Gov. Brian Schweitzer said Monday a proposed underground silver and copper mine near Troy is "promising," because it lacks many of the environmental problems common in other hard rock mines.

Schweitzer, after listening to an hour-long presentation by leaders of Revett Minerals Inc., of Spokane, said its planned second silver mine in northwestern Montana has two good things going for it:

• It's under ground, thus side-stepping the open-pit scars left behind from many old mines like Butte's Berkeley Pit.

• The water running out of the mine has a neutral ph factor, which means it will not leach out other nearby minerals in the ore. That process, known as acid mine drainage, is one of the biggest and most intractable cleanup problems at many of Montana's defunct hard rock mines.

"That is huge," Schweitzer said, referring to the absence of acid drainage at Revett's proposed Rock Creek mine near Troy.

The company already runs the Troy Mine, an underground copper and silver mine in northeastern Montana. That mine, like the proposed Rock Creek mine nearby, uses bubbles not cyanide to remove metals from the ore. The leftovers are mostly sand, which fill a few hundred acres of bottom land below the mine.

The mine, which could begin the early stages of operation next spring, is not without controversy - much of it coming from nearby Sandpoint, Idaho, but some from local Montana residents, too.

Some are concerned the mine will further disrupt grizzly bear habitat in the Cabinet Mountains. Others are concerned the sandy tailings from the mine would foul the Clark Fork River, which rolls into Idaho's Lake Pend Oreille, on the banks of which sits Sandpoint.

Revett officials Bill Orchow, president and chief executive officer, and Carson Rife, vice president of operations, told Schweitzer Monday they've already committed to spending around $20 million over the life of the mine to buy new grizzly bear habitat, close roads and other actions that will more than offset the mine's relatively small 482-acre footprint.

Rife has publicly said before that real estate development and golf courses have not committed to similar actions to offset development's effects on bear habitat.

Schweitzer said one of his biggest concerns is the possible effect mining may have on Cliff Lake, a Montana lake that sits above the proposed mine shaft. Mining below the lake could drain the lake as waters find fissures down into the shaft.

Rife told Schweitzer they would not mine within 1,000 feet of either side of the lake.

Schweitzer said after the meeting, he still has concerns. He also asked if the company could backfill the shaft with the sandy tailings.

Rife said the company has not ruled out backfilling and is still looking for a way to use the sand commercially so it will create less mining refuse.

Schweitzer said he thought it ironic that Idaho's Republican Gov. Dirk Kempthorne, long a supporter of logging, logging roads and general resource development, now resists the Troy Mine. Schweitzer suggested Kempthorne's stance may have something to do with the wealthy people who live around Lake Pend Oreille.

Jennifer McKee
of The Standard State Bureau

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The Montana Supreme Court has closed the door to Canyon Resources' appeal of the anti-mining initiative I-137, the first of two state-wide votes banning the use of cyanide in new open pit gold mines in Montana.

The high court also upheld the termination of minerals leases for the Seven-Up Pete Venture. Canyon announced Wednesday that it will now pursue legal actions previously filed in federal court.

Montana voters twice upheld a ban on the use of cyanide in new open-pit gold mines in the state. I-137, which was enacted in 1998, was believed to be specifically aimed at Canyon's McDonald gold project near Lincoln, Montana. The subsequent I-147, which was defeated by Montana voters last November, would have removed the cyanide ban under certain conditions, allowing the project to proceed. The Seven-Up Pete Venture includes the Seven-Up Pete gold deposit, the McDonald gold deposit, and the Keep Cool exploration property.

Canyon sought at least $500 million in compensation in Montana state courts for the loss of the ability to develop the McDonald project. The company also filed a companion suit in Montana's federal court. The federal court action had been stayed pending a final decision by the Montana Supreme Court. Under federal law, a party seeking takings compensation from a state must seek first seek compensation from the state and be denied prior to seeking relief from the federal court.

In a news release issued Wednesday, Canyon announced that the company will proceed with its federal court litigation because it believes that "I-137 violates the U.S. Constitution and should be invalid as applied to the company." Canyon said it may also seek compensation from the state for the value of the mining leases lost through the enactment of I-137.

James Hesketh, President and CEO of Canyon Resources, was appointed to his post after former CEO Richard de Voto retired in the wake of the unsuccessful November election results. In the news release, Hesketh said, "we are obviously disappointed with this outcome by the State Supreme Court, but today's ruling was not unexpected. The decision today is complex with many ramifications."

"We are studying the decision with our attorneys to evaluate the actions we must take in order to protect the interests of our shareholders," he declared.

