Regis Resources Limited, the company behind the McPhillamy's Gold Project north of Blayney, has seen its share price gradually decline over the past 52 weeks from a high of $3.76 on January 5 to a low of $1.68 on December 3.
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That steady decline coincides with a much longer than expected approval time for the project.
Water, in its many iterations, is the main issue that the company is having to deal with.
From tailings dam designs, to the overland pipe, to the flow of the Belubula River, these issues are what a company spokesperson said are delaying the referral of the project from the Department of Primary Industry and Environment Water to the Independent Planning Commission.
NSW water licensing is detailed and complex but we are confident of a resolution.
- Regis Spokesperson.
"Regis is working with the DPIE and other government agencies to resolve the surface water licensing arrangements for the project," he said.
"NSW water licensing is detailed and complex but we are confident of a resolution."
Water licensing apart, the continued rain has highlighted the quandary in developing a tailings storage facility and mine site in the headwaters of a small but important river for those farming industries and dams further downstream.
With the Belubula River swelling at Patterson's Bridge, which flows directly from the area in and surrounding the proposed mine site and zero discharge area, the possibility of contamination further downstream, including Carcoar Dam, is of concern to some nearby residents.
"Firstly, the river at Patterson's Bridge receives flows from tributaries both south of and west of the project as well as the smaller catchment proposed to be diverted around the mine development area," the Regis spokesperson said.
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"The impact on Carcoar Dam from the project has been modelled and reported in the EIS and Amendment Reports that approximately 4 per cent reduced flows will occur for a short period when the mine reaches maximum site disturbance. This negligible impact would not be altered by the recent heavy flows.
"The Tailing Storage Facility has been designed to meet the highest standards required by the NSW Dams Safety Act.
"Our conservative approach also means that it will have a margin of stability well in excess of what is required by these governing guidelines. The design is based on the site water balance on over 130 years of rainfall data."
The concern for some in the community is that even if the project is approved, Blayney will be waiting years beyond the approval to see these jobs and investment from the company.
"The company has committed significant levels of resources to the project over several years and as such remains committed to the proposed development of the project in line with the required approvals process," the Regis spokesperson said.
"Regis has the financial capacity to advance assets in its portfolio as required. The company has no intention of 'sitting' on this asset and continues to advance the project through the independent approvals process as planned."
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