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President MMA Mission Statement 8 David Langstaff Toll Free: 1-866-289-5672 MMA President’s Message ~ Mike Mullaney 10 Publisher Jason Stefanik MMA Executive Director’s Message ~ Debbie Shea 12 Toll Free: 1-866-831-4744 Review of Montana Mining and Exploration in 2007 ~ Montana Bureau of Mines & Geology 14 Managing Editor Katrina Senyk Montanans Support Development According to Poll ~ Montana Chamber of Commerce 20

Contributing Writers MMA Member Benefits 21 Evan Barrett Douglas D. Dobbs Scott Ellenbecker Montana Mining Paychecks ~ By Evan Barrett, Chief Business Development Officer 22 Lisa Fattori Tom Harrington & Ken Weber MMA Member Profile on Fess Foster ~ By Lisa Fattori 23 Pierre LeMieux Mark Stratton The Women’s Mining Coalition 24

Advertising Account Executives Montana Mining Association Board of Directors 2008 26 Ross James Arlene Nowicki Michelle Raike Brief Biography on Debra Pitassy 27 Jennifer Shurvell A New Generation Falls in Love with Mining in Montana 28 Production services provided by: S.G. Bennett Marketing Services The Highland Centennial Nugget ~ By Mark Stratton 30 www.sgbennett.com History of the Missoula Chapter, Montana Mining Association 33 Art Director Kathy Cable Stillwater Mining Company – Beyond Compliance 36 Layout & Design Debbie Dunmall Montana Tunnels’ Economic Impact ~ By Pierre LeMieux 40

© Copyright 2008, ROC L8-30 is Exceeding Expectations DEL Communications Inc. ~ By Scott Ellenbecker, Editor-in-Chief of Mining & Construction USA 46 All rights reserved. The contents of this pub - lica tion may not be reproduced by any means, in whole or in part, without prior Golden Sunlight Mine – Winding Down, or Not? 48 written consent of the publisher. Rio Tinto Minerals – Montana Operations 50 While every effort has been made to ensure the accuracy of the information contained herein The Center for Advanced Mineral and Metallurgical Processing (CAMP) 52 and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or Revett’s Positive Impacts on Local Economies Continues 54 statements made by advertisers. Opinions and recommendations made by contributors or Freedom of Resources ~ By Douglas D. Dobbs 58 advertisers are not necessarily those of the pub- lisher, its directors, officers or employees. Graymont Western’s Indian Creek Plant 62 Publications mail agreement #40934510 Return undeliverable How Do You Kickstart a Depressed Economy? 66 Canadian addresses to: DEL Communications Inc. The Challenge of Sustainable Development for the Mining Industry 69 Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 Holcim’s Trident Cement Plant 72 Email: [email protected] Index to Advertisers 74 PRINTED IN CANADA 05/08

6 Montana Mining 2008 -ONTANA-INING!PRIL?LOWBPDF  !- GOVERNOR’S MESSAGE MINING IN MONTANA Leading the Way to Quality Jobs in a Record Breaking Economy

ontana is on the Move, and mining is 2006 (the last year with complete data). highest per capita income in the state. The Ma big part of our success! We have seen more electrical generation proposed Montanore and Revett Minerals Montana has the 7th fastest growing capacity come on line over the last three mines currently undergoing permitting are economy in the nation over the past three years than in the previous 16 years com- located on a world class ore body in west- years. Our unemployment rate has set new bined, and much more is on the way. Hard- ern Montana’s Lincoln County, and could record lows in each of the last three years rock mining is setting records in terms of bring hundreds of needed jobs to that area. (3.6% in 2005, 3.2% in 2006 and the lowest volume and income. Profit sharing bonus checks from Montana ever recorded of 3.1% in 2007). We now Mineral prices, driven by national and Resources to over 350 workers in Butte have a record number of jobs (over international demand, are at record highs. have helped that economy to be stronger 486,000), and the quality of our jobs is on Whether gold mined at Golden Sunlight than it has been for years. Both Golden the rise. Mining provides high-paying jobs and Montana Tunnels, platinum and palladi- Sunlight mine and Montana Tunnels are for Montana families and communities. In um from the Stillwater mine, or copper poised for extended production life. fact, mining jobs are some of the best in the from Montana Resources or Troy, hard- I have been committed to ensuring that state. rock mining contributes greatly to our mining heritage is not just about the The resource sector continues to be a Montana’s economic strength, and still has past, but is part of our future as well. As I pillar to this strong economy. Montana is great growth potential for the future. have travelled the state, I have found that one of only two states expanding oil pro- Stillwater Mining employs 1,600 workers, most Montanans want the thousands of duction, with a 50% increase from 2004 to resulting in Stillwater County enjoying the high-quality jobs in Montana that come

Montana Mining Association Mission Statement he Montana Mining Association (MMA) is a Montana trade omy and well being. One of the Association’s primary functions is Tassociation dedicated to helping mining companies, small min- to promote and enhance the image of the mining industry. ers and allied trade members succeed, understand, comply and The Montana Mining Association works in cooperation with function in a complex business and regulatory world. The primary other state and national mining associations, natural resource trade purpose of the Montana Mining Association is to protect and pro- associations and groups with similar interests and needs. mote the mining industry in the state. The Association serves the industry on a wide range of subjects The Montana Mining Association monitors issues of concern through the expertise of its members. Many of the Association’s and provides representation for its members at the state legisla- activities are conducted by various committees. The Association ture and with various state and federal regulatory agencies. The has active Associates. Committees within the Association are Montana Mining Association supports national mining initiatives. Health and Safety (including the Health and Safety of employees The Montana Mining Association provides information and edu- within the Association), Education, Membership and Legislative cation for its members and distributes information to the general (including Environmental and Land Use and Political Action public about the contribution of minerals and mining to our econ- Committee).

8 Montana Mining 2008 from mining – as long as mining is done right, in a manner that does not destroy the natural world we all enjoy. New advances in mining technologies, combined with new market demands, provide oppor- tunities for mineral development that have not existed for a long time. We can take advantage of this window of opportunity to create and manage the growth Montanans want – and the opportunities they deserve. Montana mining operations can and do operate in an environmentally responsible manner. As long as that is the case, people will support our traditional sitive. I have asked my Office of Economic resulting in growth and quality jobs that are resource economy. Development to extend whatever help is compatible with our quality of life. That is I have asked the Montana Department of Environmental Quality to improve its per- needed to facilitate a fair and responsive what Montanans want, and that is what we mitting activities, not by lowering stan- business climate. Both have come through can deliver by working together. dards, but by being efficient and time-sen- in a way that makes all Montanans proud – Governor Brian Schweitzer  F&H MINE SUPPLY, INC.

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Montana Mining Association www.montanamining.org 9 PRESIDENT’S MESSAGE MIKE MULLANEY, President Montana Mining Association

have been honored to take on the responsibility as the new pres- and educate everyone about the importance of mining and how Iident this past year. It has been a learning and rewarding experi- mining impacts our quality of life. This takes much time and must ence working with board members and the executive director and be a top priority for the association. assistant. We reorganized the bylaws to set up a team-type associ- The legislative piece is in good shape now that we have a full ation that actively listens to feedback and then makes sound deci- time executive director with experience and relationships with sions on a consensus basis. many legislatures and the DEQ. In this complex world of regulato- There are four committees defined in our by-laws: Health and ry change, we have to partner up, share our opinions without the safety, education, membership and legislative. We have board mem- negativism, take the high road and follow the rules. This is exactly bers involved in all four committees. Commitment into these com- why the educational efforts are so important. mittees is essential to our success. The foundation has been put in It is great that we are having the annual meeting at Montana Tech place for a bright future for the association. Now we just need to this year. Many leaders in our mining industry were educated at deliver results: A safety culture on and off the job, people of all ages Montana Tech, so the venue could not be any better. Chad Hymus educated about the importance of our natural resources, environ- will be our keynote speaker at the annual meeting. Chad is an inspi- mental stewardship and compliance with reasonable rules and reg- rational speaker who will influence all who attend. Safety truly is a ulations. top priority. It is essential that efforts are put into our educational vision. We The producer members have really stepped up to help finance have some folks utilizing the provider pals and others involved in the association this past year. Thanks to all members for their sup- port of the association. Membership is increasing as there are new teacher workshops. These are great programs, and I commend the associate members and producer members have re-joined. Our producers involved. We need to get to as many schools as possible website has been up and operational for a year now. This is a great venue to communicate what we are doing in the mining industry and tell our stories. It is a privilege to be part of the mining industry. We work so Nelson hard in our typical day’s work that we take little time to really Brothers reflect on our accomplishments and to tell our stories. By putting out our annual magazine, we have started to tell our stories and MINING SERVICES, LLC communicate what we are doing. We have to focus on the people in our communities, educating and listening to them. We need to increase our size and link up with other folks impacted by mining as well as other associations with similar issues related to mining. The more we link up with each other the more we will be able to make big things happen. Please let the board know how we can improve the association. Thank you for the opportunity to serve as President of the Montana Mining Association. 

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EXECUTIVE DIRECTOR’S MESSAGE DEBBIE SHEA, Executive Director Montana Mining Association

MMA Executive Director Debbie Shea in front of the statue of Marcus Daly, one of the famous Copper Kings, at the entrance to the Montana Tech campus.

n his infinite wisdom, Founding Father ate high paying jobs and strengthen our Tech and Rio Tinto in their programs to IBenjamin Franklin provoked us to think of economy. A special thanks to Laura Skaar educate teachers about mining. We applaud our purpose with three things: “Whence and the Northwest Mining Association for their time and commitment to our educa- you came, where you are going and to their insight and leadership. At the state tional community. Throughout the year, var- whom you must account.” level, we are actively participating in conver- ious MMA members have volunteered time With this direction, the Montana Mining sation about climate change, and will con- in classrooms throughout the state, sharing Association has taken a fresh look and new tinue to monitor this issue as legislation our mining history, promoting the industry path in its promotion of mining in our great unfolds for the 2009 Legislative Session. with its new and innovative technology, and state. Education has been at the forefront of addressing the many issues and responsibil- Over the last year, our work has included our effort in several arenas. Our work with ities we face. In addition to our annual support for healthy mining legislation. At the Provider Pals Program has taken us into the federal level, we continue to support the elementary classrooms of the Willow scholarships to Montana Tech, we are proud common sense amendments that address Creek School District in a program spon- to sponsor the Mike Ivens’ Scholarship in shortcomings of the Mining Law of 1872, sored by Holcim Cement, Rio Tinto and memory of Mike Ivens and all of our fallen while promoting legislation that will reduce Fess Foster. In the coming months, we are miners. America’s reliance on foreign minerals, cre- looking forward to our work with Montana This year, the MMA’s Annual Meeting will be held on the campus of Montana Tech of the University of Montana. The May 14th and 15th event is packed with activity. Chancellor Frank Gilmore will give wel- coming remarks, and the Dean of the Mining Engineering School, Pete Knudsen, will address the membership. The HPER Complex at Montana Tech will host the Trade Fair, open to the public the afternoon of April 14th. Golf and mining history tours will highlight the two day event. The meeting will close with motivational speaker Chad Hymas. Our WEB site, under the direction of Debra Pitassy, has served as a great tool in educating folks about our work in support of mining activity. A great venue for adver- tising for our membership, we encourage you to take a look at www.montanamin- ing.org Within the pages of this edition of the publication, we hope you find stories of interest, mining at its best, and a vision for the future of mining in the Treasure State of Montana. Tap ‘er light! 

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Rob McCulloch, down the mine. By Robin McCulloch

uring 2007, mining operations in Montana continued with steady Near Noxon, R.C. Resources, Inc. (Revett Silver Co.) has perse- Dgrowth. Two existing mines were permitting expansions, and one vered in their permitting effort of the Rock Creek project (Cu, Ag), completed a pre-feasibility study for an expansion. A medium-sized which has now continued for more than a decade. An extensive mit- underground mine progressed rapidly on its way to a permit. A igation program intended to benefit the grizzly bear population cement plant was waiting for the state to release the final EIS on an includes paying for two fulltime positions for Montana Fish, Wildlife alternative fuel permit. Small-scale mine owners scrambled to find and Parks and land acquisition of key grizzly bear habitat that will be qualified ore to take advantage of an opportunity to sell gold ore to deeded to the U.S. Forest Service. Pending implementation of the mit- the Golden Sunlight mine. igation plan and posting of the reclamation bond, the USFS and Operations continue to be hampered by high fuel costs, limited Montana DEQ have given approval to drive an evaluation adit into the equipment availability, and large-diameter tire shortages which have ore body in 2008. The evaluation adit phase of the project will be fol- plagued the entire industry in recent years. Shortages of skilled labor lowed by completion of a feasibility study and full mine development, continue, especially for underground operations. However, the indus- assuming the study produces positive results. The evaluation adit is try is experiencing high commodity prices and demand for products expected to take 18 to 24 months. far and above any time in the recent past. On the Libby side of the Cabinet Mountains, Mines Management completed the Draft Environmental Impact Statement on their OPERATIONS Montanore mine (Cu, Ag) plan in late November 2007. They also Genesis’s Troy mine, a wholly owned subsidiary of Revett Silver Co., raised $32 million to continue the reserve definition on the deposit achieved targeted production of approximately 4,000 tpd of copper that was started by Noranda Minerals in the 1990s. They will drive and silver ore. The underground room-and-pillar mine, located south 10,000-ft of development to facilitate 45,000-ft of diamond drilling. of the town of Troy in northwestern Montana, appears to have These data will enable completion of a bankable feasibility analysis achieved a stable workforce and increasing production levels. They prior to development. The company is anticipating a Record of have continued to expand their reserves with an ongoing resource- Decision on the project at the end of 2008, while the government definition program that includes both surface and underground agencies are anticipating it in 2009 or 2010. The company plans on drilling. developing the underground for drilling this spring.

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14 Montana Mining 2008 Information from: Montana Bureau of Mines and Geology Active Mines in Montana – March 2008 1300 W Park St, butte, MT 59701; www.mbmg.mtech.edu

Near Superior, John Hagaman produced coarse gold from the deposit. Drilled underground resources are reported at 4,375 million Calumet gold placer on Quartz creek. Having produced from the tons at about 0.5% copper and 0.04% molybdenum. Stripping opera- deposit margins for two years and reclaimed much of the existing dis- tions on the north side of the pit intended to eliminate a potential turbance, the coming year may see an expanded level of activities in rock failure uncovered some previously unidentified ore. the remaining deposit. Near Alder, Ruby Valley Garnet has completed mining the first In Butte, Montana Resources had another profitable year of cop- phase of their Red Wash garnet deposit. The operations have moved per, silver, and molybdenum production. Large-diameter truck tires onto the adjacent property as they progress up the drainage towards and skilled labor remain difficult to acquire. The company is planning the garnetiferous gneiss outcrop near the top of the ridge. The wash on purchasing two additional trucks and a shovel, as well as continu- plant for the operation was reconfigured with a larger jig circuit and ing to upgrade much of their support equipment. Their labor force is more effective finishing circuit, resulting in increased tonnage steady at 4% turnover, mostly from retirements. The profit-sharing processed and better recovery rates. The primary market has been program at the mine appears to be very popular given the number of blast media (sand blasting), but garnet sand for water-jet cutting is also new pickup trucks in Butte. Open-pit reserves are approximately 538 produced. The prices are up and the demand is steady to increasing. million tons at 0.26% copper and 0.03% molybdenum in the current A second operation that will reprocess the Alder Gulch gold operation. There are 505 million tons at 0.48% copper in the adjacent dredge piles has been started. This project will reclaim the historic

