Environment Minister Announces Decision on the Pamour Gold Mine Pit Expansion Project in Northern Ontario

OTTAWA, August 10, 2005 – The Honourable Stéphane Dion, Minister of the Environment and Minister responsible for the Canadian Environmental Assessment Agency, today announced that the proposed Pamour Gold Pit Mine Expansion Project in Northern Ontario does not require further assessment by a review panel or mediator under the Canadian Environmental Assessment Act. The Minister referred the project, proposed by Porcupine Joint Venture, back to the lead responsible authorities, Fisheries and Oceans Canada (DFO) and Transport Canada (TC), for appropriate action.

The Minister has determined that the project will not likely cause significant adverse environmental effects if mitigation measures outlined in the comprehensive study report are implemented. The Minister based his decision on the following information:

• the comprehensive study report, including the conclusions and recommendations, submitted by DFO and TC;
• public comments received during the 30-day consultation period, and DFO's and TC's response to the comments;
• the implementation of mitigation measures; and
• the implementation of a follow-up program.

Porcupine Joint Venture is planning to expand its Pamour open pit mine near Timmins, Ontario. The existing mine is located along Highway 101, 5 km east of Porcupine, Ontario, in Whitney Township. The proposed expansion will extend across the current alignment of Highway 101 into Three Nations Lake and through a section of Three Nations Creek. The project includes expansion of the existing Pamour open pit mine, the construction of an isolation dam across Three Nations Lake, partial dewatering of the lake, alteration of the lake shoreline and extension of the lake, and the relocation of a portion of Three Nations Creek.

The proposed expansion represents a mine life of up to 11 years after the closure of the existing open pit operation and allows for time to explore the rest of the Timmins mining camp to find future resources.

- 30 -

The Canadian Environmental Assessment Agency administers the federal environmental assessment process, which identifies the environmental effects of proposed projects and measures to address those effects, in support of sustainable development.

Media may contact:

Gordon Harris
Senior Communications Advisor
Canadian Environmental Assessment Agency
Tel.: (613) 957-0825