Dorothy Kosich,
Mineweb

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Press Release - United Bolero Development Corp. (TSX-V : UNB)

United Bolero Development Corp. (UNB) (the "Company", "United Bolero") (TSX VENTURE:UNB) plans to commence drilling on the Bald Butte Molybdenum Project in May to verify historical drill hole data and bring the project into 43-101 compliance. Bald Butte is 100% owned by UNB and is located 28 miles northwest of Helena, Montana. Bald Butte contains a geologic resource, determined from historical drilling, of 131.9 million tons grading 0.077% Mo (203 million lbs Mo) at a cutoff of 0.06% Mo. Bald Butte is of particular near term interest to UNB as it is contained within patented claims, close to existing infrastructure and rail lines, representing a faster track to full scale permitting and development. Drilling equipment will be moved from the Bald Butte to the Cannivan Gulch Project when Bald Butte drilling has been completed about July 1st. Drilling at Cannivan Gulch is also designed to verify historical drill hole data and bring that project into 43-101 compliance. Cannivan Gulch contains a geologic resource calculated from historical drill hole data of 300 million tons grading 0.06% Mo (369 million lbs Mo). In a press release dated March 9 UNB announced the recognition of a high grade zone at Cannivan Gulch. This zone contains a geologic resource, estimated from historical drill hole data that has not been validated by 43-101 standards, of 26 million tons grading 0.138% Mo. The high grade zone exhibits a geometry and proximity to existing underground workings that would allow a bulk minable underground mining scenario. Cannivan Gulch is located 30 miles southwest of Butte, Montana on federal lands in the Pioneer Mountains.

President William S. Morton states: "This work will provide UNB with up to date drill hole data verifying historical results that will bring the projects into 43-101 compliance. The company plans to be in a position to move forward with both projects by the end of 2005."

Qualified Person

These results and comments have been prepared under the guidance of Robert B. Hawkins, a geologist and independent consultant to UNB who is designated as the Qualified Person with the ability and authority to verify the authenticity and validity of this data.

On behalf of the Board of Directors,

William Morton, President & CEO, Director

United Bolero Development Corp.
William Morton
President & CEO, Director
(604) 925-8898 or Toll Free: 1-888-945-4770
(604) 925-9897 (FAX)
info@unitedbolero.com
www.unitedbolero.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Visit United Bolero Development Corp. Website: www.unitedbolero.com

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A U.S. Congressional Subcommittee was warned this week by the U.S. Geological Survey that the rapid economic growth in developing countries is producing changes in mineral consumption, production and trade, which have important implications for the U.S. economy and the security of the nation.

Meanwhile, a Virginia-based national defense think tank has urged Congress to relax excessively restrictive regulations on mining and exploration to revive the U.S. mining industry and reduce the nation's dependence on foreign mineral imports.

In a news release issued this week, Rep. Jim Gibbons, R-Nevada, Chairman of the House Resources Subcommittee on Energy and Minerals, said, "We need to better understand the changes in these nations and the global economy to ensure that we can maintain a continual and dependable mineral and energy supply to support our economy and lifestyle. At the same time, the U.S. must retool its mineral and energy strategy by encouraging, rather than discouraging investment in domestic natural resource production." Gibbons is the sole geologist serving in the U.S. Congress.

USGS Geologist W. David Menzie told the subcommittee that his agency's analysis indicates that China's rising consumption of mineral commodities has resulted in higher prices and lower stocks of aluminum, copper, gold, iron ore, nickel, platinum-group metals, and tin. "Another result has been high levels of uses of world production capacity for many commodities," Menzie said. "This has left little excess capacity to handle supply disruptions. In some cases, shortages of mineral commodities have caused manufacturers to limit their production of goods."

"World demand for iron ore, iron and steel scrap, blast furnace coke and steel has been especially strong," according to Menzie. "The USGS has received numerous contacts recently from companies trying to find sources of iron ore and steel, including those used in the manufacture of automobile axles and in defense applications."

Because of the demands of the Chinese economy, "Chinese exports of mineral commodities such as rare-earth elements, silver, tin, and tungsten are declining," Menzie explained. "China controls exports of some mineral commodities such as antimony, coking coal, and tungsten by requiring an export permit. China also maintains duties on exports of some mineral commodities."

As China has had to increase both its production and imports of mineral economies, Menzie said China has "made significant foreign investment in bauxite and alumina, copper, iron ore and nickel production facilities." Although China Minmetals proposed purchase of Canadian miner Noranda fell through, Menzie declared that these negotiations "are indicative of interest by China in owning sources of mineral commodities that its industries rely upon. China's rapid economic development and increased consumption of mineral commodities are also increasing environment residuals released into the environment."

Menzie shared with the subcommittee USGS analysis of the possible implications of rapid economic growth in developing countries. "China is now well along in its light manufacturing stage and has begun to develop its heavy industry and even consume durable good such as automobiles," he said. If Chinese consumers follow the example of their Asian neighbors, Chinese auto ownership could rise from about 10 to 100 autos per thousand people within the next seven to 10 years.

"Increased competition could take place among countries seeking sources of mineral commodities to supply industrial production," Menzie predicted. "National policies regarding domestic and international resource ownership and policies concerning mineral exports are example of ways that governments could attempt to secure advantage for domestic industries."