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Montana Mining Association www.montanamining.org 15 At the Yellowstone mine, south of Ennis, Rio Tinto Minerals upgraded sup- port equipment with replacements for a grader, lubrication truck, and loader. High costs for diesel and explosives are a concern, but the company reported no significant tire shortages and the workforce has been very stable. At their Three Forks plant, greenhouse gas emissions were reduced by 26% in the fine-grind circuit, and similar reductions are planned in the coming year in other sections of the plant. At Montana City, Ash Grove West maintained cement production at capac- ity. They have experienced significant increases in the cost of rail transporta- tion, coke, coal, and trucking of their products. Their labor force has reached stability following a recent turnover from retirements. Despite the significant community that has developed between their pit and the plant, operations have continued safely. North of Boulder, Montana Tunnels Exploration in Montana – March 2008 Mining Inc. (50% Apollo Gold Corp., 50% Elkhorn Tunnels LLC) completed their pit-wall stability project for the mining damage from the 1880s while recovering garnets and gold. The Montana Tunnels mine in January 2007, restarted the mill in March, company completed a test run in the fall, and will initiate production and completed the rebuild on the crusher in August 2007. They during the 2008 season. employ 215 people and enjoy a steady workforce, producing lead, South of Melrose, Apex Abrasives Inc. has started construction of zinc, gold, and silver. They have applied (in 2004) for an expansion per- a process facility designed to separate the scheelite from the garnet mit to access remaining open-pit mineable reserves. The Montana sand tailings at the old General Electric millsite. This waste from the DEQ and contractors are so far behind schedule in their analysis that Len Tung tungsten (Browns Lake) deposit will be separated into two the mine is in danger of having to close for lack of permits and lack marketable products; garnet sand that is very effective for water jet of permitted ore. The new permit will extend operations through cutting media, and sheelite concentrate. Production is expected to 2015. commence in the spring of 2008. East of Boulder, Elkhorn Goldfields started permitting their Golden East of Dillon, Barretts Minerals, Inc. completed a reserve defini- Dream, underground gold-copper deposit located near the ghost tion-drilling program for the talc at the Regal mine. They have moved town of Elkhorn. Completeness of the application was achieved in the county road and completed a redesign and expansion of their less than a year, and permits and development are expected prior to waste-rock dump. They have increased their workforce and procured the second quarter of 2009. Reserve defining drilling has been steady a replacement shovel for one destroyed by fire. A second thickener at 20,000-ft per year; reserves are approaching 1 million tons at 0.27 has been added to the beneficiation plant. opt gold-equivalent. Mineralization is contained in a chalcopyrite-mag-

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16 Montana Mining 2008 netite skarn in the Meagher limestone. The agement and an exodus of many in the engi- mechanics resigned to fill jobs located clos- company has data that partially defines three neering department. er to family ties and/or higher wages. At other deposits; additional targets remain to At Nye, Stillwater Mining Company’s the same time, the company reduced their be drilled in the vicinity of the current oper- Stillwater mine experienced a significant dependence on contracting companies for ation. The current mine permit application decrease in production. The end-of-year development and production. The shortfall appears to be progressing at a rapid rate report documents a one week strike as one in mechanics created a backlog in mainte- because they are planning to process the ore of the reasons, but a shortage of experi- nance, and decreased availability of equip- at a remote site. enced mine workers was perhaps more sig- ment that only served to make a bad situ- Near Townsend, Graymont Western, USA nificant. Stillwater tried to compensate for ation worse. has submitted a 50-year, life-of-mine permit the shortfall by reducing from four crews to The Stillwater Mining Company was heav- application for the Indian Creek Quarry to three crews, and going to a 43-hour week ily hedged on platinum sales and was not the Montana DEQ. This plan will allow the from a 37-hour week. In response, a signifi- able to enjoy the price surge of the past year. company to incorporate recently discov- cant number of senior-level miners and Palladium hedges were closer to market ered, high-purity limestone resources into their production schedule. The plant is pro- ducing burnt lime, hydrated lime, and precip- itated calcium carbonate at near plant capac- ity in a strong market. They are celebrating 25 years in business. At Whitehall, the Golden Sunlight Mining Co. (Barrick Gold Corp.) continued mining their gold deposit at the Golden Sunlight mine through underground access at 1,000 tpd and by open pit. Although the stage 5B pit is nearing completion, the increase in commodity prices has established reserves for a stage 5C pit at 8 million tons at 0.055 opt gold. The pre-feasibility analysis was pos- itive, and coupled with the final EIS and Record of Decision recommending against pit backfill, the company has applied for an expansion of operations to extend the mine life by three years. They have also resumed exploration of the property for satellite ore bodies. Results so far have been disappoint- ing. Near Three Forks, Holcim (U.S.) Inc. is still waiting on the DEQ for the final EIS and approval on alternative fuel substitution. Their project could consume all of the waste tires in Montana while replacing 20% of their coal requirements and a small per- centage of their iron needs. The tires will also reduce NOX levels by changing the temperature zones in the kilns. The plant is producing cement at capacity, and produc- tion is sold out. The softening of the resi- dential building boom removed the need for cement rationing. Near Big Timber, Stillwater Mining Company’s East Boulder mine experienced a decrease in platinum group metal (pgm) pro- duction while transitioning from bulk mining methods to more selective methods. They are rumored to have since partially reversed that plan, and are in the process using both techniques. They had a change in mine man-

Montana Mining Association www.montanamining.org 17 prices so the difference between the actual and the potential palladi- West of Melrose, Bolero Resources drilled two helicopter-sup- um sales revenue was not so severe. Hedging will phase out in early ported holes on the Cannivan Gulch molybdenum deposit. The 2008. Of the total metal production for the year, the recycling of cat- deposit was discovered and defined by Cypress but was never per- alytic converters represented 50% of the revenue. mitted because of declining prices. The company has proposed The company has changed its hiring practices from a minimum age reopening reclaimed roads for an in-fill drilling program. The propos- of 21 to 19, and is focusing on local recruiting and its miner training al has not encountered much opposition. programs. Although it is not likely to solve immediate production problems, the current graduation rate of 100 miners per year pro- West of Dillon, Silica Resources has permitted a drilling project at vides a long-range solution to the labor problem if they can entice and around the Elkhorn mine (Coolidge). Early mining operations them to stay. Similar solutions need to be sought for current and ceased prematurely when a dam failed in Pattengail creek in the 1920s future shortfalls in geologists, mining engineers, management, and and destroyed the narrow gauge railroad. The deposit consists of other technical services throughout the industry. polymetallic-sulfide veins that produced recoverable copper, lead, Both Stillwater mines tested biodiesel in production equipment at zinc, and silver. Gold placers occur on the west side of the ridge near a 50% mixture to diminish diesel particulate matter. The test was a Crystal Park. success; however, their needs will exceed the total current produc- Downstream from Bannock, Bob Back is testing a placer deposit tion in the region. on lower Grasshopper Creek. The Cowen Bar has a placer gold his- EXPLORATION tory but limited exploration and development. Mineral exploration in Montana has lagged severely behind Nevada Near Virginia City, Moen Builders sampled mine dumps in the and the Canadian provinces. Investment dollars have been slow to Browns Gulch and Alder Gulch drainages to identify gold resources arrive in the state, following the initiative campaigns by the preserva- that could be shipped to the Golden Sunlight mine. One of the tionist community that culminated in a ban of cyanide used in con- adits on the Little Lode claim was reopened. They did not succeed junction with open-pit gold mining. With that came a reputation that in identifying any ore. The U.S. Grant mill was sold and the mine is mining could not be permitted in Montana. being rehabilitated for a diamond-drilling project. Moen Builders The truth is that although permitting has been slow in some also contracted some of the renovation work at the Dillon cases, it has been completed on many projects throughout the state. Discussions with industry and the agencies have indicated Vermiculite mill east of Dillon. that most underground mines can be expected to be permitted in East of Lincoln, Newmont reclaimed 45,000-ft of drill roads and 3-4 years. Open pits are more of an unknown, and most of the min- pads on the McDonald Meadows deposit. Although they have ing community agrees that it will take 5-10 years to permit a large, acquired the deposit data, this state trust land is not currently new open-pit mine. under lease. Montana experienced a modest increase in exploration activities Near Nevada Lake, Darden Engineering tested Finn District gold during the field season but became an exploration target for many placer gravels on the Stuckey Ranch. Holes were dug in the new companies by the fall. Activities are expected to ramp up over American, Cattle Gulch, and Jefferson creek drainages. The work the next two years. has identified the paleo-stream channels of American, Washington Southeast of Missoula, Kennecott Exploration drilled three to five holes in pursuit of a deep copper-porphyry target in and and Madison creek drainages. However, a mineable resource has around the Copper Cliff area. The drilling confirmed a geophysical not yet been delineated. Work will continue in 2008. target. Down-hole geophysics and further drilling are scheduled in Near Marysville, RX Exploration contracted rehabilitation work the 2008 field season. on the main level for the Drumlummon gold mine. Blue Range The Grant Hartford Company has permitted a drilling program Engineering completed nearly 1,800-ft of the 400-level, in prepara- on gold skarns near Garnet. Pegasus Gold Corp. established ore tion for a $1.5 million underground drilling program to delineate reserves on a number of deposits in this area in the 1990s. The com- remaining reserves. Surface drilling has confirmed the reserves pany will focus on higher grade targets within those deposits. shown on the mine maps. General Minerals has permitted a drilling program in the vicinity of the Bluebird Copper mine, located south of Philipsburg (Middle Fork West of Marysville, Bolero Resources continued to drill at the drainage of Rock Creek). North of Philipsburg, ASARCO permitted Bald Butte molybdenum deposit. The company contracted Ruan four holes at the Black Pine mine (Ag, Cu) and completed three of Drilling to drill sixteen, 900 to 1,300-ft diamond-drill holes for ore the four holes. The holes were about 1,000-ft deep. definition. The results are expected to confirm Gulf Minerals’ pre- North of Butte, OT Mining completed final permitting for dia- vious work and provide some in-fill data. mond-drilling a nearly 1,000-ft-deep copper porphyry prospect Southeast of Whitehall, the Mayflower mine has been sold to defined by geophysics and geochemistry. The host rock is a Golden Sunset Trails. They are planning a geophysics program that Cretaceous pluton that was exposed at the surface prior to burial will be followed by a drilling program off of the 600-ft level in by Eocene Lowland Creek volcanics. The company is looking for a search of a parallel structure. Previous drilling by Brimstone Mining partner in the project. South of Butte, Timberline Resources drilled four holes in the identified reserves of 21,000 tons grading 2.5 opt gold and 17opt Highland Mountains to expand the 600,000 troy ounce resource silver. The property appears to have potential on the existing struc- identified by Orvana Resources in the 1990s. The target is skarn- ture of 100,000 ounces of gold and has a complete mining infra- hosted gold in the Wolsey Shale. structure in place.

18 Montana Mining 2008 Near Silver Star, Coronado Resources has contracted Blue Range Stillwater mine. It was not possible to confirm any company activities Engineering to develop resources on their Madison project in 2007 at that site. (Broadway-Victoria mine). They have completed 736-ft of decline and In the Lewistown area, Delta Mining and Apex Geoscience mined 276-ft of crosscuts and development. They purchased a crusher, a small bulk sample of 30 tons from their Homestead Kimberlite mined 670 tons of 0.38 opt gold and 1,450 tons of 9.5% copper. The property. copper ore was a mixture of chalcocite and native copper. The gold ore was sold to the Golden Sunlight mine while the copper ore waits COAL shipment to an undisclosed site. The company is planning an under- Montana coal production in 2007 was up by 4.1% to 43,485,635 tons. ground drilling program for ore delineation. Southeast of Silver Star, Big Timber Reclamation Co. completed a Lignite production nearly doubled, but Powder River Basin coal pro- trenching program on the intrusive at the Moffitt-Johnson copper duction showed only modest increases, and underground coal pro- mine. The company has identified molybdenum in the drill core of duction at Roundup was down sharply as compared to prior years. their copper-pyrite skarn deposit. Near Decker, the Decker Coal Co. reduced production at the East of Sheridan, Millstream Mines, Ltd. continued working on the West Decker mine by 1% to 6,972,909 tons. Spring Creek Coal Co. Tamarack mine and mill. The company has mined 1,500 tons of 0.4 opt increased production at the Spring Creek mine by 8.3% to 15,773,724 gold that they intercepted during a drive towards drill-indicated tons. Westmoreland Resources increased production at the Absaloka resources. Work has been focused on completing the rebuilding of mine by 8.3% to 7,347,794 tons. the 100-ton per day mill. Near Colstrip, Western Energy Co. decreased production by 1.5% Also east of Sheridan, the Hunt family drilled a few holes on the to 12,337,901 tons. Production at the waste coal plant was up 20.1% Smuggler mine. This mine produced gold ore on a small scale from to 244,884 tons. near surface workings before World War II. All mine workings are Near Sidney, Westmoreland Savage Corp. increased production of currently inaccessible. lignite at the Savage Strip mine by 77.3% to 671,123 tons. In the Nye area, Bear Tooth Platinum drilled on a 15 kilometers long pgm-nickel-copper soil anomaly coinciding with the “B” chromite Near Roundup, Bull Mtn. Coal Mining production at the Bull Mtn. layer. The company has budgeted for 34 holes totaling 20,000 ft. mine decreased by 49% to 137,300 tons. The drastic reduction of Trend Mining planned to reopen the Mouat (Mt. View) mine for an mining in mid-year was in response to reported financial shortfalls. underground drilling program focused on the copper-nickel zone in Resumption of mining to previous levels appears to depend on reso- the Stillwater complex. The mine is located southwest of the lution of legal issues. 

Montana Mining Association www.montanamining.org 19 SURVEY RESULTS Montanans Support Development According to Poll By Jon Bennion,

Government Relations Director for the Montana Chamber of Commerce Chamber of Commerce

he results of the 2008 Power Base are in, the natural resource industries. For example, Montana’s vast energy resources addresses Tand they show that Montanans are 68% of Montana voters want the state to both of these top concerns. strong supporters of business and resource encourage more timber, mining, oil and gas By increasing our extractive industries development in Montana! development, while only 18% are opposed. here, we not only create good-paying jobs for The Power Base (P-base) is an annual sci- Strong majorities of voters believe busi- Montanans, but we also help out with our entific poll of 800 Montana voters on a vari- nesses can be trusted to make important country’s energy supply problems by produc- ety of business and political issues, with a decisions when protecting the environment. ing more American sources of energy. It’s a margin of error of less than 4%. The poll has 63% stated businesses could be trusted, while win-win situation! been commissioned by the Montana only 25% said they could not. These numbers Unfortunately, many lawmakers are more Chamber of Commerce, since 1991, to have remained constant through the many interested in shutting down resource devel- determine what regular Montanans think years the Montana Chamber has conducted opment in Montana through increased gov- about important economic issues facing our the P-base poll. ernment regulation, increased taxes, and law- state – especially on the issue of natural Staying consistent with prior P-base polls suits. There were dozens of bills last session resource development. and other surveys, Montanans still list job cre- that would have been detrimental to devel- As in prior surveys, the P-base shows ation as their number one priority by far. opment in our state. At the same time, many Montanans want to see more business Their second priority is bringing down the of these lawmakers were demanding more growth, especially in high wage businesses like cost of energy. Responsible development of money for state government programs. We understand that development of our state’s treasures will allow for good invest- ments in government programs, especially our schools. Just look to the south, where development in Wyoming is moving forward at a record pace and school funding is reach- ing record highs to match. In 2006, Wyoming’s state spending per student was $11,200, while Montana was around $8,600. Is Wyoming just placing a higher priority on spending money on education? No, they just have more money to fund it. Their new school construction, high per student funding, and high salaries for teachers are a direct result of natural resource development. We owe it to our children to develop our state’s treasures. Not only will they see more money going towards their education, but they will also have better opportunities and jobs in-state once they finish their education. Perhaps we can keep more of them here rather than sending a good portion of them out-of-state to find jobs. The results of the P-base are clear: Montanans are strong supporters of respon- sible development. If we work with Montanans to create a strong economy through responsible natural resource devel- opment, we can look forward to many years of prosperity ahead! 

