Don't forget tunnel and environmentals.

This subject was covered 200 times...but here goes again..

GALORE BIG PROBLEM:
One of the biggest environmental problems for large open pit mining operations is acid drainage, according to Paul Dowd, Managing Director for Newmont Mining (NYSE: NEM – News). This is known as Acid Rock Drainage [ARD] and Acid Mine Drainage [AMD]. When rock is mined and exposed to the air, the sulphide deposits acidify. This happens with waste rock, tailings and pit wall surfaces. Subsequent runoff from rains and waterways can wash the acid for hundreds of miles polluting rivers, agricultural land and aquifers. Potential acid generating [PAG] waste is generated two ways at an open pit mine. Tailings, from processing the ore, are often toxic due to the chemicals used to extract the ore. Waste rock, or overburden, may be PAG depending on sulphide content. Waste rock volumes are determined by the "strip ratio". A 2:1 strip ratio means that for every ton of ore bearing material there are 2 tons of waste rock. Waste storage is a major environmental issue in any mine during pre-stripping, through production and at mine closure/rehab. According to Dowd, 2/3 of Newmont's closure and rehabilitation costs are managing acid drainage.

The strip ratio at Galore Creek is 1.6:1 over the life of the mine, but 2:1 in early years. About half the waste rock is PAG. The mine plan calls for waste rock to be placed in the valley and flooded. Environmental concerns at GC stem from the fact that the Galore Creek Valley drains into Alaskan waterways. Prime Alaskan fisheries will be on the receiving end of any pollution, while British Columbia and Canada are on the receiving end of all the tax revenue. Galore Creek will generate about 1.3B tons of waste and tailings.


COPPER FOX SHAFT CREEK (BIG ADVANTAGE):

Mr. Stewart, President of Copper Fox stated that "I am pleased that the fish habitat portion of the environmental studies on the Schaft Creek deposit concluded that no fish species have been found from 1 to 6 kilometer radius of the deposit. The lack of fish habitat and low acid generating potential of the waste rock to be mined are very positive environmental features of the Schaft Creek deposit.

Due to the absence of fish, approval under the British Columbia Environmental Assessment Act, the Canadian Environmental Assessment Act and the Canadian Fisheries Act will not be contingent upon the reclassification of fish habitat as mine waste disposal facilities. Copper Fox expects that due to the absence of fish in the area around the proposed mine site, a Schedule 2 Amendment under the Fisheries Act would not be required.

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OTHER DIFFERENCES:

Another Galore Creek neighbor is the Schaft Creek project being developed by Copper Fox [CVE:CUU]. Schaft Creek is only 36km from Galore Creek, but it is on the BC side of the mountains, thus no tunnel or Alaskan environmentalists.

The deposit is every bit as big as GC and they have a top notch CEO. The life of mine strip ratio is a much cleaner 0.7:1. The gold grades are higher and it also has molybdenum.

Copper Fox optioned the property from Teck Cominco in 2002, but Teck retained a back in right for up to 75%. Teck would have to contribute 4 times all prior expenditures and arrange financing after CUU delivers the feasibility study.

CUU has arguably a better project and a strong partner already in place. They will undoubtedly have to dilute shareholders to complete the FS, but then they get four times their expenditures to help pay for their 25% of capital costs.

We believe Teck Cominco partnering with NovaGold on Galore Creek means they really like the area and are likely to buy out Copper Fox upon completion of the feasibility study