As developing nations experience higher national incomes, Menzie fears that there could be increased "resistance to mineral production. ...This could create difficulties for companies seeking to increase exploration for new mineral deposits and to extend lives for some deposits that were thought to be reaching the end of their production."

As developing economies slow, increased volatility in mineral prices could result, he suggested. "If during such a downturn, developing countries turn their growing capacity to produce mineral commodities to exports to developed countries, significant trade disputes could take place." Menzie cited the example of the rapid increase in cement imports from Asia into the United States after the downturn of Asian economies in 1997.

"In developed countries, high prices and increased competition for mineral commodities could bring additional economic pressure on manufacturers," according to Menzie. New strategies in information technologies, combined with innovations in product design, could increase reuse, remanufacture, and recycling of components and help manufacturers avoid high cost new materials, he suggested.

The rapid changes in mineral consumption are also increasing the necessity for "reliable information for economic and national security planning and developing public policies," Menzie asserted.

The continued growth of the economies of China and other large developing countries, such as India, could result "in a period of rising real prices for mineral economies," Menzie stressed. "Over the next 20 years, mineral commodity price trends may closely resemble the period from 1950 to 1970 than the last 30 years because of the proportion of the world's economies undergoing development."

STRATEGIC MINERALS NEEDS

National Defense Council Foundation President Milton R. Copulos told the subcommittee that 16.8% of the U.S. GDP is a direct product of minerals and materials mining and processing. The National Defense Council Foundation is a conservative think tank that addresses issues related to assuring adequate and secure supplies of energy and strategic minerals. The foundation has contended that a healthy domestic mining industry is critical to national defense and economic security.

"These raw minerals, along with minerals imports generated $418 billion in processed mineral materials. These processed minerals in return, added $1.97 trillion in value to U.S. manufactured goods, " Copulos said. "As a result one out of every six jobs in our economy is directly or indirectly tied to mineral production," he explained. "Yet as important as those commodities are to America's economic success, their supply is not assured."

Copulos explained that the U.S. relies on foreign sources for 100% of 17 important minerals. "We are also dependent on foreign sources for 80% or more of another dozen key nonfuel minerals including titanium sponge, which has a wide range of important defense applications...palladium, which is essential to catalytic chemistry, and tantalum, which is essential to the manufacture of corrosion-resistant chemical equipment and micro circuitry," he said.

As a result, Copulos said, "competition for nonfuel minerals is intensifying, and as with oil, the primary reason for this intensification is the stunning increase in China's appetite for these commodities."

"Although Chinese officials indicate they plan to restrict their country's growth rate to around 8%, even that level of expansion will place a strain on world mineral markets," Copulos warned. "Competition for nonfuel minerals between China and the industrialized nations of the world will remain a permanent fixture of the global economy."

Copulos suggested several approaches be undertaken in a program to address U.S. nonfuel mineral imports.

He insisted that removing "unreasonable or excessively restrictive regulations will go a long way towards reviving the domestic mineral industry and reducing the need to import those minerals that can be produced from domestic sources."

To meet the need for minerals which can't be found domestically, Copulos suggested that the government maintain adequate stockpiles of strategic and critical materials that can't be mined in the U.S. "History has demonstrated that no matter what the cost of maintaining a strategic stockpile may be, it is still cheaper than attempting to acquire critical materials in a time of crisis through the market place."

Copulos also suggested that recycling of minerals from abandoned equipment be encouraged, particularly automobile catalysts that contain PGM. "A third step is to aggressively research alternatives to those nonfuel mineral commodities we cannot produce for ourselves," he added.

"The choice we face is simple," Copulos declared. "We can either find the political will to do those things necessary to break the shackles of oil and nonfuel mineral imports, or we can continue to stand idly by and allow events to overwhelm us."

"If we fail to find the courage to do what is right, we will have no one to blame but ourselves when the next crisis wreaks havoc throughout our economy," he concluded.

Dorothy Kosich,
Mineweb

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Overview

In 2004, the Montana mining industry responded positively to an atmosphere of rising commodity prices, including some commodities that had not seen significant price increases since the 1940s. Interest focused on iron, copper, molybdenum, silver and gold with a cautious look at tungsten.

Operating mines struggled to secure equipment and tires. Because of the extended duration of the last price slump, many operations had deferred replacing their trucks and loaders for nearly a decade. Companies placing orders found that some delivery dates were projected out one to two years and even longer for very large pieces of equipment. Late in the year, some companies indicated that tires were difficult to secure and there were no plans by the tire companies to increase production. On a brighter side, many companies had a lower employee turnover rate. Companies resuming or starting production received more than sufficient employee applications and many applicants had previous mine experience.

A shortfall in technical services personnel looms. Economic and mining geologists are difficult to find and there are few new graduates. Most of the mining-related engineering disciplines are not producing an adequate number of graduates to meet current industry needs let alone the anticipated retirements in the next few years.

