Discovery of the McDonald Gold Deposit

The McDonald gold deposit is located in the upper Blackfoot Valley in Lewis and Clark County in west-central Montana, about 65 km (40 miles) northwest of Helena and 13 km (8 miles) east of Lincoln (Fig. 1). The McDonald project area covers about 20.7 km2 (8 sq miles) of elevated terrain on the north side of the Blackfoot Valley. The Blackfoot River lies 1 km (0.6 miles) south of the McDonald deposit. East Butte and West Butte rise 300 m (985 ft) above the Blackfoot Valley to an elevation of 1,750 m (5,740 ft). They conveniently divide the area into two parts. The Seven-Up Pete Joint Venture (SPJV) is a partnership between Phelps Dodge Mining (72.25%) and CR Montana, a subsidiary of Canyon Resources (27.75%). SPJV controls about 83 km2 (32 sq miles) of mineral and surface rights in the Lincoln area. The McDonald project is on state-owned and private land. The joint venture has conducted exploration since 1989 at the Seven-Up Pete, McDonald and Keep Cool areas (Fig. 1).