2014 Montana Mining Magazine - Montana Mining Association

2014 Holcim Trident supports our troops in Afghanistan Supporting mining’s future: MMA Memorial Scholarships Pecking orders: Much at stake as groups debate alleged sage grouse endangerment REAL Montana’s two-year program equips emerging industry leaders for dialogue Turning mountains into molehills: Smith & Sons Construction Ash Grove promotes legislation to preserve Montana jobs

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in this issue Message from MMA President Matt Wolfe.....................................................................6 Message from MMA Executive Director Tammy Johnson..............................................8 Montana Mining Association mission statement........................................................10 2014 MMA Board of Directors.....................................................................................12 MMA committee members.........................................................................................14 Montanans want action..............................................................................................16 2014 Legislative outlook.............................................................................................18 2014 MMA committee reports....................................................................................20 Tribute to Ernest K. Lehmann (1929-2013).................................................................30 From end use to new use, never refuse to reuse: Pacific Steel & Recycling................32 Pecking orders: Much at stake as groups debate alleged sage grouse endangerment..............................................................................................36 Sweeping land-use restrictions and prohibitions in BLM/USFS Draft EISs for sage-grouse threaten U.S. mining and the economy in 11 western states...............42 REAL Montana’s two-year program equips emerging industry leaders for dialogue with other sectors.....................................................................................44 Mining the data: The MBMG’s Data Preservation Program........................................ 48 Turning mountains into molehills: Smith & Sons Construction..................................50 MMA board member Hal Robbins retires from Bison Engineering.............................52 Supporting mining’s future: MMA Memorial Scholarships..........................................54 Mines and exploration in Montana: 2013 in review...................................................56 Missoula Chapter update............................................................................................60 Holcim Trident supports our troops in Afghanistan....................................................61 The neighbor next door: Golden Sunlight Mine..........................................................62 Garnet USA closes $225-million joint-venture with GMA Garnet Group......................65 Stillwater Mining Company: Growing recycling business complements mine production......................................................................................................66 Imerys Talc’s Yellowstone Mine: Community Days 2014.............................................68

MONTANA MINING

is published by DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 www.delcommunications.com President David Langstaff Publisher Jason Stefanik Managing Editor Katrina Senyk [email protected] Sales Manager Dayna Oulion [email protected] Advertising Account Executives Cheryl Ezinicki, Jennifer Hebert, Ross James, Michelle Raike Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director Kathy Cable Layout & Design Joel Gunter Advertising Art Caitlyn Hawrysh Haier, Dana Jensen

Cover photo courtesy of Holcim US/Trident Plant.

Ash Grove promotes legislation to preserve Montana jobs.........................................70 New innovations in geophysical mining exploration..................................................74 Graymont: Committed to working with government and the community..................76 Tintina Resources forges ahead..................................................................................80 Revett Mining Company, Inc.: Staying the course for 15 years, despite some changes..........................................................................................................84 Montana Resources, LLP: Securing the future.............................................................86 Preventing reportable leakage flow rates using new conductive geomembrane installation methods................................................................................................89 Local students win essay contest.................................................................................90 Mining in Montana: First-place winner.......................................................................91 Mining in Montana and how it will affect me in the future: Second-place winner....92 Modern-day mining: Third-place winner....................................................................93

© Copyright 2014 DEL Communications Inc. All rights reserved. The contents of this pub­lica­tion may not be reproduced by any means, in whole or in part, without prior written consent of the publisher. While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher­in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Powerful mine dewatering: Electric and diesel centrifugal pump options.................94 Report on the 2014 PDAC...........................................................................................98 Montana Mining Association membership application form....................................100 MMA student membership application form............................................................101 Montana Mining Association thanks members for their continued support.............102 Index to advertisers..................................................................................................106

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Montana Mining Association — Montana Mining 2014

PRINTED IN CANADA 05/2014

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Communications Inc.

Message from MMA President Matt Wolfe

Gaining momentum 2014 promises to be a year full of activity and excitement for the mining industry in Montana. A few of our producing members are already moving forward with expansion projects for their currently producing mines (Barrick Golden Sunlight, Stillwater Mining Co.) and several of our non-producing members are making important strides in the development of new projects. The Montana Mining Association (MMA) is excited to see projects like Tintina’s Black Butte Copper Project, Butte Highlands Joint Venture, and Garnet USA’s Red Wash Hard Rock Mine make the leap from exploration activities into operating plans and permits. The MMA is also closely watching and supporting the permitting of projects like Mines Management’s Montanore Project and Revett Mining’s Rock Creek Project. With new projects come new challenges in the permitting process and companies have to keep abreast of new and updated regulations; this is where the MMA has been – right in the middle of the regulatory and legislative process in Montana. On a more global scale, I believe the pendulum is beginning to swing back in support of metals and minerals exploration and production in North America. Political unrest, economic instability, environmental concerns, and increasing labor costs overseas have demonstrated in the past year that it is becoming more challenging for North American companies to operate international mines.

Water I would characterize the key activities for the MMA in the past year in two words: “water” and “water”. It is both interesting and crucial to understand that water (water rights, water management, and water quality) is the pre-eminent

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regulatory issue and most significant permitting challenge for a mining project in our state. Water can cause a mine that is feasible from every other aspect to become unfeasible if regulations cannot be met by available technology or if permitting meets a wall of negative public sentiment. One year ago, we were coming off of a legislative session where the MMA had sponsored and supported bills regarding water flow (non-degredation of water flow) and water rights (temporary leasing of water rights). During 2013 and into 2014, the MMA led the coalition of industry associations toward keeping the Department of Environmental Quality (DEQ) in check prior to the release of new numeric nutrient water-quality standards that will affect all current and future MPDES permittees. The MMA will continue to be engaged on important subjects with the potential to affect MMA members such as nondegradation water-quality rules and their implementation in discharge permits. In 2014, the MMA will be in the process of drafting legislation and creating alliances with other associations with regard to several water issues, in preparation for the 2015 legislative session. Not to be outdone by water regulations, threatened and endangered species concerns continue to be a challenge for mining companies and other industries in the state. Sage grouse is the most recent contender for public land rights. I have nothing against sage grouse; but common sense tells me that as long as sage grouse hunting is productive, access to sage grouse habitat should not be put on the “chopping block” for industry. The MMA is working with the American Exploration and Mining Association and other Montana industry groups to guide

Montana Mining Association — Montana Mining 2014

the state and federal policy regarding sage grouse habitat.

Opportunity As the Montana Mining Association, we have a growing opportunity to participate in the process of guiding state mineral policy into the future. With a concerted effort from mining companies, mining suppliers, mining communities, small miners and all Montana citizens who recognize the value of responsible development of Montana’s natural resources, I believe we will experience a resurgence of new mining activity in Montana in the coming years. Metal deposits of gold, silver, copper, nickel, platinum, palladium and molybdenum and mineral deposits such as talc, limestone, sapphire, garnet, tungsten, and coal are the foundation for Montana’s rich mining heritage, and will continue to be Montana’s foundation for a promising future of mining.

Montana Mining Statistics

I will leave you with a few interesting statistics about the mining industry in Montana, taken from a 2011 survey published by the National Mining Association: • Total number of mining operations 309 • Direct employment: 9,640 • Direct plus indirect employment: 24,200 • Annual average wage in mining $75,400 • Annual direct mining payroll $727M • Annual direct + indirect payroll $1.35B • Annual mineral production value $2.00B • Annual mining GDP $3.01B • Mining – % of Mont. GDP 7.13% • State and local tax contributions $279M

MMA Executive Director’s Message Tammy Johnson

Greetings: In preparation for writing this year’s executive director message, I pulled all the copies of the Montana Mining Association’s Montana Mining from my bookshelf and quickly lost track of time while combing through the magazines, beginning with the inaugural issue in 2007. After several hours re-devouring the articles in the magazines, I realized there was a common theme throughout the years – the message of hope and change. I now believe that President Obama borrowed from the Montana Mining Association his campaign rallying cry. We undoubtedly owned it and embraced it first. When our first magazine was published, Brian Schweitzer was our governor, Richard Opper was the director of the Montana Department of Environmental Quality, and Tim Smith (Montana Tunnels) had passed the president’s torch to Mike Mullaney (Holcim). Headlines in the first magazine included “A Glimpse of the Past with a Focus on the Future” and “Building on the Past to Meet the Needs of the Future.” The issue was rife

with optimism for the advancement of the mining industry, both in terms of new discoveries and projects that could come online, but also in terms of where the Montana Mining Association itself was headed. The Montana Mining Association was in the “throes of transformation” and had gained a “new lease on life.” In this business, optimism must reign supreme. And, perhaps just as appropriate, the more things change, the more things stay the same. In 2014, we still eagerly await the development of some properties highlighted in the 2007 magazine; but unbridled optimism was occasionally rewarded and we did welcome some new or increased development in the last seven years. In 2014, Golden Sunlight Mine has been permitted to expand its operations, Stillwater Mining is working on expansion and has been given necessary authority to conduct additional exploration, with our former governor as chairman of its board of directors. Garnet USA has been given the go-ahead from Montana’s DEQ and Tintina Resources received its

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Montana Mining Association — Montana Mining 2014

permit to conduct advanced exploration at its Black Butte Copper Project. The Mayflower Mine is seeing some activity on a small scale and we believe that the Butte Highlands Mine will have received its permits by the time this magazine is in your hands. The Montana Mining Association continues its growth and after seven years of hard work by its staff, the MMA Board of Directors, its committees, and its membership, transformation has indeed occurred and its prophesized ‘new lease on life’ is pretty secure. Your association should never declare that its mission is complete, as necessary transformation is always occurring (back to that change thing). The Montana Mining Association is in good shape and is poised to embrace the future with rampant optimism – even in the face of sometimes daunting situations. As perhaps only a temporary steward of the executive director position, I reaffirm my love of the industry and most importantly – its people. Some of the best people I know are affiliated with Montana’s mining industry and I count myself as most fortunate for being able to share my life and abilities with you. A very sincere and well-deserved “thank you” goes to the membership for the contribution of your time, talent, and money. The Montana Mining Association belongs to you, as does the credit for any success or advancements achieved. You are situated well to continue in your mission and during my tenure, I – along with the entire Environomics team – will do whatever we can to assist with necessary and inescapable change to keep the hope alive and burning. Salute!

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Montana Mining Association

Mission Statement

The Montana Mining Association (MMA) is a Montana trade association dedicated to helping mining com-

panies, small miners and allied trade members succeed, understand, comply and function in a complex business and

regulatory world. The primary purpose of the Montana Mining Association is to protect and promote the mining industry in the state. The Montana Mining Association monitors issues of concern and provides representation for its members at the state legislature and with various state and federal regulatory agencies. The Montana Mining Association supports national mining initiatives. The Montana Mining Association provides information and education for its members and distributes information

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to the general public about the contribution of minerals and mining to our economy and well-being. One of the MMA’s primary functions is to promote and enhance the image of the mining industry. The Montana Mining Association works in cooperation with other state

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and national mining associations, natural resource trade associations and groups with similar interests and needs. The MMA serves the industry on a wide range of subjects through the

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expertise of its members. Many of the MMA’s activities are conducted by various committees. The association has many active associates. Com­ mit­ tees within the association are health and safety (including the health and safety of employees within the association), education, membership and legislative (including environmental and land use and political action committee).

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Montana Mining Association — Montana Mining 2014

2014 Montana Mining Association Board of Directors Matt Wolfe, President............................................O (406) 932-8259 Stillwater Mining Company.....................................C (406) 321-0313 East Boulder Mine P.O. Box 1227 Big Timber, MT 59011 [email protected] Mark Thompson, Vice President.............................O (406) 287-2018 Barrick Golden Sunlight Mine.................................C (406) 533-5817 453 MT Hwy. 2 East Whitehall, MT 59759 [email protected] John Junnila, 1st Vice President..............................O (406) 373-6010 Westate Machinery Company P.O. Box 50370 Billings, MT 59105 [email protected] Hal Robbins, 2nd Vice President............................O (406) 442-5768 Bison Engineering....................................................C (406) 431-0249 1400 11th Avenue Helena, MT 59601 [email protected] Mike Mullaney, Past President................................O (406) 285-4970 Holcim (US) Inc. 4070 Trident Road Three Forks, MT 59752 [email protected] Paul Lammers, Secretary/Treasurer........................ C (208) 446-6370 Revett Mining Inc. P.O. Box 1660 Troy, MT 59935 [email protected] Ted Antonioli, Director..........................................O (406) 251-5148 Missoula, MT 59803 [email protected]

Nick Brundin, Director .........................................O (406) 285-5303 Imerys Talc 767 Old Yellowstone Trail Three Forks, MT 59752 [email protected] John Beaudry, Director..........................................O (406) 322-8700 Stillwater Mining Company 536 East Pike Avenue P.O. Box 1330 Columbus, MT 59019 [email protected] Mark Cole, Director...............................................O (406) 434-5583 Dick Irvin Inc. P.O. Box 950 Shelby,MT 59474 [email protected] Tad Dale, Director.................................................O (406) 496-3200 Montana Resources 600 Shields Ave. Butte, Montana 59701 [email protected] John Fitzpatrick, Director......................................O (406) 442-5032 Northwestern Energy 208 North Montana Avenue Helena, MT 59601 Fess Foster, Director...............................................O (406) 287-3261 Geological & Environmental Consultant 21 Paul Gulch Road Whitehall, MT 59759 [email protected] Julia Gwinn, Director............................................O (406) 683-3324 Barretts Minerals 8625 Hwy 91 South Dillon, MT 59725 [email protected]

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Montana Mining Association — Montana Mining 2014

Consulting Scientists and Engineers Providing Services to the Energy Industry Montana Offices: Helena 101 North Last Chance Gulch Suite 215 Helena, MT 59601 406.443.3556

Missoula 1120 Cedar Street Missoula, MT 59802 406.549.8270

Nathan Hunt, Director.......................................... C (406) 439-5362 Groundhog Mining Company P.O. Box 1467 Dillon, MT 59725 [email protected]

Doug Miller .................................................O (406) 295-5882 x222 Revett Mining Inc. P.O. Box 1660 Troy, MT 59935 [email protected]

Bob Jacko, Director...............................................O (509) 279-9690 Tintina Resources, Inc. White Sulphur Springs, MT [email protected]

Dennis Morelock...................................................O (406) 388-5815 Tri-State Trucking 200 Floss Flat Road, Unit 1 Belgrade, MT 59714 [email protected]

Dick Johnson, Director..........................................O (406) 442-8855 Ash Grove Cement 100 MT Hwy. 518 Clancy, MT 59634 [email protected]

Gene Nelson, Director...........................................O (406) 549-8856 Apex Abrasives 3926 Bellecrest Dr. Missoula, MT. 59801 [email protected]

Jim Liebetrau, Director................................... O (406) 563-8494 x11 AFFCO....................................................................C (425) 210-3653 1015 East Sixth Street Anaconda, MT 59711 [email protected]

Jared Senn, Director..............................................O (406) 266-5221 Graymont Western U.S. Inc. P.O. Box 550 Townsend, MT 59644 [email protected]

Wayne Lowman, Director......................................O (425) 251-6304 Tractor and Equipment Co.......................................C (425) 466-2297 Major Accounts Manager [email protected]

Jim Volberding, Director........................................O (406) 538-2501 ATNA Resources P.O. Box 799 Hilger, MT 59451 [email protected]

Robin McCulloch, Director.................................... C (406) 498-5440 Butte Silver Mines, Inc............................................ O (406) 299-3333 101 N. Main Street Butte, MT 59701 [email protected]

Laura Feist, Administrative Director......................O (406) 495-1444 Montana Mining Association...................................C (406) 490-4271 P.O. Box 5567 Helena, MT 59604 [email protected]



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Digital copy available online at www.montanamining.org

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The Montana Mining Association recognizes the following MMA committee members: Education Committee: John Beaudry Greg Gannon (Chair) Gene Nelson

Lisa Boettcher Jill Johnson Bruce Vincent

Mark Cole Tammy Johnson Matt Wolfe

Laura Feist John McCurry

Environmental Committee: Sadie Barac Chuck Buus Greg Gannon Bill Mercer John Parks Bob Vince

Lisa Boettcher Tad Dale Terry Grotbo (Co-chair) Dave Mott Hal Robbins Jim Volberding

Jeff Briggs Sean Everett Tammy Johnson John Nickel Grant Rodway Matt Wolfe

Nick Brundin Fess Foster Paul Lammers Doug Parker Mark Thompson (Co-chair)

Legislative Committee: Ted Antonioli (Chair) Jackie Clark KD Feeback Terry Grotbo John Junnila Bill Mercer Doug Parker Sonya Rosenthal Bruce Vincent

Sadie Barac Mark Cole John Fitzpatrick John Hinther Allan Kirk Doug Miller John Parks Laura Skaer Jim Volberding

John Beaudry Matt Ellsworth Fess Foster Alan Jocelyn Paul Lammers Gene Nelson Hal Robbins Nancy Schlepp Matt Wolfe

Jeff Briggs Larry Erickson Greg Gannon Tammy Johnson Jim Liebetrau John Nickel Bob Routa Mark Thompson

Membership Committee: Carole Armstrong John Junnila

Laura Feist Terry Larson

Jill Johnson Mike Mullaney (Chair)

Tammy Johnson Dustin Russell

Safety and Health Committee: Dave Armstrong Larry Goroski Lee Lundsford Linda Norvell Travis Shepherd Tyson Sweat

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Sadie Barac Trent Hahn Lori McCurry (Chair) Brian Page Smiley Smilovic Skylar Willard

Montana Mining Association — Montana Mining 2014

Mark Cole Megan Inman Mike McGivern Ben Roberts Pete Steilman Austin Wilson

Laura Feist Tammy Johnson Dirk Nelson Jared Senn Kelly Stolp (Co-chair) Matt Wolfe

MMA Ambassadors: John Beaudry

Nate Boyd

Mark Briggs

Bruce Clark

Dave Crabtree

Jerry Cummings

Nate Davis

Mark Dolan

Isaac Erickson

Laura Feist

Greg Gannon

Jerry Hanley

Donna Heikkinen

Miguel Hernandez

Clint Jensen

David Johnson

Jill Johnson

Marty Johnson

Tammy Johnson

Michael Koski

Shawn Lannen

John McCurry

Kevin Mitchum

Michael Moodry

Howard Morkert

Mike Mullaney

Brian Mullaney

Tina Nolevanko

Pete Onoszko

Jason Palin

Marty Talley

Bruce Vincent

Austin Wilson

Ray Winebark

Matt Wolfe

Leonard Wortman

• Shaft Sinking • Mine Development • Contract Mining

• Raiseboring • Raise Mining • Underground Construction

• Engineering & Technical Services • Specialty Services

Digital copy available online at www.montanamining.org

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Montanans want action By Webb Brown So many times we hear that resource development is “controversial” or folks are “split” on the issue. Well, once again, polling of Montana voters proves just the opposite. Last October, the Montana Chamber of Commerce conducted its annual business attitudes poll, known as the Power-Base or P-Base poll. P-Base is a statistically-valid survey of 800 Montana voters on a variety of business and political issues with a margin of error of plus or minus 3.5 percent.

Voters Pick Development In the poll, Montana voters maintain solid support for many of our major industries, including oil and natural gas, coal, mining, and timber. For each of these industries, when asked whether they would encourage and promote them because of jobs and economic benefits or discourage because of potential environmental impacts, they overwhelmingly chose the former – 78 percent for oil and natural gas; 71 percent for coal; 73 percent for mining; and 82 percent for timber. And this is not a new phenomenon. The last four years these numbers have been very similar. What politician or ballot issue advocate wouldn’t like to see those kinds of solid numbers?

Specific Practices Also Favored We also know folks can support a general concept and change their mind on specifics. So, the 2013 P-Base asked a series of questions of Montana voters to gauge support for business issues and concerns: • For this survey and last year’s, voters were asked whether they favor or oppose proposed EPA regulations that have caused coal-fired electric generation plants to close, while also making it more difficult to develop new ones. Voter opposition to these regulations actually increased from 52 percent in 2012 to 56 percent in the 2013 poll. Voter

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For each of these industries, when asked whether they would encourage and promote them because of jobs and economic benefits or discourage because of potential environmental impacts, they overwhelmingly chose the former – 78 percent for oil and natural gas; 71 percent for coal; 73 percent for mining; and 82 percent for timber. support decreased from 36 percent to 32 percent, with 12 percent uncertain. • The P-Base survey has asked Montana voters over the past couple years their opinion on developing the Otter Creek coal tracts and developing the railroad infrastructure to transport coal to markets. Voter support remained at 60 percent. Opposition also remained at 20 percent, with that same number of people unaware or uncertain. • This year’s P-Base asked a new question to measure voter support for policies that would open up Asian markets to Montana coal. A good majority of voters (53 percent) are in support, 33 percent oppose, and 13 percent are uncertain. • With states and some localities around the country banning hydraulic fracturing, the P-Base asked voters whether they think fracking should or should not be used in Montana. Despite efforts by environmentalists and Hollywood to sway public opinion against fracking, 59 percent of Montana voters support fracking while only 27 percent oppose – 14 percent were uncertain. • P-Base has been assessing voter opinion of constructing the Keystone XL oil pipeline across northeastern Montana to transport both Canadian and Montana oil to Gulf Coast refineries. Voter support remains strong at 63 percent, but decreased from last year’s high of 67 percent. Opposition increased from 24 percent to 26 percent, with 10 percent uncertain.

We Like Business Montanans also have a favorable opinion of business. Like past P-Base surveys,

Montana Mining Association — Montana Mining 2014

the 2013 poll asks a series of questions to gauge voter opinion and trust of the business community. When asked whether business can be expected to provide benefits to workers, 61 percent said yes, a decrease of nine percentage points from last year but right on par with previous years. Could this be related to the furor over Obamacare and the potential for business to lay-off workers and/or cut hours? Sixty-seven percent of voters also feel that business will do the right thing when it comes to protecting the environment. Again, two-thirds trust business in this important area. We’re going to work hard to keep and build that trust.

Sixty-seven percent of voters also feel that business will do the right thing when it comes to protecting the environment. Do Right, and Just Do It Overall, the 2013 P-Base survey of 800 Montana voters clearly demonstrates that they have a positive opinion of business and industry in the Treasure State of Montana. They support the creation of good-paying jobs through more natural resource development and they feel that prosperity does not come at the price of the environment and worker rights or benefits. We at the Montana Chamber will continue to pursue the development of the riches we’ve been given. And it’s obvious that Montanans in big majorities support us in doing that.

