Eastern Shore Forest Watch

Atlantic Gold springs an effluent leak, plugs a new mine, and sells itself to investors

Part of the tailings facility at the Touquoy gold mine. Photo courtesy: SMRA

This article first appeared in The Halifax Examiner on March 15, 2019.

By Joan Baxter

Atlantic Gold’s manager of environment and permitting, James Millard, calls it a “spill” or a “loss of control” caused by a “gasket failure.”

By whatever name, the event happened on the night of January 3, 2019, at the company’s open pit gold mine at Moose River. It involved 380,000 litres of contaminant-laced slurry, which flowed from the processing plant where ore is crushed and gold extracted, and down a trench underneath the double-lined 500-metre pipe that should have been carrying the effluent to the tailings pond.

The leaked slurry flowed into a lined pond that Millard says was developed and designed for leaks.

During an open house that Atlantic Gold held in Sheet Harbour on Thursday to showcase one of three new gold mines that it wants to open on the Eastern Shore, Millard told me the incident was reported immediately to Nova Scotia Environment, as the amount exceeded spill limits. He said the department has inspected the site and been working with Atlantic Gold.

Continue reading Leak at Moose River gold mine raises environmental concerns

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There’s a 21st century gold rush starting in Nova Scotia on Canada’s Atlantic coast, just as industrial gold mining is increasingly coming into disrepute around the world. It has been described as an “environmental disaster,” which often leads to contamination of water sources on which life depends. This is the second in a series of four articles on mining and quarrying in Nova Scotia. Earlier versions of these articles appeared in May and June 2018 in the Halifax Examiner and the Cape Breton Spectator. (I am pleased to say that this series of four articles has been shortlisted for an Atlantic Journalism Award in Excellence in Digital Journalism: Enterprise/Longform.)

Part 2. Going for gold

Screenshot of BNN interview of Atlantic Gold CEO Steven Dean (left) at the 2018 Prospectors and Developers Association of Canada (PDAC) convention.

The CEO and chairman of Vancouver-based Atlantic Gold Corporation, Steven Dean, a man with a history of international coal and metal mining and former president of Teck Cominco, was being interviewed by Andrew Bell of the Business News Network (BNN).[1] Dean was talking up his company’s first gold mine, named Touquoy after a French miner who worked the deposit in the late 1800s, which had just gone into production in Moose River, Nova Scotia.

The interview was held at an ideal venue for Atlantic Gold to showcase its new open-pit gold mine, the first ever in Nova Scotia: the 2018 convention of the Prospectors and Developers Association (PDAC) of Canada in Toronto, the global mining industry’s “event of choice.”

Bell expressed amazement at the low cost – $550 – of producing an ounce of gold at the Touquoy mine. Dean told him the mine would produce about 90,000 ounces a year which, at current gold prices, would make it a “profitable mine” with about $90 million in “operating cash flow.” And, said Dean, Atlantic Gold planned to enter its second phase of operations by 2022, with more mines operating in the area, producing a total of 200,000 ounces a year. Continue reading Fool’s gold: the resource curse strikes Nova Scotia (Part 2)

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