Loan
for Iron Nugget Plant Approved
The Iron
Range Resources Board unanimously approved a $10 million loan
to Mesabi Nugget last week. The loan will aid in the development
of a commercial iron nugget plant at the Cliffs-Erie property
near Hoyt Lakes. The iron nuggets will create an entirely new
use for Iron Range taconite. The iron nuggets have about 30%
more iron than do taconite pellets and they can be used as direct
feed for the electric arc furnaces of new steel-making mini-mills.
The Minnesota
Pollution Control Agency should have all necessary permit applications
on file by October. Construction at the facility should create
about 500 jobs for two years and about 100 permanent jobs will
be added during operations. [09.25.2004]
National
Mining Association Names Chairman
The
National Mining Association Board, the largest mining association,
is expected to name John S. Brinzo as its new Chairman. Brinzo
is Chairman and CEO of Cleveland-Cliffs, Inc.
As chairman,
Brinzo will lead the organization in efforts to develop a national
mineral policy, create and maintain mining jobs, and address
issues in the western states concerning the environment and
land use. [09.25.2004]
Ontzinc
Becomes Hudson Bay International
Ontzinc
Corporation has acquired 100% of Hudson Bay Mining and Smelting
("HBMS") from Anglo American International, S.A. ("Anglo
American") for $325 million. Subject to shareholder approval,
Ontzinc will change its name to Hudson Bay International Minerals
Corp. ("Hudson Bay International").
HBMS is a Canadian mining company, which has a strong ore reserve
and resource base, substantially refurbished operations and
an experienced workforce and management team, which will remain
in place. ONTZINC Corporation is a mineral exploration and development
company. Its strategy is to focus on the acquisition of high
quality, North American mining assets at an advanced stage of
development.
Ontzinc currently owns and operates four mineral projects: the
Balmat Mine in the State of New York, U.S.A.; the Gays River
Mine in the Province of Nova Scotia, Canada; the Southwestern
Ontario Project in the Province of Ontario, Canada; and the
San Antonio Project in Chile. [10.10.2004]
Kennecott
Meets With Advisory Panel
Kennecott
Mining Company held their first community advisory group meeting
on October 18, 2004. The meeting kicked off Kennecott's plan
to develop interactive channels of communication within the
local community and to identify those environmental and socio-economic
issues which are of greatest concern to residents. The meeting
included a detailed presentation on the proposed nickel-copper
mine and provided an opportunity for group members to interact
with the public.
The group appeared to be most concerned with the topics of acid
mine drainage and the ore processing process, two topics that
have been near the top of the anti-mining agenda. The advisory
group also suggested a series of additional topics that they
would like to see addressed at future meetings, including the
reclamation plan, the contingency plans, transportation concerns,
and various financial impacts.
A Kennecott spokesman noted that the project would create 120
to 140 full-time jobs and be responsible for an additional 350
to 500 indirect jobs. He noted that if the project receives
all necessary permits, construction could start by mid-2006
with production by mid-2008. The mine life is currently estimated
at six to eight years depending on the annual production. Kennecott
will invest approximately $100 million dollars in this project.
[10.19.2004]
Merger
Will Create World's Largest Steel Company
If the
proposed deals are consummated as planned, the LNM Group will
first merge its two divisions and that resulting company will
then take over International Steel, forming the world's largest
steel company, to be known as Mittal Steel.
Mittal Steel, as a result of the merger, would become majority
stockholder of Hibbing Taconite Co. Worldwide, Mittal Steel
would have operations in 15 countries and provide employment
for nearly 170,000 people. Their production capacity would expand
to about 75 million tons of steel annually.
Continued corporate consolidations within the steel industry
are expected as the wave of bankrupt companies comes to an end
and their infrastructures become ripe for picking. The consolidations
are in fact saving some of the blast furnaces and steel mills
that were headed for the scrap heap just a couple of years ago.
The pellet production from Iron Range taconite plants is not
expected to change as a result of the Mittal Steel announcement.
Changes in ownership of the steel companies and blast furnaces
will not affect the fact that they will continue to need the
iron ore produced by the Iron Range mines.
Customers of bigger steel companies, such as auto manufacturers,
may be the most affected because they will have a more difficult
time negotiating competitive steel prices.[11.06.2004]
Michigan's
Sulfide Mining Legislation Moves Forward
In
what has been a relatively fast paced process, the Michigan
Legislature is set to receive the recently completed bills addressing
non-ferrous mining in Michigan. The House Bill and Senate Bill
are both expected to be taken up by the environmental committees
of their respective bodies sometime in the next several weeks.
