The Truth About Montanore

May 2, 2013

“When truth is replaced by silence, the silence is a lie.” 
― Yevgeny Yevtushenko

It is often far easier to say nothing than to tell a truth that some have no wish to hear. However, if you care about justice, if you want to do what's right rather than what is profitable, you cannot stay silent. The people of a tiny town in Northwest Montana see only the sparkle of the silver and the gleam of copper within the vast riches of a pristine environment. People around the world see an environmental disaster in the making. Blame the messenger, if you will, but that doesn't change anything.

 

US Fish and Wildlife Preparing to Abandon the Gray Wolf Species

April 29, 2013

Based on the dubious contention that a gray wolf population of some 6,000 creatures spread across the Northern Rockies and Great Lakes regions is sufficient to sustain this iconic North American species, the U.S. Fish and Wildlife Service has drafted a bill to remove wolves from the Endangered Species list. In states such as Montana, Idaho and Wyoming that have already repermitted the hunting and trapping of gray wolves, population tallies have been reduced by 7 percent within a single season. Since 1991, federal and state governments have spent nearly $120 million saving wolves from extinction. and many experts contend that delisting the species would again push the wolf population back to the brink. 

Read the full story in The Missoulian: Feds Draft Plan to End Protection of Wolves

 

Mining Corporation Would Change the Face of the Wilderness

April 24, 2013

With its beleaguered Montana Mine proposal, Spokane-based Mines Management Inc. seeks to  permanently change the landscape of the Kootenai National Forest and Cabinet Mountains Wilderness.

As outlined in the Supplemental Draft Environmental Impact Statement (SDEIS) of 2011, plans for the Libby area mine currently under review by federal and state agencies would not only consume and degrade natural water resources but would drive the wholesale destruction of wetlands and threatened species spawning, denning, and year-round habitats.

The SDEIS is blunt and to-the-point:  “All action alternatives would result in an irretrievable commitment of wetlands… and create changes in wetland functions and services.”  Wetlands are critical to northwest Montana ecosystems, filtering pollutants and sediments before they enter natural watersheds.  Wetlands comprise critical habitat for native aquatic, amphibian, bird, and mammal populations.  The Montanore SDEIS states that “biodiversity in wetlands may ultimately be lost…and be irreversible under all action alternatives.”

As a strategy for gaining EPA approval for its hard rock mining project, the Montanore Minerals Corporation proposes to replace those wetlands they would destroy with “wetland mitigation areas.”

The EPA has established a Wetlands Mitigation Rule that governs all forms of wetland replacement projects under the Clean Water Act.  According to this rule, those seeking a permit to impact a federal wetland must first avoid and minimize damages before resorting to compensatory measures.

This three-step approach results from EPA’s recognition that replacing one wetland with another down the road is not always successful.  Similarly, projects attempting to recreate natural wetlands by artificial means often fail. However, the Montanore SDEIS does not describe any efforts the mining corporation has made or intends to make to avoid or minimize its destruction of KNF wetlands.

The SDEIS does not explain how threatened species like grizzlies, Canada lynx and bull trout would relocate to these new digs as their established habitats fall under the blade of Montanore’s backhoe.

As in the case of wetland destruction, federal regulations require that before resorting to habitat land swaps, Montanore Minerals Corporation must explore options for avoiding or minimizing destruction of established habitats. A thorough consideration of other options -- relocating proposed milling operations to non-federal lands, or paying the price for reducing environmental destruction, for example --is mandated by federal law.  However, due perhaps to a capital crunch, MMC has not chosen to explore less invasive options.

The planned construction of a 16-mile long high-voltage transmission line corridor across the Miller Creek drainage, Howard Lake area, and Libby Creek drainage in the Kootenai National Forest to supply the mine with power would also seriously compromise area wildlife.  The SEDIS lists “loss of biodiversity” and “a change in species composition” as among the expected effects of this vital project component.

According to the document, not only would the underground installation of transmission lines along an already established transportation corridor reduce habitat destruction, involve less clearing, and involve fewer short- and long-term power interruptions, this option was “eliminated…because of the cost.”

Estimates from several sources for installing underground power lines place the cost at an average of 5 percent more than the cost of above-ground installation. Apparently, neither the federal agencies entrusted with protecting our national forests and threatened species, nor Montanore Minerals Corp., a self-proclaimed “environmentally responsible” business concern, places a very high premium on our nation’s irreplaceable natural resources.

