employment details - rise gold corp
TRANSCRIPT
IDAHO-MARYLAND MINE PROJECT EMPLOYMENT DETAILS
RISE GRASS VALLEY INC. MAY 2021
CONTENTS
Introduction .................................................................................................................................................................................................................... 1
Summary ........................................................................................................................................................................................................................ 2
Underground Mine ......................................................................................................................................................................................................... 4
Mineral Processing ......................................................................................................................................................................................................... 7
Trades ............................................................................................................................................................................................................................. 9
Labor ............................................................................................................................................................................................................................ 11
Geology, Engineering, and Environmental .................................................................................................................................................................. 12
Accountants, Administration, and Security ................................................................................................................................................................. 14
Surface Equipment Operators ...................................................................................................................................................................................... 15
Management & Supervisors ......................................................................................................................................................................................... 16
Health & Safety............................................................................................................................................................................................................ 18
Underground Metal Mining ..................................................................................................................................................................................... 18
Mineral Processing Plant & Office .......................................................................................................................................................................... 19
Mine Rescue............................................................................................................................................................................................................. 22
Indirect Jobs / Economic Multiplier ............................................................................................................................................................................. 24
Mine Construction ................................................................................................................................................................................................... 25
Local Service Providers ........................................................................................................................................................................................... 26
Centennial Industrial Site ......................................................................................................................................................................................... 27
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INTRODUCTION Rise Grass Valley Inc. (Rise) owns the Idaho-Maryland Mine Project. Rise proposes to reopen the Idaho-Maryland underground gold mine in Nevada County, California. This report provides details of the workforce requirements at the Idaho-Maryland Mine and focuses on the workforce requirements when the Project reaches commercial production. Achieving commercial production, defined as a stable production rate of 1,000 tons per day of gold mineralization mined and processed, will take several years and the majority of positions would be phased-in as the project advances. Workforce details are estimates, are preliminary in nature, and are contingent on actual results and requirements as the project advances. A general sequence of activities required to reach commercial production are provided as follows:
1) Approval of Nevada County Use Permit 2) Issuance of secondary construction and operating permits (building permits, water discharge permits, etc.) 3) Mine dewatering and underground exploration 4) Underground and surface construction 5) Employee recruitment and training and integration of workforce 6) Ramp up of production rates to commercial production
The core of the Rise Grass Valley management team would be hired after approval of the Use Permit. The project’s construction phase is generally completed by contractors. Most of the permanent workforce is recruited and trained during the period from commissioning to commercial production. The workforce details provided in this report are dependant on numerous factors which include exploration success and productivity. The wage estimates provided in this report are based on recent surveys in the US mining industry and are presented as average values by occupation. Actual wages during operations are subject to applicant experience and labor market conditions.
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SUMMARY The total workforce when the Idaho-Maryland Mine Project reaches commercial production is estimated at three hundred and twelve (312) persons. Table 1 shows the breakdown of the operations workforce by working schedule and area. The majority of workers (268 employees) would work twelve (12) hour shifts with seven (7) days of work followed by seven (7) days of rest. The remining workforce (44 employees) would work regular eight (8) hour shifts with five (5) days of work followed by the weekend of rest.
Table 1 – Idaho-Maryland Workforce by Area and Schedule*
Workforce Shift Total Employees
Employees per Shift
Management and technical staff 8 hours a day,5 days a week—dayshift 36 36
Assaying and construction 8 hours a day, 5 days a week—dayshift 4 4
Underground mine 12 hours a day, 7 days on, 7 days off 202 50
Mineral processing 12 hours a day, 7 days on. 7 days off 64 16
Truck transport of engineered fill 12 hours a day, 7 days on. 7 days off 2 1
Placement and compaction of engineered fill 8 hours a day, 5 days per week—dayshift 4 4
Total Workforce 312 111 *Workforce by Area and Schedule as presented in the Project Description for the Idaho-Maryland Mine Project
The total payroll, including wages and benefits, is estimated at $38 million per year with average annual earnings per employee estimated at $122,000. The workforce broken down by job category is displayed in Table 2. Substantial economic incentive exists to maximize employee recruitment from the local Nevada County area and Rise Grass Valley estimates that approximately two-thirds of the workforce can be recruited locally. Local recruitment targets will be achieved through the implementation of a significant training program and 162 positions have been designated for trainees with no previous experience. Rise Grass Valley estimates that approximately 51 additional workers, with previous experience and training in mining, engineering, electrical or other trades, are available for local area recruitment. Therefore, at least 213 workers (~68% of workforce) are estimated to be sourced from the immediate Nevada County area. Approximately 99 workers (32% of workforce) would be recruited from outside the local area. These positions require extensive experience in underground mining which are less likely to be possessed by persons currently residing in the immediate local area.
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$94,000
$68,000
$45,000
Idaho MarylandMine Average
California StateAverage
Nevada CountyAverage
Fig 1 - Annual Wage Comparison2
Table 2 – Idaho-Maryland Workforce by Job Category
Job Category Total Employees
Local Trainee
Positions
Local Experienced
Workers (Estimate)
Local Recruitment (Estimate)
Non-Local Recruitment (Estimate)
Annual Wages (Avg)
Annual1 Benefits
(Avg)
Annual Earnings
(Avg)
Total Payroll
Underground Mine 156 80 18 98 58 $94,000 $27,000 $123,000 $19,188,000
Mineral Processing 36 36 0 36 0 $81,000 $26,000 $108,000 $3,888,000
Trades 34 12 14 26 8 $97,000 $28,000 $126,000 $4,284,000
Labor - Underground & Surface 17 17 0 17 0 $63,000 $26,000 $89,000 $1,513,000
Geology, Engineering, Environmental 28 7 7 14 14 $101,000 $29,000 $130,000 $3,640,000
Accountants, Administration, Security 16 8 8 16 0 $82,000 $27,000 $110,000 $1,760,000
Surface equipment operators 6 2 4 6 0 $73,000 $27,000 $99,000 $594,000
Managers & Supervisors 19 0 0 0 19 $140,000 $31,000 $172,000 $3,268,000
Total / Average 312 162 51 213 99 $94,000 $27,000 $122,000 $38,135,000
An experienced core of miners, trades people, administrators, engineers, and scientists will ensure the success of new workers in their assigned roles. The mine operations would be led by a highly experienced management and supervisory team to ensure that the health & safety, environmental and regulatory compliance, and productivity requirements of the mine are achieved.
The mine would provide substantial opportunities for local workers to embark on satisfying and well-paid careers in underground mining, core drilling, mineral processing, trades, equipment operation, and administration. Average annual wages at the Idaho-Maryland are expected to be more than double that of average Nevada County wages2.
In addition to excellent wages, the mining industry provides robust benefit packages which include medical, dental and vision insurance as well as paid vacation time and retirement plan contributions.
