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Page 1:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 2:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 3:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 4:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 5:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 6:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

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© Copyright 2007,DEL Communications Inc.All rights reserved.The contents of this pub-lication may not be reproduced by anymeans, in whole or in part, without priorwritten consent of the publisher.

While every effort has been made to ensurethe accuracy of the information contained inand the reliability of the source, thepublisher in no way guarantees nor warrantsthe information and is not responsible forerrors, omissions or statements made byadvertisers. Opinions and recommendationsmade by contributors or advertisers are notnecessarily those of the publisher, its direc-tors, officers or employees.

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DELCommunications Inc. in this issue of

M O N T A N A M I N I N G

6 Montana Mining 2007

Governor’s Message ~ Brian Schweitzer 8

MDEQ Director’s Message ~ Richard Opper 10

MMA Signs New Statutory Provision with DEQ 11

MMA President’s Message ~ Mike Mullaney 12

MMA Past President’s Message ~ Tim Smith 13

MMA Executive Director’s Message ~ Debbie Shea 14

Member Profile ~ Mark Cole 15

Montana Bureau of Mines & Geology: Help for Miners 16

Rock Creek Mine a Boost for Both Economy & Ecosystem 18

The Reopening of Montana Tunnels 23

Holcim’s Trident Cement Plant:Building on the Past to Meet the Needs of the Future 26

A Capsule View of Montana Tech’s School of Mines & Engineering 30

The O.T. Mining CorporationTopping the “Richest Hill on Earth” 33

Golden Sunlight MineAn Environmental and Partnership Legacy 36

The Stillwater Good Neighbor Agreement:A New Business Model of Cooperation for Natural Resource Industries 40

History of Gough, Shanahan, Johnson & WatermanMirrors the History of Montana 44

Mines ManagementAdvances the Montanore Project to Next Phase 46

Montana Contractors AssociationBoard of Directors 2007 49

Geometrics Introduces Economical, Easy-To-Use 3D Seismic SystemFor Coal, Oil, Gas & Geologic Exploration 50

ArcadisPutting Innovation into Practice 52

Index to Advertisers 54

Page 7:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 8:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

8 Montana Mining 2007

From its beginning, Montana’s rich history is steeped in mining.

From the territorial gold rush days of Virginia City, to the copper

kings of Butte, all the way to today’s strip coal mines and the western

hemisphere’s only platinum and palladium mine, mining has played,

and continues to play, an important role in Montana’s economy.

Mining provides high paying jobs for Montana families and commu-

nities.

Montana’s vast natural resources continue to offer great economic

development opportunities. I have been hosting meetings, traveling

the state and country, all the time promoting energy development as

a boon to Montana’s economy, and an important part of a national

strategy for energy independence. I have found that most Montanans

want coal mining to expand in eastern Montana, an area that has

experienced decades of economic dislocation. They want that expan-

sion to lead to the development of advanced, low emission mine

mouth clean coal power plants to the state. These plants will provide

thousands of high quality permanent jobs in both western and east-

ern Montana.

Hardrock mining is still very important to the state and still has

great growth potential. Stillwater Mining employs 1,600 workers at its

platinum/palladium mine and has given Stillwater County the high-

est per capita income in the state. The proposed Montanore and

Revett Minerals mines that are currently in permitting would develop

a world class ore body in western Montana’s Lincoln County, and

GOVERNOR’S MESSAGE

MINING IN MONTANA

Oro y Plata –Gold & Silver!

“The Treasure State”

Page 9:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 9

could bring hundreds of high paying jobs to that area.As we look at natural resource development in Montana, we can-

not be driven by the political extremes. The clash between thosewho want to “build a fence around Montana,” and those who woulddo “rip and run” uncontrolled development must not stymie ourfuture development. The large majority of Montanans supportdevelopment as long as it is done right – in a manner that does notdestroy our high quality of life. New technologies, combined withnew market demands, provide an opportunity for mineral and coaldevelopment that has not been present for some time. We musttake advantage of this window of opportunity to create the growthMontanans want – and the jobs they deserve. Today’s Montana min-ing operations can operate, and are operating, in an environmental-ly responsible manner. As long as that is the case, the state will sup-port our historical resource economy.

Natural resource development is not the province of just one polit-ical party. That is revealed by the fact that over the last 50 years,Montana’s growth in coal development took place under threeDemocratic governors, as illustrated by the chart on this page. Withnearly a third of the nation’s coal reserves and eight percent of the

world’s reserves, Montana’s economy stands to gain tremendously

from this increased interest in the potential for coal. I will carry on

the long tradition of Democratic governors and continue to work to

expand coal development in Montana.

I ask you and all Montanans to join in the effort to develop mining

and energy jobs for ourselves, our children and our grandchildren.

We can still be the “Treasure State” and also the “Last Best Place,” as

long as we have the will to get the job done right.

Governor Brian Schweitzer■

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Page 10:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

10 Montana Mining 2007

In the relatively short time I have served as the Director of the

Montana Department of Environmental Quality, I have learned a

great deal about the modern mining industry and its impacts on the

state – both the positive and otherwise. In fact, I’ve been amazed at

the number of people who have volunteered to share their thoughts

with me on the subject. I learned in short order that it’s an industry

with passionate supporters and detractors, yet it is indisputable that

mining has and continues to contribute to Montana’s economy with

its good paying jobs and valuable products.

As an extractive industry, it must address its impacts to Montana’s

air, land, and water resources. Like other mineral-rich states,

Montana has some eye-catching reclamation success stories. But

sadly, our state also bears too many scars from a time when we knew

less about acid drainage, inadequately bonded mines, or placed too

much trust in operators who had no interest in building futures for

communities as they were building personal wealth. Part of my job

it to ensure that we acquire no more such scars. The good news for

the state is that I believe the Montana Mining Association is commit-

ted to this same goal.

During this past legislative session, I had the pleasure of working

with the Montana Mining Association on HB 460. This bill addressedsome of the shortfalls in the state’s ability to collect adequate bondsto protect future taxpayers from unanticipated mining-related envi-ronmental problems. The Montana Mining Association partneredwith the Montana Department of Environmental Quality to craft apiece of legislation that met the needs of the people we both serve.I was pleased that we worked so well together, and HB 460 has nowbeen signed into law.

The future looks bright for the modern mining industry inMontana. High prices, stronger laws and better science mean goodjobs and good stewardship of Montana’s resources. I look forward toa continued productive partnership with the members of theMontana Mining Association.

Richard Opper,Director, Montana Department of Environmental Quality

MESSAGE

RICHARD OPPER, Director

Montana Department ofEnvironmental Quality

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Page 11:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 11

HB 460, an act revising the Montana Metal Mine Reclamation Law, was a collaborative effort of the Montana MiningAssociation and the Department of Environmental Quality.

The act provides for temporary bonding in unanticipated circumstances with a reasonable process for determina-tion of that bond.

This statutory provision is the result of months of interim work, and is the most recent in a series of efforts in whichthe mining industry has responded, in order to improve agency regulation and oversight.

LEGISLATIONANNOUNCEMENT

MMA signs newstatutory provisionwith DEQ

HB 460, an act revising the Metal Mine Reclamation Law, was signedinto law by Governor Brian Schweitzer. Seated: Governor Brian

Schweitzer and bill sponsor Representative Jim Keane. Standing:Senator Greg Lind, MMA Officers and staff President Mike Mullaney,

Former President Tim Smith, Executive Assistant Debra Pitassy,Membership Director Charles Robison, Executive Director Debbie Sheaand Director of Department of Environmental Quality Richard Opper.

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Page 12:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

12 Montana Mining 2007

PRESIDENT’S MESSAGE

Iwas born and raised in Butte, Montana,and received a Mining Engineering degree

from Montana Tech in 1992. Along withmost of my graduating class, I had to leave

Montana in order to get a good job in ourfield. After working seven years for UnitedStates Gypsum Company in the states ofOklahoma and Iowa, I finally found an

opportunity to come back to Montana. I canstill remember the day I called my wife onthe phone, and told her we were comingback to this Big Sky Country. She was in tearswith joy, knowing that we would be comingback to this Treasure State we love so much.

I have served on the Montana MiningAssociation Board as Vice President for thepast eight months, and I am currently work-ing as the Production Manager at the Holcimcement plant in Three Forks. I am honoredto take the responsibility as President of theMontana Mining Association. The founda-tion has been put in place for a bright futureof the association. I can tell you from per-sonal experience that the board meetingshave experienced more participation in thepast year, with great ideas being generated asa result.

Having such great leadership involved inthe management of this organization is fun-damental to making ideas become reality:We have an awesome new director and assis-tant; the web site is new and improved; wefollowed up on our commitments with theBoard of Environmental Review; and havingbeen asked to work with the DEQ in the leg-islative session, we did, and as a result, HB460 is now law.

It is a privilege to be part of the miningindustry. As Tim said, we have to earn asocial license to operate. We have to focuson the people in our communities, educat-ing and listening to them. We have to con-tinue to improve communication within theassociation. We need to increase our size,and link up with other folks impacted bymining, as well as other associations withsimilar issues related to mining. The morewe build connections with each other, themore we make big things happen.

Please let the board know how we canimprove the association. And again, thankyou for the opportunity to serve as Presidentof the Montana Mining Association.

Yours,Mike Mullaney ■

MIKE MULLANEY, PresidentMontana Mining Association

Page 13:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

I’d like to welcome all readers to this first edition of the MontanaMining magazine. This publication comes at the perfect time as the

association is in the throes of transformation.Three years ago, the mining industry in Montana was pretty bleak

– especially after being dealt a blow with the defeat of I-147. Itappeared that the industry was rolling over to the environmentalactivists. Needless to say, this mood was reflected in the dispositionand number of members in the association.

Three years and two Executive Directors later, both the miningindustry and the association have a new lease on life (also thanks tohigher metal prices).

The Board of Directors decided that, if we wanted to get seriousabout promoting the industry, and extinguish the untruths banteredby groups unfriendly to the industry, we needed a full time ExecutiveDirector. We are all very pleased to have attracted Debbie Shea to theorganization. Debbie brings years of legislative experience, personalconnections and foresight to the table. Throughout the last legislativesession, she was “plugged in”, daily, to all issues, and between herand Debra Pitassy, her Executive Assistant, the board was keptinformed at all times.

Not only have we adopted a new professional image, but we aregetting the truth out about what the mining industry means to localand state economies, and why mining is necessary for virtually every-

thing that contributes to our quality of life. The association under-

stands that, in order to mine, the industry must go beyond obtaining

the necessary permits, it needs a social license. It must show that, not

only will it bring wealth and jobs to an area, it will provide for con-

tinued growth and economic prosperity long after the mine is

reclaimed.

For example, Golden Sunlight Mine, in preparation for its shut-

down, is actively working with a local non-profit development group

for the development of an industrial park on prime land donated by

the mine. The addition of new businesses will help ease the eco-

nomic transition once the mine closes.

