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Message: Ministry of Environment and Mines (MEM)

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Re: Ministry of Environment and Mines (MEM)

posted on Dec 04, 09 06:18PM

Thanks again Tibber,

I recognize the particular concern raised from Plexmar's perspective as the intent for that Company to explore Bolsa is a primary objective and informal activities on that ground currently work as a detriment to that occuring.

We are well aware of the MEM's mandate and are focused on working with the formal miners of the region. Equally so, we believe we have many creative approaches that will assist the MEM achieve its objectives and enhance the conversion of many miners from informal to formalized activities. As informal mining is hardly an issue unique to northern Peru, we believe our approaches have the potential to work in many jurisdictions.

Of course the Tambo Grande and Rio Blanco examples are important case studies in northern Peruvian community relations, however, the Canada Gold model differs from these situations. Many are aware of Tambo Grande and Manhattan where the project exists in the heart of an existing community and in close proximity to fertile agricultural areas, whereas I understand there exist a variety of issues at Rio Blanco. Surely none of these serves to justify or condone the violence that has erupted in the later region, but it is equally an important reminder of what can occur when relationships sour. Community issues are complex as you well know, and require tremendous sensitivity and focus from step one.

Canada Gold has been active in community relations from the get go, openly sourcing and communicating with local, regional and international governmental and non-governmental, private agencies, local miners and common citizenry regarding our plans. We believe that our approach to the small scale mining community is complementary to the miners' activities and the social benefits continue to attract much interest. As a primary example, our model will assist the removal of mercury from the small scale process, helping curb some of the environmental damage you refer to.

As a final thought on yours, these activities become an ongoing process, not an immediate widespread solution, where the confidence in the Company's presence is earned, not expected. We believe the variety of features and benefits our model may bring for the miners, the government, social interests, and the Company make the approach an appealing one attractive to all sides, which should bode well for our ability to execute the strategy.

Thanks again for your interest.

Best Regards,

Chad McMillan

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