Early in the year, Canyon Resources funded an initiative campaign to legalize open-pit, heap-leach gold mines. The initiative (I-147) qualified for the November general election ballot but the initiative was defeated.

Mining Activities

In the northwest corner of Montana (Lincoln County), Genesis Inc. a wholly owned subsidiary of Revett Silver (Spokane, Washington) has resumed production at the Troy mine. They are producing 6,500 tons per day of ore, averaging 1.57 opt silver and 0.65 percent copper and will employ 150 people. They hired about 65 people by December from a pool of more than 650 applications. Purchases have included a number of new trucks and drills although delivery has been delayed and will be for some time. Many of their older trucks have been modified with new engines to meet EPA emission standards. Full employment and production started at the end of 2004. Funding was secured in part by a royalty agreement with Royal Gold Inc. on future production of the Troy and Rock Creek mines.

The company will operate as a contractor for ASARCO until enough cash flow is generated to allow them to develop a cash bond for reclamation. They also plan to start development of the production incline for the Rock Creek mine (12 miles south) next summer. Troy has 2 to 5 years reserves (8.7 million tons) and Rock Creek has production potential for 30 plus years. Continuing litigation by environmental groups is expected but the companies appear ready for the battle.

East of Noxon and the Rock Creek property, Mines Management will soon re-apply for permits for the Montanore mine that was previously permitted by Noranda. This world class copper-silver property is expected by the company to be re-permitted within a year. Agency personnel reported that it would likely take longer.

Northeast of Avon, Clark Smith continued small-scale gold placer production on Ophir creek. He increased production when he replaced his cable backhoe with a Timberjack modified to be an all terrain excavator.

At Butte, Montana Resources took delivery of six 240-ton ore trucks in the last half of 2004. This acquisition has greatly improved their production and lowered costs. Two Ingersoll (IR-270SP) drills are also on order. Delivery dates are unknown. Many of the older trucks have been updated with new engines to allow continued production. A new Bucyrus International BE-495HD shovel has been ordered and is expected to be onsite in the 3rd or 4th quarter of 2005. This shovel will more effectively load the larger capacity trucks.

Montana Resources, like other copper and molybdenum producers, has enjoyed the vastly improved commodity prices. Production for 2004 was estimated at 65 million pounds of copper, 6 million pounds of molybdenum, and 580,000 ounces of silver. A substantial production bonus was divided between the company’s 350 employees.

Near Virginia City (south of Butte), Ruby Valley Garnet, LLC. purchased the Ruby Garnet operation from the Montana-Oregon Investment Group. A higher grade deposit was also purchased. The company has worked through the fall, testing the deposit and equipment and expects to be in production in 2005. Current reserves are adequate for 3 to 4 years of operations but probable resources are projected to support 20 to 30 years of mining. Annual production is anticipated at 10,000 tons. The company will focus on wholesale production of garnets for water filters, water-jet cutting, and abrasive blasting medium.

Near Nevada City, Zane Pazma continued mining gold from the lower Browns Gulch placer (Bubany placer). In many areas, values were reported to be as high as $100/cubic yard, with both fine and coarse gold being recovered. Mining was difficult as the gravels were covered with up to 40 feet of clay and silt from earlier placer operations. The lower portion of the drainage has been reclaimed. Work will continue in the coming spring in the upper segment of the property where the gulch narrows.

East of Dillon, Barretts Minerals has maintained production from the Regal and Treasure talc mines. Production is up and the markets are increasing. They will be increasing their fleet size as well as their workforce. They have added a new storage silo at the mill and plan to upgrade processing equipment. They expect to complete (early 2005) a stripping and stabilization program in the Treasure pit that was initiated by a pit wall failure in 2004. The company will move the county road around the Regal pit in the near future to increase safety for the public as the ore body is developed.

South of Ennis, Luzenac America has experienced similar market strength in their talc sales even though they operate in somewhat different markets. They are also looking at some upgrades in equipment and a modest increase in labor. Work in the South 40 pit has developed 50 years’ reserves of high-quality talc.

Near Boulder, Apollo Gold has nearly completed an extensive stripping program at their Montana Tunnels mine (Au, Ag, Pb, Zn). The combination of a pushback and a major wall failure on the west side created need for an extensive stripping program that was recently completed. The remaining mine life will be approximately four years. Many of their trucks have accumulated extensive hours and the company plans to rebuild many of the trucks in the face of a short mine life and extended delivery date for new equipment. The company has also applied for a permit to expand the pit to the north. The expansion would extend the mine life to 2011. If approved they will initiate a stripping program in about 2 years.

East of Butte, Golden Sunlight (Placer Dome) started processing gold ore 6 months earlier than originally planned. A previously unknown ore body, estimated to contain 800,000 tons, was discovered while stripping for the stage 5B pit expansion. The current mine life is four years but the company is initiating an extensive exploration program to look for potential ore bodies remaining on the property. The company is planning to hire 15 new employees.

