Back Forty Mine Update: Some Welcomed Twists
The Back Forty Mine, a proposed mining project near Stephenson, Michigan, has a tumultuous 20 year history, fraught with environmental concerns, regulatory challenges, and shifting ownership. Initially proposed by Aquila Resources of Toronto in 2004, the project aims to extract gold, zinc, and other minerals from sulfide deposits in the Menominee River watershed with a 750-foot deep open pit mine less than 200 feet from the river bank.
From its inception, the Back Forty Mine has faced staunch opposition from the Menominee Indian Tribe of Wisconsin, several environmental groups, and many local residents due to its potential impacts on water quality, habitat destruction, and the Menominee’s cultural heritage sites. Concerns regarding toxic, sulfuric acid mine drainage contaminating of the Menomonee River, the bay of Green Bay, and the Great Lakes beyond, have raised significant alarm.
In 2021, after years of battles over mining permits and questionable environmental data collection, Aquila Resources and its Back Forty Mine project was sold to Gold Resource Corporation (GORO) of Colorado. GORO’s interest in the Back Forty project stemmed from its desire to establish a second source of income, supplementing its existing mining operations, notably the Don David Mine in Oaxaca, Mexico.
Looking for expansion and revenue diversification, GORO saw the Back Forty project as an opportunity to bolster its revenue streams. The acquisition aimed to leverage the untapped potential of the Back Forty project to enhance GORO’s financial position and operational footprint. However, by 2023, GORO faced unforeseen challenges. A decline in the market value of GORO’s shares led to a significant erosion of equity causing the corporation to suspend their dividend program to their shareholders.
Decline of GORO shares
Source: seekingalpha.com
This downturn prompted GORO to reassess its strategy and allocate resources accordingly. Consequently, in 2024, GORO made the decision to prioritize the Don David Mine’s status over the proposed development of the Back Forty Mine project. They simply did not have the resources to afford funding both mines at the same time.
So, at least for the time being, this is great news for the Menominee Indian Tribe, the environmental groups, and the local residents in opposition to the proposed Back Forty mining site. This strategic decision will delay GORO from proceeding towards the completion of the Michigan permitting process required to open the mine.
Lastly, in June 2023, the Menominee Indian Tribe of Wisconsin announced that its sacred ancestral burial sites, within the area known to the tribe as the Anaem Omot, has been added to the National Park Service’s National Register of Historic Places. Anaem Omot is located along the Menomonee River and within the proposed mine site. This development will further impede mining operations because now any groups proposing large developments within the Anaem Omot historical area must first consult with the Menominee Indian Tribe. This is good news!
By Paul Leline, Teasurer, DCEC
Sources:
backFortyfilm.com
seekingalpha.com
goldresourcecorp.com
Join and support:
The Coalition to SAVE the Menominee River
https://jointherivercoalition.org