20 Montana Mining 2008 MMA MEMBER BENEFITS

Montana Mining Association www.montanamining.org 21 Montana Mining Paychecks were laid off. Thousands of good paychecks Quality Jobs and a Quality Way of Life were no longer sustaining families. Stores were closing and families were moving. By Evan Barrett, Chief Business Development Officer, There could have been no better exam- ple of the value of good-paying mining jobs. Governor’s Office of Economic Development Then in 1983 another seismic jolt – the mine and concentrator would be closed. ining has been the life-blood of mining towns. I found the same, but on a The bottom really fell out of the economy, MMontana, from its beginning, when it much grander scale, when I moved to Butte and even more thousands of Montanans was the backbone of our economy, until in 1979. Although Butte’s underground were feeling the pinch. Between 1975 and today, when its high-paying jobs are a high- mining operations had essentially ceased in 1983, over 5,000 direct Anaconda Company light of an increasingly diversified economy. 1974, mining from the Berkeley Pit defined jobs were lost between Butte and I have personally seen the impacts of min- Butte and its economy. I was comfortable Anaconda. Between 1979 and 1984, 4,800 ing on the families of Montana. I was born with Butte’s working class environment direct and secondary jobs were lost in Butte into a coal mining family. One of my great- and trade union tradition. Again, those alone. More than 30% of all jobs were lost. grandfathers was the State Coal Mine who continued on the Anaconda Com- Again, families were leaving and businesses Inspector under Governor Sam Stewart, pany’s (ARCO’s) payroll made a decent liv- were closing. while another opened an underground coal ing – when they were working. I was able to work on the community mine near Joliet when he first arrived in But Butte’s title as the “Richest Hill on effort to get the mines re-opened. The pur- Montana. I was born in Red Lodge, a coal Earth” was being threatened by job losses as chase of the mine and concentrator in mining town, and raised in Roundup, anoth- the Anaconda Company tried to find ways 1985, and the re-opening in 1986, demon- er coal town, before returning to Red Lodge to make up for its historic losses in the strated the impact of good mining pay- to go to and graduate from high school. My expatriation of its assets in Chile by the checks. It was the greatest sound when I grandfather and several uncles worked in Allende government. Then, on September parked along the mine perimeter and could the underground coal mines of Red Lodge, 30, 1980, the bottom dropped out and the hear the roar of the mine trucks hauling Bearcreek, Klein and Roundup. My grandfa- economy of Butte, Anaconda, Great Falls, ore to the concentrator; for that was a ther’s brother, my great uncle, was mine and, indeed, all of Montana was hit by a seis- sound that led to the jingle of coins in min- manger in Roundup. While no one was get- mic economic jolt. The smelter in Anaconda, ers’ pockets, the sound of families gather- ting rich, the mining families had a paycheck the refinery in Great Falls and the Berkeley ing from across town at Christmas instead that you could raise a family on. Pit in Butte were all closed. While a new having to travel across the country. Both Red Lodge and Roundup were eth- smaller open pit mine was started and the Good mining paychecks began to sustain nically diverse communities, a hallmark of concentrator remained open, thousands the community once again. When Governor Brian Schweitzer asked me to head up his economic development office, he said he wanted to see more good mining paychecks across Montana. Our office was charged with helping mining com- panies start up or expand. The only proviso was that the mining companies we were to help were those who could do mining right – in a manner that does not destroy our high quality of life. As long as Montana min- ing operations can operate in an environ- mentally responsible manner, the state will support our historical resource economy and the quality jobs that come with it. Governor Schweitzer believes that 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. The Governor’s Office of Economic Development is dedicat- ed to that, and we look forward to working with many of you toward the reality of good paying mining jobs as part of our state’s diverse economy. 

22 Montana Mining 2008 MMA MEMBER PROFILE FESS FOSTER Fess Foster rolls up his sleeves for the Montana Mining Association By Lisa Fattori

very involved with exploration and mine doing many very positive things, with permitting, and has also provided project respect to reclamation and developing management services. community sustainability programs. The s a director of the Montana Mining A strong supporter of Provider Pals MMA’s web site is a great opportunity to AAssociation (MMA), Fess Foster, Ph.D., (providerpals.com), Foster helped imple- tell these good news stories and to educate CPG, has been invaluable in promoting the ment the program in elementary schools in the public about how mining companies are association, supporting educational pro- his own community. This innovative pro- having a very positive impact within their grams and providing council on the formu- gram educates urban and rural youth about communities.” lation of progressive legislation. Foster has their natural resource providers through According to Foster, the increase in worked in the western US, and overseas, as fun, interactive computer-based activities. metal prices in recent years has breathed a geological and environmental consultant. For the public in general, Foster has helped new life into the association. Increased His specialty is providing expertise to min- to update the Montana Mining Association’s interest has translated into an increase in ing companies in Montana. web site, to educate viewers about the real- membership, which helps support a num- “Fess is an agent of change, who has ity of mining companies and their commit- ber of initiatives. been an intricate part of what we’re trying ment to social and environmental responsi- “We’re definitely in a position to to do to advance the association,” says bility. increase membership, and we’re seeing a lot Debbie Shea, Executive Director of the “It’s critical that mining companies work of younger people getting involved,” Foster Montana Mining Association. “Last year, he with local communities to explain their says. “Traditionally, mining has been pretty helped with our work in presenting a bill to objectives and to address any concerns of conservative, so it’s nice to get some fresh the legislature, and he is very involved in residents,” Foster says. “Companies are new ideas.”  educating children and the general public about the incredible things that producing mines are doing within their communities.” Foster’s busy career as a specialist in metallic minerals began quite by accident. “I had a job packing mules for outfitters he says. “One summer, I had a contract to lead a group of geologists. I was making just $175 a month. The idea of becoming a geol- ogist, so I could still work outside and make better money, looked pretty good. One member of the party was a professor who said that I had to go for a degree in geolo- gy and make good grades.” Foster’s first job as a geologist was map- ping for the US Geological Survey. After earning his Ph.D., he began working for industry in 1982. Foster has worked in Montana most of his career. He has done extensive research on Montana structure, gold deposits, and porphyry systems, including the one at Butte. He has been

Montana Mining Association www.montanamining.org 23 the issues to lawmakers. Their labor serves to educate lawmakers who haven’t the knowledge, experience, or the time to do research on the subject. The modern mining industry has WMC members working in all sectors, including industrial minerals; metals and coal mining; energy generation and distribution; manufacturing; and the service industries supporting the domestic and international mining community. The WMC boasts membership from Alaska to New York, and includes scientists, engineers, miners and administrators. Believing in participation from stakeholders nationwide, this group brings constituents together from across the country to communi- cate with members of Congress and their staff about real issues fac- THE WOMEN’S ing the mining industry today. Their message, resonating throughout the halls, is that a strong mining industry is important to the United States; that jobs across the country depend on mining; and that MINING today’s industry uses state-of-the-art environmental and safety pro- tection measures. COALITION The Women’s Mining Coalition has been organizing grassroots outreach efforts both in their home states and Washington D.C. In he Women’s Mining Coalition (WMC) has been an active grass- recent years, they have partnered with the National Mining Troots organization since 1993, its sole purpose being to edu- Association and played a key role in passing the 2005 national ener- cate Congress and their staff on the ways of mining. gy policy. Other issues of continued focus are providing facts about The Coalition has found itself immersed in a tremendous chal- mountaintop mining, the need for modernization of the National lenge countering the one-sided negative banner of the environ- Environmental Policy Act and the Endangered Species Act, as well as mentalists. Their work is to present the mining industry’s side of national mineral policy discussions and many other important issues. www.metsominerals.com

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24 Montana Mining 2008 The Montana Mining Association is proud to feature this extraor- dinary Coalition in our publication.

Founders Kathy Benedetto, Minority Staff, US House of Representatives Sub- Committee Natural Resources Debra W. Struhsacker, Environmental Permitting and Government Secretary: Kim Wolf, Barrick Goldstrike Mines Inc., Nevada Relations Consultant Treasurer: Cami Prenn, Mine Development Associates, Nevada Ruth A. Carraher, Vice President, Gold Summit Corp. USA Consultants Current Officers Ann Carpenter, Nevada President: Anne Wagner, Chevron Mining, Inc. – Questa Mine, New Terah Burdette, Arch Coal, Inc., West Virginia Mexico Vice President: Jacqueline Cahoon, CONSOL Energy, Inc., West For further information, please visit the WCM’s website at: Virginia http://www.wmc-usa.org/. 

Montana Mining Association www.montanamining.org 25 BOARD OF DIRECTORS Montana Mining Association Board of Directors 2008

Mike Mullaney, President...... O (406) 285-4970 Bruce Gilbert, Director ...... O (406) 322-8700 Holcim (US) Inc. Stillwater Mining Company 4070 Trident Road, Three Forks, Montana 59752 536 East Pike Avenue [email protected] P.O. Box 1330, Columbus, MT 59019 [email protected] Doug Miller, Vice President ...... O (406) 295-5882 x 222 Troy Mine – Revett Genesis Jim Liebetrau, Director...... O (406) 563-8494 x 11 PO Box 1660, Troy, MT 59935 AFFCO...... C (425) 210-3653 [email protected] 1015 East Sixth Street, Anaconda, MT 59711 [email protected] Mark Redfern, 1st Vice President...... C (406) 671-4105 Brenntag Pacific Robin McCulloch, Director ...... O (406) 496-4171 123 West Boulevard, Lewistown, Montana 59457 Montana Tech [email protected] W. 1300 Park Street, Butte, MT 59701 [email protected] John Junnila, 2nd Vice President ...... O (406) 373-6010 Westate Machinery Company P.O. Box 50370, Billings, MT 59105 Gene Nelson, Director...... O (406) 549-8856 [email protected] Yellow Band Gold Inc. 3926 Bellecrest Drive, Missoula, MT. 59801 Tim Smith, Past President...... O (406) 495-2803 [email protected] Montana Tunnels Mining Inc. P.O. Box 176, Jefferson City, MT 59638 [email protected] Fred Panion, Director ...... O (406) 285 5303 Rio Tinto Minerals Matt Wolfe, Secretary / Treasurer...... O (406) 322-8700 767 Old Yellowstone Trail, Three Forks, MT 59752 Stillwater Mining Company [email protected] 536 East Pike Avenue, P.O. Box 1330, Columbus, MT 59019 [email protected] Roger W. Rohr, Director ...... C (406) 698-1563 Tractor and Equipment Co. Elton Chorney, Director...... O (406) 266-5221 Major Accounts Manager Graymont Western U.S. Inc. [email protected] P.O. Box 550, Townsend, MT 59644 [email protected] Rocky Smith, Director...... O (406) 683-3346 Barretts Minerals Mark Cole, Director ...... O (406) 434-5583 8625 Hwy 91 South, Dillon, MT 59725 Dick Irvin Inc. [email protected] PO Box 950, Shelby,MT 59474 [email protected] Jim Volberding, Director...... O (406) 538-2501 Canyon Resources Corporation Tad Dale, Director...... O (406) 496-3200 P.O. Box 799, Hilger, MT 59451 Montana Resources [email protected] 600 Shields Avenue, Butte, Montana 59701

Tim Dimock, Director...... O (406) 287-2046 Debbie Shea, Executive Director...... O (406) 495-1444 Barrick - Golden Sunlight Mine Montana Mining Association...... 453 MT Hwy 2 East, Whitehall, Mt 59759 1820 North Last Chance Gulch...... [email protected] P.O. Box 5567, Helena, MT 59604 [email protected] John Fitzpatrick, Director...... O (406) 442-5032 Debra Pitassy, Executive Assistant ...... O (406) 495-1444 Fess Foster, Director...... O (406) 287-3261 Montana Mining Association...... Geological & Environmental Consultant 1820 North Last Chance Gulch...... 21 Paul Gulch Road, Whitehall, Montana 59759 P.O. Box 5567, Helena, MT 59604 [email protected] [email protected] www.montanamining.org

26 Montana Mining 2008 BIO Debra Pitassy

Debra graduated high school ahead of her class, and obtained an Administrative Assistant’s Certificate at the age of eighteen. She is currently working on a business degree at the University of Montana, Helena, and brings with her a multitude of skills and abilities. Of the various duties she is responsible for with the Montana Mining Association, providing member services and working on the MMA’s website is among her favorites. Always having an innate understanding of technology, she is proud to contribute to this valu- able asset to members. Currently, the website has an average of 5,200 page visits a month, and new features are constantly being added. Within the past year, the website has gone from “Under Construction” to a 20 plus page resource for everything from reclamation to legislation. ebra Pitassy came to Helena, Montana after working as an Please visit the MMA’s website at www.montanamining.org If you DExecutive Assistant to a Senior Vice President at the Robert have a story you would like to see featured on the website, or are Mondavi Winery in Napa Valley, California. Her husband’s fond mem- interesting in advertising opportunities on the website or in the ories of Montana as a child brought the two of them back to MMA’s official publication, the Montana Mining, please contact Debra Montana to raise their two boys, Joey and Jimmy. Pitassy at (406)495-1444.

Holland & Hart has provided comprehensive representation for the mining industry for 60 years.

I Acquisition, disposition and financing of mineral projects worldwide I Financial and regulatory due diligence Larry W. Petersen I Development of mining infrastructure [email protected] I State and federal legislation for mining Donald W. Quander I Mineral patenting and permits [email protected] 401 North 31st Street, Suite 1500, Billings, MT 59101 I Title opinions, quiet title actions and title curative work Charles Hingle (406) 252-2166 I Access, surface/mineral owner and royalty dispute resolution [email protected] www.hollandhart.com I Environmental, public lands and NEPA issues

Montana Mining Association www.montanamining.org 27 A NEW GENERATION FALLS IN LOVE WITH MINING IN MONTANA work his company has done for a number of University of Montana his freshman year mineral exploration companies over the and soon realized that his heart was really in years. Sholty Contracting’s work has includ- Butte at Montana Tech. When Andy was a ed clearing land with dozers of excavators, child, he spent his free time designing and completing road construction to drill sites, building things indoors and out. His love of as well as building temporary bridges - one the outdoors gave him the drive to finish his crossing the Little Blackfoot near Elliston. Eagle Scout before graduating from high Jeff and his crew have also done school. The unlikely combination of two exploratory trenching and worked with things he truly enjoys led him to mining exploration companies in the Butte engineering. Highlands, the Browns Gulch near Virginia During his sophomore year, he trans- Jeff Sholty City, and at Radersburg near Townsend. His ferred and was soon heavily involved with all company’s projects with Exxon Minerals, of the activities associated with the Mining ow did a couple of foresters from the Utah International, Noranda, FMC Gold, Engineering program – the Mining Team and HUniversity of Montana manage to raise AMEX Gold, and Phelps Dodge have the student chapter of SME. As a junior, two children that want to be engineers? (A allowed him to work, and make lasting Andy was co-president of SME at Tech. Mining Engineer and a Metallurgical and friendships, with many of the minerals staff Today, he’s in Rolla, Missouri with the other Materials Engineer at that!) from each of the Montana companies. members of the mining team, hoping to cap- Jeff Sholty met Lynne Withycombe while Jeff’s specialty is reclamation and rehabili- ture first place. Next year, Montana Tech will attending the School of Forestry at the tation, working closely with the federal and be hosting the competition in Butte. Andy University of Montana. After graduation, state agencies to accomplish the work. Jeff’s has worked as a summer intern for Barrick Lynne went to work for the US Forest forestry background has been frequently Gold in Elko, Nevada the last two summers Service, where she is currently a grants and called upon to assist with planning location and will be working there again this summer agreements specialist. Jeff took a different access, and environmental and governmental in the underground division. direction upon graduation, and started his permitting. Recently, Montana Tech men’s team won own business in 1977, first in the logging When Jeff and Lynne’s children were the overall team trophy. The competition industry, then moving into the heavy con- young, they accompanied their folks on trips consisted of seven events: mucking, hand struction industry. The couple married in to the mining properties to do the annual steel, track laying, jack leg drilling, surveying, 1980, and in 1986, Jeff became a partner claim assessment work. Both children had and gold panning. with Dick Miller, a retired geologist from the the opportunity to learn gold panning at the Daughter Audrey is a freshman in Anaconda Copper Company, on a few min- Garnet ghost town near Drummond. Metallurgical and Materials Engineering. Her ing claims near Basin. Evidently, these early experiences left their love of chemistry and a desire to attend a Last year, Jeff’s company, Sholty mark! smaller, more focused program led her to Contracting, celebrated its 30th anniversary. The couple’s son Andy, the Mining Montana Tech. The fact that her older broth- One of the highlights of Jeff’s career is the Engineering student, started at the er was there (and had nothing but great

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28 Montana Mining 2008 things to say about the school) didn’t hurt, her degree, her experience as Miss Rodeo either. After one visit with the Dean, Montana, and her love for the Treasure State Courtney Young, she was hooked! to work for one of Montana’s mining com- This January, Audrey won the coveted panies. title of Miss Rodeo Montana in Great Falls Jeff and Lynne couldn’t be more proud of at the Miss Rodeo Montana pageant, held in their children and the paths they have cho- conjunction with the Montana Circuit Finals sen. The luster of Montana’s mineral her- ProRodeo. She has put school on hold for a itage of copper, gold and silver has bright- year to serve as Miss Rodeo Montana, and ened the path of yet another generation of travel throughout Montana this summer as Montanans.  an ambassador for the sport of rodeo. Audrey Although her primary emphasis will be on rodeo, she’ll also visit schools and other civic events to talk to people about agricul- ture and the importance of rural communi- ties. In October, Audrey will travel to Japan with a delegation from the Montana Department of Agriculture to promote Montana products, such as beef and Andy tourism. In December, she’ll represent Montana at the Miss Rodeo America pag- eant and hopes to become the first Miss Rodeo America from Montana! Even with all of the travel and excite- ment, Audrey is already looking forward to returning to school and diving into the met- allurgical program, hoping to someday put

