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Company to continue exploration at Sheep Creek

April 29, 2025 by Editor

by Michael Howell

The Bitterroot National Forest issued a press release on April 25, 2025 announcing that it had received a Notice of Intent (NOI) to conduct mineral exploration from U.S. Critical Materials within their registered lode claims in the Sheep Creek location on the West Fork Ranger District for the 2025 field season. This NOI does not differ significantly from any of the previous three NOIs issued for the 2022-2024 seasons. It applies to work in the historic Sheep Creek Columbite Deposit Mine Site located approximately 38 miles south of Darby in the headwaters of the West Fork of the Bitterroot River.

Proposed exploration activities include continued sampling using hand tools, soil and stream sediment sampling, rock chip sampling, mapping and sampling of adits, ground geophysical surveys, and helicopter or drone-supported geophysical surveys. It does not include the use of any mechanized equipment or drilling. Close out for the 2025 season is expected to be on or before October 26, 2025.

Submission of a NOI for a proposed mining operation is required in order to provide the Forest Service district ranger with sufficient information to determine if the level of proposed activity will require a plan of operations. If the Forest Service authorized officer determines NOI operations will likely cause or are causing significant resource disturbances, the operator must submit a proposed plan of operations for approval. Operations cannot continue until a plan of operations is approved. Submission of a plan of operations then triggers NEPA and other applicable requirements. West Fork District Ranger Dan Pliley has determined that the current NOI does not require a plan of operations at this time. 

This NOI, like the previous two, was preceded by public announcements made by U.S. Critical Materials that it was ready to start groundbreaking activities at its claims on Sheep Creek. In this case the company’s Director Harvey Kaye told Associated Press reporter Josh Funk that the company “plans to dig up several tons of ore in Montana this summer so it can test out processing methods it has been developing.”

In his article, Funk points out that the United States’ only operating Rare Earth Elements mine, the Mountain Pass mine in California’s Mojave Desert owned by MP Materials, can’t meet all of the U.S. demand for rare earths, which is why Trump is trying to clear the way for new mines.

Funk wrote that “MP Materials, which acquired the idle Mountain Pass site in 2017, said Thursday it would stop sending its ore to China for processing because of the export restrictions and 125% tariffs on U.S. imports China imposed. The company said it would continue processing nearly half of what it mines on site and store the rest while it works to expand its processing capability, and quotes MP Materials, ‘Selling our valuable critical minerals under 125% tariffs is neither commercially rational nor aligned with America’s national interests.’”

In his article Funk notes that two companies are trying to develop mines, Nio Corp in Nebraska and U.S. Critical Materials in Montana. 

“Officials at NioCorp and U.S. Critical Materials said they hoped the push from the White House would help them raise money and obtain the necessary approvals to start digging. NioCorp has worked for years to raise $1.1 billion to build a mine in southeast Nebraska,” according to the article. 

Funk notes that NioCorp recently signed a contract to do more exploratory drilling on its site this summer to help prove to the Export-Import Bank that enough rare earth minerals rest underground near Elk Creek, Nebraska, to justify an $800 million loan to help finance the project.

“But a new rare earths mine is years away from operating in the U.S. NioCorp estimates if all goes well with its fundraising, the site where it hopes to mine and process niobium, scandium, titanium and an assortment of rare earths possibly might be running by the end of Trump’s presidency,” wrote Funk.

He states that, “The Sheep Creek project isn’t as far along as the Nebraska project, but U.S. Critical Materials Director Harvey Kaye said the site has promising ore deposits with high concentrations of rare earths.” However, the company is still, apparently, not ready to break ground.

For more information on the Sheep Creek project, contact Dan Pliley, West Fork District Ranger, at (406) 821-3269.

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