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2015 Legislative outlook By Tammy Johnson It has been over a year since the 2013 Montana Legislature adjourned. Constraints (due to publication timing of the 2013 Montana Mining magazine) precluded us from completing the story of the 63rd Montana Legislative session. To recap, the MMA was able to protect gains made in previous legislative sessions; we did not see the erosion of our ability to permit operations; and the Montana Environmental Policy Act was not tinkered with. Some gains were made in overall business climate and many onerous propositions were defeated. Overall, the status quo was maintained – which, given the number of proposed law changes, is a victory in and of itself. We won the battle and lost the war, so to speak, with SB 347, a key piece of legislation for the MMA. Introduced by

Senator Chas Vincent (R) Libby, SB 347 provided that flow is not significant under Montana’s non-degradation statues and rules provided that either a valid water right for beneficial use is held, or that the presumed change in flow does not significantly harm a fish population. SB 347 passed the House and Senate with a combined 104 “Yes” votes to 46 “No” votes. And yet, Governor Steve Bullock vetoed the legislation. Your association has been engaged throughout the interim, attending important committee meetings and rule hearings. The MMA continued its involvement with the Nutrient Work Group and continues to remain critically engaged as a numeric being considered. The MMA recently submitted written comments and offered testimony at the public com-

SERVING THE MINING INDUSTRY FOR OVER A CENTURY

ATTORNEYS Patrick Beddow Brian Bjella Lynne Boomgaarden Gary Broeder Alan Bryan Joshua B. Cook Joe Frick Christopher D. Friez Michael Green

Aimee Grmoljez Shane Hanson Brian Holland Ashley Jackson Denise Linford Chris Mangan Jr. Wade C. Mann Lori McMullen

Steven Milch Adam Olschlager Jeffery Oven P.Jaye Rippley Steven Ruffatto Mark Stermitz Chris Stoneback Elizabeth Varela

LOCATIONS BILLINGS 490 North 31st Street, Suite 500 Billings, MT 59101 Phone: (406) 252-3441

BOZEMAN 45 Discovery Drive Bozeman, MT 59718 Phone: (406) 556-1430

BUTTE 65 East Broadway, Suite 503 Butte, MT 59701 Phone: (406) 533-6892

HELENA 900 N. Last Chance Gulch Suite 200 Helena, MT 59601-6287 Phone: (406) 449-4165

KALISPELL 1667 Whitefish Stage Road Kalispell, MT 59901 Phone: (406) 752-6644

MISSOULA 305 South 4th Street E Suite 100 Missoula, MT 59801-2701 Phone: 406-523-3600

CASPER 152 North Durbin Street Suite 220 Casper, WY 82601 Phone: (307) 265-2279

CHEYENNE 237 Storey Boulevard Suite 110 Cheyenne, WY 82009 Phone: (307) 426-4100

SHERIDAN 101 West Brundage Street Sheridan, WY 82801 Phone: (307) 673-3000

BISMARCK 400 East Broadway, Suite 600 Bismarck, ND 58502 Phone: (701) 223-6585

WILLISTON 1311 9th Ave. NW 2nd Floor Williston, ND 58801 Phone: (701) 572-2200

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Montana Mining Association — Montana Mining 2014

ment hearings on the same. This issue is ongoing; the MMA will remain engaged and will continue to follow and participate in the process. The MMA has been in attendance at Legislative interim meetings of the Water Policy Interim Committee and the Environmental Quality Council, and participated as the Greater Sage-Grouse Habitat Conservation Advisory Council prepared its final recommendations, which currently rest on Governor Steve Bullock’s desk. The Sage Grouse Conservation Plan is another instance where the road is long and resolution is far off. We will continue to monitor and participate as necessary. Clearly, the work of the MMA on your behalf does not stop when the gavel comes down on any particular legisla-

tive session. Every day, efforts are made to represent your interests in political, policy and regulatory forums. The 64th session of the Montana Legislature will convene in Helena on January 5, 2015. We know little about the makeup of the 2015 Legislature, other than out of the 150 members, there are 25 holdover senators whose seats are not up for election. Montana voters will be checking off the boxes in the Primary election to be held on June 3rd and the general election will be held on November 4, 2014. In the meantime, and as of this writing, over 80 bill-draft requests have been submitted with general titles. Of those requested thus far, 27 need to be tracked by the MMA until we have language we can look at and can make a determination if the proposed legislation will affect the members of the Montana Mining Association. The Montana Mining Association (MMA) will be engaged in discussion with candidates and will be supporting pro-mining candidates through its PAC and individual member contributions. We will also make certain that our members understand which candidates support, as well as oppose, responsible mining in Montana. Between now and the opening of the next legislative session, MMA Legislative and Environmental committee members will continue discussions and deliberations. Working as a group and involving many members of the association allows us to understand if, or where, there is a need for change to Montana statute. Fundamental principles guide the work of the Legislative and Environmental committees. Those principles are: • Protect current position and previous gains; • Improve predictability and certainty in the permitting process; • Protect the industry’s ability to obtain and use water essential for exploration and development; • Protect our ability to access and fully develop our ore bodies; • Protect and enhance an overall climate conducive to conducting our business in Montana. It will be determined in the months to

come, whether or not the MMA brings forward a specific legislative agenda. Once the session convenes, there is plenty of work to accomplish, including developing relationships with Montana’s elected body; continuing and furthering relationships with others engaged in natural resource development; and tracking countless pieces of legislation that affect our membership, including land-use processes, taxation, corporate tax structure and rates, abatements or reductions

for pollution control equipment, environmental review, safety requirements, workers’ compensation, etc. Rest assured that the MMA will be fully engaged in the process and will be doing one of the most important jobs of the association – that of ensuring our lawful and responsible businesses cannot merely continue, but can also continue to thrive in Montana.

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2014 MMA committee reports MMA Safety and Health Committee update by Lori McCurry Mike McGivern, safety manager for Montana Resources, has served as the Safety and Health Committee chairman for the past two years. Lori McCurry, corporate safety manager for Stillwater Mining Company, assumed the position on January 1, 2014. Under McGivern’s guidance, the committee established the Safety Recognition Program to highlight the outstanding safety performance of MMA producer companies. The 2013 award recipients will be recognized in an awards presentation during the MMA Annual Convention in May at Fairmont Hot Springs. New this year will be additional recognition for those memberproducer companies that have worked injury-free for one year or more. The MMA also has many associate member companies (i.e., contractors who work side-by-side with our producer companies). The committee is exploring op-

portunities to recognize these valuable members’ commitment to working safely at next year’s convention. Additional information will be communicated as the program develops. In 2013, the MMA Safety Committee again coordinated a Certified Mine Safety Professional course through the International Society of Mine Safety Professionals, and several of our members completed the certification program. The Safety Committee continues its work for the advancement of the safety and health for mines and miners in Montana. Monthly conference calls and on-site quarterly meetings provide the opportunity for the sharing of knowledge and resources. The committee welcomes representatives from each of its member companies, both member-producers and associate members. Through participation, sharing and networking, we can enhance the protection of people, property and the environment.

MMA Environmental Committee update by Mark Thompson This has been a very exciting year for mine permitting activity. Major permitting actions have been approved by MDEQ for Barrick Golden Sunlight, Garnet USA, and Tintina’s Black Butte project. A fourth major action, the Highlands JV, is pending and should be issued shortly. It has been a long time since Montana has seen this many mine expansions, new mining operations or exploration licenses issued in such a short period of time. The MMA Environmental Committee has been tracking these permitting actions as the new permitting legislation passed in 2011 (SB 312 and SB 233) has been implemented. Certainly there were some transitional problems with these changes, but overall, it is believed that the new process streamlined several of these major actions. As with the prior year, the forefront of the committee’s efforts is working with

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Montana Mining Association — Montana Mining 2014

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the Montana Dept. of Environmental Quality (MDEQ) to resolve concerns related to the application of the Montana Clean Water Act’s provisions for non-degradation as they are applied to nutrients and other constituents of concern. Nondegradation standards can easily drive effluent limits in water discharge permits well below the limits of treatability. Many members of the MMA Environmental Committee have been meeting with representatives from MDEQ, including meetings with director StoneManning, to attempt to provide a reasonable path forward to new or expanding mining operations that may become subject to these limits. While the efforts appear to have fallen slightly short of expectations for the numeric nutrient criteria implementation, some assistance was secured in the guidance documents. MDEQ appears to be committed to continue to discuss possible means for resolution of the complications that the

non-degradation standard creates. While this has proven to be a long and complicated ordeal, it is an issue that is wellworth this committee’s effort, as new and expanded mining operations that need water-discharge permits deserve some predictability and clarity during the permitting process.

MMA Education Committee update by Greg Gannon First, an immense thank you to past committee chair Debbie Shea for her dedication and inspiration in getting the MMA Education Committee off to a great start the past couple of years. Last June, the committee selected Greg Gannon (from Holcim-Trident) to be the new committee chair. What is the purpose of the MMA Education Committee? During the past year, the committee amended and finalized their mission statement as follows: “The mission of the MMA Education Committee is to establish opportunities

and maintain programs that inform and educate in a manner that advocates the value of responsible mining in Montana.” With the focus of the mission statement, coupled with the direction from the MMA Board of Directors and Strategic Planning Sessions, the course of the committee is well-defined. The Strategic Planning Sessions have defined the committee’s main projects as the Ambassador Program and essay contest. Other noteworthy projects, as detailed below, include the MMA website, scholarships and outreach. The Ambassador Program is a great tool for the industry to promote our important business. The program is a presentation for a wide range of audiences to realize the impact that mining has made in defining our state’s history, and to share current and future facts of what is happening with the industry. We have trained representatives around the state who are ready to provide this presenta-

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Montana Mining Association — Montana Mining 2014

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tion to any interested party. Please contact the MMA office if you or anyone you know is interested in having the presentation hosted at a local event or school classroom. The statewide eighth-grade essay contest continued this past year. This year’s topic was, “What is the future of mining in Montana and what effect will that future have on me?” The top three contestants’ essays are published in the annual Montana Mining magazine and are also on our website at www.montanamining. org. The top contestants were Emily Plagenz and Greg Fulbright from Lewistown, and Savannah Fisher from Centerville. Similar to last year, the top three contestants have been invited to present their essays at this year’s annual meeting. If you get a chance, please take a moment to congratulate these contestants in person. We look forward to continuing this event this autumn; keep an eye and ear open and challenge your local schools, teachers and students to get involved. The Education Committee revamped the MMA website in 2012 and 2013. Additional efforts to keep the website updated as a useful tool for the association have continued to be an action item for the committee. The MMA has sponsored two scholarships at the Montana School of Mines (aka Montana Tech) for the past several years. This year, the committee was tasked with deciding how to award this important endowment to deserving students. The committee was able to define three awards as follows: two scholarships in the amount of $2,000 each to returning students, and one scholarship in the amount of $1,000 to a freshman student. The MMA awards the scholarships through a partnership with the Montana Tech Foundation, whereby we define the eligibility requirements and selection process. The scholarships are in memory of Gary Langley and Don C. Lawson, both longtime members of MMA and advocates for the mining industry. Please see the article related to this topic in this edition of the magazine, or for more information, contact the MMA office.

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Growing Recycling Business Catalytic converters contain palladium, platinum and rhodium that are also produced from our underground mines at Stillwater and East Boulder. Catalytic converters dramatically reduce the toxicity of air emissions from internal combustion engines that are found in most of the vehicles we drive everyday. About half of the world’s palladium and platinum production is used in catalytic converters. Stillwater Mining has sourced and recycled increasing volumes of spent catalytic converters since 1997. Our growing recycling business complements mine production and our reputation for environmental excellence. We continue to contribute to clean air for Montana and the rest of the world by mining and recycling platinum group metals. The ongoing recycling efforts are another example of efficiencies and sustainability initiatives deployed at Stillwater Mining Company.

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Another noteworthy activity that the committee is looking to improve is outreach and recognition of the MMA. For the past couple of years, the MMA has sponsored a booth at the annual “Digger Days” which is hosted by Eagle Mount in Belgrade. The event is a fundraiser for the non-profit organization to promote the construction and mining industries. We look forward to sponsoring a booth at the event again this August. The committee has begun attending the career fairs at Montana Tech. The goal is to gain MMA recognition with our industry’s future leaders and any member looking for employees is encouraged to let the office know so they can potentially help with initial footwork. MMA Education Committee membership includes Lisa Boettcher, Laura Feist, Tammy Johnson, Bruce Vincent, John McCurry, Jill Dove, Gene Nelson, Mark Cole, Matt Wolfe, John Beaudry and Greg Gannon. If you are interested in getting involved with this committee, please let the MMA office know.

MMA Membership Committee update by Mike Mullaney The MMA Membership Committee has been reorganizing this past year as our chairman, Mark Redfern, has retired. Mark has been very active in the MMA

over the last several years and his contribution to the MMA board and membership committee is much appreciated. We wish Mark a happy retirement and thank him for his many years of dedication. With the change, Mike Mullaney has taken on the new role as chairman with the assistance of the MMA staff. Through 2013, MMA membership has remained relatively flat. We are currently focusing our efforts on the top 10 or 20 vendors at our mine sites to encourage them to join the MMA if they are not currently members. This is a very important area on which to focus as we seek to increase the MMA membership roster. We appreciate MMA producers and vendors for their assistance and are optimistic about the outcome. One of the primary objectives of our committee’s strategic plan for 2014 is to encourage the purchasing agents, located at our member’s mine sites, to join and participate in assisting the membership committee in growing the Montana Mining Association. Purchasing agents are the individuals who are most often in contact with suppliers and are the firstline ambassadors for the Montana Mining Association recruiting team. Also included in the 2014 strategic plan was the development of a mission statement specific to the Membership

Committee. The new MMA Membership Committee mission statement is: The Montana Mining Association (MMA) membership committee ensures communication tools are in place to educate people as to the role minerals play in their quality of life and that there is value in being a member of the MMA. This value is created through the active engagement of the MMA committees and staff. Through communication of this value, the membership committee endeavors to increase membership on a yearly basis. Producers and suppliers involved in the industry are a high priority for the MMA. Another project, which the committee is currently spending some time on, is a new idea for a MMA calendar contest. Conceptually, this contest will involve children in four age groups completing a drawing in any medium portraying why mining is important. This contest will potentially be open to all children throughout the state. We will solicit entries through the MMA membership and notices to the public and schools later this year. Final plans and determinations for this project have not been finalized. The membership directory is in need of updating. As the committee revisits the directory, we are looking at moving to an online version that can be managed better, will ensure that our much-

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tinues to meet monthly via conference call. Typically meetings are held on the third Wednesday of the each month at 1:00 p.m. Current committee members included Ted Antonioli, Sadie Barac, John Beaudry, Jeff Briggs, Jackie Clark, Mark Cole, Matt Ellsworth, Larry Erickson, K.D. Feeback, John Fitzpatrick, Fess Foster, Greg Gannon, Terry Grotbo, John Hinther, Alan Jocelyn, Tammy Johnson, John Junnila, Allan Kirk, Paul Lammers, Jim Liebetrau, Bill Mercer, Doug Miller, Gene Nelson, John Nickel, Doug Parker, John Parks, Hal Robbins, Bob Routa, Sonya Rosenthal, Laura Skaer, Nancy Schlepp, Mark Thompson, Bruce Vincent, Jim Volberding and Matt Wolfe. There is never a shortage of topics to cover during meetings, which include updates of permitting issues at member properties, current and upcoming proposals for changes to federal and state laws or rules, identification of problems

appreciated members are always listed in a timely fashion rather than waiting for a print edition to occur every two years, and will allow for more information to be included about our valued members. If there are other ideas on how to improve the directory, please contact the MMA staff. The membership committee is always looking for new members and those who would like to become active in assisting the MMA to become a larger and more successful organization. If you would like to get involved, please contact the MMA office by email (info@montanamining. org) or phone 406-495-1444. We thank all of those people who are involved with this committee and appreciate their commitment and hard work.

MMA Legislative Committee update by Ted Antonioli The MMA Legislative Committee, led by Ted Antonioli as chairman, con-

or opportunities to make gains for Montana’s mining industry, and of course, the discussion of ideas for specific legislation. The attitudes of the public toward the natural resource industries is one of the topics of the P-Base Survey conducted every year by the Montana Chamber of Commerce. This poll asks some of the same questions each year and publishes data on the geographic and demographic distribution of the sample, which provides us a degree of confidence that the polling is unbiased. For 2013, 73 percent of the sample was supportive of more mining, while 19 percent favored more environmental restrictions on mining. Public support for the mining industry remains very strong – no doubt based on the economic benefits the industry is seen to provide. On the other hand, a major annual survey of attitudes toward Montana as a venue for mining investment conducted

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by the Fraser Institute demonstrates that Montana faces challenging perceptions in attracting mineral exploration and mining investment. As in past years, Montana ranks very low on such measures as our regulatory environment and consistency of enforcement. This ranking undoubtedly stems from the problems that gold mining companies had with obtaining permits in the 1990s, and the seemingly interminable delays that the Rock Creek and Montanore copper-silver deposits have faced bringing mines into production. Developing legislation to improve the permitting process is a long-term project of the legislative committee. Water, in terms of both quality and quantity, seems to be a focal point for many discussions, second only to permitting updates and concerns. No specific pieces of legislation have been drafted or formalized yet, but further consideration will be given as ideas turn to specifics in the months leading up to the 2015 Mon-

tana Legislative Session. The MMA Legislative Committee has its finger on the pulse of the interim activities between the sessions, ensuring appropriate MMA presence and commentary throughout the process. In addition, a recent focus of the Legislative Committee has been to initiate an evaluation of the mineral potential of the areas proposed as wilderness in bills under consideration in Congress, as well as to evaluate potentially negative impacts on exploration access that could result from any program to remove roads outside designated wilderness areas. Fundamental principles guide the work of the legislative and environmental committees. Those principles are: • Protect current position and previous gains made in previous years; • Improve predictability and certainty in the permitting process; • Protect the industry’s ability to obtain and use water essential for exploration and development;

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Montana Mining Association — Montana Mining 2014

• Protect our ability to access and fully develop our ore bodies; • Protect and enhance an overall climate conducive to conducting our business in Montana. The Montana Mining Association’s MINE PAC’s activities are under the umbrella of the Legislative Committee in the form of a subcommittee. The MINE PAC is actively tracking and participating in the 2014 election cycle to do what it can to make certain candidates are elected that support Montana’s important mining industry. If you have a desire to support the great work of the Legislative Committee through your participation, please contact the MMA office or any committee member. The work done by the committee is important to our collective future. Please raise your hand if you’re interested and at the least, say thank you to the committee members who work hard on behalf of all members of the association.

Tribute to Ernest K. Lehmann (1929 – 2013)

in recognition of professionalism and contributions to the mining industry By Tammy Johnson There’s an old saying that you never get a second chance to make a first impression. Well, Ernest Lehmann never needed a second chance. Admired by family, friends and colleagues for his honesty, integrity and perseverance – and his ability to tell a tale – he was a quietly generous and caring man who will be greatly missed. Ernie was widely regarded as perhaps the most knowledgeable person on mineralogy and minerals. He was a tireless advocate for responsible development of all mining projects, and was a wellknown and well-respected gentleman. An exploration geologist whose lifelong work in the mining industry took him around the globe, his accomplishments include the discovery of significant metal deposits in North and South America. He contributed his time and talents to professional organizations such as SME, AIPG and the Northwest Mining Association (now known as American Exploration and Mining Association), and was a long-time member of the Montana Mining Association. He was a registered (licensed) professional geologist in four states. Eighty-four-year old Ernest Lehmann, often referred to as the grandfather of copper mining, was born in Germany and emigrated to the U.S. with his parents in 1935. His career in the mining industry began in 1950, when he worked as a miner and

then geologist at a gold mine in Bannack, Mont. From 1951 to 1958, Ernie was employed by Kennecott Copper (Bear Creek Mining) in exploration, serving in 1957-58 as assistant district geologist for the Midwest District. His Kennecott employment was broken by a two-year stint in the U.S.

Ernest Lehmann in 1950 in Bannack, Montana. Photo believed to be taken when Ernie worked a summer for the Signal Mining Company – probably the summer between his junior and senior year at college. It was Ernie’s first mining job and he barely made enough to get back and forth from the East Coast to Montana.

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Army Corps of Engineers, where he served as a terrain intelligence analyst and engineer intelligence NCO. Ernie started his consulting practice, Ernest K. Lehmann and Associates, in Minneapolis in 1958, and continued it to the present, focusing on managing and executing mineral exploration, mineral deposit evaluation and mineral deposit development. During his career, Ernie worked extensively in North America, Latin America, Africa and Europe for mining companies, trading companies, private investors, land-owners and private and international financial institutions, seeking, developing and/or evaluating a wide range of metallic and industrial mineral deposits. Later in his career, Ernie established Vermilion Gold, an earlystage gold exploration company with a land position of over 17,500 acres in the highly prospective Archean Greenstone Belts underlying the Minnesota-Ontario Gold Border Region. Vermillion also holds gold prospects in Montana for future exploration.

Whatever your mountain…

Tap ‘er Light Drilling holes into hard earth; packing dynamite into walls that hold untold tons of rock above you – it takes finesse not to bring the mountain down upon you. “Tap ‘er light” became the miners’ amen and hallelujah. The comment evolved into a greeting when they passed each other to and from the mine. “Tap ‘er light” was an encouraging way of saying “Have a good shift.” (The preceding paragraph is credited to Headframe Spirits of Butte, America.) I’m glad I’m on your shift! Tap ‘er light, my friends; tap ‘er light! I’ll hold the drill rod. We will greatly miss you, Ernie. Ernest Karl Lehmann, age 84, of Minneapolis and the world, died peacefully at home on December 13, 2013. Ernie is survived by his wife of 60 years, Sally Willius Lehmann; brother Wolfgang (Odette); four children: Fred (Mary); Kate (Salete Avila); Charlotte; Walter (Sylvia Strobel); grandchildren: Emelia and Webster; and several nieces and nephews. Photos courtesy: Kate Lehmann.

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Pacific Steel & Recycling’s corporate office.

Pacific Steel & Recycling gives old metals, electronics and other products a new lease on life By Nancy Kessler Trading animal hides and furs is a far distance from selling and recycling steel, but that’s the road traveled by Pacific Steel & Recycling in more than 130 years

of business. What started as a one-man operation by Joe Thiebes in Spokane, Wash., in the 1880s is now based in Great Falls, Mont., an employee-owned

company with 46 branch offices in nine states and in Alberta, Canada. Pacific Steel & Recycling is a major scrap recycler and purveyor of new steel

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Montana Mining Association — Montana Mining 2014

Kalispell: 1093 Rose Crossing Kalispell MT 59901 T: 406-755-9242 TF: 866-835-6660 F: 406-755-9247

Missoula: 7372 Interstate Place Missoula MT 59808 T: 406-728-7336 TF: 800-895-5909 F: 406-728-7630

“Our R2 certification will play a key role with our customers as we move forward,” Nolevanko states. “We’re breaking ground in this sector. We’re pro-active about environmental compliance, and the mines are too. It’s the same culture and it’s important to promote it.”

Aljon 580 Baler in Bozeman, Mont.

and agricultural products. It also is a major player in Montana’s mining industry – and, in fact, works with a dozen mines in the state and almost 80 mines in the region. “Servicing the mining industry is one of our core businesses,” says Tina Nolevanko, corporate development coordinator. “It’s an ideal match. They generate scrap and purchase steel.” Scrap metal is generated through maintenance work in a mine’s corrosive environment, with the need to replace metal catwalks, steps, equipment and more. Pacific Steel & Recycling offers on-site service, bringing in bins and cutting up old equipment that is too heavy to haul away in one piece. They recycle all types of metals, such as steel, aluminum, copper wire and brass, as well as Digital copy available online at www.montanamining.org

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Pacific Steel & Recycling’s metal shredder.

vehicles, catalytic converters and radiators, processing hundreds of thousands of tons of ferrous and non-ferrous scrap metal each year.

Along with paper and fiber recycling, the company is now offering “e-recycling,” helping companies dispose of old electronics while handling data securely.