Michigan's Department of Environmental Quality considers the
proposed legislation to be among the most comprehensive non-ferrous
underground mining controls in the United States. The legislation
defines the sequential permitting process, requires a thorough
environmental assessment and mandates the mining company cover
potential cleanup costs prior to the start of operations.
A number of environmental and conservation groups, the state
regulatory agencies and the mining developer worked to provide
input and to negotiate issues for the proposed legislation.
Water quality proved to be the most controversial issue of the
special interest groups involved.
Kennecott Minerals Company has identified their Eagle Project
as a nickel and copper deposit and they are now evaluating the
feasibility of an actual mining operation at the site. If developed,
the mine could be the only nickel mine in the United States.
[11.06.2004]
Michigan
House Passes Sulfide Mining Bill
Following
a 10-0 vote by the House Agriculture and Resource Management
Committee, the bill that would establish rules for sulfide mining
in the state Michigan was sent to the full House of Representatives.
On November 10 the House moved 108-0 to send the approved sulfide
mining bill on to the Senate.
The approved legislation requires that mining companies pay
a $5,000 application fee and prepare a detailed environmental
assessment with plans for complete environmental protection
including contingency plans for unforeseen mining problems.
The applicant would also be required to guarantee financial
coverage for the operations and mine closure.
In order to become law, the bill would have to be approved by
the Senate and signed by Gov. Jennifer Granholm by the end of
the year. Missing those deadlines will require all bills to
be reintroduced in the next session.
Currently, the rules are intended to guide Kennecott Minerals
Co. in their environmental study of a nickel - copper deposit
in the Yellow Dog Plains of Marquette County. [11.11.2004]
Tribal
Opposition to Mining
Tribal
sources indicate that the passage of the sulfide mining bill
by the House of Representatives will probably bring on legal
opposition by the Keweenaw Bay Indian Community. The Community
has reportedly applied to the Bureau of Indian Affairs for the
necessary funds to take the issue to court.
According to a statement submitted to the House Environmental
Committee, the Community has the following concerns:
- Acid Mine Drainage into groundwater
and surface water
- Allowing only a 14 day permit
review by regulators and a 28
day permit decision
after public hearings are completed
- Allowing the mining company
to prepare its own impact statement
- The "life" of the
mining permit should not be perpetual
The Community is basing their legal opposition on the tribal
rights granted by the 1842 and 1854 Treaties between the Tribe
and U.S. Government. [11.11.2004]
Sulfide
Mining Bill Passed
Gov.
Jennifer Granholm will have the sulfide mining bill on her desk
is a matter of days. The bill, a result of consensus among numerous
regulatory, environmental and mining factions, was approved
by the Michigan Senate with a 37-0 vote. However, because of
a few minor changes in the Senate version, the bill was returned
to the House of Representatives where a concurrence vote of
90-0 enables the bill to be sent to the governor for signature.
Reportedly, Granholm supports the legislation and will sign
the bill. The signature will give Michigan state of the art
mining legislation that paves the way for Kennecott Minerals
Company to proceed with the environmental and mine development
studies needed to reach a decision on the Eagle Project in Marquette
County. [12.09.2004]
Mining
Reform Shaping Up
U.S.
Rep. Jim Gibbons, with the support of Senate Minority Leader
Harry Reid, D-Nev., has established a technical committee on
mining law to propose and endorse mining law reform. In a speech
to the Northwest Mining Association's annual convention in Spokane,
Wash., Gibbons said that the time has come to make significant
reforms in the federal mining laws, mainly because we currently
have an administration that is more supportive of mining and
those efforts to accomplish basic changes in the mining laws.
Gibbons supports such changes as authorizing mines that are
closing being allowed to leave the mine infrastructure in place
for other purposes that will benefit the remaining mining community;
applying a fair and equitable fee for all mining activity; and
including the coal mining industry along with hard-rock mining
activities.
Representatives of the National Mining Association have indicated
that the NMA will support Gibbons effort to reform of the 1872
Mining Law particularly with respect to the time and efforts
necessary to obtain mining permits. Problems with permitting
which result in long expensive delays, are forcing companies
to explore and develop mines in many other parts of the world.
Mining proponents are quick to point out that increased environmental
standards are not the cause of the permitting delays, but are
more the result of the significant differences between environmentalists
and the mining industry. [12.12.2004]
Sulfide
Mining Bill Is Now Law
The
first step in mining regulation is now law -- Gov. Jennifer
Granholm has signed the "sulfide mining" bill authorizing
the state of Michigan to regulate the mining of metallic minerals
such as copper, zinc, nickel and gold.
The
Michigan Department of Environmental Quality will immediately
begin to draft the rules and enforcement guidelines as set forth
in the new law. Permitting requirements for the development,
operation and closure of any mining operation, including remediation
and the financial obligations for monitoring and environmental
restoration, will be developed over the next year.