The key to the success of any organization is the size, involvement,

and passion of its membership. To that end, Debbie and Debra have

identified those individuals and service organizations who will bene-

fit most from joining the association.

After 30 months as President of the Montana Mining Association,

its time to pass the torch. I will remain actively involved on the Board

as Past President, and look forward to the future of the Montana

Mining Association under Mike Mullaney’s leadership.

Sincerely,

Tim Smith ■

PAST PRESIDENT’S MESSAGE

A glimpse of thepast with a focuson the future

Montana Mining Association www.montanamining.org 13

Page 14:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

14 Montana Mining 2007

EXECUTIVE DIRECTOR’S MESSAGE

Born in the 1950s in Butte, Montana, I was raised in the center ofthe mining industry. My playground was a part of all of the activ-

ity that had lured so many from every corner of the earth looking fora better life.

The Gallows Frame of the Original Mine, not active since the 1940s,stood tall and proud as it cast its shadow over my neighborhood, aneighborhood whose story, like so many, typified the struggles andhopes of working families.

There was a strong work ethic that rose up in that mining campcalled Butte, laying the foundation for generations of miners to come.This work ethic would literally light up the entire nation and back theefforts of two world wars. It was a work ethic that ensued pride in ajob well done. Butte was, and still is, a great place to call home.

In 1993, I was most honored to become a state legislator from thatmining city, and during my time as a States Senator from Butte, I wasproud to sponsor legislation on behalf of mining.

Assuming the position of Executive Director of the Montana MiningAssociation in December of 2006 seemed a natural transition for this

mining city girl. I follow in the footsteps of hard working advocates like

Gary Langley, Angie Janacaro and Dustin Stewart.

This is an exciting time to be involved in the mining industry, as it

experiences a rebirth and a role of leadership. The Montana Mining

Association’s work during the 2007 Montana Legislature included part-

nering with the regulatory agency, with legislation that will insure

healthy and productive growth for both the industry and our great

state. We are proud of that effort, and look forward to our continued

work with the Department of Environmental Quality.

And so, as the global demand for metal continues, the mining

industry will continue to provide high wages and significant support

for local economies as well as for our great state. As new and innova-

tive technology replaces past practice, and high-tech reclamation proj-

ects take on life throughout Montana, the mining industry will con-

tinue in our work to be good stewards of the land.

Debbie Shea ■

DEBBIE SHEA,Executive Director

Montana MiningAssociationMMA Executive Director Debbie Shea in front of Original Mine Gallows Frame.

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Page 15:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 15

Mark Cole is a busy man. As one of theprincipals of Dick Irvin Inc. of Shelby,

Montana, he has his hands full with the diver-sified nature of trucking services the compa-ny provides. Still, he finds the time to devotehis energy to what he feels is an importantsector of the economy – the mining industry.

Cole is First Vice President of the MontanaMining Association, and has put in manyhours of work, trying to find solutions tomake the busy sector even better for every-one involved.

As well as the MMA, Cole has worked ontransportation steering committees andresearch projects in both the U.S. andCanada, bringing logistics and analysis of thetransportation industry to the economic fore-front, and he also holds the chair as presidentof the Montana Motor Carrier Association, aswell as serving on various boards and com-mittees of the construction and agricultureindustries.

Though he has been involved with DickIrvin for 34 years, Cole was by no means“there at the beginning”. Established in 1951as a single proprietorship by Dick and PatIrvin, the company began with just a singlefarm truck serving the local agriculture mar-ket. Dick Irvin became incorporated in 1967,and has since grown immensely, now operat-ing between 85 and 100 power transportunits throughout the United States and west-ern Canada. Although it still serves its origi-nal agricultural clientele, time has seen thecompany branch out to serve the oil and gasresource, mining and construction industries.

Dick Irvin made its entry into the Montanamining scene in the late 1970s, when the oiland gas market was on a decline. Today, itservices not only Montana, but also all of thewestern U.S. and Canada.

“I’ve seen a very substantial reduction in

the mining industry in this state during thelast decade, but I’m happy to say it looksmuch better today,” Cole said.

“The future looks considerably better; themarket is stronger than it has been in years.”

In his spare time, Cole and his wife Barbararaise quarter horses, and they try to visit asoften as possible with their two grown chil-dren and four grandchildren.

“We’re excited (to be grandparents),” hesaid. “Every opportunity we get, we try tospend time with them.”

Still, the pull of his work with the companycontinues, and Cole is dedicated to his pro-fession.

“Ours is a progressive company. You needto be on the cutting edge of development inthe region or area. It’s just beneficial to beaware of what’s happening, and in some wayto be able to assist in developing the eco-nomic situation, new businesses or industries

can come about, and that’s good for every-

one,” he said.

“I’m a firm believer not only in our com-

pany, but also in utilizing the resources we

have here in North America. I think that we

need to make use of the resources in a very

environmentally conscious way that will not

do harm to the environment, but provide the

basics that the industry and the economy

needs.”

So it would appear there’s no sign of slow-

ing down for Cole.

“We’ve talked about it (retiring),” he said,

“but I don’t know what I would do. You

always think about it, but if you enjoy what

you’re doing, you might as well keep on. At

this point, I’m definitely looking forward to

more years in the industry.” ■

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Page 16:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

16 Montana Mining 2007

Mining has always been a thorny undertaking: risky, even dan-

gerous. But these days it’s even more complicated. How does

a would-be miner figure out where to look for placers? Which prop-

erty he’s allowed to pan or dig? Who can a miner ask to figure out

how to fill out a claim form, or an environmental impact assessment?

Answer: Rob McCulloch.

McCulloch is the sole staff member of the Montana Bureau of

Mines and Geology’s small-mines assistance program. On any given

day, McCulloch works with prospectors, hobbyists, small-scale placer

operators, archaeologists, exploration companies, and government

regulators.

“I teach miners where to look, how to interpret deposits, how to

sample and extract resources, how to permit it, and how to operate

within our environmental standards. It’s the whole deal,” said

McCulloch.

He also assists miners with the sometimes confusing documenta-

tion required by different agencies: planning documents, contracts,

and conservation easements. He keeps records of current mining

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Page 17:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 17

operations and companies (see map of 2006 mining activity), and

maps of current and past placer deposits.

And he answers lots and lots of questions.

“Ten to fifteen calls per day, and an equal amount of emails is nor-

mal. It’s not unusual to have visitors backed up into the hallway,” said

McCulloch.

In an effort to help even more would-be miners, in 2003 he pub-

lished a detailed how-to guide, Applied Gold Placer Exploration and

Evaluation Techniques. He also recommends Gold Placers of Montana,

a comprehensive guide to placer history and locations recently

reprinted by the MBMG.

To reach McCulloch, call 406-496-4171. If you’ve got a question

about mining, or need some help getting through the process, he’ll

be happy to help you.

To find out more about the Montana Bureau of Mines and Geology,

or order any of our publications, see our website at

http://mbmg.mtech.edu. ■

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Page 18:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

18 Montana Mining 2007

Usually, one hears about civilization’s infringement into the nat-

ural ecosystem as a battle of man vs. nature, with nature on the

losing end of the deal. Revett Minerals’ proposed Rock Creek Mine,

however, promises to turn that concept on its ear, with productivity

and the health of the local ecology going hand-in-hand – or should

that be “hand-in-paw”?

When the Rock Creek Mine was originally proposed in 1998, many

feared the endangered grizzlies of the Cabinet-Yaak Ecosystem (CYE)

would be harmed, or even

wiped out by the copper and

silver mining activity, even

though the mining would

take place deep under-

ground. Originally, a biologi-

cal opinion was first issued in

2000, and was revisited in

2002. Revett then revised its

plans substantially, so much so that it became clear they were com-

mitted to benefiting all wildlife as well as “the griz” in the area. This

commitment eventually won the support of the U.S. Fish and Wildlife

Service. In fact, the Revett plan will result in more funding for the

Cabinet Yaak Ecosystem than has been spent on the Yellowstone

Ecosystem over the last 25 years (the grizzly bear population in

Yellowstone is now proposed for delisting).

Included in Revett’s plan is the provision that the company will not

disturb the 94,000 acres of wilderness adjacent to the mine’s mill site

nor the surface of the wilderness area a thousand feet above where

much of the mining activity will take place, thus affecting only 115

acres of land outside the wilderness area that is suitable for grizzly

bear habitat. To offset the 115 acre area, Revett will purchase an

additional 2,450 acres of bear habitat which will never be sold or

developed, and fund the closure of five miles of existing roads which

are currently in the protected habitat area.

The composition of the mine, located 1,000 feet below ground

level, will mean that wildlife and people on the surface won’t even be

aware that industry is happening beneath their feet.

Revett recently agreed to and is

funding three positions for the life

of the mine: two Montana Fish,

Wildlife & Parks grizzly bear spe-

cialists and one law enforcement

officer; the company will assist

Montana’s Department of Fish,

Wildlife & Parks, the U.S. Fish and

Wildlife Service and the United

States Forest Service in providing education, information and out-

reach programs. This will include monitoring and research efforts

centered on the CYE grizzly bear population.

Finally, Revett Minerals will purchase grizzly bear-resistant garbage

containers for employees who live in the area, for the mine, and for

Forest Service campgrounds, and convert the Sanders County garbage

transfer station and others in the area to be bear-resistant.

This suite of measures will cost Revett an estimated $18 million in

today’s dollars (approximately $30 million if escalated at 4% per

annum) during the project’s lifespan, which the company says equals

more than $1 million for each bear known to live in the area.

Rock Creek Mine a boost forboth economy and ecosystemBy Dawn M. Barker

Rock Creek Mine a boost forboth economy and ecosystemBy Dawn M. Barker

When the Rock Creek Mine was originally proposedin 1998, many feared the endangered grizzlies ofthe Cabinet-Yaak Ecosystem (CYE) would beharmed, or even wiped out by the copper andsilver mining activity, even though the miningwould take place deep underground.

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20 Montana Mining 2007

Estimates are that direct bear mortality

attributable to the mine during the mine’s

35 year lifespan will be a single bear, and to

offset this, Montana Fish, Wildlife and Parks

plans to import six female bears into the

area.

In a recent news release, Revett President

and CEO Bill Orchow stated that “No other

grizzly bear ecosystem, worldwide, has

received such an intensive, concerted and

coordinated effort to reduce conflicts

between grizzly bears and people, and to

reduce the potential for human-caused

mortality of grizzly bears.”

Revett’s commitment to the ecosystem

does not stop at bears, either. The original

biological report raised concerns that mine

construction could elevate sediment levels,

Page 21:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 21

adversely affecting the area’s bull

trout population. In answer, the com-

pany has committed to pave the road,

install sediment control structures,

and provide long-term monitoring to

detect changes in water chemistry and

temperature.

The mitigation plan contains many

additional environment-friendly mea-

sures as well, such as not using salt on

the roads during winter, removal of

any animals from the roadway area,

construction of power lines to reduce

potential harm to bald eagles, and

funding electric fencing kits to sur-

round bear problem sites.