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Montana Mining Association — Montana Mining 2014

Missoula 203 Trade St. Missoula, MT 59808-1655 PH: (406) 549-6165 FAX: (406) 728-2830 [email protected]

Pacific Steel & Recycling obtained R2 Certification, meeting stringent standards relating to environmental, health, safety, and security aspects of electronics recycling and assuring that toxic materials are managed safely and responsibly all the way to final disposition. “Our R2 certification will play a key role with our customers as we move forward,” Nolevanko states. “We’re just a couple of years into it and we’re breaking ground in this sector. We’re pro-active about environmental compliance, and the mines are too. It’s the same culture and it’s important to promote it. That’s why it’s a good fit: we help them meet compliance standards.” Last year, Pacific Steel & Recycling opened a new facility in Lockwood, Mont., near Billings, with both a scrapmetal shredder and upgraded downstream sorting system, and a Metso Lindemann LUC1025 stationary shear. This state-of-the-art technology – the first and only in Montana – increases efficiency and is strategically accessible by both truck and railroad lines for receiving raw goods and shipping out recovered metals. Moving from end use to new use, Pacific Steel & Recycling provides new steel

“I see the benefits to the state and to the company from mining,” Nolevanko states. “As an ambassador, I work to inform our employees on why this industry is important to all of us. Mining is a real point of interest for me – I’m passionate about it, I find it fascinating, valuable, and I believe in it.” products and steel processing for mining customers and others. The company runs stocking programs at several mine sites for frequently needed items such as flats, angles and channels. Through its warehouse distribution centers, the company sells other new steel items, and also processes those items with plasma- and flame-cutting, shearing, press-braking, drilling, tube- and rebar-bending and more. The number of new steel items sold by Pacific Steel “is vast,” Nolevanko says. But providing new products and safely disposing of obsolete material aren’t the only business benefits for Pacific Steel. “Working with the mines has enhanced our safety program,” she states. “In addition to our internal/OSHA program, we offer MSHA training to select employees, and that benefits all of us.” The company’s written safety commitment states its mission is “to meet and exceed regulatory requirements,” and pledges to “work collaboratively to bring sustainable, market-driven and innovative solutions, making our facilities safer and healthier for people everywhere.” Ultimately, says Nolevanko: “If we cannot do it safely, then we will not do it at all.” Everyone at the employee-owned company is committed to developing long-term, successful relationships with customers, and being an integral part of their local community. For Nolevanko, who has spent 24 years in the industry, that included becoming an ambassador for the Montana Mining Association while working at Pacific Steel & Recycling. “I see the benefits to the state and to the company from mining,” she states. “As an ambassador, I work to inform our employees on why this industry is impor-

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Pecking orders Much at stake as groups debate alleged sage grouse endangerment, restrictive land-use policies and other matters By Rebecca Colnar

The question on many Westerner’s minds, especially those involved in the natural resource industry, is whether the Greater Sage Grouse is going to be listed as a threatened or endangered species by the U .S. Fish and Wildlife Service (USFWS) by September 2015. Comments abound that the Greater Sage Grouse could well be the “Spotted Owl of the West on steroids”. As many may recall, the listing of the Spotted Owl decimated the logging industry in the Northwest, leaving behind a trail of lost jobs, shuttered houses and dying towns. (Disturbingly, it was discovered years later that the Spotted Owl was not even close to being endangered.) Take a look at the USFWS maps of where sage grouse exist today. Eastern Montana, the area with the most potential natural resource development, has heavy nest and lek densities. (A lek is an

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area where male birds gather to engage in competitive displays to attract visiting females birds.) In 2013, Governor Steve Bullock wisely determined that before federal agencies make the decision to list the Great Sage Grouse, Montana needed to develop a sage grouse management plan, a move that was applauded by industry leaders. Thus the Sage Grouse Advisory Committee was formed with stakeholders from the natural resource industry, agriculture, environmental groups, the Montana Legislature and state agencies. Although some organizations weren’t on the committee, many became deeply involved, like the Montana Petroleum Association (MPA). “When you study the map, you’ll notice the sage grouse habitat covers the bulk of the oil- and gas-producing areas, with the exception of the northeastern corner of the state, which is where

Montana Mining Association — Montana Mining 2014

all the Bakken development is taking place,” notes Dave Galt, executive director, MPA. “The worry is that oil and gas development will be hamstrung by a listing. Most of the birds’ critical habitat is right there on our best places are for oil and gas exploration and development.” Galt explains the oil and gas industry has been at the table discussing conservation strategies with government agencies and stakeholders. “It was discouraging that the previous administration in Montana did not take a proactive initiative when there was talk about the bird possibly being listed. However, Governor Bullock has responded to our and other stakeholders’ requests [to] take a look at the Montana plan for the conservation of sage grouse. It’s currently on his desk,” notes Galt. The governor can approve the plan, reject the plan, or anything in between. (Note: At the time of this publication’s printing, the governor had not yet made comments on the plan.) The plan identifies what’s called the Core Population Area and General Habitat and discusses what kind of development and activity could be allowed. In the core area, you are only allowed to disturb five percent of the surface, but in addition, there are also buffer zones to consider around the breeding grounds. Montana Fish, Wildlife and Parks (FWP) has said Greater Sage Grouse populations in Montana are stable and strong. There is still a hunting season for sage grouse, Galt explains, which means it can’t be at that great a risk of becoming endangered. Cary Hegreberg, executive director for the Montana Contractors’ Association, also sees irony in the fact that the

“In Wyoming, there was a diverse group of interested parties who came together with the primary intent of making this work, with the goal of conserving sage grouse while at the same time not destroying the economy of the state. That’s a critical component that’s often missed,” Brown states.

USFWS would like to list sage grouse as an Endangered Species, yet hunting is permitted. “In industry circles, one of the one of the common observations is the fact that hunting is still a part of the mix in the plan submitted to the governor. I personally am an avid upland bird hunter, but I find it hypocritical to impose massive land-use restrictions, yet still let people hunt them. You can bag two birds per day. There has to be some inside politics involved in those discussions.” Hegreberg points out that predators – such as ravens (they love the chicks and eggs), coyotes, etc. – are a huge prob-

lem. “Minimizing the predation problem seems to be a relatively easy solution,” he says. “From the outset, it appears that land use has gotten an unfair burden in sage grouse stabilization and/or recovery efforts.” For contractors, extremely restrictive land-use plans would greatly affect the ability to have open cut (gravel) mines. A number of MCA’s members have sand gravel business as part of their construction enterprises. “Sage grouse management constraints being suggested would impact sites, and restricting noise levels is of great concern to contractors,” Hegreberg notes. “You have to disturb the land

when you mine, and crushing gravel is a noisy enterprise. It remains unclear how those noise restrictions would impact specific gravel operations, but safe to say it would be severe in some cases.” Mark Lambrecht is executive director of the Treasure State Resource Industry Association. Many of his members – TSRIA represents oil and gas, hard rock and coal, transportation and construction, as well as and other industries – were involved in the development of the plan. They collected comments from their members and found common themes which they highlighted for the Sage Grouse Advisory Council.

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Those themes include: No Surface Occupancy: In Wyoming, one can operate .6 miles from an active lek; the Montana plan has no surface occupancy as one mile from an active lek. “We believe the USFWS recommendation that the no-surface occupancy limit be expanded in Montana was based old research and data. A study in 2013 determined a 2011 report (which USFWS referenced for its recommendation) made an erroneous assumption that a temporary disturbance can cause a permanent decline,” states Lambrecht. “The no-surface occupancy expansion will significantly impact natural resource development – particularly for oil, gas and coal. Mine development would need to leave significant mineral reserves in the ground to avoid core areas. This has the potential to completely eliminate new mining activity.” Density disturbance: The Wyoming plan has a density disturbance limit and provides a clearer definition. The Montana plan has a five percent disturbance limit in those areas, but doesn’t determine how it’s calculated. Noise limits: There is a 10 decibel limit over ambient between 6 p.m. to 8 a.m. during breeding and nesting periods. (Keep in mind a whisper is 15 decibels.) It’s very difficult to not have noise when doing business, whether it’s construction or mining. It’s thought the noise would prevent successful nesting and breeding. Grouse Oversight Team: The Montana plan calls for a

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“What is most concerning is there is no flexibility with the listing to have a species as threatened in one place but not another. For instance, there is no luxury of saying sage grouse populations are strong in the Malta area, but not Powder River Basin; they can’t split the listing thanks to a lawsuit brought on by environmental groups.” ~ Richard Brown grouse oversight team to implement its provisions. The MPA believes this team should consist of those who have the authority to implement the plan, including the governor, his natural resource advisors and the permitting agencies, including the Montana Department of Environmental Quality, the Montana Department of Agriculture and the Montana Natural Resources and Conservation. Gary Forrester, who handles government affairs for MDU Resources, says the energy industry has hundreds of millions of dollars invested in resource development. MDU’s resources include wind turbines and oil and gas wells. Stringent restrictions on noise and land use would harm their ability to provide affordable energy to their customers. “One of the greatest problems will be the noise limits that may be imposed,” Forrester explains. “The noise limit is supposed to be 40 decibels above ambient. Ambient is taken at sunrise before the wind starts, and there is a lot of wind all the time in eastern Montana. So if you take a reading in the morning, then you can’t exceed 40 decibels above that. If the wind is 20 decibels and you’re operating heavy equipment and a crusher, it’s going to be tough to not exceed 40 decibels.” He explains that so far, 975 leks have been identified, and even if industrial activity is taking place more than a quarter of a mile from an active lek, it doesn’t take long to meet 40 decibels above ambient, causing activity to be very limited. Other restrictions include a reduction in hours or operation from March 15 to July 15 – one can only operate between 8 a.m. and 6 p.m., but a typical gravel operation runs 24 hours per day. “You will only be able to have one 10-hour shift. You can’t disturb a lek, nest or brooding area, which completely reduces the time you can work. These hourly restrictions

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make it tough for anybody to operate,” Forrester says. Forrester notes the Wyoming Sage Grouse Plan looked at the industrial areas prior to drawing core boundaries and drew those boundaries outside of those core areas. However, the Montana plan did not take into account any of the industrial areas. “Our Cedar Creek Mine is now in a core area, and that should have been excluded as it was already in operation,” says Forrester. “We have more than 1,000 oil and gas wells, windmills, natural gas storage fields. It’s really tough that these existing activities weren’t excluded in the Montana plan.” Forrester notes that the plan is restrictive for all industries, but with oil and gas, the footprint is smaller than with mining. “This is going to be particularly troublesome for mining and construction, too.” Great Northern Properties is not a mining company, but it owns 20 billion tons of mineable coal reserves in eastern Montana and western North Dakota; therefore, stringent restriction in mining would greatly affect the company, which was formed in 1992 when BNSF sold off its minerals. “A representative from our company attended many of the Sage Grouse Advisory Council meetings, visited with members and filed comments, so we have been active,” says Rich Southwick with Great Northern Properties. “We have kept our finger on the pulse, offered constructive input and now we’re waiting to see what the governor’s office issues.” Similarly to Forrester’s observations, Southwick indicates that the no-surface occupancy requirement the sage grouse council developed around the leks would make developing a coal mine very difficult. “Even Montana FWP has

Montana Mining Association — Montana Mining 2014

indicated they’ve only inventoried 60 to 70 percent of the leks, and they are expecting the lek density to be even higher than the maps show.” Southwick says one component of the Montana sage grouse strategy should be mitigation banking. “The Western Association of Fish and Wildlife Agencies (WAFWA), in cooperation with affected energy interests, developed a conservation plan to forestall listing of the Lesser Prairie Chicken (LPC) in the five-state area it inhabits. That plan is similar to the plan developed for sage grouse in Montana but includes a mitigation banking component, which provides for offset mitigation where development would impact LPC habitat. Under the LPC conservation plan, if those interested in energy development propose to develop oil, gas or pipelines, this program provides offset mitigation with a 2:1 ratio. That’s an excellent template,” he says. Great Northern Properties supports the conservation efforts to support sage grouse in Montana, and the population in Wyoming and Montana, which have 60 percent of the sage grouse population, are stable. “If the U.S. Fish and Wildlife Service feels that the sage grouse is worth protecting, they need to talk about how to make sure that occurs. That means we need to start compensating private surface owners for growing sage grouse,” he says. According to Wyo-Ben’s vice-president of resources, Richard Brown, the sage grouse issue is a runaway train heading down the tracks with a train wreck at the end of it, and most folks understand it’s going to happen. “Montana has been told by the U.S. Fish and Wildlife Service that if they have a good plan, perhaps listing won’t be necessary, but that is not necessarily true,” he says. “It’s

Lambrecht asks, “Why does the Montana plan have to be more stringent when we share the same border and the same sage grouse population?” hard to imagine a scenario where listing the Greater Sage Grouse as threatened or endangered will not occur by 2015.” “Sage grouse are everywhere; the Wyoming plan was created eight years ago under Wyoming governor Dave Freudenthal. The current Wyoming governor, Matt Mead, signed an executive order to continue the plan. The Wyoming sage grouse implementation team has been finetuning the plan to make sure it works over a period of time,” adds Brown. “In Wyoming, there was a diverse group of interested parties who came together with the primary intent of making this work, with the goal of conserving sage grouse while at the same time not destroying the economy of the state. That’s a critical component that’s often missed,” Brown states. Brown believes although the Montana plan is unique to the Treasure State, it contains good elements from the Wyoming plan; however, despite the hard work of all of the states on their plans, he believes that the sage grouse will still be listed as either a threatened or endangered species. “The three choices they have are basically not listed, threatened or endangered… with, of course, endangered being the most restrictive,” Brown says. “What is most concerning is there is no flexibility with the listing to have a species as threatened in one place but not another. For instance, there is no luxury of saying sage grouse populations are strong in the Malta area, but not Powder River Basin; they can’t split the listing thanks to a lawsuit brought on by environmental groups.” Brown says the decision made by Judge Molloy said the USFWS has to make the determination of all or nothing. “It’s too bad because data

is just coming out of Wyoming after eight years on how their conservation plan is working on sage grouse. As studies first start coming out, you can’t use just one study. No one researcher will get entire story; the research takes a while to do.” One unfortunate recent example of the agencies not listening to people is the Lesser Prairie Chicken – which is now listed as threatened – despite significant hard work on a conservation plan across the board. “The state governments, non-governmental organizations, private industry and others interested in keeping the Lesser Prairie Chicken from being listed spent a lot of time and money to form a plan,” Brown explains. “They came up with a plan, floated it past the USFWS, and just about the time they did that, the USFWS listed the bird. The indications are they will use the same plan this group developed in order to manage this “threatened’ species, then instead of local control, it’s managed out of D.C. Industry leaders have expressed

consternation that although representatives from the USFWS sat at the table through all of the advisory council meetings and heard from the all of the concerned parties, they waited until the last minute to come up with 13 objections to the Montana plan. “These should have been raised much earlier,” states Lambrecht. “We don’t believe Montana should be treated any differently than Wyoming because the USFWS already approved the Wyoming plan, which is less stringent than Montana’s. Why does the Montana plan have to be more stringent when we share the same border and the same sage grouse population?” Forrester believes that no matter what decision is made, the whole thing will be headed to court. “If the sage grouse is listed and business is threatened, it will end up in court. If the bird isn’t listed, the environmental groups will take the decision to court. Either way, sage grouse are headed to the court room.”

Digital copy available online at www.montanamining.org

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Sweeping land-use restrictions and prohibitions in BLM/USFS Draft EISs for sage-grouse threaten U.S. mining and the economy in 11 western states Unprecedented attempt to limit multiple-use on public lands – the ‘Spotted Owl on steroids’ • Background: The Bureau of Land Management (BLM) and the U.S. Forest Service (USFS) draft Land-Use Plan Amendments (LUPA)/draft Environmental Impact Statements (EIS) Preferred Alternatives in Nevada, Idaho, Utah, Montana and Wyoming endorse land-use restrictions and prohibitions that will severely impede and even prohibit a wide range of responsible uses of nearly 60 million acres of public lands with sage-grouse habitat in 11 western states. • BLM and USFS are inappropriately using concerns about a potential listing of the Greater Sage-grouse as a threatened or endangered species under the Endangered Species Act to assert a need for widespread land use restrictions – including withdrawing over 17 million acres from operation of the U.S. Mining Law. • BLM/USFS have exceeded their statutory authority by proposing actions that fail to comply with the National Environmental Policy Act (NEPA) and violate: • The Federal Land Policy Management Act (FLPMA) • The General Mining Laws • The Mining and Minerals Policy Act of 1970 • The National Forest Management Act (NFMA) • The Endangered Species Act (ESA) • The Data Quality Act

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Montana Mining Association — Montana Mining 2014

• The preferred alternatives are not based on the best available science and commercial data. BLM continues to rely on A Report on National Greater Sage-Grouse Conservation Measures released on December 21, 2011 from the Sage-Grouse National Technical Team (NTT Report) despite at least two independent studies that demonstrate it is based on flawed science, methodological bias and a lack of reproducibility; mischaracterizes previous research; contains substantial errors and omissions; lacks independent authorship and peer review; includes invalid assumptions and analysis, and inadequate data. • Two subsequent reports prepared by the USGS and the USFWS (other DOI agencies) undermine the one-sizefits-all approach in the NTT Report. • The agencies’ focus on new regulatory mechanisms instead of better implementation of available regulatory mechanisms and private conservation efforts with assurances suggests that the real purpose is NOT sage-grouse conservation. Rather, the so-called conservation measures are designed to: • Find another way to implement the draconian land use restrictions in the aborted Wild Lands Policy and Secretarial Order 3310.

• Dramatically reduce and even prevent mining, energy development (both conventional and renewable), grazing, and multiple-use of public lands. •The conservation measures in the DEISs are more draconian than the restrictions that would result from an ESA listing of the species. • They inappropriately focus on regulating anthropogenic activities to reduce threats to sage-grouse habitat despite evidence that these uses have a relatively minor and sometimes beneficial impact on sage-grouse and ignore the No. 1 threat: WILDFIRE AND INVASIVE SPECIES. • The conservation measures in the DEISs elevate sage-grouse conservation above other resources in contradiction of the Federal Land Policy and Management Act of 1976 (FLPMA) §102(12), which states: The Congress declares that it is the policy of the United States that the public lands be managed in a manner which recognizes the Nation’s need for domestic sources of minerals, food, timber, and fiber from the public lands including implementation of the Mining and Minerals Policy Act of 1970. • Further restricting access to important mineral deposits and energy resources will result in thousands of lost jobs and an increased reliance on foreign sources of critical and strategic minerals and energy. • The DEIS documents are fatally flawed because they do not analyze this impact.

• Congress must prohibit BLM/USFS from finalizing the EIS and amending Land-Use Plans covering 11 western states, and USFWS from making a listing decision until the above questions have been answered. • Congress should demand a general consensus on what constitutes Best Available Science for both Greater Sagegrouse populations and Greater Sage-grouse habitat conservation. • Congress must not allow the court-ordered September 2015 listing determination deadline in the backroom settlement of the multi-species lawsuit to force a premature decision that is based on poor science, insufficient evidence of the conservation achievements throughout the west, and a legally flawed NEPA analysis to amend the Land-Use Plans. AEMA Policy Statement: We share the goal of conserving the Greater Sage-grouse to make an ESA listing unnecessary. However, the BLM/USFS proposed sage-grouse conservation measures will severely reduce mineral exploration and development and other multiple-uses of public lands by upending federal land management statutes through administrative fiat to nullify the multiple-use mandate in FLPMA and rights under the Mining Law to enter, use, and occupy public lands to explore for and develop minerals.

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• Because Greater Sage-grouse habitat covers nearly 60 million acres in 11 western states, the proposed land-use restrictions and prohibitions will cause economic devastation to communities across the west – just like the Spotted Owl caused in the Northwest but on a much larger scale. • The DEIS documents are fatally flawed because they do not analyze this impact. • Congress needs to assert its legislative and oversight authority to determine: • If the 2010 Warranted But Precluded determination, the 2011 NTT Report and the 2013 COT Report represent the best available science and commercial data and comply with the Data Quality Act; • Why BLM is ignoring Manual 6840, Special Status Species Management (December 2008) and developing a new set of conservation measures and regulatory mechanisms without explaining whether Manual 6840 is inadequate; • Why BLM has reneged on Secretary Salazar’s promise to the western governors to give interim management authority to state plans that receive USFWS concurrence?

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REAL Montana’s two-year program equips emerging industry leaders for dialogue with other sectors Inaugural class shares gleanings from industry tours, media-relations training, and D.C. trip By Anika M. Hanisch knows that all natural resources are connected, but [in daily life] everyone seems to be content working in their ‘bubble’ and not interacting much,” says REAL Montana participant, Kate Vogel, an agronomist with North 40 Ag in Ballantine. The seminars are set up to foster interaction between those industry “bubbles”. During multi-day seminars, leadership students room with each other and share meals. Whatever the participant’s background, friendships between different industries form quickly.

Class 1 toured the Calumet refinery in Great Falls, Mont., during the second seminar.

Striving to build connections between the wide range of natural resource industries in Montana, the new Resource Education and Agriculture Leadership (REAL) Montana program is half-way through its inaugural two-year seminar series. Twenty community leaders enrolled in the current class have been attending three-day seminars and industry tours every other month. The goal is to empower emerging industry leaders with knowledge about other sectors, their economic interconnections, and the true complexity of policy-making decisions. REAL Montana program director Janelle Booth described the training.

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During one of their first in-state seminars, the group traveled to Great Falls and toured the Malteurop malting plant. “Not everyone is a barley farmer, but everyone had a stake in it,” Booth says. “Everyone in the class could identify with some aspect of that building – the logistics of the rail system, the energy input of running such a large facility – just seeing how all these individuals come together and become an economic driver in a region like Great Falls.” Such tours spark dialogue between the classmates. “Everyone

Montana Mining Association — Montana Mining 2014

The class spent a day discussing natural resource issues with Congressional staffers at the U.S. Capitol.

“The most important lesson I have taken home is that sitting back and watching something happen is not going to help any issue,” Matakis says. “We, as leaders, must be willing to stand up and take an active role in our industries and be willing to help others in other industries.” ~ Richard Brown

Class members discuss trade issues with diplomats at the Embassy of Japan during the Washington, D.C., seminar.

“REAL Montana allows leaders from different sectors get to know one another and learn the ins and outs of a different industry,” states Andy Matakis, the operations manager at the Northern Ag Research Center in Havre and REAL Montana Class 1 president. “This has happened for me by learning more about the construction, engineering, and mining sectors and struggles those industries face on a daily basis.” Participant Whitney Klasna, a farmer and rancher in the Bakken north of Lambert, shared similar feedback. She’d heard of leadership programs that had more of a single-industry focus. “But never has there been an educational leadership program that focused on both agriculture and natural resources together,” she says. “Where else can you learn about wheat genetics and oil refining in one seminar?” In addition to industry tours throughout the state, the program provides media-relations training, a trip to Washington D.C. to wrestle with policy-making matters, and an international trip. Class 1 will head to China in 2015 to learn more about international trade and connections to Montana industries. When traveling far from their home

communities, the students often uncover far-reaching economic connections and decision-making effects. While on their

D.C. trip, the class visited NASA’s Goddard Space Flight Center in Greenbelt, Maryland. Booth commented how on the surface, one might ask, “What does this have to do with us?” It turns out, quite a bit. “Data from satellites – temperature of the oceans, weather patterns, soil moisture – this is information that can affect policy.” According to Matakis, emerging leaders, whatever their stance on an issue, need to get actively engaged with such topics. “The most important lesson I have taken home is that sitting back and watching something happen is not going to help any issue,” he says. “We, as leaders, must be willing to stand up and take an active role in our industries and

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“REAL Montana allows leaders from different sectors get to know one another and learn the ins and outs of a different industry,” states Matakis.

