Presented By:

Julie Christiansen

Kennecott’s “Model” Mine Tests Find Significant Toxins

Flambeau Mining Co., a subsidiary of Kennecott Mineral Co., is showing high levels of toxic pollutants, 14 years after mining operations ceased. Flambeau was an open pit mine that operated from 1993-1997 and produced 181,000 tons of copper, 3.3 million ounces of silver and 334,000 ounces of gold. Kennecott has quoted Flambeau as a model of mineral removal with no evidence of environmental damage as well as “protecting the environment from adverse impact.” Officials from the DNR say they’ve been removing contaminated soil since 2003. The Water Resources Protection Council has filed a lawsuit in January 2011 to dispute Flambeau’s illegal dumping of toxic pollutants since 1998. The Wisconsin Mining Association has regarded the Flambeau mine as meeting the state standards of opening and closing under state law despite the non-existence of baseline water quality readings before mining even began.

Testing exposed 41% of 98 samples taken had two to four times more copper and zinc than standards allowed, set by the state to protect aquatic life. The DNR is deciding whether to classify the water as impaired, which would begin a process of cleaning up the stream, but in some cases would require property owners to pay for this procedure.

Philip Fauble, Mining Program Coordinator for the DNR stated “We weren’t aware of these elevated copper levels that were out there. Once they were detected, Flambeau took proactive steps to control this.” However, according to company documents, high copper levels were in fact discovered in 2003 on a rail spur during reconstruction of a roadway in the vicinity. Two feet of soil, about 7,400 tons were extracted. Flambeau’s reclamation plan includes removing about 1-acre pond area that has shown high levels of copper and zinc and has already spent about $20 million on reclaiming the property.

“It is important to note the elevated levels of toxicity, since this mine has been touted as an example that mining of this type can be done without degrading the environment,” says Emily Whittaker, Executive Director of the Yellow Dog Watershed Preserve. Other communities in the Great Lakes basin are looking at this situation with much interest, since there has been a fervent increase in mineral exploration and extraction applications. “Our group would like to see how our state agencies react to this and if it would change their perspective on whether new projects will live up to everyone’s expectations.”

To read a full article on this subject: http://www.jsonline.com/news/wisconsin/tests-find-toxins-at-flambeau-mine-133051073.html

 MARQUETTE, MICH. (December 12, 2011) – A coalition of groups is appealing a court decision that has allowed a dangerous mine to proceed in Michigan’s Upper Peninsula—despite the threat the mine poses to water quality, the Great Lakes and one of the region’s last spawning grounds for the coaster brook trout. 

 The Huron Mountain Club, Keweenaw Bay Indian Community, National Wildlife Federation and Yellow Dog Watershed Preserve filed the motion with the Michigan Court of Appeals over the weekend. The groups are opposing the mine on the grounds that it poses unacceptable risks to water and air quality—and that it could collapse, endangering workers and the river it is underneath.

 “This mine is the first to be permitted under Michigan’s new mining law, and we must ensure that the law’s protections of human health and the environment are honored and applied,” said Michelle Halley, attorney for the National Wildlife Federation. “So far, they have not been and that is why we are seeking leave to appeal. Many more mines are in the queue and this is a precedent-setting case.”

 The groups are appealing a decision by the Ingham County Circuit Court that allowed international mining company Rio Tinto to start mining activities on Eagle Rock—a site considered sacred to Native Americans.

 “It is very important to the Keweenaw Bay Indian Community to protect Eagle Rock as a sacred place,” said Chris Swartz, President, Keweenaw Bay Indian Community, “and we are hopeful that this appeal will result in the Court of Appeals reversing the decisions of the circuit court.”

 The type of mine being proposed—in which nickel and copper deposits are extracted from sulfide ores—poses severe risks to the environment. One byproduct of so-called “hard rock” or “sulfide ore” mining is sulfuric acid, which has proven deadly to rivers, streams and wildlife in other parts of the country. Rio Tinto, the company overseeing the project, has broken Clean Water Act laws dozens of times in mines they have controlled in other states.