This
law is designed to control the permitting of the Kennecott Minerals
Company "Eagle Project" on the Yellow Dog Plains of
Marquette County in the Upper Peninsula. At this point in the
pre-development phase, Kennecott has not actually applied for
permits. Significant geologic, socioeconomic, environmental
and financial information must be developed before a decision
to proceed is made by the company.
MDEQ
Declines USGS Study
Michigan's
Department of Environmental Quality has turned down an offer
by the U.S. Geological Survey to conduct a baseline hydrologic
survey of the Yellow Dog Plains region. Harold Fitch, state
geologist, addressed the hydrologic survey issue in correspondence
with Powell Township, indicating that such a survey was unnecessary
because if any mining company submits plans to develop a mine
in the area, the MDEQ would require an intensive evaluation
of the proposed mine site hydrology as well as that of the surrounding
area. Fitch noted that the proposed USGS project would be too
broad to focus on the potential impacts of a specific mine.
Michigan is in the process of developing a detailed permit process
to define the recently approved mining legislation. The new
regulations will require a site-specific environmental impact
study including regional impacts. That study would be funded
by the permit applicant.
Local government officials and environmental opponents of Kennecott's
"Eagle" project had requested the USGS study to assure
that mining can be done without damaging the local ecosystem.
The USGS study proposed a five-year program with estimated costs
of $1.5 million, $1.1 million of which would have to come from
local funding sources. [01.05.05]
PolyMet
Submits Information
PolyMet
Mining Corp. has provided the State of Minnesota Department
of Natural Resources with the information necessary to prepare
a Draft Environmental Assessment Worksheet (EAW) for PolyMet's
"NorthMet" Project near Babbit, Minnesota. The filing
initiates Minnesota's environmental review process which will
culminate in the production of the Environmental Impact Statement
(EIS) and open the door to Minnesota's first base and precious
metals mine.
PolyMet's
Project Manager, Don Hunter, has indicated that PolyMet believes
that every concern raised about the project can be addressed
in an environmentally responsible manner through careful mine
design and operational procedures. PolyMet plans to deploy a
state-of-the-art water-based processing technology using pressure
autoclaves as an alternative to conventional smelting
The NorthMet
Project is a 4000-acre resource located adjacent to existing
taconite mining operations. It will reuse the former LTV Steel
Mining Company plant and infrastructure which are now referred
to as the "Cliffs-Erie" facilities. The PolyMet proposal
is one of the largest non-ferrous metals deposit in North America.
The NorthMet
Project development timeline has operations beginning in 2007
with full-time employment for approximately 400 people. The
peak construction workforce of about 1,000 trade workers will
be needed to meet the proposed timeline. The startup date assumes
that the state of Minnesota will continue their willingness
to accommodate the NorthMet timeline as they compile their environmental
reviews. [01.11.2005]
PolyMet
Initiates Drilling Program At NorthMet
PolyMet
Mining Corp. ("PolyMet") has initiated a large diameter
core drilling program at its NorthMet Project in northeastern
Minnesota. This initial program phase will provide 8,000 feet
of metallurgical drilling to obtain material for pilot-scale
metallurgical testing. The full drilling program will consist
of a total of 90,000 feet needed to complete a definitive feasibility
study and provide for detailed mine planning, waste rock characterization
as well as other important aspects for the environmental permitting
program. The results of the 90,000 feet drilling program will
be added to the existing 185,000 feet of drilling data utilized
to define the pre-feasibility stage.
The metallurgical
drilling will be carried out from up to 25 new sites across
the deposit to collect representative samples covering the first
ten years of production. The full drilling program will support
a detailed 20-year mine life plan based on a projected 25,000
tons per day production schedule.
The metallurgical
testing will confirm the process design parameters and provide
for effluent and tailings waste characterization. This testing
will also improve the level of confidence and precision of capital
and operating cost estimates of PolyMet's water-based, autoclave
mineral processing technology.
The full
drilling program will provide infill information that will allow
for a more accurate resource definition, mine planning, mineral
processing design and environmental management aspects of the
project. It is also important to the environmental review process
and permitting timeline. [02.08.2005]
PolyMet
Updates NorthMet Project
PolyMet
Mining Corp. has submitted for assay more than 1700 samples
taken from its NorthMet deposit in northeastern Minnesota, marking
completion of the winter phase of the 2005 drilling campaign.
The company
has also produced a 40-ton bulk sample to provide necessary
raw material from the deposit for use as feedstock for additional
continuous metallurgical pilot plant testing scheduled for this
summer at SGS Lakefield Research Laboratories near Toronto,
Ontario as part of the definitive feasibility study program.
