Potential for open-pit mining in Kapan being determined: environmentalists are strongly opposed.

In the coming months, open-pit mining operations might begin in the southern Armenian town of Kapan.

President and CEO Jonathan Goodman of Dundee Precious Metals (which includes Deno Gold) recently told the local press that the company will complete its initial assessment of its Kapan open pit exploration program in the third quarter.

In a report of a corporate presentation given at the Scotia Capital Mining Conference late last year, Canadian firm Dundee Precious Metals notes that 285,000 meters of historic drilling is completed and that the company is currently carrying out “a full review of open pit potential to properly define and optimize this asset [the Shahumyan deposit].”

Talks to develop open-pit mining in the region began in 2007. Since the the area set aside for mining occupies also a part of the city of Kapan, the local residents — about 40 families — were displaced. Tree felling in the area containing about 50,000 trees also began.

“The actions begun in Kapan in 2009 raised a great uproar. The seriousness of the issue made not only did Kapan residents get up on their feet, but also public events to save Kapan begin in Yerevan too. We wrote letters to Armenia’s authorities, to Canada’s prime minister. And we got to the point that the president of the company officially stated that he’s withdrawing from exploiting the mine,” environmentalist Inga Zarafyan told Epress.am earlier today.

Asked what the danger mine exploitation presents, Zarafyan said, “The mine is near the city. And mine exploitation assumes several large explosions daily — it will be fatal for the entire city.”

Epress.am called Deno Gold Mining and asked whether mining will be open pit or not and whether environmental impact has been assessed.

“The issue of open pit exploration was never removed [from the agenda]. That’s our program. Whether we will exploit the mine or not has not yet been decided; this will be clear after our research,” said head of the company’s public relations division Norayr Aghayan.

Inga Zarafyan, however, believes that the fact that new research is being carried out proves that, nevertheless, there will be an attempt to realize open pit mining operations.

“Environmentalists aren’t interested in the research and its findings, there shouldn’t be an open pit mine. We don’t want assessments, new projects, we are simply against open-pit mine exploitation,” she said.