By Tim Bradner

Alaska Journal of Commerce

Echo Bay Alaska, the company planning to reopen the big AJ Mine in Juneau, thinks it can satisfy the U.S. Environmental Protection Agency that its project will meet state and federal water quality standards despite a highly negative EPA assessment released Dec. 31.

The company has already proposed that cyanide be dropped as a way of processing ore, which should solve many of the problems raised by the agency.

If there is a positive aspect to EPA's assessment, it is that issues are now out on the table. "At least we known the nature of the beast," said David Stone, spokesman for Echo Bay.

"In one respect it's a relief because you have identified the areas where major agencies have heartburn," said Al Clough, minerals specialist with the state Department of Commerce and Economic Development and a Juneau borough assemblyman.

"The last two and half years it's all been speculative."

EPA officials told Echo Bay they are receptive to reviewing the Technical Assistance Report and considering alternatives, Stone said. The agency has proposed meetings in Juneau on Jan. 25 and a technical review by an independent panel of scientists later this spring.

"EPA's approach was they needed to do this internally and get the report out," Stone said. "Until the report was out, we didn't have anything formally to discuss with them."

"Cyanide was a key issue. We think our process is very good and could have met water quality standards, but we are prepared to eliminate it and go to a simple gravity-recovery process," he said. "That will improve water quality. EPA intuitively agrees with that, but wants to see hard data.

"They've given us the impression they want to work with us. They haven't slammed the door, which is the impression that's been given in media reports."

Clough said the portion of the ore "to be treated by cyanide was not a large amount. The more work the company did showed they could recover the vast amount of the gold by gravity separation," a mechanical process that involves no chemicals.