Water Supply Assessment Approval For Idaho-Maryland Mine Project

GRASS VALLEY, CA – Rise Gold Corp. reported that the Nevada Irrigation District’s (NID) board of directors has approved the Water Supply Assessment (WSA) for the Idaho-Maryland Mine Project. The WSA’s purpose is to perform an evaluation as established by California legislation, SB 610, codified at Water Code Section 10910. SB 610 requires detailed information regarding water availability to be provided to county decision-makers prior to approval of land use projects above certain acreage thresholds, including the Idaho-Maryland Mine Project. Today’s approval demonstrated the sufficiency of NID water supplies to satisfy the proposed project’s water demands, while still meeting the water purveyor’s existing and planned future uses under all hydrologic conditions (Normal Years, Single Dry Years and Multiple Dry Years).

The Idaho-Maryland Mine Project is anticipated to receive potable water from NID for dust control, sanitary uses and to provide a reliable water supply to certain nearby residences whose water supply wells could be impacted by mining operations. In the recently issued Draft Environment Impact Report (DEIR), Nevada County concluded that the proposed mining operations could result in adverse effects to seven domestic water supply wells in the East Bennett area during the life of the mining operation. While a total of seven wells are projected to be adversely affected, the Company would connect up to 30 properties in the East Bennett area to the NID potable water system prior to commencement of mine dewatering. The Company would fund the engineering, permitting, construction and installation of main water piping and water meters to each property, as well as pay for any NID water charges for ongoing water supply.

The Idaho-Maryland Mine Project will have a surplus of water from the natural groundwater flow into the underground workings and only 10 percent of the dewatering volume will be needed for operational purposes. The groundwater will be treated to remove iron, manganese and other elements of concern and will meet the strict standards of NPDES permit CAG995002, requiring quality as good or better than drinking water quality, before being discharged to the South Fork of Wolf Creek. The surplus of over 1,200 acre-ft per year will provide a benefit to downstream users and aquatic species. NID could utilize the excess treated mine water and the mine would add more water to the system than it uses. As the mine water flow is immune from drought years, the mine dewatering would have a positive effect on water supply. NID could adjust its flows upstream to use the extra water available downstream if it desired to do so.