Wharf Expansion Project Mine Permit Application

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Wharf Expansion Project Mine Permit Application WHARF EXPANSION PROJECT MINE PERMIT APPLICATION Topical Report RSI-2184 Prepared in conjunction by Wharf Resources (USA), Inc. 10928 Wharf Road Lead, South Dakota 57754 and RESPEC P.O. Box 725 Rapid City, South Dakota 57709 prepared for South Dakota Department of Environment and Natural Resources 523 East Capitol Joe Foss Building Pierre, South Dakota 57501 February 2011 TABLE OF CONTENTS 1.0 APPLICATION .................................................................................................................... 1 1.1 STATEMENT OF PROCEDURAL COMPLETENESS ............................................. 2 1.2 PROJECT OVERVIEW ................................................................................................ 2 1.3 PERMITTING HISTORY ............................................................................................ 12 1.4 PROJECT DESCRIPTION PER SDCL 45-6B-96 ...................................................... 12 2.0 PROPERTY DESCRIPTION ............................................................................................ 15 2.1 COUNTY CONDITIONAL USE PERMIT BOUNDARY/ZONING .......................... 15 2.2 LEGAL RIGHT TO ENTER AND MINE ................................................................... 15 2.3 DETERMINATION OF SPECIAL, EXCEPTIONAL, CRITICAL, OR UNIQUE LANDS ........................................................................................................................... 16 3.0 BASELINE ............................................................................................................................ 17 3.1 GENERAL GEOLOGY AND DEPOSITIONAL ENVIRONMENT .......................... 17 3.1.1 Historic Mine Workings .................................................................................... 18 3.1.2 Future Exploration Potential ........................................................................... 19 3.1.3 Geochemical Characterization of Ore and Discard Rock ................................ 20 3.1.3.1 Acid Base Accounting (ABA) Test Results .......................................... 21 3.1.3.2 Whole Rock Analysis Results ............................................................... 26 3.1.3.3 Meteoric Water Mobility Test Results ................................................. 26 3.1.3.4 Humidity Cell Test Results .................................................................. 27 3.1.3.5 Nitrate Test Results .............................................................................. 28 3.1.3.6 Conclusions and Additional Testing .................................................... 28 3.1.3.7 Mitigation Plan for AGP Rock .............................................................. 30 3.2 SOILS ............................................................................................................................ 31 3.2.1 Introduction ........................................................................................................ 31 3.2.2 Discussion ........................................................................................................... 31 3.3 GROUNDWATER ......................................................................................................... 33 3.3.1 Proposed Groundwater Monitoring Program .................................................. 33 3.3.2 Groundwater Quality ........................................................................................ 34 3.3.2.1 Sulfate in Nevada Gulch ....................................................................... 35 3.3.2.2 Nitrate in the Process Area .................................................................. 36 3.3.3 Spring Survey ..................................................................................................... 38 3.3.4 Rock and Spent Ore Disposal ........................................................................... 39 i TABLE OF CONTENTS (Continued) 3.4 SURFACE WATER ...................................................................................................... 39 3.4.1 Proposed Surface Water Monitoring Program ................................................ 40 3.4.2 Surface Water Quality ....................................................................................... 40 3.4.3 Rock and Spent Ore Disposal ........................................................................... 41 3.4.4 Sedimentation, Erosion, and Drainage Control Structures ........................... 42 3.5 AIR QUALITY .............................................................................................................. 42 3.5.1 Introduction ........................................................................................................ 42 3.5.2 Historical Sampling Program ........................................................................... 42 3.5.3 Existing Sampling Program .............................................................................. 43 3.5.4 Air Sampling Results......................................................................................... 43 3.5.5 Meteorological Stations ..................................................................................... 44 3.5.6 Proposed Air Quality and Meteorological Monitoring Program .................... 45 3.6 VEGETATION .............................................................................................................. 45 3.6.1 Species of State and Federal Interest .............................................................. 46 3.7 WILDLIFE .................................................................................................................... 47 3.7.1 Introduction ........................................................................................................ 47 3.7.2 Wildlife Inventories ........................................................................................... 48 3.7.3 Bats ..................................................................................................................... 49 3.7.4 Raptors ................................................................................................................ 49 3.7.5 Owls .................................................................................................................... 50 3.7.6 Big Game ............................................................................................................ 50 3.7.7 Game Birds ......................................................................................................... 51 3.7.8 Song Birds and Small Mammals ...................................................................... 51 3.7.9 Reptiles and Amphibians .................................................................................. 51 3.7.10 Species of State and Federal Interest .............................................................. 52 3.8 AQUATIC RESOURCES ............................................................................................. 53 3.8.1 Introduction ........................................................................................................ 53 3.8.2 Aquatic Habitat .................................................................................................. 54 3.8.3 Fish Sampling .................................................................................................... 55 3.8.4 Macroinvertebrates ............................................................................................ 55 3.8.5 Periphyton .......................................................................................................... 56 3.9 CULTURAL RESOURCES .......................................................................................... 57 3.9.1 Previous Investigations ..................................................................................... 57 3.9.2 Current Investigations ...................................................................................... 59 ii TABLE OF CONTENTS (Continued) 3.10 NOISE STUDIES ......................................................................................................... 60 3.10.1 Summary of Noise Studies ................................................................................ 60 3.10.2 Noise Mitigation Strategies .............................................................................. 61 3.10.3 Blasting ............................................................................................................... 61 3.11 VISUAL ASSESSMENT .............................................................................................. 63 3.11.1 Visual Screening of Affected Lands .................................................................. 63 4.0 SOCIOECONOMIC ASSESSMENT ................................................................................ 65 4.1 KEY PROJECT PARAMETERS ................................................................................. 65 4.2 FISCAL TRENDS AFFECTING LAWRENCE COUNTY ........................................ 65 4.3 WHARF’S CONTRIBUTIONS TO THE LOCAL AND REGIONAL ECONOMIES ................................................................................................................ 67 4.4 TAX PAYMENTS.......................................................................................................... 67 4.4.1 Sales Tax ............................................................................................................ 67 4.4.2 Property Taxes ..................................................................................................
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