Last week, Solidus Resources, LLC responded to the protests about the 18 water right applications it filed with the Nevada Division of Water Resources (NDWR) on January 19, 2024 (93213-93230). Solidus plans to construct, operate and eventually reclaim an open pit gold mine in the Buena Vista Valley - the Spring Valley Project.
On March 27, 2024, NDWR notified Solidus of protests to its applications. NDWR's notification to Solidus set a process into motion. Its nuts and bolts are spelled out in the Nevada Administrative Code (NAC) 533.140. Solidus had 45 days in which to respond to the protests if they chose to. If they did respond, they were required to, and did, send a copy of their response to the State Engineer and each person who protested the applications.
On May 10, Solidus filed its "Answer to Protests," a 12-page document plus two exhibits. It drew on the expertise of Timothy P. Donahoe, a hydrogeologist based in Reno. His LinkedIn page says he is "adept at effectively resolving conflict with stakeholders and regulatory agencies by being keenly aware of potential cumulative environmental impacts associated with natural resource development..."
Pershing County protested all 18 of Solidus's applications. The Humboldt River Basin Water Authority protested one (93230), which requests to withdraw up to 15, 968 AFA of groundwater from the Buena Vista Valley (Basin 129) for dewatering. Five other individuals also protested, including Lovelock resident Chuck Cummins who has been vocal in his opposition to the applications for the past few months.
Solidus's document notes the absence of a protest from the Central Nevada Regional Water Authority (CNRWA). They protect water resources within the Central Hydrographic Region, where Solidus plans to operate the mine.
However, Jeff Fontaine, the Central Nevada Regional Water Authority Director, said that Solidus' public comment time frame and requirements left little window to adequately protest through a response.
"CNRWA did not make a decision to not protest the applications," Fontaine said via email. "We did not have enough time to meet CNRWA's criteria for protesting the water rights applications."
Cummins invited Senator Alexis Hansen to a Pershing County Commissioners meeting on May 15 where Solidus representatives gave a presentation about their plans. Cummins questioned them but ran afoul of Commissioner Larry Rackley who shut the questioning down when it became heated.
"Chuck is a good guy. However, I do not believe he is on point with his research. Solidus does have the water rights by buying some that farmers were not using and from water on their own property. They will be a benefit to our County in many ways," he said.
Commissioner Shayla Hudson remains unconvinced after reading Solidus's replies to the protests. She sits on numerous boards related to water rights including the Central Nevada Water Basin and HRWBA.
"My biggest interest is how the Humboldt River water is managed because of the effect it has on the Lovelock Valley," she says.
Hudson notes that the Basin has a perennial yield of 10,000 AFA. "This basin is overappointed by at least three times the perennial yield. This became an enclosed basin in 1979. My concerns are that this will draw down the water to the rest of the residents whether they have irrigation rights, stock rights or domestic rights."
The Solidus document responds to seven protest points, adding that the protests "largely do not conform to NRS 533.365's requirement that protest grounds be set forth with reasonable certainty."
Protest point one argued that Solidus is owned by a large hedge fund. Solidus replies that protest point "is not set forth with reasonable certainty and is irrelevant." They add they are adequately capitalized to proceed with the Project; however, they don't reply to the protest point's underlying concern that global investors mean a loss of local control.
Private equity firm Waterton Global Resource Management's website says it has 1.75 billion in assets under management across two active funds - Waterton Precious Metals Fund II and Waterton Mining Parallel Fund. Waterton Nevada Splitter, LLC, and Waterton Nevada Splitter II, LLC owns Solidus Resources.
After Cummins read Solidus's document, he filled out the paperwork to get on the June 5 agenda of the Pershing County Commissioners.
"I will be on the agenda to discuss who exactly owns Solidus and the Spring Valley Project and why they will not answer some simple questions on this issue. I will also request that Pershing County join me in requesting a formal hearing with the NDWR," he said.
For its part, Solidus requests the State Engineer to forego a hearing, overrule the protests, and grant the permits.
This is a developing story.