The result will be a positive net

effect to the ecosystem, and it certain-

ly will be for the local human econo-

my. When up and operating at capac-

ity, the mine is estimated to produce

10,000 tons of silver and copper per

day, and to provide 300 “quality” jobs

and 30 years of economic benefits to

the region, including taxes, local pur-

chasing and the multiplier effect

which comes from improving the local

economy.

Revett’s existing Troy Mine, just over

the hill from Rock Creek, is solid proof

that Revett can and will operate in an

environmentally friendly and eco-

nomically beneficial manner. Con-

stant monitoring has shown benign

tailings and mine water that consis-

tently meets drinking water standards.

Troy provides 150 local jobs and pro-

duces 6,500 tons of copper and silver

daily. Revett’s tradition of protecting

the environment and providing eco-

nomic benefits to the community will

continue with operations at Rock

Creek Mine.

Revett Minerals President and CEO

Bill Orchow believes the company has

developed a win-win situation with

Rock Creek.

“This is good news for the economy,

good news for Northwest Montana, and

good news for wildlife,” he said. ■

Revett Minerals President and CEO Bill Orchow believes

the company developed a win-win situation with Rock

Creek. “This is good news for the economy, good news

for Northwest Montana, and good news for wildlife.”

Page 22:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
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Montana Mining Association www.montanamining.org 23

The headline of the January 31, 2006 HelenaIndependent Record read; “Wall

Collapse at Jefferson Co. Mine Leads toLikely Permanent Closure.” Roughlyfourteen months later, the localpress release read; “Jefferson CityMine has Bright Future.” While wecan often be cautioned againstbelieving all things negative we readin the press, the storyline of theMontana Tunnels Mine over the past yearhas been quite interesting.

Montana Tunnels Mining, Inc. is a joint venture sub-sidiary of Apollo Gold Corporation with offices in Denver, Colorado,and Calim Private Equity, LLC with offices in Aspen, Colorado. TheMontana Tunnels mine is located approximately 25 miles south ofHelena and ten miles north of Boulder, the county seat. The mine issituated in Jefferson County, Montana, within the historic “Corbin-Wickes” mining district. Montana Tunnels operations include extrac-tion of a poly-metallic bearing ore from a single open pit mine anda mill process facility that produces gold, silver, lead, and zinc con-centrates for sale into commerce. Although it is an open pit mine,Montana Tunnels takes its name from two exploratory adits thatwere driven into the ore body that is now being mined in theyear1900.

Following 25 months of environmental review, the mine beganoperations in February, 1986 under mining permit authorization bythe Montana Department of State Lands and the Bureau of LandManagement. Prior to the recent shutdown, the mine had been incontinuous operation for nearly 20 years.

Although the newspaper articles would lead the reader to believethat the highwalls at Montana Tunnels had collapsed, the reality wasthat there was no highwall collapse, but rather that the east wall ofthe open pit was experiencing slope deformation and localized haulramp instabilities. The result caused increased concern for employ-ee safety and ultimately led to the decision to stop mining in theopen pit until safe alternatives were developed. As is often the case,developing alternatives can be expensive.

Montana Tunnels commenced with a technical review involving

pit access options and safety issues affecting themine. After a number of alternatives were

developed by the Montana Tunnelsengineers, Knight Piesold

Consulting, Ltd. conducted a geot-echnical assessment of the pro-posed slope remediation alterna-tives for the the east highwall.The

overview assessment considered anumber of key objectives for improv-

ing the perfomance of the east highwallarea, including the reduction of slope defor-

mation and risk of haul ramp instability, achievingappropriate factors of safety for the overall slope, and mitigatingrockfall hazards in the east sector. The accepted plan of action calledfor the removal of five million tons of waste material along theupper east wall in order to lay back the instable area to a more sta-ble angle and allow for the reestablishment of essential catchbenches and the haul ramp system transecting the east wall.

The problem at hand was that Montana Tunnels was in the finalstages of completing a planned open pit strip and had just reachedthe primary high-grade ore body in the lower reaches of the pit.Completing the strip had significantly exhausted company funds andadditional financing would be required in order to reestablish theeast highwall.

Due to predominately higher metal prices, the mine was able totemporarily process low -grade stockpiled materials until May of2006. During this time, employment levels dropped from 208 to 95.After May 10, 2006, the mine was placed under care and mainte-nance status with a skeleton staff of only 13 employees.

During this time, Montana Tunnels was essentially down for thecount. The mine needed the necessary financing to repair the pitwalls, rebuild the haul ramps, and remove waste which was cover-ing a portion of the ore body. Dave Russell, the President and CEO ofApollo Gold, was tasked with this deed. Mr. Russell traveled through-out North America, Europe, and Southeast Asia meeting withbankers, investors, and other mining companies, looking for thefinancing necessary to get Montana Tunnels up and running.

Finally Dave Russell met with Patrick Imeson, Managing Director

Editorial by Pierre LeMieux, Environmental Scientist, Montana Tunnels Mining, Inc.

The reopening ofMontana TunnelsThe reopening ofMontana Tunnels

September 18, 2006 –Initial Layback of Upper East Highwall.

Page 24:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

24 Montana Mining 2007

of Calim Private Equity, an investment firm which focuses on leisureand entertainment, alternative energy, and mines. In July of 2007,Mr. Russell and Mr. Imeson signed a joint venture agreement inwhich Calim would provide the funding necessary to put MontanaTunnels back on its feet. It took about $15 million to complete therepairs and re-open. However, this is just a fraction of the cost of cre-ating a new, comparable mine, which would consume on the orderof $180 million.

Completing the remediation project involved piecing together avariety of puzzle pieces ranging from refurbishing mining andmilling equipment to hiring key personnel. In fact, approximately80% of the current workforce has previously been employed by themine.

Montana Tunnels expects revenues of $87 million this year; whichcan be credited to record high metals prices. These revenues buoy

the local and state economy. The mines payroll is $15 million andoffers and average salary of $45,000. In Montana, $22 million inspent annually on goods and services. In addition, the mine pays$800,000 in county taxes and $700,000 in state taxes. The currentplan of operations calls for extraction of ore and subsequent pro-cessing through 2009.

In 2004, Montana Tunnels submitted an amendment applicationto the Department of Environmental Quality and the Bureau of LandManagement that proposes to mine and process additional oreresources located deeper within the existing open pit mine. AnEnvironmental Impact Statement is currently in process for the pro-posed changes. Approval will allow continued development of theore resource and will extend mine operations into 2013. Alterationsrequired to carry out the proposed plan include; increasing the areaand depth of the open pit mine, extending waste rock storage areas,

October 3, 2006 –Establishing catch benches on highwall and initial ramp delelopment.

November 3, 2006 –Creating switchback in ramp system.

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Montana Mining Association www.montanamining.org 25

raising the elevation of the tailings embankment, moving a por-

tion of the mine access road, realigning the course of two stream

channels, and providing new storage areas for topsoil. Ore han-

dling and processing facilities will continue to operate as current-

ly approved. A final reclamation plan will be carried out at the

conclusion of mine operations to return disturbed lands to bene-

ficial post-mining use. The outlook for approval of the proposed

mine plan is positive, and once again the future is bright for

Montana Tunnels Mining, Inc.

The accompanying photodocumentary depicts the remediation

of the east wall and haul ramp system. For additional information

on the east wall remediation project at Montana Tunnels, please

visit Apollogold.com and Calimpe.com. ■

December 4, 2006 –Second switchback established.

January 2, 2007 –Fourth switchback established.

January 22, 2007 –Layback and ramp completed.

January - February, 2007 –Removing waste material from pit base.

February 22, 2007 –Drilling Ore in Pit Base.

Black Butte Iron Mine.

Page 26:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Holcim’s Trident Cement Plant in Three

Forks is preparing to celebrate its cen-

tenary in 2008, but the fact that the plant

has stood at the headwaters of the Missouri

River for nearly 100 years doesn’t begin to

tell the real story of its connection to the

area. A century before the construction of

the plant, Lewis and Clark’s epic journey

brought the explorers to the Headwaters

Corridor, an event mentioned in William

Clark’s journal, where he also commented

on the massive limestone formations in the

area. In the years since, those limestone

deposits have provided the raw material for

the millions of metric tons of cement the

plant has produced over its history. That

cement product, in turn, has gone into the

development of much of Montana’s infra-

structure, providing the basic material for

many of the region’s roads, bridges, build-

ings and other structures.

Trident Plant

Starting out as the Three Forks Portland

Cement Company, the plant has gone

through several name changes and owner-

ships throughout its history. The most

recent change in ownership occurred in

1990 when the plant, then owned by Ideal

Basic Industries, was purchased by

Holderbank Financiere Glaris Ltd., of

Switzerland to become part of the Holnam,

Inc., system in North America. In 2001, the

name was changed again to Holcim (US)

Inc.

However, the name changes are the least

significant of the transformations the plant

has undergone. Over the years, technologi-

cal developments have helped the plant

evolve continually, in order to meet the

needs of a growing region while providing

livelihoods to generations of employees (the

average Trident Cement Plant employee has

been on the job at the plant for more than

20 years). The current plant configuration,

with a single large kiln and modern dust

collection system, began operation in 1973.

As the plant has upgraded and improved its

equipment and operations, it has also con-

tributed significantly to the Gallatin County

economy, as well as maintained a commit-

ment to a safe work environment and a phi-

losophy of sustainable development.

Today, the Trident plant produces

approximately 320,000 metric tons of

cement per year (enough to create 1.5 mil-

lion cubic yards of concrete), supplying con-

struction projects in Montana, where the

state’s growing population will increase the

HOLCIM’S TRIDENT CEMENT PLANT:Building on the past tomeet the needs of the future

HOLCIM’S TRIDENT CEMENT PLANT:Building on the past tomeet the needs of the future

26 Montana Mining 2007

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Montana Mining Association www.montanamining.org 27

demand for cement by 27 percent in the

next 25 years. The plant is Gallatin

County’s fifth largest taxpayer, generating

$550,000 in property and mining taxes

annually for the county. Some of the more

well-known area projects for which Trident

products have been used include: the

Tongue River Reservoir; the Montana State

University Chemistry Building; the Bennett

Bay Bridge; the Big Sky Aerial Tram; vari-

ous Montana Department of Highways

pavements and concrete structures around

the state; and, various FAA airfield run-

ways and aprons.

Trident Mine.

Page 28:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

28 Montana Mining 2007

Servicing the Mining Industry Since 1990

Hydraulic Sales & RepairPumps • Motors • Valves

Cylinders • Filters

3650 Grant Creek RoadMissoula Montana 59808

Phone: (406) 542-1400 Fax: (406) 542-0958www.klshydraulics.com

Black Butte Iron Mine.

Trident products are highly regarded for

consistency and quality. The plant pro-

duces traditional ASTM C-150 cements, but

is actively developing new products, includ-

ing the Envirocore family of products which

require less energy to produce, yet meet the

high demands of the construction industry.

