Montana Talc Co. details its successful entry into the talc business

The Montana Talc ore body was discovered in 1983 in Montana's Gravelly Range, about 40 km (25 miles) south of Ennis. Initial drilling indicated a 910-kt (1-million st) ore body of high purity talc. Preliminary analyses on ore cuttings included chemical analysis, brightness measurements, and microscopic evaluations of the structure of the talc. Results indicated it was similar to talc currently being marketed from Montana and it would probably have good commercial value. Based on the positive test results, a test pit was made and a 180-t (200-st) sample of ore was mined. A portion of the ore was ground to various particle sizes and evaluated to determine its strengths, weaknesses, and other characteristics. The deposit is located close to the Cyprus Yellowstone deposit. It was therefore believed that Montana Talc ore may possess many of the same characteristics. Testing and analyses showed the talc to have a high purity and an extremely large surface area, even for Montanatype tales. The ore was also situated in a massive deposit, indicating low cost mining. While the lab analyses were encouraging, the true evidence would be obtained from commercial tests in the marketplace. About 91 t (100 st) of ore were ground to product specifications for pitch control, paint filler, and plastics filler. Consumers were contacted and requested to evaluate the sample talc products. A major trial for the talc as a pitch control agent was arranged at a Northeast paper mill. The trial indicated the new Montana Talc product performed as well or better than the current standard in the industry. In fact, due to a minor modification in the compaction process to make the transport of the talc easier, the product had substantially less dust than the currently used product. The operating people at the paper mill requested that management purchase this talc. Trials were also run at paint plants for use as a pigment filler. And the talc was fabricated into a number of plastics compounds. The initial product tests were largely positive and provided encouragement to proceed with the project. Different grinding mills were used and their performance evaluated. Significant data were generated by the custom grinders. They indicated how the Montana Talc ore ground and the particle size distributions produced at different grinding settings. Encouraged by the positive marketing tests, a prefeasibility study was commissioned. A talc grinding plant and mine plans were designed and capital and operating costs estimated. Initial economics showed an attractive return. The operating costs were among the lowest in the industry. The positive economics, along with the excellent results by the products in the marketing tests to the paper, paint, and plastics industries, led to the recommendation to proceed with the project. Plant construction began in June of 1985. The Montana Talc Co. (MTC) analyzed the data from the commercial tests. Based on the product's outstanding performance and the uniqueness of its high purity and platy structure, a strategy was developed to position the company as a premium talc supplier.