The Montana DEQ and Bureau of Land Management released their Supplemental Environmental Impact Statement on the Golden Sunlight Mine Pit Reclamation. The document recommends against backfill of the pit based on potential damage to the environment. How this recommendation will affect the lawsuit against the DEQ by environmental groups over the permitting of the major mine expansion in 1998 is yet to be seen.

North of Townsend, Tracy Fortner produced placer gold from the high benches in Confederate Gulch. Operations in the main gulch above Diamond City have been delayed while he has waited for a 404 Permit from the Corps of Engineers to allow him to disturb a dry streambed. Tests this summer demonstrated that after mining and reclamation, surface flows in the dry streambed will likely be restored and downstream water users will not be harmed during operations.

Near Three Forks, Holcim (cement) continues to work on their permit to replace 15 percent of their fuel needs by burning waste tires, but the time and costs for the environmental impact statement have been expanded. An anticipated $1.2 million capital improvement program is scheduled for the plant. This will reduce flue-dust emissions and process dust over the next two years. Local cement markets are very strong and exceed production by approximately 25 percent. The company indicated that the market is one of the most rapidly growing in the nation. Plant production has been sold into the future for the next two years. The company was the “exporter of the year” for the State of Montana. The operation has been recommended for ISO ratings of 14.001 and 9.001, which are for high environmental and performance standards.

Near Lewistown, Yogo Creek Mining has temporarily closed for the winter. Their decline is completed to 425 feet (vertical) and they have encountered gangue that is too hard to allow for release of the sapphires by simple washing. Future operations are dependent on discovery of additional reserves. If additional reserves cannot be developed, closure may occur within the next year or two. The disappointing part of this is that the client demand has risen to where the mine and process facilities cannot produce at a sufficient rate to meet it.

In the Big Timber area, Stillwater Mining Company has embarked on an extensive development program to bring the East Boulder Mine production to a level of 2000 tons per day by 2007. Current production averages 1300 tons per day. This program was in progress when the contractors were laid off in 2001. Part of the program includes an aggressive equipment purchase and rebuild program but implementation has been somewhat impeded by delays in equipment delivery. Development is expected to approach 30,000 feet in the coming year. Currently Moran Mining is driving an 1820-foot ventilation raise with an Alimak climber. This will allow improved ventilation. The company has enlarged their tailings ponds to the Stage II permit capacity and expects to produce about a million tons of rock in 2005.

Stillwater is also experimenting with conventional cut and fill mining methods utilizing slushers to see if recovery can be increased and dilution reduced in order to cut costs. The mechanized methods are fast but are capital intensive, have greater ventilation needs and the 50 degree dip of the ore body results in higher dilution rates. The 2-yard muckers require an 8-foot mining width, resulting in severe dilution of the typical 4-6.5 foot mineralized zones.

Stillwater Mining reached an agreement with the labor union for a three-year contract at the Stillwater Mine near Nye. They have driven a ramp off the bottom of the shaft but will have to deepen the shaft eventually. They are enlarging their haulage equipment to 30-ton trucks on the ramps. They have added a cobalt-recovery circuit at the base metal refinery and are increasing their capacity to recycle a higher percentage of automotive catalytic converters. Platinum and palladium prices are up and the mines appear to be profitable at current prices.

Southeast of Big Timber in the Deer Creek drainage, Northstar Mining completed 850 feet of development on an underground quartz-sulfide hosted precious metal mine. Their gravity and flotation mill (125 tons per day) is functional but they have temporarily closed until they can resolve recovery losses. They are also experiencing problems securing a contract with a smelter that can deal with the chromite in the concentrates and recover rhodium and iridium. The company is planning to resume development in 2005 and production when a favorable smelting agreement is reached.

Exploration

Exploration is typically an outgrowth of the profit or need for reserves by a mining company. In the last 10 years, the companies have struggled to stay alive so investments in exploration have been minimal. During the first few years of an upturned market cycle, profits are typically reinvested in the mining operations. This is usually in the form of new or rebuilt production equipment or replacement of critical personnel followed by less critical needs. After those needs are met, the companies often invest a portion of their profits into exploration. In Montana, exploration is currently being fueled by venture-capital speculation on stock and by commodity prices. Major companies have shown little, if any, activity in the state.

New companies comprised of seasoned industry professionals have started re-assembling property packages based on historical exploration programs such as molybdenum programs of the 1970s, the gold programs of the late 1980s and early 1990s, and even the iron and tungsten programs of the 1950s. Many portfolios include diversified commodities and mining methods. Placer gold interest has also been steadily increasing but mostly for small-scale operations. Overall, exploration in Montana exhibited a modest increase in activity over the previous years. With little exception, activities were focused on property acquisition by purchase or claim staking.

In the northwest corner of the state, Idaho General Mines Inc. worked on their Molly Star property near Thompson Falls. Their interest is focused on a Lupine-type target and encompasses both molybdenum and copper deposits in the area. Near Trout Creek, John Cochran tested for placer gold in the Vermillion creek drainage.

