U.S. gov’t stalls Zortman project

The Board of Land Appeal for the U.S. Interior Department has granted a stay of the record of decision regarding the Zortman Extension project in Montana, thwarting attempts by Pegasus Gold (PGU-X) to develop the project.

In October, the Bureau of Land Management and the Montana Department of Environmental Quality issued their record of decision in favor of the project. However, the decision was subsequently appealed by local tribal groups and the National Wildlife Foundation. The board granted the stay of the record of decision pending review and a decision on the appeals.

John Pearson, spokesman for Pegasus, says he believes the decision is without precedent and that it ignors more than five years of studies and work.

The company had already decided to delay construction at Zortman until the spring of 1998. But if the stay remains in effect for a long time, construction of the project could be delayed past that year.