River rafters force Geddes to revise mine plans

The British Columbia government has sent Geddes Resources (TSE) back to the drawing board to further research and revise its mine plan for the Windy Craggy copper deposit in the province’s far northwestern corner. The company filed a stage-one report with the British Columbia government last January as part of the province’s mine development review process. Geddes is proposing to construct and operate a copper-gold-silver mine employing 500-600 persons with a mine life of at least 20 years, and the potential for an additional 20-30 years.

The plan is based on mining at 20,000 tonnes per day. The ore would be milled on site to produce copper concentrate for shipment through Haines, Alaska, to offshore smelters. Besides copper, significant amounts of gold, silver and cobalt would be produced.

Although Windy Craggy is in one of the most rugged and remote areas of the province, the project’s development is being opposed by river-rafting companies and preservationist groups concerned about the proposed mine’s impact on the Tatshenshini River and other water courses.

British Columbia Mines Minister Jack Davis said the Windy Craggy project is of “world-class size in a richly mineralized region.” But he also noted that a potential problem is acid drainage from the mine’s open pits and rock dumps.

After initial review of Geddes’ stage one report, the British Columbia government stated that “the acid drainage threat has not been eliminated.” Davis said provincial policy requires that the environment must be completely protected from the potential threat of acid drainage.

“The company has been told it must do further research and revise its mine plan for further scrutiny,” he added.

The Windy Craggy project is expected to undergo extensive environmental assessment, including an independent public review, and joint federal-provincial public hearings. Public meetings are planned for Smithers, Prince George, Kamloops and Vancouver, May 22-28.

Davis also intends to involve public and government agencies in British Columbia, the Yukon and Alaska in the planning process.

“Creating acceptable multiple- use plans for the area is a high priority,” Davis said. “The Tatshenshini River is used by international commercial river-rafting companies and the region has high recreational value.”

In the next few weeks, Geddes will begin its feasibility study on the Windy Craggy project, which is expected to be completed this fall. President Gerald Harper said the study “will provide the high level of detail required to give confidence in the project development and to form discussion with financial institutions.”

Harper said the company is working with many government departments to ensure that comprehensive studies are completed to define the present environment of the area; identify the impact of the project on the environment; develop approaches to minimize the impact during construction and operation; forecast the conditions at the end of mine life and plan restoration measures.

At the company’s recent annual meeting in Toronto, Harper told shareholders the company has a responsibility to ensure that development of the project takes place “in harmony with the environment” and does not leave its mark “as a liability for future generations to expurgate.”

But he also stressed that exploration has now confirmed the Windy Craggy deposit to be the largest copper deposit delineated in Canada in at least 20 years.

Development efforts are currently focused on two of the deposits, the North and South zones. Geddes noted recently recalculated diluted reserves of more than 200 million tonnes grading 1.7% copper could be mined by open pit method at an “extremely favorable” stripping ratio.

The company estimates that the waste-to-ore ratio will be less than 1-to-1 in the early years, while the average grade of mill feed will be 2% copper.

In the meantime, Geddes has budgeted a $12-million program for 1990 which will include completion of the feasibility study, undertaking of stage-two environmental studies and reporting, confirmatory exploration and metallurgical test work and geotechnical surveys of the site area and road access route.

Harper said the company would need to raise an additional $5-9 million to finance its budgeted levels of activities in 1990. A portion of this will be provided by a private placement of 1.5 million shares at $2.05 per share with major shareholder, Northgate Exploration. Meetings are planned with other investors to discuss further financing.