The class toured NASA’s Goddard Space Flight Center and interacted with NASA scientists during Seminar 4 in Washington, D.C.

be willing to help others in other industries.” Whether in-state or far from home, participants have been impressed by the topic diversity and practical tips. Vogel appreciated a media seminar they attended in Billings, where the students had a chance to practice live interviewing with TV and radio news broadcasters. “[It taught us] how to prevent mistakes, stay calm during interviews, and get our message out,” Vogel says. “I immediately applied this to my professional career and have subsequently had articles published that, before, I would not have known how to submit.” Booth is excited to see how much the current class is already benefitting from the program. “These are people who will fill leadership roles, who will ease grid-

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Montana Mining Association — Montana Mining 2014

Class members Tara Becken and Bruce Wright are interviewed by Russell Nemetz on the KTVQ noon news.

lock in policy-making,” she says. “We’re not pushing an agenda. What is best for everyone is having strong leadership skills. We put a lot of emphasis on communication.” Booth adds that, while the current class is comprised predominantly of emerging ag-sector leaders, they’re welcoming more diversity in the participant list of the next class. Vogel resonated with that sentiment. “One of the biggest benefits of the program are the learning experiences we gain from our classmates,” she says. “The more people who apply from dif-

The class poses at the KTVQ studio in Billings, Mont.

ferent sectors, the stronger the program will be.” REAL Montana, which operates under the wing of the Montana State University Extension Service, has already gleaned multi-industry support, as evident in a broad sponsor list that subsidzes approximately 80 percent of each student’s tuition. “It’s a great example of public-private partnership,” Booth says. “Sponsorship and involvement from all these industries is really important to the success of the program, and they are the ones who will reap the benefits in the future.”

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Klasna was also quick to encourage other industry leaders to apply for the next two-year class. “REAL Montana has far exceeded my expectations by providing me and the other class members with high-caliber opportunities in media and leadership training, networking, and experiential learning,” she concludes.

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Digital copy available online at www.montanamining.org

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Mining the data:

The MBMG’s Data Preservation Program

During the 19th and 20th centuries and even today, enormous financial investments in natural resource development and environmental monitoring have generated tremendous volumes of geologic, geophysical, engineering, and water data. At the height of early mining development, in 1919, the Montana Legislature established the Montana Bureau of Mines and Geology (MBMG or “the Bureau”) and mandated that it collect and publish geologic and mining information about the state. Working closely with individual miners, mining companies, consultants, private land-owners, other state and federal agencies, and MBMG staff (particularly Robin McCulloch, the Bureau’s former staff mining engineer) encouraged the donation of a tremendous collection of geological and mining-related data related to mineral resource properties across Montana. Through this collaboration, the collection has grown to almost 7,000 mining-related maps and nearly 5,000

files containing thousands of pages of mining-related information for Montana properties. Other MBMG collections include 250,000 aerial photos; seismic records dating back to 1980; and oil, gas, and more than 230,000 water-well logs. Of specific interest are difficult-to-catalog hand samples, thin sections, and polished rock sections from Butte underground mines. A new collection of Butte-hill core samples, donated to the MBMG by the Butte-Silver Bow government, will be added to the archives in April 2014. As “boomer-age” mineral resource professionals retire and mining companies conclude their work, important mining and geologic information is vulnerable to being stored or lost. The Bureau is reaching out to these parties to make them aware of the opportunity to preserve their work for future reference. In 2012, the MBMG created the Data Preservation Committee, comprised of

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Montana Mining Association — Montana Mining 2014

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geologists, consultants, miners, librarians, USGS personnel, and MBMG staff to guide data preservation policy, mining archives webpage development, and future program development. In 2013, the Montana State Legislature appropriated one-time-only funding to support the MBMG’s data preservation program for two years, with an emphasis to identify, rescue, and digitize coal-related information from eastern Montana. Montana Senator Jim Keane and Representative Duane Ankney were critical in getting data preservation funding approved. “I was so happy to work with the Legislature and the executive branch to increase funding for the program,” says Senator Keane. “It is so important to the economy of the State to have these historical documents out where other companies can actually see the information, not piled up in boxes somewhere. Through this program, the data is provided to individuals and companies interested in the data. I was particularly happy to have coal data included – the program benefits the whole state, from mining in the west to coal mining in the east. It’s a real bang for our buck in the state of Montana.” Montana’s mining heritage is as rich and interesting as the minerals it has historically produced. Preserving the maps, data, and reports that document Montana’s remarkable mining history will provide an important resource for generations to come. For more information, or to donate or preserve mining-related materials, please contact: Peggy Delaney, MBMG Mining Archives 1300 W. Park Street, Natural Resources Bldg., Room 217 Tel: 406-496-4381 Email: [email protected]

Old map of mines in Butte, Montana, scanned as part of the MBMG Data Preservation program. Digital copy available online at www.montanamining.org

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Turning mountains into molehills:

Smith & Sons Construction By Nancy Kessler

Jack and Olive Smith in 2010.

Larry (left) and Paul Smith.

Back in 1968, Jack Smith thought he could put his mining experience to work at the Golden Sunlight Mine near his ranch in Whitehall. After all, he had begun by working underground the Anaconda mine for five years, and for F&S Construction for another 13 years. The folks at Golden Sunlight told him to work for a couple of weeks and they would see how he did. “These past 46 years have been the longest ‘two weeks’ of my life,” Jack, now 84, likes to joke.

struction, and several of his daughtersin-law and grandchildren have worked for the family-owned company, as well. As self-termed “dirt movers,” Larry says Smith & Sons Construction has provided all types of digging and construction services for at least a half-dozen mines in Montana. It all started with Jack’s first piece of mining equipment – a D6 Caterpillar bulldozer purchased in 1968 that he used to build roads and drill sites at Golden Sunlight. The work was good, so he bought a bigger D8 in 1971, and a

Young Paul (left) and David Smith stand before the company’s first bulldozer, a D6, with their goats.

As self-termed “dirt movers,” Smith & Sons Construction has provided all types of digging and construction services for at least a half-dozen mines in Montana. It all started with Jack’s first piece of mining equipment – a D6 Caterpillar bulldozer purchased in 1968 that he used to build roads and drill sites at Golden Sunlight. Jack isn’t the only Smith who has a long tenure at the local gold mine: two of his five sons, Larry, 52, and Paul, 55, are now the backbone of Smith & Sons Con-

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year later a D9, the largest bulldozer of its day. While concentrating on mining work, Jack also built public roads in summers

Montana Mining Association — Montana Mining 2014

Smith & Sons’ D8 bulldozer in 1970.

By 1982, Smith & Sons had built the site for Golden Sunlight’s mill, as well as ponds and leaching mounds. They expanded to other mines, including the nearby Mayflower Mine, Montana Tunnels in Jefferson City, Green Camel Mine near Silver Star, Elkhorn Mine south of Boulder, and Barretts Minerals in Dillon. “We started a lot of them, because we had a good reputation,” says Jack. “We did whatever they needed.”

Smith & Sons working at the Golden Sunlight Mine in 2012.

and snowplowed in winters, as far away as Harrison. “Wherever the money was, I went,” he recalled. That meant leaving his wife and business partner Olive and their boys on the original 200-acre ranch, which they bought in 1958 for just $19,000. “If not for the construction business,” says Jack, “we couldn’t have stayed on the ranch.” By 1982, Smith & Sons had built the site for Golden Sunlight’s mill, as well as ponds and leaching mounds. They expanded to other mines, including the nearby Mayflower Mine, Montana Tunnels in Jefferson City, Green Camel Mine near Silver Star, Elkhorn Mine south of Boulder, and Barretts Minerals in Dillon. They also completed initial site work at the proposed Highlands Mine outside Butte. “We started a lot of them, because we had a good reputation,” says Jack. “We did whatever they needed.” The work at each mine is diverse, adds Larry. At Golden Sunlight, the staff has stripped topsoil for waste dumps and later replaced and reseeded the areas, built ponds and roads, lifted tailings impound walls by building them up in ten-foot stages, and more.

Smith & Sons’ truck line at the Golden Sunlight Mine in 2008.

The current staff of 15 construction workers put in 10-hour days, five days per week, with two to three men on Saturday shifts, as well. Smith & Sons treats their employees well, says Olive, so most of their crew is comprised of locals who have been on board for nearly two decades. At one time, the business had 30 employees with 20 scrapers and eight Caterpillars; now their 40 pieces of equipment range from light plants to $1-million machines. “I believe in volume,” Larry says. “With bigger equipment, we can do more things. And while I like being economical, you got to have good people so if I find good men, I pay them well.” While Jack no longer runs the construction equipment he loves, he keeps on top of the business. That equipment has gotten larger and more powerful, but the biggest change he’s seen in the industry is in regulations. Father and son agree that the regulations have significantly improved safety, and are “way better” for reclamation, Larry says. “It’s better for business and it keeps the jobs here.” In fact, the regulations have helped them stay on top of their game. “We run

a real clean outfit,” says Jack. “We keep our machines in top shape and we’re ready to go in a moment. The mines have provided us with a real good living, and we get to stay in Montana.” These days, Jack spends most of his time on the expanded ranch, which combined five neighboring properties and consists of 5,000 acres stretching six miles long. Two sons, John, 57, and Mike, 51, are the foremen. They run cattle as well as raise barley, wheat and alfalfa, much of which is sold at John’s agriculture-supply business across the road. The fifth brother, David, 56, has his own construction company nearby, but all are stockholders in the family ranch and live down the road from each other. The company flourished through the years through Jack and Olive’s business acumen and because the five brothers are close. “Plus we’re too busy to fight,” Larry laughs. “We turn mountains into molehills,” Jack adds with a smile, “and we plan on doing what we’ve been doing for as long as we can.”

Digital copy available online at www.montanamining.org

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MMA board member Hal Robbins retires from Bison Engineering, will continue to volunteer and be involved in industry matters By Laura Bailey

Hal Robbins, former president of Bison Engineering and second vice-president of the MMA Board, realized a lifelong dream this March when he skiied the world-famous Alps in Europe.

Hal Robbins, longtime president of Bison Engineering, announced his retirement last year, but doesn’t have plans to slow down anytime soon. Robbins has his sights set on his passions of golf and

skiing, and will also be dedicating some time volunteering for a few of his favorite organizations, including the Montana Mining Association. Robbins stepped back from his du-

ties as president of Bison Engineering in July 2013, handing the reins over to Jeff Chaffee, who was vice-president. Robbins is continuing to work part-time for Bison Engineering on several key projects, at least through 2014. “We are exclusively an environmental firm and our specialty is air quality, which makes up probably 90 percent of our work,” Robbins says. “There’s lots of regulatory assistance, permitting, monitoring and stack testing we do for mines and dealing with regulatory agencies like the EPA and DEQ.” Bison Engineering employs about 30 people in two offices – one in Helena and a smaller satellite in Billings. They work closely with industry, helping their clients navigate the permitting and regulatory process in hopes of finding that delicate balance between a healthy environment and a thriving industrial economy. Robbins first became active in the MMA when he joined Bison Engineering in 1987, but didn’t join the board until a

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Montana Mining Association — Montana Mining 2014

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couple years ago. He’s the second vicepresident, and looking forward to continuing his board service. During the course of his almost 30year career, Robbins has seen mining in Montana – and the MMA – evolve and respond to political and economic swings. “When I first became involved, mining was really active in Montana. The MMA meetings were huge, always held in Butte, but when industry waned, membership in the MMA was affected as a result,” Robbins says. “In the last six years or so, it has started to really come back. It’s been a neat feeling to go from seeing almost no one at our meetings back to having a very vibrant, involved group.” There was a time when mining in Montana was painted as an “unsafe, irresponsible industry”, mainly because of public opinion based on several largescale superfund sites left over from mining’s early days, Robbins adds. “People thought that could happen again,” he states. These days, Robbins is seeing a much greater acceptance of the mining industry in Montana. Sure, regulations are still a challenge, but regulatory agencies are much more cooperative and willing to work with mining companies than they used to be in the past. And mining companies are becoming much more proactive. “They’re doing a pretty dang good job without a lot of push from the agencies,” Robbins says. Though he headed an engineering firm for 16 years, Robbins is not an engineer. He has a BA degree in physics and math and a MS degree in environmental studies. He was chief of the Montana Air Quality Bureau before coming to Bison Engineering, and quickly established himself as an expert in air-quality regulatory affairs, air-quality dispersion modeling, permitting, ambient monitoring, and stack testing. Many of Bison Engineering’s employees are graduates of Montana Tech in Butte, and though there is no formal partnership between the firm and

the college, Bison Engineering is very involved in Montana Tech and the environmental engineering program, especially. “Montana Tech’s environmental engineering courses fit really well with what we do,” Robbins states. “They’re one of the few schools that have the courses we need.” Throughout his career, Robbins has met and worked with hundreds of pro-

fessionals in not only the mining industry, but also the timber, oil and gas, and energy industries, as well as in all levels of government. While his work has always been interesting, Robbins says he’s most enjoyed all the people he’s come to know. “There have been some downtimes, of course – but those just make the good times better,” Robbins concludes.

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Supporting mining’s future MMA Memorial Scholarships help Montana Tech students advance in mining education By Anika M. Hanisch

Montana Tech mining students hard at work in the Montana Tech Underground Mine Education Center. This center provides hands-on experience in underground surveying, sampling, geology mapping, roof control, fragmenting and blasting, ventilation, and mine safety.

While Montana Tech in Butte has several scholarships available for mining engineering students, the school is particularly grateful for the two MMA memorial scholarships. The MMA’s Gary Langley and Don C. Lawson Memorial Scholarships are a tribute to the association’s longtime support of mining education. The awards were, in recent years, renamed to honor Langley and Lawson, who were both dedicated MMA members and mining industry advocates. Lawson was a charter member of the MMA and Langley an early executive director. “Lawson and Langley wanted to help students (who were) interested in mining to obtain a college degree,” says Katelyn Dean, alumni development officer at the Montana Tech Foundation. “They understood the need for qualified and educated people within mining.” But most students need a leg up to acquire that education. “More than 80 percent of undergraduate students at Montana Tech require financial assistance, including financial aid and scholarships,” Dean says. “One unique aspect about the MMA is they are helping sophomores, as

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well.” Many scholarships focus on supporting freshmen only. While the Lawson scholarship is set aside for freshmen, the Langley scholarship is for continuing students only, ensuring the full spectrum of mining engineering students have an opportunity to apply for the MMA’s scholarship support. Those scholarship funds are put to good use. “The Montana Mining Association’s Lawson and Langley scholarships allow for students interested in mining to receive a top-tier education from a school that was founded on hard science studies,” Dean states. Montana Tech is wellknown for its School of Mines and Engineering, which has a 98 percent placement rate for its graduates. The MMA scholarships specifically assist Montana Tech students who are Montana residents, and who are pursuing degrees in mining engineering, metallurgical and materials engineering, geological engineering, environmental engineering, or geophysical engineering. These degree programs cover the full range of mining efforts, including mapping and imaging the earth’s crust; designing and construct-

Montana Mining Association — Montana Mining 2014

“Receiving this scholarship means that I can focus on furthering my education in order to build a strong career, instead of having to find a job and cut back on credits to pay for college. Going through school without having to worry whether or not I can pay for the next semester will be extremely helpful. I can dedicate my time to learning the skills I’ll need in my career instead of having to split it up to accommodate working off campus.” “After I graduate, I plan on using both of my degrees, metallurgical and materials engineering and mechanical engineering, and going into the gold mining industry. I don’t have a specific job that I would like to do, but I’m willing to try anything and see where I can be utilized best. Although it isn’t too important, I would like to stay near the Rocky Mountains, if possible. I like the idea of working in an area close to home in order to help give back to the region where I learned my mining skills.” ~ MMA Langley Memorial Scholarship recipient Emily Kooistra-Manning

The Montana Mining Association’s Lawson and Langley scholarships allow for students interested in mining to receive a top-tier education from a school that was founded on hard science studies,” Dean says. The students who have been selected for this year’s Montana Mining Association Langley and Lawson scholarships are: MMA Langley Scholarship – Emily Kooistra-Manning. Emily is a sophomore from Billings, Mont., who is double majoring in Metallurgical and Materials Engineering and General Engineering with a mechanical engineering option. MMA Langley Scholarship – Sigrid McLean. Sigrid is a sophomore in Metallurgical and Materials Engineering who is also from Billings, Mont. MMA Lawson Scholarship – Hunter Clark. Hunter is an incoming freshman from Dillon, Mont. Who is majoring in Mining Engineering. All three students have financial need as determined by the FAFSA. “After just finishing my first year at Montana Tech in the Metallurgical Engineering program, I am even more excited to continue my education than when I started. Through my classes, I am learning more about what metallurgical engineers do and how impactful their work is to communities. I am excited when I think about serving on an engineering team that innovates new and cost-efficient techniques in mineral extraction. I know this is how I would like to make my impact on the world. Receiving a scholarship like the Montana Mining Association’s Langley Scholarship only gets me one step closer to reaching my goal of being a metallurgical engineer, so I am truly grateful. Thank you!” ~ MMA Langley Memorial Scholarship recipient Sigrid McLean ing safe and responsible surface and underground mines; material processing; and product manufacturing. “We are fortunate to have the Lawson and Langley scholarships,” Dean says. “These two scholarships allow us to recruit elite students pursuing mining engineering.” After graduating, those students use their education to further natural resource development both here in Montana and worldwide. Questions? Contact Shauna Savage at [email protected] or visit her in the enrollment office. Photos courtesy of Lisa Wareham Photography.

MMA Don C. Lawson Memorial Scholarship One $1,000 scholarship awarded to one Montana Tech freshman. New students must apply by January 15th.

MMA Gary Langley Memorial Scholarship Two $2,000 scholarships awarded to two continuing students at Montana Tech. Continuing students must apply by February 15th. Most of the Montana Tech scholarships filter through one application. Selection is based on academic performance (at least 2.5 GPA) and financial need. MMA scholarships are limited to students pursing mining-related degrees. Students and parents interested in the MMA Memorial Scholarships at Montana Tech may get more information and apply at: https://www.mtech.edu/onestop/scholarships/ Scholarships.htm

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Mines and exploration in Montana: 2013 in review By Katrina Senyk Many people have commented that this has been a most exciting year for mine permitting activity in Montana, and that it has been a while since the Treasure State has seen this impressive number of new mining operations, mine expansions, and exploration licenses issued within a relatively short period of time. Here’s a look at the progress made since last year’s report, with perspectives on 2014 plans where possible:

Troy Mine Inc. (Cu, Ag) Revett Mining Company’s Troy Mine marked 1.5 years and over 350,000 hours worked without a lost-time incident or reportable injury as of March 24th, 2014. Current employment is at 56 staff members and by year-end, employment is expected to reach 100 employees as production ramps up. In November 2013, the Troy Mine began a new development project to access the remaining reserves. The new access was collared from the existing Service Adit and declines to the North C Bed and I Bed orebodies for a total 13,088 feet of drifting. The company expects to begin limited production in the North C Bed orebody in the third-quarter of 2014, and ramp up to full production

by mid-2015, when development progresses to the I Bed orebody. Access to the East Orebody stopes, South C Bed, and South A Bed will be re-established in early 2015 to continue mining these reserves. Ongoing exploration work at Troy has continued to add to the company’s reserves, with a current 12-year project life.

Rock Creek Project (Cu, Ag) Revett Mining Company’s Rock Creek Project (RC Resources, Inc.) continues working with the USFS and cooperating agencies in preparing the supplemental EIS. A preliminary draft is expected to be completed for cooperating agencies’ review in 2014. The draft SEIS and Record of Decision (ROD) may be completed in 2015. Progress was made in re-applying for several construction and operational permits. The company has won critical court challenges on threatened and endangered species issues and expects the NEPA issues to be resolved upon completion of the SEIS and ROD.

Continental Pit (Cu, Mo, Ag) In the Butte-Anaconda area, Montana Resources removed the budgeted tonnages of waste rock and ore for 2013. The ore grades were right on plan, with

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Montana Mining Association — Montana Mining 2014

• New Mine Development • Mine Rehab • Mine & Plant Design • Site Management • Exploration Core Drilling • Geophysical Services • Exploration Management • Mining Engineering & Design • Permitting • Claim Staking • Cost Evaluation • Reclamation • Equipment Purchasing & Sales • Portable Assay Labs

copper recovery higher than budgeted. A permit expansion was approved by the Dept. of Environmental Quality to mine an area to the east of the main Continental Pit toward the I-15 Interstate Highway; this will allow deeper mining of the Continental Pit in the future. The labor force held steady at 350 employees, the same since 2003. Due to a four-year exploration and infill drilling program, the minable ore reserves are over 35 years. Upgrades to the tailings system will continue for the next few years. No major mining equipment capital is planned in 2014, except for replacements.

Silver Bell and St. Lawrence Project (Au) The Montana Gold Mining Company Inc. (“MGM”) owns 100 percent of the Silver Bell – St. Lawrence gold exploration project in Montana. The Silver Bell – St. Lawrence (SBSL) Gold Project, located in the Virginia City Mining District in Madison County, hosts two pastproducing gold mines (the Silver Bell and the St. Lawrence) which operated in the early 1900s, and again in the ’70s at the St. Lawrence. The historic shafts for each were located approximately 3,600

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feet apart and the two mines were originally held by different owners. With the Montana Gold Mining Co. having consolidated this ground position, MGM is now exploring to determine the relationship between the two former mines and whether the mineralized systems may be in part contiguous. Geological mapping and a geochemical survey has been initiated and is ongoing.

Butte Highland Mine (Au) The Highland Mine anticipates initiating mining activities in 2014. All activities and ownership are conducted under Butte Highlands Joint Venture, LLC (BHJV). The permitting and infrastructure is nearly complete at the surface to support mining activities. Montana DEQ issued the draft EIS and collected public comments in November of 2013. MTDEQ is preparing the final EIS to address comments and mitigating alternatives with anticipated completion in the spring of 2014.

The Beaverhead Deerlodge National Forest published the Draft Environmental Assessment for BHJV hauling ore on the Highland Road and collected comments in March of 2014. Completion of the final EA is anticipated for the summer of 2014. The final MPDES water discharge permit was issued in June 2013 to allow mine dewatering, in support of mine development to obtain the bulk sample collection, and full-scale mining. In September 2013, BHJV received MSHA approval of an updated Evacuation, Ventilation, and Escapeway Plan to allow underground work. Drilling completed in 2013 confirmed the strategy for the collection of the 10,000-ton bulk sample and the overall mine plan. In 2013, underground development decline was advanced by approximately 550 feet, six core holes were drilled for exploration and metallurgical purposes, two groundwater monitoring wells were completed, and a second de-watering well was drilled.

The decline was advanced toward the bulk sample area, which is in the upper portion of the mineralized material. Additional underground work bays and drill stations have also been developed, along with infrastructure preparation for development of the secondary escapeway raise.

Yellowstone Mine (Talc products) Ore production at the Imerys Talc operations (mine and mills) remained steady over the last year. South of Ennis, the Yellowstone Mine is in preparation for their next highwall pushback, which will require some changes to facilities as well as the potential for campaign mining in future years.

Golden Sunlight Mine (Au, Ag) Northeast of Whitehall, Montana, Barrick Gold Corporation maintained production from the Mineral Hill Pit at the Golden Sunlight Mine. Mining was split between extensions to the 5B and

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2B areas. Geotechnical constraints required the open-pit design to be revised on the west side of the pit. The company completed permitting of the North Area and South Area and received the EIS Record of Decision in January of 2014. The off-site ore program was quite successful in 2013, with a total of 191,000 tons of ore processed from 24 locations. The program continues into 2014. Barrick Gold Corp. continues exploration and engineering studies in the Bonnie Area, as well as several smaller opportunities near the existing main pit. Through all of this activity, the company achieved another year without a lost-time accident and maintained its ISO 14001 and International Cyanide Code certification.

Columbia Gold Project (Au) Atna Resources, Ltd. continued engineering, metallurgical, and environmental baseline studies at its Columbia Gold Project located east of Lincoln. At a 0.020 ounce per ton cutoff grade of gold, the measured and indicated resource at Columbia is 742,000 ounces of gold at 0.045 opt (ounces per ton). The inferred resource is 454,000 ounces at 0.042 opt gold. Atna Resources, Ltd. plans on initiating permitting of the project following completion of feasibility studies.

