Loan for Iron
Nugget Plant Approved
National Mining
Association Names Chairman
Ontzinc Becomes
Hudson Bay International
Kennecott Meets with
Advisory Panel
Michigan's Sulfide Mining
Legislation Moves Forward
Michigan House Passes
Sulfide Mining Bill
Tribal Opposition to Mining
Sulfide Mining Bill Passed Mining Reform Shaping Up
Sulfide Mining Bill Is Now Law MDEQ Declines USGS Study
PolyMet Submits Information PolyMet Initiates Drilling
Program At NorthMet
PolyMet Updates
NorthMet Project
PolyMet Wants To Fill Wetlands
Mining Rules Gain Momentum Proposed NorthMet Mine Metallurgical Samples
Sent For Testing
Meetin' The Activists
Final Rules For
Sulfide Mining Released
Mesabi Nugget
Project Moves Ahead
Latin America Continues
Turning Left
MINING NOTES FROM BACK EAST
MINING NOTES FROM OUT WEST *UPDATED 10/15/06*
MINING NOTES FROM UP NORTH
Past FCOL news and notes articles can be found here


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