In addition to Montana, Trident cement

is marketed in Wyoming and Idaho, as well

as in Alberta and portions of Saskatchewan.

The plant’s products are marketed directly

from the plant, as well as through a system

of distribution terminals stretching from

Twin Falls, Idaho, to Edmonton, Alberta.

Customer market segments for Holcim

cement products include: ready mix compa-

nies; paving contractors; block and precast

producers; energy (oil) development; and

mining operations.

Holcim’s Trident plant has sustained this

level of productivity with a focus on safety

Page 29:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 29

and respect for the environment. The Trident plant is registered

as an ISO 14001 facility, with an environmental management sys-

tem to help ensure that it operates efficiently and in compliance

with all applicable federal, state, local and company regulations

and standards. As a testament to its commitment to worker safe-

ty, the plant has operated more than five years without a lost time

accident.

While the Holcim Trident plant has a long history of contribut-

ing to Montana’s growth, and the region’s development overall,

the company’s vision is to continue to provide foundations for

society’s future, while reducing its emissions and its ecological

footprint. It seeks to achieve this goal by ensuring a more efficient

and sustainable use of its products. One example of this com-

mitment to sustainable development is the company’s worldwide

goal of reducing CO2 emissions by 20 percent by 2010 compared

to 1990 level emissions. The Trident plant’s parent company,

Holcim Ltd., is active in several prestigious environmental organ-

izations, including: chair of the Energy and Climate Working

Group of the World Business Council on Sustainable

Development; chair of the Climate Change Taskforce, Cement

Sustainability Initiative; member of the Pew Center on Global

Climate Change; and charter member of the EPA’s Climate

Leaders Program. ■

Page 30:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

30 Montana Mining 2007

The Montana State School of Mines wasestablished in 1895, opened in 1900,

and its first graduating class was in 1903. In1900, Butte was the premier mining camp inthe US, and the Montana School of Mineswas focused on hardrock underground min-ing. The last century has brought namechanges, growth and expansion of MontanaTech’s mission. Whereas in 1900, only onedegree was offered, today Montana Techoffers degrees in 23 different areas at the BSlevel and 12 masters’ level degrees.

One thing that hasn’t changed is MontanaTech’s service to the mining industry. TheSchool of Mines and Engineering at MontanaTech continues to supply geological engi-neers, mining engineers, and metallurgicalengineers to industry. The School of Minesalso supplies the mining industry with grad-uates in occupational safety and health,industrial hygiene, and environmental engi-neers. The School of Mines and Engineeringat Montana Tech is the only school in the USoffering this full suite of programs gearedtowards the minerals industry.

The School of Mines and Engineering iscomposed of the following departments;

Environmental EngineeringGeneral EngineeringGeological EngineeringGeophysical Engineering

Metallurgical and Materials EngineeringMining EngineeringPetroleum EngineeringSafety Health and Industrial HygieneThe School of Mines and Engineering cur-

rently has 912 students and awarded 144 BSdegrees and 31 MS degrees in 2006. Theschool has 50 faculty and 7 support staff.

Mining EngineeringThe mining program trains mining engi-

neers in all facets of mining. The objective isto provide a quality education that blendstheory and practice in order to produce amining engineer who can enter and pursue asuccessful career in the field of MiningEngineering, and who is prepared to meetthe vigorous demands of natural resourcedevelopment throughout the world. Tech isthe place where ‘theory meets practice”.

Currently, there are over 800 living miningalumni working all over the world. Over 170of them (21%) live and work in Montana. Thestates of Washington, Nevada, and Wyominghave over 50 mining alums each, and 63% ofmining alumni live and work in the WesternUS.

Five faculty teach in the mining program:

• Dr. John Brower teaches the mineral eco-

nomics and mine valuation courses for

the program. Dr. Brower has taught at

Montana Tech since 1982 and is retiring

this year.

• Dr. Richard McNearny teaches the rock

mechanics courses, underground con-

struction and unit operations courses.

• Dr. Paul Conrad teaches surface mine

design, mine permitting, and the mining

methods classes.

• Dr. Phillip Dirige is brand new to the pro-

gram. He will be teaching surveying,

underground mine design, and rock frag-

mentation courses.

• Mr. David Armstrong is also new this year,

and will be teaching computer aided

mine design course, mine management

and engineering economics.

Metallurgical and Materials Engineering The Metallurgical & Materials Engineering

program dates back to 1922, when the firstmetallurgy degrees were offered. At thattime, the program was extremely strong inmineral processing and extractive metallur-gy. Over the decades, the program hasexpanded and evolved to encompass physi-cal metallurgy, materials and welding, but itis the only program in the US that has kept astrong mineral processing and extractivemetallurgy emphasis. Montana Tech hasmore faculty expertise in mineral processing

A Capsule view ofMontana Tech’sSchool of Minesand Engineering

A Capsule view ofMontana Tech’sSchool of Minesand Engineering

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Montana Mining Association www.montanamining.org 31

LEADERSHIP

Department Head – Geological EngineeringDr. Diane Wolfgram leads the Geological Engineering Program and is the interim Department Head for theMining Engineering program. Dr. Wolfgram has taught at Montana Tech since 1996. Dr. Wolfgramreceived her BS degree in geological engineering from the South Dakota School of Mines in 1962. Sheobtained her MA and PhD in Geology from the University of California, Berkeley. Dr. Wolfgram has 30years of industry experience.

DeanDr. Peter Knudsen has been Dean of the School of Mines and Engineering since 1994, and has taught atMontana Tech since 1981. Dr. Knudsen graduated from Montana Tech in 1968 with a degree in geologicalengineering. His MS and PhD in mining engineering are from the University of Arizona. Dr. Knudsen’sspecialization is in the area of computer aided mine design and geostatistics.

Department Head – Metallurgical EngineeringDr. Courtney Young is Department Head of the Metallurgical & Materials Engineering Department. Heobtained his BS in Mineral Processing Engineering Montana Tech in 1984, his MS in Mining and MineralsEngineering from Virginia Tech and his PhD in Metallurgical Engineering from the University of Utah. Hehas taught at Montana Tech since 1993. Dr. Young’s expertise is in surface chemistry, electrochemistry, flota-tion, physical separations, and sulfide electrochemistry.

Emergency Shelter Ensures MinersHave A 96 Hour Air SupplyEmergency Shelter Ensures MinersHave A 96 Hour Air Supply

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Long-term Air Supply• 96 hours or more• No electrical power required

Mobile• Skid-mounted storage container• Scoop bucket transported

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Shelter Construction (Membrane)• Air-beam technology• Airlock entrance• Three standard heights: 34, 40 & 48 inches

Container (Steel)• 28”, 32” & 40” heights• Heavy gauge steel construction• Skid mounted• Hermetically-sealed

LifeShelter™RAPIDLY DEPLOYED EMERGENCY SHELTERSeam Heights 30” & Higher

Shelter ContainerThe container-deployed system, with air-beamshelter module, air-processing equipment,monitors, emergency lighting, potable watercontainers, meals-ready-to-eat, repair kit,chemical toilet and medical supplies.

www.alleecorp.com

CERTIFIED BY THE STATE OF WEST VIRGINIA OFFICE OF MINER’S HEALTH SAFETY AND TRAINING

Page 32:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

32 Montana Mining 2007

andextractive met-

allurgy than any otheruniversity.

The metallurgy program has sixfaculty members and four research faculty.Dr. Courtney Young, a mineral processingengineer, leads the program; Dr. LarryTwidwell, Dr. Hsin Huang, and Dr. JerryDowney are extractive metallurgists; Mr.William Huestis is a mineral processor andDr. Kevin Jaansalu is a physical metallurgist.

The Center for Advanced Mineral Pro-cessing (CAMP) employs four research facultywith expertise in mineral processing and

extractive metallurgy. CAMP is directed byDr. Corby Anderson; Dr. Anderson is anextractive metallurgist; Mr. John Krustilich isa process engineer; Dr. Paul Miranda is anextractive metallurgist and Mr. FrancisDakubo is a mineral processor.

Geological Engineering

Also dating back to 1922, the Geological

Engineering program trains engineers in the

four fundamental areas of geological engi-

neering;mining geology, hydrogeology, geo-

mechanics and engineering geology.

The Geological Engineering program has

five faculty members:

• Dr. Diane Wolfgram is

Department Head and teaches

courses in economic geology, mining

geology, exploration an structural geology.

• Dr. Chris Gammons teaches courses in

geochemistry and hydrogeology.

• Dr. Willis Weight teaches classes in hydro-

geology and statistics.

• Dr. Mary MacLaughlin teaches classes in

engineering geology, geomechanics, and

slope design. Dr. Mark Sholes teaches

classes in physical geology, coal geology,

petrology and geomorphology.

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Montana Mining Association www.montanamining.org 33

Many have referred to Montana over the years as “the South

America of U.S. mining”. Having gone through some indus-

try valleys, the state is once again seeing a revival of interest in

mining due to numerous elements including government support

and increased environmental awareness on the industry’s behalf.

Yet, a major catalyst of this renewed attention has been one com-

pany’s significant mining discovery.

The O.T. Mining Corporation, based out of Montreal, Quebec, is

uniquely positioned to deliver a potentially significant source of

raw materials to the marketplace with their North Anomaly por-

phyry copper-molybdenum

system and high-grade pre-

cious metals targets on the

company’s Ruby property.

Some say that this area alone

may return Montana to its pre-

dominance of base and pre-

cious metal wealth in the U.S.

Uncovering Potential

The O.T. Mining Corporation

was incorporated in Montana

in 1980 as Ruby Resources of

Montana Inc., but changed their name in 1987 when they began

trading publicly. At that time the company’s property consisted of

five patented and 22 unpatented mining claims, which equalled

480 acres in the Lowland Mining District of Jefferson County,

Montana.

Today, O.T. Mining has 13 patented and 681 unpatented claims

covering 21.3 square miles at the Ruby Property. The Ruby prop-

erty is 14 miles from Butte, an area that once laid claim to being

the “Richest Hill on Earth” in terms of its production of copper,

zinc, manganese, molybdenum, gold and silver. The Ruby project

is the site of the discovery of an extremely large porphyry copper-

molybdenum mineralized zone that has the potential to exceed

the “Richest Hill on Earth.” Additional targets on the property

include high-grade gold-silver mineralization at the Ruby gold-sil-

ver mine, and epithermal style gold-silver at the Kit Carson target

area.

“Without question, the discovery of the porphyry copper-

molybdenum deposit known as the North Anomaly has been the

most significant for O.T.,” says Dr. Mark Fedikow Ph.D. P.Eng. P.Geo.

C.P.G., Vice President

Exploration for The O.T.

Mining Corporation. “This

deposit has east-west dimen-

sions of 15,000 feet and

north-south dimensions of

8,000 feet, with a vertical

extent of at least 3,200 feet. It

is open in all directions and at

depth.”

