Sandfire rallies on Montana Supreme Court ruling

Sandfire Resources America Inc. [SFR-TSXV] shares rallied Friday after the company announced a win at the U.S. Supreme Court in relation to water rights.

The company said the Montana Supreme Court has upheld a 2023 District Court decision regarding the water rights related to Tintina Montana Inc.’s Mine Operating Permit for the Black Butte Copper Project.

The shares rose 10% or $0.03 to 33 cents, and trade in a 52-week range of 46.5 cents and $0.075.

Sandfire is engaged in the exploration and development and mining of its 100%-owned flagship property, the Black Butte Copper Project in central Montana.

The original suit was filed jointly against the Montana Department of Natural Resources (MT DNRC) and Conservation and Tintina Montana Inc., a subsidiary of Sandfire America in August 2022. As background, Tintina filed its application for a beneficial groundwater permit with the MT DNRC in September, 2018. In March, 2020, the MT DNRC determined that Tintina had satisfactorily met all the statutory criteria for the issuance of the permit.

The MT DNRC’s decision was upheld by a MT DNRC Hearing Examiner when challenged by five environmental organizations who filed objections to the permit. The objectors appealed the decision in the Montana District Court, and on April 12, 2023, District Court Judge Hayworth ruled that the DNRC and the Hearing Examiner properly determined that mine dewatering is not a beneficial use of water and dismissed the objector’s petition for Judicial Review.

The Objectors appealed the district court’s decision to the Montana Supreme Court in May, 2023.  Additional intervenors in the suit supporting the MT DNRC and Tintina, include the MT Stockgrowers Association, MT Farm Bureau Federation, and Association of Gallatin Agricultural Irrigators. On January 2, 2025, the Montana Supreme Court in a 5-2 decision affirmed the district court’s determination that mine dewatering is not a beneficial use of water.

“Black Butte Copper now has all permits to proceed with the feasibility work for this project,’’ said Sanfire CEO Lincoln Greenidge. “We remain diligently focused on reaching an investment decision to build the mine of which all Montanans and the North American mining community can be proud.’’

Sandfire has been working to upgrade and expand the Johnny Lee Lower Copper Zone resource of 1.2 milion tonnes at 6.8% copper (measured and indicated) and 500,000 tonnes at 5.9% copper (inferred). In keeping with that goal, the company recently announced results from tis 2024 exploration drilling program at Black Butte.

The current drill program is planned to extend into mid summer of 2025 and is expected to lead to expansion and increased definition of the Johnny Lee Copper Zone.  The company added a second drill in late November, 2025 and plans to add a third in January, 2025.