The Mining and Lands Commissioner

Le Commissaire aux mines et aux terres

File No. MA 038-00

Friday the 1st, day of March, 2002.

L. Kamerman
Mining and Lands Commissioner

The Mining Act

In the matter of

The required Closure Plan regarding mining operations of Vedron Gold Inc. ("Vedron") involving the Buffalo Ankerite Mine, in the Townships of Tisdale and Deloro, (hereinafter referred to as the "Closure Plan").

And in the matter of

The Requirement of the Director of Mine Rehabilitation (the "Director") pursuant to subsection 147(1) of the Mining Act, dated September 6, 2000, that Vedron shall give a notice in writing to the Director that contains the prescribed information relating to the Buffalo Ankerite Mine in connection with the Closure Plan;

And in the matter of

A Notice to Require a Hearing before the tribunal under Part VII of the Mining Act, pursuant to subsection 152(1) of the Mining Act, concerning the Requirement of the Director, dated September 6, 2000 (the "Director's Requirement of September 6, 2000").

Between:

Vedron Gold Inc.
Appellant

and

The Director of Mine Rehabilitation
Respondent

Order to deposit funds and Order to adjourn hearing sine die

Whereas the hearing of this matter was scheduled for the 5th and 6th days of March, 2002, pursuant to an Appointment For Hearing issued by this tribunal on the 19th day of November, 2001;

And whereas the parties to this appeal reached an agreement in principle towards the final resolution of this matter involving terms and conditions, and further the parties or their counsel having consented to an adjournment sine die pending the completion of the terms and conditions agreed upon;

And whereas the parties have agreed to an action plan for the site known as the Buffalo Ankerite Property, as a partial step towards closure and to address health and safety concerns caused by the ongoing use of the aforementioned site by trespassers;

And whereas nothing in the action plan agreed to by the parties or outlined in this Order shall be deemed to be a concession by Vedron Gold Inc. of the legal requirement to file a closure plan, the determination of which shall be made, along with all other issues arising, following a hearing on the merits, should it become necessary;

Upon consideration of the documentation filed by Thomas W. Meredith, President of Vedron Gold Inc., dated the 28th day of February, 2002, discussion with the parties or their counsel and pursuant to subsection 129(1) of the Mining Act;

  1. This tribunal orders that Vedron Gold Inc. ("Vedron") pay into the Ministry of Natural Resources Account bearing Account Number 256-419-3, with the Royal Bank of Canada, 401 George Street North, Peterborough, Ontario, (705) 876-3520, through wire transfer or deposit by certified cheque, by no later than 4:30 p.m. on Friday, the 1st day of March, 2002, the amount of $20,000.00 (twenty thousand dollars Canadian) for rehabilitation action plan purposes set out in Paragraph 2 of this Order.
  2. This tribunal further orders that the aforementioned $20,000.00 referred to in Paragraph 1 of this Order be used by Vedron for purposes of backfilling two exposed openings on the Buffalo Ankerite Property (the "Site"), referred to as the Farish Shaft and the 176 Raise, to be carried out by a contractor locally available to the Site, using approved pit run sand material that is locally available, such work being completed on or before the 15th day of May, 2002 and further directs that such work be carried out in a manner that is satisfactory to the Director of Mine Rehabilitation, failing which the Director of Mine Rehabilitation is hereby empowered to draw upon the aforementioned $20,000.00 or any remaining balance thereof, for purposes of carrying out and completing the aforementioned backfilling work.
  3. This tribunal further orders that Vedron pay into the Ministry of Natural Resources Account being Account Number 256-419-3, with the Royal Bank of Canada, 401 George Street North, Peterborough, Ontario, (705) 876-3520, through wire transfer or deposit by certified cheque, no later than 4:30 p.m. on Tuesday, the 2nd day of April, 2002, the amount of $10,000.00 (ten thousand dollars Canadian) for rehabilitation action plan purposes set out in Paragraph 4 of this Order.
  4. This tribunal further orders that the aforementioned $10,000.00 referred to in Paragraph 3 of this Order be used by Vedron for purposes of the repair of the fence surrounding the Site with heavy wire fencing material, conforming to the minimum construction standards of CAN/CGSB-138.1-.4, such work to be completed on or by the 15th day of May, 2002 and further orders that Vedron will monitor and arrange security with local contractors for the Site from the Victoria Day Weekend, in late May, to and including the middle of September, advising the local Ministry of Northern Development and Mines staff concerning the security arrangements and further directs that such work be carried out in a manner satisfactory to the Director of Mine Rehabilitation, failing which the Director of Mine Rehabilitation is hereby empowered to draw upon the aforementioned $10,000.00 or any remaining balance thereof to carry out and to complete fence repair and to monitor and secure the Site.
  5. This tribunal further orders and directs Vedron in carrying out the rehabilitation measures outlined in Paragraphs 2 and 4 of this Order, to provide the tribunal, from time to time, with invoices and verification of work carried out, along with information regarding the individual or entity entitled to payment, so that the tribunal may order payment out of funds deposited in connection with this matter in the Royal Bank of Canada account of the Ministry of Natural Resources and further orders and directs that Vedron use its best efforts to vigorously prosecute any and all known trespassers.
  6. This tribunal further orders that Vedron use its best efforts to negotiate by no later than the 1st day of July, 2002, a permanent pit backfilling arrangement of three pits on the Site known as Pit 175, Pit 203 and Pit 203a, such arrangement to be with Placer Dome, by methods acceptable to the Director of Mine Rehabilitation, in conjunction with the exploration work being undertaken on the property, and without limiting the generality of the foregoing, such backfilling to include use of fill alone or in conjunction with other techniques including but not limited to blasting.
  7. This tribunal further orders that the hearing of this matter be and is hereby adjourned sine die.
  8. This tribunal further orders and advises that failure to obtain the agreement with Placer Dome as set out in Paragraph 6, above, will result in the hearing of this appeal immediately or as soon thereafter as scheduling by the tribunal will permit.

Dated this 1st day of March, 2002.

Original signed by L. Kamerman
Mining and Lands Commissioner