Montana Mining Association www.montanamining.org 29 The Highland Centennial Nugget

Story told by Mark Stratton

The Highland Centennial Gold Nugget, weighing 27.5 troy ounces, was found by the Stratton family in 1989 while placer mining in the Highland Mountains. The nugget is believed to be the 7th largest gold nugget found in Montana. Its home is in the Mineral Museum on the campus of Montana Tech at the University of Montana.

or as long as I could remember, during the period of time grow- was pointing out. He would then go on with his story. “See that pile Fing up in the Highland Mountains south of Butte, my dad, of rock? That’s where Johnny Kern found the 64 ounce nugget!” I’m Howard Stratton, would take us kids for rides up to the mine. As sure there was more to the story that we never heard or remem- typical prospectors, the mine was a series of claims, both patented bered, but the main part stayed forever in our memories. and unpatented, that stretched for several miles. Every mine and site In the early 1980s, we set up our trammel washing plant and had a story. This was geology and history mixed together to make began to rework the gravels from the Cooley channel. Yes, this made the perfect education for future prospectors. at least the forth time someone tried to extract the last of the gold One memory that has stayed with me over the years is the story from that creek bottom. The gravel ran about $4 per cubic yard and of Johnny Kern. Johnny was a prospector of long ago that followed had a purity of .987. It wasn’t a big profit but it was steady. My dad not only the Cooley brothers, who had ground sluiced the Cooley liked the fact that we were mining, but insisted that we were throw- channel in a major operation in the late 1800s, but also the Chinese ing away the big gold. The trammel had 3/8 inch holes in it, and only who reworked the same channel to pick up the leftovers. It was nuggets smaller than that were recoverable in that machine - when never told to us if he was lucky or smart, but I suspect it was a lit- you open up the size of the holes, it increases the amount of water tle of both. The story was always told the same way. We would stop needed for the sluice boxes and you lose the fine gold. on the road next to the Cooley channel and dad would point out a I had the idea to mount a 12 yard dump box with a sluice pile of large gravel, making sure all of his children could see what he attached on the feed end, and use a hydraulic nozzle to regulate the

30 Montana Mining 2008 Howard Stratton flow into the trammel. As the gravel was would not work. They felt that the gold the Highland Mining District where we hosed from the box to the hopper, it was could not drop to the riffles under those were mining. Right from the start, our mod- about 24 inches of a deep muddy slur. It conditions. ification worked. We started to recover passed over three large riffles and then In spite of the naysayers, we were able to several nuggets larger than 3/8 inch. About went down the shoot. On more than one start it up in the summer of 1987. This just a month later, we started to pick up 5oz occasion, I was told by onlookers that it happened to be the 100th anniversary of and 10oz nuggets every night at clean up

Montana Mining Association www.montanamining.org 31 Howard (left) with son Mark. The nugget was the size of my fist, and it was obvious that it was larger than all of the others we had found.

time. The excitement got better every day, and we could not wait to shut off the water to see what was in the nugget trap. The day we found the Highland Centennial Nugget, I was there staring into the muddy water. As the gravel stopped, and the water cleared, I still could not see very clearly. But when the water stopped, it was completely visible. The nugget was the size of my fist, and it was obvious that it was larger than all of the others we had found. It was the only one there, and I could not wait to share it with my dad. I stopped him on the dozer he had been operating all day, and dropped it into his hand. A smile came across his face, and then he handed it back to me and said, “That’s more like it, let’s go get some more!” I guess that’s when I realized we had just finished pro- cessing the same pile where Johnny Kern found his nugget. 

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Main Office: 421 Sherman Ave, Coeur d’Alene, Idaho 83814 3650 Grant Creek Road Wallace Branch: Missoula Montana 59808 413 6th Street, Wallace, Idaho 208-752-1242 Phone: (406) 542-1400 Fax: (406) 542-0958 www.klshydraulics.com Online trading: www.penntrade.com Member FINRA/SIPC

32 Montana Mining 2008 HISTORICAL HISTORY OF THE MISSOULA CHAPTER, MONTANA MINING ASSOCIATION By Ted Antonioli Early history of the Missoula Chapter provided by Gene Nelson, with contributions by Bruce Cox

he Missoula Chapter of the Montana Mining Association (MMA) Without the hard work and efforts of the Montana Mining Tis a grass-roots mining club that meets monthly for mining and Association, matters could be much worse. Over years, we have seen geologic presentations – except during the summer, when we usually many bad ideas come up in the legislature that were eliminated by the sponsor a placer mining outing to some nearby diggings. The Missoula efforts of the state association – with whatever help we could give Chapter controls placer ground in McCormick Creek (Ninemile dis- from the Missoula Chapter – for example: sky high severance taxes; trict), which it makes available for hand panning by members. This legislation to make mine owners, including shareholders, personally chapter contributes annually to the MMA, weighs in on issues relating and criminally liable for reclamation; and bonding requirements that to mining (especially permits), and lobbies elected officials on behalf of would have led to a blacklisting by the bonding companies. mining interests. Our club is currently affiliated with the Montana The attitude of one faction of the legislature was summarized by Mining Association, the Northwest Mining Association, and the one widely-quoted representative who declared that, “she would Western Environmental Trade Association. We make speakers on min- sooner see a wreck on the freeway than view a mine.” ing and geology available to local schools and have given dozens of She did not, however, indicate how it would be that she would have talks. We have also long supported the Montana Tech scholarship fund. a car to drive down the freeway except for the mining of metals. The Missoula Chapter has been in continuous operation for more If mining was to survive and contribute to Montana’s economy, it than 30 years, ever since it was born out of necessity as part of the was clear that there needed to be an effective mining lobby. It was Western Montana Mining Association (which later became today’s largely some of the old-time, small miners – with help from mining Montana Mining Association) during the turbulent, anti-mining politi- suppliers and exploration groups – who tackled this challenge. The cal climate of the early 1970s. Southwest Montana Mining Association (Dillon) was used as a In those days, the legislature would not recognize the key role of springboard to create the Western Montana Mining Association. mining in Montana’s economy. The election of an anti-mining governor Horace Hand, of Goodall Assayers in Helena, was a focal point in in 1972 opened the door wide for anti-mining legislation to find its this effort. His brother, Bill Hand, had organized a small miners’ way onto the statute books. The legacy of that time is not only what lobby the previous year which had a major effect. They demon- is euphemistically called “the strongest environmental laws in the US,” strated that individuals who are known to legislators as one of their but also contributed to the decline of Montana (by the 1990s) to the constituents can be heard. very bottom of many measures of economic health, including wages. Other individuals who were key to the organizing efforts were

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Montana Mining Association www.montanamining.org 33 HB 545

MMA outing

(with apologies to those that may have been overlooked): Koehler tion. The Western Montana Mining Association’s first lobbyist was Stout, Montana School of Mines; Gene Nelson, Union Carbide Corp.; lawyer Bill Romaine, from Helena. George Port and Romaine started George Port, Caird Engineering; Harvey Fredricks, small miner; the legislative banquets. Don Lawson wrote a newsletter for many Leonard Lively, small miner; John Bell, lawyer; and Doris Rife, small years. Union Carbide was the first corporate contributor. After miner. A tireless worker who for years assisted the chapters was Don Horace Hand, Koehler Stout and Duane Reber were effective presi- Lawson of the Montana Bureau of Mines and Geology. dents of the state association. Some of the folks involved with the Together, these people conceived the concept that the association Missoula Chapter as officers have included (in addition to those should consist of local chapters that could, and would, lobby their already mentioned) Dominic Job, Anton Taborski, Bob Job, Harold personal legislators. Each chapter was to elect their representative to Hopper, Elmo Jones, Dick Kulawinski, Bruce Cox, and Ted Antonioli. the state association. (To Anaconda’s credit, they soon recognized the In the last decade or so, the Missoula Chapter has been involved in value of this concept and provided what support they could. several notable legislative efforts. After the passage of the cyanide However, Anaconda was having financial and organizational problems, ban, we hired Haley Beaudry to make our case in favor of bills by and so this support was largely moral). After many late-night drives Chuck Swysgood and Debbie Shea that would have rolled the ban back from organizational meetings, early chapters were established in back. Shea’s bill was tabled three times in Senate and House commit- Lewis and Clark, Beaverhead-Madison, Ravalli, Missoula, Mineral, Silver tees before finally reaching the House floor. There it was amended to Bow, Lincoln, Meagher, and Yellowstone. allow expansions at existing mines (banned in the original Initiative), The 1970s were years of relatively good metal prices. such as the expansions that have allowed the continued operation of Consequently, there were a number of new companies in the state the Golden Sunlight mine. Senators Shea and Swysgood were made that had exploration groups working in Montana. Major exploration honorary lifetime members of the Missoula Chapter in recognition of groups were Union Carbide Corp., International Minerals and their efforts on behalf of mining. Chemicals Corp., Utah International, AMAX, Exxon, Anaconda, and Twice, we have worked with a coalition of small placer operators Asarco. Most of these new companies had their offices in Missoula; to affect legislation. In 2001, a drastic bonding bill would have elimi- accordingly, Missoula became a base for exploration, attracting other nated the small miner exclusion and made un-bondable requirements professionals and support personnel. on the major mine operators. We helped pack the committee hear- The chapter concept was put to the test the next legislative ses- ing with small miners, and thus turned the tide toward amendments sion, when legislation was introduced that would have effectively that made the law more workable. In 2003, we worked with Missoula closed mining in the State of Montana. The new association stopped Representative Dick Haines to write and pass legislation to lower the it cold in committee, through the relationship of the Lincoln County fees on suction dredging to rates comparable to Idaho – a reduction chapter with the committee chairman. This was to the amazement of of 90%. Governor Martz signed HB 545 into law on April 23, 2003. several corporate lobbyists. In the past few years, our weekly meetings have included (among Those who founded the Western Montana Mining Association cre- many others) the following topics, with sincere apologies for inadver- ated a strong network of grass-roots chapters around the state, tent omissions: thereby ensuring that for every legislative district in Montana, there • A comprehensive report on exploration and mining in Montana was an individual who could contact legislators when a bill of interest during the preceding year, always presented by Robin McCulloch of was under consideration. Its creation was spurred on by the declin- the Montana Bureau of Mines and Geology during our annual ing effectiveness of the Anaconda Company lobby and the old Butte- December Christmas party and potluck based Mining Association. • A report on the geology of Cyprus by Charlie Goddard The first and long-time president of the Missoula Chapter was Joe • Gold Deposits of the Murray District of Idaho by New Jersey Waldbillig; Gene Nelson was our representative to the state associa- Mining Co. CEO Fred Brackebusch

34 Montana Mining 2008 • Everyday mining geology of the Stillwater Mine by Bruce Cox • Geology of the Virginia City district by Stillwater Palladium Bill Neal • Geology of the Browns Lake Tungsten makes more possible... district by Gene Nelson • Diamonds of Montana by Pete Ellsworth • Sapphires of Montana by Dick Berg • Ice age mammals by Ian Lange • The formation of Capital’s Idaho cobalt deposit by Joe Sheuering • A new interpretation of the geology of Yellowstone Park by Skip Yates • Mineral specimens from Brazil by Dave Waisman • Environmental geology of the Coeur d’ Alene district by Doug Parker • Ferricrete deposits by George Furniss • The Kennedy Creek Placers by Tom Gignoux • The Gem River Sapphire mine by Ted Antonioli • Small scale gold placer mining in South America by Mike Burnside • The Hydrology of the Milltown area by Bill Woessner • Glacial Lake Missoula by Norm Smyers • Copper deposits of the Brooks Range by Richard Sherry • The Troy Mine by Dirk Nelson • The Lucky Friday Mine by Tim Ruff • Gold Deposits of Borneo by Mark Pfau • Aurelian’s Gold Exploration in Ecuador Providing Employment Opportunities by Keith Barron • And, most recently, Sterling Mining’s Stillwater Mining has been providing employment opportunities in Montana for more than exploration projects in the copper-silver twenty years. We currently employ over 1,600 people in a variety of careers and offer a competitive wage, excellent health benefits, 401-K retirement plan, incentive bonuses belt of Western Montana by Jim Ebisch. and other benefits including transportation to mine sites.

In addition, we have heard from a variety Stillwater Mining Company also offers training programs that are a model for the industry. The of office holders, candidates, representa- foundation for the training programs is our “Guide, Educate and Train (GET) Safe” process. tives of mining and multiple use groups. Our experience over time leads us to We believe jobs at competitive wages and benefits along with the training programs believe that the chapter concept is a valu- contribute to quality workforce opportunities in Montana. able one, and one that might be revitalized as the current high prices in mineral com- modities translates into greater explo- ration and small scale mining activity in the future. We meet at 6:00 pm, every second Sunday of the month, October thru May, at the No.4 Fire Station on Latimer Street in Missoula. If you are interested in being on our email list, please make your request to www.stillwatermining.com l www.stillwaterpalladium.com Ted Antonioli, Chapter President, 406-251- 5148 or [email protected]. 

Montana Mining Association www.montanamining.org 35 Stillwater Mine

Stillwater Mining Company – Beyond Compliance A Proactive Approach to Environmental Excellence BP Media

ocated in the Beartooth Mountains of southeastern Montana, ing with an eye towards minimizing surface disturbance; and secu- Lthe Stillwater River Valley and Boulder River Valley are rity fencing to minimize human and animal entry. A number of renowned for their natural beauty, world class outdoor recreation, baseline environmental studies were completed as part of the per- and abundant wildlife. Life in the small communities here is a little mitting process, and all confirmed that wildlife, surface water, like living in paradise. Within this pristine setting are Stillwater archeological sites, and the air quality would not be impacted. After Mining Company’s two palladium-platinum mines. two years of the permitting process, and nearly seven months of The goal of Stillwater Mining Company (SMC) is to conserve and mining in very challenging ground conditions, the final breakout was protect our natural resources while achieving excellence in opera- impressive and more than met the expectations of SMC, the agen- tions and in social responsibility. An example of this commitment cies and the public. was in evidence at the Stillwater Mine during the environmental At the East Boulder Mine, two water management improvement permitting and subsequent ventilation break-out in the West Fork projects were successfully completed last year. These projects fur- Drainage of the Stillwater River. Environmental permitting of the ther demonstrated SMC’s commitment to environmental protec- breakout location began in late 2005, and involved both the tion by improving water treatment efficiencies and providing pro- Montana Department of Environmental Quality and the US Forest tection against unplanned water discharges and/or spills. Both Service. A joint decision was made by SMC and the agencies to improvement projects went well beyond compliance and focused locate the breakout on a patented mining claim within a talus slope. on “Best Management Practices” (BMPs) in order to advance state This challenging task caused SMC engineers to design the breakout of the art technologies and practices. from the surface backwards in order to minimize visual impacts The ANOX System treats water that has high nitrogen levels and any potential instability at the breakout surface. from explosives used underground. It is comprised of three con- Environmental mitigation, built into the design, consisted of a vis- crete cells filled with plastic artificial media (bug homes). ibility site assessment and visibility mitigation; grout placement to Microorganisms (bugs) attach to the artificial media that look like stabilize rock talus and prevent infiltration of surface water; under- a wheel, about the size of a dime. There are millions of these bug ground fan placement for noise reduction; a back slope to ensure homes in each cell. The bugs in the first two small cells feed on that no water discharged from the breakout; berming and site grad- ammonia and convert it to nitrate. The bugs in the larger cell feed

36 Montana Mining 2008 East Boulder Mine

Vent Break-out

Bug Cell

Bug Plant

on the nitrate and give off harmless nitrogen gas. Water leaving the ANOX System has very little nitrogen left, and is either recycled underground for mining purposes or sent to the Percolation Pond. During the initial year of operation (2007), the ANOX fluidized- bed nitrification reactor performed at 100% of the design efficien- cy and reduced the ammonia concentrations in treated mine water by an average of 96%, or on average less than a half a part per mil- lion. In addition, total nitrogen after treatment averaged 1.3 lbs/day during 2007, compared to the permit limit of 30 lbs/day. The Event Pond was constructed as a voluntary environmental protection measure to further protect water quality within the East Boulder Valley. The pond was designed to contain any unplanned release and reroute it through treatment or recycle it back into the production process. The Pond is lined with an imper- vious liner and is connected by drainage and pipeline to water management facilities within the mine site. If a spill occurs, the Event Pond allows East Boulder employees time to react in order to fix the problem before it can potentially impact surface or groundwater resources. These are just two recent examples of how pro-active environ- mental management, and the use of forward thinking initiatives and innovative technologies, have made Stillwater Mining Company a “good neighbor” and an environmental leader within the mining industry. 

