IPOP proposes a gold mine operation in the Bonanza Channel

State reaffirms decision to deny mining permit to IPOP

By Diana Haecker |

After reviewing an appeal by IPOP LLC that sought to overturn a mining permit denial by the Alaska Department of Natural Resources, the agency on Monday issued a document reaffirming their decision.

Citing particular attention to the exploratory data, the Division of Mining, Land and Water stands by their decision to deny IPOP a land use permit and reclamation plan for three specific claims and is ‘inviting IPOP to conduct additional exploratory testing to establish a gold source,” the decision document says.

IPOP LLC has since 2018 tried to mine for gold in the Bonanza Channel and Safety Sound. Given the area’s extraordinary sensitive nature as an natural estuary and a cherished place for fish camps, a unified front of Nome’s organizations, governments and tribes has opposed the project vigorously.

The DNR has initially denied IPOP’s Application for a Permit to Mine in Alaska in March, on grounds of insufficient exploration evidence in support of the proposed mining operation, among other issues.

IPOP appealed and the DNR commissioner remanded the permit application for reconsideration. Another review included an independent evaluation from the Division of Geological and Geophysical Surveys. The agency found that IPOP’s 2019 drilling and sampling program does not meet accepted standards for placer gold exploration, shows methodological deficiencies and thus the “evidence submitted fails to substantiate the presence, continuity or commercial viability of placer gold within the area proposed for mining.”

IPOP not only failed to produce data that proves the presence of gold but also to justify utilizing large scale production mining equipment. IPOP proposed to use a cutterhead dredge and to cut access channels that would involve moving 70,000 cubic yards of sediments. “This action would constitute a substantial, production-scale disturbance not tied to the extraction of an identifiable mineral deposit,” the document says. “If IPOP were to propose a less intrusive surface use as part of its planned level of operations for years 1 and 2, and if IPOP could through reliable exploration data demonstrate a quantifiable mining deposit, the outcome may be different.” The DNR encouraged IPOP to “undertake a appropriate exploration program” and to “pursue its surface use application.”

IPOP was denied a necessary 404 Clean Water Act permit from the U.S. Army Corps of Engineers, Alaska District, but appealed and later sued to reverse the decision. The appeal was granted and without a substantive decision document, the USACE Pacific Division gave IPOP the sought after permit. However, without the State of Alaska’s DNR mining permit, IPOP cannot proceed.

IPOP can appeal the state’s decision within 20 calendar days. The appeal must be made to the DNR commissioner before IPOP can sue the state.

The Nome Nugget

PO Box 610
Nome, Alaska 99762
USA

Phone: (907) 443-5235
Fax: (907) 443-5112

www.nomenugget.net

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