Further complicating what has proved to be a lengthy permitting process at the New World project, nine conservation groups have filed alawsuit against Crown Butte Resources (TSE), alleging water quality violations.
Crown Butte, owner of the Montana property, is in the midst of seeking approval of an environmental impact statement, which would enable it to develop a 1,500-ton-per-day underground mine.
The company was served only recently with the lawsuit and President David Rovig would not comment except to say that Crown Butte believes it is in full compliance with the law.
Only last year, the company received an award from the U.S. Forest Service for “outstanding commitment to environmental protection.”
Crown Butte plans to use gravity-flotation processing to produce about 80,000 oz. gold per year from the project.
Reserves are estimated at 7.9 million tons in two deposits grading an average of 0.25 oz. gold and 1.04 oz. silver per ton plus 0.74% copper.
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