Montana Approves Pegasus Project

Spokane-based Pegasus Gold Inc. received the final go-ahead from Montana Department of Environmental Quality officials to build its Zortman Extension project.

Montana’s DEQ gave its record of decision approving the project late Friday, according to Pegasus.

The project in north-central Montana contains an estimated 1.4 million ounces of gold. The project could produce well over 100,000 ounces of gold for the company each year.

Pegasus recently settled lawsuits against federal and state environmental officials and several Indian tribes near the mine complex over alleged water quality violations. Pegasus paid fines and set up trusts to pay for environmental projects on the reservation land where the mines drain.

The project took more than five years to permit, and will cost the company about $50 million to construct. A new heap leach facility will process the gold from the rock and will treat the water coming from the mine. Part of the lawsuit settlement called for long-term treatment of water coming from the mine.

Pegasus’ stock closed down 25 cents Monday at $10.33 a share.

, DataTimes