Montana approves Waseka gold operation

With Montana state regulatory approval in hand, Calgary-based Profile Resources (PFL-V) is ready to begin test milling at its Waseka operation in Madison Cty., Montana.

The State’s Department of Environmental Quality issued an opinion that the company’s Waseka mill, about 30 miles south of Butte, enjoys a Small Miner’s exclusion under the State’s environmental-protection legislation, which has maintained a blanket ban on gold milling using cyanidation since 1998, when a citizen ballot initiative to prohibit cyanide milling circuits in both new and expanded gold operations. Canyon Resources (CAU-X) lost a series of court challenges to the law, which had stalled development of its Seven-Up Pete property near Lincoln.

Profile’s Waseka mill, which can process about 200 tons of ore per day, will get feed from the surrounding property plus two other properties. It has gravity, flotation, and cyanidation circuits. The company hopes to conclude custom-milling agreements or other deals with a number of surrounding property holders.