The parallels between the

North Anomaly and Butte are

of extreme importance in this

system. According to Dr. Fedikow, similarities in host rocks, struc-

tural style, alteration, mineralization and the recent discovery of

east-west-trending geophysical anomalies thought to be represen-

tative of Main Stage veins are all exciting developments that could

signify long-term production. Main Stage veins were responsible

for the bulk of base and precious metal production at Butte.

“Butte has been producing since the 1860s with only minor

interruptions in mining, and this underscores the significance of

O.T.’s potential at the North Anomaly,” he says. “In addition to the

Topping the“Richest Hill on Earth”The O.T. Mining Corporation’s Ruby propertyis bolstering mining in Montana

Topping the“Richest Hill on Earth”The O.T. Mining Corporation’s Ruby propertyis bolstering mining in Montana

By Carly Peters

The road to 05C-6 immediately after full reclamation; one year from now this site will be covered with grass.

“Butte has been producing since the 1860s with

only minor interuptions in mining, and this

underscores the significance of O.T.’s potential at

the North Anomaly. In addition to the porphyry

copper-molybdenum system, O.T. has intersected

high-grade base and precious metal mineralization

while exploring in the past-producing Ruby gold-

silver mine environment.”

Page 34:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

34 Montana Mining 2007

porphyry copper-molybdenum system,

O.T. has intersected high-grade base and

precious metal mineralization while

exploring in the past-producing Ruby

gold-silver mine environment. These drill

intersections were of a style of mineraliza-

tion not discovered in the past when the

Ruby Mine produced 2.44 ounces per ton

and 38.66 ounces per ton silver. The new

mineralization is comprised of lead-zinc

and silver, has not been drilled off, and is

a deposit type that O.T. plans to pursue.”

According to Dr. Fedikow, this is the

only property that O.T. has in its Montana

portfolio, and will continue to focus the

majority of its technical expertise on it.

Utilizing cutting edge technology is top

priority for O.T. Mining’s President James

Hess, whose area of specialization is natu-

ral resources and emerging technologies,

and who has spearheaded many of the

techniques used on this project. Evidence

of the presence of the unknown mineral-

ization was recognized using advanced

forms of geochemical and geophysical sur-

veys, such as Mobile Metal Ions (MMI)

technology. While the use of MMI on the

Ruby property is only one of the geotech-

nical tools available to O.T. Mining’s team,

it has been critical in the exploration of

the area where there is a lack of outcrop

or, as in the case of the North Anomaly

porphyry system, the target mineraliza-

tion is buried beneath thick layers of vol-

canic rock. The application of this technol-

ogy has permitted the group to “see

through” these rocks at mineralized

sources so that they can be drill-tested.

People Powered

Yet, cutting edge technology is only suc-

cessful when applied properly. O.T.

Mining’s exploration success is due in part

to its group of professionals, each of

which have more than 30 years of mining

experience and many technical and com-

mercial successes to their credits.

“The building of the ‘human resource’

side of O.T.’s forward momentum has

been significant with the addition of qual-

ity staff to our team,” states Dr. Fedikow.

This includes Dr. Fess Foster, a 30-year

Montana exploration veteran, who brings

a wealth of technical expertise to O.T. and

is responsible for environmental permit-

ting, public relations and government liai-

son. The second is Tom Weitz, O.T.’s proj-

ect manager. Tom has 30 years of global

experience in the exploration, discovery,

opening and closure of mines and has

multiple responsibilities including man-

agement of O.T.’s field programs, drill con-

tracts, core facilities, budgeting and liai-

son with State and local officials.

The technical team is anchored by 50-

plus year exploration veteran Oliver Maki,

whose expertise is global in all aspects of

the mining exploration and development

business. His ability to assess mineral

prospects in light of this experience is key

to O.T.’s success.

Not to mention Dr. Fedikow, who has 30

years of industry and government experi-

ence as an exploration geochemist and

mineral deposits geologist. In this capaci-

ty, he has published numerous articles on

mineral deposits and their geochemical

expressions in rock, soil and vegetation

sample media, and in 2001 was the recip-

ient of the Provincial Geologists Medal, a

Canadian national award for outstanding

geoscientific achievement.

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Photo 1: Steps of the Reclamation Process: First, the road or drill site is “recontoured”, during which all fill material is replaced so that the disturbance is at theoriginal natural slope. Topsoil is placed on the top of this. Then, “slash” (dead trees, roots ,etc.) is placed on top of the topsoil, in order to hold in soil moisture,prevent the straw mulch and grass seed from blowing away, preclude access by motorized vehicles, and provide nutrients to the soil when it decays. Next the

1 2 3

Page 35:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 35

area is seeded with a certified weed-free seed mix that includes natural grasses. Lastly, area is covered with certified weed-free straw as a last step in the recla-mation process. Photo 2: Fully reclaimed road to NA04-6, with less than 1 season’s growth (with Tom Weitz for scale). Photo 3: Fully reclaimed drill site KC04-3after 1 year of growth; it looks just like the surrounding native ground. Photo 4: The USFS inspecting reclamation in the Kit Carson Area. Photo 5: August 2006,Close up of bull moose along Lowland Creek near Buffalo Gulch (FESS). Photo 6: View looking east from North Anomaly Ridge toward Lowland Creek.

Gleaming Future

Further exploration of the North

Anomaly porphyry copper system

through an aggressive drill program

will continue in 2007, with addi-

tional geophysical and MMI surveys

to help delineate drill targets. O.T.

will also drill test high-grade coinci-

dent geophysical and geochemical

targets at their Kit Carson area.

“O.T. believes the Kit Carson area

has excellent potential to host a

high-grade epithermal system of

gold and silver mineralization simi-

lar to that found at the past-pro-

ducing Kit Carson Mine,” claims Dr.

Fedikow. “This mine is not on O.T.’s

property but is adjacent to it, and

was characterized by very high-

grade precious and base metal

grades.”

The Ruby property, if proven to

be economic to mine, will not only

provide a significant number of

jobs and economic benefits to asso-

ciated industries in local and state

economies, but will also again help

put Montana on the mining map -

something that ’s welcomed by

State officials and the industry

alike.

“Montana is open for business,”

he exclaims. “It is O.T.’s intent to

capitalize on this mining-friendly

business climate.” ■

4 5 6

Page 36:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

The Jefferson River valley in southwest

Montana is home to more than the

small rural communities and ranches seen

throughout the area. There is abundant

wildlife, world class outdoor recreation, agri-

culture, and breathtaking views. And there is

something else, which many may considerout of place … a gold mine.

The Golden Sunlight Mine (GSM) beganoperation with a strong commitment to envi-ronmental stewardship and the local com-munity, and this commitment has continuedto date. This commitment will ensure thelong-term physical, chemical and ecologicalstability of the mine site and an active part-nership with local stakeholders. The GSM isan open pit gold mine located near the townof Whitehall, in southwestern Montana, andis owned by Barrick Gold Corporation. GSMhas been in operation since 1982, and hasproduced over 2.4 million ounces of gold.Today, the current workforce consists ofapproximately 150 employees and a smallcontract underground mine operation ofaround 35 miners and additional contrac-tors. Over the past few years, mining activityat the GSM site has been winding down, withan anticipated closure scheduled for 2008.

The GSM and Barrick sustainability pro-

gram continues to evolve and consists of fourpillars, including ethics, employees, commu-nity, and environment, health and safety.The Barrick vision is, “To be the world’s bestgold company by finding, acquiring, devel-oping and producing quality reserves in asafe, profitable and socially responsiblemanner.” The GSM has implemented its sus-tainability strategy by focusing on these pri-mary issues.

Environmental stewardship and highquality land reclamation have been prioritiesfor GSM since it began operation. The minesite is adjacent to a major interstate and ishighly visible to the public. GSM has theopportunity to have a tremendous impact onforming the ideas and standards expected bythe public of the mining industry and whattheir expectations are for reclamation. Itssuperior reclamation efforts, combined withits ongoing innovative research, are indica-tive of its environmental leadership in themining community.

GOLDEN SUNLIGHT MINE

An environmentaland partnership

legacy

By Shannon Dunlap, GSM Environmental Superintendent

GOLDEN SUNLIGHT MINE

An environmentaland partnership

legacy

By Shannon Dunlap, GSM Environmental Superintendent

36 Montana Mining 2007

Brenntag Pacific, Inc.1353 Taylor Place, Billings, MT 59101

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Moore Oil, Inc.Wholesale Distributing

Moore Transportation, Inc.Bulk Fuel Transport

Bary MooreP.O. Box 1057

Thompson Falls, MT 59873(406) 827-4314

FAX: (406) 827-4791

Reclamation on the east side of the mine.Mule deer graze near the top of thereclaimed west waste rock dump.

Page 37:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 38:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Mine land reclamation is a key element of the GSM operation.Reclamation plans are fully engineered and implemented as soon asareas become available. These plans are routinely reviewed andupdated to incorporate the latest in technologies and GSM experience,and are backed up with reclamation and post-mine managementsurety in the amount of approximately $54 million.

During the 22 years of operation, mining has disturbed about 2,236acres. The GSM has reclaimed 1,066 acres or 47% of its total distur-bance, and 58% of its permitted reclamation obligation of remainingdisturbed areas. To date, the GSM has spent over $17 million on recla-mation, of which approximately $13 million was spent in the period2000 through 2001. The balance is made of active facilities such asthe open pit, waste rock complex, tailing impoundment, plant siteand attendant haul and access roads, all essential to the ongoing min-ing operation.

The Golden Sunlight Mine has been an integral part of the com-munity and local area for many years. Employees and family membersalso are a good testimony to the mining industry. Their networkingwith others outside the mining community contributes to educatingthe public on mining opportunities, practices, and challenges. Thetraits of the local miners coupled with the legacy they have estab-lished of partnership, cooperation, and teamwork set the stage wellfor future area economic development and prosperity.

The GSM has had a tremendous effect on the social environmentand culture of the local area since its inception. The employees of theGSM are an active part of the local area and have had a significant rolein shaping the local culture. Their involvement throughout the com-munity has a major impact on setting the community values andideals. The safety record at GSM has been outstanding and isingrained into the culture. It translates into the daily lives of the localresidents, as GSM employees become involved in various communityorganizations and activities. GSM’s support for education is an on-going activity.

The Community Transition Advisory Committee (CTAC) was formedin the spring of 2000 through the vision of GSM General Manager DougBailey. He felt that involving the community in closure planning wasnecessary to generate trust. The CTAC works on a comprehensive plan-ning process to focus on how to mitigate the negative economicimpact the local area will encounter with the pending closure of theGSM. While actively engaged in sustaining existing mining operations,the CTAC also focuses its efforts on the development of a working out-line that will result in a comprehensive, yet directed, approach toplanning for the post-mining sustainable uses of the mine site.