Montana Mining Association www.montanamining.org 37 38 Montana Mining 2008 Montana Mining Association www.montanamining.org 39 Concentrates are shipped by rail to the smelter in Trail, B.C., Canada.

Drilling blast pattern

MontanaMontana Tunnels’Tunnels’ EconomicEconomic Impact...Impact... There’sThere’s moremore atat stakestake thanthan whatwhat meetsmeets thethe eyeeye

40 Montana Mining 2008 By Pierre LeMieux, Environmental Scientist, Montana Tunnels Mining, Inc. ver the past few months at Montana Tunnels, the subject mat- The media as a whole has generally reinforced the crazy idea Oter for gossip in the hallways, break rooms, around water that American consumption is driving the global economy. First and coolers and radio chatter in the pit has shifted from the usual top- foremost, the disclaimer must be made that at Montana Tunnels, we ics of sports, fishing, and American Idol winners to the price of gas, are miners, metallurgists, engineers, and accountants – certainly not the value of the dollar, and the economy in general. While it is evi- economists. However, as informed citizens (and armchair econo- dent that this occurrence is not isolated to Montana Tunnels, it is mists), it is becoming clearer that the declining value of the U.S. encouraging to know that as employees involved in the mining dollar is tied to an economy based on poor savings habits teamed industry, we have the right to say that we are doing our part to with irresponsible consumption and out of control household stimulate the U.S. economy. debt. Hopefully this statement is wrong, but by showing up late for

Montana Mining Association www.montanamining.org 41 Ore floatation recovery produces lead and zinc concentrates

the party, the Federal Reserve may now have us trapped between inflation and recession, and it looks like we’ll be dealing with the consequences of both. So what does any of this have to do with Montana Tunnels? Despite all the factors listed above, the scariest contributors to a potential eco- nomic crisis are the ever-increasing U.S. trade deficit and ever-declining U.S. production in the form of deindustrialization. While we certainly aren’t the biggest producer on the block, Montana Tunnels is an example of what is essentially right with the U.S. economy and we are happy to glean some ownership from that, but it’s time to get off Crushing ore the soapbox and on with the facts.

GARDAR G. DAHL JR. 179 Riverbend Road Superior, MT 59872

Tel: 406.822.0027 Fax: 406-822-0027 Email: [email protected]

42 Montana Mining 2008 Lead ingots. The finished product creates the Montana Tunnels’ ore concentrates are blended with raw materials for many U.S. products Blasting hard rock concentrates from all over the world

Through the Montana Export District tion in 1987, it has produced over 1.5 mil- • $30 million in purchases from approxi- Council, Montana Tunnels received the lion ounces of gold, 28 million ounces of mately 400 supporting businesses, of Governor’s Award for Exporter of the silver, 390 million pounds of lead and over which about 300 are Montana businesses Year for 2007 as zinc and lead concentrate 1 billion pounds of zinc. Once these prod- export sales were nearly $75 million dol- ucts are recovered at the smelter in Trail, • $9.8 million in wages and benefits which lars. The 2007 production results from British Columbia, Canada, they generally support over 200 Montana families Montana Tunnels were: make their way back to the U.S. for use in • Gold = 37,268 ounces manufacturing American-made products. • Approximately $2.5 million through • Silver = 658,582 ounces From a profits standpoint, $75 million payment of property and mining taxes • Lead = 6,081 tons dollars sounds like a pretty decent chunk • Zinc = 14,288 tons of change, but much of that is infused back into the state and local economy every In fact, since the mine entered produc- year in the following forms:

Black Butte Iron Mine. Montana Mining Association www.montanamining.org 43 Metals and byproducts are extracted Lead and zinc concentrates are trucked from the concentrates via a large and to a railroad loadout facility complex smelting process

Loading ore

• $4.4 million directed toward the Montana Tunnel’s reclamation bond to ensure that more than adequate funding will be in place to properly reclaim the mine during mine closure

As outdoorsmen and women in Montana, we realize that we have a responsibility to the environment. As mining and envi- ronmental professionals, we hope that regulatory and govern- ment agencies continue to allow us to utilize our natural resources in an environmentally responsible manner. Unfortunately, it’s getting to the point where extreme envi- ronmentalists are strong-arming mining in Montana through the threat of litigation, and also continuing to paint a negative image of the industry based on historic practices or the mistakes of a small minority. This forces more and more production to come from beyond our borders, where resource development is encouraged and welcomed in terms of positive economic Pouring gold/silver dore recovered from gravity circuits progress. The cumulative effect causes a steady downtrend in

44 Montana Mining 2008 Zinc alloys and ingots. Zinc is used in a broad spectrum of manufactured goods

Grinding ore

U.S. production, which ultimately leaves us depending more on for- eign countries for imports and effectively shifts wealth away from the U.S. economy. The reality is that as global population increases on the order of 200,000 people per day (net), and as emerging economies such as Brazil, Russia, India, and China continue to support more affluent societies – which, in turn, require the use of more industrial min- Concurrent reclamation is an important erals – the demand for minerals will steadily outpace supply. component of the active mining opertation Linked to the consumer driven economy is the problem that consumers seem to have forgotten the origin of the modern con- veniences they use on a daily basis. As miners, our responsibility is to re-educate (or remind) the populous that mining is necessary to produce many of the world’s goods. A good place to start is to show that the work people see when they look at a mine is, in fact, more than just muck in a haul truck, EVERY VOLVO IS BUILT AROUND ONE IDEA. but rather the means with which to support the average person’s way of life. Zinc, for instance, is essential to modern society. It is used for the manufacturing of precision components, as a construction material, for the production of brass and rubber, in pharmaceutical YOU. and cosmetic products, and in fertilizers and food supplements.

Zinc used for anti-corrosion coating on steel essentially saves nat- To build the world’s most durable, most productive ural resources by significantly prolonging the life of steel goods construction equipment, we start with you. We find out what it takes for you to do your job faster and such as homes, cars, bridges, power lines, water distribution sys- more economically. Then we build it in to every one of tems, public transportation, and so forth. our machines. That’s why your cab is more It’s also important to illustrate that, as mining professionals, we comfortable. Your engine does more on less fuel. There’s more uptime between maintenance – and have no interest in being the “bad guy,” and that we are working servicing is made easier too. We believe that if we hard to develop our resources in an environmentally responsible take more care of you, you’ll be more able to take care of your job. It’s an idea we call more care, built in. manner. More care. Built in. While this is an abbreviated version of the A to Z metals recov- Put a Volvo to the test – find your dealer below or at www.volvoce.com ery process involved for Montana Tunnels products, it is hoped that the photos included provide insight into what comes out of the YOUR TRI-STATE TRUCK & EQUIPMENT LOCATIONS ARE: Billings, MT 59101 Great Falls, MT 59404 Casper, WY 82602 earth at Montana Tunnels, and how it ends up in our hands each and 5250 Midland Road 5024 Tri-Hil Frontage Road P.O. Box 340, 1271 North Derrick Drive Phone: (406) 245-3188 Phone: (406) 452-9551 every day of our lives. Phone: (307) 472-1818 Fax: (406) 238-1501 Fax: (406) 452-9831  Fax: (307) 472-3272

Montana Mining Association www.montanamining.org 45 ROCROC L8-30L8-30 isis ExceedingExceeding ExpectationExpectation By Scott Ellenbecker, Editor-in-Chief of Mining & Construction USA Inset: Robert Adams (left), President of GTI and Jason Blais, Atlas Copco area sales manager, move off to have a one-on-one conversation about the drill’s performance. Adams is happy with the productivity of the new drill and knows it will only get better after the operator gets comfortable with the controls.

The holes on this marrow bench are 80-ft deep. The DTH hammer is a COP 54 Gold Express with a 5½ inch carbide bit. The production is on a 14-ft spacing. The drill is using 20 ft steel.

eological Technologies, Inc. (GTI), of Falling Waters, WV, recently The operator says the ROC L8-30 is the finest drill he has ever Gpurchased a new ROC L8-30, the first for this new type drill in operated, citing the rod changer’s smoothness and configuration of the United States. GTI is not new to Atlas Copco, as the company the breakout jaws. He says the automation has taken the guesswork owns fifteen drills, including ROC D7 and ROC F9 rigs. GTI is a out of changing and adding rods for increased productivity. He also drilling and blasting contractor that operates in a large area in the likes the increased air capability and is running about 427 psi (29 bar), mid-Atlantic area of the United States. but can push that to 435 psi (30 bar) if necessary. GTI is owned and operated by two men who have spent their pro- Another appreciated feature is the dust collection system, which fessional lives in the drilling and blasting industry. Robert Adams and places the material away from the drilling area so nothing slides back Benny Mitchell are hands-on owners. As Mitchell puts it, “There are in the hole. He likes that the dust suppression water mist knob is leaders and there are managers.” He describes a manager as being a positioned at his fingertips in the cab for easy adjustment. The posi- person who will tell you what to do, and at the end of the day say, ‘see tioning of the controls and monitoring on this rig are easy to see, what I’ve done.’ But a leader will get in there with you and show you pointing out that the diagnostic computer, rear camera monitor, and how to do something so you can do it yourself next time. These gen- joystick controls are all perfectly positioned. According to the opera- tlemen are using the “leader” philosophy to grow the business. tor, “This rig was designed to keep me working comfortably.” Mitchell goes on to say, “Anyone can say they have a team, but we practice it.” Mitchell and Adams empower their people to do the Abrasive Drilling work by training them properly and giving them leadership. With The geology in GTI’s region varies to include very hard, abrasive close to 80 employees currently working, GTI has an aggressive basalt with a compressive hardness of 190 lb per cubic ft, to 160 lb growth plan and a well-rounded business structure. per cubic ft limestone, to shale in the Blue Ridge near Summit, PA. This Mitchell points out that GTI’s business agreement with Atlas quarry near Mt. Hope, WV, consists of hard and abrasive sandstone. Copco is more than a traditional customer/vendor relationship. “Atlas When looking at the hammer to do the work in this area, they Copco and GTI are both customer-service-first type businesses,” says chose the COP 54 because of its durability for this formation. Mitchell. “If we all have the same goal of taking care of each other, it’s a win-win situation for us all and business will grow.” Because of the high silica in this rock, the operator thinks the hard- ened steel on the COP Gold holds up better. They are getting 35,000 Growing the Business to 40,000 ft on a hammer in these conditions and will put another When looking for a rig that was capable of drilling 5½ inch holes to 20,000 ft on the hammers working in the limestone quarries. a depth of 180 feet to support their quarry operations – yet could With the current productivity level and efficiency of the ROC L8- work in tight situations, plus be transportable if necessary – the ROC 30, it is expected that GTI will have no problem getting the required L8-30 fit all the requirements, Adams says. two million tons of material out of this quarry this year. Ralph Bidle, who oversees quarry operations, says, “The drill is very Adams sums it up saying he welcomes the changes and automation sound and has good production.” He continues by focusing on the air of the ROC L8-30. He doesn’t fear technology, but rather embraces package, stating it does a good job cleaning the holes in difficult for- it, saying, “I will go with the best technology out there if it keeps the mations and the COP 54 Gold Express down-the-hole hammer pro- hole straight and offers greater production. Speed, reliability and safe- duces straight holes for better blasting. Bidle also likes how open the ty all add up to productivity and that makes my business successful.” service area of the drill is for maintenance.

46 Montana Mining 2008 Lower Cost Land Mineral Surveys

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www.geometrics.com 1-408-954-0522 Golden Sunlight Mine – Winding Down, or Not?

Deer stand on the dump

GSM West Dump reclamation

f you ask the long-time employees of the the waste rock dumps and apply the soil allow the community to have ownership in IGolden Sunlight Mine (GSM), located in that will soon be thick with grasses and the projects once the mine is closed. Work Jefferson County in southwestern Montana, native flowers. About 1,100 acres of the continues on the development of a business when the mine is going to close, they will 2,236 acres of disturbance have been park which will be located in agricultural shrug their shoulders and mention they reclaimed so far, with at least another 132 fields on the mine site adjacent to I-90 as have been waiting for reassignment or to acres slated for reclamation during 2008. well as within the remaining mine buildings retire for nearly 10 years. And the mine just GSM is working with the agencies on some “up the hill” when the mine is closed. keeps going. That’s good for the employees new and innovative slope shaping tech- Wind studies have been conducted for and the community. niques to mimic surrounding undisturbed several years in anticipation of developing But all good things must come to end. slopes. renewable energy and employment for the Mining of the Stage 5B open pit was com- In keeping with its history, GSM contin- area. GSM has purchased nearly 4,700 non- pleted in January of this year, while mining ues to test a variety of other innovations mine acres in the area, which is currently and processing of the Phase 2 underground including water treatment and reclamation leased to local ranchers and utilized by the mine and processing of low grade stockpiles techniques that will keep the mine from public for outdoor recreation. There are will continue through 2008. actively treating water in perpetuity. also 4,400 mine acres which provide open As the ore reserves decline, the mine Bioreactors, in-situ treatments, passivation space and are utilized by wildlife. looks towards closure – or, perhaps not; the of highwalls, and other alternative measures Over the years, GSM has participated in DEQ and BLM have approved an expanded have been tested with the hopes of large- numerous community improvement proj- mining plan to increase the mine life by six scale implementation in the future. ects; the most recent of which include Pool years in order to extract about 500,000 The mine, which has been in operation Pals, a group raising funds for an outdoor ounces of gold, much of which was original- since 1982, has been a mainstay of the local pool in Whitehall, as well as the second ly proposed in the Stage 5B pit, but not economy. GSM’s sustainability policy is annual Community Safety Fair held the end mined out. The Stage 5B Optimization proj- designed to develop a legacy of employment of April, with great community involvement ect feasibility is being reviewed by GSM’s and environmental stewardship; mine staff and participation. parent corporation, Barrick Gold, and a works with the local community through Part of GSM’s success revolves around decision is expected sometime in May. In the the Community Transition Advisory strong safety leadership. The mine imple- meantime, closure planning continues, and Committee (CTAC) group to ensure com- ments strict standards and risk assessment the open pit crews reshape the slopes of munity concerns are addressed, and to methods that apply not only to their

48 Montana Mining 2008 Re-slope employees, but also to all their contractors as well. Before even the simplest task is performed at the mine, employees and contractors assess the dangers the task may pose and work to find safe solutions to any identified concerns. Barrick’s motto, “Every Person Going Home Safe and Healthy Every Day,” is paying off. This proactive approach to safety has led to zero injuries this year. Two GSM employees were recently awarded Barrick’s Safety Champion award this year, for innovative thinking and solutions to safety issues that affect not only the mine site, but the community too. Whether the mine closes or its life is extended for another six years, the site will remain a place of com- merce and a testimony to safety, reclamation success, innovative techniques and management of environ- Schematic of Business Park mental risks. The commu- nity will benefit from the site long after closure, with continued employ- ment and recreational opportunities. It is GSM’s goal to sustain the benefits of their mining activities long after they are finished producing gold.  Top of the West Dump after reclamation

Montana Mining Association www.montanamining.org 49 Rio Tinto Minerals employs 175 people who operate a talc mine and two milling and packaging facilities in Montana. Yellowstone Operations – the company’s primary North American talc mine – is located 20 miles south of Ennis in southern Madison County. From this mine, a total of about 300,000 tons of crude ores are supplied to Three Forks and Sappington operations, both located in western Gallatin County. The talc ores are pulverized and packaged at these mills and then shipped to customers in the United States, Canada, Mexico, South America, Indonesia and Europe, serving the paper, rubber, paint, polymers, agriculture and ceramics markets.

he operations have been a subsidiary of Rio Tinto for the last 15 Tyears, operating under the banner of the Luzenac talc group from 1992 to 2006. Luzenac joined forces with two sister companies – Borax and Dampier – to form Rio Tinto Minerals in 2006. Today, Rio Tinto Minerals is acknowledged as a world leader in industrial min- erals supply and science.