 Now, the Michigan Court of Appeals will decide whether to take the case. There is no date by which the court must make its decision.

 “We will continue to put forth our concentrated efforts to ensure that this area remains unharmed and protected for everyone’s enjoyment, not just for special interests,” said Emily Whittaker, executive director of Yellow Dog Watershed Preserve.

Arguments were made in June 2011 by petitioners and respondents of the appeals case. The decision to uphold the issuance of the permits came with a lengthy document regarding the judge’s opinion. It is attached below.

Upon reviewing the opinion, YDWP staff found the verbage to be less than unbiased. Many arguments that the petitioners made were simply considered null and void because there was a counter argument by the respondents. Additionally, for almost each argument the petitioners made, the opinion statement contained the counterargument, as well as information from cross-examination of only the petitioner’s witnesses.

For those of us who live here and will be left to deal with the actual outcomes, the court’s opinions of the Kirtland’s Warbler as a “handful of birds not nesting in the area” are demeaning. The court also agreed with Kennecott’s biologist that the Yellow Dog Plains contain no critical habitat for the Kirtland’s Warbler. Yet many of the surrounding jack pine forests on the plains are specifically managed for the warbler’s habitat.

YDWP encourages supporters to read the opinion for themselves and to assess whether a fair and impartial trial took place.

Final_Appellate_Decision_11-23-11

According to Orvana Resources, the company entered into mineral leases covering 1,759 acres in an area located in the Upper Peninsula 30 kilometres southwest of the inactive White Pine Mine, which operated between 1953 and 1996.  Based on their calculations, the company targets production start up around 2013.

It is not unlikely to see a cascade of mining applications come to the MDEQ now that Kennecott has begun drilling. Many companies openly admit that they wait for larger companies to test the system, then the smaller ones come in after the most resistance occurs. There are numerous deposits throughout the UP, many within the Yellow Dog, Salmon-Trout, and surrounding watersheds. These deposits are being explored by companies such as Prime Meridian, Kennecott, Aquila, and Hudbay.

Attempts to halt the drilling were made by co-petitioners in the Ingham County Circuit Court. A motion of stay was requested of Judge Paula Manderfield, who is currently reviewing two appeals cases from the petitioners. The stay was requested in order to prevent damage to the site before a ruling on the appeals case was made. Judge Manderfield did not grant the stay, citing that Eagle Rock was not a religious site. The appeals case is still open and is expected to be ruled on sometime this fall.

Michelle Halley, an attorney for the National Wildlife Federation, said Manderfielddid not consider the rock outcropping near the mine portal, known as Eagle Rock, a sacred site. Emily Whittaker, of the Yellow Dog Watershed Preserve, said, “This denial, to me, reflects more on the state of the judicial system and its ability to be swayed by politics than a decision made through unbiased justice.”

The groups will continue to work to preserve the area as well as await a decision in the appeals case.

The Huron Mountain Club, Keweenaw Bay Indian Community, National Wildlife Federation, and Yellow Dog Watershed Preserve filed the motion to stay Rio Tinto’s permits  with the Ingham County Circuit Court. If granted, the stay would prohibit Rio Tinto from blasting Eagle Rock—a sacred site that sits over a proposed nickel mine.

Extracting nickel from the site poses extreme risks to water quality, wildlife and recreation. The metals are embedded in sulfide ores, which produce sulfuric acid when exposed to moisture and air. The so-called acid mine drainage has devastated natural resources in other parts of the country. And the company overseeing the project—Rio Tinto—has broken Clean Water Act laws dozens of times in mines they have controlled in other states.

Community and conservation partners have challenged the mine in court, arguing that it presents  unacceptable risks to water and air quality—and that it could collapse, endangering workers and the river it is underneath. The court challenge is currently under appeal. The motion for a stay is necessary because the mining company intends to blast into Eagle Rock on or near September 14, 2011, even though the judge has not issued a final ruling on the appeal.

