Rise Gold Provides Information on Technical, Regulatory, and Environmental Aspects of the Idaho-Maryland Gold Project
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Rise Gold Provides Information on Technical, Regulatory, and
Environmental Aspects of the Idaho-Maryland Gold Project
May 17, 2019 – Vancouver, British Columbia – Rise Gold Corp. (CSE: RISE, OTCQB: RYES)
(the “ Company”) is pleased to provide information regarding technical, regulatory , and
environment aspects of the Idaho-Maryland (“I-M”) Gold Project (“Project”).
Exploration drilling is ongoing and results from recently completed holes will be announced
pending finalization of assay results. Visible gold has been noted in several of the veins intersected.
The Idaho-Maryland Gold Mine, located entirely on private land, was once the second largest lode
gold producer in the entire United States with a total past production of 2,414,000 oz of gold at an
average mill head grade of 0.5 oz per ton (17.1 gpt) from 1866-1955 and production rates of up to
129,000 oz of gold per year.1
The major vein systems include:
Idaho #1: past production of 935,000 oz gold at a mill head grade of 1.12 oz per ton (38.6 gpt)
Idaho #3: past production of 686,000 oz gold at a mill head grade of 0.60 oz per ton (20.4 gpt)
Brunswick: past production of 793,000 oz gold at a mill head grade of 0.27 oz per ton (9.3 gpt)
The Company strongly believes that the I-M Gold Project has the potential to once again become
a significant producing gold mine.
The Company acquired and invested significant capital into the Project because Nevada County is
a superior mining jurisdiction with respect to mineral resource potential and political and
regulatory risk.
In conjunction with its ongoing and successful exploration drill program, the Company has been
investigating various aspects of the Project in relation to future permitting for commercial mining.
This work has further reinforced the Company’s confidence that a major underground gold mine
could be permitted and built in a timely manner with a predictable outcome.
1 AMEC Foster Wheeler Americas Limited. Technical Report on the Idaho-Maryland Project. June 2017.
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Land Title
The Property consists of mineral rights on 10 parcels, including 55 subparcels, totaling 2,800 acres
(1,133 hectares) with all mineral rights being contiguous below 200 ft (61 m) of surface.
Mineral rights pertain to all minerals, gas, oil and mineral deposits of every kind and nature
beneath the surface of all such real property, together with all necessary and convenient rights to
explore for, develop, produce, extract and take the same, subject to the express limitation that the
fore-going exception and reservation shall not include any right of entry upon the surface of said
land, as expressed in the recorded Quitclaim Deed.2
The company owns 175 acres of M -1 Light Industrial zoned private surface land. The Company
believes this surface land would be sufficient to re-open the Idaho-Maryland Mine.
Existing Infrastructure
The Idaho-Maryland Gold Project has important infrastructure in place which would be beneficial
to re-opening of an underground mine.
The New Brunswick vertical shaft is believed to be in good condition and extends to 3,400 ft below
surface. A concrete shaft bin remains in place, although the headframe and hoist have been
removed. The previous headframe was 135 ft in height and designed to accommodate hoisting of
2,000 tons per day from 5,000 ft depth. The previous hoist used 6 ton skips at a hoisting rate of
1,250 ft per minute. The historic hoist capacity is likely sufficient for a new operation but could
be augmented by increasing hoisting speed or skip capacity.
The shaft has stations at thirteen levels from the B580 to the B3280 levels. Skip loading pockets
are present on six major levels at the B1300, B1450, B1600, B1880, B2300, and B3280 levels. It
is believed that most tunnels in the volcanic rocks of the Brunswick M ine should be in relatively
good condition due to the geotechnical characteristics of this unit. There are numerous tunnels on
each level which can be re-used and provide close access to numerous zones of known high-grade
gold mineralization.
The Rise Gold property adjacent to the New Brunswick shaft previously hosted a major commercial
lumber mill and 55,000 ft2 of industrial buildings. All buildings have subsequently been removed. The
Property has a leveled ar ea of approximately 40 acres and a large water-recycle pond which was
constructed in 1988. The pond has a surface area of approximately 3.7 acres and a design capacity of
approximately 40 acre-feet. Records indicate that the pond is lined with a 2 ft layer of clay and was
designed by a registered civil engineer.
2 AMEC Foster Wheeler Americas Limited. Technical Report on the Idaho-Maryland Project. June 2017.
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Conceptual Project Design
The Company has evaluated various aspects related to the potential reopening of the mine in the
future.
A general description of a conceptual project design , at similar pr oduction levels as historically
achieved, is provided as follows:
1) Deep underground mine with production below 1,000 ft from surface.