About our operations The mine at Yellowstone Operations is a world-class ore deposit with reserves extending at least 30 years. It began as an underground mine in the 1940s, and produced “lava talc” that was used as an insulator in radar sets for the war effort. Rio Tinto Minerals mines as much as three million tons per year to produce 300,000 tons of eight differ- ent grades of talc ore. Ore is sorted on site using two patented sort- ing processes – the only ones of their kind in the world. Sorting is used to remove dolomite and upgrade the talc content of the crude ore to levels as high as 99.5%. The sorting process is based on the coefficient of friction and does not use water, chemicals or reagents. Ores are shipped to mills in Montana, Houston, Belgium, Japan and Mexico for grinding and packaging. The mill at Three Forks Operations was built in 1961, and process- es about 160,000 tons of talc per year used in a wide variety of prod- ucts. It uses three grinding technologies – roller mills, air classifier mills and jet mills – to make coarse-, medium- and fine-grind prod- ucts, respectively. Three Forks also has three coating processes used to make a variety of value-added products by coating the talc with compounds that enhance the physical properties to meet specific customer needs. The mill at Sappington Operations was built in 1986. It now processes about 130,000 tons of talc per year to make products for RioRio TintoTinto a narrower segment of our customer base, which is heavily weighted towards the paper market. Sappington has a series of air classifier mills and a slurry make-down process to produce talcs for the paper, MineralsMinerals –– polymers and coatings markets. Rio Tinto Minerals also operates a Pilot Plant at Sappington for process and product research and devel- opment. Product R&D is also conducted at the company’s global headquarters in Denver. MontanaMontana OperationsOperatoins Rio Tinto Minerals was the first industrial manufacturer in Montana to have its quality management systems certified to ISO 9000 stan- dards. Beyond supplying high quality talcs to customers worldwide,

50 Montana Mining 2008 the company’s Montana operations contribute to the local commu- nity through US$15 million in payroll, US$1.3 million in local taxes, and support for a wide range of programs that contribute to com- munity sustainability.

About our products Talc is hydrated magnesium silicate that has a layered structure and is the softest mineral in the world. The layers are held together by rel- trade name for talc used in pitch control applications. The fine parti- atively weak molecular bonds that are easily broken with slight indi- cles of talc surround the tiny droplets of pitch, and keep them from rect pressure. When these bonds are broken, the layers slip apart, giv- collecting together and sticking on machinery during processing, and ing the mineral a slippery feel. While many people associate talc with allow “stickies” to be hidden in the final paper product. body powder, this is only one of its many uses; talc is an value-adding For paints and coatings, we “engineer” talc in a variety of grinds to ingredient in a wide range of products including paper, paints, plastics, give properties such as flatting, gloss, sheen, durability, hide, wash-abil- ceramics, rubber, personal care products and roofing. ity, viscosity and resistance to color fade (especially for exterior Rio Tinto Minerals also produces the talc used to make Johnson & paints). Talc is used in more than 225 million gallons of paint each year. Johnson baby powder. The company “heat treats” these products – exposing them to high temperatures to sterilize the talc – so it can About our organization be used for baby powder, as well as other personal care and phar- Rio Tinto Minerals supplies nearly half the world’s demand for refined maceutical products. borates, 25 percent of the world’s demand for talc, and is the world’s Talc is also used in several steps during the manufacture of paper. largest exporter of salt. The organization employs 3,000 people on A good portion of the talc Rio Tinto Minerals’ mines, grinds and pack- five continents to serve more than 2,500 customers worldwide. Rio ages in Montana is used to make paper. When wood fiber is convert- Tinto Minerals is acknowledged as the world leader in product qual- ed to pulp, pitch – also know as sap or “stickies” – is released. ity, supply reliability and technical support – services that create value The amber colored fluid in the photo (left, above) shows pitch for its customers and differentiate the organization in the market- contained in the wood fiber. The second photo shows one droplet of place – and is an industry leader in continuously improving how its pitch that has been covered by tiny particles of Mistron Vapor®, the products and practices contribute to sustainable development. 

Montana Mining Association www.montanamining.org 51 The Center for Advanced Mineral and Metallurgical Processing

he Center for Advanced Mineral and CAMP’s capabilities and applications for CAMP’s Mission Statement TMetallurgical Processing (CAMP) is provision of analysis, testing, research, declares: The Center for Advanced located in the Department of Metallurgical design, consulting, fabrication and feasibility Mineral and Metallurgical Processing and Materials Engineering at Montana Tech, studies include: will facilitate cooperation between The University of Montana in Butte, • Mineral Processing & Hydrometallurgical the university system and industry to Montana. It is a process engineering con- Applications o Precious Metal Recovery & enhance the economy of the State of sulting, research, analysis and testing facility Refining Technologies • Nickel/Cobalt Appli- Montana by supporting, developing conducting applied projects with industrial cations & Technologies • Arsenic/Antimony and adding value to the global clients throughout the world. The Center Applications & Technologies • Pressure mineral, metallurgical, and materials was started in 1989, as a State of Montana Leaching Applications • Copper Leaching, industry. Economic enhancement Center of Excellence with a loan from the SX, EW Applications & Technologies • Pro- may be encouraged through added Coal Severance Tax Fund. It is now a finan- cess Simulation and Modeling • Pyrome- value processing of minerals, cially self-supporting center with projects in tallurgical Applications • Energy Minerals • materials, and wastes while mining, minerals, metals, chemicals, tradi- Rapid Prototyping and Fabrication Tech- developing processes that minimize tional and alternative energies, materials, nologies • Fuel Cell and Alternative Energy waste generation. analysis, and environmental matters on Development and Applications • X-Ray every inhabited continent on the globe. Diffraction/Scanning Electron Microscopy

Suite 300, 6 Roslyn Road, Winnipeg, Manitoba, R3L 0G5 Toll Free:1.866.831.4744 | Toll Free Fax: 1.866.711.5282 www.delcommunications.com DEL Communications Inc. has in excess of 100 years combined experience working for you, we offer outstanding personal service and quality in the areas of... CREATIVE DESIGN • ADVERTISING SALES TRADE PUBLICATIONS • QUALIFIED SALES & EDITORIAL TEAM

52 Montana Mining 2008 Clockwise from top: MLA system; sample analysis of gold grain locked in silica; R2 free form fabrication equipment; powdered stainless steel test pattern.

• Resource Recovery • Wastewater Reme- Chairman Greg diation • Fire Assay • Materials Science and Roset, Smelter Analysis • MLA Automated Mineralogy • X Manager of Stillwater Mining Company, to For further information, please contact: Ray Fluorescence Analysis • Inductively review programs and progress. The Center for Advanced Mineral and Coupled Plasma Analysis CAMP’s current employees include Dr. Metallurgical Processing CAMP has the only state-of-the-art Paul Miranda, Process Engineer; Mr. Jay Phone: (406) 496-4794 Mineral Liberation Analyzer research capa- McCloskey, Senior Project Engineer; Ms. Fax: (406) 496-4512 bility in the United States. Shown above on DaNette Rule, Executive Assistant; and Dr. Visit the web site at: www.mtech.edu/CAMP the left is the MLA system and on the right Corby Anderson, Director.
is an example analysis of a gold grain locked in silica. CAMP has state of the art facilities for rapid prototyping and additive manufactur- ing. Shown above on the left is the R2 free form fabrication equipment. On the right is a sample of a powdered stainless steel test pattern formed with the R2 equipment and a 3D AutoCAD drawing design. While CAMP is part of the Montana 33 S.Last Chance Gulch University system, it is also set up with a P.O. Box 1715 Helena, Montana 59624-1715 board comprised of representatives from Tel. 406 442-8560 Stillwater Mining Company, Barrick Gold Fax 406 442-8783 Golden Sunlight Mine, Silicon Gas email: [email protected] Engineering, Kennametal Corporation, website: www.gsjw.com Copper Environmental Consulting, The Montana Bureau of Mines and Geology, Behre Dolbear, Interactive Technology Serving Montana’s Natural Resource Industries Group, The Governor of Montana’s Office, and several Montana Tech and U of Montana Since 1879 Faculty. The CAMP Board meets at least twice a year under the direction of

Montana Mining Association www.montanamining.org 53 REVETT’S POSITIVE IMPACTS ON LOCAL ECONOMIES CONTINUES

or Bill Orchow, some of the best days as FPresident and CEO of Revett Minerals are those when he’s sharing coffee and stories with employ- ees in communities where the economic impact of his company is obvious.“To go to places like Troy and Libby, Montana, and see first-hand how our business has contributed to the local economy; that speaks more than a thousand financial statements or computer spreadsheets ever can,” Orchow says. “We can look at these communities and say, ‘we’ve made a difference here.’ That’s a great feeling.” Revett’s presence in northwestern Montana has truly had a major economic impact, particularly in towns like Troy. With mineral prices on the rise, Revett predict- ing a longer-than-anticipated life span of its Troy mine, and the proposed Rock Creek mine moving forward, Orchow expects even greater results for the future. “Our company is strong, we had a good year in 2007, and residents of northwestern Montana are going to be the ones who really benefit,” he says. “The Troy mine continues to produce product, we’ve maintained a solid, well-paid workforce, and we’re finally getting out from under the legal red tape that has prevented us from moving forward with the Rock Creek mine.” The Troy mine, which is operated by Genesis, Inc., a subsidiary of Revett Silver Company, is an under- ground silver and copper mine in Lincoln County that employs about 180 workers. Last year, the company discovered new reserves in the mine that contain higher grades of silver and copper than the overall life of mine average grade estimates. This new discovery contained in the “C-Bed,” combined with the benefit of higher metal prices, has essen- tially extended the life of the mine to 2015, far beyond original projections. The increase in metal prices has allowed the mine to process lower-grade ores that were not economical to process in the past. Doug Miller, general manager at the Troy mine, says workers will continue to explore the general mine area to see if there is even more undiscovered material that could increase reserves even further. All this is great news for Revett, its workers and the area community. “These finds are significant because they mean continued work for our employees,” Miller says. “We have great employees and they are the reason for our successes at Troy.”

54 Montana Mining 2008 Coldwell credits part of Booze N’ Bait’s substantial sales growth to Revett Minerals

Aerial of Troy Mine

Montana Mining Association www.montanamining.org 55 Town of Troy, Montana

And in an area of the state where high-paying jobs are scarce, Revett is already looking at how it may use the Troy site once the wages Revett pays workers make the jobs quite competitive. mining does cease. Currently, the company is working with In 2007, the average annual wage for a Troy mine worker was researchers into making building blocks with materials left over $46,200. With benefits, the annual wage was $61,350. from the mine operation. Those are wages that workers turn around and pump back into “A mine is a finite resource,” Orchow says. “But how we can use the local economy, something that has not gone unnoticed around the facility to make use of the whole resource once the mining town. actually ends, is something we are very interested in exploring. Darren Coldwell, owner of the “Booze ‘N Bait” store in Troy, While we’re still in the early stages of this research, so far it seems credits Revett’s operations with helping turn economic conditions to be a promising venture.” around in Troy. Revett executives hope the success and economic impact of the “They have literally brought this community back to life,” he Troy mine can be mirrored at the company’s proposed Rock says. “You can talk with the people at the bowling alley; their Creek mine near Noxon, in Sanders County. The U.S. Forest leagues are full again, and people are walking downtown on Service notified Revett that the company can finally commence Saturday nights! It has also made a big difference for all the busi- work at the Rock Creek site as soon as all conditions are met, as ness owners in town. I think the mine has been nothing but posi- defined in the Record of Decision issued five years ago. Ongoing tive for the town of Troy.” litigation is expected to be completed by mid 2008 that will allow With the addition of more than $950,000 in property taxes and Revett to finally begin moving forward on the ground. The compa- metals mine taxes that Revett paid in 2007 at the Troy mine alone, ny plans to drive an evaluation adit into the ore body beginning the company’s economic impact becomes even clearer. this year. This phase is expected to take 18 to 24 months. The Revenue from the Troy mine totaled about $39 million last year, objective is to gather additional data to produce a revised techni- an increase of 24 percent from 2006. The mine generated pre-tax cal and economic feasibility study of the mine. net income of $8 million. Revett’s copper and silver mine is expected to employ 300 peo- Revett’s commitment goes beyond contributing to the econo- ple, and Revett has estimated it would pour an additional $30 mil- my. The company has been spending a lot of time and attention on lion into the local economy annually, for a 30-year period. its commitment to preserve key grizzly bear habitat. The compa- “This mine will be a tremendous economic benefit for the ny funds the salary of a grizzly bear management specialist with Noxon, Thompson Falls, Troy, Libby and other local community the state Department of Fish, Wildlife and Parks and is spending in areas,” Orchow says. “These are going to be more high-paying jobs excess of $20 million to improve grizzly bear habitat and enhance which are going to bring a lot of revenue to the Libby area.” state and federal wildlife experts’ ability to reduce human-grizzly Orchow and Carson Rife, Revett’s Vice President of Operations, conflicts. spent part of March and April in northwestern Montana, visiting Kim Annis, a grizzly bear specialist for the state wildlife agency, with residents of a number of towns to update them on the com- praised Revett’s work on grizzly habitat. pany’s operations. “This area isn’t just for people and it isn’t just for wildlife. It’s for For Orchow, it was also a chance to encourage curious resi- everything,” Annis says. “That’s why it’s important for companies dents to schedule a tour of the Troy mine. to protect the land and the habitat. Revett has made this commit- “We love to show people what we do,” he says. “We’re very ment. Buying land for grizzlies and investing significant resources proud of our operations at Troy, and a lot of people don’t realize into education about bears will maintain the integrity of this area, just how little environmental impact there is until they come on and I’m excited to be a part of that.” up and take a tour.” 

56 Montana Mining 2008 REV_G7X95_KIMad8.indd 1 4/22/08 3:45:29 PM MINES MANAGEMENT

FREEDOM OF RESOURCES By Douglas D. Dobbs

Eagel – symbol of freedom – Libby, Montana

Economy ed in increased vulnerability in the supply of natural resources to sud- The history of commodities prices has historically been a reflection den shifts in demand. of the market’s reaction to economic cycles. The current bull market The current bull market is a natural reaction to the forces that in commodities is no exception. brought about the decline in mineral development in both the U.S. The declining commodities market in the 1990s ultimately was a and abroad, and is at a time when global demand, boosted by strong reaction to the oversupply resulting from the bull market of the growth from China, has been rising. 1970s and 1980s. The supply of minerals became more than adequate The problem is that at the same time that supply is struggling to to meet global demand, and so prices declined over a prolonged peri- catch up to demand, U.S. economic stimulus policies are pushing the od of time. dollar down, resulting in even higher domestic mineral prices. With The tables at the top of page 59 illustrate the price performance significantly more money in the economic system, price inflation is of several commodities during the period. rising, and is expected to rise for the foreseeable future. Global Exacerbated by a maturing ‘greening’ movement that significantly demand remains robust, and if U.S. policy makers, Fed Chairman increased regulation, and the resulting bureaucracy, by the end of the Bernanke and Treasury Secretary Paulsen, are successful at stimulat- millennium, the heightened risk to developing mineral projects result- ing the economy by adding even more money, demand can only grow,

58 Montana Mining 2008 COMMODITY PRICE CHANGE ('88 - 2008)

Commodity 1988 2000 Change 2008 Chg '00-'08 Gold $436.98 $279.11 -36% $917.00 229% Silver $7.34 $5.05 -31% $17.42 245% Copper $1.01 $0.85 -16% $3.91 360% Wheat $379.15 $281.16 -26% $859.00 206% Sugar $9.94 $7.85 -21% $12.59 60% Coffee $133.58 $95.99 -28% $133.60 39% putting additional pressure on supply and An obvious example of this is the current Without it, we can continue to expect prices. oil market. As NGOs and environmental higher prices, fewer jobs, and more reliance groups have continued to exert pressure on on other countries. Policy our government to inhibit domestic devel- Regulators need to take a hard look at the opment, prices have been driven higher due Freedom direction of public policy as it relates to to reduced supply and greater control It’s all about freedom – nationally as well as resource development in our country. imposed by the Middle East. locally. In a time of economic instability, interna- If it’s about the environment, the United On a national level, when resources are tional competitiveness, and uncertainty States has the most comprehensive laws in developed domestically, at the prices we about our national security, to continue to the world protecting the environment and need, we reduce our reliance on foreign ‘outsource’ our natural resource produc- promoting safety. ‘agents’ to supply what we need at exorbi- tion to other countries is an invitation to Companies need the ability to operate tant prices. continued erosion in national sovereignty, within that framework with a public and On a local level, it creates jobs, especially and puts the people of the United States in government more supportive of mineral in rural areas where economic opportunity harm’s way. development. and flexibility is limited. There are many ben-

Montana Mining Association www.montanamining.org 59 MINES MANAGEMENT

efits to healthy local communities. Fewer people are forced to move away from a Field representative collecting community that is economically healthy. hydrological information Populations grow. Crime rates decline. Fewer government subsidies and entitle- ment programs are required to maintain stability in the community, and this is posi- tive for public budgets and reduces the pressure to increase taxes.