Mammoth Mine (Au) Paul Antonioli and Philip McDonald shipped Mammoth Mine’s tailings to Golden Sunlight until late in the year.

Contact Mining Mill Contact Mining’s mill in Philipsburg processed Drumlummon’s ore until mid-year, and late in 2013, processed custom ore from Montana and a bulk sample from Pretium’s Brucejack mine in northern British Columbia.

to the surface on the eastern end of the project area to provide a needed ventilation circuit and secondary egress. It is estimated that the full Blitz development will take about six years to complete, but opportunities to expedite the project are being explored.

Stillwater Mine (Pt, Pd, Rh, Ag, Au, Cu, Ni, and Co)

East Boulder Mine (Pt, Pd, Rh, Ag, Au, Cu, Ni, and Co)

Initial construction of the Stillwater Mine was completed by 1986 and underground mining commenced. A 1,950-foot vertical shaft was constructed from 1994 to 1997. The mine has been developed and expanded since initial construction was completed in 1986. The Stillwater Mine operations now extend laterally approximately six miles east to west and vertically more than one mile. The Stillwater Mine currently provides over 70 percent of the company’s PGM production and accesses the eastern portion of the J-M Reef. Elevations in the mine range from 1,950 to 7,300 feet above sea level. The Blitz development project commenced at the Stillwater Mine in 2010, and the project is currently planned to advance two parallel footwall laterals about 23,000 feet to the east of the existing Stillwater shaft on the 5,000 rail level and the 5,600 rubber tire level. One of these development headings is being driven with a tunnel-boring machine (TBM) and the other parallel heading is being driven using conventional drill and blast methods. The project contemplates adding a new access

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Montana Mining Association — Montana Mining 2014

Construction of the East Boulder Mine began in 1999. Two 3.5-mile portals were bored to access the ore. Most of the major above-ground facilities and infrastructure were completed in 2000, and commercial production began in 2002. The East Boulder Mine area extends nearly 14,000 feet horizontally by 2,000 feet vertically and accesses the western portion of the J-M Reef. The Graham Creek development project commenced at the East Boulder Mine in 2010. It is located to the west of the East Boulder Mine and is accessed from the existing infrastructure at East Boulder. The project utilized an existing tunnel-boring machine (TBM) to extend the mine’s main travelway (the 6,500 level) about 8,800 feet toward the western extremity of the J-M Reef with two ventilation raises. The Graham Creek project is nearing completion, with the exception of final support equipment. Production from the Graham Creek project is expected by late 2014.

Black Butte Copper Project (Cu, Co, Ag) Tintina Resources, Inc. continued defining copper resources north of White Sulphur Springs. The company outlined a high-grade copper resource in the Johnny Lee deposit which contains measured and indicated resources of 910 million pounds of copper at an average grade of 3.6 per cent and Inferred resources of 94 million pounds of copper at an average grade of 2.9 percent. On July 12, 2013, Tintina Resources filed an updated Preliminary Economic Assessment (PEA) for an underground mine and milling operation on this resource; the operation shows an after-tax

internal rate of return of 20.2 percent. The company has decided not to drive an exploration decline and progress towards a feasibility study in the future.

Business demand for talc products remained strong throughout the year. Employment and production levels reflect continued growth in Barretts Minerals’ business.

effective later this year, and is testing a new scrubber that was installed as part of the baghouse project. A low NOx burner was installed in the autumn of 2013, and the company is designing and procuring Selective Non-Catalytic Reduction equipment for additional NOx reduction, which needs to be operable by September 2014. The demand for cement is improving, but it has not reached the 2007 level for demand.

Ash Grove Cement

Garnet USA (Garnet)

Barretts Minerals (Talc)

Ash Grove Cement continues to operate under an expanding federal regulatory environment, which increases capital and annual operational costs. All of the Montana City plant’s major projects have centered around compliance with new federal environmental regulations. More than a year in advance, Ash Grove Cement is operating under, and meeting, new particulate emission limits. Ash Grove Cement will be able to meet new SO2 limits that will become

agement, Inc.’s underground Montanore Project also continued through 2013. Favorable final biological opinions for terrestrial and aquatic species were received from the U.S. Fish and Wildlife Service; work remains to be completed on the 404 Permit and Wetlands Mitigation Plan with the U.S. Army Corps of Engineers.

Acknowledgments The author would like to thank each

Environmental analysis of a proposed amendment to the operating permit held by Garnet USA at Alder, Mont. continued through 2013. The amendment, which allows development of a new open-pit hard-rock garnet mine with an estimated 37-year life, was approved by DEQ in April 2014, and construction has begun.

of the companies for their participation

Montanore (Cu, Ag)

feedback, this report could not be made

Work on the Final EIS for Mines Man-

possible.

t c e t o Pr

in this year’s report, as well as Warren McCullough and Herb Rolfes (Montana Environmental Management Bureau), John Metesh (Montana Bureau of Mines and Geology), Robin McCulloch (Butte Silver Mines, Inc.) and the Montana Mining Association for their assistance with this report. Without their input and

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Missoula Chapter update: Reflections on a year of change and continuity By Ted Antonioli This past year has been one of both

marized both the facts and speculation

graphically to learn about a large gold

continuity and change for the Missoula

about the roles of Francois Finlay, James

placer in New Zealand from Larry John-

Chapter of the MMA. Owing to a change

and Granville Stuart, and possibly Fin-

son, who worked there some years ago.

in the bylaws, the chapter became an

lay’s son-in-law, the mysterious John Sil-

Exploration was conducted ahead of a

independent entity called the Western

verthorn, in the discovery and early min-

dredge with both a reverse circ drill and

Montana Exploration and Mining Asso-

ing of the placer deposit at Gold Creek,

a slower, cable tool rig. Contrary to ex-

ciation, which we intend to continue af-

as well as even earlier reports of gold

pectations, the RC drill did a better job

filiating with the MMA.

prospecting at Henderson Creek and in

of predicting the mined grade.

The new name expresses the interests of our group as reflected in our monthly

Rob McCulloch again provided the

presented information on last season’s

program this past year, which covered

keynote address for our December

exploration of the Cable Placer near

events at active mines, exploration proj-

Christmas party, relating the progress

Anaconda. The Cable was one of the

ects, and historic mines.

of Butte Silver Mines in putting togeth-

highest-grade gold lode deposits in Mon-

In October, Skip Yates talked about

er the picture in the silver zone of the

tana, with many fine gold specimens

Daycon’s project at the Snowstorm Mine

Butte District. As always, we enjoyed a

produced, along with considerable mill-

near Mullan, the highest-grade “Revett-

potluck dinner, raffle and silent auction.

grade ore. The placer was also a bonanza

type” copper-silver mine among all the

To set the mood and provide authentic

originally worked by the pioneers. It ap-

known deposits of that type. Most of the

Butte décor, we set up a “headframe”,

pears there is considerable placer gold

production was about a century ago and,

complete with Christmas lights. Thanks

still in place.

uniquely for this deposit type, contained

to Bruce, the bicycle wheel served as the

considerable gold. The main ore body in

shiv wheel!

Thanks to all those who shared their knowledge and experiences with our group.

the upper Revett was cut off by a fault,

Dick Berg talked in January about his

and Skip’s intention is to see if additional

current research on the geology of the

Besides hosting exploration and min-

ore exists either in a displaced segment

Missouri River sapphire deposits. Last

ing talks, the Missoula folks were also

of that ore-body or in the lower Revett,

year, there were a half-dozen or so con-

engaged in commenting in support of

which hosts the orebodies at the Rock

cerns mining sapphire from the Eldorado

several permit applications. We expect

Lake and Montanore deposits in Mon-

Bar and nearby areas. We look forward

to continue to be engaged in the explora-

tana.

to following Dick’s progress in sorting

tion and mining process, both within and

out the sources of these gemstones.

outside Montana, as we progress under

November’s meeting discussed the first discovery of gold in Montana. I sum-

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Most recently, in March, Bruce Cox

the Bitterroot.

Montana Mining Association — Montana Mining 2014

In February, we shifted gears geo-

our new banner into the future.

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Holcim Trident supports our troops in Afghanistan

In December 2013, Holcim U.S. Inc. Trident’s plant employees and their families – in coordination with Montanans Supporting Soldiers (MSS), a non-profit organization from Helena, Montana – donated several hundred pounds of goodies, wish-list, and personal care items for our deployed troops. In addition, employees and family members wrote Christmas cards and cards of thanks which personally expressed their thoughts and best wishes to soldiers. There were several boxes of cards, each of which contained a hand-signed banner that said, “Holcim Trident, Montana Plant Supports our Troops”. MSS provided details to Holcim Trident on which items deployed soldiers routinely request, and also which items may be shipped safely. After these items were collected, and boxed according to military specifications, MSS shipped our care packages to several locations. MSS also makes a special effort to ensure that some of the items are distributed to military personnel who don’t regularly receive support packages from home. This month, Holcim Trident employees were thrilled to receive a thank-you card and photo from a deployed K-9 team in a forward-operating base in Afghanistan. The soldier, shown here with his military dog, is from Montana, and the soldiers are holding up one of our hand-signed banners. Holcim Trident plant employees heartily embraced the entire process of collecting and packaging all of the items, signing the banners, and taking home cards for their family members to sign. We look forward to continuing to provide care packages to our deployed military, whose efforts we greatly respect and appreciate, in the future.

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Partner in the Community At Holcim, we believe in being a partner with the communities in which we operate. Which is why the employees of the Holcim (US) Trident plant are deeply involved in the community through volunteer efforts. We are honored to be part of this community! For more information please contact the Holcim plant at 406-285-3241.

Perfecting Progress

Digital copy available online at www.montanamining.org

61

The neighbor next door: Golden Sunlight Mine By Tom Harrington, Jefferson Local Development Corporation

The Sunlight Business Park infrastructure being installed. The park is a partnership project between the mine and the Jefferson Local Development Corporation organization to create jobs, as well as a tax base to help minimize the impacts when the ore runs out and the mine closes.

Montana has a long tradition of neighbors working together to achieve a common goal and we are very fortunate in Whitehall, Montana, to have a strong corporate neighbor and partner called the Barrick/Golden Sunlight Mine (GSM). Working in community development with Montana State University-Extension and the Jefferson Local Development Corporation, we focus on economic development to create jobs and a tax base in Jefferson County. Natural resource mineral extraction is an integral part of our economy. GSM, which has been in operation for over 30 years, is a key component of our economy; GSM reinforces Montana’s mining history and exemplifies our state seal with the words inscribed Oro y Plata (Gold and Silver). Successful mining operations embrace a sustainability culture to fully understand and assess the environmental, social, and economic impacts on the local community and mitigation of these impacts. Partnership with local communities to adequately address area stake-

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holders’ interests throughout the life of a mining operation is a key component to building a positive relationship. The Community Transition Advisory Committee (CTAC) started in 2000 as a cooperative effort between the local community and the GSM mine leadership. The committee, which meets monthly, is comprised of key area stakeholders and is an information conduit and public forum to discuss mine operations and provide community updates. It is an integral part of GSM’s community outreach Sustainability Program. This public process has been a good mechanism to discuss a variety of topics, keep the public informed, and has resulted in mine transparency that has built a relationship founded on trust and cooperation. Sustainability is comprised of three components: environmental, social, and economic impacts. The environmental component has standards and regulatory guidelines that are spelled out in the operating permit, which serve as a pre-

Montana Mining Association — Montana Mining 2014

scriptive guide for protecting the environment. At GSM, reclamation is an ongoing process and is very visible from the community perspective. GSM’s innovative steep-slope reclamation techniques are very successful. They have been recognized nationally for their third-party ore program, and also by receiving the BLM Hardrock Mineral Environmental Award for their innovative support to help reprocess historic mine-site materials from around the area, thus helping to clean up legacy mine sites while saving taxpayer dollars. GSM supports habitat improvement by donating their Block Management proceeds to a local sportsman group for specific area projects, and they have also helped with fish habitat projects on the Jefferson River. GSM also assists the local watershed group with their drought management plan and assists them in their Jefferson River Rally fundraising efforts. Mining involves hard work by hearty individuals and instills a strong work ethic that carries over into the community

The Community Transition Advisory Committee (CTAC) meets on a monthly basis to discuss mine operations and provide community updates.

culture. The social component benefits the community in many ways; one aspect is the strong GSM safety culture that

exists and carries over into the community as miners and their families integrate and participate in a variety of activities.

They support an annual community health and safety-fair day that conducts health screenings, offers safety education and provides valuable information on lifestyle changes. GSM is active in many community activities and is a major supporter of numerous fundraising events that occur throughout the year, such as the Frontier Days BBQ and rodeo events. A Whitehall downtown fire destroyed the heart of the community a few years ago, and revitalization efforts are underway with the renovation of the historic Borden Hotel. GSM supported fire-recovery efforts and recognized the importance of the downtown area by stepping forward to purchase the historic tax credits that will allow the hotel renovation project to move forward. GSM has a mining connection with the builder, Lot Borden, who mined at the GSM site with partners in the 1920s. From an economic perspective, GSM provides good employment opportuni-

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ties and an excellent tax base. They also employ many contractors at the site, who in turn offer employment opportunities that impact the economy by helping to support other small businesses in our area. The third-party ore program has also been a positive economic boost to the area by creating job opportunities. GSM has assisted with the development of a business park that has the potential to create new jobs and tax base that could help mitigate eventual mine closure impacts. GSM pays the metal mine gross proceeds tax that benefits area schools and provides financial resources to the county for economic development. Some of these special metal mine funds have been used in two Jefferson County tax increment financing industrial districts to support infrastructure development that enhances business recruitment. A revolving county business loan fund and grant program was also implemented that has improved the overall quality

of life by supporting many community projects, including business loans, rodeo grounds infrastructure, soccer fields, library expansion, search and rescue programs, school projects, development of a community fish pond, a local brain injury facility, theater, pool, skatepark, high school scholarships, picnic tables, a gazebo, and more. GSM also supports the Jefferson Valley Community Foundation funding efforts annually, which in turn provide grant awards to local organizations that help fund other community projects. The Whitehall/Jefferson County and GSM partnership is an excellent example of working together in a cooperative manner for the benefit of all parties. Sustainable development is here to stay and companies implementing successful programs will be the industry leaders and enhance shareholder value. Barrick/ GSM’s actions and community involvement reinforce the fact that corporatesocial responsibility is fundamental to

The Borden Hotel historic renovation project in downtown Whitehall was made feasible by the partnership with GSM to purchase the historic tax credits.

their business strategy. They have made a strong commitment to make a positive difference in our community by sharing the benefits of mining, and make a great neighbor. Questions? For further information, please contact Tom Harrington at the Jefferson Local Development Corporation: (406) 287-3487 309 East Legion Avenue Whitehall, MT 59759

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www.gasflowmonitors.com 64

Montana Mining Association — Montana Mining 2014

Garnet USA closes $225-million joint-venture with GMA Garnet Group

On March 21, 2014, Garnet USA closed a $225-million joint-venture with GMA Garnet Group in the industrial garnet mine located in Alder, Mont. Garnet USA is an entity owned by Idaho State Gold Company, managed by ISR Capital which is based in Boise, Idaho. Garnet USA (“GUSA”) signed definitive documentation to close an equity investment for an undisclosed amount

by GMA Garnet Group. GMA Garnet Group, based in Perth, Australia is one of the world’s leaders in industrial garnet production and distribution. Garnet USA announced earlier in March that its industrial garnet mine in Alder, Mont. had received a formal Record of Decision (“ROD”) signed by the DEQ director. “This permit for an openpit garnet mine from the Montana DEQ is the first of its kind in the state,” stated ISR capital engineer Brian Jackson. ISR Capital CEO Sima Muroff stated, “GMA Garnet Group is an innovative leader in the global abrasives industry. We are very excited to have them as our partner, as well as create sustainable long-term jobs for the State of Montana and Madison County.” “ISR Capital will continue to confirm its commitment to this industry,” Muroff

added. “We will invest, build, and permit significant mines in our region to create sustainable jobs and generate high value through robust returns and cash flow.” “GMA is pleased to participate in a historic moment for the garnet industry with the development of this garnet mine in the State of Montana,” stated GMA group deputy CEO and GMA U.S.A. president Rod Liebeck. “GMA is committed to the U.S.A. as one of the largest developing garnet markets in the world.” Liebeck added, “GMA is appreciative of the support from the State of Montana in permitting a long-term project with a mine life of over 40 years.” For further information, contact ISR Capital at 1-800-290-4772 or visit www.isrcapital.com.

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Stillwater Mining Company Growing recycling business complements mine production

Headquartered in Billings, Montana, Stillwater Mining Company is the only U.S. producer of platinum group metals (PGMs), and is the largest primary producer of PGMs outside of South Africa and the Russian Federation. PGMs are rare precious metals used in a wide variety of applications, including auto catalysts, fuel cells, hydrogen purification, electronics, jewelry, dentistry, medicine, coinage and other uses. Stillwater Mining Company is engaged in the development, extraction, processing, smelting and refining of PGMs from a geological formation in southern Montana known as the J-M Reef. This is the only known significant source of PGMs in the United States and one of the highest-grade PGM resources in the world. This article highlights the expanding recycling business aspect of Stillwater Mining Company’s operations.

Recycling Stillwater Mining Company has been recycling spent catalyst

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materials at its metallurgical complex in Columbus, Montana, since 1997. The facilities process ceramic and metallic automotive catalysts, petroleum catalysts, industrial PGM catalysts and refinery sweeps in lot sizes ranging from two to 20 tons. Stillwater Mining Company’s recycling business consists of a state-of-the-art processing and sampling facility and a contiguous automated assay laboratory. Catalyst material received at Stillwater’s recycling facility in Columbus are recorded, documented, and weighed. The PGMbearing ceramic materials in each recycling lot are crushed and sampled at the company’s catalyst sampling facility. Any dust created during this process is captured and included in the sample. Samples are sent to the Stillwater’s automated recycle lab, where state-of-the-art assay techniques are utilized to provide assays within seven to 10 days. The crushed catalyst material is pneumatically conveyed into Stillwater’s precious metals smelter, where the material is blended and processed with concen-

Montana Mining Association — Montana Mining 2014

Here together… From the ground up

trates from mining operations. Blending the materials provides processing efficiencies. The copper and nickel sulfides naturally present in the mine concentrates “collect” the PGMs and carry them through the smelter and into the base metals refinery.

Sampling Plant In 2010, Stillwater completed construction of a new stateof-the-art catalyst sampling facility where recycling lots are crushed and sampled prior to processing. This new facility has significantly increased Stillwater’s receiving and sampling capacity and provides the ability to receive product from multiple shippers simultaneously. The facility efficiently provides assay samples ready for analysis in the new automated assay lab.

Automated Recycle Lab Stillwater Mining Company’s new automated recycle lab was commissioned in February of 2011. The new state-of-the-art assay lab utilizes an automated X-ray process that provides accurate results with faster processing times than conventional fire assay methods. The addition of the dedicated automated recycle laboratory, coupled with the new sampling plant, provides exchange quality assays within seven to 10 days of receiving the material. This efficiency provides suppliers with the fastest exchange of quality assays in the market, which reduces risks caused by lengthy traditional assay times. The new laboratory concept was developed by one of the industry’s most experienced laboratories, and underwent extensive technical testing for several years before being completed and placed into operation. Stillwater Mining Company’s shares are traded on the New York Stock Exchange under the symbol SWC and on the Toronto Stock Exchange under the symbol SWC.U. For further information about Stillwater Mining Company, visit the website: www.stillwatermining.com.

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67

Imerys Talc’s Yellowstone Mine: Community Days 2014 provide family-oriented educational opportunities

Yellowstone Mine – highway clean-up by Imerys employees.

Community relations remains a primary focus for Imerys Talc throughout all of its Montana operations, which include the Yellowstone Mine (20 miles south of Ennis) and both the Three Forks and Sappington (15 miles southwest of Three Forks) ore milling facilities. Imerys makes a strong effort to positively participate

within the communities from which they employ personnel and in which their facilities reside, through donations, sponsorships, partnerships, and volunteer time. Such communities include Three Forks, Manhattan, Willow Creek, Bozeman, and Belgrade within Gallatin County; Alder, Ennis, Sheridan, Virginia

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68

Ted Antonioli (406) 251-5148

Montana Mining Association — Montana Mining 2014

Larry Johnson (406) 549-1071

City, McAllister, and Twin Bridges within Madison County; Whitehall in Jefferson County; and Butte in Silver Bow County. 2014 also begins a busy year for community-related activities on Imerys property, specifically at the Yellowstone Mine. Situated within the picturesque Madison Valley of southwestern Montana, along the eastern foothills of the Gravelly Range Mountains, the mine will be featured in a number of large, group mine tours during the year. The first such tour took place in late April at the 22nd Annual Mine Design Operations & Closure Conference. This event, comprised mostly of mining industry professionals, consultants, and environmental regulators, focused on the mine’s recent reclamation activities, along with mining operations. In May, the Geological Society of America will be visiting the mine during

Fourth-grade Yellowstone Mine tour – Heritage Christian School.

their Rocky Mountain Section Annual Meeting in Bozeman, as a part of “The World-class Talc Deposits of Southwestern Montana” field trip where both talc geology, as well as formation-specific geology, will be highlighted. Finally, individuals wanting to visit North America’s largest talc mine, outside of a structured tour, will have the opportunity during the Imerys “Community Days” event at the mine. Anyone who has headed south of Ennis on State Highway 287, driven past the entrance to the mine and wondered, “What’s up there?” can find out in early August 2014. This tour will be open to the public and is intended to be a family-oriented activity with tours of the mining, processing and sorting operations. Visitors can stand next to some of the operation’s heavy mining equipment, as well as see it in action. Having been active for many decades (since the early 1940s), historical information, including the unique story of how the mine got its name, will also be presented. A barbeque lunch will be provided free-of-charge, along with mining-related giveaways for children (hardhats, etc.). Typically, the most common question asked by visitors is, “What is talc used for?”. This tour will dedicate plenty of time to review the current enduses of the world’s softest mineral. (Hint: it’s more than just baby powder!) Imerys’s Community Days events are recurring where future years’ tours will take place at the other Montana facilities, highlighting the milling portion of the Imerys talc business.

Aerial of Yellowstone Mine.

In addition to large group tours, the mine also holds numerous tours throughout the year that focus on mining and mineral education opportunities for school teachers and students, as well as tours donated to various groups (non-profit organizations, foundations, charities, and benefits) for their own fundraising events. This typically amounts to hundreds of visitors annually. However, 2014 will be an exceptional year, with two to three times the average annual visitors expected. It is not often that these facilities open their doors to the general public; however, this displays Imerys’s commitment to community and sustainable development, and especially the Yellowstone Mine employees’ willing-

TSX.V: TAU

ness to display what many have worked decades for in order to create the productive and efficient mine that it is today. In addition to community relations, the Imerys Talc/Yellowstone Mine commitment to the pillars of the environment, health – and especially safety onsite – should also be evident throughout these tours. The mine was proud to have achieved 10 straight years without a losttime injury on January 7th, 2014. It is because of these commitments that the Yellowstone Mine has been a mainstay operation within the Madison Valley and surrounding areas for many years, and Imerys looks forward to continuing to be a sustaining member of these communities for many years to come.