 

Lincoln County Judge Affirms AMEX MGN Wrongdoing

STOCK PRICES PLUNGE

April 8, 2013

With the recent court decision in Lincoln County affirming prior claims on several of the property Glenn Dobbs and his employees cavalierly attempted to seize as their own, AMEX MGN is experiencing a steep slide into oblivion. Now in their 11th year of chasing paper tigers -- aka federal and state permits to access mineral reserves beneath the protected Cabinet Mountain Wilderness -- hedge fund manager Dobbs and his ragtag team are rapidly losing steam.

The market value of MGN is plunging to new lows on a daily basis, with a recent dip to a mere 80 cents per share setting a new standard for devaluation. Combined with a decline in silver values over the past year, the numbers add up to significant losses for stockholders.

If the sentiments expressed by many on financial message boards such as Yahoo are any indication, even the most dedicated investors are turning away from this pie-in-the-sky misadventure. Recent postings on finance.yahoo.com/mb/MGN include:

"OUCH !

all PMs stocks gettin' hammered --- with you know who plumbing new lows --- reality is never nice to fraud companies who haven't produced "jack" ---- like, forever --- good luck to the Dobbs family, but they don't need any ---- they already got away with more than they can carry ---- guess who is left holding the old maid ???"

"Claimjumper Hides, MGN Slides

I wonder if Dobbs' lawyers are advising him to keep quiet. Don't investors deserve better? MGN must know they are going to be investigated and sued. A lot of unflattering issues and accusations have been posted on this and some other boards for a year and a half. It appears as though most of them are true. Some people have exercised due diligence and provided for free the most factual description of this company you will find anywhere. None of the professional analysts got it right. Some who claim to be bullish on MGN have been attacking anyone and everyone who has tried to tell the truth. Now we know why. There is so much to hide."

To date,  both senior and junior Dobbs  have remained silent in the face of such criticism. However, MGN's annual SEC report, filed this month, provides a terse explanation of the court decision from the loser's perspective:

"In mid-March 2013 the Court issued an order (i) enforcing the settlement with seven of the ten defendants, (ii) enjoining us from trespassing on certain mining claims owned by one of the defendants, and (iii) finding that the mining claim of another defendant is valid and superior to certain of our claims. The claims with respect to which we were enjoined from trespass do not overlap the adit. The mining claim that the Court determined was valid and superior to certain of our claims overlaps portions of the adit and portions of certain of our patented claims and tunnel sites. Although we may appeal portions of this order when it becomes a final order, we do not believe that this order affects our ability to use the adit or to conduct exploration and development operations as currently planned once we have obtained the required permits."

According to the above, MGN still plans to trespass across claims already ruled out of bounds by the court. This unbelievable arrogance and lack of respect for others' rights is arguably AMEX MGN's biggest flaw, and if justice prevails, will prove to be a tragic one for offshore investor  cum CEO Dobbs and his merry men.

Read about LCV's Claim Jumping Case here.

SEC Complaint Slams AMEX MGN

Press Release, April 14, 2013                                                                                                                           

Frank Wall, Engineering Specialist for Libby Creek Ventures (LCV) announced today filing of a complaint with the U.S. Securities and Exchange Commission. The complaint involves a court decision of a lawsuit filed in Lincoln County 19th District Court in Montana, Case DV 07-248, that was filed September 26, 2007 involving the Montanore mining project.

MMI in (allegedly) attempting to steal LCV claims, opening the Libby Creek Adit and pumping water for no reason for 5 years, and then making false statements to authorities has cost Wall and associates estimated $60+ million since 2007.

A ruling was issued by Judge Wheelis against Plaintiffs, Mines Management, Inc. (MMI) on March 12, 2013 providing injunctive relief against MMI, et al. trespassing on LCV mineral mining claims (MMC), that LCV had senior claims and the $65 million - 14,400 foot Adit (tunnel) was in fact the property of LCV (developed in 1989-1991 by Noranda Minerals and Montana Reserves at a cost of ~$150 million). Noranda abandoned Montanore in 2002 and reverted the adit to LCV.

The confrontation between LCV and MMI started in 2005 when MMI over-staked LCV claims and sought U.S. Forest Service and Montana DEQ permits for mining without LCV permission.

