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Michigan grants Aquila’s Back Forty permit amendments

13th December 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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The Michigan Department of Environment, Great Lakes, and Energy (EGLE) has approved amendments to TSX-listed Aquila Resources' nonferrous metallic mineral mining permit and its Michigan air use permit for its Back Forty project.

The amendments update the permits to align with the project design outlined in the August 2018 openpit feasibility study, as well as in its wetlands permit that was issued June last year.

The amendments follow the decision by the EGLE environmental review panel to uphold the mining permit.  The contested challenge to the permit began in April 2018.

In May this year, an Administrative Law Judge upheld the final decision and order on the nonferrous metallic mineral mining permit for Back Forty. Following the judge’s ruling, the Menominee Indian Tribe of Wisconsin appealed the decision to the environmental review panel, which is made up of technical experts from various fields.

The three-person panel adopted the Judge's May 3, decision, which found "that the proposed mining operation will not pollute, impair, or destroy the air, water and other natural resources, or the public trust in those resources”, in compliance with Michigan's nonferrous metallic mining statute.

“The Back Forty mine will be a safe, disciplined operation that promotes and supports the local community, socioeconomic development and environmental protection,” commented CEO Barry Hildred on Thursday.

According to a 2018 feasibility study, the project has a life of seven years with total payable gold production of 468 000 oz, at an average of 67 000 oz/y. The total payable zinc production is about 512-million pounds, at an average of 73-million pounds a year.

Initial project capital costs were estimated at $294-million with a 24-month construction period, and sustaining capital costs were valued at about $110.6-million.

The project contains about 1.1-billion pounds of zinc and one-million ounces of gold.

Edited by Creamer Media Reporter

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