2) Throughput of +1,000 tons per day, the historic production rate at shutdown in 1942.
3) High-grade gold mine. Scheduling mining of highest -grade gold mineralization available
preferentially.
4) Re-use of New Brunswick vertical mine shaft. Shaft is from surface to 3,400 ft depth.
5) Construction of new headframe at New Brunswick shaft.
6) Construction of a second shaft from underground to surface, constructed in segments using
Alimak raising or raise bor ing. Second shaft to be used as a service shaft and secondary
escape and extend to the B3280 level.
7) Construction of two ventilation raises by raise bor ing from surface to the B900 level to
allow mechanized mining.
8) Construction of new m ineral process plant on surface producing gold concentrates using
gravity and flotation concentration methods.
9) Cemented paste backfilling of underground voids.
10) Filtered (dry) sand-tailings and crushed rock to be used as engineered fill.
No liquid tailings or tailings dams.
Zoning Regulations
The Property is located on private land in Nevada County, California and is therefore subject to
the Nevada County Land Use and Development Code (“the Code”).
Subsurface Mining is an allowed use subject to approval of a Use Permit.3
Surface work incidental to an underground mine is an allowed use in M1 districts subject to
approval of a Use Permit and Reclamation Plan and where the property is zoned ME.4
Nevada County Use Permitting
It is anticipated that Nevada County would be the lead agency responsible for processing and
approval of a commercial mining operation at the I-M Gold Project.
3 Nevada County Land Use and Development Code Section L-II 3.21
http://qcode.us/codes/nevadacounty/view.php?topic=3-ii-3-l__24&frames=on
4 Nevada County Land Use and Development Code Section L-II 3.22
http://qcode.us/codes/nevadacounty/view.php?topic=3-ii-3-l__24&frames=on
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Although other permits from other government agencies would be required, the Use Permit from
Nevada County is the only discretionary permit required.
Nevada County processes numerous Use Permits every year, averaging 10- 12 new applications
per year.
Nevada County has a recent track record of approving and granting Use Permit’s for mining
projects, including:
Newmont Mining Corporation – North Star Water Treatment Facility
Use Permit granted in 2015.
Discharge of treated mine water from the underground North Star Mine into Wolf Creek
https://www.mynevadacounty.com/1102/North-Star-Water-Treatment-Facility
Hansen Brothers Greenhorn Creek Mining Expansion
Use Permit granted in 2017.
Expansion of sand and gravel mine located within and on the banks of Greenhorn Creek
https://www.mynevadacounty.com/597/Hansen-Brothers-Greenhorn-Creek-Mining-E
Blue Lead Gold Mine
Use Permit granted in 2015.
Open pit gold mine with 74 acres of surface disturbance
https://www.mynevadacounty.com/DocumentCenter/View/15226/Blue-Lead-Mine-Public-
Hearing-PDF?bidId=
Previous Permitting by Emgold
Emgold Mining Corporation previously held a lease on the I -M Project and engaged in several
permitting efforts in relation to the Project.
In 1995 they successfully completed and received a Use Permit for the dewatering of the I-M Mine.
This permit was un-used and subsequently expired in 2001.5
In 2005, Emgold commenced permitting of a large -scale ceramic tile manufacturing and
underground mine at the I-M Project. Emgold proposed a 2,400 ton per day shallow underground
room and pillar mine (starting at 500 ft below ground surface) in the meta-andesite volcanic rocks
to provide feed stock for ceramic tile manufacturing. The factory was proposed to be annexed into
the City of Grass Valley and the City was the lead agency for the project.
The only significant and unavoidable impact identified in the Environmental Impact Report
(“EIR”) was air quality emissions 6 related to the intensive use of energy to manufacture ceramic
tiles from the volcanic rocks mined underground. The proposed ceramic tile manufacturing would
have used 2.3 billion ft3 of natural gas per year at the full production rate (18.5 MW) 7.
5 AMEC Foster Wheeler Americas Limited. Technical Report on the Idaho-Maryland Project. June 2017.
6 Environmental Science Associates. Idaho-Maryland Mine Project, Environmental Impact Report. Oct 2008 .
7 AMEC Americas Limited. Preliminary Assessment Technical Report Idaho-Maryland Mine. November 2004.
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Emgold may have succeeded in permitting its proposed ceramic tile ma nufacturing and
underground mine; however, they ran out of funds necessary for the processing of the Final EIR.8
Emgold enjoyed strong public support for their proposed project. In 2006, an independent opinion
poll showed 72 percent of Grass Valley residents in favor of the project and only 12 percent not in
favor.9
Rise Gold Corp has no interest in ceramic tile manufacturing and therefore the air quality effects
of ceramic tile manufacturing have no relevance to the I-M Gold Project.