The controversy surrounds MMI Chairman and CEO Glenn Dobbs, his CFO, and MMI attorneys, making false, defamatory and misleading statements to authorities against Wall, LCV and the other eight defendants in the lawsuit. In addition to the complaint filed with the SEC, Wall recently served the legal parties in DV 07-248 under cause # DV 10-81 that was filed with the Lincoln County Court on March 30, 2010.

WALL alleges MMI made False or misleading statements about a company (including false or misleading SEC reports and/or financial statements), and other fraudulent conduct. A person who is found to have knowingly and willfully submitted false, fictitious, and/or fraudulent statements to the SEC may be fined up to $10,000 and/or imprisoned up to five years. -- 18 USC 1001; 17 CFR 11.6(b).” 

Montana Reserves Co. (MRC) Frank Duval (& Harry Magnuson, deceased) filed a lawsuit against Plaintiffs in DV 07-248 and their predecessor Noranda Minerals Corporation shortly after the Montanore project was abandoned and reverted to LCV. This lawsuit was settled out of court weeks before MMI sued LCV, Wall and 8 others. MRC vs. MMI was “faithfully” reported in MMI SEC quarterly reports including settlement, but NOT the MMI cause/complaint against LCV (same period).

 

EPA Rates the Montanore Mine Proposal Environmentally Objectionable

Written responses from the Environmental Protection Agency and the U.S. Fish and Wildlife Service (FWS) to the latest Supplemental Environmental Impact Statement (SDEIS) on the Montanore mine proposal suggest that the project cannot be permitted as currently proposed.

Montanore Minerals Corporation in Lincoln County has been awaiting governmental approval to begin preliminary assessment of its silver and copper deposit within the Kootenai National Forest (KNF) and Cabinet Mountains Wilderness (CMW) since 2003. 

The EPA recently rated the SDEIS as “EO-2,” meaning the Agency has environmental objections to the proposal, and the document provides insufficient information for EPA to fully assess environmental impacts to aquatic life, natural water resources, wetlands, and stream flow.

In December 20, 2011 letters to Paul Bradford of KNF and Richard Opper of Montana DEQ, who are heading the permitting process on the local and state levels, Carol L. Campbell of EPA’s regional office highlights significant problems with the Montanore SDEIS:

We are concerned about predicted alteration of water quality and its consequent impacts on aquatic life and wetlands. The SDEIS also projects adverse impacts to surface water quality and groundwater quality about which we are concerned.

EPA calls for more information on expected groundwater drawdown due to Montanore’ s super-consumption of area water resources, in particular regarding the seasonal draining of Rock Lake in the CMW.  Campbell writes that while “it is likely that [aquatic] habitat will be at least seasonally lost,” the document “does not identify potential mitigation for these impacts.”

Stewart calls the East Fork Bull River “the single-most important bull trout spawning and rearing stream in the Lower Clark Fork bull trout core area,” and says that Montanore’s currently proposed dewatering activities are not acceptable.

Campbell also questions the plan’s proposed flow reductions in surface water that are “inconsistent with the State of Montana’s Water Quality Act nondegradation provisions,” and the pollution projections for pristine area streams that include toxic levels of manganese, antimony, nitrate, metals and dissolved solids.  The SDEIS does not detail any proposed mitigation measures for this pollution.

EPA’s Executive Order requires that any plan to degrade and destroy federal wetlands must first explore ways to avoid or minimize the destruction before resorting to land mitigation to replace such areas. The SDEIS does not comply, as Campbell and EPA comment:

The EPA does not agree that all measures have been incorporated … that would reduce the direct and indirect impacts to wetlands.

If the Montanore proposal is to meet federal regulations, it must seriously consider plans to avoid or reduce impacts on KNF wetlands.

In written comments responding to the SDEIS, Regional Environmental Officer Robert F. Stewart of U.S. Fish and Wildlife Services focuses on the impacts of the Montanore proposal on “Endangered Species Act (ESA) listed species, including grizzly bears, Canada lynx, and bull trout.”

FWS believes the SDEIS inadequately addresses the effects of the Montanore proposal on threatened bull trout that spawn in the affected Bull River. Stewart calls the East Fork Bull River “the single-most important bull trout spawning and rearing stream in the Lower Clark Fork bull trout core area,” and says that Montanore’s currently proposed dewatering activities are not acceptable.

Read the rest of the story.