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The town is named for the Comet Mine, which was developed in 1883 by the Helena and Livingston Smelting and Reduction Company, based on a discovery made in 1874. Ore was transported to another mine in Wickes for processing. This operation shut down in 1897. Operations were revived in 1900 under the Montana Consolidated Copper Company; in 1927 the Basin Montana Tunnel Company took over the property and built a processing plant on the site for both this mine and the nearby Gray Eagle mine. The company was the largest producer of base metals in the state, outside of Butte, Montana, due to production at this mine. They employed 100 men. The operations of BMTC continued until 1941 when the mine was exhausted and operations were permanently halted.

The Comet mine was richest mine in the district, producing $20 million in ore; ten times more than the Gray Eagle mine, which produced over $2 million. Ores produced included lead, zinc, copper, silver, and gold.

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