Department of Ecology Press Release - October 27, 2005

05-262

State releases environmental review for proposed gold mine

YAKIMA - On Friday, Oct. 28, the Washington State Department of Ecology (Ecology) will release a draft supplemental environmental impact statement (SEIS) that examines the effects the proposed construction and operation of an underground gold and silver mine will have on the environment near Chesaw in Okanogan County.

Crown Resources Corporation plans to extract approximately 1.2 million ounces of gold and silver from beneath Buckhorn Mountain over seven years. The proposal calls for the ore to be transported and processed at Kettle River Mill near Republic in Ferry County. Kettle River Mill is owned and operated by a subsidiary of Kinross Gold USA, Inc.

Three public open houses have been scheduled during which oral and written comments may be made on the draft SEIS. The open houses will be from 5:30 to 7:30 p.m. on:

Written comments will be accepted until Dec. 14, 2005, and should be addressed to Derek Sandison, at Washington Department of Ecology, 15 W. Yakima Ave., Suite 200, Yakima, Wash., 98902. E-mail comments may be made to BuckhornComments@ecy.wa.gov .

The draft SEIS for the Buckhorn Mountain Mine Project may be viewed on line at www.buckhornseis.com . Copies of the draft impact statement are available at libraries in Colville, Grand Coulee, Okanogan, Oroville, Republic and Tonasket in Washington, and at public libraries in Osoyoos and Midway, British Columbia, Canada. Hard copies or CDs of the document may be requested by calling (509) 457-7112.

Environmental issues at the Buckhorn Mountain location were thoroughly described in a 1997 impact statement prepared for an open-pit mine proposed in a joint venture between Crown Resources and The Battle Mountain Gold Company (Battle Mountain).

Plans for the open-pit mine were withdrawn in 2000 when Battle Mountain was acquired by Newmont Gold Company, and the joint venture with Crown Resources ended.

In 2003, Crown Resources submitted an amended plan of operations proposing to construct an underground gold mine and to expand the tailings collection facility in Republic.

"While the two projects are very different, much of the technical information gathered in the Battle Mountain Gold environmental impact statement remained relevant for an environmental evaluation for the current proposal," explained Derek Sandison, director of Ecology's central regional office. "The supplement focuses on the underground mining aspect and increased tailings concerns at the Republic mill."

Crown Resources proposes to mine gold and silver ore using underground mining practices and process it at the off-site mill at the rate of 1,500 tons per day. The supplemental impact statement estimates the project will result in the disturbance of a total of 160 acres during the life of the operation. According to the plan, most underground openings would be backfilled during the mining operation.

The draft impact statement identifies actions the company must take to alleviate harm to the environment caused by the mining and milling operations, and identifies what state permits might be required for operating an underground mine and mill under the new plan.

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Media contacts: Joye Redfield-Wilder, Department of Ecology, 509-575-2610

Clyde Gillespie, Kinross Gold U.S.A., Inc., 509-775-3157 ext. 131