1,900 per ounce gold. The internal rate of return grows from 32 per cent to 79 per cent using the same gold price range. Both are after-tax figures.
"We are permitted at Pan. This is truly a groundbreaking accomplishment for Midway Gold and a great Christmas present for all who have been a part of the Midway story over the past few years," said Ken Brunk, Midway's president and chief executive officer. "We advanced from the notice of intent to the record of decision in a record 20 months. We would like to thank everyone here at Midway, especially our permitting team, for a job very well done. We respect the professionalism of the co-operating agencies and their effectiveness to complete the process in a timely manner. We would also like to thank the local communities and, of course, our shareholders for the endless support. We are very excited to have completed this permitting process and are ready to begin construction!"
What is the NEPA and the EIS process?
The environmental impact statement for the Pan project is required under the National Environmental Policy Act. The act sets up procedural requirements for all federal governmental agencies to prepare environmental assessments and environmental impact statements in response to proposed major activities on federal lands. The Pan project is on federal land administered by the Bureau of Land Management (BLM). Therefore, NEPA requires the BLM to prepare an EIS to analyze potential environmental consequences of the planned project and any reasonable alternatives. Midway has advanced through baseline studies, the draft EIS and the final EIS, and has now completed the process with the record of decision. Numerous state permits are also required and have been obtained from various state agencies. |
