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Message: Rye Patch's Coeur lawsuit to wrap up Dec. 20
TRO hearing in mining claims dispute will go into third day
Written by Photography by Michael Michaelsen
Sunday, December 18 2011 09:15

LOVELOCK — The hearing that will decide whether or not a temporary restraining order will stand in a mining claims dispute between Coeur Rochester Mine and Rye Patch Gold will go into a third day of testimony.

Judge Michael Montero continued the matter for Tuesday (Dec. 20) after testimony did not conclude on Friday (Dec. 16).

Coeur sought a temporary restraining order in the 6th Judicial District Court to prevent RPG employees or contractors from entering the mine site. The TRO was scheduled to expire on Thursday (Dec. 15) at which time Coeur hoped to have a permanent injunction in place.

For their part, Rye Patch sought to have the TRO dissolved so they could work mining claims they insist are their own.

The dispute between Coeur Rochester and Rye Patch Gold erupted when the latter filed mining claims on property currently being mined by Coeur. The move by Rye Patch was made possible due to the failure by Coeur Rochester to pay $75,000 in federal maintenance fees on its claims, which were due on or before August 31.

On September 1 the claims were closed and the mineral rights became available for any member of the public to claim. According to testimony, Coeur was unaware the mining claims had been picked up by someone else until November 29. By that time, RPG had stakes in place.

The hearing in 6th JDC only concerns the TRO. The actual lawsuit filed by RPG against Coeur Rochester was filed in the 2nd JDC in Washoe County.

Coeur Rochester was represented at the hearing by Rew Goodenow, of Parsons Behle & Latimer; Rye Patch Gold was represented by Thomas P. Erwin of Erwin & Thompson.

Both sides were instructed by the court to keep their presentations to issues of safety – the primary issue raised in the application for the temporary restraining order. Coeur presented multiple witnesses testifying to the safety efforts -- including Richard R. Wagner, the safety manager at the mine site.

Wagner outlined the hazards represented by an active mine site and the precautions taken by the company to protect employees, contractors, and the public.

An active mine site includes such activities as blasts, removal of rock by large haul trucks, and heap leach pads where cyanide solution is applied to the rock.

Wagner explained federal and state regulations require entry to the site be controlled. To that end, the company has constructed fences, signage, and employs security personnel. Employees and contractors must have MSHA training. Visitors must be site trained and check into the main gate.

In addition to monitoring the safety of people, the company has environmental provisions that must be followed, such as fencing to keep wildlife out of the heap leach pad area where cyanide solution is used.

Wagner alleged from the stand that RPG representatives surreptitiously entered the mine site dressed like Coeur’s contractors, that they cut fences to enter the site, and broadly suggested beer bottles found at the site came from RPG representatives.

Despite the security measures, under questioning Wagner acknowledged the company was unaware that representatives of RPG were on the property staking mine claims. The first confrontations between Coeur and RPG did not occur until December, but by then RPG had stakes in place.

Erwin asked if there were any injuries suffered by RPG during the claim-staking process, but Wagner countered that was something that was unknown to him.

Also testifying to the safety issue was Cindy Jones, the vice president and general manager of Coeur Rochester.

Under questioning from Erwin, Jones said she would not feel comfortable with Rye Patch Gold on the site even if the proper procedures were followed due to their actions in the weeks leading up to the company having obtained the TRO.

Jones acknowledged she did not personally see RPG representatives cutting fences. However, they did not appear to have followed basic mine safety procedures such as checking in at the security gate and obtaining site training.

However, as Erwin repeatedly pointed out it was unknown who cut the fences.

Testifying for RPG was Henry Tonking, who was contracted by RPG to stake their claims.

Tonkig is a geologist who has been staking claims in Nevada and other western states for 30 years. When asked how many claims he had staked during that time, he replied in the tens of thousands.

In court documents Coeur Rochester alleged representatives of RPG entered the site at night.

Tonking, however, told the court he and two other employees worked in the daylight hours. He denied cutting fences, entering active mine sites, or jeopardizing the safety of himself or the crew.

He explained in those areas with security fencing he put a “witness post” listing the correct area of the stake.

He said they accessed the site on public roads using ATV’s where possible and on foot where the terrain was rough. He acknowledged crossing barbed-wire range fencing.

He told the court, “We stayed out of areas they (Coeur) were mining” and he later added, “Most of the places I was in there wasn’t much action.”

He said they saw ore-hauling trucks, but they were quite a distance away. He estimated they were 100 yards away from the trucks.

Under questioning from Goodenow, the witness acknowledged they did not check in with security, wear hard hats, or obtain site training.

However, Tonking also said he didn’t see any “no trespassing” signs nor any signs indicating entry points.

Witness testimony is expected to continue on Tuesday.

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