Commenting on the motion to stay, conservation groups said: “Without this emergency stay, Rio Tinto could begin blasting Eagle Rock before the judge has had a chance to determine whether the mine is safe,” said Andy Buchsbaum, regional executive director of the National Wildlife Federation’s Great Lakes office. “The serious questions we have about this mine need to be addressed—and allowing the company to blast away in one of Michigan’s most pristine and important areas will only further jeopardize the region’s water quality, tourism industry, wildlife and quality of life.”

“My people have prayed and held ceremonies at Eagle Rock since time immemorial,” said Susan LaFerniere, a member of the Keweenaw Bay Indian Community.  No one should be allowed to blast it apart.  I hope the judge grants this request.” 

Eagle Project as of 8-4-2011

Why I’m Fasting to Halt Construction of the Eagle Mine

Friends,

On July 9, I began a water-only, open ended fast to protest the construction of the Eagle Mine that is being built in the Yellow Dog Plains of Marquette County by Kennecott Eagle Minerals.  Kennecott is a subsidiary of the London based mining giant, Rio Tinto. 

I’m undertaking the fast as a part of the U.P. Grassroots Campaign to Defend our Water and Stop the Eagle Mine organized by WAVE  (Water Action Vital Earth) and SWUP (Save the Wild UP).

The campaign. is urgently required. It may be our last, best chance to stop the mine.  Kennecott has indicated that it may begin blasting the mine’s portal in mid-September. 

The goal of the campaign is to arouse, inspire, and mobilize our citizens to make a renewed effort to block the mine.  Its specific objective is to convince Governor Snyder to issue an executive order to halt work on the mine and call for a complete third party impact study on every aspect of the Eagle Mine project. 

The mine is a badly flawed project. It is poorly designed and may collapse.  The review of the Kennecott application by the Michigan Department of Environmental Quality ignored the design deficiencies, suggesting that it was either incompetent or in collusion with Kennecott.  Furthermore, metallic sulfide mines are inherently risky.  There has never been one that hasn’t contaminated the surrounding water sources.

In March, Governor Snyder refused an earlier request by WAVE to halt construction on the mine and order an EIS.  In our letter we said:

Allowing the development of the Eagle mine to continue or to close the mine down is, quite simply, a question involving life and death choices.  Physicians and public health professionals have testified repeatedly that our health and the health of our children is being placed at great risk by the Eagle mine for generations to come. We think you would agree that we should not compromise the lives of our people for a short term economic gain.

I was morally outraged by his decision. The decision precipitated the Campaign 

I am fasting to support the goal of the campaign.  It is my way to say “NO” to the unknown and possibly devastating consequences of the mine and “YES” to protecting our water and assuring a sustainable future for our children. 

As a person of faith, I perceive the fast as a way of nonviolently placing myself between the Eagle Mine and our precious water resources and the people whose health and well being depend on them.  If the Governor will not take responsibility for these matters, then we-the-people must do so.    

Perhaps the Governor will listen and give some thought to his decision.  Perhaps his conscience will tell him that he should do the right thing and suspend work on the mine. 

And, hopefully, the people of Michigan will hear WAVE’s call to join the Campaign and condemn the mine, demanding that the Governor call for a halt in its construction.

I hope also that the campaign and my fast not only halt the Eagle Mine but serve as a catalyst for concerted action across the western UP to anticipate and resist strongly future mines that are planned for our region.  There has been and continues to be extensive exploration for new mines.  Recently Kennecott Minerals began exploratory drilling in the Ottawa National Forest.

One further thought.  I believe the mine is a symbol of the consequences of an alliance between the corporate sector of our economy, dominated by multi-national giants like Rio Tinto, and our state government that has effectively disenfranchised we-the-people and shredded the social contract.  We no longer have an effective voice in the most basic decisions that affect our health and well being.  How did this come about?. What is to be done about it?  How are we to regain a voice in these decisions at every level of government?  My conviction is that it can only be done by creating our own alliances, finding common ground, and working together to regain our voice.  I invite other thoughts about this.