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Digital copy available online at www.montanamining.org

69

Ash Grove: Promoting legislation to preserve Montana jobs In the 2013 Montana legislative session, Ash Grove Cement company leaders appeared before both the House Taxation and the Senate Taxation Committees in the State Capitol to support SB 240, a bill that was important to Ash Grove, as well as many other industries in the state. Ash Grove operates eight cement manufacturing plants west of the Mississippi River, including one in Montana City. The company, which has operated for more than 130 years, is the largest U.S.-owned cement company. The Montana City facility currently manufactures 300,000 tons of cement annually. There are more than 80 employees in Montana with a payroll of nearly $5 million. Ash Grove also recently built a cement distribution terminal in Ridgelawn, Mont., at a cost of approximately $8 mil-

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Montana Mining Association — Montana Mining 2014

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lion. It started operations in the autumn of 2013 and serves the Bakken oil shale formation in eastern Montana and North Dakota. This is a rapidly growing region, and Ash Grove expects to ship more than 100,000 tons of its Montana Cityproduced cement through the terminal each year. Ash Grove supported SB 240 because the bill would have assisted businesses that are compelled by the federal government to add pollution-control equipment and monitoring systems. Recently, Ash Grove invested $14 million to install a baghouse and semi-dry scrubber that are designed to further reduce particulate and sulfur dioxide emissions at the Montana City plant and allow it to comply with the new lower federal standards for cement kilns. Ash Grove plant manager Dick Johnson shared this information with the House Taxation Committee members at their April 11th, 2013 hearing on the legislation. Johnson – who grew up in Billings, graduated from

Dick Johnson, Ash Grove Plant Manager.

Dan Peters, Vice-president, Manufacturing – West.

Montana State University, and lives in Clancy – joined Ash Grove 24 years ago and has been plant manager for more than 17 years. As a result of this newly installed equipment, which cost more than the original plant, according to Johnson, the plant is well-ahead of the compliance deadline of September 2015. This investment increased the company’s operating costs significantly – but does not in-

Charles Sunderland, Ash Grove Chairman of the Board.

crease the plant’s employment base, production capacity, efficiency or product quality. The plant’s tax burden, however, will increase significantly, if there is no tax abatement or exemption for pollution-control equipment. In addition, Dan Peters, Ash Grove vice-president of manufacturing – West and a Montana native who also attended Montana State University, told Chairman Tutvedt and the members of the Sen-

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Ash Grove’s Montana City baghouse. Ash Grove invested $14 million to install the baghouse and semi-dry scrubber, which are designed to further reduce particulate and sulfur dioxide emissions and allow it to comply with the new lower federal standards for cement kilns.

ate Taxation Committee, “Ash Grove’s property tax burden in Montana ranks second-highest of its eight plants.” The bill would have been an important step to encourage companies to continue to operate in Montana as they install additional pollution control equipment to

meet current and future environmental regulations, which will benefit all Montanans, according to Peters. If Senate Bill 240 had become law, it would have been an important signal to the company and other industries. Ash Grove chairman Charles T. Sunderland

wrote Montana Governor Steve Bullock, asking him to sign the bill and stating that, “SB 240 becoming law will help our company decide whether to invest more than $400 million to modernize our Montana plant, which will create construction jobs, add payroll and ex-

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Montana Mining Association — Montana Mining 2014

The bill would have been an important step to encourage companies to continue to operate in Montana as they install additional pollution-control equipment to meet current and future environmental regulations, which will benefit all Montanans, according to Peters. tend the operating life of the facility for decades.” Sunderland made it clear that Gov. Bullock’s signature on SB 240 would “help clarify future investment options for companies like Ash Grove Cement… (which) recently decided to invest approximately $150 million in our Midlothian, Texas, plant. Under Texas law, pollution control equipment is exempt from property tax. Other states offer other abatement or incentives for such investments.” Johnson added, “As this nation emerges from the Great Recession, we believe that SB 240 was an immediate solution to concerns that businesses like ours have, and will help to clarify decisions for businesses about whether to sustain Montana operations.” SB 240 passed both the Senate and House in April 2013. Both chambers’ votes were overwhelmingly bipartisan. However, despite a multi-industry effort supporting the bill, Gov. Bullock vetoed the bill on May 6, 2013 and the Montana Legislature fell just short of overriding his veto with a vote of 93-43 on June 10, 2013 (a two-thirds vote of each house is needed to override the veto). For the 2015 session, Ash Grove will continue to work with the multi-industry coalition that supported SB 240 to find a path forward to protect Montana jobs and companies’ competitiveness. “This plant opened in 1964, when Kaiser Cement owned it, to provide cement to construct the Yellow Tail and Hungry Horse Dams. It now supports an estimated 800 local jobs, and we would like to see that continue for the foreseeable future,” Johnson states. Johnson’s Montana City workforce has a strong focus on safety and has worked for more than 13 years without a losttime accident, supporting one of the best

safety records in the cement industry. The Montana City plant, as well as all of Ash Grove’s other plants, is ISO 14001 compliant, which is an international standard for excellence in environmen-

tal management. Ash Grove is the only domestic cement manufacturer to have achieved this distinction. The Montana City plant also supports the surrounding communities in a variety of ways.

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73

New innovations in geophysical mining exploration By Doug Groom, Director of GeoElectrical Products, Geometrics, Inc.

Four-receiver network of 24 channels (four magnetic and 20 electric).

Mining exploration can be costly and time-consuming. In recent years, financial resources and investments into mining have become more difficult to obtain. In times of lower investor support of exploration, it is more important than ever to increase productivity and lower costs. Detailed characterization of a mining prospect is expensive and time-consuming, so anything to increase efficiency of site characterization and prospection will be a boon to the industry. In response, Geometrics, Inc. of San Jose, California, recently developed a unique product for geophysical mining exploration that enhances data quality

and resolution, as well as controls costs. The Geode EM3D is an innovative extension of the geophysical exploration technique known as CSAMT (Controlled Source Audio Magnetotellurics). This system was specifically designed with mining exploration in mind, but the technology is expected to find a place in shallow oil and gas, as well as groundwater exploration. The distributed system is a network of synchronized receivers providing high data-density surveys to characterize mining prospects. The CSAMT technique uses a transmitter to generate currents in the ground that are measured by the CSAMT receiv-

ers at the survey site. The electric and magnetic fields generated by those currents are measured simultaneously. From the measurement of the currents flowing in the ground, one can produce a map of the underground geologic structure and use that to better interpret the most likely spot for productive drilling and excavating. Each six-channel receiver acts as a node on the network for synchronization and data communication. The largest system consists of 40 receiver nodes for 240 simultaneous electric and magnetic field measurements. A powerful geophysical transmitter provides the source of the measured signals. A typical

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Montana Mining Association — Montana Mining 2014

Telephone: (406) 628-3640 | Fax: (406) 628-2072 Cell Phone: (406) 671-4096 | Email: [email protected]

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Receiver with network cables, battery and porouspot electrodes.

CSAMT transmitter sequence takes from 30 to 60 minutes, depending on the requirements of the survey. In the past, in a traditional survey with only one station measured at a time, the transmitter needs to be run multiple times. In previous CSAMT surveys, to get data from 50 sites (50 stations), the transmitter needs to be run 50 times; this means the survey would require from 25 to 50 hours of transmitter time, not including the time for setting up and moving the gear 50 times. The survey time is greatly reduced using the new Geode EM3D. All the stations are set up at one time; then only one transmitter sequence is required. This means all 50 stations could be measured with a single onehour transmitter run, instead of requiring up to 50 hours to do the same acquisition one station at a time. A notable feature of the new system is the ability to scale the equipment to the geophysical requirements of the survey, the exploration budget available, and the complexity of the geologic environment. For example, a system could consist of a

single six-channel receiver, two magnetic coils, a ruggedized laptop controller, and a transmitter for a basic six-channel instrument; or it could consist of up to 46 channel receivers, 20 to 40 magnetic sensors, a geophysical instrument controller, GPS, and transmitter for a large 240-channel network of CSAMT receivers. A large network of measurement stations allows improved efficiency in laying out the survey to match the requirements of the application. For example, in simple layered environments, many electric channels could use the results of a single set of magnetic field measurements to calculate ground resistivity from up to 20 electric field measurements. In complex geology with lateral variations in structure, the survey may best be served by having a set of magnetic coils for every 10 electric field measurements. In other words, a distribution of measurement stations allows the user to “tune” the survey parameters to the targets of interest and the environment of the prospect. Another advantage of having multiple, simultaneous magnetic field measurements is the ability to do “local referencing” to help eliminate noise in the data processing. With two parallel coils making magnetic field measurements, one can be used as a reference for the other. If both coils are seeing basically the same signa, it is more likely to be actual signal and not instrument or localized noise. The Geode EM3D offers a series of features for easy set-up, acquisition of good data, and for making quality control a priority. For instance, the network

Geode EM3D acquisition unit.

allows for automatic and simultaneous measurement and calculation of contact resistance for every electric dipole. Ground contact resistance measurements mean more accurate calibration of the acquired signal. Better quality control and calibration of the measured signal means better results. To that end, the Geode EM3D measures total AC and DC noise in the field for better calibration and quality control. In short, the new instrument offers an opportunity to expand the capabilities of exploration teams for enhanced geophysical characterization of prospective mine sites before a single borehole or excavation is started. Geophysical techniques are intended to enhance geologic and geochemical exploration, not replace them. The goal is for geophysics to provide a rapid, accurate method to assist the exploration team decide where to sample with other methods and ultimately where to dig, and with continuing innovations, mining concerns can continue to compete even in difficult economic times.

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75

Graymont:

Committed to working with government and the community

Graymont is a family-owned company whose management team and employees are dedicated to meeting and exceeding our customers’ needs for lime and lime-

76

stone products. The company focuses on the production of high-calcium lime; dolomitic lime; value-added lime-based products such as specialty hydrates and

Montana Mining Association — Montana Mining 2014

precipitated calcium carbonates; and the aggregate and pulverized stone business. In North America, Graymont is the second-largest producer of lime. In the United States, subsidiary companies operate in Montana, Wisconsin, Michigan, 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) provides construction stone, sand and gravel, asphalt products and ready-mix concrete. Graymont also has a significant investment as a minor equity interest shareholder in Grupo Calidra, the largest lime producer in Mexico. Having been in the lime business for over 50 years, Graymont operates facilities on sites that have been in operation

for up to 200 years. The company is among the leaders in the industry in adding new, efficient plants and equipment and operates some of the most modern facilities on the continent. Central to the company’s corporate philosophy is a long-term approach to business, built upon a solid commitment to sustainable growth through the active participation in responsible environmental, workplace, and operating practices. At the same time, it is proud of its past accomplishments, which demonstrate Graymont’s commitment to responsible conduct of the business. In Montana, the Indian Creek plant is located near Townsend, just north of the

Improving your world by responsibly meeting society’s needs for quality lime & stone products 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

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www.graymont.com Digital copy available online at www.montanamining.org

77

Limestone Hills. Here, lime is produced

tor capable of producing 300 tons of hy-

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drated lime per day. This plant supplies

The plant is equipped with lime-sizing

customers in Montana, as well as several

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from the quarry is trucked to the crushing plant, where it is sized and conveyed to a large storage pile adjacent to the preheater kilns. Bulk truck loading facilities are provided at the plant site, and rail loading is available from a 1,500-ton terminal located on the Montana Rail Link line in Townsend. The management team at Indian Creek is comprised of the following individuals: Blake Bills, plant manager; Tyson Sweat, plant/maintenance supervisor; Mike Cartwright, production supervisor; Jared Senn, quarry/quality supervisor; and Steve Ciccarelli, process engineer. Graymont continues to be of significant economic importance to the county, as it is one of the largest taxpayers in the county. In addition to providing many well-paying jobs, Graymont purchases many goods and services locally, within the community. Many important lime markets are serviced by Graymont: agriculture; asphalt; steel; sugar; water treatment; building construction; lime application; mortar; plastering; restoration; whitewash; environmental remediation; flue gas desulphurization; food; glass; mining; precipitated calcium carbonate (PCC); pulp and paper; soda ash; and soil stabilization. In addition to providing high-quality products for its customers, Graymont provides engineering and technical support to facilitate customer applications in the following areas.

Product Application With technical and sales personnel skilled in solving customer problems, employees work with customers and recommend the proper products to meet their specific needs. This may include support on FGD projects, steel blends of high calcium and dolomitic products, the usage of lime in asphalt, or how to apply building products.

Transportation

Environmental Engineering Consulting Billings 406.248.9161 78

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Montana Mining Association — Montana Mining 2014

Missoula 406.543.3045

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 commit-

ment is the operation of a fleet of PCC delivery barges to support customers in the paper industry in the Northwest.

Material Handling To ensure efficient and economical operations, Graymont reviews and inspects customer material-handling facilities and design criteria. If requested, Graymont is prepared to own and operate such facilities at the customer’s site, including storage facilities. Graymont also provides portable slakers, silos, and unloading and material handling equipment for short-term projects. Several customers lease this equipment until their project has been completed.

Research and Development Graymont can work with customers in R&D efforts for new product and process applications, and has equipment available to facilitate testing of new applications at a customer’s site. Graymont’s vision for the future involves supplying the ever-increasing

our lives, and Graymont is committed to working with the members of our government and community to help provide these resources in a sustainable and environmentally safe manner.

need for quicklime to clean up and protect our environment; 80 percent of the company’s product is used for environmental purposes. Mining is essential in every aspect of

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79

Tintina Resources forges ahead

Tintina Resources takes ownership of our actions and commits to responsibly developing our natural resources while safeguarding our employees, community, land, wildlife and water.

Tintina Resources Inc. is a resource company focused on the environmentally sound development and mining of cop-

Supporting The Mining Industry Since 1993 • Bold Innovation • Expert Knowledge • Extraordinary Results

Phone (406) 293-8824

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Montana Mining Association — Montana Mining 2014

per deposits on its 100-percent-owned Black Butte Copper Project, 17 miles north of White Sulphur Springs along the highway to Great Falls, and entirely on private lands. Since beginning exploration drilling in September of 2010, Tintina has outlined a high-grade copper resource in the Johnny Lee deposit which contains measured and indicated resources of 910 million pounds of copper (Cu) at an average grade of 3.6 percent, and Inferred resources of 94 million pounds of (Cu) at an average grade of 2.9 percent. On July 12, 2013, Tintina Resources filed an updated Preliminary Economic Assessment (PEA) for an underground mine and milling operation on this resource; the operation shows an after-tax internal rate of return of 20.2 percent. On January 16, 2014, Tintina received final approval from the Montana Department of Environmental Quality (DEQ) for

Community: Tintina strives to be an integral part of the community’s prosperity and encourages partnerships that address local priorities and enhance positive, long-term community benefits.

Integrity: Tintina’s code of ethics requires integrity of our management and employees, and professionalism at every level.

an amendment to its exploration license to allow construction of a 5,000-foot exploration decline, to access the Johnny Lee deposit for further diamond drilling and possible bulk-sampling for additional metallurgical testing, with decline

construction creating 35 to 45 jobs for over a year. In spite of the fact that the DEQ Environmental Assessment for Tintina’s amended exploration permit required much more time and detailed analysis,

Digital copy available online at www.montanamining.org

81

W.S.S. City Council tour.

compared with any similar endeavor in Montana history, on March 15th, Earthworks and the Montana Environmental

Information Center (MEIC) filed a complaint against the Montana DEQ and Tintina asking that the court deny the

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Montana Mining Association — Montana Mining 2014

permit for decline construction until the DEQ completes further analysis. As a result, on April 7th, Tintina announced that it intends to submit an application for a Mine Operating Permit (MOP) to the DEQ. Tintina elected to withdraw its request to construct an exploration decline under the approved amendment to its exploration license, and determined that it can gain the necessary baseline information to support a feasibility study and operating permit application with less-invasive drilling operations during exploration. Submission of the MOP application will initiate the Environmental Impact Study (EIS) process for the entire project. “The DEQ did a very good job developing the Environmental Assessment of the proposed exploration permit amendment,” states Bob Jacko, VP of operations. “We believe this informative document will be extremely helpful when preparing for our Mine Operating Permit.” This decision avoids project delay and costs associated with litigating the complaint filed in Montana district court. After reviewing the complaint with its litigation counsel, Tintina believes it is without merit. However, the time and

As presently designed, construction of the mine and mill will provide approximately 300 jobs over an 18-month construction period. When in operation, the mine and mill would provide about 200 full-time jobs for the estimated 11- to 14-year life of the mine. resources anticipated to be required to In addition to submitting a MOP, defeat the complaint led to the decision Tintina Resources has two other steps to move ahead with the MOP. to complete before becoming an opera“We believe in the Black Butte Project tional project – completion of a feasibiland we believe that gathering informaity study, and raising capital to construct tion through additional drilling, rather a mine. than from an exploration decline, is a As presently designed, construction of better option than potentially lengthy the mine and mill will provide approxilitigation,” states Jerry Zieg, VP of explomately 300 jobs over an 18-month conration. “Tintina remains committed to struction period. When in operation, the implementing environmental safeguards mine and mill would provide about 200 and protecting the environment while full-time jobs for the estimated 11- to 14providing family-wage jobs in Meagher year life of the mine. County. Tintina pledges continued transTintina understands the importance parency and public involvement in our of community involvement, and plans activities. We are focused and commita mining operation that is responsive ted to protecting the surface and groundto local needs and fits well in the comwaters of the Sheep Creek drainage bamunity. Tintina is committed to doing it SMD_Ad.qxp_Layout 1 12-05-08 3:44 PM Page 1 from the beginning, including with sin.” right

a strong emphasis on the environment, safety and sustainability. If you are interested in a presentation or would like more information, please contact Nancy Schlepp at: 406-547-3466. Tintina Resources Inc. is traded on both the Toronto Venture Capital Exchange (TSX.V: TAU) and the U.S. overthe-counter (OTCQX: TINTF) exchanges. 17 East Main Street White Sulphur Springs, Montana, USA 59645 Tel: (406) 547-3466 Fax: (604) 628-1163 Web: www.tintinaresources.com Email: [email protected]

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83

Revett Mining Company, Inc.: Staying the course for 15 years, despite some changes

Toe pond at Revett tailings facility.

Change seems to come to the Revett Mining Company in many ways. Sometimes it is not expected, as was the case with structural instability issues at its

Troy Mine in late 2012. And sometimes it is self-directed, like a change in name from Revett Minerals to the Revett Mining Company, Inc. and redomiciling as a U.S. company in early 2014. But some things don’t change, and that is the company’s commitment to operate the Troy Mine safely and efficiently and to see its flagship project at Rock Creek through its final permitting steps. Revett was established as a private company in 1999. Today, the Revett Mining Company is listed on the New York, Toronto, and Frankfurt stock exchanges and is considered to be the cornerstone of the economy of northwest Montana. It

hasn’t always been an easy path, but as the company celebrates its 15th year, it remains resolute in being a responsible developer and operator at Troy and Rock Creek that it was initially established to be. Revett recommenced operations at the Troy Mine in late 2004. Its commitment to hiring and training locally meant that the path to operational efficiency would take longer than normally expected. But that was exactly what was done and by 2010, the company was operating at high efficiency with a stellar safety record, surprisingly low costs when compared to industry peers, and an environmental re-

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Montana Mining Association — Montana Mining 2014

cord of which everyone could be proud. The skilled workforce from Lincoln and Sanders counties operated at record production levels in 2011, and through successful exploration efforts, had extended mine life out to 2020. Unexpected pillar instability in inactive and legacy mining areas from development in the 1980s posed structural and safety concerns at the Troy Mine and operations were suspended in mid-December 2012. After several unsuccessful attempts to identify a viable and safe route back to current mining areas, a decision was made to develop an entirely new travel route to the active mining areas in the lower Revett (A and C beds) and to the deeper, undeveloped I beds. With the dedication and commitment of its workforce, the Troy Mine is now poised to return to limited commercial production later this year, and return to full production capability by mid-2015. Through identification of additional mineral resources, and the establishment of a revised mine plan, the Troy Mine now has a 12-year life-of-mine. Revett’s investment in the Troy Mine is also, in reality, an investment in the Rock Creek project. The experience and expertise that is garnered at the Troy Mine on a day-to-day basis will be transferred and applied at Rock Creek when the final permitting steps are completed. Revett’s operational experiences at the Troy Mine will position the company to com-

mence Phase 1 evaluation with an experienced crew. Technical data and information gathered from Phase 1 evaluation at Rock Creek will enable Revett and its regulatory partners to analyze and reconfirm all assumptions that are an integral part of the proposed Phase 2 plan of operation. Once in operation, the Rock

Creek project will provide family wage job opportunities for around 300 employees. To the greatest extent possible, these employees will be from the local area and they will be trained by Revett. After 15 years, some things change – but then again, some things don’t.

OUR PHILOSOPHY:

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revettmining.com Digital copy available online at www.montanamining.org

85

Montana Resources, LLP:

Securing the future By Mike McGivern, Safety Manager, and Tad Dale, VP Human Resources

Everyone at Montana Resources is part of the team. In order for the team to win, there must be a common goal. We are all stakeholders in the success or failure

of that common goal. It takes safe work habits, teamwork, sweat equity, focus, and courageous leadership to accomplish the yearly production goals that are budgeted each year. That common goal is to be a SAFE, low-cost producer of copper and molybdenum. The success of this goal is a tangible measurement that is done minute by minute, hour by hour, and day by day. In that regard, the team at Montana Resources can take pride in achieving this goal in 2014.

Safety Each day sets a new record. Montana Resources finished 2013 with 1,637 days without a lost-time injury, which equates to 3,503,037 hours worked. In addition, 2013 was our best total reportable inci-

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Montana Mining Association — Montana Mining 2014

dent rate since the mine started production in 1986. In June of 2013, the Continental Mine received a safety award for “Outstanding Dedication to Safe, Quality Production” from the International Society of Mine Safety Professionals. We look forward to continued improvement in 2014 and will achieve our goal of five years without a lost-time injury in July. As with all safety programs, there are a multitude of components that contribute to a company’s success. Leadership at the top and leadership throughout the entire workforce is one of the key components for Montana Resources. With strong leadership comes change and change means our belief system has changed. We believe zero incidents are a reality, incidents can always be prevented, and safety is not a cost; it’s an investment. A strong safety culture created through leadership brings positive attitudes to the workplace, reduced workers’ compen-

sation costs, lowers attrition rates, and brings a common goal that instills teamwork. Rolin Erickson, Montana Resources president, stresses at monthly meetings that it, “Takes minute by minute, task by task, and day by day to achieve our safety vision of every person going home safe and healthy everyday.” Mining is a dynamic business where new landscapes and new challenges are created each day and change is forever constant. It’s one of the reasons miners love what they do. The one value that doesn’t change is our employee’s commitment to safety. The ability to adapt to change, assess the

risk, develop a plan, and then execute the plan happens safely every day at Montana Resources (MR).

Production In 2013, MR produced 67,500,000 pounds of copper, 9,500,000 pounds of molybdenum, and 618,000 ounces of silver. Our production pounds of metals were slightly down from 2012, as our ore-body changes and grade is the predominant factor for the decrease. The price of copper ranged from $3.01 to $3.54 and molybdenum ranged from $9.07 to $11.34 in 2013. The outlook for 2014 is a softer copper price and molybdenum staying about the same. The

Keeping the tradition of mining alive in Butte. www.montanaresources.com

Digital copy available online at www.montanamining.org

87

forecast for production pounds in 2014 should equal production in 2013. If you have traveled from Helena into Butte, you probably noticed a shovel and trucks operating on what is known as the “D” East Expansion. This expansion will enhance the future of the Continental Mine. A five-year stripping program started at the beginning of 2014, with the goal to intercept ore in 2019. Mining of “D” East does several things for the future of mining in Butte. First, it provides the needed waste material to build the tailings impoundment; second, it will access a softer ore material with

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lion in goods and services in the state of Montana (which does not include the $2.2-million monthly power bill). The future looks bright for Montana Resources, well into the future. The orebody is defined, the mine plan is mapped out, and the skilled workforce is secondto-none. The employees are focused (not on the price of metals, which are out of anyone’s control) on the best safety practices that can be achieved, while keeping the operating costs under control. The “Tradition of Mining” lives on in Butte, Montana.

