Sandfire Resources Advances Black Butte Copper with Permit Approvals, Montana
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Sandfire Resources America has released updates on its Black Butte Copper underground mining project in Montana.
FINAL MINE OPERATING PERMIT GRANTED
On August 14, 2020, the Montana Department of Environmental Quality issued a final approval for the Phase I Bonding for the underground Black Butte Copper project. The company has posted a US$4.65 million surety bond for the project, the MT DEQ has approved the bond posting and has issued a final mine operating permit allowing the company the right to commence Phase I Development surface construction at the mine site.
COMMENCEMENT OF PHASE 1 DEVELOPMENT SURFACE EARTHWORKS
The company has signed a construction contract for the commencement of surface earthworks with MK Weeden, a Lewistown, Montana company. In addition, it has signed a fencing contract with a local Meagher County business, Menard Construction Inc. These two contractors will employ up to 30 Montanans on the early earthworks project this year.
“Putting local Montana companies to work has always been an important company goal and now, more than ever, it will help with the economic recovery as we continue to deal with COVID-19 pandemic. Strength in the natural resources sector is crucial to creating lasting opportunities for the people of Montana,” said Sandfire America’s CEO and VP of Project Development, Rob Scargill.
HARD ROCK MINING IMPACT PLAN ACCOUNT FULLY FUNDED
The Montana Hard Rock Mining Impact Act, a law unique to Montana and of great importance for local governments, requires a large-scale mineral development to prepare a Hard Rock Mining Impact Plan (HRMIP) which describes the social and economic impacts the mineral development will have on affected units of local government. The company must then provide the local governmental units funding to address identified financial impacts. The units of local government affected by the Black Butte Copper Project are Meagher County, the City of White Sulphur Springs, and the White Sulphur Springs Public School District #8. The agreed Black Butte Copper HRMIP requires the company to place $437,000 in an escrow account available for access by the local government entities as needed during mine construction. The account undergoes an annual review ensuring it adequately covers impacts.
“This law is a fabulous monetary bridge for our community ensuring no lag time is felt as our community infrastructure needs change as the tax base expands- ultimately benefitting everyone. This brilliant law should be considered by other areas of Montana business,” said VP of Communication Nancy Schlepp.
FEASIBILITY STUDY REACHING FINALIZATION
Work on the feasibility study for the project is being finalized, using the agreed bonding amounts and with updated market inputs after COVID-19. The feasibility study is expected to be published in the September Quarter, 2020.
About Sandfire Resources
Sandfire Resources is committed to creating sustainable value for stakeholders and shareholders through the responsible development of the Black Butte underground copper mine while safeguarding employees, communities, and the environment.
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