I look forward to hearing from you.  Contact me at the email address above.  You can also find me Monday through Thursday at 4:30 PM in front of the main Marquette post office on the corner of Washington Ave. and  N.  Third St. 

In peace,

Scott Rutherford

Biodata
I’m a 77 year old resident of Hancock, Michigan.  I’m a graduate of Dartmouth College and served three years in the U.S. Navy.   After working for  A.I.D  for six years, I went to work for the Economic Development Administration from which I retired in 1986.  I am one of the founders of Omega House, a home for the terminally ill in Houghton.  I am married to the artist, Joyce Koskenmaki.  I have three children from a previous marriage and five grandchildren.  I am a member of Good Shepherd Lutheran Church in Houghton, Michigan..

Contact Information
Save the Wild UP
PO Box 562
Marquette MI 49855 
906.228.4444 
info@savethewildup.org
scottru33@yahoo.com 

Scott Rutherford and supporters

DEFEND OUR WATER and STOP THE EAGLE MINE: Save the Wild UP/WAVE Campaign Kickoff this Saturday, July 9, at 1:00 PM. Speakers, activities, and informational table will be at Marquette County Court House. The day will continue with a RALLY at the Mine Site Gate at 4:30 pm and Food and Social in Big Bay. Fireworks will be at 10:30 pm on Squaw Beach.

Ceremoninal Long Walk on the Yellow Dog Plains: On Sunday, July 17 at noon, there will be a commemoration of Eagle Rock as a sacred site – both to Tribal Nations and to the people who have long held Eagle Rock as a symbol of this effort to stop this mine on public lands.  We need people to gather and give one step, one half mile, two miles, four miles, or whatever they are able, to the effort to walk around this site three times. More details can be found by clicking on the document below.

Long_Walk_of_the_Drum,_7-15-11[1]

March 7, 2011
Aquila Announces Acquisition of Reef Gold Project
TORONTO, ONTARIO–(Marketwire – March 7, 2011) – AQUILA RESOURCES INC. (TSX:AQA)(FRANKFURT:JM4A) (“Aquila” or the “Company”), is pleased to announce the acquisition of the Reef Gold Project (“Reef”) located in Marathon County, Wisconsin. The Reef hosts a high grade (+10 g/t gold) historical resource which is open in all directions with the potential for significant expansion. The acquisition of Reef is part of a broader strategy to accumulate 100% owned high quality gold assets in the Great Lakes region.

The Reef area was the focus of historic exploration by Noranda Exploration and others in the 1970′s and 1980′s. Noranda identified several zones of gold mineralization in the Reef area and calculated a non NI 43-101 compliant historic resource estimate of 454,600 tons of 10.6 g/t gold and 0.28% copper. In the resource estimate, mineralization at the Reef Project consists mostly of pyrrhotite, pyrite, and chalcopyrite with native gold, electrum, and telluride minerals within quartz-sulfide veins and vein selvages. Other, minor sulfides include sphalerite, chalcocite, cubanite, and rare molybdenite. Using a cut off of 3.4 g/t gold individual lenses have an average true thickness of 2.4 meters with reported grades ranging from 3.4 g/t to 47 g/t.

Aquila believes the mineral resource estimate is relevant and is based on a reliable historical report. The Company has acquired and verified Reef drill core for geological characteristics and gold content.

Aquila’s review of historic drilling information has determined that projections of the mineralized zones to surface, at depth, and along strike leave significant room for resource expansion. A 2500 meter, 17 hole drilling program is planned to define the extent of mineralization. The initial focus of drilling will target extensions of previously identified gold zones to surface where oxidation and weathering may have produced enrichment and elevated gold grades.

Aquila has acquired 356 acres of mineral rights and 276 acres of privately held surface rights at Reef covering the extent of previous drilling and potential extensions of mineralization. The mineral rights acquired by Aquila enable it to acquire a 100% interest in the property which is subject only to the land owners 2% production royalty. The first year land payment is $32,217 with future payments at the option of Aquila based on an approximate cost of $50 per acre. Aquila has now completed a VTEM airborne geophysical survey over the project area to guide further exploration and evaluate the excellent potential for additional gold and base metal mineralization.

