Work moving ahead on mine

By GWEN ALBERS Western News Reporter

When Noranda shut down its fully permitted Montanore mine in the mid-1990s before beginning operations, Noble Excavating was hired to close the entrance.

Ten years later, the Libby contractor has returned to the edge of the Cabinet Mountains Wilderness to reopen that same tunnel.

Noble Excavating is among several local companies that new owner Mines Management has already spent more than $500,000 with in its attempt to reopen the silver and copper mine along Libby Creek. It was closed in late 1994 due to low metal prices.

Money spent in Libby so far is just the beginning for the $400 million project, which is going through the permitting process. Mines Management will work with as many area companies as possible.

"Our goal is to keep it local," said Eric Klepfer, vice president of operations for the Spokane company.

Chris Noble, the owner of Noble Excavating, expects to continue working "on and off" at the mine 12 miles south of Libby. His workers last week were installing conduit and a drainage line.

Starlite Fencing, Rick's Rental, Montana Machine & Fabrication, JMF Services, Timberline Auto Center and Cabinet Mountain Chevrolet Pontiac also have gotten a share of the pie.

"At this point, they've spent $6,000 to $10,000 with us," said Rick Gullingsrud, owner of Rick's Rental at 1232 West Highway 2.

Mines Management has rented an excavator, air compressor, skid steer and generators.

"It's nice because it's more business and more business is a good thing," Gullingsrud said. "They're really easy to get along with and easy on the equipment. They take good care of it and are a good company to work with."

Starlite Fencing put up a 3,600-foot long, 6-foot high chain-link security fence. The company hired seven people to do the project and expects to return in the spring for more work, said owner Steve Gunderson.

"It was a pretty large project," Gunderson said. "We were pretty surprised (to get the contract). They were great people to work with."

Leroy Thom, owner of Montana Machine & Fabrication on Highway 2 South, has three to four projects for Mines Management. The company so far has spent $10,000 to $15,000 with Montana Machine.

"We built the gate for the mine's opening, and we also bid a job to do the frame work for when you first go inside the mine," Thom said. "I think they want to be a community-oriented company and I think they want to try to deal as local as they can."

In addition, Mines Management has hired five people. Three to six more people are expected to be hired as soon as the company gets the permit to remove the water from the mine. This will allow Mines Management to explore the mine.

Mines Management hopes to begin construction in 2008. Some 500 construction workers will be needed and another 250 to 300 permanent employees will operate the mine for an expected 15 to 20 years. They are expected to be paid $40,000 to $50,000 a year.

Mines Management in August 2002 began the process of re-permitting the Montanore Mine. It's located near Forest Service Road 278 off Bear Creek Road.

The company in May 2006 acquired Noranda Finance Inc., including Noranda Minerals Corp., and Normin Resources Corp. This gave Mines Management the ability to explore and evaluate the underground deposit in hopes of making a production decision by 2007.

Mines Management in July obtained the permits from the state to reopen the tunnel.

Noranda, the mine's former owner, was fully permitted and ready to start when it pulled the plug and shut down the project. At the time, silver sold for $4 an ounce and copper, 60 cents a pound. As of last week, silver sold for $12 per ounce and copper, $3.20 a pound.

Noranda in the early 1990s had completed 14,000 feet of tunneling beneath the Cabinet Mountains toward the silver and copper deposit. That tunnel begins where Libby Creek exits the Cabinets. It is estimated to be 2,000 feet short of the deposit.

Once construction of the mine begins, two parallel tunnels will be dug beginning at the mouth of nearby Ramsey Creek. The tailings will be piled between Cherry Creek and Bear Creek to the north.