Pegasus Gold - Discovery and Development of the Pegasus Operation at Zortman and Landusky, Phillips County, Montana

The modem open pit-heap leach operation by Pegasus Gold Ltd. at Zortman and Landusky in Phillips County, Montana, is a new chapter in the mining of gold in these districts. The discovery of bulk tonnage ore bodies and their development and ultimate production was based on a long history of mining and exploration in that part of Montana. Gold was originally discovered in the Little Rocky Mountains as placer deposits by Pike Landusky and Lou Myers. This discovery in the 1880s was not significant, but Pike Landusky continued prospecting for lode deposits, and he eventually located the Gold Bug and Little Ben, two of the larger Au-Ag producers in the district. Eventually two camps, Landusky and Zortman, grew in the LittleRocky Mountains. By the time Landusky was killed in 1894 by Kid Curry, the district was still a discontinuous small producer. Steady production commenced in 1907 with the organization of the August Gold Mining Co. Eventually high grade ores on specific veins were exhausted by selective underground mining and the district was idle by May 1942. After World War II in the early 1950s. E.A. Scholz tried to continue selective underground mining, but he realized the stockworks surrounding the larger veins constituted bulk tonnage targets. Ultimately in the 1976- 1979 period he organized two exploration efforts, one each for the Landusky and Zortman areas, and brought these into production as the Argo and Pegasus gold mines. By the time of his death, Apr. 8, 1980, both operations were producing gold. Later the two companies were merged as Pegasus Gold Ltd. Upon the death of Scholz, V.F. Hollister continued as the geological consultant, Ed Roper was engaged as general manager, and J. J. Crowhurst was given the responsibility of executive vice president. The discovery of open pittable ores and the application of heap leach technology was important in the development of mining. Both contributed to the low cost operation that continues to this day. The attached article by L.M. Rogers, then chief geologist, and M.S. Enders, his assistant, describes the geology of the deposit. It was presented at the Northwest Mining Association meeting in 1982.