The winter
drilling effort involved two diamond drill contractors that
produced nearly 30,000 feet of core from 48 holes at 35 locations
across the deposit, focusing on the mineralized envelope representing
the first 10 years of mining.
The final
phase of drilling activity will resume following the spring
break-up period with a goal to complete the 90,000 feet campaign
before year's end. The new resource information will be added
to an already large database from over 185,000 feet of previous
drilling.
PolyMet's
2005 drilling campaign is an essential element in the company's
ongoing, definitive feasibility study that will serve as a basis
for commercial development of the NorthMet Project by early
2008. [05.08.2005]
PolyMet
Wants To Fill Wetlands
The PolyMet
Mining Co. has formally applied for a U.S. Army Corps of Engineers
permit to fill or drain 1,200 acres of wetlands for a proposed
copper mine in the Superior National Forest. This is the first
formal action taken by PolyMet and signals that the company
is moving forward with the state's largest base metal mining
operation.
The proposed
open-pit mine will eventually involve over 4000 acres and will
encompass the largest wetlands area since tracking of new developments
in Minnesota was initiated by the Corps of Engineers. Federal
law requires that the applicant (PolyMet) mitigate the 1,200
acres of lost wetlands. The company will be required initially
to look at the possibility of replacing the wetlands either
on-site or in the immediate area.
According to the permit application, approximately 24 million
tons per year will be mined and the ore will be transported
by rail from the site to the moth-balled LTV Steel facility
about eight miles to the west. The mining process at NorthMet
will leave a waste rock that would be acidic and will contain
metals in concentrations that would require treatment before
discharge. A number of studies will be required to determine
the magnitude and quality of the discharge from the waste rock.
The copper,
nickel, gold, palladium, platinum and cobalt will be removed
from the host rock by a high-temperature solvent extraction
process that generates little or no air degradation as opposed
to the traditional smelting process.
The permit
application filed last week triggers a 30-day public comment
period. Even though the increasing value of minerals has pushed
the mining process onto a fast-track, actual mining will require
several years of study before it can be approved by all state
and federal regulators.
The Minnesota
DNR, Minnesota Pollution Control Agency, the Army Corps of Engineers,
U.S. Environmental Protection Agency, U.S. Forest Service and
U.S. Fish and Wildlife Service will all be involved in the environmental
review of the PolyMet project. These regulatory agencies will
cover all aspects from wetlands to the impact of runoff to air
quality issues. Even the impact on federally endangered species
in the area will be reviewed in detail. PolyMet has stated that
they believe that they can overcome any environmental issues
related to the development and operation of the mine. [05.13.2005]
Mining
Rules Gaining Momentum
The Michigan
Department of Environmental Quality has received what has been
termed "a very good compromise document" relating
to the preparation of rules that will be implemented to cover
mining in Michigan. The work group, made up of individuals representing
a variety of interest groups, completed a recommended draft
of the rules to the DEQ late last week.
Disagreements
between the interested parties are predominantly focused on
guarantees that mine reclamation will be financially covered
prior to the start of mining. Other areas of contention include
the details of mining plans, waste and water containment plans,
and the details of the reclamation process.
The need
for a socioeconomic analysis is one area of interest for local
governmental jurisdictions as is the subject of taxation and
the mechanism for distribution.
In order
to meet the statutory requirement that the mining rules be in
place by the first of December, the Michigan DEQ must complete
an internal technical review of the rules by the end of May
and then solicit input from a number of other state agencies.
At least one public hearing will be conducted in Marquette County
during the process. When the DEQ completes their work, the rules
will be forwarded to the state Legislature's Joint Committee
on Administrative Rules.[05.02.2005]
Proposed
NorthMet Mine Metallurgical Samples Sent For
Testing
A bulk
sample of approximately 42 tons of this drill core from the
planned NorthMet mine site in northeastern Minnesota has been
delivered to SGS Lakefield Research Laboratories near Toronto
for pilot-scale metallurgical testing, which is scheduled for
later this summer. In addition to simulating the full-scale
project the testwork will also yield important information on
environmental performance that will be integrated into the on-going
environmental review and permitting process.
The 22
metallurgical holes were drilled from 11 sites spread across
the strike of the deposit and targeted the envelope representing
the first 10 years of planned mining. Metallurgical drill holes
were selected close to existing exploration holes to increase
the certainty of recovering ore grade material for the testwork
program. All material sent to Lakefield has been logged and
assayed to give a high level of confidence to the grade, chemistry,
and mineralogy of the bulk sample.