This process resulted in a formal study and report being conductedby an outside engineering firm, which analyzed the available assets atthe GSM, and the potential for future re-utilization. The results indi-cated strong support for development of a well-plannedIndustrial/Business Park and a wind energy facility at the site. TheBusiness Park Project planning and development process has beenongoing for several years. A major factor that influenced the pursuitof this project was the availability of a tract of GSM-owned land alonga main frontage road with excellent interstate access. The lease toassign this land to the Jefferson Local Development Corporation wassigned on January 31, 2007.

The mine site is a world-class wind resource, and when coupledwith existing infrastructure of high capacity transmission lines, a 70-megawatt substation, and an excellent road system, it makes the fea-sibility of developing a commercial wind energy farm attractive. GSMhas worked collaboratively with CTAC to further the wind park projecton various activities.

Industrial park planning withCommunity Transistion Advisory Committee (CTAC) group.

38 Montana Mining 2007

Above: Industrial Park lease signing in Whitehall.Barrick North American CEO, Greg Lang, looks on asJoe Calnan (JLDC President) signs lease.Montana Governor Brian Schweitzer lookson from the back of the room.

Page 39:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 39

Barrick wants the legacy of the Golden Sunlight Mine to be one ofenvironmental stewardship and community awareness. Throughoutthe life of the mine, projects aimed to improve wildlife habitat andrecreational opportunities in the Jefferson Valley have been ongoing.So such is a story of a successful relationship between a modern min-ing operation and a progressive community. The Golden SunlightMine sustainability program is an outstanding working model of cor-porate citizenship and sustainability planning. The GSM sustainabili-ty programs are an excellent example of how to develop relationshipsand instill a culture that will last long after mine closure.

For further information, please contact:

Sam Graham, Human Resources Superintendent

Barrick Golden Sunlight Mine

453 MT Hwy #2 East, Whitehall, Montana 59759

Telephone: 406-287-2015

Reclamation on Tailings Impoundment No.1.

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At left: turkey introduction programon GSM-owned property.

Below: mule deer on reclaimed slope.PHOTO BY JENA POLK

Page 40:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

While the concept of a Good Neighbor Agreement isn’t new, it is an

anomaly within the natural resource industry. A tradition of con-

flict and distrust between natural resource companies and local envi-

ronmental groups is an ingrained culture that has perpetuated an “us

vs. them” mindset and a stalemate in achieving common objectives.

Even rarer is the success of such an agreement, seven years after itsimplementation. The first of its kind, the Good Neighbor Agreementbetween Stillwater Mining Company (SMC) and the Northern PlainsResources Council (NPRC) and its affiliates is a testament to the posi-tive impact of cooperation. The legally binding Agreement accommo-dates the interests of both the mining company and citizen groups,through forums of discussion, debate and resolution.

Among the Agreement’s provisions, independent consultants caninspect SMC mines, collect samples and interview employees. NPRCand its affiliates, in turn, gave up its right to litigate against the mine.Two committees, with equal representation from both sides, reviewplan implementation requirements, waste reduction measures andnew technologies and responsible mining practices. If the committeesare in deadlock, the issue goes to binding arbitration.

The practical implementation and ensuing benefits of the GoodNeighbor Agreement have fully convinced Bruce Gilbert, SMC’sDirector of Environmental and Governmental Affairs, that theAgreement fosters positive goal-setting for all interested parties. “Atfirst, I was very skeptical about the Agreement, but now know that thisis the way to do business,” he says. “Trying to settle disputes in courtis a culture of conflict that doesn’t work for either side. The GoodNeighbor Agreement forces everyone to sit at the table and identifycommon ground, as a starting point in resolving an issue.”

Negotiating a fair and equitable Agreement was challenging forboth sides and took more than a year to finalize. Fifth generationranchers have been environmental watchdogs of the Stillwater andBoulder Rivers for almost three decades and, as members of theStillwater Protective Association and the Cottonwood ResourceCouncil, promote environmental responsibility. With the StillwaterMine operating near Nye, Montana and the East Boulder Mine indevelopment near Big Timber, Montana, the socio-economic, as wellas the potential environmental impact, became a cause for concernamong citizen groups.

THE STILLWATER GOOD NEIGHBOR AGREEMENT:

A new business modelof cooperation fornatural resource industries

THE STILLWATER GOOD NEIGHBOR AGREEMENT:

A new business modelof cooperation fornatural resource industriesBy Lisa Fattori

Stillwater Mine overview.

40 Montana Mining 2007

Page 41:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 41

“We were primarily interested in water rights and quality, which are

so important in a ranching community,” says Paul Hawks, past Chair

of NPRC and a representative of the Good Neighbor Agreement’s

Eastern Boulder Oversight Committee. “Also, this is a small communi-

ty, and the huge influx of people affected the local infrastructure and

created traffic congestion.”

With each side pumping money into a legal system that promised

no timely results or a favorable outcome, the Good Neighbor

Agreement was a risk worth pursuing. “One of the hurdles that both

sides had to overcome was the concept that this Agreement was legal-

ly binding,” Gilbert says. “Ironically, these legal obligations are what

make the relationship so successful. No one can throw up his hands

and threaten legal action on the way out the door. Instead, we’re

bound by the Agreement to work together towards a resolution.”

Hawks concurs that the Agreement, in practice, has ushered in a

culture of respect and trust. “Over time, you get to know one another

YOU.

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East Boulder Mine overview.

Page 42:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

42 Montana Mining 2007

as individuals, and this establishes trust,” he says. “You also get to seethe other side’s position and discover that you share common inter-ests. A strong working relationship means that you can be up-frontand get down to business on the issue at hand.”

SMC’s corporate culture of environmental responsibility, even priorto the Good Neighbor Agreement, is conducive to the Agreement’s suc-cess. As North America’s largest producer of palladium, used in cat-alytic converters, SMC is intrinsically committed to minimize its envi-ronmental footprint. A long tradition of community involvement, phi-lanthropy and best practices that exceed industry regulations honedSMC’s willingness to partner with citizen groups, and to innovate newprocesses that ensure environmental sustainability.

“As producers of pollution-control metals, it would be disingenuous

to degrade the environment in the process,” Gilbert says. “StillwaterMining Company has always been environmentally responsible, whichmakes the Good Neighbor Agreement the ideal alliance. TheAgreement is in the spirit of operating responsibly to protect the envi-ronment for future generations.”

Several of SMC’s green initiatives include a biological treatment sys-tem to reduce nitrogen in the mine water. Nitrogen levels in the treat-ed water are close to zero, as opposed to an allowable 10 ppm limit,required by drinking water standards. In addition, at SMC’s smelter,the company has removed sulphur dioxide by 99.8 per cent. The sul-phur dioxide is scrubbed to produce gypsum (calcium sulfate), a by-product that is sold as a soil amendment for sodium impacted soils.

“We’ve demonstrated that we’re willing to put our money where

Rams on Stillwater Mine propertyGood Neighbor Agreement sampling.

Page 43:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 43

Serving theMining Industry forover 50 Years in theUSA & Canada.

Graymont Western US, Inc.4 1/2 Miles West of TownsendP.O. Box 550Townsend, MT 59644Phone: (406) 266-5221Fax: (406) 266-3079www.graymont.com

our mouth is, and that our environmentalcommitment is not just a façade,” Gilbertsays. “We’ve spent millions to implement thebest possible programs, including a LandApplication Center Pivot system that removesany residual nitrogen after treatment byagronomic uptake. This system alsoimproves ranch land forage that supportswildlife and cattle grazing on a company-owned ranch, and furthers the treatment ofmine water so that nitrogen concentrationsin groundwater are non-detectable. “

In 2005, SMC and NPRC re-negotiated theGood Neighbor Agreement, to trim irrelevan-cies within the document, and to focus onissues that became more apparent after fiveyears of practice. SMC agreed to continuebusing employees to and from the mine,which improves road safety through reducedcongestion, and minimizes vehicular pollu-tion.

“There were over 1,000 miners and sup-port staff going to the mines every day,which created a lot of traffic on our rural,winding roads,” Hawk says. “After five yearsof busing employees, the mine could seethat it was money well spent. Absenteeism

went down and employees appreciated nothaving to drive at the end of their shifts.”

Today, out of 1,700 employees, companywide, approximately half are area residentsthat enjoy economic opportunity because ofemployment at Stillwater Mining Company.Equally important are the pristine naturalsurroundings and the continued health ofthe county’s waterways. The Good NeighborAgreement does not compromise either;rather, it creates one side - a common side

that marries economic prosperity with envi-

ronmental responsibility.

“With this Agreement, we’re not debating

philosophical truths and going nowhere,”

Gilbert says. “We’re looking at where the rub-

ber hits the road in our own community, and

are addressing local issues and concerns.

When everyone shares the same values and

goals, it’s not about compromise; it’s about

creating a win-win scenario.” ■

East Boulder Mine – Water Treatment Plant.

Page 44:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana’s present face to the worldrests on its “Big Sky” slogan denoting

its overhead grandeur and abundance ofnatural assets, but it was the resourcesburied underfoot that precipitated the terri-tory’s tumultuous rush to statehood in 1889.

The importance of mining resources wasunderscored by Montana’s flag and statemotto, “oro y plata”, Spanish for ‘gold and sil-ver’; hence the state’s being referred to, inthose formative years, as the “TreasureState.” Precious metals were the glittering

prizes that attracted a flood of fortune seek-ers looking to stake their claims in this partof the north western United States, and thatsudden influx of people was to irrevocablyalter the course of Montana’s history.

The pursuit of gold, silver, and later, cop-per, gave rise to the need for a means to set-tle the inevitable clashes of disputed owner-ship among the claim seekers, in a part ofthe northwest that was still deemed territori-al within the existing United States.

The present day law firm of Gough,

Shanahan, Johnson and Waterman, thenknown as Toole and Toole, was an activeentity in those heady days prior to Montana’sstatehood, and has continued its deep con-nectedness within the state’s historical fabricever since.

Toole and Toole, founded by brothersEdwin and Joseph, first hung out its shinglein 1879 in Helena, Montana, at a time whenthe mining business generated an assort-ment of legal disputes in terms in resolvingdisagreements, claims, and contractsbetween suppliers, miners and other stake-holders.

Present day attorney with Gough,Shanahan, Johnson and Waterman, AlanJoscelyn says, “We presume that the businessthat brought lawyers to Helena was a directresult of the discovery of gold.”

Gold was the initial lure back then, but avariety of other ores in abundant quantitiessealed the territory’s future as a provider ofmetals including silver, copper, and plat-inum.

Says Mr. Joscelyn, “All kinds of resourceissues faced by cattlemen, ranchers, andbusiness people emerged, followed quicklyby the railroads. The railroads turned intoone of the biggest clients of the firm overtime. Basically, the law firm has evolved toaddress whatever the legal needs are of thecommunity.”

The early days of Toole and Toole revolvedaround issues having to do with the pioneergold camp that existed at that time, but itevolved rapidly to encompass everythingthat was going on in the territory andMontana’s eventual emergence to early daystatehood.

