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Fri July 6, 2012
Back Forty mine project on hold
MENOMINEE COUNTY, MI-- The leading partner in a planned zinc and gold mine in Menominee County said Tuesday it's putting the project on hold and has no plans to continue investing toward its development.
Toronto-based Hudbay Minerals Inc. said it is suspending work on the Back Forty Project, a venture targeting a sulfide ore deposit near the Menominee River. Hudbay owns 51 percent of the venture, while Aquila Resources Inc. has a 49 percent stake.
The company's decision was based on capital commitments at three other projects—two in Canada, one in Peru—with the potential to produce stronger returns, said John Vincic, vice president for investor relations and corporate communications.
Aquila President Tom Quigley said he still expects the mine to be built at some point. Planners say the open-pit operation would yield gold, zinc, silver and copper.
Environmental activists and some property owners in the Menominee area are fighting the Back Forty project, contending it would pollute nearby waters. Company officials say they have conducted tests and studies to meet state standards.