A total
of 2,680 individual samples (each representing about 40 pounds
of material available for the bulk sample) were assayed of which
about 2,100 intervals were selected to provide 3 composites
representing the 10 year mining envelope. Each sample was assayed
for copper, nickel, cobalt, platinum, palladium and gold, as
well as a full element scan. Assaying focused on continuous
intervals with visible sulfide mineralization, and not all visibly
barren portions of the core were assayed. Systematically selected
samples were also analyzed for waste rock characterization and
geochemical parameters. A slice from each core was retained
for archive purposes. [07.21.2005]
Meetin'
the Activists
In a
relatively new tactic for mining types, PolyMet mining officials
recently met with about 30 environmental activists at the old
LTV taconite mine at Hoyt Lakes. PolyMet officials hope to avoid
the typical environmental confrontations by openly bringing
the activists into the planning process early on in the development
of their copper-nickel deposit which also contains cobalt, platinum,
palladium, and small amounts of gold.
PolyMet
is currently in the early stages of environmental permitting
and plans to have the scoping environmental assessment worksheet
completed by mid-August and the full Environmental Impact Statement
completed in the later half of 2006. The EIS will be a complicated
document dealing with the full range of environmental issues
and impacts. Wetland disturbances, air emissions, and mercury
discharge standards are the topics considered to be the most
complicated issues.
The mining
of sulfide ores is new to the Iron Range of Minnesota, and the
mere mention of the word "sulfide" draws environmental
activists to the site like stink to a manure pile. To their
credit, Polymet is willing to bring prospective critics to the
table to explain, in basic terms, how and why they believe that
this project can be done safely, particularly with respect to
the potential generation of acid from the mine and waste rock
piles.
At this
point, the environmental activists are taking no position regarding
the project and no decision to oppose or support the mine has
been made. They are, of course, undecided as to whether this
effort by PolyMet is a sincere concern to protect the environment
or just another public relations ploy. They do, however, like
to be in on the early planning so they can decide on opposition
tactics if and when they become necessary. [07.21.2005]
Final
Rules For Sulfide Mining Released
Last
week the Michigan Department of Environmental Quality released
its final rules for governing sulfide mining in Michigan. The
DEQ rules spell out the details for implementation of the sulfide
mining statute that was enacted in December, 2004. The 2004
law was passed to control the potential Kennecott nickel-copper
mine in Marquette County as well as other prospective sulfide
sites.
Over 230 public comments concerning the rules were received
by the DEQ. The majority of comments were submitted to address
specific modifications in the various rules and were considered
by the DEQ in their final revisions. The DEQ's summarized and
presented public comments to the Michigan Joint Committee on
Administrative Rules. This committee now has 15 days to object
to the proposed DEQ rules. [01.11.2006]
Mesabi
Nugget Project Moves Ahead
Cleveland-Cliffs
recently announced that its Board of Directors has approved
Cliffs' capital investment in the Mesabi Nugget Project.
The news release stated that the Board of Directors has authorized
a $50 million in investments and capital expenditures contingent
upon the Project obtaining non-recourse financing for its capital
requirements in excess of equity investments made by the Project
participants. Cliffs' equity interest in the joint venture is
expected to be approximately 23 percent.
Included in the Board's authorization is up to $21 million in
cash allocated for the construction and operation of the commercial
nuggets plant. Capital expenditures to expand concentrate production
at Northshore to support sales to the Project are expected to
be $25 million. In addition, capital expenditures of approximately
$4 million have been authorized for rail transportation of concentrate
from Northshore to the nugget plant. [01.10.2006]
Latin
America Continues Turning Left
In a
direction that bodes ominous for foreign mining and exploration
companies, ultimately placing increased minerals production
pressure on North American operations, a number of South American
countries are increasingly leaning to the left and adopting
an increasingly anti-U.S. attitude Investment risks are becoming
increasingly apparent.
Even in Mexico, Zapatista rebels and national trade unions are
behind a social justice movement that will create a more hostile
political environment particularly if Lopez Orador should succeed
in becoming the next President.
The countries of Venezuela, Bolivia, Peru, Uruguay, Nicaragua,
Costa Rica, Guatemala, Belize, Argentina, and Brazil are all
reportedly causing concerns of various types for foreign businesses
operating there. Operational concerns in these countries range
from significant corporate tax increases through questionable
resource ownership, including the possible expropriation of
corporate assets. It is no longer "business as usual"
in Latin America.
Chile, considered to be the most successful Latin American nation
in creating economic growth and social reforms, now has a recently
elected female president who has expressed the need for continued
foreign investment and trade agreements. Chile, of course, owns
Codelco, the largest copper producer in the world.
As the left-leaning countries continue their changes, there
will be a more intense need for minerals production in the U.S.
