DURANGO, Colo.—An unlicensed gold mill in western Colorado is polluted with mercury and arsenic, state regulators said, and they fined the operator more than $337,000.
The Durango Herald reported Thursday ( ) the Mined Land Reclamation Board accused Red Arrow Gold Corp. of six violations including operating a mill in the town of Mancos without a permit.
Russ Means, an inspector for the state Division of Reclamation, Mining and Safety, told the board at a Wednesday meeting that inspectors don’t know what the implications of the pollution are for Mancos residents.
Richard Eaman, a representative of Red Arrow President Craig Liukko, told the board the operation was a test plant, not a mill.
In an Aug. 2 letter to state officials, Liukko said he had been cleaning up the operation but was interrupted by a financial dispute. He said a receiver has blocked access to the operation and frozen company assets.
The operation in Mancos has been shut down since April because of the dispute.
Tests on one piece of equipment found mercury concentrations of 32,000 parts per million, and the standard for industrial operations is 43 parts per million, Means said.
“It is safe to assume the whole building has some level of mercury and arsenic contamination requiring remediation,” Means said.
Loretta Pineda, director of the Division of Reclamation, Mining and Safety, said the federal Environmental Protection Agency plans to inspect the site to determine whether it should be cleaned up under the Superfund law.
The Mined Land Reclamation Board said $185,000 of the fine against Red Arrow could be suspended if the company cooperated with the cleanup and increased the bond it has posted with the state.
The amount of the company’s current bond wasn’t immediately available.
Liukko said the company was “at a loss to provide assistance” to the board.
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Information from: Durango Herald,
