The U.S. Bureau of Land Management has formally approved Kerr Mines’ (TSX: KER) mining plan for the Copperstone gold project in Arizona.
Following Kerr’s application in June 2018, the BLM conducted an environmental assessment on the Copperstone project as required by National Environmental Policy Act. This process involved a number of independent studies to evaluate the effect of the project including cultural and biological resources, traffic, noise, water, and air quality.
The Copperstone mine produced nearly 500,000 ounces of gold between 1987 and 1993 through open-pit mining
Last year, the company approval from the Arizona Department of Environmental Quality (ADEQ) for the modification of its existing air and water permits.
A decision of record (DoR) based on a finding of no significant impact (FONSI) was issued by the BLM this week, marking the conclusion of the entire permit modification effort that started in 2018.
Receipt of the DoR will result in gold production increasing from the current allowable limit of 450 t/d to 600 t/d, the use of cyanide for recovery of gold from ore using captive steel tanks located in the gold ore processing facility and the storage of stabilized tailings produced from the ore processing facility.
The decision also allows the company to restart the mine in the “near term” with improved operating conditions and project economics.
The Copperstone mine produced nearly 500,000 ounces of gold between 1987 and 1993 through open-pit mining. Existing infrastructure which remains from this time, or which has been subsequently installed by the company’s predecessor and wholly owned subsidiary, American Bonanza Gold, is considerable and serves to reduce the current capital requirements for the project.
Shares of Kerr Mines increased by 3.2% at market open Friday. The Toronto-based miner has a market capitalization of approximately C$46 million.