Near the Troy deposit (Spar Lake), Genesis drilled to expand the reserve base of the strata-bound copper-silver deposit they are currently mining. The company reported positive results and indicated more drilling in the future.

North of Butte, O.T. Mining started an extensive diamond-drilling program on the Ruby mine property and the surrounding area, based on results of a Mobile Metal Ions geochemical soil survey and an extensive Titan 24 ground-geophysical survey. The survey focused on a deep copper-porphyry target below the rocks covering the Boulder Batholith.

Results of Hole NA04-6 show 587 feet of non-mineralized volcanic cover overlying intercepts of copper mineralization in batholith rocks. A number of short (less than 5-foot) intercepts ranged in grade from 0.2 percent copper to 0.34 percent copper. The winter drilling program was stopped at 1,916 feet to allow for an as-yet-undiscovered, endangered lynx to be undisturbed during the winter months. The hole will be deepened in the spring. The 2005 drilling budget for O.T. Mining is estimated at 18,000 feet.

East of Boulder, Elkhorn Goldfields continued diamond drilling with two rigs to define the gold deposits discovered by Goldfields and Santa Fe. They have completed blocking out reserves on the north end of their property package and have completed a pre-feasibility analysis on the economics. They anticipate production will commence this year at a level not exceeding 500 tons per day.

West of Philipsburg, Grant Metz continued to evaluate a sapphire deposit in the lower Stony creek drainage. He has recovered a number of very clear, small sapphires at about 18 feet below the surface.

South of Melrose, Gene Nelson continued compilation of data and testing on the Browns Lake (LenTung, Ivanhoe) garnet-tungsten skarn. Through mapping and drill data, a reserve of 2.5 million tons of 0.6 percent WO3 has been identified. The zone is described as 20 to 30 feet thick, 2000 feet long, and 400 to 500 feet wide. Additional beds containing lower grade resources may bring the overall thickness to 70 to 80 feet even though grade is projected be reduced to 0.3 percent WO3. In addition, testing has demonstrated that the garnet waste from this operation is excellent for water-jet cutting of mild steel and aluminum. The existing tailings ponds from the earlier mining operations are estimated to contain approximately 2 million tons of sized and pre-ground garnet. Gene is developing markets and hoping to start development of his business this year.

South of Columbus and Big Timber, Beartooth Platinum explored for platinum-group metals with four diamond-drill holes in the Iron Mountain and Picket Pin areas of the Stillwater Complex. The program was started late in the season and showed favorable results. An extensive drilling program is planned for 2005.

Coal

Total production from all of Montana’s coal mines was up 8.4 percent to 40,074,764 tons in 2004. All but the East Decker Mine recorded an increase in production.

Near Decker, the East Decker Mine (sub-bituminous) was down 42 percent to 355,142 tons, continuing a sharp decline in production over the last 4 years. The mine only produced during the months of April, November, and December. The West Decker Mine (sub-bituminous) was up 5.4 percent to 7,886,137 tons. Production at Spring Creek Coal Company’s Spring Creek Mine (sub-bituminous) was up 34.9 percent to 12,001,290 tons.

Westmoreland Savage Corporation increased production at the Savage Mine (lignite) by 3 percent to a total of 380,042 tons. The operation feeds a mine-mouth power generation facility in Sidney.

Production at Western Energy’s Rosebud Mine (sub-bituminous) in Coalstrip increased 15.2 percent to a total 12,413,482 tons. Production at their waste coal plant (CELP) was up 8.2 percent to 241,283 tons. Production at this facility feeds four mine-mouth power generation facilities on site and some coal is shipped east. Peabody Coal Company is reclaiming the Big Sky Mine.

Washington Group International, Inc. increased production by 9.5 percent at the Absaloka mine (sub-bituminous). Total production for the year was 6,588,633 tons.

The greatest increase in production took place at B.M.P. Investments, Inc.’s Bull Mountain Mine #1 (sub-bituminous) where production increased from 13,446 tons to 208,755 tons. This is Montana’s only operating underground coal mine and is located near Roundup.

Robin McCulloch,
Mining Engineering Magazine

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Mixing extreme optimism with just a touch of gloom, U.S. state mining officials painted a portrait of western mining and exploration for attendees at the Northwest Mining Association Wednesday.

Montana mining is "kind of taking a beating," declared Robin McCulloch of the Montana Bureau of Mines and Geology. In the wake of the overwhelming rejection of a pro-mining ballot initiative by Montana voters last month, McCulloch said Montana miners are still "up in the air" when it comes to forecasting the future of the state's hardrock mining industry.

Canyon Resources was the primary backer of I-147, which would have allowed the use of cyanide in new open-pit gold mines in the state. McCulloch claimed that a number of people who had voted against the ballot question "told me that they weren't against mining, they were against Canyon Resources."

Revett Silver's Troy Mine may resume production late this month or early January, according to McCulloch. Mines Management's Montanore silver project is hoping to get all of its permits by 2006. Nevertheless, McCulloch expressed some skepticism that mining opponents will not actually create delays in that schedule.

