Mining projects pick up steam in Wisconsin

Aug. 10, 2011 |(56) Comments

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Wisconsin Department of Natural Resources

Both of these photos show the Flambeau Mining Co. ore mine, which closed in 1997. The bottom photo shows the mine while it was in operation, between 1993 and 1997. The top photo shows the site in 2006. The area was reclaimed in 1999.

Spring Green - The proposed Gogebic mine near Hurley has attracted the lion's share of attention on mining matters in Wisconsin this year, but other projects are also picking up momentum.

Three other mining ventures in Marathon, Taylor and Oneida counties are getting attention, according to the Department of Natural Resources.

A fourth - a gold and zinc mine in an advanced stage of exploration - is in Michigan's Upper Peninsula. The deposits are located on the banks of the Menominee River, which separates the two states.

Rising metal prices are driving a revived interest in mining exploration, Ann Coakley, director of the DNR's Bureau of Waste and Materials Management, told members of the Natural Resources Board on Wednesday.

"It's basically driven by rising prices, especially for gold," Coakley said.

Metallic mining has seen little activity in Wisconsin after the Flambeau Mining Co. ore mine closed in 1997 after four years of operation. The site was reclaimed 1999.

The latest flurry of interest has revolved around the Gogebic mine, which is owned by the Cline Group, a Florida-based company with coal interests in Illinois and parts of Appalachia.

The company has an option for mineral rights on 22,000 acres covering 22 miles in the Gogebic range, also known as the Penokee range, which runs through a portion of northern Wisconsin and Michigan.

Gogebic officials have put the project on hold until lawmakers in Madison advance new legislation that will make it easier to operate mines in Wisconsin. The Legislature could take up such legislation in the fall.

But a mining bill is also likely to come under fire from environmentalists who criticized an earlier version because it removed some state and citizen input for future projects.

As for other possible mine projects, Coakley said that none of the companies involved has formally applied for a mining permit from the DNR - a process that will take years to complete.

Here is rundown of other metallic mining projects in Wisconsin:

Marathon County. A German-based company, Aquila Resources Inc., began exploratory drilling on June 15 for gold on a 600-site known as the "Reef Gold Project." According to a company statement on Monday, exploratory holes could be drilled as deep as 1,400 feet.

The area near Wausau in the Town of Easton has long been scrutinized for its gold potential. Mining began in the 1920s, with additional exploratory drilling in 1967 and 1987, Coakley said.

Gold deposits were discovered in the 1970s by Noranda Exploration. The company's test drilling found 454,600 tons of potential deposits. Of that, gold has been estimated at 10.6 grams for every ton of deposits, according to Aquila.

If developed, the project is likely to be mined from the surface. In a statement to investors last week, the company said test results have been encouraging.

Menominee County, Mich. The proposed mine, known as the "Back Forty Project," is the furthest along of any mining project and will affect Wisconsin because the Menominee River is a shared water resource. The project is also being developed by Aquila.

Test drilling has revealed the presence of gold, silver, zinc, lead and copper. In a statement by the company in October 2010, Aquila estimated that the site could produce at least 902,000 ounces of gold, 11.39 million ounces of silver and 961 million pounds of zinc, in addition to the other minerals.

Aquila is expected to submit a request for a mining permit to Michigan officials next year. Coakley said the Wisconsin DNR will collaborate with Michigan officials because the two states share management of the Menominee River.

Taylor County. Known as the "Bend Project," the site is in the Chequamegon-Nicolet National Forest. Aquila is interested in developing this site. Exploratory mining could begin this winter, Coakley said. Aquila also is in discussions with the federal Bureau of Land Management to obtain a permit to conduct exploratory drilling

Minerals in the national forest were first discovered in 1986. According to Coakley, copper and significant amounts of gold, and smaller amounts of silver and zinc are present.

Oneida County. Tamerlane Ventures Inc. of Blaine, Wash., has asked county officials for permission to conduct exploratory digging on county forest land for zinc, gold and silver. Tamerlane said it will initially evaluate the feasibility of an underground mine on the site. Also known as the "Lynne deposit," it was previously prospected by Noranda. It is 25 miles west of Rhinelander

Also, as expected, the Natural Resources Board on Wednesday approved a major land transaction involving more than 18,000 acres of northern forests near the Chippewa Flowage.

The deal approved, 7-0, is the second phase of a plan that will connect land in the Chequamegon-Nicolet National Forest and tribal lands held by the Lac Courte Oreilles band of Lake Superior Chippewa. It also will link to state-owned land on the flowage.

Last fall, the DNR purchased an easement of more than 8,000 acres for $3.7 million. The second phase, approved on Wednesday, is an easement of 10,083 acres at a cost of $4.5 million. Federal funds paid for about half of the project.

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