The State of Wisconsin hosts several significant unmined ore deposits. Aquila is aware of the significant permitting challenges in the state – in particular the delays that historically prevented the commissioning of some of these deposits. Aquila remains committed not only to finding projects with robust economics but also to environmentally responsible practices in strict conformance with all local, state and federal laws and guidelines. Aquila will continue to practice a good neighbor policy and is committed to working with local communities to protect their diverse interests in addition to providing local jobs, taxes and other social and economic development opportunities.

Reef is located approximately 160 km from the Back Forty Project which is being developed and explored under a Joint Venture between Aquila and HudBay Minerals (TSX:HBM)(NYSE:HBM). Aquila is acquiring and funding Reef as part of its initiative to acquire and develop significant 100% owned gold assets. Aquila is also acquiring and exploring for base metal assets in the Great Lake region with HudBay under an Exploration Alliance. Two projects have been acquired to date that are prospective for high grade nickel-copper “Eagle type” mineralization (see Aquila press release dated February 16, 2011). Under the Exploration Alliance, funding of up to $2 million per alliance project in initial expenditures will be provided by HudBay to earn a 50% interest.

Silver Creek Drill Results

Aquila also announced results of a six hole drilling program at the Silver Creek prospect in the Marquette Greenstone Belt in the Upper Peninsula of Michigan. Significant intercepts include:
  –  45.5 meters of 0.49 g/t gold including 8.45 meters of 1.22 g/t gold and    1.95 meters of 2.93 g/t gold in SC-11-01. –  14.5 meters of 0.24 g/t gold in SC-11-04 –  18.45 meters of 0.28 g/t gold in SC-11-05

The Silver Creek area is located along the Dead River Shear Zone, a broad zone of shearing, carbonate alteration and gold mineralization in the northern portion of the Marquette Greenstone Belt that hosts numerous gold occurrences. About 1500 meters of follow up drilling is scheduled for the Silver Creek area as well as Silver Creek West (2 kilometers west of Silver Creek) where prior drilling by Callahan Mining Corp. estimated a non 43-101 compliant historic resource of greater than 1 million tons of 1.3 g/t gold at surface.

Quality Assurance and Quality Control

Exploration core drilling by Aquila Resources was NQ size. The core was logged and mineralized intersections were marked for sampling and assaying by geologists and geo-technicians employed by Aquila Resources Inc. and the HudBay Aquila Joint Venture. The marked intersections or intervals were sawn in half by a diamond saw and one-half of the core was placed in sample bags and tagged with unique sample numbers, while the remaining half was returned to the core box for storage. Each bagged core sample was transported to Minerals Processing Corporation’s sample prep lab in Carney, Michigan where it was dried, crushed and pulverized and a 250-gram sample was prepared and split, with one split for assaying at Inspectorate Labs in Sparks, Nevada. Strict sampling and QA/QC protocol are followed, including the insertion of standards and blanks in the sample stream on a regular basis. Sample intervals are typically 1.5 meters. Analytical method for gold is fire assay with atomic adsorption finish and gravimetric finish for samples greater than 3.0 g/t gold. All other elements are analyzed by ICP with silver over limits (greater than 200 g/t) analyzed by fire assay/gravimetric finish and base metal over limits analyzed by AAS.

Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats, and externally through national and international programs. This news release provides core lengths and estimates of vertical thickness only. True widths are not provided. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length.

Thomas O. Quigley is the Qualified Person for Aquila as described in National Instrument 43-101 who is responsible for contents of this release.

More information about Aquila and the Back Forty Project, including updated drilling information, can be found on the Company’s website at www.aquilaresources.com

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Shares Outstanding: 84,994,850
 
CONTACT INFORMATION:
Aquila Resources Inc. (Toronto)
Robin Dunbar
CFO
416-203-1404
rdunbar@aquilaresources.com

or

Aquila Resources Inc. (U.S.)
Thomas O. Quigley
President
906-753-9602
tquigley@aquilaresources.com