Idaho Geological Survey Economic Geologist Virginia Gillermen noted that Idaho's silver and phosphate mining industry sectors seem to be fairing quite well. Coeur d'Alene Mines' Galena mine "has been doing an excellent job in replacing their reserves," Gillermen said, while Hecla's underground mining expertise continues to strengthen the longevity of the Lucky Friday silver mine. Sterling is working on major land acquisitions in the Coeur d'Alene district. Meanwhile, Formation Chemicals opened the Sunshine refinery last June.

Meanwhile, Colorado's Geological Survey is waiting "to see if there's going to be more uranium exploration interest" in the state, according to James Cappa, Chief of the Minerals Section. This year alone has seen a 30% increase in the value of the state's mineral and mineral fuel production, roughly $7.8 billion, he added.

Doug Sawyer, Director of Arizona's Department of Mines and Mineral Resources declared there's "lots of land-grabbing going on" in his state, particularly since uranium "is probably the hottest commodity in the state at the moment."

Interestingly, one of the nation's grand mining experiments, the Santa Cruz in-situ leach copper property has recently been sold to a real estate developer who is expected to put a number of homes in the area. Due to the dismantling of the Bureau of Mines and other mining research and development by the Clinton Administration, "we never learned much about the cost and success" of the experiment, declared Sawyer. Therefore, one billion pounds of copper may ultimately be surrounded by subdivisions.

Rio Tinto's Resolution Copper project is generating a lot of buzz because it is very large and very high grade, said Sawyer. However, the company has to figure out how to mine copper located one mile below the surface where temperatures soar to 170 degrees F, he added.

Dorothy Kosich,
Mineweb

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After 15 weeks -- most of it underground -- the first class of miners have graduated from the Montana Tech Underground Miner Training Project.

Thursday marked the last day for the first five men to graduate from the Tech program. They’ll still need site-specific training for whatever mine they end up working in, but the training and mine safety certification gives them an advantage when it comes to hiring.

“Their safety certificates are as good as gold with mining companies,” said program director Rob Cronoble.

“It gives us a leg up, a foot in the door,” said graduate Scott Frost.

“And you have a real sense of accomplishment finishing this,” said Gary Hayes.

Two of the graduates have already interviewed with the Stillwater Underground Mining Co., in Columbus, and others are returning home to Libby and Troy where the local mine is slated to reopen.

The training center is for displaced Montana workers and is funded with a $1.6 million federal grant in a partnership between Tech, the Department of Labor and Stillwater. Training, lodging and housing are provided at no cost to the students and underground mines are used as classrooms.

The main emphasis of the training is safety, Cronoble said. Students first pass a 40-hour classroom safety course and then review constantly on safety while underground in the Chief Joseph Decline, near the Granite Mountain Memorial on the Butte Hill. The total safety training is about 100 hours; the other 450 to 500 hours involve hands-on training underground. Students learn how to use jackleg drills, air compressors and explosives, among other mining techniques.

“They learned the biggest thing to underground miner training is safety and proper work area inspection and pre-shift gear inspection,” Cronoble said. “And they leave here with some basic skills they can build on to build a career as miners,” said instructor Al Elge.

In addition to the work, and getting acclimated to the underground environment, Cronoble said the students are to be commended because many had to leave families and other obligations behind during the 15-week course. The training program covers all room and board costs in Butte, but many still had bills due at home. And only some of the students were still receiving unemployment benefits.

“It was really a grueling 15 weeks for these guys,” Cronoble said.

“The hardest part is being away from your family,” said Frost.

“And the financial burden with your unemployment running out,” added Gary Dodge.

“But with the job market like it is, it gives you something to look forward to,” Frost said.

Mines have already contacted Cronoble about the program and several are predicting worker shortages in the coming year, giving the students excellent employment opportunities.

“They’ve done real well,” Cronoble said of the class. “They can go anywhere and be safe and productive miners.” The graduates are Frost, Dodge, Hayes, Chris Marshall and Cody Nallion.

Barbara LaBoe,
The Montana Standard

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Protection of the rare Canada Lynx will not stand in the way of logging needed to reduce the risk of wildland fire, the federal government said Friday.

In a draft environmental impact statement, the U.S. Forest Service and Bureau of Land Management also stepped away from proposed limits on backcountry ski and snowmobile trails.

Rather than enact new pro-lynx “standards,” the government’s preferred alternative would amend forest management plans to include voluntary “guidelines” for wildland fire management, livestock grazing, winter recreation and mineral development in the wild cat’s habitat.

Still, Forest Service lynx project leader Jon Haber said lynx would be better protected across 53 million acres of federal land in Montana, Idaho, Utah and Wyoming.

The Northern Rockies Lynx Amendment would be added to the management plan of every national forest in western Montana: the Lolo, Bitterroot, Flathead, Kootenai and Beaverhead-Deer Lodge.