Back then, the firm reflected the partner-ship between brothers, Edwin Warren Tooleand Joseph Kemp Toole. The dynamism ofthe territorial days drew Joseph into politics,where among numerous other appoint-ments, he served two terms as delegate tothe 49th and 50th Congress of the UnitedStates. In so doing, he championed the causefor Montana statehood that was realized

33 S.Last Chance GulchP.O. Box 1715Helena, Montana 59624-1715Tel. 406 442-8560Fax 406 442-8783email: [email protected]: www.gsjw.com

SSeerrvviinngg MMoonnttaannaa’’ss NNaattuurraall RReessoouurrccee IInndduussttrriieessSSiinnccee 11887799

History of Gough, Shanahan,Johnson & Waterman mirrors the history of MontanaBy Margaret Anne Fehr

HISTORICAL

44 Montana Mining 2007

Page 45:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 45

through the Enabling Act of 1889, which gavebirth to the official State of Montana. JosephToole’s place in Montana history was sealedwhen he was elected the new state’s first gov-ernor in the same year.

As Montana grew, so, too, did the fortunesof Toole and Toole, and by 1884 the firmbecame Toole, Toole & Wallace. WilliamWallace Jr., considered to be another firmfounder, contributed to the firm’s continuinggrowth and also went on to become FirstAssistant Attorney General of the UnitedStates in 1913.

The rise of the ‘copper kings’ era inMontana represented another chapter in thefirm’s history from the latter part of the 1800sto the early decades of the 20th century.

“This era,” says Mr. Joscelyn, “certainlydominated the business landscape in thestate for a long time and the law firm wasdirectly involved with legal disputes that weregenerated by competition among the copperkings in Butte.”

As the 20th century progressed, manage-ment issues pertaining to Montana’s rich andvaried resource base became the subject ofthe resource conflicts of the 1990s, and wereto act as a bellwether for the developing con-cern and attention that the nation shares forthe wise stewardship of the environment, ingeneral.

Over the course of its professional history,the original Toole and Toole founded in 1879has undergone sixteen name changes toreflect the individuals who have practiced lawin its corridors over the years. In 1978, thepresent name of Gough, Shanahan, Johnsonand Waterman was initiated. Today, the firmis made up of 22 attorneys who specialize indiversified areas of the law including naturalresources affecting energy law, timber andmining law that deal with base, precious met-als, and industrial minerals.

In a state that is so endowed with a rich-ness of resources, the firm has reflected thatdiversity with a practice that also includesadministrative, environmental, insuranceand employment and general practice capa-bilities. Specialty areas like banking, intellec-tual property, international business andschool law are other areas of legal expertisethat the firm offers, which are in step with theincreasing complexity of evolving contempo-rary issues.

Montana’s richness of resources, bothabove and below ground, continue to upholdits original name as the ‘Treasure State’ andone that Gough, Shanahan, Johnson &Waterman will continue to represent and pro-tect. ■

Page 46:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

46 Montana Mining 2007

D R I L L I N G P R O D U C T S S P E C I A L I S T S845 S. Montana Street, Butte, Montana 59701

Fax: 406.782.9605

Te l : 4 0 6 . 7 8 2 . 9 6 0 4

The Montanore Project is an advancedexploration stage project located in

northwestern Montana in Lincoln County,near the town of Libby. The Company hascommenced the process of re-permitting theProject, and plans to commence an advancedexploration and delineation drilling programin 2007, which would assist us in determiningits feasibility for development.

In May, the Company acquired early per-mits from the previous operator that allowsthe company to conduct an undergrounddrill program designed to provide data tosupport the project’s final detailed engineer-ing and design, and a bankable feasibilitystudy.

To fund this project, the Company com-pleted a $30 million equity financing in April,2007. With the financing complete, heavyequipment to support the project is expectedfor delivery on site starting in June.

Advanced Exploration andDelineation Drilling Program

In 2006, Mines Management, Inc. acquiredthe property providing access to the 14,000foot Libby adit from the previous operator.With additional development, the Libby aditwill provide access to the Montanore deposit.Additionally, two permits acquired related tothe Libby adit that, with the approval ofminor revisions, allow us to reopen, dewaterand rehabilitate the adit, and to conduct anadvanced exploration and delineationdrilling program.

In 2007, the Company plans to commencethe underground drill program, which is ex-pected to take up to 24 months. The adit will

undergo dewatering and rehabilitation, andthe adit will be advanced approximately 3,000feet towards the middle zone of the deposit.An additional 10,000 feet of developmentdrifting will be necessary to provide drillaccess. Once the drifting is underway, weexpect to undertake delineation diamond coredrilling of approximately 50 holes totalingapproximately 45,000 feet. The objectives ofour underground evaluation program are to:• Expand the known higher grade intercepts

of the Montanore deposit; • Develop additional information about the

deposit; • Further assess and define the mineralized

zone; and • Provide additional geotechnical, hydrologi-

cal and other data.

Stage 1 – Dewatering andAdit Rehabilitation

With the exception of the first 600 feet, thelength of the Libby adit contains water.During the first stage of the advanced explo-ration and delineation drilling program, weplan to dewater the adit, and treat the dis-charged water using ultra-filtration and possi-bly chemical pre-treatment so that dis-charged water, both during the dewatering

MINES MANAGEMENT

Mines Management advancesthe Montanore Projectto next phase

Page 47:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 47

process as well as during development of the adit anddrilling program, meets Montana’s water quality stan-dards. We completed the pilot scale tests of the watertreatment method in February 2007. We estimate thatwe will spend approximately $7.3 million of the netproceeds of this offering on Stage 1 activities.

As dewatering takes place, we plan to rehabilitatethe adit, which we anticipate to involve, among otheractivities, scaling the walls, installing new roof boltsand extending electricity, ventilation and dewateringinfrastructure into the adit.

Stage 2 – Advancement of Adit,Drifting and Establishment of Drill Stations

Once rehabilitation is complete, expected by thethird quarter of 2007, we plan to advance the aditapproximately 3,000 feet towards the middle of thedeposit. Following the advancement of the adit, weexpect to commence 10,000 feet of development drift-ing, which will be necessary to provide drill access.Once drifting is underway, we will also begin to estab-lish drill stations. The process of drifting and theestablishment of drill stations will continue through-out the remainder of the program. We anticipatespending $7.5 million of the net proceeds of this offer-ing on Stage 2 activities.

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Six Warehouse Locations:

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Battle Mountain, Nevada . . . . . . . . .(702) 635-8888

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Call With Your U.G. Mining Requirements.

Page 48:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

48 Montana Mining 2007

Stage 3 – Phase I Delineation DrillingIn Stage 3 of the advanced exploration

and delineation drilling program, we expectto commence approximately 20,000 feet ofdelineation diamond core drilling. We esti-mate that we will spend approximately $0.5million of the proceeds of this financing onStage 3 activities and expect to completeStage 3 in late 2008.

During the first three stages of the pro-gram, we anticipate spending approximately$12.7 million of the net proceeds of thisoffering on site operational costs, capitalequipment, project contingencies, optimiza-tion studies and corporate support.

Stage 4 – Phase II Drilling andBankable Feasibility Study

We expect to require additional financingof approximately $10.0 million to completeStage 4 of the advanced exploration and de-lineation drilling program and for additionalsite capital and operating costs. During thisstage we anticipate completing an additional25,000 feet of diamond core drilling, under-taking additional metallurgical and geotech-nical testing and analysis and, if the results ofour exploration are successful, preparing forand completing a bankable feasibility study.

Montanore Project Advancement

As the project advances, local jobs will be

created to complete certain tasks. During the

drilling phase, the company anticipates hir-

ing up to 20-30 workers, which, if the project

is successfully developed, could create an

additional approximately 300 more posi-

tions. The company has appreciated the sup-

port of the local community, and looks for-

ward to the possibility of a long term collab-

oration as the project advances toward

development.

SOURCE: Information for this article was

taken from Mines Management’s public

filings with the Securities and Exchange

Commission, including a prospectus filed as

part of a public offering of securities. ■

MINES MANAGEMENT

Page 49:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Montana Mining Association www.montanamining.org 49

Mike Mullaney, President ..............................O (406) 285-4970Holcim (US) Inc.4070 Trident Road, Three Forks, Montana [email protected]

Doug Miller, Vice President .................O (406) 295-5882 x 222Troy Mine – Revett GenesisP.O. Box 1660, Troy, MT [email protected]

Mark Redfern, 1st Vice President.................C (406) 671-4105Brenntag Pacific123 West Boulevard, Lewistown, Montana [email protected]

John Junnila, 2nd Vice President..................O (406) 373-6010Westate Machinery CompanyP.O. Box 50370, Billings, MT [email protected]

Tim Smith, Past President ............................O (406) 495-2803Montana Tunnels Mining Inc.P.O. Box 176, Jefferson City, MT [email protected]

Matt Wolfe, Secretary / Treasurer .................O (406) 322-8700Stillwater Mining Company536 East Pike AvenueP.O. Box 1330, Columbus, MT [email protected]

Elton Chorney, Director .................................O (406) 266-5221Graymont Western U.S. Inc.P.O. Box 550, Townsend, MT [email protected]

Mark Cole, Director........................................O (406) 434-5583Dick Irvin Inc.P.O. Box 950, Shelby, MT [email protected]

Tim Dimock, Director ....................................O (406) 287-2046Barrick - Golden Sunlight Mine453 MT Highway 2 East, Whitehall, MT [email protected]

John Fitzpatrick, Director..............................O (406) 442-5032

Fess Foster, Director.......................................O (406) 287-3261Geological & Environmental Consultant21 Paul Gulch Road, Whitehall, MT [email protected]

Bruce Gilbert, Director ..................................O (406) 322-8700Stillwater Mining Company536 East Pike AvenueP.O. Box 1330, Columbus, MT [email protected]

Jim Liebetrau, Director ..................................C (425) 210-3653AFFCO.......................................................O (406) 563-8494 x 111015 East Sixth Street, Anaconda, MT [email protected]

Robin McCulloch, Director ............................O (406) 496-4171Montana TechW. 1300 Park Street, Butte, MT [email protected]

Gene Nelson, Director....................................O (406) 549-8856Yellow Band Gold Inc.3926 Bellecrest Drive, Missoula, MT. [email protected]

Roger W. Rohr, Director ................................C (406) 698-1563Tractor and Equipment Co.Major Accounts [email protected]

Scott Sturm, Director .....................................O (406) 683-3326Barretts Minerals8625 Highway 91 South, Dillon, MT [email protected]

Jim Volberding, Director ...............................O (406) 538-2501Canyon Resources CorporationP.O. Box 79, Hilger, MT [email protected]

Debbie Shea, Executive Director ...................O (406) 495-1444Montana Mining Association1820 North Last Chance GulchP.O. Box 5567, Helena, MT [email protected]

Debra Pitassy, Executive Assistant ................O (406) 495-1444Montana Mining Association1820 North Last Chance GulchP.O. Box 5567, Helena, MT [email protected]

BOARD OF DIRECTORS

Montana Mining AssociationBoard of Directors 2007

www.montanamining.org

Page 50:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

DISTRIBUTED SYSTEM IS FIRST TO INCLUDE CONTINUOUSMONITORING FOR ALL 2D, 3D, 3C, OR 4C SURFACE SURVEYSSAN JOSE, CA -FEBRUARY 23, 2007 — Geometrics Inc. todayannounced the Geode DZ, a 24 bit, portable 3D distributed seis-mic acquisition system that brings ease-of-use, economy, andGPS synchronized continuous monitoring to high resolution min-ing, petroleum, and research surveys.