Employment and Economy in Project Area
The Company estimates a 1 ,000 tpd selective mining operation at the I -M would require ~ 300
direct employ ees. The mining industry has an indirect multiplier of ~3.9, meaning that 3.9
additional jobs are created from every direct job. 10 Using this factor, total employment created
can be estimated at 1,500 persons, the majority of which would be in Nevada County.
The I-M Project is in an area of depressed economic conditions with high unemployment and
poverty rates and thereby classified as a Qualified Opportunity Zone Tract. In the area surrounding
the I-M Property, the unemployment rate is reported at 13.5% w ith a poverty rate of 31.3%. The
adjacent tract area, including the City of Grass Valley, is reported to have an unemployment rate
10.7% with a poverty rate of 23.3%11. The average unemployment rate in United States is currently
3.8% with a poverty rate of 12.3% 12,13. Grass Valley has a population of ~13,000 and Nevada
County has a population of ~100,000 people.
Mine Water Discharge
The Company’s consultant has conducted detailed sampling in the New Brunswick S haft of the
water currently flooding the I-M Mine. The primary constituents of interest in the water samples
are iron and manganese which are found at concentrations of approximately 1,600 micrograms per
liter and 270 micrograms per liter, respectively.
The water quality of mine water discharge is subject to waste discharge requirements set forth in
General Order R5 -2016-007614. The General Order NPDES permit is advantageous as an
8 https://docs.wixstatic.com/ugd/6bd037_6d5eedf818f74c31a7d47dbbc1cc05ac.pdf
9 https://docs.wixstatic.com/ugd/6bd037_ab6143bb765f4aa785d9c8350ca0c542.pdf
10 https://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/
11 https://www.cims.cdfifund.gov/preparation/?config=config_nmtc.xml
12 https://www.bls.gov/news.release/pdf/empsit.pdf
13 https://www.census.gov/quickfacts/fact/table/US/PST045218,
14 https://www.waterboards.ca.gov/rwqcb5/board_decisions/adopted_orders/general_orders/r5- 2016-0076.pdf
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individual NPDES discharge permit would not be required, resulting in a predictable outcome for
permitting, along with significant time and cost savings,
The water quality requirement s under the General Order are similar or identical to California
drinking water quality standards.
The Company ’s consultant performed bench scale tests which show the mine water can be
effectively treated by aeration followed by filtration through a manganese dioxide filter. This is a
simple and common water treatment method. The post -treatment water quality would meet or
exceed the General Order requirements and California drinking water quality standards.
The Company has evaluated several discharge locations and believes a discharge of treated mine
water to Wolf Creek would result in a predictable permitting outcome. Wolf Creek has large flows
year-round of approximately 22,000 gpm. Wolf Creek is the point of discharge for numerous users
included the Nevada Irrigation District, Grass Valley Waste Water (sewage) Plant and Newmont
Mining’s North Star mine water discharge. Newmont was recently granted a permit to discharge
treated mine water into Wolf Creek (2015) using a passive water treatment system. Newmont’s
approved water discharge is to the same creek and water quality criteria as would be proposed at
the Idaho-Maryland.
The historic groundwater inflow into the I-M Mine has been estimated to be in the range of 500 –
1,200 gpm15 and therefore would be insignificant in comparison to the current flow in Wolf Creek.
Ground Water Hydrology
Exploration drilling has shown the mineralized veins at the I-M Project are hosted in competent
meta-andesite volcanic rocks. The hard rock lithology is relatively impermeable, and mine
dewatering is not anticipated to have a significant effect on ground water levels.
Hydraulic conductivity decreases by several orders of magnitude (i.e. factors of 10) with depth.
Shallower depths have higher hydraulic conductivity where more fractures are prevalent. As depth
increases fractures may be either less common or have smaller aperture (open) widths. As reported
by Todd Engineers (2007), hydraulic conductivity values greater than 1.0 gallon per day per square
foot (gpd/ft2) are generally found in wells shallower than 200 ft deep. In wells deeper than 620 ft,
no hydraulic conductivity values greater than 0.1 gpd/ft 2 were identified, and most values were
less than 0.01 gpd/ft2.16
The impermeable nature of the volcanic rocks and vein fractures is demonstrated at the Union Hill
Mine. The Union Hill Mine is n ot connected but is in close proximity to the Brunswick Mine.
