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Women picket mining company

| July 18, 2007 12:00 AM

By ERIKA KIRSCH Western News Editor

A protest was staged by several fervent women Thursday morning outside the offices of Montanore Minerals Corp. in Libby.

Several elderly women picketed in support of Louise Voves, 82, of Spirit Lake, Idaho and Lucille Penney, 85, who currently lives at the Libby Care Center. The women claim Montanore Minerals Corp. pilfered mining claims that allegedly belong to the women.

"This was an opportunity to exchange ideas," according to Glenn Dobbs, the president and chief executive officer of Mines Management, Inc., the parent company of Montanore Mines Corp. "This is an honest difference of opinion. The disagreement is founded in the realities of the law."

Dobbs claims three men are trying to develop a public perception that a small mining company is "beating up on elderly ladies," he said. Frank Wall, Arnold Bakie and Walter Lindsey are the three men fighting for Voves and Penney and their alleged mining claims.

"Wall, Bakie and Lindsey have taken the position that if we don't give them money then they are going to try to damage the company," Dobbs said. "They've spun a good yarn."

Protesters' signs exclaimed that Montanore Minerals Corp. were claimjumpers, and read, "Dobbs, would you do this to your mother or grandmother?"

Dobbs and Voves spoke while protesters picketed. Voves said she and Penney have over 1,000 claims in the Cabinet Mountain region, where the Montanore mine adit is located, that have been under their ownership since 1984. Voves told Dobbs that the property lines near the adit were moved and that "the adit opening is one of our claims," Voves expressed vehemently. "I know there's ore up there."

In the early 1980s, U.S.Borax leased mining claims from Mines Management, Inc.'s predecessor Heidelberg Silver, Dobbs said. Borax then turned over their interests to Noranda Mines, which spent $100 million on the project. Heidelberg merged with Mines Management and Noranda withdrew in mid-2002. Noranda quitclaimed to Mines Management the claims pursuant to the claim lease contract, Dobbs said.

Noranda had been leasing 1,000 claims from the Libby Creek Venture group, which was organized by Voves and Penney and is run by Bakie, Lindsey and Wall. Only 8-10 claims could affect access to the Montanore project, Dobbs explained.

In 2003, Montanore was contacted by Libby Creek Ventures asking for a joint venture to buy or lease the claims. In 2006, Libby Creek Ventures said they wanted to sell the alleged claims for $10 million and then wanted subsequent royalties from the Montanore project, Dobbs said.

"They claimed they own the Libby adit and made other claims that were borderlined on the absurd," Dobbs explained. "We said we wouldn't buy the claims or pay any money. We believe they have no valid claims that impact the Montanore project and so we wouldn't pay."

Dobbs said Wall began demanding more money.

"[Wall] began making demands for $3 million and $9 million," Dobbs continued. "He threatened that if we didn't negotiate with them then they intended to try to create the impression that a big international mining company funded by off-shore sources is taking advantage of two little old ladies. We believe a cruel hoax is being perpetrated.

"Our company has a policy of not paying extortion money to anyone."

Dobbs told Voves that if she believed they had valid claims then she needed to protect her interest and hire a mining lawyer. However, the position of Mines Management is that Libby Creek Ventures has no valid claims that impact the Montanore project whatsoever, Dobbs said.

"If they believe that we are jeopardizing their rights then they should let us know or higher a knowledgable mining attorney to examine those issues."

Once the adit is safe Mines Management would allow a geologist hired by Libby Creek Ventures to sample any portion if the claims were valid, he said. Part of what makes a mining claim valid includes paying assessment fees and making sure the claims are staked properly.

Libby Creek Ventures wants to perform a drill program at the adit and the first drill sites lined up into the adit. Mines Management asked the U.S. Forest Service and the state of Montana to keep Libby Creek Ventures away from the adit and Libby Creek Ventures were subsequently required to stay 200 feet away from the adit, Dobbs said.

"The only solution is to let the courts settle these issues," Dobbs explained. "We're willing to discuss any valid claims that impact the Montanore developmentā€¦ They can't make these untrue assertions without consequences."

The Montanore project will employ approximately 500 workers and will take approximately $400 million to build. When operating, with a tentative production date in 2011, approximately 250-300 employees will be hired for approximately 20 years, Dobbs said. The mine is expected to produce $10 million annually in Lincoln County.

Libby resident Charlotte Woods was adamantly opposed to the protesters' message on Thursday.

"This is the most selfish thing I've ever seen in my life," Woods said. "They're interfering with about 450 jobs and the local economy. These are unproven claims and it's incredibly selfish all for perceived and personal gain."

An additional picketing protest was held later on Thursday at the Lincoln County Courthouse.