1 Benefits assumed at $22,000 per year for every employee plus retirement contribution of 7% of wages 2 ncerc.org/wp-content/uploads/2020/04/Nevada-County-Economic-and-Workforce-Opportunity-Profile-March-2020.pdf
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UNDERGROUND MINE The underground mine department, led by the Mine Manager and shift supervisors, requires a significant workforce of one hundred fifty-six (156) workers. The core of the underground mining workforce requires skilled workers with a minimum of four years experience at a producing underground metal mine. It is assumed that eighteen (18) experienced underground miners and core drillers would be recruited locally, and fifty-eight (58) would be recruited from outside the local area. A significant training program would be implemented to allow eighty (80) underground mining and core drilling assistant positions to be filled by trainees recruited from the local Nevada County area.
Activities performed in the underground mine vary. The most physically demanding activities such as raise mining, ground support, and mine services comprise 22 of 80 trainee positions. These activities require use of rock drills and the handling of heavy materials such as ground support rebar, pipes, and ventilation ducting. Mine haulage, production and development drilling, which makes up 24 of the 80 trainee positions, is less physically demanding and requires the operation of underground mechanized machinery. Production blasting, mine backfill, and shaft services comprise 18 of the 80 trainee positions. These positions are less physically demanding than those previously described but require specific training and close coordination with supervisors and technical workers. Rise Grass Valley anticipates operating four underground exploration core drilling rigs. All sixteen (16) core drilling assistant positions would be local trainee positions who would receive on-the-job training. Core drilling is a physically demanding job requiring the constant lifting of drill rods and drill core. Core drilling assistants learn drilling skills on the job and commonly advance to become core drillers. The mine training programs will be more intensive than most other roles available. Training programs would include offsite vocational training and extensive onsite training.
The details of the underground mine workforce are provided in Table 3.
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Zinex U5 Underground Core Drill
Sandvik Underground Jumbo Drill
Artisan Vehicles Underground Loader
Atlas Copco Pusher Leg Drill
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Table 3 – Underground Mine
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
Raise Miner 8 2 0 $104,000 $28,000 $134,000
Development Drilling 12 3 1 $104,000 $28,000 $134,000
Ground Support 24 12 2 $104,000 $28,000 $134,000
Production Drilling 12 3 1 $104,000 $28,000 $134,000
Production Blasting 12 6 2 $86,000 $27,000 $114,000
Mine Haulage 24 18 4 $86,000 $27,000 $114,000
Mine Services 16 8 4 $86,000 $27,000 $114,000
Mine Backfill 8 4 2 $86,000 $27,000 $114,000
Shaft Services 8 8 0 $86,000 $27,000 $114,000
Core Drillers 16 0 2 $104,000 $28,000 $134,000
Core Driller Assistant 16 16 0 $86,000 $27,000 $114,000
Total / Average 156 80 18 $94,000 $27,000 $123,000
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MINERAL PROCESSING The mineral processing plant requires a thirty-six (36) person workforce. Rise Grass Valley expects to fully staff the mineral process plant by trainee’s recruited locally. The mineral process plant requires the operation of equipment in each section of the plant. The modern mineral process plant is highly automated, and most jobs are technically oriented rather than physically demanding. Some plant operators will be trained to operate mobile machinery such as forklifts, trucks, and front-end loaders. Plant operators would be recruited locally and receive on-the-job training and vocational training, as required.
Table 4 – Mineral Processing
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
Control Room 4 4 0 $81,000 $26,000 $108,000
Grinding 4 4 0 $81,000 $26,000 $108,000
Gravity 4 4 0 $81,000 $26,000 $108,000
Flotation 4 4 0 $81,000 $26,000 $108,000
Dewatering 4 4 0 $81,000 $26,000 $108,000
Concentrate 4 4 0 $81,000 $26,000 $108,000
General Plant 4 4 0 $81,000 $26,000 $108,000
Backfill Plant 4 4 0 $81,000 $26,000 $108,000
Water Treatment 4 4 0 $81,000 $26,000 $108,000
Total / Average 36 36 0 $81,000 $26,000 $108,000
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Mineral Process plant using gravity and flotation methods with similar machinery and building layout as proposed at the Idaho-Maryland Mine Project.
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TRADES Modern underground mining is heavily mechanized and requires a significant skilled team of trades people to maintain the equipment required for operations. Heavy duty mechanics are required in the underground mine to maintain and repair underground mobile machinery with includes wheeled and track-mounted electric and battery powered equipment and hydraulic drills. Heavy duty mechanics require vocational training and experience. Equipment vendors also provide specific training. A total of sixteen (16) mechanics would be required with four mechanics per shift. It is assumed that six (6) experienced mechanics would be recruited locally, and four (4) experienced mechanics would be recruited from outside the area. The mine will have an apprenticeship program and six (6) heavy duty mechanic apprentices will be recruited locally and receive vocational training and on-the-job training.
The mine and plant are powered by electricity and require a significant skilled team of trades people to maintain the electrical services required for operations. Industrial electricians are required in both the underground mine and the surface plant to maintain electrical equipment and services. Industrial electricians require vocational training and experience. A total of eight (8) electricians would be required with two electricians per shift. Rise Grass Valley assumes that four (4) experienced electricians would be recruited locally, and two (2) experienced electricians will be recruited from outside the area. The mine will have an apprenticeship program and two (2) industrial electrician apprentices will be recruited locally and receive vocational training and on-the-job training.
The mineral process plant and mine shaft conveyances require a significant skilled team of millwrights to maintain operations. A total of eight (8) millwrights would be required with two millwrights per shift. Rise Grass Valley assumes that two (2) experienced millwrights would be recruited locally and two (2) experienced millwrights would be recruited from outside the area. The mine will have an apprenticeship program and four (4) millwright apprentices will be recruited locally and receive vocational training and on-the-job training.
The mine and plant will require metal fabrication and carpentry for maintenance of operations. Rise Grass Valley assumes a qualified and experienced carpenter and metal fabricator would be recruited from the local area.
The details of trades employment are provided in Table 5.
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Table 5 – Trades
Job Category Total Employees
Local Annual Wages
Annual Benefits
Annual Earnings Trainee Experienced
Mine Mechanic 16 6 6 $100,000 $28,000 $129,000
Mine Electrician 4 1 2 $100,000 $28,000 $129,000
Millwright 8 4 2 $95,000 $27,000 $124,000
Plant Electrician 4 1 2 $95,000 $27,000 $124,000
Carpenter 1 0 1 $76,000 $27,000 $104,000
Metal Fabricator 1 0 1 $76,000 $27,000 $104,000
Total / Average 34 12 14 $97,000 $28,000 $126,000
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LABOR Laborers are required in the underground mine and mineral process plant. A total of twenty-two (22) laborers will be recruited locally. The labor workforce is closely supervised by more experienced workers. These entry level positions provide an opportunity to develop valuable job skills. Wages for labor workers compare favorably to most occupations in Nevada County, as shown in Figure 2. They include full benefit packages along with advancement opportunities into more skilled and higher wage positions in the plant, underground mine, or trades.