During historic operations, t he Brunswick Mine workings were completely dewatered while the
Union Hill M ine was flooded to within 20 ft from surface 17. The historical evidence shows that
15 Environmental Science Associates. Idaho-Maryland Mine Project, Environmental Impact Report. Oct 2008.
16 Todd Engineers. Hydrogeologic Assessment Idaho-Maryland Mine. August 2007.
17 Clark, Jack. Gold in Quartz – The Legendary Idaho Maryland Mine. 2005.
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the dewatered mine working of the Brunswick Mine had very little or no effect on the water level
in the Union Hill Mine. The Brunswick Mine workings were driven on the same fractures which
hosted the veins and within a pr oximity as close as 135 f t. The mines remain hydraulically
unconnected with the water level in the Union Hill Mine currently 165 ft above the water level in
the Brunswick Mine.
Historically, there were concerns about several dozen domestic water wells sur rounding the
Brunswick Mine underground workings. The Company’s consultants are currently engaged in a
detailed study of the local groundwater hydrology. The Company does not anticipate significant
impacts to groundwater from the dewatering of the mine. In addition, the Company could provide
an extension of the potable water utility to this area at a relatively minor cost, which would
guarantee that water supply to near -by residents would not be interrupted. An Environmental
Impact Report for dewatering the I-M Mine, which studied hydrogeology in detail, was previously
completed and Nevada County previously approved the Use Permit for the dewatering of the I-M
Mine18.
The Idaho- Maryland Mine has been flooded and successfully dewatered multiple times in its
history. Previous dewatering was done without the advantage of modern pumps. There is no reason
to expect significant difficulty in dewatering the underground workings.
Mineral Processing
Extensive historical information is available on mineral processing at the I-M Mine. Historic gold
recovery of 96% was achieved at a coarse grind of ~80% passing 190 micron. Most gold was
recovered by gravity (~67%) and the remainder by flotation which produced a concentrate
averaging 3.9 oz gold per ton (134 gpt)19.
Historically, the I-M Mine produced gold dore on site. Due to the high value of the concentrate,
the Company does not believe it necessary to produce dore onsite which would eliminate any need
to use cyanide leaching. The Project would therefore not use cyanide and would not use mercury.
The mineralized veins at the I -M Project contain only minor sulphides , primarily pyrite, and the
great majority of sulphide minerals would be shipped offsite in the gold concentrate.
Geochemistry
Extensive sampling of the historic tailings on t he Company’s Centennial Industrial Site was
undertaken by previous operators. All fifty samples taken from historic tailings show no elements
of concern environmentally. Arsenic values range from <5 to 33 ppm with an average of 9 ppm.
18 https://www.northernminer.com/news/emperor-lands-grass-valley-permit/1000095829/
19 AMEC Foster Wheeler Americas Limited. Technical Report on the Idaho-Maryland Project. June 2017.
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Kinetic testing by pr evious operators in 2010 shows the historic tails and the meta- andesite
volcanic rock to be non-acid generating and non-metal leaching.
Some materials on the Centennial Site have elevated arsenic which are likely derived from historic
custom milling of ore delivered from other mine sites. The Company is currently preparing plans
to clean up these materials to re-develop the site as usable industrial real estate.
Rise is currently conducting geochemical test work on rock samples derived from its exploration
drill core. Trace elements from 40 samples in the meta-andesite volcanic unit show no elements of
environmental concern. Arsenic values range from 0.3 to 13.1 ppm with an average of 2.7 ppm.
Sulphur values range from 0 to 0.5% with an average of 0.15%.
Tailings/Rock Storage
The Company envisions that the processing plant would include a paste backfill plant with
approximately 50% of the finest tailings being used as underground backfill. The remaining sand-
tailings would consist of de-sulphurized fine sand with a minimum grain size of ~100 microns.
Barren rock from tunnelling in the meta-andesite volcanic rocks would be skipped to surface and
crushed. The crushed stone and sand could be combined to produce an engineered fill with no
environmental concerns.
There is area available on the Company’s land holdings which could be substantially improved by
placement of fill to create additional usable industrial land. The Company’s own lands could utilize
at least 10 years of engineered fill should the mine be put into production at the historic rate of
1000 tons per day.
Noise
The Company is confident that noise from a commercial mining operation at the Brunswick Site
can be mitigated to a level below the zoning requirements for Nevada County. Surface components
of the project would be enclosed in engineered insulated buildings. Enclosure allows for the
containment of noise and a predictable result at the property boundaries. During the current
exploration drilling program, the Company has achieved excellent noise mitigation from the use
of sound insulation and noise walls, reducing noise levels from 90 decibels at the drill head to less
than 50 decibels at its property boundaries and consistently within compliance of the County noise
regulations.
Traffic
An underground mining project would not generate a significant amount of traffic. The Brunswick
Site is adjacent to Brunswick Road. This road is a major local roadway with an estimated 15,000