Permits in place for Montanore

Permits have been completed for development of the Montanore copper-silver deposit in northwestern Montana.

Giant Bay Resources (TSE) and private company Montana Reserves, along with joint-venture partner Noranda Minerals, applied for 16 permits to 23 federal and state agencies at a cost of US$10 million.

Exploration and development costs to date are estimated at US$150 million. Reserves have been upgraded to 145.7 million tons at 1.92 oz. silver per ton and 0.78% copper. The previous estimate was 142.1 million tons at 2.1 oz. silver and 0.78% copper. Operating costs are estimated at US$10.72 per ton. Giant Bay (which is merging with Montana Reserves) hopes to raise an additional US$27 million, possibly through an equity issue, to bring the deposit into production. To do so, the company will convert its 5% net proceeds royalty to a 45% participating interest, leaving Noranda with a 55% interest.