Authorization To Construct Underground Gold Mine

COEUR D'ALENE, ID - Timberline Resources Corporation reported that the Montana Department of Environmental Quality (MDEQ) has authorized Butte Highlands Joint Venture (BHJV) to construct and operate its proposed underground gold mine south of Butte, Montana by publishing its Record of Decision (ROD) on the Final Environmental Impact Statement (EIS) for the project. The MDEQ, which was tasked with evaluating and selecting a plan for operating the mine, has selected the Agency Mitigated Alternative authorizing BHJV to construct and operate the proposed mine with certain modifications to some aspects of BHJV's proposed plan.

In announcing its decision in the ROD, the MDEQ noted, "The DEQ has selected the Agency Mitigated Alternative, authorizing BHJV to construct and operate the proposed underground gold mine. A detailed description of the Agency Mitigated Alternative is set forth on pages 51 through 62 of the Final EIS. This alternative meets the purpose and need for the proposal and complies with the substantive requirements of the Metal Mine Reclamation Act, the Montana Air or Water Quality acts, and the Montana Public Water Supply Act. The Agency Mitigated Alternative includes reasonable mitigation measures addressing compliance issues associated with protecting water resources as required by Section 82-4-336(10), MCA. While some of these mitigation measures were not included in the Draft Permit, they were developed in consultation with BHJV and are included in the Final Permit with the consent of BHJV."

The MDEQ added, "The Agency Mitigated Alternative includes modifications to some aspects of the Proposed Action. Under the Agency Mitigated Alternative, DEQ would require additional water quality monitoring, mitigations for reductions in flows during groundwater recharge after mining ceases, and flow augmentation in Fish Creek."

Timberline owns a 50-percent carried-to-production interest in BHJV, which owns the Butte Highlands Gold Project where mining is expected to commence following the issuance of the final hard rock operating permit (Final HROP) and the U.S. Forest Service (USFS) approval of a road-use plan of operations for material haulage. Timberline's joint venture partner is funding all mine development costs through to commercial production with Timberline's share of those costs to be repaid from proceeds of future mine production.

Kiran Patankar, Timberline's President and CEO, commented, "It is gratifying for the BHJV team to have achieved this key permitting milestone after a very lengthy process since submitting the Draft EIS for the project. We are pleased with the consultation between the MDEQ and BHJV, with critical input from Montana Fish, Wildlife, and Parks, and Butte-Silver Bow. This cooperation has led to a sensible 'win-win' mitigation plan for the project, which provides for restoration of the site to pre-historic mining conditions in order to improve fisheries and provide significant economic benefits to the community. We now look forward to the USFS completing the road permit and ongoing cooperation with the regulatory agencies and the city and county of Butte-Silver Bow."