Those opposed to mining here in the States are adopting some
of these leftist tendancies …..public protests, inclusion
of indigenous-rights groups and pressuring politicians. We now
have another playbook from which to prepare a defense against
this increasing pressure. [01.12.2006]
MINING
NOTES FROM OUT WEST
Montana
Mine Approved After 20 Years
A silver
and copper mine located in northwest Montana, the source of
environmental controversy for more than 20 years, has been approved
to proceed by the U.S. Fish and Wildlife Service.
Clearance
for the planned Rock Creek Mine, to be constructed at an estimated
cost of about $170 million over a five-year, multi-phased process,
culminates decades-long legal battles over the region's ecosystem.
Revett Minerals (Revett Silver Company) of Spokane, Washington,
plans to open a 10,000-ton-per-day operation below the Cabinet
Mountain Wilderness Area in Montana. This location is one of
the nation's first areas to receive protection under the landmark
1964 Wilderness Act.
The Fish
and Wildlife Service release concluded that the mine will not
adversely affect the area's protected grizzly bears and bull
trout provided the company continuously monitors the effects
of its operations on both populations over the mine's 35-year
life.
As expected, environmentalists vowed to return to court over
the decision. They continue to be opposed to any development
that would displace about 30 bears and contaminate the waters
where bull trout live and spawn. In contrast, Revett's spokesman
applauded the positive decision by noting that they have proven
that there can be a cooperative relationship between the mining
industry and the environment.
Several years ago, the Fish and Wildlife Service concluded that
the proposed Rock Creek Mine would not risk either bears or
fish, but a federal judge ruled that conclusion contained flaws.
The new approval is expected to more than satisfy the various
concerns raised in the earlier court ruling. [October 14, 2006]
Energy
Metals Completes Report on "JAB" Property, Wyoming
Energy
Metals Corporation, a Canadian corporation based in Vancouver,
B.C., has received a National Instrument 43-101 Technical Report
("Mineral Resource Report") related to uranium mineral
resources for its "JAB" Uranium Project located in
Sweetwater County, Wyoming. The mineral resource report estimates
about 2.21 million tons of U3O8 bearing material with an average
grade of 0.073% eU3O8 (an equivalent of 3.23 million pounds
of contained U3O8). Additional indicated mineral resources show
about 325,000 pounds of U3O8. Both measured and indicated resources
use a 0.25 GT cutoff.
Union
Carbide conducted extensive drilling on the lands currently
held by EMC in the 1970's and 1980's. Exploration and development
drilling delineated three mineralized areas utilizing drilling
on 50 and/or 50 by 100 foot centers. Data used to define mineralized
areas on the property includes radiometric and chemical assay
data from nearly 1600 drill holes. [October 13, 2006]
Phelps-Dodge
Land Trade Approved
The United
States Bureau of Land Management (BLM) has issued a Record of
Decision which supports a BLM-Phelps Dodge Corp. land exchange
near Safford, Arizona. Phelps-Dodge can now move forward with
development of the Dos Pobres and San Juan copper deposits located
about eight miles north of Safford.
The BLM
decision triggers the start of an administrative process that
will allow the exchange of valuable, environmentally sensitive
land owned by Phelps-Dodge for public lands of equal value near
the Safford operations. Phelps-Dodge will use the exchanged
land as a buffer zone around the proposed mining operations
and for constructing some support facilities. [07.02.2004]
Effects
of Proposed New Fees on Nevada Mining Industry
The Bush
administration has proposed that the Bureau of Land Management
fees on mining claims be increased from $100 to $125 per year
effective September 1, 2004. Administration officials estimate
that this fee increase would amount to $2.3 million per year
on the mining industry.
Presidential candidate John Kerry, is now calling for revisions
to mineral policies in order to raise money for the operation
and maintenance of our national parks. His revamping initially
proposed an industry-unfriendly comprehensive mining reform
plan that included an 8 percent royalty fee on precious metals
mined from federal land, a doubling of the mining claim fee
from $100 to $200, and elimination of land patents. (Congress
has had a moratorium on patenting since 1994, however, so companies
haven't patented new projects in the past 10 years.) The Kerry
plan drew immediate criticism from the mining industry and Nevada
lawmakers.
His proposal to modernize the 1872 Mining Law would provide
an additional $600 million in revenue for operating our national
parks. But, according to Sen. John Ensign, R-Nev., "Kerry's
proposal to levy taxes and fees on our mining industries will
turn thriving Nevada mining towns into ghost towns".
Nevada, home to some of the largest gold mines in the world,
would be the hardest hit by Kerry's proposed royalty on metal
mining. Jack Gerard, President of the National Mining Association
said that the mining industry supports the national parks system,
but creating minimum wage jobs on the backs of miners is bad
economics and is bad for the country.
