In October, the Salt Lake Tribune reported that the tailings dam could fail in a major earthquake and move across State Road 201 – like a “violent and intense” flash flood - reaching more than twice the distance Kennecott predicted.

“Really, the public-safety concern is the highway,” said Troy Meyer, lead engineer for Colorado-based Tetra Tech, the engineering firm conducting the safety evaluation.

According to Tetra Tech, Kennecott’s tailings impoundment is still far from meeting Utah’s minimum safety standards and the company’s goal of meeting those requirements in 2018 is likely optimistic.

In March 2008, the Salt Lake Tribune reported that Kennecott Utah Copper had concealed, since 1988, the potential for a major earthquake-caused tailings disaster in Magna.  In 1992, the company conducted a “risk assessment” to determine if full containment of the impoundment would be more expensive than legal costs associated with property damage and citizen deaths. 

The Tribune published a 1997 confidential memo, written by Ray D. Gardner, former Chief Legal Officer for Kennecott, that is highly critical of the company’s handling of the potential tailings disaster:  “Prior management’s decisions to disregard and conceal legal advice, forego public notice, attempt to establish a residential buffer surreptitiously, collude with the State Engineer to withhold the KL studies from the public, and restrict the distribution of the Reduction Study, collectively and individually, give the appearance of a conspiracy to cover-up a profound threat to public safety.”

During the cover-up, G. Frank Joklik was Kennecott’s president and CEO (1980 to 1993).  Joklik, now a mining consultant, is currently on the board of directors for Prime Meridian Resources (PMR), a mining firm seeking to develop several metallic mineral deposits in the western Upper Peninsula of Michigan.

To read more about what Joklik and Kennecott did to cover up the tailings dam threat, go to the Lake Superior Mining News‘ coverage of the scandal:  Kennecott Hides Potential for Deadly Tailings Disaster

On February 22, 2007, Mersington Capital, Inc., acquired all issued and outstanding shares of Prime Meridian Resources, Ltd., the Canadian mining exploration company.[1] At the time of acquisition, 89% of the company’s shares were owned by Alberta-based Primrose Drilling Ventures, Ltd., with 11% belonging to Michael Senn, of Wisconsin, now the company’s president, CEO and director.[2] The merger formed one company, called Prime Meridian Resources Corp. (PMR), now located in Calgary.

A licensed professional geologist, Senn worked for Kennecott Exploration Co. from 1980 to 1996. Senn was Regional Manager/Chief Geologist when Kennecott discovered the Eagle deposit in 1995.[3]

Kennecott is also represented on PMR’s board of directors by Mr. G. Frank Joklik, a mining consultant. Joklik started his mining career, in 1954, with Kennecott Copper Corp. before working for American Metal Climax Company. In 1974, Joklik rejoined Kennecott and became President and CEO in 1980, diversifying the company into precious metals, diamonds and coal. Joklik retired from Kennecott in 1993.[4]

Mark Fields, PMR director was formerly Vice-President at Copper Ridge Explorations, Inc. (CRE). As the projects financier, Kennecott/Rio Tinto has a 75% interest in CRE’s Lucky Joe copper-gold project, in the northern Yukon. In the 1970s, Rio Tinto performed geological, geochemical and ground geophysical surveys, including 2,437 meters of drilling in 15 holes. The project resumed in 2001. In 2002-03, Kennecott and CRE conducted a geological mapping, soil sampling and geophysical survey program Kennecott carried out a drilling program in 2005.[5]

PMR director, William Anderson, is currently President, CEO and a director with First Nickel, Inc., which has a strategic alliance with Falconbridge/Xstrata in Canada’s Abitibi mining belt. Falconbridge is one of two major nickel smelting companies in the Sudbury region, along with Inco. The smelters are important as Kennecott plans to transport ore from its Eagle Project to Sudbury, although the company has not noted which smelting facility it would utilize. Anderson has further connections with Kennecott/Rio Tinto through his work as Exploration Manager with BP Canada.[6]

PMR’s wholly-owned subsidiary, Nevada-based Prime Meridian Resources, Inc. (PMRI) has acquired a 100% interest in over 31,000 “mineral acres” (surface and/or mineral estates) in Baraga, Dickinson, Gogebic, Iron and Marquette counties, as well as in Fillmore and Koochiching counties, Minnesota.

On March 2, 2007, PMR announced commencement of its “2007 magmatic nickel-copper massive sulfide and Iron Oxide Copper Gold (IOCG) exploration programs” with initial drilling in the Baraga Basin (10,292 mineral acres) and Kiernan Sills, near Crystal Falls (4,503 mineral acres), project areas. The news release noted that PMR “has been encouraged by the recent success of Kennecott/Rio Tinto’s….Eagle Deposit….Four of the six Baraga Basin targets are within [1/2 mile] of the Eagle Deposit.”[7]

A 2002 joint venture agreement (JVA) with BHP-Billiton Minerals Exploration, Inc. (BHP), included the Baraga Basin, Kiernan Sill and Banston (near Republic) project areas. BHP terminated the JVA, in 2005, forgoing a 65% interest in the project areas.[8]

In addition to the Baraga and Kiernan projects, PMR will be conducting airborne surveys over nickel-copper projects at Wolf Mountain/Wakefield Sill, near Ironwood (6,159 mineral acres) part of which is located in the Ottawa National Forest, Norway Lake/South Branch Sill, near Channing (4,579 mineral acres) as well as the Winterfire Intrusive, in Koochiching County, Minnesota. PM will also conduct ground geophysical surveys in the Wilson Creek IOCG project area once the company constructs roads to access the site.[9] PM’s other project areas include Peterson Sill, in Fillmore County, Minnesota.

A technical report, commissioned from DeMatties, Munroe & Rowell (a Geological – Geophysical Consultant, located in Cambridge, Minnesota)[10], noted that much of PMR’s mineral leases in its Upper Peninsula projects were acquired from Cleveland-Cliffs International (CCI). However, “Michigan state leases control a majority of mineral lands in many of the project areas. These state lands were previously nominated by and awarded to PMR as early as 2001 on a noncompetitive basis.”[11]

The report notes that “the current political environment concerning environmentally responsible metallic mining is considered favorable in the states of Minnesota and Michigan, particularly the Upper Peninsula (UP).” The report concluded that “all of PMR’s project areas [are] legitimate targets and worthy of further exploration.”[12]

PMR’s corporate information, including news releases can be tracked through the Toronto Stock Exchange under stock symbol, “PMR.”

1 CCNMatthews.com “Prime Meridian Resources Corp. (Formerly Mersington Capital Inc.) Announces Completion of Qualifying Transaction and Maximum Private Placement,” February 23, 2007

2 CCNMatthews.com “Mersington Capital Announces Proposed Qualifying Transaction With Prime Meridian Resources Ltd.,” November 16, 2006

3 Ibid & Supra, 1

4 Supra, 1 & 2

5 Supra, 1 & 2

6 Supra, 1 & 2

7 CCNMatthews.com “Prime Meridian Announces Launch of 2007 Field Program,” March 2, 2007

8 Supra, 2

9 Supra, 4

10 The technical report, posted on SEDAR (February 9, 2007) can be viewed here

11 Ibid

12 Supra, 10