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Grass Valley Skyline if Idaho-Maryland Re-opens

The following is an accurate photographic projection, a photograph edited to reflect the likely appearance of the Grass Valley skyline if the Idaho-Maryland Mine were to reopen and go into full operation.

It was done by researchers for the local group, “Citizens Looking at the Impact of Mining” (CLAIM-GV), in consultation with officials in Grass Valley government, taking careful consideration of issues such as water content of the smoke and steam, typical wind direction and other elements of the local microclimate.

Despite — or more likely because of — the care taken to make it as accurate a projection as possible, this image, mounted on a poster and displayed for the past several months at the weekly Nevada City Grower’s Market, caused quite a stir, no doubt because it came as a shock to many citizens who had not realized the significant impact the mine would have on the local environment.

Click on image to see larger view

War of Words Continues: Emgold and Dunn

Today Emgold issued a press release in direct response to Dunn Capital Partner's October 23rd press release, in which Dunn explained its reasons for dropping financial support for Emgold. Dunn cited its concern -- and public concern -- for the environmental and social impact of reopening the Idaho-Maryland Mine.

Emgold insists that Dunn's press release is a "concoction of falsehoods," and "represents a malicious attempt to cause financial damage to Emgold and its shareholders."

Who dumped whom in this drama is less important than whether the environmental and social concerns cited by Dunn are valid. Emgold insists that it has "always been fully sensitive to the environmental concerns associated with its Idaho-Maryland Project and is totally committed to proceeding responsibly and in absolute compliance with all applicable California and United States laws and regulations."

And yet the first Draft Environmental Impact Report (DEIR) -- which cited unmitigable air quality impacts -- was found by the City of Grass Valley to be unacceptable, and the city now requires that it be reworked and recirculated.

The public survey mentioned by Emgold in its press release found that "seventy-two percent of those residents responding to the poll favored the re-opening the historic Idaho-Maryland Mine if appropriate environmental safeguards were put in place." That survey was conducted in 2006, well before the 2008 completion of the unsatisfactory DEIR, which failed to establish the adequacy of the safeguards.

An indication of public opposition to the Idaho-Maryland project may be gleaned from hundreds of comments against the mine posted to thepetitionsite.com.

Examples:

"I'm strongly against the proposed mine. We moved here 9 years ago, because of the natural beauty, and we do not want that ruined with the industry of a new mine. Please do not allow the mine to open or be permitted. The trucks alone, will dramatically change the character of Grass Valley, and mine will be an eyesore. We're still dealing with the legacy of mining and all the problems it caused from the past. Don't let it happen again!"

"I am a resident of Grass Valley for 10 years, and a resident of Nevada County for 22 years. I DO NOT want the mine reopened or any business related to mining in Grass Valley!"

"Banner Mountain is a beautiful place to live. I moved from Southern California to escape the noise, traffic and pollution. Please do not open the mine. I feel there is not enough economic gain to justify the negative impact the mine operation would cause to the local eco-system and neighborhood. Children are growing up in this area, we need insure that they will have a beautiful, and healthy neighborhood to grow up in."

"I do not support creating businesses in Nevada City that makes such a toxic impact upon our community. I am an property owner in Nevada City and concerned that the clean-up and risk to our health, and potential impact on our property values, makes this Idaho Maryland mine a bad idea. Now is the time to start cleaning up the planet and supporting choices for a clean world and stop these toxin cycles, by starting in our own community."

Dunn Capital Gives Reasons for Dropping Support for Emgold

Dunn Capital Partners Press Release:

"Ottawa, Canada, October 23, 2009 --(PR.com)-- After much research and deliberation, Dunn Capital Partners has decided to withdraw their support of the Idaho-Maryland Mine project in Grass Valley, California. Based on a unanimous vote, Dunn Capital Partners requires all extractive industry projects to support private equity firm’s social responsibility for the environment and the community that they invest in.

The decision was several-fold, based on review of Emgold’s proposed IMM project’s impact to an urban location, citizen petitions, the risk of water loss to local wells, the Surface Mining and Reclamation Act and hydrologist reports. In combination of inadequate support documents to prove the adherence to California’s Environmental Quality Act, Dunn Capital Partners had no choice but to end talks with Emgold on the IMM project. “As a private investment company, it is our responsibility to be more pro-active in taking an extra step to assess how a project can impact the area and regions of that community,” explains Michael Bailey, Head of Equity Capital Markets. Paying attention to the reaction generated by Californians of the targeted region has reinforced their decision.

“Our findings were disappointing to say the least. We have always strived to be involved in projects that can promote mutual benefit for both the industry and the citizens on an economic standpoint. The decision to withdraw their stake from Emgold’s IMM project is a testament to Dunn Capital Partner’s priority to conduct business as a socially responsible company. We want to encourage extractive industries to advance their social and environmental performance in response to the rising sustainable efforts our world is embracing today.”

Dunn Capital Partners is a private investment company and is focused on investing in growing Small Cap issuers with solid fundamentals. Dunn Capital Partners typically invests anywhere from $10,000,000 to $250,000,000+ with companies seeking a long-term funding partner and a strategic partner to support its growth. The company is committed to investing in companies with strong management who have the ability to execute their business plan upon the receipt of growth capital. Dunn Capital Partners is industry and geography agnostic. Dunn Capital Partners is based in Ottawa, ON. For more information, visit www.dunncapital.ca"

Students Ask: Will Gold Mining Turn Our Town Into a Pit?

Local students from The Woolman Semester produced this powerful video, raising concerns about the detrimental impact the re-opening of the Idaho Maryland Mine would have on their -- and our -- community.

GV City Council Meeting tonight Includes IMM agenda item

The Grass Valley City Council meeting tonight -- scheduled for 7 PM -- includes the following agenda item (the last item of the evening, as it turns out):

"Status Report on Development Applications / Projects pending before the City"

This is an information-only item. No action is required, although I believe (I'm not sure about this), public comment will be allowed.

The item is described as follows:

"Staff will provide a verbal status report on the more significant development applications and/or projects which are pending before the City. The status report will cover such projects as the Special Development Areas (SDA’s), the Idaho-Maryland Mine and Berriman Ranch. The report will provide a brief overview of the project, its current application status and the major milestones or challenges that are being addressed or need to be addressed in the future."

You can see the full Council Meeting agenda here.

Emgold Gets Pricey Loan to Stay Alive Another Year

Using a "consolidation" strategy -- reverse stock split -- that some investors consider a "desperation play," Emgold has arranged pricey interim financing that will probably allow them to operate for another year.

"As many as 75% of all stocks end up trading lower after a stock split," according to analyst Michael Brush.

The details are here.