Table 6– Labor
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
Mine Laborer 14 14 0 $65,000 $26,000 $92,000
Plant Laborer 8 8 0 $60,000 $25,000 $86,000
Total / Average 22 22 0 $63,000 $26,000 $90,000
Figure 2 – Idaho-Maryland Labor Wage Vs. Nevada County Industry Average3
3 https://ncerc.org/wp-content/uploads/2020/04/Nevada-County-Economic-and-Workforce-Opportunity-Profile-March-2020.pdf
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000
Utilities
Professional & Technical Services
Idaho Maryland - Labor Position
Manufacturing
Construction
Information
Health Care and Social Assistance
Arts, Entertainment, and Recreation
Accomodations and food services
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GEOLOGY, ENGINEERING, AND ENVIRONMENTAL The mine engineering department is responsible for the underground mine design and planning to ensure the safe and economic extraction of gold mineralization. The Chief Engineer leads the department of three formally educated and experienced mine engineers. Mine engineering positions require an engineering degree and a minimum of four years experience at a producing underground metal mine. Rise Grass Valley assumes that all four (4) mine engineer positions including the Chief Engineer would be recruited from outside the local area. The engineering department is supported by three (3) mine surveyors. Mine surveyors work in the underground mine, survey new mine workings, and plot mine workings using CAD software. Rise Grass Valley assumes that one (1) experienced surveyor would be available for recruitment locally. Two (2) trainee surveyors would be recruited locally and receive vocational training and on-the-job training.
The geology department is responsible for discovering, sampling, and mapping gold mineralization. The Chief Geologist leads the department of eleven (11) experienced mine and exploration geologists. Geology positions require a geology degree and experience requirements are dependent on position. Some positions are available for geologists without specific underground mining experience. Rise Grass Valley assumes that five (5) geologists would be recruited locally and six (6) including the Chief Geologist would be recruited from outside the local area. The geology department is supported by two (2) core technicians. Core technicians work on surface and are responsible for logging and cutting of exploration drill core. Two (2) trainee core technicians recruited locally would receive on-the-job training.
The environmental department is responsible for environmental compliance with numerous and complex environmental regulations. Environmental compliance includes water quality, dust control, air quality monitoring, and noise monitoring. The Chief Environmental Scientist leads the department of three (3) formally educated and experienced environmental scientists. Rise Grass Valley assumes that one (1) experienced environmental scientist could be recruited locally, and two (2) environmental scientists including the Chief Environmental Scientist would be recruited from outside the local area. The environmental department is supported by two (2) technicians who monitor site activities, collect samples, and manage environmental databases. Two (2) trainee environmental technicians would be recruited locally and receive vocational training and on-the-job training.
A Chief Metallurgist is responsible for ensuring recovery and efficiency during the processing of gold mineralization. The Chief Metallurgist position requires an engineering degree and a minimum of four years experience at a similar processing plant. This position reports to the Plant Manager. The metallurgist is supported by an assayer who determines gold and metal values in order to maximize gold recovery and ensure engineered fill meets environmental requirements. Rise Grass Valley assumes that the metallurgist and assayer positions would be recruited from outside the local area. An assayer assistant will be recruited locally and receive on-the-job training.
The details of trades employment are provided in Table 7.
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Table 7 – Geology, Engineering, Environmental
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
Chief Mine Engineer 1 0 0 $140,000 $32,000 $172,000
Mine Engineer 3 0 0 $115,000 $30,000 $145,000
Mine Surveyor 3 2 1 $71,000 $27,000 $98,000
Chief Geologist 1 0 0 $140,000 $32,000 $172,000
Mine Geologist 8 0 4 $113,000 $28,000 $143,000
Exploration Geologist 2 0 1 $90,000 $29,000 $119,000
Core Tech 2 2 0 $60,000 $27,000 $86,000
Chief Environmental Scientist 1 0 0 $140,000 $32,000 $172,000
Environmental Scientist 2 0 1 $115,000 $30,000 $145,000
Environmental Tech 2 2 0 $71,000 $27,000 $98,000
Chief Metallurgist 1 0 0 $140,000 $32,000 $172,000
Assayer 1 0 0 $76,000 $27,000 $104,000
Assay Assistant 1 1 0 $65,000 $27,000 $91,000
Total / Average 28 7 7 $101,000 $29,000 $130,000
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ACCOUNTANTS, ADMINISTRATION, AND SECURITY Rise Grass Valley’s Chief Financial Officer will lead the accounting department with assistance of the Accounting Manager. Two (2) accountants will be required, and it is expected that formally educated and experienced accountants can be recruited from the Nevada County area. The accounting department will include two (2) purchasers, responsible for purchasing materials and supplies for the mine operation, and two (2) site admins, responsible for clerical work to support the department. Locally hired trainee purchasers and site admins would receive vocational education and software training in conjunction with on-the-job training.
An Executive Assistant, to assist the General and Operations Managers, would possess business, organization, clerical, and communication skills and experience. Rise anticipates that an experienced executive assistant would be recruited locally.
A fully trained emergency medical technician (EMT) will always be onsite at the mine to ensure rapid response to medical emergencies on surface or in the underground mine. The EMT, reporting to the Safety Manager, will be a full-time member of the mine rescue team and serve as the chief liaison with the local fire district, first responders, and medical providers. As a member of the mine rescue team, the EMT would be fully trained in underground and surface emergency response in addition to medical training. Five (5) EMT positions are allocated to cover four working shifts in order to allow EMT’s to participate in continuous training and collaborate with local emergency response organizations. Rise Grass Valley assumes that all Emergency Medical Technicians positions would be recruited locally and receive vocational training.
A security officer will always be onsite to ensure controlled access to the fenced, gated mine site. Four (4) trainee security employees would be recruited locally and receive vocational training and on-the-job training.
Table 8 – Accountants, Administration, Security
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
Accountant 2 0 2 $115,000 $30,000 $145,000
Purchaser 2 2 0 $88,000 $28,000 $116,000 Site Admin 2 2 0 $60,000 $27,000 $86,000
Executive Assistant 1 0 1 $90,000 $29,000 $119,000
Emergency Medical Technician 5 0 5 $86,000 $27,000 $114,000
Security 4 4 0 $68,000 $26,000 $95,000
Total / Average 16 8 8 $82,000 $27,000 $110,000
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SURFACE EQUIPMENT OPERATORS Surface equipment operators are required for transport and placement of engineered fill. Surface equipment includes on-road trucks, bulldozers, excavators, front-end loaders, and compactors. Rise Grass Valley assumes that four (4) experienced equipment operators could be recruited from the local area. Two (2) trainees will be recruited locally and receive vocational training and on-the-job training.
Table 9 – Surface Equipment Operators
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
Truck Driver 2 0 2 $82,000 $27,000 $108,000
Heavy Equipment Operator 4 2 2 $69,000 $27,000 $95,000
Total / Average 6 2 4 $73,000 $27,000 $99,000
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MANAGEMENT & SUPERVISORS Mine operations would be led by a highly experienced management and supervisory team to ensure that the health, safety, environmental, regulatory, and productivity requirements are achieved. The General Manager will serve as Rise Grass Valley’s President. The General and Operations Managers are responsible for overall mine leadership and are supported by Safety, Human Resources, Financial, Mine, and Plant Managers. The Mine and Plant areas have continuous supervision with eight shift supervisors. Management & Supervisor positions generally require previous leadership experience and a minimum of eight years experience at a producing underground metal mine. Rise Grass Valley is assuming that all nineteen positions would be recruited from outside the local area.
