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Gold/Mining/Energy : byg

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To: JUNIORSPECULATOR who wrote (702)4/7/1998 11:21:00 PM
From: M5PRO  Read Replies (2) of 769
 
BYG Wants More Time

By Chuck Tobin

BYG Natural Resources Inc. has applied for another 60 days
to get its water treatment system in full compliance of its water
licence for the Mount Nansen gold mine.

But company president Graham Dickson said this morning the
request for an extension is a precaution the company may not
have to use.

In February, under an emergency application to the Yukon
Territory Water Board, BYG was granted a 60-day period in
which its water did not have to pass a fish survival test.

The company, however, was still required to meet all other
discharge requirements before spilling water from its tailings
pond. The mine is 50 kilometres east of Carmacks.

The application for an additional 60 days was delivered last
Friday to the board. In it, the company maintains it was in a
financial pinch for part of the first 60 days.

As a result, it did not have the stock of chemicals at the minesite
to treat and discharge the full 72,000 cubic metres necessary to
make enough room in its tailing pond to handle spring runoff.

Instead, it was able to treat and discharge 32,000 cu. m, or half
the amount.

"I could have enough space now, but the point is, do I want to
take that chance or do I want to become safer and safer?"
Dickson asked. "That is the situation. We do not want to be cut
short of space."

Dickson estimates the tailings pond has enough room currently
to handle between 40,000 and 50,000 cu. m. Last year's runoff
brought an additional 102,000 cu. m.

With steps taken to minimize the flow of runoff into the tailings
pond - additional ditching and the like - it's expected the influx
of runoff will be closer to 50,000 cu. m, he said.

Passing the fish test requires that at least 50 per cent of 10
juvenile rainbow trout live in the mine effluent for a period of 96
hours.

While BYG has passed the test, it hasn't done so consistently.

Dickson, who doubles as the chief executive officer,
emphasized this morning that all other discharge levels, cyanide
and zinc concentrations, for instance, are being met.

And it's possible that BYG will soon be meeting the fish survival
test on a consistent basis.

Judi Doering, manager of the board, said this morning she is
waiting to hear from board chair Ron Johnson to see when it
will meet to discuss BYG's latest application.

The first 60-day exemption from the fish test was retroactive to
late January. That means the company is currently working
without any exemption, so discharge requirements include
passing the fish test.

BYG is, however, continuing to mine and mill, with a
complement of some 70 staff.

Dickson also emphasized there is not truth to the rumors that
the tailings pond is failing structurally, or that the dam is allowing
more seepage that it was originally designed for.

Recent tests on the structure show it is living up to design
specifications, which were accepted as part of the water
licence.

Meanwhile, Dickson dismisses a $47,058-suit against BYG
filed last week by Vancouver-based Klohn-Crippen
Consultants Ltd., an engineering company hired by the mine.
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