Julietta Gold

completed

This $40.8 million project proposes to develop the Julietta gold and silver mine, including development of an underground mine and a processing plant, and construction of associated infrastructure facilities and access roads. The project is located 250 miles north of the port city of Magadan and is accessible throughout the year by road. The remote location of the project requires that it be self-sufficient, and includes a mining camp, power generation, and ancillary facilities. Based on proven and probable mining reserves of 0.54 million tonnes, the mine will produce 0.4 million oz. (12.4 tonnes) of gold and 6 million oz. (187 tonnes) of silver over the initial 4.5-year mine life. This relatively short mine life based on proven and probable reserves is typical for underground mines in that extended underground development is advanced as needed. The mining resources estimated at an additional 0.6 million tonnes (15.9 g/t gold) are expected to be upgraded to the proven and probable category with minimal capital expenditure, which would extend the life of the mine by another 5 years. The project has an exploration potential within the license area of 227 km2. Omsukchansk Mining and Geological Company (OMGC) obtained an exploration and mining license in 1995. OMGC is a Russian joint stock company owned 79% by Bema. The remaining 21% of OMGC is held by two Russian companies, Nedra (11%) and New Ducat (10%). This is a category A project according to IFC’s environmental and social review procedure, because it will potentially have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. The Omsukchan Mining and Geological Company (OMGC), a subsidiary of Bema Gold Corporation (Bema) has retained DewPoint International LLC, an independent consultant to prepare a comprehensive Environmental and Social Impact Assessment (EIA), including a detailed Environmental Action Plan (EAP) in English, which addresses several key environmental and social issues associated with the project''s implementation, construction, and operation. The current document is an update of the initial Environmental Action Plan (EAP) dated December 1999.