Noranda rides out of Montana

Faced with slumping metal prices, Noranda (NRD-T) has decided to cut bait at the Montanore copper-silver project in northwestern Montana.

An updated feasibility analysis of the project, based on current and foreseeable metal prices, deemed the project uneconomic.

Noranda says the move will have no financial impact, as provisions for the project were taken in prior years. Work on the project began in 1989, but was suspended by November 1991.

Blasting at the project was releasing nitrates into the Libby Creek in violation of state water laws. As part of a feasibility study, Noranda had planned to drive a 16,000-ft.-long decline to facilitate further infill and exploration from underground. The company got as far as 14,000 ft. before encountering the nitrate problems. The project got stuck in permitting limbo and work never resumed.

Most of the reclamation work at Montanore was completed in 1995, including the removal of all buildings and related infrastructures, securing the underground opening and re-vegetating the project site.

Originally, a 17,500-ton-per-day underground mine at the project was tabbed with price tag of about US$250 million and was to employ up to 400 people. Noranda sunk more than US$100 million into the project before the plan was mothballed.

At the end of 2000, the project’s total indicated resources stood at 112.5 million tonnes averaging 0.77% copper and 73 grams silver per tonne. Inferred resources were pegged at 16.4 million tonnes running 0.82% copper and 67 grams silver.