Table 10 – Management & Supervisors
Job Category Total Employees
Local Annual Wages
(Typical)
Annual Benefits
Annual Earnings Trainee Experienced
General Manager 1 0 0 $265,000 $41,000 $306,000
Operations Manager 1 0 0 $205,000 $36,000 $241,000
Safety Manager 1 0 0 $113,000 $30,000 $143,000
Human Resource Manager 1 0 0 $128,000 $31,000 $158,000
Chief Financial Officer 1 0 0 $170,000 $34,000 $204,000
Accounting Manager 1 0 0 $140,000 $32,000 $172,000
Exploration Manager 1 0 0 $110,000 $30,000 $140,000
Mine Manager 1 0 0 $170,000 $34,000 $204,000
Mine Maintenance Manager 1 0 0 $110,000 $30,000 $140,000
Mine Shift Supervisor 4 0 0 $104,000 $28,000 $134,000
Plant Manager 1 0 0 $170,000 $34,000 $204,000
Plant Maintenance Manager 1 0 0 $110,000 $30,000 $140,000
Plant Supervisors 4 0 0 $138,000 $30,000 $170,000
Total / Average 19 0 0 $140,000 $31,000 $172,000
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General Manager
Chief Financial Officer
Accounting Manager
Human Resources Manager
Operations Manager
Mine Manager
Mine Shift Supervisors
Mine Maintenance
ManagerExploration
Manager
Safety Manager Plant Manager
Plant Supervisors
Plant Maintenance
Manager
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HEALTH & SAFETY
UNDERGROUND METAL MINING
Safety in underground metal mining has shown a remarkable and continuous improvement through recent decades due to increased mechanization, technology, safety practices, and regulations. Underground metal mining has injury rates similar to residential construction and injury rates are significantly less than agriculture, truck transportation, and logging. As shown in Figure 3, injury rates today 80% less than those experienced 30 years ago and have decreased by 33% in the last 10 years. Occupational health in underground metal mining has also greatly improved from previous decades due to engineering controls, technology, mechanization and stringent regulations to reduce hazards from noise, repetitive stress, silica and other dust, and diesel particulates. Recent commercialization of battery powered underground mobile equipment allow the complete elimination of diesel-powered equipment underground at Idaho-Maryland.
Figure 3 – Underground Metal Mining - Non-Fatal Lost Time Injury Rate by Year*
* CDC - NIOSH, Non-fatal occupational injury rate for underground metal mines. wwwn.cdc.gov/niosh-mining/MMWC
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Underground Metal MineNonfatal Lost Time Injury Rate by Year
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The non-fatal lost time injury rate for underground mining of 1.34 injuries per 100 workers is similar to that experienced in the residential construction industry5 as shown in Figure 4. From the period of 2016 to present, only two fatal injuries have occurred in all the underground metal mines combined in the United States6.
The five-year average for fatal injury rates in underground metal mining has improved to 5.67 per 100,000 workers versus the 10-year average of 18.7 per 100,000 workers. Based on data from the previous five years, fatal injuries rates in underground metal mining are similar to automotive mechanics, carpenters, and taxi drivers. Even considering the data from the previous 10 years, fatal injuries rates in underground metal mining are similar to agricultural workers, powerline repair, and ground maintenance workers. Data from five and 10-year averages show underground metal mining is significantly less hazardous than iron workers, truck drivers, roofers, aircraft pilots, fishing, and logging workers as shown in Figure 5.
MINERAL PROCESSING PLANT & OFFICE
The non-fatal lost time injury rate for mineral process plants of 1.18 per 100 workers is similar to that experienced in the retail trade industries9 as shown in Figure 4. From the period of 2016 to present, only one fatal injury has occurred in a mineral process metal plant in the United States10.
The five-year average for fatal injury rates in mineral processing has improved to 1.5 per 100,000 workers versus the 10-year average of 2.010 per 100,000 workers. Based on data from the previous five years, fatal injuries rates in mineral processing are similar to food preparation, food serving, and retail sales. Considering the data from the previous 10 years, fatal injuries rates in mineral processing are similar to retail sales, janitors, and building cleaners as shown in Figure 5.
In 2018, lost time injuries in 2018 for office workers at domestic mining operations is reported at a very low rate of 0.09 per 100 workers, similar to office workers in other industries. No fatal injuries have occurred at domestic mine offices during the previous 10 years in the United States10.
Figure 4 – Non-Fatal Lost Time Injury Rate by Industry Vs. Mineral Processing and Underground Metals Mining
4 US Department of Labor – MSHA, 2018 Mine Injury Report. https://arlweb.msha.gov/Stats/Part50/WQ/2018/MIWQ%20Report%20CY%202018.pdf 5 US Bureau of Labor Statistics, 2018 Non-fatal occupational injury rate by industry. www.bls.gov/web/osh/summ1_00.htm 6 In the period from 2016-2020, 2 fatal injuries occurred (both in 2018) at underground metal mines in the United States. www.msha.gov/data-reports/fatality-reports/2018/fatality-16-november-11-2018/final-report www.msha.gov/data-reports/fatality-reports/2018/fatality-14-october-25-2018/final-report 7 Underground Metal Mining fatality rates were calculated on 5 year (2016 – 2020) and 10-year periods (2011 – 2020). No fatalities have been reported in 2020 as of October 15th. For the purpose of calculations, it is assumed that no fatalities will occur until the end of 2020. https://arlweb.msha.gov/ACCINJ/accinj.htm 8 Department of Labor – MSHA, 2018 Mine Injury Report. https://arlweb.msha.gov/Stats/Part50/WQ/2018/MIWQ%20Report%20CY%202018.pdf 9 US Bureau of Labor Statistics, 2018 Non-fatal occupational injury rate by industry. www.bls.gov/web/osh/summ1_00.htm 10 Mineral Process Metal Plant fatality rates were calculated on 5 year (2016 – 2020) and 10-year periods (2011 – 2020). No fatalities have been reported in 2020 as of October 15th. For the purpose of calculations, it is assumed that no fatalities will occur until the end of 2020. No fatal injuries at mine offices in 10-year period reviewed. https://arlweb.msha.gov/ACCINJ/accinj.htm
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* US Bureau of Labor Statistics, 2018 Non-fatal occupational injury rate by industry. www.bls.gov/web/osh/summ1_00.htm US Department of Labor – MSHA, 2018 Mine Injury Report. https://arlweb.msha.gov/Stats/Part50/WQ/2018/MIWQ%20Report%20CY%202018.pdf
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21 | P a g e
Figure 5 – Fatal Injury Rate by Occupation Vs. Mineral Processing and Underground Metals Mining
* US Bureau of Labor Statistics, 2018 Fatal occupational injury rate by selected occupation. www.bls.gov/iif/oshcfoi1.htm#rates US Department of Labor – MSHA, 2016-2020 Mine Injury Reports. https://arlweb.msha.gov/ACCINJ/accinj.htm
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MINE RESCUE
The mine rescue team is the pride of every American mining operation and the Rise Grass Valley’s workforce will include fully trained and equipped mine-rescue teams, trained in accordance with Mine Safety and Health Administration (MSHA) regulations. These professionals will be available to respond to underground and surface fires, accidents, or medical emergencies. The Idaho-Maryland Mine will seek cross-training opportunities and mutual-aid agreements with local emergency response organizations and other mining operations. The project will always have skilled tradesmen on-site, including electricians and mechanics.
