American CuMo Mining Corporation (CuMoCo or the Company) (TSXV: MLY; OTC-Pink: MLYCF) announces that the US District Court – District of Idaho has decided in favor of the US Forest Service (“USFS”) in regards to the previously ordered updated groundwater study. Three local anti-development environmental groups had challenged the USFS over its supplemental Environmental Assessment determination for the CuMo Project.
In dismissing the claims that the exploration work would harm groundwater, the Idaho District Court noted, “the Court finds the Forest Service’s analysis and conclusions regarding groundwater satisfy NEPA. The Forest Service has complied with the Court’s prior order and addressed the concerns stated therein with regard to groundwater. Therefore, the Court upholds the Forest Service’s SDN/FONSI as to the NEPA challenges relating to groundwater.”
The court therefore affirmed the Forest Service’s determination that the work proposed at the CuMo site will have no significant effect on the groundwater and thus the Boise River located over 35 miles away.
In regards to the sensitive plant species, the court noted that the effects of the 2014 Grimes Creek fire (which was totally unrelated to project activities) may have affected the plant population on the project site and that this fire impact had not been completely analyzed as part of the decision process. The court directed the Forest Service to issue a new decision after an updated baseline survey has been established for the plant. Tetra Tech, an independent contractor, has already completed the updated baseline study and is in the process of finalizing the report. The court also found no problems with the overall mitigation plans. The Court directed that decisions be made in the proper order by completing the baseline survey before making the decision to proceed, even though the prior approval required the baseline study be completed prior to any work starting. The Court directed the USFS to update its decision by an amendment or addendum to the Supplemental EA, Supplemental Decision Notice and Finding of No Significant Impact, following completion of the baseline plant study. Since the baseline study has already been completed, the Company believes that an expeditious response to resolving the proper sequence of events is in order.
The species known as Sacajawea’s bitterroot (LESA), is a USFS Region 4 sensitive plant species (USFS 2013) endemic to Idaho and is a subspecies of the more common widely spread Kellogg’s Bitterroot. There are 34 known occurrences in central Idaho, all within an area of approximately 125 miles by 100 miles. The plant is known to occur in montane and subalpine habitats between 5,000 to 9,500 feet in elevation. After a short flowering period, the plant recedes underground, where the taproot stays hidden just below the surface and all above ground signs of the plant disappear. The CuMo Project is the only occurrence where detailed plant counts (3 to date) have ever been done. Company representatives have begun visiting other areas and have noted many large populations at these sites located many miles from the CuMo site.
“CuMoCo has once again demonstrated its commitment to a strong working relationship with the USFS and the communities of Idaho,” said Shaun Dykes, CuMoCo’s President and CEO. “Our industry-leading environmental practices are dedicated to advancing this vital exploration program in a sustainable manner.”
CuMoCo intends to proceed with its 2016 drill program in the near future, starting on its private land while it waits the incorporation of the baseline study into the record.
CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
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This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such as the Company’s ability to successfully negotiate the Definitive Agreement with the Chinese Partners, the Company’s ability to move the CuMo Project through development to feasibility and production, and for the Company to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company’s proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company’s publicly filed documents, including the Company’s Management’s Discussion and Analysis for the period ended March 31, 2016. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information 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 information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.