The U.S. Fish and Wildlife Service designated lynx as a threatened species in 2000, citing the lack of attention given the animal in forest management plans as its greatest risk.

But Haber said lynx are actually “pretty tolerant of what we do.”

Scientists aren’t even convinced lynx populations are on the decline, he said. “There aren’t that many lynx, but we aren’t sure that represents a long-term downward trend.”

Lynx are small animals, only about 20 pounds, but have feet the size of a mountain lion.

Their peculiar proportions – big feet, long legs and a light bone frame – help lynx live in high-elevation, deep-snow, spruce-fir forests where other predators cannot go.

Problems arise when skiers and snowmobilers compact the snow and unwittingly allow other species into habitat previously marked “lynx only.”

Originally, the Forest Service and BLM proposed a “no net increase” standard for groomed recreational trails in lynx habitat.

Misunderstandings created a huge controversy over the suggested standard, Haber said. The new proposal would discourage, but not prohibit, expansion of grooming or outfitter use in lynx habitat.

“We are not closing anything and we are not prohibiting increased use,” he said, “If you can’t go elsewhere and you’ve considered the needs of lynx, then you can proceed.”

So, too, did concerns – these over the need for forest thinning in areas at high risk of wildfire – scuttle an initial proposal to halt logging in snowshoe hare habitat.

Hares are the preferred prey of lynx; they live in dense forest thickets, so don’t take kindly to logging.

So the government’s original save-the-lynx plan protected snowshoe hares as well by protecting their thickly forested homes.

In the draft EIS, pre-commercial thinning would be off-limits in hare territory, but thinning in the name of wildfire risk reduction would be allowed.

“We did an analysis, and there really wasn’t a whole lot of overlap between hare habitat and areas in need of wildfire fuel treatments,” Haber said. “Even if we did some fuel reduction, it would only reduce the habitat by 5 percent over the next 10 years.”

“We did an analysis, and there really wasn’t a whole lot of overlap between hare habitat and areas in need of wildfire fuel treatments,” Haber said. “Even if we did some fuel reduction, it would only reduce the habitat by 5 percent over the next 10 years.”

“There are so many areas we need to treat for fuel,” he said, “we won’t even be looking at marginal areas. But we did not want to get in the way of wildfire risk reduction. That’s too important.”

Sherry Devlin,
Missoulian

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HELENA – The Montana Mining Association and other industry groups are taking tentative first steps toward launching a drive to repeal the state’s voter-passed 1998 cyanide leach mining ban.

Angela Janacaro, executive director of the association, said her group and others have hired an outside consultant to conduct focus groups to find out how Montanans feel about the cyanide ban. They have not ruled out trying to put a repeal of the ban on the 2004 ballot.

Janacaro said the association has opposed the cyanide ban since it was first proposed, but the focus groups currently under way are not aimed exclusively at overturning the ban.

The consulting group started contacting registered Montana voters in late December, she said. After asking voters a few questions, the consultants invite them to a focus group – a small gathering of people who discuss cyanide leach mining, Montana’s economy and other issues related to mining and resource extraction.

Repealing the ban “is not necessarily the primary reason we’re doing this,” she said. Initiative 137 banned cyanide leach mining in 1998 after voters passed the measure by a 52 percent to 48 percent margin. The Montana Mining Association has always opposed the ban and one company, Canyon Resources Corp., of Colorado, has been fighting the ban in court ever since.

Canyon Resources was trying to open a large, cyanide leach gold mine near Lincoln when the ban passed. The company has run into problems with the state’s Department of Environmental Quality over cleaning up another Canyon gold mine, the defunct C.R. Kendall mine near Lewistown.

The industry announced plans last winter to gather signatures to place a repeal of the ban on the 2004 ballot. That came after Sen. Debbie Shea, D-Butte, said she was withdrawing a controversial bill of her own that would have done the same thing.

For months, however, the industry made little progress toward a repeal of the ban. Janacaro and Dick DeVoto, president of Canyon Resources, told a reporter in December that they knew of no solid steps under way to place a repeal of the ban on the ballot.

Later that month, the consulting company hired by the mining industry started contacting voters.

Jim Jensen, executive director of the Helena-based Montana Environmental Information Center and author of the original 1998 ban, said he is “ready, willing and able” to confront the mining industry again. Jensen said the ban has saved Montana taxpayers millions of dollars because they have not had to pay to clean up any more abandoned cyanide leach mines.

“The jobs issue is one I hope the mining industry uses,” he said. “There are more people mining today in Montana than there were before I-137 passed.”

DeVoto said Wednesday that I-137 has stifled development of new silver and gold mines and given Montana a black eye among the global mining industry.

“We know there were 156 exploration programs for metals going on in Montana in the early 1990s,” he said. “There are virtually none today.”

DeVoto said his company is involved in the focus groups, but only through its membership in the Montana Mining Association.

Jennifer McKee,
Missoulian State Bureau

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