Rise does not require assistance from local agencies for underground mine rescue.
Rise is willing to make available its human resources and infrastructure to assist local first responders in fire fighting and other emergencies in the region surrounding the mine site.
Rise Grass Valley’s mine rescue team will total 24 members and includes five emergency medical technicians (EMT). An EMT will always be onsite to provide rapid response to any medical emergencies and a permanent member of the mine rescue team. Each of the four mine rescue teams would be on call to respond to emergencies. As per MSHA, a minimum of two teams is required to be available within a one-hour travel time to respond to the mine site.
The mine rescue teams will be fully trained and equipped with personal protective equipment, closed circuit rebreather apparatus for underground, open circuit SCBA breathing apparatus for surface responses, oxygen and equipment supplies, gas testing equipment, thermal imaging cameras, communication devices, fire fighting vehicles, hand tools, pumps, hoses, and other equipment.
The mine rescue teams would also be trained and equipped to fight forest fires, in coordination with local agencies, which threaten the mine property and surrounding area. With organized leadership and a skilled workforce, substantial additional human resources could also be mobilized to support fire fighting efforts. The forest fire fighting capacity is augmented by the water treatment pond which holds approximately 30 acre-ft of water and 850 gallons per minute of continuous water supply. The Brunswick site will have approximately 21 acres of unused level graded area which could be used as a base and for marshalling of fire fighting resources. The 24,000 ft2 office/changeroom facility includes 66 individual showers to support fire fighting efforts of longer durations. The property also has full back-up power system providing 6 MW of power in the event that the PG&E utility power is disturbed or pre-emptively shut off.
There has not been a mine disaster in an underground metal mine in the United States for almost 50 years, with the last metal mine disaster occurring in 197211. Modern underground mines have robust ventilation systems, fire resistant materials, automatic fire suppression on mobile equipment, advanced ground support, and numerous technologies and procedures. Metal mining does not have significant methane or other mine gases which occur in coal mining.
11 Sunshine Mine disaster, Idaho in 1972 was last underground metal mine disaster https://www.cdc.gov/niosh/mining/statistics/content/mnmdisasters.html
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BRUNSWICK INDUSTRIAL SITE PLAN VIEW
Water Pond
Office / Changerooms
Warehouse
Brunswick Road
21 Acre Level
Unused Area
Water Treatment Pond. Live Capacity ~ 30 acre feet
Example Mine Rescue Team
24 | P a g e
INDIRECT JOBS / ECONOMIC MULTIPLIER Each industry has backward linkages to economic sectors that provide materials needed for the industry’s output. Additionally, each industry has forward linkages to the economic sectors where the industry’s workers spend their income. Therefore, in addition to the jobs directly supported by an industry, a large number of indirect jobs may also be supported by that industry.12 Metal ore mining has a high economic multiplier in comparison to other industries as shown in Figure 6 with approximately 4.7 indirect jobs created for every direct job. The amount of local indirect jobs created by the project has been estimated at 300 jobs13 and therefore the project would create a total of 612 new local jobs. This significant number of indirect jobs would be created in the local Nevada County area due to local spending by employees and service providers supporting its operation. Local job creation during construction and state and national job creation has not been estimated.
Figure 6 – Indirect Job Creation by Industry12
12 Economic Policy Institute, 2019 https://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/ 13 Economic Impacts of the Idaho-Maryland Mine on Nevada County, March 2021.
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Metal ore mining
Sawmills and wood preservation
Hospitals
Architectural, engineering, and related services
Semiconductor manufacturing
Construction
Crop production
Food services and drinking places
Food and beverage stores
Indirect Jobs Created for Every Direct Job
Indirect Job Creation by Industry
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MINE CONSTRUCTION
The Idaho-Maryland Mine Project’s construction represents a significant capital investment in Nevada County. With an estimated capital investment of approximately $100 million to bring the Project to commercial production, ample opportunities exist for participation of local contractors, material suppliers, and service providers.
Local contractors and suppliers would be requested to assist in many Project construction activities. A partial list is provided as follows:
• Site grading and earthworks to prepare site for construction • Installation of numerous culverts and storm water collection • Concrete slabs and foundations for all buildings, headframes and process plant machinery • Asphalt paving • Landscaping including planting of trees and installation of irrigation systems • Erection of over 20 pre-manufactured steel buildings making up 126,000 square feet of industrial space • Ancillary construction in buildings including doors, windows, interior walls, noise control, showers, etc. • Installation of building services including HVAC, electrical, and plumbing • Installation of septic system • Assembly and welding of process plant tanks • Custom metal fabrication for support structures in the process plant and mine headframes • Installation of numerous equipment in the process plant and water treatment plant • Installation of piping, electrical cable, and instrumentation in the process plant and water treatment plant • Installation of over 1 mile of potable water line, distribution line, and meters to service properties along E. Bennett Road • Equipment, tools, and vehicle rentals • Freight delivery • Security to ensure controlled access to the site and protect equipment during non-work hours • Engineering, environmental, and survey support for all construction activities
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LOCAL SERVICE PROVIDERS
The Idaho-Maryland Mine Project operation would be supported by numerous service providers during commercial production. A partial list of services required from local providers during operations is provided below. It is estimated that Company and employee spending would create new local annual spending of ~$50 million per year14.
Table 11 – Outside Services Required
Landscaping Maintenance Maintenance of landscaping and planting in the parking areas and around buildings. Building Maintenance Maintenance of buildings including plumbing, electrical, and HVAC Septic System Maintenance Maintenance of septic system and field Fuel and lubricant supply and delivery Supply and delivery of fuel, oils, and lubricants Freight Delivery Incoming freight deliveries and outgoing concentrate shipments Janitorial Services Daily cleaning of offices and changerooms Waste and Recycling Pickup and disposal or recycling of materials Laundry Launder & repair mine workers coveralls on a regular basis Health Care Provision of health care services in conjunction with employee benefit programs Child Care Childcare services for participating employees Industrial sewing / fabric repair Professional repair of torn ventilation ducting Light Vehicle Maintenance Repair and maintenance of light vehicles used to support surface operations Surface Equipment Maintenance Maintenance and repair of trucks and heavy surface equipment Electrical Motor rebuilding Rewinding and rebuilding of electrical motors Mechanical Machine rebuilding Rebuild and repair of various machine components Hydraulic fittings and hoses Hydraulic hoses and fittings to support mine equipment maintenance Steel Fabrication Custom steel fabrication to support mine operations project and repairs Steel Recycling Recycling of steel from worn machine parts, ground support rebar and screen. Machining Machining of custom parts and fasteners Building supplies & small tools General supplies such as fasteners, cleaning supplies, lumber, and small tools. Core Boxes Manufacture and supply of wooden core boxes Safety supplies Personal Protective Equipment such as gloves, coverall, hard hats, etc. Taxi services Transport visitors and consultants from Sacramento Airport to Grass Valley. Hot shot services for critical parts or materials. Travel services Travel arrangements for visitors and consultants travelling to Grass Valley from other areas Hotels and Accommodations Accommodation of visitors and consultants travelling to Grass Valley from other areas Engineering and Environmental Consultants Assistance to company regulatory compliance Insurance Services Assistance with employee benefit programs and company insurance policies Accounting Services Financial Auditing and assistance with payroll and taxes Legal Services Assistance to company legal and regulatory compliance