The Montanore Project Mines Management, Inc. is currently working to develop the Montanore Silver Copper Project.

Underground activities, Montanore Project

DRILLING PRODUCTS SPECIALISTS 845 S. Montana Street, Butte, Montana 59701 Fax: 406.782.9605 Tel: 406.782.9604

60 Montana Mining 2008 Northwestern Montana is drill program to gain additional one of those regions dependent detail about the mineral deposit upon extractive industries; for- that contains a large silver and est products and mineral pro- copper re source. Data from the duction have become victims of drill program would support excessive regulation and the completion of a feasibility study imposition of policies promot- necessary to obtain financing to ed by environmental special develop the project, estimated interest groups. at more than $400 million. With the highest unemploy- In the absence of further ment rate in the State of bureaucratic delays, the drill Montana, and triple the average, program is expected to take ap- Lincoln County has been faith- proximately 24 months. ful in its support of economic Additionally, Mines Manage- development within its region, ment is engaged in the challeng- but many wonder why it is so Baseball field in Libby, Montana ing and bureaucratic process of difficult to develop projects. updating permits which date At a recent community grow up in Libby wouldn’t have to move back to 1993. The conclusion of meeting, one lady posed the question, away from home to find jobs. the re-permitting process is expected by “Why are special interest groups from The Montanore Project, when success- mid-2009, only 14 months from the date outside the region - notably from fully developed, will provide more than of this report. Hollywood, New York, and other urban 300 new permanent jobs, 500 during the Management of the Montanore Project areas – so successful at stifling growth?” construction phase, in addition to the looks forward, with successful develop- In a recent meeting with the Governor other business opportunities generated ment, to contributing to the economic of the State, a high school student read within the community. health and vitality of a region blessed with from a letter, written by her sophomore Currently, Mines Management expects environmental beauty, where people enjoy class, appealing for support of develop- to commence operations on a $40 million living and raising families. ment of the project so that children who underground evaluation and delineation

John D. Dolan, Vice President Specializing in Oil & Gas Lending P.O. Box 40, Casper, WY 82602 307-235-4362, [email protected]

Across Montana and Wyoming. It’s our home too.TM www.firstinterstate.com Member FDIC. Equal Housing Lender.

Ernest K. Lehmann & Associates of Montana, Inc. Mineral exploration Deposit development Consulting to the mineral industry

Contact Ernest Lehmann at: JHRPLQH#DWWQHW‡

Montana Mining Association www.montanamining.org 61 Graymont Western’s Indian Creek Plant

62 Montana Mining 2008 raymont is a family-owned company whose man- Gagement team and employees are dedicated to meeting or exceeding customer needs. The company focuses on the production of high calcium lime; dolomitic lime; value added lime-based products, such as specialty hydrates and precipitated calcium carbon- ates; and the aggregate and pulverized stone business. In North America, Graymont is the third largest pro- ducer of lime. In the United States, subsidiary compa- nies operate in Montana, Ohio, Pennsylvania, Washington, Oregon, Utah and Nevada, while serving markets in a much wider geographic area. In Canada, Graymont subsidiaries have operations from New Brunswick to British Columbia. In addition to Graymont’s lime interests, Graymont Materials (located in upstate New York and the province of Quebec) pro- vides construction stone, sand and gravel, asphalt products and ready million tons, and will continue to add new capacity to meet market mix concrete. demand. Having been in the lime business for over 50 years, Graymont Central to the company’s corporate philosophy is a long-term operates facilities on sites that have been in operation for up to 200 approach to business, built upon a solid commitment to sustainable years. The company is among the leaders in the industry in adding growth through the active participation in responsible environmen- new, efficient plants and equipment and operates some of the most tal, workplace, and operating practices. At the same time, it is proud modern facilities on the continent. Since 1989, Graymont has added of its past accomplishments which demonstrate Graymont’s com- new, state-of-the-art processing, increasing capacity by close to two mitment to responsible conduct of the business.

Serving the Mining Industry for over 50 Years in the USA & Canada.

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

Montana Mining Association www.montanamining.org 63 In Montana, the Indian Creek plant is from a 1,500 ton terminal located on the • Flue Gas Desulphurization located near Townsend, just north of the Montana Rail Link line in Townsend. • Food Limestone Hills. Here, lime is produced in Graymont continues to be of significant • Glass two coal/coke-fired preheater kilns. The economic importance to the county, as it is • Mining plant is equipped with lime-sizing and stor- the largest taxpayer in the county. In addi- • Precipitated Calcium Carbonate (PCC) age facilities, allowing Graymont to produce tion to providing many well paying jobs, • Pulp and Paper and store a full range of bulk quicklime Graymont purchases many goods and serv- • Soda Ash products, as well as a hydrator capable of ices locally, within the community. • Soil Stabilization producing 300 tons of hydrated lime per Many important lime markets are serv- • Steel day. This plant supplies customers in iced by Graymont: • Sugar Montana, as well as several other western • Agriculture • Water Treatment states. • Asphalt The quarry is located on the south side • Building Construction – Lime In addition to providing high quality prod- of Indian Creek. High purity limestone from Application ucts for its customers, Graymont provides the quarry is trucked to the crushing plant, • Mortar engineering and technical support to facili- where it is sized and conveyed to a large • Plastering tate customer applications in the following storage pile adjacent to the preheater kilns. • Restoration areas: Bulk truck loading facilities are provided at • Whitewash • Product Application: With technical and the plant site, and rail loading is available • Environmental Remediation sales personnel skilled in solving cus-

64 Montana Mining 2008 tomer problems, employees work with customers and recommend the proper products to meet their specific needs. This may include support on FGD proj- ects, steel blends of high calcium and dolomitic products, the usage of lime in asphalt, or how to apply building prod- ucts. • Transportation: Having extensive expertise in transportation of products by truck, rail, or water, the company’s emphasis is on building reliable, cost efficient supply networks. An example of this commitment is the operation of a fleet of PCC delivery barges to sup- port customers in the paper industry in the Northwest. • Material Handling: To ensure efficient and economical operations, Graymont reviews and inspects customer materi- al-handling facilities and design criteria. “Common Chemicals With Uncommon Service” If requested, Graymont is prepared to LOCALLY OWNED & OPERATED own and operate such facilities at the customer’s site, including storage facili- Proudly serving the mining industry with a full line of ties. Graymont also provides portable chemical reagents, water treatment, refinery and speciali- ty chemicals. Make us your one stop shop for all your slakers, silos, and unloading and materi- Chemical Montana Company al handling equipment for short term 2000 Boulder Avenue Helena, MT 59601 chemical needs. Total inventory management and techni- (406) 442-8900 • Fax (406) 442-8035 projects. Several customers lease this cal services available. One drum or one truckload give us Greg Peterson - PRESIDENT a call we are ready to serve you. equipment until their project has been Mark McAlmond - OPERATIONS MANAGER completed. Toll Free 1-800-242-6515 email: [email protected] • Research and Development: Graymont can work with customers in R&D efforts for new product and process applications, and has equipment avail- able to facilitate testing of new applica- tions at a customer’s site. Geomatrix has experience in all aspects of mine development, mine operations, and mine closure and reclamation. Our staff of professionals includes: Engineers Graymont’s vision for the future Biologists involves supplying the ever increasing Geomatrix has worked for the mining Geologists need for quicklime to clean up and pro- Geochemists industry worldwide. Our ability to Hydrogeologists tect our environment; eighty percent of combine many disciplines Soil Scientists the company’s product is used for envi- into a cohesive work group Socioeconomists ronmental purposes. Climatologists has been the keystone Mining is essential in every aspect of GIS Analysts to our success. Database Managers our lives, and Graymont is committed to Regulatory Experts working with the members of our gov- ernment and community to help provide these resources in an environmentally safe Helena, Montana (406) 442-0860 manner. Missoula, Montana (406) 542-0129  Albuquerque, New Mexico (505) 821-0221 www.geomatrix.com

Montana Mining Association www.montanamining.org 65 Photo of mine blast with the city of Butte in the background HOWHOW DODO YOUYOU KICKKICK STARTSTART AA DEPRESSEDDEPRESSED ECONOMY?ECONOMY?

MONTANA RESOURCES CONTINUES THE BUSINESS OF MINING THE MINING TRADITION Montana Resources’ business goal is to be a safe, low cost producer Montana Resources resumed operations after a three year suspen- of copper and molybdenum. This has to be the focus of our efforts sion in 2003. The mine had been shut down since July of 2000. By late because the Continental Mine is the lowest grade copper mine being 2003, the rod mills and ball mills were turning, and copper and molyb- operated in the world today. Efficiency at every opportunity is seized denum concentrates were ready to be shipped. Thus began a new and implemented into the operation. Each day, over 50,000 tons of operating era in the history of “the Richest Hill on Earth.” In 2003, ore is ground up to flour size, and the copper and molybdenum met- copper prices were in the $.80 range and molybedenum was around als are separated in the grinding and flotation process. Each day, over $4. Who would have ever imagined that five years later, copper and 40,000 tons of waste rock is removed to uncover this ore. To do this moly prices would rise to their current levels? requires a fleet of twelve 240-ton capacity haul trucks and three elec- This is great news for Butte, and great news for Montana. There tric shovels ranging in size from 17 cubic yards (38 tons) per scoop are 348 employees at Montana Resources, working diligently around to 40 cubic yards (90 tons) per scoop. Two diesel powered drills are the clock, to keep a steady flow of copper and molybdenum con- required to drill the holes that are loaded with explosives to keep centrates going out the door and sold to a hungry world that gob- blasted rock ahead of the shovels. Dozers keep the area around the bles up metals, the building blocks of society. Countries like China, shovels free of rock spill, for the haul trucks and road graders are in India, and Brazil, previously not big players in the equation of supply use constantly to smooth the road surfaces. This is because of the and demand, are now major drivers of the world economy. The bene- world wide tire shortage of large industrial tires. The six tires on each factors of this phenomenal growth are the citizens of Montana. haul truck are over 11 feet in diameter and some can cost as much Natural resource revenue to the state and local communities has as $173,000 apiece. This is in contrast to the $15,500 cost of these risen to all time highs. Each school in the state has received income radial tires (steel belted) in 2004, when the first trucks were pur- from the Montana Mining Industry through the school equalization chased. This is just an example of the cost of doing business. Even laws of revenue distribution. People in cities and towns that don’t though the mining industry is enjoying high metal and non-metal have a mine nearby tend to snub their nose at mining, as an annoy- prices, the price of the supplies to produce these products have risen ance that can come or go and not affect them in their daily lives. To dramatically. get each and every person to realize that their comfortable standard of living comes from a hole in the ground is a challenge to the min- SAFETY IS NUMBER ONE ing community and the public school system. Montana Resources is, above all other considerations, dedicated to

66 Montana Mining 2008 the safety of each and every employee. To support this safety culture, has worked with Butte/Silver Bow, EPA, MDEQ and the Chamber of every employee has attended a safety tailored course titled Commerce to clean up and green up a corridor called the “Courageous Leadership”. The focus of this leadership training is to “Greenbelt” along Continental Drive. This is to make the route to encourage each person in their daily lives (both on and off the job) the historical part of uptown Butte more attractive, and to show that to make safety a “core” value. This means ensuring your own safety mining is a vital part of the community. As other areas of the oper- and watching out for the safety of your peers. All successful mines ation become dormant, concurrent reclamation is accomplished. know that the safest operations are also the most productive. SHARING WITH OTHERS TAKING CARE OF THE FOOTPRINT Montana Resources is proud to be one of the Washington Environmental stewardship is ongoing at Montana Resources. Companies. The Dennis and Phyllis Washington Foundation, founded Because of the rich history of mining in the Butte hill and the desig- in 1988, is supported through contributions from the Washington nation of the area as a superfund site, unique challenges provide Companies and from personal donations by the Washington family. unique opportunities for successful reclamation. Montana Resources Its philanthropic focus includes: arts and culture, education, health

Montana Mining Association www.montanamining.org 67 People in 821 Bucket no. 2 – December 19, 2006

and human services and community service. Many programs in Butte increase the value of local mill levies, which usually translates to and the surrounding communities (Whitehall, Ennis, Dillon, lower taxes for local tax payers. In 2007, Montana Resources paid $6 Anaconda, Deer Lodge, Boulder, and others) have benefited from the million to Butte/Silver Bow in Property and Gross Proceeds Taxes, grants awarded from the foundation. Helping people in the commu- and $7.8 million to the State of Montana in Metalliferous Mines Taxes, nities where our employees reside is important to the foundation for a total of $13.8 million. This does not count other taxes such as and to our employees and their families. payroll and income tax.

SUPPLIES AND TAXES FINAL COMMENTS Montana Resources contributes greatly to the economy. Purchase The answer to the question asked at the beginning of this article is order activity was at record highs. In the Butte and Anaconda com- simple. To kick start a depressed economy, you start up an inactive munities, the mine spent $19.9 million; in the rest of Montana, the mine or open a new mine. Every community would benefit by having mine spent $11.2 million and $82.5 million out of state. The out of an operating mine in or near their community. The best environment state expenses are for goods and services that are not available in is a full lunch bucket. Montana and for electricity costs. The economic multiplier for a basic Montana Resources will continue to operate for many years into industry job is over 2-to-1 so the mine supports an additional 700 the future, and increase the quality of life for not only those that jobs in the service industries. Montana Resources’ payroll, along with work at the mine but also for the people we call our neighbors. the profit share distributions paid to the employees, has helped spark Competing in the world market would not be possible without the the local economies where our employees live. dedicated and skilled work force that strives as a team to be the Production and property taxes are important to Butte and the safest and best mining operation that is within our power to create. State of Montana. They help pay for schools and basic services, and 

68 Montana Mining 2008 THETHE CHALLENGECHALLENGE OFOF SUSTAINABLESUSTAINABLE DEVELOPMENTDEVELOPMENT FORFOR THETHE MININGMINING INDUSTRYINDUSTRY By Tom Harrington, Montana State University –

Extension/Jefferson Local Development Corporation, East slope steep slope reclamation and Ken Weber, Jefferson County Commission with Whitehall in the background.

