Mt. Emmons Moly Co. gets permit to drill

“We are kind of getting the one guy, mule and pick kind of scrutiny”

Mt. Emmons Moly Company (MEMCO) is one step closer to ramping up exploratory mining activities and building a series of drifts, after the company was issued a prospecting permit from the state of Colorado. The state’s Division of Reclamation, Mining and Safety (DRMS) has been considering this permit for nearly 12 months, and on Monday it issued a Notice of Intent (NOI) to Conduct Prospecting, which is the permit at the state level.

A drift is essentially a tunnel that follows an ore vein, thus “drifting” with the deposit. According to Mt. Emmons Project communications director Perry Anderson, the company has modified the drift plan for the last year to address some open-ended issues, and that led to the permit being issued for the drift modification. “We’ve continued to make modifications to the plan since last January. For our company this is one step in the process,” said Anderson.
The town of Crested Butte has raised concerns about another step in the process, which is determining whether the mine’s activities will require a permit per the town’s watershed ordinance.
MEMCO vice president and general manger Larry Clark sent a letter this past August to town manager Susan Parker stating that the Thompson Creek subsidiary, along with U.S. Energy (USE), the primary owner of the mine, had the intention to “work with you and the Town to make sure that you have the information you need regarding the Project, including information regarding Project development and status, and the currently proposed baseline studies.”
The letter goes on to state, “We believe that devoting considerable resources to decide whether the watershed ordinance applies now at this phase of the Project would not be beneficial for any of the parties involved.” Instead, the company suggested putting in place a communication plan.
That plan was outlined in a draft Memorandum of Understanding (MOU) and calls for regular meetings between the mining company and town officials. Town attorney John Belkin concluded last month, “The proposed MOU document is not something the town would, could or will sign,” said Belkin. “Basically, MEMCO is asking the town to not follow its own laws. The mining company says it wants to be a good neighbor and work with the town. If that’s truly the case, then it should abide by the town’s laws, not try to skirt them.”
The town of Crested Butte is responding to this week’s permit issuance with a letter drawn up by Belkin, dated November 16, which reminds the DRMS that the property within the permit is in the town’s watershed, and may well require a watershed permit per town ordinance.
In addition, the letter states, “It is from this watershed that the Town draws its potable water. On account of this fact, as well as numerous other considerations, the Town has significant concern over the impacts that USE’s [U.S. Energy’s] activities could have on the Town’s water; principally, hydrology, supply, and quality. Further, USE may be required to obtain a permit, depending upon certain factors.”
The letter continues, “As recently as November 2, 2010, this Firm expressed on behalf of the Town the need for MEMCO to participate in a pre-application conference in order that the Town may begin the process of determining whether MEMCO’s proposed activities under the NOI qualify as an ‘Activity’ as defined under the Ordinance, and thus requiring that MEMCO apply for a permit. To date, the Town has not received a response to this correspondence and, accordingly, the Town’s process of determining whether, and if so how, the Ordinance applies to MEMCO’s proposed activities under the NOI has not commenced.”
According to Anderson, “We haven’t received any correspondence from the town since last January. Nothing has changed at this point. MEMCO has not made any decision to move forward. The next step is to determine exactly what our plans are, what’s needed, and where. We have not completed the engineering. We would need more specifics to have a profitable discussion with them, and we have yet to determine any specifics. We are interested in talking with them when we can have a conversation that’s mutually beneficial.”
The state originally permitted the drift in 2007, and the High Country Citizens’ Alliance litigation on that original approval is still pending. “This new drift modification is slightly different, but it’s basically the same thing, which is getting inside the mountain to do additional drilling to define the ore body,” explained HCCA executive director Dan Morse.
 “The drift is essentially an attempt to start a mine,” he continued. “We think that is worthy of more scrutiny and should be considered a mining permit, and not just a prospecting operation. We like to say mining is machines and explosives and continuous operations. Prospecting is supposed to be one guy, a mule and a pick. We are kind of getting the one guy, mule and pick kind of scrutiny.”
At this stage, the town is uncertain of what the DRMS decision means as far as requiring MEMCO to abide by Crested Butte’s watershed ordinance. The letter states, “The Town is aware of and appreciates DRMS’ repeated reminders to USE that MEMCO, in conducting its activities under the NOI, must comply with all local, state and federal laws. At this juncture though, the Town is uncertain whether or not this mandate by DRMS means that DRMS will not allow the proposed activities to commence prior to MEMCO obtaining all other required permits and approvals; namely, a permit from the Town, if warranted.”
As for HCCA’s next step, “We are considering an appeal of this decision. There’s a five-day window in which appeals can be filed, and we will decide by Friday,” said Morse. “They have gotten one permit from one entity; they do not have a green light to begin work and it would be irresponsible of them to do so, even given that one permit. I think the fact that there are real risks to the community is the paramount fact, and we will be working to prevent those impacts and prevent a false start on the mine that is unwarranted.”