Featuring unmatched 20 kHz, 24-bit bandwidth (allows sur-veys in hard rock), and a modern, intuitive & easy-to-use soft-ware interface, the Geode DZ system uses, rugged, lightweightA/D & Line Tap modules that are connected by Ethernet to astandard Windows® computer. The overall result isfaster, lower cost high resolution 3D surveys.

The DZ’s intuitive graphical software eases thetransition to 3D surveys. User friendly linked mod-ules include; wizard-based OMNI Tools for quicklyplanning, modeling and simulating all aspects ofa survey, and the Geometrics Seismic AcquisitionSuite of tools for efficient data collection, exten-sive QC testing (including state-of-the-art line andgeophone testing), and graphically monitoring &controlling the features and operation of the DZhardware. The Geode DZ is backed by a 3 year parts andlabor warranty. The architecture is backwardscompatible with existing Geode hardware whichcan be simply incorporated into a new 3-D sys-tem. A wide variety of sources can be used,including; environment-friendly weight-drops,vibrators and pseudo-random (Mini-Sosie) sourcesas well as explosives.

Geometrics is an established world leader (since1968) in the design and manufacture of high performance,rugged, and reliable geophysical instruments including land andmarine seismographs, geoelectrical instruments, and magne-tometer systems for land, marine and airborne use.

Contact Geometrics at (408) 954-0522 or [email protected].

Geode DZ 3D A/D modules (yellow) and line tap unit (orange).

The compact, rugged Geode DZ 3D system is easy to transport and deploy.

3D SEISMIC SYSTEM

Geometrics introduces economical,easy-to-use 3D Seismic System forcoal, oil, gas & geologic exploration

50 Montana Mining 2007

GEOMETRICS

Page 51:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

Lower Cost Land Mineral Surveys

With the rugged Geometrics G-859 MineralMag™

Make a high-resolution walking survey and easily generate a magnetic anomaly map of your minerals.

The G-859 MineralMag™ was designed to operate in the harshest conditions you will encounter, from scorching sandstorms to arctic blizzards. The rugged and field proven console and cesium sensor never need factory recalibration or adjustment. More uptime and ease of use yields lower cost surveys. Geometrics, a world leader in Geophysical instruments for 35 years, is so confident in the G-859’s reliability, it is backed with a full 2 year parts & labor warranty and unlimited technical support.

The G-859 is the affordable integrated man-portable cesium magnetometer system with integrated GPS and non-magnetic backpack. Even the batteries are magnetically compensated. This minimizes noise caused by platform motion and results in more detailed data sets which save money in drilling costs.

The G-859 is compact, easy to set up and use, and is ideal for rapid high-resolution mining, petroleum, and geologic exploration surveys, also for academic research, education and local environmental studies including the mapping of waste sites and underground utilities.

It features high speed, low noise and high sensitivity (the best in the industry at 0.008nT/Sq-rt-Hz RMS). It incorporates a WAAS/EGNOS enabled Novatel™ GPS for accurate survey position, operates world wide. The system includes free processing software providing data profiling or contouring for in-field or laboratory analysis.

With its 8-12 hour data storage capacity and daylight readable graphical interface, the G-859 data acquisition offers either continuous (automatic) or discrete station recording. The high sampling rate in continuous mode allows an operator to survey a large area at a fast pace. Both magnetometer and GPS data are simultaneously logged at up to 5 samples per second for economical surveys at high sample density.

www.geometrics.com

The assembled G-859 and GPS in its durable padded shipping case with transport wheels. No assembly is required, just power

up and use.

Console with graphical daylight readable display, large buttons for gloved hand operation, and weatherproof cesium sensor

1-408-954-0522

Page 52:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

ARCADIS is the U.S.-based operations arm of

ARCADIS NV (Arnhem, The Netherlands), a

12,500-person multi-national company. We

offer our clients access to the resources and

problem-solving capabilities of a truly global

organization. In the United States and

Canada, ARCADIS employs over 3,500 people

and operates over 147 offices strategically

located throughout the country to best serve

our clients.

Mining and metals is one of the core indus-

try sectors served by ARCADIS. By specializing

in mining and metals, we offer clients a

focused understanding of the economic and

regulatory factors that drive the industry, and

unique environmental and business solutions

for reclamation. Beginning with exploration

and permitting activities, through mine devel-

opment and operation, and ending with closure, ARCADIS offers

unique services tailored to the mining industry.

Mine Life Cycle concerns are more important than ever with

today’s emphasis on sustainability issues. ARCADIS’ approach to

environmental issues at mine sites is designed to facilitate future

use, and to maximize land sale and redevelopment opportunities.

Our mining staff, partnered with our renowned land development

department, provides our clients with unparalleled reuse options.

Economic cycles of volatile costs and commodity prices are char-

acteristic of the mining and metals industry. Our breadth of expert-

ise assures that our client’s needs will be met regardless of the eco-

nomic environment. We are equally prepared to address permitting

and expansion issues during growth markets, as well as closure and

optimization issues during the down times. Our services include:

The Opti-leach Program: a business solution coupled with cutting

edge technology to enhance metal extraction from heap leach facil-

ities.

Risk Assessment: an accurate and thorough assessment of both

human health and ecological risk, allowing determination of site

appropriate regulatory levels and providing for practical yet effective

remedial options.

Accelerated Environmental Permitting: leading the industry in an

efficient and practical approach to NEPA and mine develop-

ment/permitting.

Putting innovationinto practice

ARCADIS

52 Montana Mining 2007

Page 53:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

NRDA Assessments: experienced in both

small, quick-settling cases and some of the

largest, most important NRDA cases in the

United States.

Innovative Remediation Technologies:

technologies designed to treat the cause of

environmental issues, not just the symp-

toms.

Selected ARCADIS’ advantages include:

• MINE PIT LAKE TREATMENT_ARCADIS has

successfully applied in-situ technology to

treat a 27 million gallon pit lake with ele-

vated metals in a matter of months.

• ACID ROCK DRAINAGE PREVENTION –

ARCADIS has successfully applied acid

mine/acid rock prevention technology to

effectively prevent future acid rock

drainage to surface and groundwater

sources.

• IN-SITU REACTIVE WALL AND REACTIVE

ZONES – ARCADIS has successfully applied

the specialized expertise of our interna-

tionally recognized experts who pio-

neered the use of reactive wall and reac-

tive zone technologies to remediate

groundwater at over 130 sites.

• IN-SITU BIOREMEDIATION AND INTRINSIC

BIOATTENUATION – ARCADIS is a leader in

enhancing the naturally occurring in-situ

biogeochemical processes, having treated

impacted water in over 110 intrinsic

bioattenuation projects.

ARCADIS’ approach has application in pit

lakes, smelter ponds, and flooded mines

and underground workings where the water

quality would otherwise require pumping

and treating the water ex-situ. In-situ treat-

ment also can be used to avoid backfilling

pits with waste and overburden materials,

reducing the cost of closure by reducing the

volume of earth materials moved at clo-

sure. A variation of this approach has also

been used to reduce groundwater impacts

and management costs from backfilled pits.

Our approach to acid rock drainage (ARD)

avoids the typical approach of effluent-col-

lection and treatment that drives the per-

ception of perpetually-required operations

and maintenance (O&M). This approach

actually prevents the ARD process from

occurring. By creating reducing conditions

within the waste rock or underground

mine, the driving forces creating ARD are

removed and the mobility of hazardous

metals is reduced. Utilizing this ARD pre-

vention technology avoids the perpetual

treatment costs typically associated with

large waste dumps and underground mine

workings in sulfide ore bodies. This

approach can be applied at historic proper-

ties, during closure, and especially early in

the life cycle of planned and operating sites,

using our “design for closure” approach.

With ARCADIS on your team, mine opera-

tors can focus on the business of mining.

ARCADIS... Imagine the Result. ■

Montana Mining Association www.montanamining.org 53

Page 54:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992

54 Montana Mining 2007

A.L. Lee Corporation 31, 39

American Mine Research, Inc. 12

Arcadis US Inc. 53

Atlas Copco CMT USA LLC 22

Billings Clinic 10

Bison Engineering, Inc. 24

Blue Cross Blue Shield of Montana 38

Brenntag Pacific, Inc. 36

Bucyrus International, Inc. IBC

Chemical Montana Company 34

Chevron / Fickler Oil Company Inc. 8

Cross Petroleum Service 16

Damascus Corporation 20

Delhur Industries, Inc. 14

Dick Irvin, Inc. Transportation 9

Dyno Nobel 32

Dywidag-Systems International 48

Energy Laboratories 11

ES&S Company 47

Ezzie’s Wholesale, Inc. 17

F&H Mine Supply, Inc. 47

Fickler Oil Company, Inc. 17

Geometrics Inc. 51

Golden Sunlight 37

Gough, Shanahan, Johnson & Waterman 44

Granite Seed 41

Graymont Western US, Inc. 43

H&E Equipment Services 42

Hardsteel Inc. 15

Holland & Hart, LLP 27

Hoss Equipment Company 5

Industrial Equipment Manufacturing Ltd. 25

ITT Flygt 4

KLS Hydraulics Machine Works 28

Midway Gold Corporation 28

Mines Management, Inc. OBC

Montana Seals And Packing CAD, Inc. 11

Moore Oil, Inc. 36

Nelson Brothers Mining Services, LLC 10

Northwest Pipe Fittings, Inc. 16

Okeefe Drilling Company 44

P&H Minepro Services 3

Pipeline Systems Incorporated 29

Power Service of Montana, Inc. 9

Rahnmet 45

Revett Minerals 19

Richwood 26

Ruen Drilling Incorporated 45

Stillwater Mining Company 40

Stone Raven Resources LLC 14

Techline Services 46

Terex Mining 7

The O.T. Mining Corporation 35

Tractor & Equipment Co. 21

Tri-State Truck & Equipment 41

Westate Machinery Company 9

Westate Machinery / Columbia Steel 29

Western Wyoming Community College 24

Wholesale Mine Supply, LLP IFC

WWC Engineering 13

index to advertisersM O N T A N A M I N I N G 2 0 0 7

Page 55:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992
Page 56:  · 12 Montana Mining 2007 PRESIDENT’S MESSAGE Iwas born and raised in Butte, Montana, and received a Mining Engineering degree from Montana Tech in 1992