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higher grades of copper; and finally, the east high wall will be set back to allow deeper mining in the main Continental Pit in the years to come. Our extensive exploration drilling program conducted over the last several years has defined the ore-body and mining should continue for at least another 35 to 40 years. This is good news to the benefactors of the mining operation – MR’s 350 employees, the city of Butte, numerous support businesses, and the State of Montana. MR paid over $16 million in property and production taxes in 2013 and bought over $30 mil-

Phone: (406) 434-5583 Fax: (406) 434-5505 Cell: (406) 450-1127

Montana Mining Association — Montana Mining 2014

DAVE CERISE CLS

GENERAL MANAGER LUBRICANTS

Phone 406-782-0616 Mobile 406-490-3891 Fax 406-782-0260 1480 Continental Drive Butte, MT 59701

Preventing reportable leakage flow rates using new conductive geomembrane installation methods By Adam K. Maskal, P.Eng., Technical Manager, GSE Environmental Mine solution ponds are commonly lined with double-layer geomembrane liners with a drainage and leak detection system between the two barrier layers. This system captures leakage through damage in the primary liner, and prevents discharge to the environment by removing the hydraulic head from the secondary liner. While this system provides stateof-practice containment performance, the flow rates in leak detection systems are under ever-increasing environmental scrutiny. Preventing leakage and quickly finding damage for repair can help avoid costly investigations and reporting – and more importantly, can help avoid public relations issues.

Traditional Approach to Leak Detection Geoelectric leak detection surveys have been used for decades to locate damage in geomembranes, both following construction and during pond use. However, these survey methods require conductive materials to be present on the back side of a geomembrane. This poses logistical challenges when surveying the primary (top) layer of a doublelined pond liner, including the need to flood the leak detection layer. Flooding the leak detection layer requires filling the pond before the survey, then requires removal of water from the leak detection system and usually the pond after the survey. Often, the flow rates exceed reportable leakage rates when draining test water.

Spark Testing Exposed Conductive Geomembranes Over 20 years ago, conductive geomembranes solved these challenges with a very uniform, integrated conductive

surface on the back side of a geomembrane that allows surveys to be performed without water. However, electrically conductive paths through traces of conductive material in seams reduced survey sensitivity and/or masked the location of actual liner damage. The resulting background “noise” prevented accurate surveys of liners that are covered in conductive materials like soil or water, thus preventing surveys from being performed while a pond is in operation.

New Installation Techniques Installation techniques have been developed recently to provide complete electrical isolation between the bottom and top of installed conductive geomembranes. These techniques are relatively simple, requiring only a wedge welder accessory and a few electrical continuity tests during geomembrane installation and quality control. These improvements

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have eliminated the need for flooding leak detection systems to locate liner damage in ponds that are in service, allowing damage to be located quickly to streamline repair processes.

Results and Discussion The resulting advances in installation methodology have been used in numerous ponds and landfill cells at waste containment facilities over the past two years. The ability to prevent leakage from construction damage and quickly find operation damage for repair offers great promise for helping mining facilities avoid reportable flow rates in leak detection systems, improving public relations and investor confidence during these very difficult times. For further information, please visit http://www.gseworld.com/.

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Local students win essay contest Plagenz, Fulbright take first and third place in statewide competition

By Charlie Denison, News-Argus staff writer Reprinted with permission from News-Argus. About to embark on a Disney cruise to Jamaica, Mexico and the Grand Cayman Islands, Lewistown Junior High School eighth grade student Emily Plagenz was having a hard time motivating herself to write an essay for the Montana Mining Association’s second annual essay contest, about the future of mining in Montana and what effect it Greg Fulbright, Candice Dunn and will have on her. Emily Plagenz “She had the vacation on her mind and had to write her essay early, so we wanted to motivate her,” Emily’s mother Vicki said. To get her excited about writing the essay, her father Matt made a deal with her. “He said he’d match the prize money if she won,” Vicki said. Little did they know, Emily would take first place in the competition, winning a prize of $450. “We were all surprised,” Vicki said. “It was pretty funny.” “I didn’t think I was going to win,” Emily said. “When I told my dad, he didn’t believe me at first. I didn’t believe it, either.” Montana Mining Association administrative director Laura Feist, however, knew right away that Emily’s essay was a winner. “She nailed it,” Feist said. “Her essay was very informative and well-done.” Plagenz took first out of 150 contestants, receiving a score of 23 out of 25. Her essay, titled “Mining in Montana,” was impressive from the start, Feist said. Plagenz hooked readers in right away, captivating them with a question: “Mining: that may trigger many thoughts and emotions. Some people say that extracting the Earth’s natural resources will harm our environment. But do they really have all the facts?” In her essay, Plagenz tackled negative effects of mining such as pollution and viewshed, and she talked about how continual research is being done to see if the negative impacts are justifiable. The essay also focused on Montana as the “Treasure State,” and how its nickname came about through the value of the state’s natural resources, which should be utilized. In fact, Montana has depended on it.

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Montana Mining Association — Montana Mining 2014

“In the past, Montana mining has done incredible things for our state,” Plagenz wrote. “Without the help from the mining industry, Montana may not have been established for many years.” And, by no means, Plagenz added, could Montana be ruined by a continuation of mining in the state. “By mining in Montana, our sunsets won’t go away, our beautiful mountains won’t be any less amazing,” she wrote. “And by tapping into our natural resources, we can create more jobs, help the economy and have the substances we need.” Greg Fulbright, a classmate of Emily’s, took third place on his essay, winning a prize of $100. Like Emily, his essay focused on the benefits of mining, but he focused more specifically on copper mining. “If we did not have mining, we would not have copper,” Fulbright wrote. “If we did not have copper, we would not have the motors, wiring, radiators, connectors, brakes and bearings that are used in cars and trucks.” Both Emily and Fulbright focused on the job creation aspect of mining – both in their essays and their interview with the News-Argus. “Mining creates jobs,” Emily said, “and it has many uses. Palladium is discovered in mines, and we use palladium in iPhones. I thought that was cool.” Candice Dunn, their teacher, said she is very happy for both of her award-winning students. “I am so proud of the kids,” Dunn said. “It was not an easy essay and the kids really did a great job with it.” This is Dunn’s second year as a teacher at LJHS and her second year having her students participate in essay contests. “Last year I had a second-place winner for an essay on how we benefit from the elements of the periodic table,” Dunn said. “I think this was a harder essay and I was impressed with how well-organized the essays were.” The winning essays are published in the MMA’s annual Montana Mining magazine and online at www.montanamining.org. There will be an awards ceremony in May at the Fairmont Hot Springs for the winners, which is another award in itself. “All expenses but gas are paid for the winners and their families,” Feist said. “We really appreciate the students for their hard work, and we are really impressed with the results.” As for Emily’s father, he is following through on his promise to match the prize money. “Emily worked hard and put a lot of time into this essay,” he said. “She deserves it.”

First-place MMA Essay Contest winner

Mining in Montana By Emily Plagenz, Lewistown Junior High Mining: that may trigger many thoughts and emotions. Some people say that extracting the Earth’s natural resources will harm our environment, but do they really have all the facts? Much of the controversy stems from the negative effects such as pollution, viewshed, and how it contributes to the greenhouse effect. Everyday new developments are being made to the reduction of negative effects mining may have. These concerns are justifiable because Montana is known as the Treasure State, and we value our natural resources. With that being said, continuous research is being conducted to create programs and agencies for improved methodologies. The future of mining in Montana is dependent on these programs to decrease the harmful effects to the landscape. One program is the Center for Advanced Mineral and Metallurgical Processing (CAMP) which works with college students to develop new ways of reducing the waste extracting minerals can create. Another useful agency is the Montana Bureau of Mines and Geology. This agency is the main source of earth science developments in Montana. It was established in 1919 and has been improving our knowledge in mineral and water resources ever since. Montana mining has a story and just like any good story there is a past, a present, and a future. The best way to have an accurate outlook of the future

is to look at the past. Mining in Montana has done incredible things for our state. Without the help from the mining industry, Montana may not have been established for many years. In the past, and still today, this topic draws much attention and is very controversial. In 2012, 52 percent of Montana citizens voted that the mining industry was set on a good path. Unfortunately when they took the last poll on this subject in 2009, 23 percent said that it was moving in the wrong direction and 25 percent voted it to be the same as it was. Overall, most people believe that it is okay to tap into Montana’s natural resources; some on the other hand, think that Montana is to precious and shouldn’t be ruined. Ruined? By mining in Montana, our amazing sunsets won’t go away and our beautiful mountains won’t be any less amazing. By tapping into our natural resources, we can create more jobs, help the economy, and have the substances we need. We can have all that and only affect our environment by .04 percent. Not so bad, and that number is only going to get better as our research becomes more advanced. Everybody has heard of Apple. Right? Well, without Montana’s mines, they wouldn’t have the precious metal called palladium to use for their devices. Crazy! A multimillion-dollar company relying on mining in Montana? Also, in 2006, Montana alone extracted 41.8 million tons of coal, making Montana the sixth biggest coal-producing state! So, not only is it helping Montana’s economy, but it’s also helping the rest of the nation, as well. Currently, as you can see, Montana

and the rest of the United States is very dependent on the mining industry. As for the future? I believe that the mining discoveries have just begun! For Montana, and the rest of the nation, mining will continue to be a very controversial subject. Personally, I believe that if everyone looked at the positives, taking into consideration that we need these products for our everyday lives, everyone would realize just how badly we need mining for the prosperity of this state. Kids tend to live in the here and the now. We don’t usually think about these necessities that we take advantage of daily. I now realize that we need these mines. If mining in Montana would cease, our country would lose 3.6 percent of this resource! Also, Montana is the only location with a substantial amount of palladium! If we stopped mining that, kids all over the world would notice! Apple would have to find a metal to replace palladium, and that would not be an easy task! The future of Montana mining will affect me personally because, by the time I am of age to vote, these problems that are occurring now will be much greater of an issue. In my lifetime, we will have some very important issues to resolve. Being educated on this subject is very important now, so we can help predict and improve the future. By working together with top researchers and agencies we will continue to learn and improve the mining practices. Hopefully, with time and education, mining will be accepted and appreciated as the asset that it is.

Digital copy available online at www.montanamining.org

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Second-place MMA Essay Contest winner

Mining in Montana and how it will affect me in the future By Savannah Fischer, Centerville Public School

Connie Darko (left) and Savannah Fisher

The state of Montana has always been known for its wealth in mining. The first natural resources mined were precious gold, silver, and copper. Since this mining extraction, there has been a lot of diverse materials that have been mined such as: sapphires, natural gas, oil, coal, steel, lead, limestone, tale, bentonite, zinc, garnets, sand and gravel. The effects of mining in Montana communities promote growth, economic stability, and increase local state and federal tax revenue. One of the most noticeable benefits about mining is that it takes so many people to help with the mining industry. In addition to employing Montana residents, the demand often requires people to relocate from other areas. This can create an increase need on the housing market. As families move into these communities, there may be a need for education, health care, and public services. These public services are necessary to maintain the welfare of the community: police, emergency, sanitation, public works, and city

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municipalities. If the current schools do not have the room for additional children, more schools may have to be built. Reliable transportation to work and school is a huge factor requiring auto retailers to provide [their] customers with a suitable vehicle that fits their needs. There will also be a higher demand for food and clothing. Businesses will grow because of the increase of services required for more people moving into Montana. This will provide more jobs to the local community, which decreases the unemployment rate. If people have jobs, more people will be spending their money at local businesses. They will eat out at local restaurants, buy newer cars or recreational vehicles, and/or buy more items for their homes. Therefore, businesses are buying more product and goods, and are making a profit and earning a good living for themselves and their families. Mining companies buy more products from other suppliers who in turn buy products from other companies. All of this provides economic stability for the future. The state will gain revenue from individuals, as well as businesses. State and local governments will also gain revenue from taxes placed on mined products that are shipped to other states or countries. The distribution of taxes placed on these mined products alleviated the need to tax individuals to keep the state and local governments profitable. If individuals are being taxed less,

they have more money to put into the local businesses. This is one of the reasons Montana is able to not charge a sales tax; the revenue gain on mined products being shipped out-of-state brings the revenue necessary to maintain a fiscally sound government. When the local and state governments are generating more revenue than expenditure roads, transportation and public services are maintained. Mining in Montana has a huge effect on the individuals who live here, and offers a promising future. Although most of the mining operations you don’t hear about, there is a diverse number of materials which can be extracted from our land. Mining provides growth by the number of people who would move into your communities; it provides stability through the money being spent back into the community and other businesses; it provides revenue by taxes paid from individuals, businesses, and the mining companies to our government. Tax revenue from mining in Montana ranks third in the United States. As technology is used in mining will be able to trace the materials easier, and extract them without doing as much harm to people. This efficiency will also protect other natural resources: forests, wild life, rivers, lakes and streams. I’m very proud to be a resident of Montana. It’s a state that has learned to live off the land and maintain its natural beauty.

Third-place MMA Essay Contest winner

Modern-day mining By Greg Fulbright, Lewistown Junior High Even though it is invisible to most of us, the products of mining makes up a large part of our day-to-day lives. Imagine, if we did not have mining, we would not have copper. Copper mining shaped Montana politics, city building, and highway and railroad locations. If we did not have copper, we would not have the motors, wiring, radiators, connectors, brakes, and bearings that are used in cars and trucks. You can only imagine what would happen then. Most cars contain about one mile of copper wiring. Within the next year I hope to start driving. In some parts of the world people live in huge cities and do no need to drive, so having cars is not as important. Here in Montana, having cars is important to our lifestyle because we like to drive around town to Billings or Great Falls to shop and eat at different restaurants. Copper is also a very good conductor for electricity. I personally find electricity important to my everyday life: lights, heating the house, electrical appliances, and cars (batteries). Without electricity, there would be no alarm clock to wake you up in the morning, no coffee maker, no television for the morning news, and no lights to read this wonderful essay. No electricity would also mean no car to drive to work in and no radio to listen to in your vehicle. One interesting note about electric-powered cars is that they are extremely dependent on

mining. Not only do they have metal frames (metal coming from mined ores), but they run on electricity. With the majority of electricity coming from coal-fired power plants, they are more dependent on mining than on fossil fuels. Electricity is very important and mining should continue until, or when, we find a better power source that is as reliable as coal. I believe the future of mining will be very fruitful, considering that only 0.04 percent of Montana’s land is being disturbed due to mining. There are many more mined products than copper in Montana. A few are molybdenum, platinum, talc, limestone, and coal. Mining will have to be successful because most school funds are made up of coal mining profits. Coal also makes up a big part in our day-to-day lives. Besides fueling fires, to heat homes, businesses, and industrial plants, it generates electricity all over the state. Coal makes significant profits for companies and Montana from overseas trade with Asia. This money goes to things I have already mentioned, like schools. Mining (mainly coal) has many benefits, including that it is cheap and found in a lot of places. Coal is used by all of America. That is about 3.4 tons of coal for each American citizen each year! You also use nearly 40,000 pounds (18,143.7 kilograms) of recently mined minerals each year. The four Colstrip coal-powered power plants produces more than 2,094 megawatts of electricity. That is more than twenty thousand 100watt light bulbs! You can imagine how much mining coal is used for

electricity, 60 percent in the United States! To help raise awareness in the United States of the benefits of affordable, reliable coal-generated electricity and the invaluable role of minerals in our lives, certain groups are dedicated to educating the government, public and media like national awareness campaigns. With all of the good that mining does for us, there are still some environmental consequences. For example, it is dangerous to mine because of the unsafe working areas and equipment and machinery. Mining also has the potential to pollute due to toxic waste that can be generated. When it is unmonitored or unregulated, it can ruin or potentially destroy habitats. Examples are the Clark Fork River and the Berkeley Pit in western Montana that still require assistance in cleaning up and wildlife protection. In some areas, nature heals itself, though. In the Judith Mountains, historic mines still leak acid mine waste water. As the water runs out, it drains across the natural limestone rocks. The rocks neutralize the acid in the water, so fish are able to survive in the steams. Certain minerals minded are nonrenewable, meaning that they will run out before they are replenished. Finding easier areas to mine has caused mining companies to abandon mines in Montana leaving reclamation responsibilities to the state. The Kendall mines in the North Moccasins are a good example of this abandonment. In conclusion, I will experience the effects of mining, both good and bad. The benefits of mining, when it is done responsibly, make it a critical part of our future.

Digital copy available online at www.montanamining.org

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Powerful mine dewatering Electric and diesel centrifugal pump options By Kristen Gurick, Godwin – a Xylem Brand Mining applications are as diverse as construction or water and wastewater applications. Each jobsite has specific requirements and needs. Underground and open-pit mines have several layout and design obstacles. Regardless of the mine and its set-up, water is a mine’s biggest enemy. Getting water out – and keeping it out – is the primary focus of any mine plan. The deeper the mine, the more water that will be encountered and need to be removed. Once dewatering begins, mine planners can get back to what they do best.

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Project Feasibility Studies

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A pump company or dewatering solutions provider can partner with mine planners and mine engineers in the planning stages. A system analysis should be performed first; then pump selection can begin. Factors to consider in mine planning include portability, ease of maintenance and solids-handling. Another consideration is pH. Pumps can be customized with durable materials of construction specifically designed for low pH and other corrosive liquids. Pump systems are completely customizable, and the right one can only be selected after the operator or mine engineer understands the mine plan. Pump design, piping design and pump control can all be tailored to the mine plan. In addition to length of flow, elevation and discharge, consider layout drawings, hydraulic grade lines and pipe wall thickness. Perform friction-loss calculations. Also, consider present and future requirements. Mine design can change based on weather conditions, landscape vulnerability and market demands. A dewatering pump company can help design the mine plan, so that mine planners and engineers can focus on mining. A re-

liable dewatering system allows them to continue working. The power source is one component to consider for mine dewatering pump selection. When selecting a centrifugal

pump to fit their needs, many mine operators select diesel-driven centrifugal pumps. As with any other application, operators have options. The initial setup costs should be measured against the lifetime costs of pumping for the project. For a temporary job in a mine or quarry, diesel-driven pumps will typically be the most logical choice. Set-up costs are virtually zero. The pumps run on diesel fuel for the short duration of the project. If available near the mine, natural gas is also an option for these centrifugal pumps. Hydraulic submersible pumps are another option for mine planning. These pumps feature a power pack fitted to a submerged pump. The pump ends usually sit at varying levels of submergence, and their power packs sit above-ground. They are ideal for abrasive fine sand, high specific gravity (like that found in slurries) and can offer a total dynamic head up to 600 feet. These hydraulic submersible pumps can be diesel-driven

or electric, depending on system requirements.

Electric-Driven Pumps If a project is more long-running, consider electric-driven pumps. Electric submersible pumps have a solid history in mining applications. These pumps can handle moderately large flows (up to 2,500 gallons per minute) or extreme high heads (up to 750 feet). In addition to these submersible pumps, electric-driven centrifugal pumps are ideal for both prolonged temporary pumping and permanent installations. Designed for long-lasting durability, these pumps were initially used in industrial and municipal applications. However, their benefits span many more applications. A permanently installed electric-driven centrifugal pump will provide reliable, continuous pumping and reduced operating and maintenance costs. While not frequently used in mining

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applications, electric-driven centrifugal pumps are a viable option for a permanent installation or lengthy temporary pumping job. If the site location is not extremely remote, an electricity source can be found and power lines run to the jobsite. Accessing electricity can outweigh the lifetime costs of a dieseldriven pumping system if the time-frame is long enough. Costs for running elec-

tric-driven pumps will eventually be the more economical choice, even factoring in all initial set-up costs. For temporary jobs in which refueling is difficult, an electric pump is the ideal solution. Once power lines are established, pump accessibility is almost a nonissue. Lines can be run into underground mines and bolted to the ceiling. Mine planners may not consider this

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Montana Mining Association — Montana Mining 2014

option, but once designed and implemented, electric-driven pumps require less access. They do not need refueling, and their motors require less servicing. These centrifugal pumps also reduce the carbon footprint of any job.

Case Study: Electric-driven Pumps A gold mine had an environmental restriction that would no longer allow

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diesel-driven pumps, which had been operating at their site, provided by a rental company. The mine requested a solution for a portable pumping system that could use the voltage that was available at the tailings dam. The pumps needed to supply 7,500 gallons per minute (GPM) to the roaster facility (the location used to heat the ore and extract the gold) and 4,000 GPM to the autoclave system (similar to the roaster facility, but using pressure along with heat) at the mine. A pump provider designed a system that used the electricity available on-site. The electro center – the house containing the switchgear, variable frequency drive (VFD) and all the pump controls – was on a portable, structural skid and housed within an enclosure. This unit was placed on the crest of the tailings dam. Using this solution, the company provided three electric-driven, 12-inch centrifugal pumps, each capable of heads up to 390 feet and solids-handling capabilities up to three inches. These pumps provided the necessary flow rates and allowed the system to be moved upgradient as the tailings levels rose.

Diesel-driven Pumps Considering all the benefits of electricdriven pumps, diesel is still the right fit for many mining applications. If no onsite power can be made available, a permanent diesel- or natural gas-driven pump is a great option. Diesel-powered centrifugal pumps come equipped with a diesel engine for stand-alone operation. These pumps will work on any site, no matter how remote. Engines should meet the latest emissions regulations and tier compliance standards. Standard models of centrifugal pumps are often used for high-volume flow (which can reach 15,000 GPM or more), average total dynamic heads and solidshandling capabilities. Advanced lines of centrifugal pumps are better suited to applications with high or extreme high heads, or those that are used as jetting pumps. The total dynamic head of these pumps, single-staged, can reach or exceed 600 feet. This means that, in

a mining application, one of these highhead pumps can be sufficient to meet the pumping needs, or great heights can be achieved with just a few pumps staged together. Safety should always be a consideration. When running diesel-driven centrifugal pumps in an underground mine, air should be vented in to balance the diesel exhaust. This safety condition is eliminated with electric-driven pumps.

Case Study: Diesel-driven Pumps A coal mine needed to dewater its mine floor after a 100-year rain event. All mine operations were stalled. The mine operators needed to get the process back online as quickly as possible. Given the amount of water, the pumps needed to supply 1,100 GPM with 760 feet of total dynamic head. A solution was designed that required a six-man crew; 15,000 feet of high-density polyethylene (HDPE) pipe; two diesel-driven, eight-inch high-head centrifu-

gal pumps; and on-site fusion machines. All equipment was onsite within 10 days of the flood event. The pipe was fused on location, and the mine was quickly operational again.

Conclusion When water creeps into a mine, it becomes the most important aspect of mine planning. It needs to be dewatered as quickly as possible, but a design also needs to be developed that makes the most sense for the mine. Operators must consider available power sources for the most economical mine plan and reliable mine dewatering system. Kristen Gurick is a marketing communications specialist for Godwin, a Xylem brand. She can be reached at [email protected] or 856-467-3636. www.godwinpumps.com. Originally published in Pumps & Systems. Republished with permission.