14 Economic Impacts of the Idaho-Maryland Mine on Nevada County, March 2021.
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CENTENNIAL INDUSTRIAL SITE
Rise Grass Valley owns 56-acres of M-1 light industrial zoned property on Centennial Drive and Idaho Maryland Road, referred to as the Centennial Industrial Site. The Centennial Industrial Site is located in unincorporated Nevada County adjacent to the City of Grass Valley. This site is the historic tailings impoundment for the Idaho-Maryland Mine. It has not been available for development since the mine closed in 1956. The historic flotation tailings from the mine’s past production have very low metal content and are not of environmental concern. However, the berm which was constructed to impound the tailings and some remaining stockpiled low-grade mineralization has elevated metals and requires clean-up. Rise Grass Valley is currently undertaking the site’s environmental clean-up through a voluntary clean-up agreement with the California Environmental Protection Agency (CalEPA). Once the mine reaches commercial production, the Centennial Industrial Site will receive engineered fill to create a flat level graded area of 31 acres. This site will have a high value for future industrial businesses in Nevada County. The Centennial Industrial Site is ideally situated adjacent to City limits and surrounded by commercial and industrial properties.
Nevada County faces a critical shortage of usable industrial zoned land. Virtually no space is available as demonstrated by vacancy rates15 displayed in Figure 7.
Figure 7 – Nevada County Industrial Vacancy Rates13
15 Highland Commercial – Nevada County Q4 2019 Commercial Property Review
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28 | P a g e
The lack of available industrial real estate in Nevada County results in the inability to attract new business involved in the manufacturing, production, repairing, distribution, fabrication, processing, wholesaling, and warehousing of a wide variety of goods to the area. Successful local businesses, desiring expansion, may also be forced to consider leaving Nevada County. The local economy’s construction and real estate management sectors are also negatively impacted due to lack of available industrial real estate. This shortage likely contributes to the discouraging job trends in Nevada County’s manufacturing sector which lost 30% of its employment from 2008-2018 and has nearly a 40% lower job concentration (0.5 location quotient) than the state (0.88 location quotient).16
Rise’s Centennial Industrial Site, made possible by the Idaho-Maryland Mine Project, is likely the only viable solution to resolve this shortage. Once completed, the 31-acre flat usable industrial land parcel could facilitate significant employment in Nevada County’s construction and manufacturing sectors. The Idaho-Maryland Mine Project provides the foundation for the future of the Centennial Industrial Site by placing, grading, and compacting engineered fill.
The subdivision and construction of industrial buildings on the site would be part of a future project with its own permitting process and input from stakeholders. This future project has some exciting possibilities. For example, the Centennial Industrial Site could provide for approximately 400,000 square feet of new industrial buildings (assuming a building coverage of 30%) and allow for an increase of current industrial inventory (1.8 million ft2) by approximately 22%.
16 https://ncerc.org/wp-content/uploads/2020/04/Nevada-County-Economic-and-Workforce-Opportunity-Profile-March-2020.pdf
Economic Impacts of the California Mobility Center
ECONOMIC IMPACTS OF THE IDAHO‐MARYLAND MINE PROJECT ON NEVADA COUNTY, CALIFORNIA
Prepared by:
Applied Economics 11209 N. Tatum Blvd, Suite 225
Phoenix, AZ 85028
February 2020
TABLE OF CONTENTS
Economic Impacts of the Idaho‐Maryland Mine On Nevada County
March 2021
Applied Economics LLC 11209 N. Tatum Blvd, Suite 225
Phoenix, AZ 85028
1
TABLE OF CONTENTS 1.0 Introduction .................................................................................................................... 1 Applied Economics Background ............................................................................. 2 2.0 Impact Summary ............................................................................................................ 3
3.0 Economic Impacts .......................................................................................................... 5
Jobs and Payroll ..................................................................................................... 5 Employee Spending Impacts .................................................................................. 6 Vendor Spending Impacts ...................................................................................... 7 Overall Economic Impacts ..................................................................................... 8
4.0 Summary ........................................................................................................................ 10
1
1.0 INTRODUCTION
Applied Economics was retained by Rise Grass Valley Inc. to perform an economic impact analysis of the planned operations of the Idaho‐Maryland Mine Project (the “Project”, located in Nevada County, California. The analysis includes the local economic impacts that the Project would create through its direct operations as well as local supplier purchases and employee spending. The analysis focuses on only local economic impact and does not discuss state or national economic benefits of the project. It includes the local economic benefits and job creation from the construction and operations of the Project. Nevada County is currently preparing an environmental impact report that examines the potential impacts of the Project on air and water quality, wildlife habitat and cultural resources that are outside of the scope of this analysis.
Rise Grass Valley purchased 175 surface acres of industrial land, 2,800 sub‐surface acres, and the mineral rights to the Project in 2017. The original Idaho‐Maryland Mine was active from 1863 to 1956 and was one of the most productive gold mines in the United States. The mine site is located on Brunswick Road in unincorporated Nevada County to the east of the City of Grass Valley. Rise Grass Valley proposes to reopen and the Idaho‐Maryland mine. This economic impact analysis includes the projected annual economic impacts of the underground mine and on‐site mineral processing at full operating levels. At full production, the mine has a projected throughput of 365,000 tons of gold mineralization per year. For the purpose of this analysis, mineralization grades are assumed at historic levels achieved before mine closure, and the three‐year rolling average price for gold of $1,470 per ounce is used. Based on these assumptions, annual production of 108,400 ounces of gold valued at $159.4 million is assumed. Rise Grass Valley estimated that the Project will employ 312 people, including 213 local hires and trainees with a total payroll of $37.7 million annually, including $8.5 million in annual benefits. The figures included in the report are based on current information provided by Rise Grass Valley. The information and observations contained in this report are based on our present knowledge of the components of development, and of the current physical, socioeconomic and fiscal conditions of the affected areas. Estimates made in this analysis are based on hypothetical assumptions, current tax policies, and the current economic structure of the region. However, even if the assumptions outlined in this report were to occur, there will usually be differences between the estimates and the actual results because events and circumstances frequently do not occur as expected. This analysis is based on the best available information and is intended to aid Rise Gold Corporation in demonstrating the impacts of the re‐opening of the Idaho‐Maryland Mine in Nevada County. In no way will Applied Economics be held responsible or have any liability or be subject to damages as a result of this analysis. This report may be used only for the purposes that it was intended.
