DEQ Approves Assignment Change of Majesty Mining, Inc. to Bear Claw Mining Services, LLC
HELENA—The Department of Environmental Quality (DEQ) has approved a hard rock mining operating permit assignment for the Revenue Mine. The assignment transfers the operating permit from Majesty Mining, Inc. (Majesty) to Bear Claw Mining Services, LLC (Bear Claw). The assignment will allow Bear Claw to take over the approved operating plan and reclamation plan for the Revenue Mine, a gold and silver mine located approximately 4.5 miles southwest of Norris in Madison County, Montana.
The Revenue Mine first began operating under a Small Miner Exclusion Statement (SMES) in 1993 and has been permitted since final approval of the hard rock mining operating permit in 1998. An Environmental Assessment was prepared at the time and no new analysis is triggered by the assignment of a new operator. The operating permit for the Revenue Mine pre-dates the November 3, 1998, statutory ban on new cyanide open-pit mining in Montana. When it was incorporated into the Metal Mine Reclamation Act, the ban included a “grandfathering” clause for mines operating at the time of its passage (see 82-4-390, Montana Code Annotated). As a result, DEQ has determined the operating permit for the Revenue Mine legally allows the use of cyanide at this mine. Assignment of the permit to a new operator does not affect the grandfathering of this operating permit from the cyanide open-pit mining ban.
“Montanans may be understandably concerned about the grandfathering of this cyanide-based mine site,” said DEQ Director Sonja Nowakowski. “I want to assure Montanans that DEQ takes our responsibilities seriously and will ensure the mine is operated in a way that safeguards our invaluable environmental resources.”
According to Bear Claw, heap leaching will be performed using a low concentration of cyanide water solution that will be mixed on site. Leaching will take place for a limited duration and the cyanide solution will be neutralized unless active leaching is in process. Chemical leaching is a process used in the mining industry to extract precious metals from ore. According to the U.S. Environmental Protection Agency, cyanide is sometimes used as the processing agent and does not persist in the environment.
The permit transfer process is governed by Montana law. Provided that both operators comply with the provisions of the Metal Mine Reclamation Act and Bear Claw assumes the duty of Majesty to complete reclamation of the land, DEQ will transfer the permit to Bear Claw upon approval of Bear Claw’s bond. DEQ accepted Bear Claw’s bond on June 18, 2024, and finalized the operating permit assignment change on July 3, 2024. The current bond amount reflects the total required for reclamation of existing disturbance at the site. Prior to resuming any leaching operations, additional bond for leach pad neutralization will need to be posted.
The approved operating permit encompasses approximately 129 acres and includes a 2-acre open pit where gold bearing ore will be mined and an approximate 2-acre heap leach pad for the extraction of metals from that ore. The operating permit requires double liners and regular monitoring of the leak detection system in the processing areas as well as annual water quality monitoring. Proposed mining activities, including use of cyanide for heap leaching, must comply with the Metal Mine Reclamation Act.
“DEQ will continue to regularly inspect the Revenue Mine to ensure that the operator complies with its approved operating permit and with the Metal Mine Reclamation Act,” said Dan Walsh, administrator of DEQ’s Air, Energy, and Mining Division. “With the presence and use of cyanide on site, Mining Bureau staff from DEQ will inspect the site at least 3 times per year and reserve the right to conduct additional inspections as we deem necessary.”
The once active gold and silver mine has not extracted or leached significant quantities of ore since 1999. The mine site has been partially reclaimed with activities including mine pit and waste rock pile recontouring, salvaged topsoil placement, and establishment of vegetation. According to Bear Claw, mining operations, including use of cyanide at the site, may begin later this year.
Tags: Press Release and Hard Rock