The
Alaska Miners Association recently released an economic benefits summary of the
Alaska mining industry. This summary indicated that in 2009 the Alaska mining
industry provided 3,300 direct jobs along with 5,200 indirect jobs in 120 communities
in Alaska with a combined payroll of $320 million. Average industry jobs came
in at $83,000 per year, which is 85% higher than the average Alaskan wage and
second only to wages in the oil and gas industry. The industry also paid $12.3
million in local property taxes, $35 million in state of Alaska revenue and $39.8
million in royalties to Alaska Native corporations. Couple of factoids to lay
on the great unwashed next time you are jousting over port and cigars: the Red
Dog mine paid the Northwest Artic Borough $7.8 in property taxes, representing
100% (that's right Dorothy, 100%) of the Borough's tax revenue. The Fort Knox
mine was the largest Borough taxpayer and paid the Fairbanks North Star Borough
$2.8 million in property taxes while the Greens Creek mine was the largest City
and Borough taxpayer and paid the City and Borough of Juneau $1.4 million in property
taxes. When the Kensington mine starts production, Greens Creek will fall to second
place as the City and Borough of Juneau's largest taxpayer. Usibelli Coal mine
produced a record 1.8 million tons of coal in 2009 and exported a record 40% of
that coal to South American and Asian markets. Lots of other facts and figures
to dazzle your friend with, but the point is: mining matters.
| Click
On Link To Jump To Section: |
| | | |
|
| | |
Western
Alaska
Teck
Resources Limited and partner NANA
Regional Corporation announced fourth
quarter and year-end 2008 results from its Red Dog mine. In the 4th quarter
the mine produced 151,300 tonnes of zinc in concentrate and for the year the mine
produced 582,500 tonnes of zinc in concentrate. Zinc ore grade for the year was
20.9% while mill recoveries decreased slightly to 82.4%. The mine also produced
36,400 tonnes of lead in concentrate during the 4th quarter and 131,500 tonnes
of lead in concentrate for the year. Lead ore grade for the year decreased slightly
to 5.9% while mill recoveries decreased slightly to 65.9%. The 2009 production
figures were a record for the mine. The mine posted a $200 million operating profit
for the 4th quarter and a $399 million operating profit during 2009 versus a $71
million operating loss for the 4th quarter in and a $171 million operating annual
profit for 2008. The mine shipped 1,020,000 tonnes of zinc concentrate and 220,000
tonnes of lead concentrate during the 2009 shipping season. During 2009 the mine
paid partner NANA Inc. and the State of Alaska royalties of $144 million
versus royalties of $111 million in the year-previous period. On the down side,
the partners also announced that an appeal that has been filed against the U.S.
Environmental Protection Agency (EPA) for renewal of the water discharge permit
issued at Red Dog. This appeal was filed by the same groups that last month
challenged a State of Alaska decision certifying that the same permit complied
with the State's water quality standards. The current operating plan calls for
continuing to mine the Main Deposit under existing permits until mid 2011. The
Main Deposit ore will eventually need to be supplemented with ore from Aqqaluk,
the next orebody slated for production at the mine. If permit delays extend beyond
May 2010, the transition plan will be affected and production at Red Dog
would likely be curtailed in October and could possibly force a shut down of all
mine operations, throwing 390 employees and 95 full-time contractors out of work.
Zazu
Metals Corporation announced positive metallurgical
results from its Lik zinc-lead-silver deposit. The studies indicated that a zinc
recovery of 85% could likely be obtained with silica levels less than 5% through
standard froth floatation recovery. The test work showed that a zinc concentrate
containing less than 5% silica could be routinely produced and that both zinc
and silica levels could be achieved in a commercial plant. It is likely that a
coarser regrind would also achieve target silica grades, but this concept still
needs further testing. These data will be incorporated in the company's soon to
be released Preliminary Assessment Study.
NovaGold
Resources Inc. announced the results from
2009 work programs and plans for 2010 at its Donlin Creek project. During
2009, expenditures at the Donlin Creek project, a 50:50 JV with Barrick
Gold, totaled approximately $25.3 million, with 50% contributed by each party.
Work focused on geotechnical drilling for the location of mine facilities, environmental
baseline data collection, pre-permitting community advisory meetings and various
optimization studies. For 2010, the partners have approved a budget of approximately
$28 million. Efforts will focus on completing optimization studies, including
the potential to bring a source of natural gas to the project. NovaGold
expects that these studies will be completed by mid-2010, at which point the partners
will either file permit applications for the original project design or, upon
unanimous approval, approve a supplemental budget and proceed to revise the feasibility
study to include the natural gas option.
NovaGold
Resources Inc. also announced year end results
from its Rock Creek gold project near Nome. During 2009, expenditures at
the project totaled approximately $27.7 million. NovaGold worked to improve
the project's water management structures and action plan to ensure the project
remains in compliance with all environmental regulations. The Company is completing
a detailed review process to evaluate start-up requirements for the project, but
does not currently plan to initiate start-up activities in 2010.