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Report on the 2014 PDAC By Jillian Mitchell

In 2013, the annual Prospectors & Developers Association of Canada’s (PDAC) Convention boasted a record 30,000 attendees from 126 countries, including 600 self-identified aboriginal delegates; 50-plus members of parliament and government; 1,666 student delegates; and over 7,500 international delegates. It’s a most successful feat, declares PDAC executive director Ross Gallinger, especially in the math of the current market downturn. “In this downturn, we still see very strong signals of great par-

2000 Four Mile Vue Road PO Box 3810 Butte, MT 59702 Office: 406-494-3310 Fax: 406-494-3301 www.okeefedrilling.com 98

Montana Mining Association — Montana Mining 2014

ticipation – a lot of interest internationally, as well,” Gallinger says. “We see the PDAC Convention as the networking opportunity for the sector from a global perspective. That’s why we see it as very pertinent. And the fact that it’s occurred over 80 years means that it’s predictable, timely, and people know what they’re getting.” “The TSX is the financing market for the resource sector. This market has understood the business and therefore been very close to the sector as a consequence.” Each year, the four-day, early-March convention proves a wealth of opportunity – with an estimated 500 speakers; 1,000plus trade show exhibitors; and over 200 educational opportunities; as well as many social and networking opportunities. The association’s official mobile convention guide, Mobi, proves a great complement to the event. The 2014 PDAC was held March 2nd through 5th at Toronto’s Metro Toronto Convention Centre (South Building). “This year, there was a lot of discussion around the current access to capital issues that the junior sector is experiencing. That was top-ofmind,” says Gallinger, who cited the Ring of Fire luncheon and the mineral outlook luncheon as must-see events. “The state of the industry is going to be very much topical, as is where we go from here.” The 2014 event showcased the PDAC’s “new vision for future,” as outlined in the official strategic plan released in 2012. As Gallinger offers, the vision most appropriately builds upon the successes of the past while looking toward the future and well-complements the association’s rebranding of 2012. “The board approved a new strategy, which basically focuses priority on access to capital, access to land, and Aboriginal affairs. We’ve always been strong in those areas,” says the PDAC executive director. “Especially in the last year, we’ve really stepped up our game on finance taxation and securities. I really appreciate the efforts of the volunteers of PDAC who’ve come in to work together in this area.” For more information, please visit the PDAC’s website: www.pdac.ca.

Your partnership in the Montana Mining Association can start today. Membership starts at $10 a year. Visit the membership section on our website at www.montanamining.org or contact the Montana Mining Association office at 406.495.1444 or email us at [email protected]

GET INFORMED

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build relationships ▲ Grow your business by networking with other professionals ▲ Showcase your products and keep in touch with current trends ▲ Sharing in best safety practices within the mining industry ▲ Get up to date industry information from the MMA website ▲ Attend the MMA Annual Meeting for

partnerships with Provider PALS and DST

government ▲ Supports pro-mining candidates

▲ Provides Scholarship funding for postsecondary education

through the political action committee MINEPAC

▲ Encourages and provides many opportunities for volunteerism

▲ Keeps members informed through legislative alerts

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Company Name__________________________________________ # of Employees______________________________ Contact Name____________________________________________ Title_______________________________________ Address__________________________________________________ City/State/Zip_______________________________ Phone___________________________________________________ Fax________________________________________ Email____________________________________________________ Website____________________________________

The MMA has four types of Membership: Please check the box(s) that apply to you/your organization. q Individual Open to any individual who is interested in supporting or learning more about the mining industry.

$50.00

q Individual - Open to any “professional” individual who is currently working on/is interested Professional in mining, such as geologists, lawyers, surveyors, exploration professionals, consultants, etc.

$100.00

q Individual - Producer

$10.00

Open to any current employee of an MMA producer member.

q Individual - Hobbyist Open to any member of a chapter organization member (please include chapter name above in company).

$10.00

q Associate Open to any business, allied trade association, or supplier that provides services or products to the mining industry. q Less than 15 employees q More than 15 employees

$500.00 $750.00

q Non-Producer Open to companies or individuals not currently producing product in Montana. This includes all exploration, reclamation, consulting engineering, and mine and mill process development and research.

$1,000.00

q Producer Open to companies engaged in hard rock mining, doing business in Montana, and actively mining and producing product for sale. q More than 30 employees q Between 20-30 employees q Between 10-20 employees q “Small Miner” (No more than 3 employees)

$10,000 $1,800 $500 $100.00

Sand and gravel, semi-precious stone, decorative rock. q More than 10 employees q Fewer than 10 employees

$1,000.00 $500.00

Payment Options:

For office use only

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Date:

Please send your application to: Montana Mining Association, P.O. Box 5567, Helena, Montana 59604 Office: 406-495-1444 • Email: [email protected] • Web: www.montanamining.org

Name___________________________________________________ # of Employees______________________________ Address__________________________________________________ City/State/Zip_______________________________ School___________________________________________________ Area of Study_______________________________ Phone___________________________________________________ Email______________________________________

MMA Student Membership:

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Please send your application to: Montana Mining Association, P.O. Box 5567, Helena, Montana 59604 Office: 406-495-1444 • Email: [email protected] • Web: www.montanamining.org

$10.00

The Montana Mining Association would like to thank the following members for their continued support: Producers: Ash Grove Cement Company Barrick Golden Sunlight Mine Graymont/Indian Creek Plant Holcim US/Trident Plant Imerys Talc Minerals Technologies/Barretts Minerals Montana Resources, Inc. Revett Mining Company/Troy Mine Stillwater Mining Company U.S. Silver & Gold, Inc./Drumlummon

Non-Producers and Small Mines: Apex Abrasives Atlantic Richfield Company (ARCO) ATNA Resources, Ltd. Bigler Mining Co. LLC Butte Silver Mines Inc. Caboose Mining Company Contact Mining Company D&S Mining and Exploration Garnet USA Gold Corp., LLC Golden Rule Placer Mining Granite Resources Company Groundhog Mining and Milling Helena Sand and Gravel Mines Management, Inc. Montag Resources Newmont Mining Corporation Scott Exploration, LLC Thompson Falls Sand and Gravel Timberline Resources Corp. Tintina Alaska Exploration

Associates: AFFCO All Mechanical Services (AMS) All State Fire and Equipment AMEC/Geomatrix Ames Construction, Inc. Anvil International

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Applied Industrial Technologies Arcadis Arnold Machinery Company BBG Contractors Becker Wholesale Mine Supply Bison Engineering Brenntag Pacific Buckley Powder Company Carroll West-MT CDM Smith Chemical Montana Company Childs Geoscience Inc. Coleman Oil Company Confluence Continental Supply Inc. Coppermine Fire Suppression Cross Petroleum Service Crowley Fleck, LLP Cummins Rocky Mountain Davies Public Affairs Dick Irvin, Inc. DOWL HKM Energy and Environmental Measurement Corp. Environomics, Inc. Ernest K. Lehmann and Associates Express Employment Professionals Ezzle’s Wholesale F & H Mine Supply Fairmont Hot Springs Fenner Dunlop Fickler Oil Company GCR Tire Centers Godwin Pumps Gough, Shanahan, Johnson & Waterman HD Supply Waterworks HDR, Inc. Holland and Hart IDS Industrial Automation Consultation Industrial Sales and Service Interstate Power Systems JBR Environmental Consultants Inc. Joy Global – Western Ops

Kenyon Noble Kirk ENR, Inc. Knight Piesold Lacy & Ebeling Engineering Liebherr Mining MDM Supply Metso Modern Machinery Moen Builders Moore Oil, Inc. Nalco Company Newfields Mining & Energy Services NLC, Inc. Noble Excavating Northside Welding & Fabrication Northwest Mine Supply Northwest Parts & Equipment Northwest Parts and Rigging Company Northwest Pipe Fittings Northwestern Energy O’Keefe Drilling Orica Pacific Inter-Mountain Distribution Pacific Steel and Recycling Payne Machinery Quikrete Companies R. Dorvall & Associates Inc. Rain for Rent RDO Equipment REMA Tip Top NA Ruen Drilling Rulmeca Canada Limited RWI Enterprises, LLC Schneider Electric Smith and Sons Construction Spencer Fluid Power Spherion Spinner II Products SWCA, Incorporated Techline Services Tetra Tech, Inc. The Archibald Company The Frog Switch & Mfg. Co.

Titan Inc. Town Pump Inc. Tractor & Equipment Co. TREC, Inc. Trihydro Corporation Tri-State Truck and Equipment W.E. Dust Control and De-Icing, Inc. Warren Transport Westate Machinery Company Western States Equipment Whitewood Transport Wholesale Mine Supply Xylem Dewatering Solutions

Honorary Members: Fess Foster Tom Harrington Robin McCulloch Gene Nelson Doug Parker Mark Thompson Courtney Young

Individual Members/ Professional: Michael Bailey Hart Baitis Jeff Choquette Bruce E. Cox Catherine Dreesbach Gary Elwell, PE John Garcia Kenneth Hitron Paul Lammers Jon Metropoulos Doug Mitch Scott Rosenthal, PE Josh Savit Tom Sullivan Able Wright

Individual Members: Bill Antonioli Paul Antonioli Steve Antonioli Ted Antonioli Leora Bach Pam Backstrom Patrick H. Beddow Lisa M. Boettcher Alan Branham Frank Duval John Fitzpatrick

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Montana Mining Association — Montana Mining 2014

Darryl L. Flowers Rusty Gibson Terry Grotbo Rachel Haberman Dan Happel Tom Harrington David Harris John Hinther Tracey Holeman Brad Isbell Larry M. Johnson John Junnila Claude Kaseman Dick Komberec Tom Larson Jim Liebetrau Marko Lucich Rod McElwain R.W. “Rich” McKamy Dennis Morelock Brian Mullaney Jon Nickel Scott Nielsen George Nilson Tina Nolevanko Linda Norvell Brian Park Douglas C. Parker Mark Reinsel Dolores J. Rife Robert A. Routa Pam Spinelli Jim Volberding Chuck Watts Tom Weitz Dianne Wyss

Individual Members/ Producer Employees: Shane Albracht – Golden Sunlight Mine Nathan Allen – Holcim Ron Allen – Holcim Gail Amicucci – Holcim Carole Armstrong – Troy Mine Valerie Aughney – Holcim John Babbit – Holcim Paul Babcock – Golden Sunlight Mine Tracey Baldwin – Stillwater Mine Daniel Banghart – Golden Sunlight Mine David Banks – Golden Sunlight Mine Lee Barnett – Holcim John Beaudry – Stillwater Mine Kelly Bieber – Holcim

Brian Bjorndal – Holcim Jerry Booth – Tintina Resources Mark Bouldin – Holcim Mark Briggs – Golden Sunlight Mine Buck S. Bradford – Golden Sunlight Mine Randy Brothers – Golden Sunlight Mine Sheri Brown – Holcim Jim Burrows – Helena Sand and Gravel Jim Burt – Holcim Chuck Buus – Golden Sunlight Mine Jennifer Casey – Holcim Joe Chase – Holcim Bruce Clark – Troy Brandon Clements – Golden Sunlight Mine George Clements – Golden Sunlight Mine John Clements – Golden Sunlight Mine Jeff Coleman – Golden Sunlight Mine Harvey Cooper – Golden Sunlight Mine Eugene D. Crain – Golden Sunlight Mine Kyle Cram – Holcim Tad Dale – Montana Resources Matt Danielson – Golden Sunlight Mine Joe Dillon – Golden Sunlight Mine Tim Dimock – Golden Sunlight Mine Steve Dorvall – Holcim Kyle Dosland – Holcim Jill Dove – Golden Sunlight Mine Matt Dove – Golden Sunlight Mine John Downing – Golden Sunlight Mine Don Drake – Golden Sunlight Mine Jim Dundas – Holcim Alan Duval – Holcim Keith Dykman – Holcim Toby Edwards – Golden Sunlight Mine Jason Ellis – Graymont Guillermo Enriquez – Golden Sunlight Mine Casey Erickson – Golden Sunlight Mine Craig Espeland – Holcim Jim Essex – Holcim Brent Evans – Holcim Myron D. Evanson – Holcim Mark Ferster – Stillwater Mine Amy French – Golden Sunlight Mine Brian French – Golden Sunlight Mine Greg Gannon – Holcim Ennis Garaghty – Stillwater Mine Christina Gardiner – Stillwater Mine Greg Garwood – Golden Sunlight Mine Steven Gates – Golden Sunlight Mine Melissa Gentner – Holcim Bruce Gilbert – Stillwater Mine John Goetz – Holcim Sam Graham – Golden Sunlight Mine

John Hansen – Holcim Thomas Hanser – Golden Sunlight Mine Mike Harmon – Holcim Josh Harned – Golden Sunlight Mine Brian Harney – Golden Sunlight Mine Chuck Hart – Holcim Brenna Hauuse – Golden Sunlight Mine Tim Hockenberry – Golden Sunlight Mine Rodney Holm – Golden Sunlight Mine Shaun Holm – Golden Sunlight Mine Philip Hoter – Golden Sunlight Mine Michael Hoven – Golden Sunlight Mine Tim Howser – Golden Sunlight Mine Ken Hugulet – Golden Sunlight Mine Lance Hugulet – Golden Sunlight Mine Andy Hyndman – Golden Sunlight Mine Bob Jacko – Tintina Resources Jeff Janacaro – Golden Sunlight Mine Clint Jensen – Troy Mine Ron Jensen – Holcim Allen Jevning – Holcim Martin Johnson – Golden Sunlight Mine Ranetta Jones – Stillwater Mine Rick Jordan – Golden Sunlight Mine Bill Kelly – Golden Sunlight Mine Bob King – Golden Sunlight Mine Mark Kockler – Golden Sunlight Mine Jerry Kolstad – Stillwater Mine Scott Krauszer – Stillwater Mine Scott Laroque – Golden Sunlight Mine Cory Learn – Holcim Dustin Lewis – Imerys Talc Tim Lindsey – Troy Mine Jim Loomis – Golden Sunlight Mine Logan Lyders – Holcim Bill Mack – Holcim Craig Madden – Golden Sunlight Mine Ken Manley – Holcim Lonnie Marquardt – Golden Sunlight Mine Robert Marquardt – Golden Sunlight Mine John Marshall, Jr. – Golden Sunlight Mine Tanner Martell – Holcim Robert McCullough – Golden Sunlight Mine John McCurry – Stillwater Mine Lori McCurry – Stillwater Mine Laurence McGillvray – Golden Sunlight Mine Jim McGrath – Golden Sunlight Mine Charles Miller – Golden Sunlight Mine Doug Miller – Troy Mine Greg Miller – Holcim Mary Misale – Golden Sunlight Mine Mike Moodry – Golden Sunlight Mine Dustin Moralez – Golden Sunlight Mine

Howard Morkert – Troy Mine Steve Morrical – Holcim Clint Mortensen – Golden Sunlight Mine Mike Mullaney – Holcim Jed S. Munday – Golden Sunlight Mine Adam Munn – Holcim Chris Nelson – Golden Sunlight Mine Tom Nicholson – Golden Sunlight Mine Tim Noss – Holcim Randy Nulph – Golden Sunlight Mine Darrin Olsen – Golden Sunlight Mine Merle Olson – Golden Sunlight Mine Jim Owen – Holcim Miles Page – Golden Sunlight Mine Jason Palin – Stillwater Mine Ray Panisko – Golden Sunlight Mine Shane Parrow – Golden Sunlight Mine John Patritti – Golden Sunlight Mine Michael Peet – Golden Sunlight Mine Caleb Powers – Golden Sunlight Mine Christopher Reed – Golden Sunlight Mine Brad Robinson – Holcim Curtis Rogers – Holcim Brandi Rowe – Stillwater Mine Dustin Russell – Golden Sunlight Mine Tyler Rye – Golden Sunlight Mine Jeff Saarinen – Golden Sunlight Mine Harold Sant – Golden Sunlight Mine Vince Scartozzi – Tintina Resources Vincent Schaetor – Holcim Darrell Scharf – Golden Sunlight Mine Nancy Schlepp – Tintina Resources Scott Schneckloth – Golden Sunlight Mine Dean Schroeder – Golden Sunlight Mine Steve Shafer – Holcim Steven Sharkey – Golden Sunlight Mine Kevin Shiell – Stillwater Mine Frank Sholey – Golden Sunlight Mine Seth Slatter – Golden Sunlight Mine Dan Smith – Holcim Larry Smith – Golden Sunlight Mine Paul Smith – Golden Sunlight Mine Scott Smith – Holcim Stephen A. Stebbins – Stillwater Mine Dave Stevens – Holcim Michael Stocker – Holcim Kelly Stolp – Golden Sunlight Mine Bill Stone – Golden Sunlight Mine Rob Strub – Golden Sunlight Mine Kelly Sullivan – Golden Sunlight Mine Mark Thompson – Golden Sunlight Mine Brandon Thurston – Holcim Richard Todd – Golden Sunlight Mine

Sharel Uphus – Golden Sunlight Mine Tom Van Norman – Golden Sunlight Mine Robert Wahl – Holcim Cheri Waller – Holcim Tim Ware – Golden Sunlight Mine Debbie Weaver – Stillwater Mine Tim Weber – Holcim Kerry Weightman – Golden Sunlight Mine Clifford Wilcox – Holcim Skyler Willard – Helena Sand and Gravel Ken Williams – Golden Sunlight Mine Jeanie Winstrom – Troy Mine Matt Wolfe – Stillwater Mine William Woods – Holcim Jonathan Youngers – Golden Sunlight Mine Jerry Zieg – Tintina Resources John Zoller – Holcim

Individual Members/ Hobbyists: Buck Bazen Richard Berg Cy Bras Elton Chorney Tom Gignovx David Hanke Nick Lechner Gerald Lukasik Jack Marshall Robin McCulloch Roy McFadden Allen McLintick Dirk Nelson Gene Nelson Don J. Parsons Matt Schemel Michael Schmidt Candee Schweitzer Don Serba Debbie Shea Cliff Simonsen Jill Sotendahl Chuck Swysgood John E. Thompson Braxton Waiborn Katharine Wikstrom Lori Zeiser Tim Zeiser

Digital copy available online at www.montanamining.org

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Index to Advertisers A and M Fire and Safety Inc...................................................................... 66

Interstate Power Systems.................................................................... 33, 76

Action Mining Services Inc........................................................................ 55

Irwin Car and Equipment............................................................................ 3

AFFCO / Anaconda Foundry Fabrication Company, Inc............................ 12

J.S. Redpath Corporation........................................................................... 15

AK Drilling Inc........................................................................................... 39

K&N Electric Motors Inc............................................................................ 89

All State Fire Equipment........................................................................... 59 Alpine Sales & Rental Corp........................................................................ 11 Ames Construction, Inc............................................................................. 25 Applied Industrial Technologies............................................................... 34

Mines Management, Inc......................................................................... OBC Montana Bolt Inc...................................................................................... 30

Arcadis U.S., Inc......................................................................................... 67

Montana Crane Services............................................................................ 26

Arnold Machinery Company..................................................................... 17

Montana Electric Motors, Inc.................................................................... 66

Atlas Copco................................................................................................ 63

Montana Resources................................................................................... 87

Becker Wholesale Mine Supply............................................................... 103

Moore Oil, Inc............................................................................................ 60

Billings Clinic............................................................................................. 20

Nelson Brothers Mining Services............................................................... 96

Bison Engineering, Inc.............................................................................. 28

NewFields.................................................................................................. 12

Brenntag Pacific, Inc................................................................................. 74 Browning Kaleczyc Berry & Hoven P.C...................................................... 26 Buckley / A Dyno Nobel Distributor.......................................................... 27 Camp At Montana Tech............................................................................. 84

Noble Excavating Inc................................................................................. 80 Northside Welding & Fabrication, Inc....................................................... 38 Northwest Mine Supply............................................................................. 28

CDM Smith................................................................................................. 73

Northwest Pipe Fittings, Inc...................................................................... 65

Chemical Montana Company.................................................................... 58

O’Keefe Drilling......................................................................................... 98

Childs Geoscience Inc................................................................................ 48

Orica Mining Services................................................................................ 38

Contact Mining Company.......................................................................... 75

Pacific Inter-Mountain Distribution, LLC.................................................. 57

Cross Petroleum Service............................................................................ 30

Pacific Steel & Recycling............................................................................ 29

Crowley Fleck Attorneys............................................................................ 18

Pierce Leasing............................................................................................ 95

Cummins Rocky Mountain........................................................................ 82 D&S Mining & Exploration........................................................................ 60 Dick Irvin Inc............................................................................................. 88 Dowl HKM................................................................................................. 20

Rain For Rent............................................................................................ 53 RDO Equipment Co.................................................................................... 72 Revett Mining............................................................................................ 85

EEMC / EMRC.............................................................................................. 64

Richwood................................................................................................... 24

Environomics............................................................................................. 47

RMA / IMA.................................................................................................. 68

Ezzie’s Wholesale Inc................................................................................. 56

Ruen Drilling Incorporated...................................................................... IFC

F&H Mine Supply, Inc................................................................................ 41

Selway Corporation................................................................................... 83

Fairmont Hot Springs Resort..................................................................... 96

Small Mine Development LLC................................................................... 83

Fickler Oil Company.................................................................................. 88

Smith Monroe Gray Engineers, Inc............................................................ 46

GCR Tire Centers / Bridgestone Mining Solutions..................................... 74 GEM Systems, Inc....................................................................................... 46 Geometrics............................................................................................ 5, 81 Golden Sunlight Mine.................................................................................. 7

Stillwater Mining Company....................................................................... 23 Stone Raven Resources, LLC...................................................................... 72 SWCA Environmental Consultants............................................................. 71

Gough, Shanahan, Johnson & Waterman, PLLP.......................................... 8

T.F. Hudgins Incorporated......................................................................... 45

Graymont Western US................................................................................ 77

Techline Services, Inc................................................................................ 21

Groundhog Mining & Milling Company LLC.............................................. 56

Terrasource Global.................................................................................... 19

GSE Environmental, LLC............................................................................ 13

Tetra Tech.................................................................................................. 78

H & E Equipment Services......................................................................... 79

Tintina Resources Inc................................................................................ 69

HD Supply Waterworks.............................................................................. 32

Tractor & Equipment Co............................................................................ 35

HDR Engineering, Inc................................................................................ 43 Holcim (US) Inc.......................................................................................... 61 Holland & Hart LLP................................................................................... 31 Hydrometrics, Inc...................................................................................... 86

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MDM Supply.............................................................................................. 31

TREC, Inc................................................................................................... 94 Westate Machinery Company.................................................................... 70 Western Wyoming Community College..................................................... 97

Imerys Talc – North America...................................................................IBC

Westmoreland Coal Company................................................................... 22

Industrial Equipment Manufacturing Ltd................................................. 18

WWC Engineering...................................................................................... 52

International Directional Services............................................................. 10

Xylem Inc..................................................................................................... 9

Montana Mining Association — Montana Mining 2014

World Leader As the world leader in industrial minerals, Imerys designs, manufactures and sells high value-added mineral-based products that enable its customers to optimize their own products or production processes, whether in consumer goods, industrial equipment or housing construction. The talc we mine and process 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 paper-making a greener process.

Commitment We have a culture of ownership, fostered by an entrepreneurial mindset. Through it all, we maintain our unwavering commitment to our people and the communities in which we operate. We also share one of the most beautiful ecosystems in the world with our neighbors – so continual reduction of our environmental footprint comes naturally.

For more information about Imerys, visit www.imerys.com and www.imerystalc.com.

Montanore Minerals Corp.

A subsidiary of Mines Management, Inc.

Advancing the

MONTANORE Silver-Copper Project Lincoln County, Montana Innovative and Responsible Natural Resource Development Northwestern Montana boasts host to some of the world’s largest deposits of copper and silver. Mines Management, Inc., are committed to advancing the development of such projects in a manner consistent to further the interests of the local community and the long term preservation of the environment.

Mines Management, Inc. NYSE-Market: Toronto Stock Exchange:

“MGN” “MGT”

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