Montana Exploration – A Review of 1992 Activities

Exploration activity in metallic minerals continued to decline in Montana in 1992 as companies either reduced budgets or left the state. The number of active projects dropped another 50% from 1991. Expenditures were 3% to 6% of 1989's 28.6 million. Many of the major mining companies closed offices in Montana. Although depressed commodity prices have hurried the exodus, continuous changes in environmental regulations, as well as the Mining Law of 1872, without regard to economic effect have had the most serious impact. Many companies indicate that Third World countries present a more stable business environment than the United States. Grassroots projects are nearly non-existent, while late-stage programs continue cautiously. Exploration activity continued at the following projects: Garnet, Pegasus Gold; Southern Cross, Asarco; Elkhorn, Goldfields; 7-Up-Pete, Phelps Dodge and Canyon Resources; Miller Mountain, Pegasus Gold; Sheep Creek, Cominco American Resources; Checkerboard, Kennecott and BHP Utah International; Emigrant Creek, Pegasus Gold; and Crevise, American Copper and Nickel. All mineral activity, whether on private, state or federal land, is regulated by the Montana Department of State Lands under three classes of permits - Small Miner Exclusion Statements (SMES), Exploration Licenses and Operating Permits. A total of 230 Exploration Licenses are active in the state with 26 of those being new. However, there are only 433 projects current in Montana, with many of those in the reclaiming stage. The majority of exploration projects consist of individuals expending time rather than money on properties. The number of mines functioning under operating plans declined by one when W.R. Grace closed its Zonolite operation.