2
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Rise Grass Valley has not established mineral reserves supported by a feasibility study. Rise Grass Valley has not completed a feasibility study to establish mineral reserves, and therefore has not demonstrated economic viability of the Idaho‐Maryland Mine. Rise Grass Valley has not made a production decision for the Idaho‐Maryland Mine.
Applied Economics Background Applied Economics LLC is an economic consulting firm, based in Phoenix, Arizona, specializing in economic development, economic and fiscal impact assessment, incentive analysis, socioeconomic modeling and urban planning. Our clients include local governments, as well as private companies, developers, utilities and regional economic development organizations. Applied Economics regularly conducts economic and fiscal impact studies and develops models to measure the effects of a wide variety of activities. These activities range from land use and policy changes to business‐specific economic impacts for relocations, expansions and new projects. The principals at Applied Economics have worked together for more than twenty‐five years, and are very experienced in working with local and regional planning and development issues. We strive to provide the necessary technical information, in an unbiased and understandable format, in order to allow decision‐makers to make better, more informed choices
3
2.0 IMPACT SUMMARY
The economic benefits resulting from the Project include the direct activity created by the mining and processing operations, as well as the indirect and induced impacts created by local supplier purchases and employee spending. Economic impacts measure the effects of economic stimuli, or expenditures, in the local economy. All industries have some kind of economic impact in the rest of the economy. Resource‐based industries like the Idaho‐Maryland Mine that pay high wages and also make a significant number of local purchases, create greater local economic impacts than firms that do not possess these characteristics. The economic impacts shown here include direct and indirect jobs, labor income, and output that could be generated by the Project. Indirect and induced impacts are the result of the multiplier effect and capture supported supplier and consumer businesses and their employees throughout Nevada County that could benefit from this project. The operations of the Project detailed in this analysis could provide significant benefits to Nevada County. These positive economic impacts include the following: Economic Impacts
Overall Operations Impacts. All total, the Project could create a total annual impact of $211.3 million on the local economy of Nevada County at full operating levels. The operations of the mine could directly and indirectly support an estimated 612 jobs per year and $50.8 million in annual labor income in Nevada County.
Jobs and Income. The mine would employ 312 people with a total payroll of $37.7 million annually, including $8.5 million in annual benefits. Through the multiplier effect, approximately 300 additional local jobs and $13.1 million in annual payroll could be supported at other businesses throughout Nevada County. These additional jobs and payroll stem from direct, indirect and induced impacts of supplier demand created by the Project and consumer demand created by employees.
Local Supplier Spending. The mine could make an estimated $12.5 million in annual local purchases for various services and supplies each year. Based on the types of purchases that are made locally, the economic impact of supplier purchases in Nevada County is estimated at $19.9 million per year. This indirect impact is included in the overall operations impact above.
Employee Spending. Another component of the operations impact comes from employee spending. The 312 employees working at the mine and related processing facilities, as well as employees of local suppliers could make a significant amount of local purchases. The effect of employee purchases could generate an induced
4
economic impact of $32.0 million to the Nevada County local economy each year, supporting many local businesses.
FIGURE 1
SUMMARY OF RESULTS (Millions of Dollars)
Annual Impacts
Idaho‐Maryland Mine Profile
Total Annual Revenues $159.4
Volume of Production (ounces/year) 108,405
Average Price per Ounce $1,470
Employment 312
Payroll and Benefits $37.7
Local Vendor Purchases $12.5
Economic Impacts
Total Output $211.3
Total Labor Income $50.8
Total Jobs 612
5
3.0 ECONOMIC IMPACTS
Economic impact analysis is a means for identifying the nature of changes in jobs, labor income and business activity that can occur in a given geographic area as a result of a new project or investment. Economic impacts shown here represent the projected annual operations impacts of the Project at full production levels. They are expressed in terms of direct, indirect and induced jobs, labor income and output that could be generated by the Project annually. Indirect and induced impacts are the result of the multiplier effect and capture supported supplier and consumer businesses and their employees in Nevada County that could benefit from Project operations. There are additional indirect and induced impacts that will occur outside the county that are not included in this analysis.
Jobs and Payroll Direct impacts include jobs and payroll at the underground mine and on‐site mineral processing operations, as well as the value of production. Indirect jobs and payroll include local vendors in Nevada County from which the mine will make purchases to support their operations. Induced impacts represent consumer purchases made at local establishments by employees. These local establishments and their employees in turn make additional local purchases that are captured in the total impact estimates. The total impact includes the direct impacts and the secondary indirect and induced impacts created by other local businesses and their employees. Additional purchases by both the mine and its employees will also occur outside the county and are not represented here. The Project will employ an estimated 312 people in Nevada County at full operating levels including underground mine workers as well as mineral processing workers, trades, professional technical services, equipment operators, management and general administrative employees. Of the 312 total workers, 213 will be hired locally. This includes 162 local trainees or entry level workers, 51 experienced local hires, and 99 workers that are assumed to be hired from outside the county. The total annual payroll including benefits is estimated at $37.7 million dollars (Figure 4). This includes an overall average wage per employee of $93,700, which is well above the all‐industry average wage for Nevada County. In addition, Rise Gold Corporation would provide a substantial employee benefit package. On average, it is estimated that employee benefits add an additional 22 percent to total employee compensation.
6
FIGURE 2 IDAHO‐MARYLAND MINE EMPLOYMENT AND PAYROLL
Local
Trainees
Local
Experienced
Hires
Total Local
Hires
Non‐
Local
Hires
Total
Employees Payroll Benefits
Total 162 51 213 99 312 $29,220,000 $8,474,000
Underground Mine 80 18 98 58 156 $14,712,000 $4,206,000
Mineral Processing 36 0 36 0 36 $2,916,000 $936,000
Trades 12 14 26 8 34 $3,291,000 $928,000
Labor ‐ Surface & Underground 17 0 17 0 17 $1,065,000 $425,000
Engineering/Geology/Environmental Svcs 7 7 14 14 28 $2,829,000 $799,000
Admin/Accounting/Security 8 8 16 0 16 $1,314,000 $432,000
Equipment Operators 2 4 6 0 6 $437,000 $159,000
Managers/Supervisors 0 0 0 19 19 $2,656,000 $589,000
Source: Rise Grass Valley.
Employee Spending Impacts
The employees at the Project represent a substantial amount of purchasing power that supports additional jobs and payroll at local retail and service establishments throughout the county. Based on the Census Consumer Expenditure Survey, employees at this wage level spend approximately 80 percent of their pre‐tax income on goods and services, including both local and non‐local spending. Assumptions that are part of the IMPLAN model that is used to estimate the economic impacts are used to allocate a portion of this spending to Nevada County. Based on the level of employee payroll that is projected for the Project and the portion of employee income that would be spent locally, the induced effects of employee spending on local businesses could generate an induced economic impact of $32.0 million per year in Nevada County including $23.4 million related to mine employee spending and $8.6 million from other indirect employee spending (Figure 3). Through this spending, the Project could support an estimated 217 additional induced jobs and $9.1 million in annual payroll in Nevada County. These induced impacts include jobs and payroll at the establishments where employees shop, as well as additional jobs and payroll at the local suppliers to those establishments.
