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'If you want to know the truth … read our blog'

Barrick-backed Midas Gold (TSX: MAX) says it is advancing the permitting process for its proposed Stibnite brownfields gold mine in Idaho and is also defending legal action over the project.
'If you want to know the truth … read our blog' 'If you want to know the truth … read our blog' 'If you want to know the truth … read our blog' 'If you want to know the truth … read our blog' 'If you want to know the truth … read our blog'

Midas is pushing ahead with plans for its Stibnite gold project in Idaho

Staff reporter

The company tweeted an hour ago it had recently seen "misinformation swirling" about Stibnite Road and its plans for the historical mining district.

"If you want to know the truth about temporary road closures and water quality, read our blog," it said on Twitter.

In an update released to the market yesterday, Midas said the US Forest Service had indicated the draft environmental impact statement would be available for public review in January, with a final record of decision anticipated in the first quarter of 2021.

"After years of thorough analysis and review, we are much closer to fully realising the benefits of the Stibnite gold project," Midas Gold Idaho president and CEO Laurel Sayer said.

"Through redevelopment of a brownfields site, this project is designed to restore fish habitat, reconnect salmon to their native spawning grounds and address numerous legacy impacts from historical mining activities to improve water quality.

"In fact, through the permitting process, we have been able to identify multiple refinements to our initial proposal that reduce the project impact and improve environmental outcomes, including those detailed in the modified PRO (plan of restoration and operations)."

Litigation update

In an update on litigation, it said the Nez Perce tribe had filed legal action in the Idaho district court in August, which it said was related to water quality impacts due to historical mining activity prior to Midas Gold's and its subsidiaries involvement with the site.

"The corporation and its subsidiaries are defending against the litigation, filing several responses to the allegations requesting the federal court to stay the proceedings while negotiations with the US Environmental Protection Agency, the Idaho Department of Environmental Quality and the USFS are proceeding on an agreement to further address site conditions under the Comprehensive Environmental Response, Compensation, and Liability Act," Midas said.

It had also requested the federal court to dismiss the action.

Midas anticipates producing an average annual 337,000 ounces over 12 years from Stibnite, with silver and antimony by-products.

The 2014 prefeasibility study outlined total capex, including a 17.2% contingency, of US$1.1 billion, an after-tax NPV (5% discount) of $832 million and IRR of 19.3%, using a gold price of $1,350/oz.

Barrick Gold increased its stake in Midas to 19.9% in June after taking part in a C$19.9 million placement at 60c per share. Paulson & Co also bought shares to maintain its pro rata interest of 29.11%.

Midas shares have ranged from 51c-$1.10 over the past year and closed down 2.9% yesterday to 66c, capitalising it at $178.6 million (US$134.7 million).