"Senator Kerry obviously has not done his math. He would
destroy the highest paying jobs in Nevada, Arizona and New Mexico,
for example, to pay for entry-level service industry jobs and
devastate mining communities through the West in the bargain,"
Gerard said.
The NMA estimates that an 8 percent royalty could cost western
states between 18,000 and 44,000 jobs and result in a net loss
to the Treasury of $400 million to $500 million based on independent
analyses.
The mining industry has traditionally opposed a royalty on gross
proceeds from mining, but has been willing to support a 5 percent
royalty on net proceeds, with the revenue generated to be used
to reclaim abandoned mines. [08.12.2004]
Montana
Diamond Exploration
Representatives
of Delta Mining and Exploration Corp. plan to visit the Homestead
Kimberlite on August 20, 2004. The preliminary work program
for the Homestead Kimberlite is being coordinated. The Homestead
Kimberlite has already been shown to be diamondiferous with
encouraging concentrations of numerous diamond indicator minerals.
Delta Mining and Exploration, Corp., a mineral exploration company
with an extensive portfolio of diamond properties in Montana,
USA and in Bolivia, South America, controls some 7500 acres
throughout Montana. [08.17.2004]
No Ruling
On Cyanide Mining Ban Repeal
Last
Thursday, the Montana Supreme Court refused to consider a case
that challenged the ongoing effort to repeal the state ban on
cyanide heap leach mining citing docket overload.
The justices ruled that although they do have the right to decide
the case, the current caseload is too heavy to adequately rule
on the issue prior the upcoming election. The court determined
that there was no legal emergency to compel the court to act
at this time.
Initiative 147, the issue of interest, is proposed to repeal
Montana's ban on cyanide leach gold and silver mining that was
passed by voters in 1998. Restoration of some mineral leases
and the reinstatement of some environmental protocols are also
included. The initiative must be passed directly by voters not
legislators.
I-147 has already qualified to be placed on the ballot but the
Montana Environmental Information Center, a Montana anti-mining
organization, recently petitioned the Supreme Court to rule
that the initiative was unconstitutional.
At stake is a large cyanide leach gold mine owned by Canyon
Resources Corp. that was ready to be developed over six years
ago. The concern of opponents to the project is the basic process
of extracting the gold by dripping a cyanide solution over the
crushed ore and recovering the cyanide solution and its gold
content.
Miners, Merchants and Montanans for Jobs and Economic Opportunity,
the main support group for the Initiative, agreed with the Supreme
Court decision in that no legal emergency exists and the citizens
should be allowed to vote.
It is expected that whichever side loses the decision will appeal.
[08.27.2004]
Nevada's
Hollister Project Work Begins
According
to their latest news release, Hecla Mining Company has begun
development on the Hollister gold exploration project in northern
Nevada. The initial activity includes construction of the waste
rock containment facility and excavation on the exploration
decline ramp. The latter development will determine the feasibility
of the gold mining operation.
Approximately
50,000 feet of diamond drilling is planned from underground
locations and the decline ramp, over 5600 feet in length, will
provide the necessary diamond drill stations to minimize surface
disturbances. Collection of bulk samples from the mineralized
areas intersected by the decline ramp and associated cross-cuts
are anticipated. [08.30.2004]
Land
Swap Protested By Tribe And Environmentalists
The Phelps
Dodge - Bureau of Land Management land exchange, involving the
Dos Pobres/San Juan Project near Safford, Arizona, is being
protested by the San Carlos Apache Tribe and the Western Mining
Action Project (acting on behalf of the Center for Biological
Diversity, the Grand Canyon Chapter of the Sierra Club, the
Western Land Exchange Project, and Earthworks). The land exchange
of 16,300 acres of public land for 3900 acres of environmentally
sensitive land has been in on-going negotiations for over ten
years.
The Safford
land swap would also benefit the Tuzigoot National Monument,
which would acquire the Tavasci Marsh, home to deer, antelope,
rabbit, muskrat, prairie dogs, ducks and other birds. The Gila
Box Riparian National Conservation Area would receive additional
riparian parcels from Phelps Dodge. Graham County attracts migratory
birds from Central and South America.
Choosing
to protest the land exchange on the basis of water quality and
land values rather than raise the issue of the endangered Mexican
Spotted Owls, the protestors hope to create a more significant
and costly issue for Phelps Dodge and the BLM to refute.
