Junior disputes Stillwater’s East Boulder access

Idaho Consolidated Metals (IDO-V) insists that claims on a lower-grade platinum-palladium reef supersede access by Stillwater Mining (SWC-X) to its East Boulder project, 13 miles west of that company’s namesake mine in southwestern Montana.

The junior has staked 214 claims, covering 3,725 acres, along the Picket Pin zone, a 12-mile-long structure of lower-grade platinum and palladium running parallel to the 28-mile JM reef.

This claim block intersects Stillwater’s access to East Boulder, where it is driving two 18,000-ft. drifts into the Stillwater Complex, an ultramafic intrusive body hosting the JM reef. The tunnels pass the Picket Pin zone, 9,800 ft. stratigraphically above the JM reef, midway from the portals to the JM reef. To date, the first tunnel is 70% complete, whereas the second, nearly half-finished, should cross Picket Pin soon.

Idaho Consolidated became aware of a potential title discrepency over a portion of the Picket Pin zone after reviewing information filed by Stillwater for its current expansion. The junior staked the ground only after further research by an independent land consultant, and review by the company’s legal counsel.

Idaho Consolidated believes its claims, which cover 3,000 ft. of strike along Picket Pin and 2,800 ft. of the East Boulder development adits, are valid and superior to any claim by Stillwater in the area.

The junior has begun field work on the property in preparation for drilling. It has also entered discussions with Stillwater regarding the issue, though Stillwater, for its part, maintains that its access rights are valid and have priority over any claims by Idaho Consolidated. Stillwater is spending US$270 million to construct the fully permited East Boulder project as a stand-alone operation, which is projected to double the company’s metal output on the JM reef. The company expects to produce as much as 525,000 oz. platinum and palladium in 1999.

Stillwater released claims over Picket Pin in 1993, after extensive exploration determined that the zone was not economically viable.

Idaho Consolidated’s preliminary assays on Picket Pin run between 0.15 and 0.26 oz. per ton combined platinum-palladium, compared with the reserve grade on the JM reef of about 0.71 oz. combined metal per ton.

In other news, Stillwater has resolved outstanding litigation concerning expansion at the Stillwater mine. Three environmental groups agreed to withdraw a lawsuit against the Montana Department of Environmental Quality over expansion of the tailing dam. The agreement calls for the company and the groups to form a committee to address issues of water quality and reclamation.