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Web posted Friday, April 24, 2009

Donlin Creek hosts public meetings about mine project

By Patricia Liles
For the Journal

ANIAK - Sandra Kozevnikoff tested her heavy equipment driving skills on a computer simulator during a public meeting held last month in this middle Kuskokwim River village.

Kozevnikoff, a resident of nearby Russian Mission, was in Aniak attending an elders conference in March. The elders participated in an informational meeting hosted by Donlin Creek LLC, the development entity working on a proposed hard rock open-pit gold mine project located 13 miles north of Crooked Creek, also on the Kuskokwim River.


  Sandra Kozevnikoff of Russian Mission works a computer-simulated mine loader during a public meeting held in Aniak on March 12. Photo/Patricia Liles/For the Journal    

"I never drove a truck before, this was my first time," Kozevnikoff said after her successful operation of the simulator, set up at the public meeting as an employment recruiting tool.

Kozevnikoff isn't looking for a job at the mine development, but past exploration of the Donlin Creek gold deposit has already provided employment for her some in her family, she said.

"I support this (project) because of the employment," she said of the proposed mine development. "It's the only means of jobs in our own home area."

Kozevnikoff was among about 300 or so residents of the middle Kuskokwim River region who attended the meeting in Aniak, one of 11 gatherings held this winter and spring throughout the Southwest Alaska region by the development's management team.

"The more people we can get our information to, and who know about it, the better," said Doug Nicholson, president and general manager of Donlin Creek, the development entity created by project owners NovaGold Resources and Barrick Gold.

The meetings were being held to inform locals about current development plans and to take comments. At the Aniak meeting, about 30 Donlin Creek employees and consultants traveled to the village for the day to provide detailed information.

Posters with information and photos of the various aspects of the proposed mine project were set up around the perimeter of the community hall. Consultants and employees stood in front of the posters explaining their area of expertise, fielding questions and taking comments.

Nick Kameroff of Aniak was one of the early attendees during the March 12 meeting. The meetings have helped let locals know the pros and cons about the project.

"They are also letting us know how they get to the next stage, when there will be quite a few jobs," he said. "The main concerns are environmental hazards and pollution, and river traffic."

Potential impact to subsistence fishing during summers on the Kuskokwim River is a topic that Kameroff and others attending the meeting mentioned.

"A lot of people are concerned about the salmon and moose populations," said Aniak's David Phillips.

As currently proposed in the 32-page color booklet handed out at the public meetings, Donlin Creek would require between one to three barge tows of fuel and equipment each day during the summer shipping season.

Plans call for fuel to be transported to Dutch Harbor by tanker, then by double-hull ocean barges to Bethel, located almost 200 miles downriver from Crooked Creek. In Bethel, fuel would be transferred to double-hull river barges for the trip up the Kuskokwim River to a new port facility, currently proposed to be built at Birch Tree Crossing, located about 10 miles downriver from Aniak.

From the river port facility, fuel would be transported to the mine through a 12-inch, buried pipeline that would follow the route of a proposed 74-mile access road that would be constructed from Birch Tree Crossing to the Donlin Creek mine site.

"The barging and the impact to subsistence resources is where the big issue is," Nicholson said. "Power and logistics have always been the big issues. They have huge implications."

On-site electric power generation is the largest contributor to the projected freight needs of the Donlin Creek mine project. As currently planned, Donlin Creek would require 127 megawatts of power, which will be provided by on-side diesel generation, supplemented by a 35-megawatt wind farm.

The mixture of renewable and traditional energy allows for a consistent, reliable power supply, said Richard Ridley, an electrical engineer working as a consultant on Donlin's power supply.

Power generation equipment at Donlin Creek will require about 60 million gallons of diesel annually, he said, in addition to the estimated 25 million gallons that will be consumed each year by the fleet of heavy equipment.

Donlin Creek is believed to contain more than 30 million ounces of gold, which would provide a mine life of about 20 years. Current plans call for processing about 50,000 metric tons of ore per day in the year-round operation. Mining and milling operations would employ 600 to 800 people, according to development plans.

A technical report is being completed for the Donlin Creek project and is expected to be released by the end of April.

Permit applications will be submitted to regulators later this year, according to NovaGold, which will kick off the National Environmental Policy Act permitting process.

Another round of public meetings seeking comments will be held during the NEPA process, in which state and federal agencies will review the mine proposal and determine whether it can be built and operated.

NovaGold's remaining 2009 budget for Donlin Creek is approximately $10 million, according to the company's first quarter report. Part of those expenses will go to complete the feasibility study and the remainder is planned for permitting activities.

Last year, Donlin Creek LLC spent about $48.7 million, including additional exploration work that employed as many as 200 people in past summers.

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