If the
BLM allows the decision to stand, the protestors could appeal
to the Dept. of the Interior or they could sue and bring the
$400 million project to a halt and allow 350 mining and contract
jobs to go undeveloped. [09.07.2004]
Carlin
Gold Trend Continues To Be Explored
Atna
Resources Ltd. and Sahelian Goldfields have entered into an
option for Sahelian to earn up to 70% interest in Atna's Triple
Junction/Dixie Fork gold project, located at the south end of
the Carlin Gold Trend in Elko County, Nevada.
Sahelian
will test for sediment-hosted gold mineralization on the South
Carlin trend along the Webb/Devil's Gate geologic contact. This
contact hosts the bulk of the mineralization in the district
including the Emigrant Springs, Rain, Trout Creek and Dixie
Creek deposits. Within the Triple Junction/Dixie Fork project
area, there is intense jasperoidal silicification and argillic
alteration with anomalous arsenic and barite [09.09.2004].
Mining
Prohibited on Canyonlands National Park
Interior
Secretary Gale Norton signed an order prohibiting new hard-rock
mining along 200 miles of the Colorado, Green and Dolores rivers
outside Canyonlands National Park. Norton's order prevents any
new mining claims for the next 20 years on 111,895 acres running
from rim to rim in the river canyons.
The order
protects not only the picturesque river corridors which run
past Arches National Park, Dead Horse Point and Fisher Towers,
but also protects 161 prehistoric sites and habitat for six
threatened and endangered species along the river corridors
Plans
for the mining withdrawal were launched in December 1999, and
the Utah director of the federal Bureau of Land Management signed
the document in April 2003. [09.11.2004]
Minefinders
Update, Pershing County, Nevada
Minefinders
Corporation Ltd has reported the results from it's recently
completed drilling at the Clear property, located in Pershing
County, Nevada. A total of 14 drill holes, totaling some 8900
feet, were completed to identify and outline a mineralized northwest-trending
thrust fault. This drilling has confirmed the continuity of
gold mineralization along one kilometer of the structure with
a vertical extent of at least 150 meters and open at depth.
Additional drilling to follow-up on the current program is slated
for later this year utilizing coring rigs to eliminate sample-size
irregularities noted in the reverse-circulation drilling program.
Core drilling is also to be completed at the Dotti property,
north of the historic Tuscarora Mining District of Elko County,
Nevada, to test for at depth, high-grade, structurally-controlled
mineralization [09.13.2004]
HECLA
Mining and Timberline Resources sign LOI
Timberline
Resources Corporation, a Spokane-based minerals exploration
company, has signed a Letter of Intent (LOI) with Hecla Mining
Company to earn a 49-percent interest in Hecla's northern Idaho
Snowstorm Trend Project.
The property lies in the northeast corner of the Coeur d'Alene
Mining District where it overlaps the southwest corner of the
Montana Copper Sulfide Trend The project area contains the historic
Snowstorm Mine.
Timberline will conduct a Phase I exploration program on the
property culminating in a Phase I Summary report. Timberline
will then submit a Phase II exploration proposal at which time
Hecla can elect to maintain its 51% interest or opt out with
a 4% net smelter return royalty on all future production. [Sep
14, 2004]
Exploration
Expands in Coeur d'Alene District
Sterling
Mining Company announced the expansion of its Sunshine surface
exploration program onto the Metropolitan Mines property immediately
south of Sterling's Sunshine Mine property in Idaho's Coeur
d'Alene mining district.
The Metropolitan
property, on the south limb of the Big Creek Anticline in south
dipping rocks of the lower Wallace Formation, covers the Big
Creek Fault Zone separating rocks of the Wallace and St. Regis
Formations to the north and rocks of the Revett Formation to
the south. The property covers numerous mine workings and prospects.
The Metropolitan Mine, the most recognized mine on the property,
was developed on two narrow mineralized structures: the North
and South veins, characterized by zones of quartz-siderite stringer
with minor pyrite and tetrahedrite.
An additional
mineralized structure trending onto the Metropolitan property,
the Yankee Girl Vein system, is exposed at the surface and was
mined by Sunshine Mining Company. The legendary Sunshine Mine,
the richest silver mine in American history, produced over 360
million ounces of silver over the past century. [09.20.2004]
Idaho
Silver Exploration on the Rise
SilverCrest
Mines Inc. has entered into an option agreement with the Blackstone
Mining Company, Ltd. for the Blackstone property located in
southern Idaho. Silver-copper-zinc mineralization has been identified
during recent exploration work on the 700 acre property near
Mountain Home.
The Blackstone
deposit is located in a series of altered shear zones up to
100 meters wide and at least 500 meters in length in Tertiary
to Cretaceous intrusives with classic porphyry-style alteration.
The shear zones show silver, copper and zinc mineralization.
The deposit wa