FIGURE 3 EMPLOYEE SPENDING IMPACTS IN NEVADA COUNTY
Local Employee
Expenditures Output Jobs
Labor
Income
Mine Employee Spending $16,124,000 $23,435,000 152 $6,674,000
Indirect Employee Spending $5,917,000 $8,580,000 65 $2,425,000
Total $22,041,000 $32,015,000 217 $9,099,000
Induced Impact
7
Vendor Spending Impacts
Another important component of the mine’s impact is from local vendor purchases. The mine would be able to source a sizeable portion of their facility maintenance, operating supplies, transportation, equipment repair, lodging and professional services through local vendors, which make up a significant portion of total vendor spending (Figure 4). The mine would also use a large amount of power from the local utility provider. The fact that the mine could source 41 percent of their purchases from local vendors generates a much higher indirect economic impact than would result from a similar type of company with limited local procurement.
FIGURE 4 ANNUAL LOCAL NON‐WAGE OPERATING EXPENDITURES
Expenditure Type
Percent
Local
Nevada
County
Other
California National
Office, Admin & Misc. 35% $1,232,000 $750,000 $1,584,000
Engineering, Environmental, Prof Svcs 50% $360,000 $360,000 $0
Facility & Road Maintenance 100% $457,000 $0 $0
Power & Utilities, Fuel 100% $7,918,000 $0 $0
Equipment Maintenance and Repair 48% $210,000 $130,000 $100,000
Operating Supplies 80% $1,327,000 $180,000 $156,000
Transportation & Deliveries 88% $368,000 $0 $50,000
Lodging and Local Transportation 100% $639,000 $0 $0
Mineral Processing 0% $0 $0 $6,570,000
Drilling & Explosives, Mine Development 0% $0 $803,000 $7,336,000
Total 41% $12,511,000 $2,223,000 $15,796,000
Source: Rise Grass Valley.
Annual Expenditures
All total, the Project is projected to make an estimated $12.5 million per year in purchases from local vendors in Nevada County. As purchases are made from local vendors, they in turn support indirect jobs and payroll in Nevada County. There is also additional local spending that may take place on behalf of the local vendors in the course of their operations that supports additional jobs and payroll. Local vendor purchases could generate an estimated annual economic impact of $19.9 million in Nevada County (Figure 5). This activity could support more than 80 local jobs and $4.0 million in payroll (labor income) each year at vendor establishments and their suppliers in Nevada County.
8
FIGURE 5 VENDOR SPENDING IMPACTS IN NEVADA COUNTY
Local Supplier
Expenditures Output Jobs
Labor
Income
Office, Admin & Misc. $1,232,000 $1,900,000 18 $586,000
Engineering, Environmental, Prof Svcs $360,000 $574,000 5 $244,000
Facility & Road Maintenance $457,000 $689,000 6 $261,000
Power & Utilities, Fuel $7,918,000 $13,075,000 25 $2,027,000
Equipment Maintenance and Repair $210,000 $310,000 3 $94,000
Operating Supplies $1,327,000 $1,890,000 8 $317,000
Transportation & Deliveries $368,000 $563,000 4 $172,000
Lodging and Local Transportation $639,000 $930,000 14 $340,000
Total $12,511,000 $19,931,000 83 $4,041,000
Indirect Impact
Overall Economic Impacts
The composite operations impact results presented here are broken down in terms of direct impacts at the mine, indirect impacts (vendor purchases), and induced impacts (employee spending). All total, the operations of the Project could create an annual economic impact of $211.3 million on Nevada County’s economy (Figures 6 and 7). This impact of $211.3 million per year represents about a 4 percent increase in overall county GDP. The mine could directly and indirectly support an estimated 612 jobs and $50.8 million in total annual labor income at full operating levels.1
FIGURE 6 TOTAL ANNUAL ECONOMIC IMPACTS OF THE IDAHO‐MARYLAND MINE
IN NEVADA COUNTY
Output Jobs Labor Income
Direct Mine Operations $159,355,000 312 $37,694,000
Induced Impacts
Local Supplier Spending $19,931,000 83 $4,041,000
Induced Impacts
Direct Employee Spending $23,435,000 152 $6,674,000
Indirect Employee Spending $8,580,000 65 $2,425,000
Total Annual Economic Impact $211,301,000 612 $50,834,000
1 U.S. Bureau of Economic Analysis, GDP by County 2019, released December 9, 2020.
9
FIGURE 7 ANNUAL OUTPUT IMPACT BY COMPONENT
(Millions of Dollars)
$159.4
$19.9$32.0
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
Mine Operations Vendor Spending(Indirect)
Employee Spending(Induced)
The total economic impact includes $159.4 million per year in direct output by the mine. Projected annual sales are used as an estimate of direct output for the purpose of the economic impact analysis. Direct jobs in Figure 6 represent employees at the mine and related processing facilities, whereas total jobs include local vendors where the mine makes purchases, and local establishments where employees shop. These supported local businesses and their employees in turn make additional local purchases that are captured in the total impact estimates. The total impact includes both the direct indirect and induced impacts and the secondary impacts created by other local businesses and their employees. The secondary, or indirect and induced impacts, presented here are called multiplier effects. Multiplier effects are a way of representing the larger economic effects on the local economy. Multiplier effects translate an increase in output (loosely defined as labor cost plus intermediate inputs plus profits) into a corresponding increase in jobs and labor income. In essence, the multiplier effect represents the recycling of local spending. This recycling process creates new business opportunities. The multipliers used in this analysis are from IMPLAN, a national vendor of economic impact software, and are specific to Nevada County. Industry‐specific multipliers were used for each category of vendor purchases, and income‐specific household consumption multipliers were used to model employee spending. On average, the Nevada County output multiplier for the Project is 1.33. This means that for every $1 million of output or sales from the mine, an additional $330,000 in local economic activity is generated in the county’s economy along with 4 local jobs and $319,000 of local payroll. Typically, economic multipliers for resource‐based industries are higher than multipliers for other types of industries, particularly in areas where there is a well‐developed supplier base to support the mining industry.
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4.0 SUMMARY
The Idaho‐Maryland Mine and its related processing facilities would directly provide high paying jobs to approximately 312 workers in Nevada County, as well as supporting the local economy with millions of dollars each year in local vendor purchases. An estimated 612 local direct, indirect and induced jobs could be created by the Project at full production. The fact that the mine would make more than 40 percent of its vendor purchases from local establishments greatly increases the multiplier effects in terms of the share of economic benefits that stay in the county. These local vendors, in turn, are also more likely to make purchases locally, resulting in a cascade of economic benefits to the region. In addition, mine employees and other supported indirect and induced workers create local economic impacts through their consumer spending. Although not studied in this analysis, the increases in overall economic activity lead to increases in local and state tax revenues that will create returns for the public sector, along with the economic impacts in the private sector. Construction activities would also create additional jobs that are not captured in this analysis. Further, a significant amount of additional jobs would be created elsewhere in California and nationally from vendor purchases and employee spending related to the Project. The Idaho‐Maryland Mine Project capitalizes on valuable local mineral resources to create significant long‐term economic benefits for Nevada County.