South32

South32 2020 Update

In August 2018, South32 purchased Arizona Mining Inc. (AMI) and gained control of AMI’s mine claim holdings in the Patagonia Mountains. In December 2019, South32 completed its legal obligation to remediate the historical environmental damage from old tailings left in the 1960s when former owner, ASARCO, stopped working the project. In addition to completing the remediation work done in 2019, South32 also continued exploratory drilling from its patented lands.

South32 states that it will release one of its Pre-Feasibility Reports in December 2020. The Pre-Feasibility Report is a requirement of the Australian Stock Exchange.

The Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (aka “the JORC code”) is a professional code of practice that sets minimum standards for public reporting of minerals, exploration results, mineral resources, and ore reserves. Public reports prepared in accordance with the JORC code are reports prepared for the purpose of informing investors or potential investors and their advisors.

The Pre-Feasibility Report will provide information on how South32 plans to move forward with an operating mine. The previous owner of this project (Arizona Mining, Inc.) had forecast daily production of 10,000 tons of ore, consumption of 650 gallons of water per minute on 24/7 work schedule, and daily vehicle traffic of over 600 vehicles.

PARA has partnered with Earthworks to analyze South32’s pre-feasibility report once it becomes available.

History of South32 / Arizona Mining Inc. Activity in Patagonia, AZ

12/2020: South32 plans to release a pre-feasibility study for its Taylor Deposit.

9/2020: South32 again delays the release of their Taylor Deposit pre-feasibility study from September 2020 to December 2020.

9/2020: UniSource Energy Services announces plans for a Rio Rico-Harshaw power line that will serve the Hermosa Project.

8/2020: South32 announces their “Cross Creek Connector” exit route with plans to construct a 32-foot-wide industrial arterial road for heavy trucks that will connect Harshaw Road to State Road 82.

7/2020: South32 announces their massive dewatering plans, which will draw down an estimated 1.6 billion gallons of water per year for four years in order to help them reach their target minerals.

6/2020: South32 releases a Mineral Resource Declaration for its Clark Deposit.

4/2020: South32 delays the release of one of its pre-feasibility studies for the Australian Stock Exchange from April 2020 to September 2020.

12/2019: South32 completes legal obligation to remediate historical environmental damage at mine site.

6/2019: South32 releases a Mineral Resource Declaration for its Taylor Deposit.

8/2018: South32 purchases Arizona Mining Inc.

6/2018: South32 announces intent to buy remaining shares of Arizona Mining Inc. for $1.3 billion (USD).

1/2018: Arizona Mining Inc. receives three key permits for the Taylor Project.

4/2017: Arizona Mining Inc. has released their Preliminary Economic Assessment (PEA) for the private Taylor property. They are also down to 6 drill rigs.

2/2017: Arizona Mining Inc. reduces operations from 14 drill rigs to 9 drill rigs (still running 24/7).

1/2017: Arizona Mining Inc. continues to do exploratory drilling on private property with 14 drill rigs operating 24/7.

11/2016: The Hermosa-Taylor Deposit Drilling Project has been CANCELLED.

9/2016: The Forest Service has started the public scoping period for the Hermosa-Taylor Drilling Project.

6/2016: Arizona Mining Inc. continues to aggressively pursue mineral drilling on the Taylor/Trench Camp Mine private property. They have increased the number of drill rigs from 5 to 10 rigs, operating 24 hours a day, 7 days a week.

4/2016: The release of the final Hermosa Environmental Assessment (EA) and Draft Decision is cancelled.

10/2015: Arizona Mining Inc. started new exploratory mineral drilling on their private land for the Taylor site. Destruction of the hillside and trees for drilling pads can be clearly viewed from Harshaw Road, past their entrance gate. The denuded slope is above Harshaw Creek and threatens to erode directly into the creek with the potential to smother downstream aquatic life with sediment.

10/2014: Hermosa mine proposal could deplete southeast Arizona town’s drinking water aquifer. Peer-reviewed report by Patagonia Area Resource Alliance and Earthworks outlines Hermosa mine’s risks of water consumption and perpetual water pollution to the Patagonia area.

Additional History:

Arizona Mining Inc. (also known as Wildcat Silver) owned mining explorations on their private land holdings for the Hermosa project intermittently from 2006 to 2018 when they sold to South32. In March 2011, they filed a Plan of Operations to extend their mining explorations from their private land onto their bordering claims on public land in the Coronado National Forest. The Forest Service granted approval of the drilling project through a Decision Memo dated 10/18/2011.

In response to the Forest Service’s unlawful approval, Patagonia Area Resource Alliance joined together with Defenders of Wildlife and Sky Island Alliance and went to court in December 2011 to seek a timeout on construction of Arizona Mining Inc.’s Mining Exploration Project on the Coronado National Forest in southern Arizona. We challenged the U.S. Forest Service for approving the exploratory mining proposal without required studies of how it will impact endangered wildlife and the environment.

The Forest Service officially withdrew its approval of Arizona Mining Inc.’s 15-hole mining exploration plan on April 27, 2012.

Frequently Asked Questions:

What is a Plan of Operation and What’s a Scoping Notice?

Check out our NEPA Resources page here. NEPA stands for the National Environmental Policy Act. This is the environmental review process by which all federal agencies must comply for federal actions that could have environmental effects.

How can I make sure my voice is heard?

“The environmental review process under NEPA provides an opportunity for you to be involved in the Federal agency decision-making process. It will help you understand what the Federal agency is proposing, to offer your thoughts on alternative ways for the agency to accomplish what it is proposing, and to offer your comments on the agency’s analysis of the environmental effects of the proposed action and possible mitigation of potential harmful effects of such actions.

“NEPA requires Federal agencies to consider environmental effects that include, among others, impacts on social, cultural, and economic resources, as well as natural resources. Citizens often have valuable information about places and resources that they value and the potential environmental, social, and economic effects that proposed federal actions may have on those places and resources. NEPA’s requirements provide you the means to work with the agencies so they can take your information into account.”

—From the Citizens Guide to NEPA

What do all those acronyms mean?

We know the acronyms can get plentiful and confusing. To clear them up, check out our handy Glossary of Terms.