he Community Transition Advisory Council (CTAC) is a collabo- Cultural Shift Trative effort between Golden Sunlight Mine (GSM), Jefferson Today, the mining industry is County Commission, Jefferson Local Development Corporation undergoing a cultural shift and a (JLDC), the Town of Whitehall, Montana State University, a local bank, philosophical change in per- the school district, the local newspaper and local business owners. spective related to mining in the The CTAC works to find ways to mitigate the impact of mine clo- world. The need to fully under- sure through sustainable economic development. This collaborative stand and assess the environ- effort has been an effective tool for communicating community needs mental, social, and economic to the mine, and for the mine to be in touch with the community. The impacts on the local communi- ty, and to mitigate these The wild turkey stocking program was a part- CTAC’s focus is on economic development to create jobs and a tax nership between Montana FWP, GSM and base in Jefferson County, Montana, as well as the creation of other impacts, has become an essen- local Turkey Federation supporters. benefits to community members. tial aspect of successful mining. Historically, the impact of mining operations on a community has The assessment of community needs will vary from location to loca- been one of boom and bust. Many community economies thrived as tion, depending on the existing environment; in some areas, the com- mining operations started, grew and developed. As the economic life munity needs may be items related to health care, adequate living con- of the mining operation declined, though, and ended with the eventu- ditions or basic sanitation requirements. Other communities may be al mine closure, the local economic impact was devastating in many more focused on the environmental impact of mining, specific social cases. Many of these once-thriving communities – Marysville, Silver needs or economic impact issues. Star, Virginia City, Bannock, Anaconda, Garnet, and Highland City, just Present-day mining organizations need to be able to assess a com- to name a few – either closed, or dwindled into obscurity with only munity profile, and adequately address area stakeholder and Non- the legacy of mining scars and abandoned buildings. These communi- Governmental Organization (NGO) concerns through the life of a ties and countless others are a few examples of the impact of the min- mining operation. The information age and computer technology has ing culture of the past. created intelligent and astute area stakeholders and sophisticated As evidenced by our state seal, which has the words inscribed Oro NGOs. Future mining operations that understand, and address, sus- tainable development will have a distinct advantage in the market- y Plata (Gold and Silver), and the fact that Montana is known as the place. ‘Treasure State,’ mining has been a key part of Montana’s heritage. In The challenge for sustainable development is how to measure the Jefferson County, natural resource extraction has been an integral program’s effectiveness, and the overall contribution to shareholder part of the economy. Montana Tunnels (MTMI) and the Golden value. Many quantifiable environmental standards exist in regulatory Sunlight Mine (GSM) have been in existence here for over twenty guidelines and operating permit requirements to help guide us in how years. to do it right. However, when you look at the social and economic Between hard rock mining and limestone quarrying, Jefferson standards, there are no industry road maps or checklists that rate the County receives close to 40% of its tax base from these industries. effectiveness of a community sustainability program. While this is dramatic, and very welcome, this county has also expe- This means that the criteria and measurement of these key com- rienced the “bust” cycles that follow the booms of natural resource ponents of sustainable development must come from corporate lead- extraction. ership – and amount to more than just the establishment of a formal Mining, by its very nature, is finite, and while we do all we can to corporate policy, or the publishing of a sustainable development phi- help support this industry, we are also aware that the resource being losophy in the corporate literature. mined will eventually run out. When this happens, it impacts the mine It is imperative that the corporate leadership believes in, and com- workers and their families. The impacts are also felt on a global basis mits to, the Principles of Sustainable Development, and understands through the imposition of taxes and tariffs, higher prices for goods and its relationship to shareholder value. Without this active leadership services as a result of increased demand and/or dwindling supply, fluc- commitment and focus, the process of sustainable development is tuations in the import and export of goods, services and raw materi- probably doomed to fail at the mine operator level. Ultimately, the als, and government legislation to protect the economy and environ- local area stakeholders and community will validate and be the true ment. measure of success of a sustainability program.

Montana Mining Association www.montanamining.org 69 View from Whitehall of the west dump reclamation.

Aerial view of GSM with the Whitehall community in the background.

View of the Boulder River Ranch property owned by GSM and open to the public for recreation.

The Importance of a Community-Oriented Sustainable Development Program Several years ago, the Golden Sunlight Mine was looking at mine clo- sure. Doug Bailey, then mine manager, had a vision of getting the com- munity involved in the process of how to mitigate the looming eco- nomic impact. He approached members of the Jefferson County Commission, Jefferson Local Development Corporation and the Town of Whitehall with the question of, “what will we do when the mine is no longer active?” In response, the Community Transition Advisory Council (CTAC) was formed. The lessons learned during this journey identified five key areas that the team direction and actions, is crucial in order to avoid tunnel helped set the stage for success: vision. Using an outside agency to survey and poll the communi- 1) Teamwork:You must get the local mine leadership and key local ty about on-going operations, decisions, and ideas can help keep area stakeholders involved in the process as early as possible. In the focus. We have completed two community surveys that vali- our case, a coalition of area stakeholders was organized, called the dated the committee direction was on track and in concert with Community Advisory Transition Committee (CTAC). These key the community. stakeholders meet monthly to address community issues and 4) Tenacity: Good projects and ideas will always have strong com- concerns, and have been directly involved in key discussions relat- petition; be tenacious. We found that nothing comes easy, and ing to the mine. The primary focus of this group has been to sus- commitment and dedication will increase the probability of suc- tain existing mining operations, with a secondary effort to replace cess. As challenges develop, the committee was able to analyze the existing jobs. This open and direct communication link and assess impacts, and implement alternative plans by selecting between the community and the mine opened the dialogue for the next best course of action. future mine asset re-utilization, economic development opportu- 5) Be Positive: Positive attitudes create a synergy that motivates nities and mine strategies. people to be actively involved in a project and sustains momen- 2) Information Flow: The flow of information up, down, and tum. The world is a place of constant change with many dynam- across all lines of communication needs to be functional and ic situations, and it is imperative to always look for the good effective. The issue of what and how much information a mine is aspects and silver linings. The success of the community-oriented willing to disclose to area stakeholders on current operations can sustainable development program depends upon key members of be an item of debate. A large key to our success was an open and the team staying optimistic and forward-looking. honest flow of information on many aspects of the mine opera- tion, which allowed the CTAC members to be a conduit to the Benefits to All community. It is also important to remember that bad news does- When you create a community program that is working in concert n’t get better with age, and these key community leaders can be with the existing mine operation, it creates a harmony and spirit of a valuable resource to existing operations. The aspect of informa- cooperation that directly benefits the community, as well as the mine tion flow is an essential part of developing a relationship that is operation, in both tangible and intangible ways. built on trust and candor. There are several positive effects of the GSM-CTAC process that 3) Publicity: The implementation of public meetings, routine news- directly benefited the overall mining industry in Montana. For exam- paper articles, periodic sampling and easy accessibility to team ple, the 2003 legislative session saw some significant changes to exist- members is essential. Keeping everyone informed, especially the ing state laws that will have a positive impact on mining. In the past, public, as new information becomes available is an on-going chal- mining operations were required to reclaim their sites back to as lenge. Periodic sampling of the local community on how informa- close to pre-mining operations as possible, and this work was includ- tion flow is working, and how current perceptions integrate with ed as a part of the on-going bonding process. This meant millions of

70 Montana Mining 2008 dollars of useful infrastructure was removed at the end of mining at a throughout the community culture; for instance, the GSM’s sound tremendous cost to the mining company, and the loss of a valuable safety procedures has become implanted in many local community resource to the local community. As a result of the community pro- functions, and has resulted in the establishment of an annual Whitehall gram, a bill was introduced and passed that changed existing law, Safety Fair. allowing mine operations to enter into an agreement with the local These positive factors have helped establish a strong base for government to retain infrastructure that could help mitigate the eco- nomic impact from mine closure. future economic development opportunities. The cultural integra- The efforts of the GSM-CTAC alliance have not only been focused tion also has the added benefit of educating others from the non- on economic development of the area and the lobbying of legislators, mining public, as they come into contact with mining individuals but also on the creation of other benefits to community residents. An while participating in the numerous community activities. This rou- active community partner, GSM has been directly involved with the tine contact with people not familiar with mining can have a tremen- community in many different arenas: dous positive future impact on mining legislation and laws. The bet- • Medical equipment purchases ter-informed voters will be able to make good decisions as mining • Donations for search and rescue equipment • Library expansion program assistance issues come up for voting. • Donates thousands of dollars each year for college scholarships • Donations of computers and musical instruments to area schools Towards the Future • Recreational use of the GSM’s non-mining property available to The sustainable development journey and mine community part- people at no charge nership has been successfully implemented with the Montana • Annual contributions to local baseball programs Tunnels Advisory Group, and with the new Elkhorn Mine • Support of local sportsman organizations • Assisting with the development of an industrial business park to Community Working Group near Boulder. Mining companies that help replace mine jobs fully understand, embrace and implement Sustainable Development • Creation of a local grant program and business loan fund that has Principles in future operations will be the industry leaders. Their in excess of $350,000, funded through metal mine tax dollars from past performance will pave the way for future success as new min- the GSM ing ventures are explored and developed. The commitment to sus- • Funding for/assistance with a wind farm, golf course, shooting tainable development should reward these high performance organ- range, and other projects identified by community surveys izations with reduced costs that will directly correlate to increased • Helped with equipment and manpower during local flooding • Assisted with wild land fire fighting shareholder value. • Provided resources to rebuild the school roof As in the words of a former GSM mine manager, “One of the most • Hosted educational field days at the mine site successful things we have done in preparing for closure is involving the com- • Worked with academia on testing and research munity. Any time you do that, you generate a lot more trust. Through this • Provided property for an outdoor Lewis and Clark theater play committee, the community of Whitehall gives this mine its license to oper- • Assisted with a wild turkey stocking program that now allows a ate.” Sustainable development is here to stay in the mining industry. turkey hunting season It is more than just ‘talking the talk’ – it is about understanding the • Donated and assisted with the development of a community fish  pond benefits and actually taking action. • Funded trout habitat restoration on the Jefferson River • Provided the initial resources for a community endowment pro- View of some of the on-going reclamation at GSM. gram

As you look at the GSM over the past twenty years and talk with area residents, you see concrete evidence that the mine is truly inte- grated into all aspects of the community. When you further analyze the relationship, you realize that the culture and attitude of the mine carries over into many different facets of the community culture. The community is comprised of many mine employees and their immedi- ate and extended families. You see miners and family members as part of the PTA, school board, local government, youth programs, and charitable fundraisers. They are the coaches of local sports programs, leaders in scouting programs, involved with the local 4-H, and partic- ipate in many non-profit and civic groups. Miners have a strong work ethic that is instilled into our schools and many community pro- grams. This direct community involvement by mine employees and fami- ly actually has a significant impact on the local culture and ideals. You can see the positive impact of the mine’s culture being permeated

Montana Mining Association www.montanamining.org 71 Trident Plant in 1909.

HOLCIM’SHOLCIM’S TRIDENTTRIDENT CEMENTCEMENT PLANT:PLANT: BuildingBuilding onon thethe pastpast toto meetmeet thethe needsneeds ofof thethe futurefuture olcim’s Trident Cement Plant in Three Inc., system in North America. In 2001, the include: the Tongue River Reservoir; the HForks is preparing to celebrate its cen- name was changed again to Holcim (US) Inc. Montana State University Chemistry tennial celebration in 2010, but the fact that However, the name changes are the least Building; the Bennett Bay Bridge; the Big Sky the plant has stood at the headwaters of the significant of the transformations the plant Aerial Tram; various Montana Department Missouri River for nearly 100 years doesn’t has undergone. Over the years, technologi- of Highways pavements and concrete struc- begin to tell the real story of its connection cal developments have helped the plant tures around the state; and, various FAA air- to the area. A century before the construc- evolve continually, in order to meet the field runways and aprons. tion of the plant, Lewis and Clark’s epic jour- needs of a growing region while providing Trident products are highly regarded for ney brought the explorers to the Head- livelihoods to generations of employees (the consistency and quality. The plant produces waters Corridor, an event mentioned in average Trident Cement Plant employee has traditional ASTM C-150 cements, but is William Clark’s journal, where he also com- been on the job at the plant for more than actively developing new products, including mented on the massive limestone forma- 20 years). The current plant configuration, the Envirocore family of products which tions in the area. In the years since, those with a single large kiln and modern dust col- require less energy to produce, yet meet the limestone deposits have provided the raw lection system, began operation in 1973. As high demands of the construction industry. material for the millions of metric tons of the plant has upgraded and improved its In addition to Montana, Trident cement is cement the plant has produced over its his- equipment and operations, it has also con- marketed in Wyoming and Idaho, as well as tory. That cement product, in turn, has gone tributed significantly to the Gallatin County in Alberta and portions of Saskatchewan. into the development of much of Montana’s economy, as well as maintained a commit- The plant’s products are marketed directly infrastructure, providing the basic material ment to a safe work environment and a phi- from the plant, as well as through a system for many of the region’s roads, bridges, build- losophy of sustainable development. of distribution terminals stretching from ings and other structures. Today, the Trident plant produces approx- Twin Falls, Idaho, to Edmonton, Alberta. imately 320,000 metric tons of cement per Customer market segments for Holcim Trident Plant year (enough to create 1.5 million cubic cement products include: ready mix compa- Starting out as the Three Forks Portland yards of concrete), supplying construction nies; paving contractors; block and precast Cement Company, the plant has gone projects in Montana, where the state’s grow- producers; energy (oil) development; and through several name changes and owner- ing population will increase the demand for mining operations. ships throughout its history. The most cement by 27 percent in the next 25 years. Holcim’s Trident plant has sustained this recent change in ownership occurred in The plant is Gallatin County’s fifth largest level of productivity with a focus on safety 1990 when the plant, then owned by Ideal taxpayer, generating $550,000 in property and respect for the environment. The Basic Industries, was purchased by and mining taxes annually for the county. Trident plant is registered as an ISO 14001 Holderbank Financiere Glaris Ltd., of Some of the more well-known area projects facility, with an environmental management Switzerland to become part of the Holnam, for which Trident products have been used system to help ensure that it operates effi-

72 Montana Mining 2008 ciently and in compliance with all applicable federal, state, local and company regula- tions and standards. As a testament to its commitment to worker safety, the plant has operated more than five years without a lost time accident. While the Holcim Trident plant has a long history of contributing 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 ecolog- ical footprint. It seeks to achieve this goal by ensuring a more efficient and sustainable use of its products. One example of this commitment 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 environ- mental organizations, 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. 

Montana Mining Association www.montanamining.org 73 index to advertisers MONTANA MINING 2008

AFFCO – Anaconda Foundry Fabrication Co. Inc. 14 Holland & Hart LLP 27

Atlas Copco Construction Mining Technique USA LLC 13 Industrial Automation Consulting, Inc. 52

Billings Clinic 33 Industrial Equipment Manufacturing Ltd. 9

Bison Engineering, Inc. 43 Irwin Car and Equipment 25

Bowers Industrial Sales Inc. 23 ITT Flygt 5

Brenntag Pacific, Inc. 15 JBR Environmental Consultants 17

Bucyrus International, Inc. 61 KLS Hydraulics & Machine Works 32

Cattron Group International IFC Larox Inc. 67

Chemical Montana Company 65 MDM Supply 16

Chevron / Fickler Oil Company, Inc. 29 Mines Management, Inc. OBC

Dick Irvin, Inc. Transportation 16 Moore Oil, Inc. 32

Dyno Nobel 19 Nelson Brothers Mining Services, LLC 10

Dywidag-Systems International 31 Northwest Pipe Fittings, Inc. 14

Energy Laboratories, Inc. 28 Okeefe Drilling Company 43

Ernest K. Lehmann & Associates of Montana, Inc. 61 P&H Minepro Services 3

Ezzie’s Wholesale, Inc. 10 Pennaluna & Company 32

F&H Mine Supply, Inc. 9 Pipeline Systems Incorporated 37

Fenner Dunlop America’s 38, 39 Revett Minerals 57

Fickler Oil Company, Inc. 28 Richwood 42

First Interstate Bank 61 Rio Tinto Minerals IBC

Foremost 7 Ruen Drilling Incorporated 43

Geomatrix 65 Stillwater Mining Company 35

Geometrics, Inc. 47 Stone Raven Resources LLC 42

Glacier HR Services, Inc. 65 Techline Services 60

Golden Sunlight Mine 49 The O.T. Mining Corporation 4

Golder Associates Inc. 62 The Whitmore Group 4

Gough, Shanahan, Johnson & Waterman 53 Tri-State Truck & Equipment 45

Granite Seed 62 Tricon Metals & Services, Inc. 11

Graymont Western US, Inc. 63 Westate Machinery Company 24

GSE Lining Technology, Inc. 52 Western States Insurance Agency – Missoula 12

H&E Equipment Services 51 Western Wyoming Community College 20

Hardsteel Inc. 33 Wholesale Mine Supply, L.P. 59

Holcim (US) Inc. 22 WWC Engineering 44

74 Montana Mining 2008 Minerals that make a difference

Products that make a difference Rio Tinto Minerals is a different kind of mining company. The talc we mine and process here in Montana ends up in products used around the world. Most people think our talc is used to make body powder – and it is. But they don't know it also makes paint last longer, cars more fuel efficient and papermaking a greener process. People who make a difference Our people make a difference too. We each do different jobs, but we all share a commitment to working safely. We also share one of the most beautiful ecosystems in the world with our neighbors – so our commitment to reducing our environmental footprint comes naturally. After all, our families live here too. To find out more about how Rio Tinto Minerals makes a difference, visit www.riotintominerals.com