Northern
Dynasty Mines announced an updated
mineral resource estimate for the Pebble deposit. The new resource estimate
is based on 509 core holes, including 37 new holes drilled since mid-2008. The
new estimate represents a 17% increase in resources within the higher confidence
measured and indicated categories, and a 12%, 14% and 16% increase in contained
copper, gold and molybdenum, respectively. At a 0.3% copper equivalent cutoff
grade, the new estimates include measured resources of 527,000,000 tonnes grading
0.33% copper, 0.35 grams of gold per tonne and 178 parts per million molybdenum,
indicated resources of 5,414,000,000 tonnes grading 0.43% copper, 0.35 grams of
gold per tonne and 257 parts per million molybdenum and inferred resources of
4,835,000,000 tonnes grading 0.24% copper, 0.26 grams of gold per tonne and 215
parts per million molybdenum. Put all these categories together and the deposit
contains 80.6 billion pounds of copper and 107.3 million ounces of gold. The Pebble
Partnership, consisting of Northern Dynasty Minerals and a wholly-owned
subsidiary of Anglo American plc, is working to advance a Prefeasibility
Study for the project and is preparing to initiate project permitting under the
National Environmental Policy Act in 2011, a process estimated to take 2 - 3 years
to complete.
Fire
River Gold Corp. announced plans for its
Nixon Fork copper - gold project near McGrath. In 2009 the company began
a $1.25 million evaluation of the project to confirm the status of the geological
work, confirm the gold grade from the tailings pond and complete further metallurgical
test work. The evaluation program is continuing into 2010, with key milestones
including a determination of a March/April 2010 go, no-go decision for completing
the carbon in leach circuit to process tailings, defining exploration targets
for underground and surface drilling commencing in May, preparation of a new resource
estimate for the property by fall 2010, and the determination of a go, no-go decision
for the resumption of underground mining by the end of the year. The company currently
is re-logging and re-assaying selected intervals of past drilling and plans to
drill up to 12,000 meters of underground drilling and an additional 8,000 meters
of surface drilling in 2010. During 2009 the company completed a drill program
to confirm the gold grades of approximately 150,000 tonnes of mill tailings and
a study is in progress to determine the grade and metallurgical properties of
this material.
Freegold
Ventures Limited and Western
Standard Metals LTD. signed an option agreement
whereby Western Standard can earn a 50 percent interest in Freegold
Ventures' Vinasale gold project near McGrath. Freegold optioned the
Vinasale project from Doyon Ltd. Under the terms of the agreement Western
Standard would pay Freegold $350,000 on the closing of the deal and
make exploration expenditures of $6.5 million by December 31, 2012. The 2010 exploration
expenditure commitment is $1,500,000. Western Standard said its initial
exploration program will consist of data compilation, verification and target
generation followed by geophysics, geochemistry and diamond drilling with the
objective of expanding the existing resource and identifying new areas that may
have the potential to host additional resources. In addition to the exploration
program, samples will be collected for metallurgical test work.
Tintina
Gold Resources announced that it had raised
approximately $5 million and intends to use the proceeds for exploration on its
Colorado Creek gold project in the Ophir District and its Kugruk
copper project on the Seward Peninsula.
Interior Alaska
Kinross Gold
announced year end 2009 results from its Fort Knox mine. The mine produced
86,614 ounces of gold in the 4th quarter at a cash cost of $450 per ounce while
year-end totals were 263,260 ounces of gold produced at a cost of $546 per ounce.
Phase 7 exploration more than replaced this production by moving 369,000 ounces
of gold to the reserve category. The tonnes mined and milled in the 4th quarter
of 2009 were nearly double what they were in 2008. During the 4th quarter the
mine processed 6.816 million tonnes of ore grading 0.65 grams of gold per tonne.
Mill recoveries were 83% for the 4th quarter. Cost of production dropped significantly
to $450 per ounce due primarily to contributions for lower-cost heap leach mining.
The company also tabled year-end 2009 resource updates that included proven and
probable reserves of 252,945,000 tonnes grading 0.45 grams gold per tonne, equivalent
to 3,692,000 ounces of gold. An additional 105,768,000 tonnes grading 0.50 grams
gold per tonne, equivalent to 1,694,000 ounces, are classified as measured and
indicated resources. An additional 12,755,000 tonnes grading 0.55 grams gold per
tonne, equivalent to 226,000 ounces, are classified as inferred mineral resources.
Teryl
Resources Corp. announced that partner Kinross Gold had
approved a $1,524,600 budget for 2010 for the Gil gold deposit. The goal
of the 2010 program will be to better define the strike extent of the mineralized
zones and infill between step-out holes in order to gain a better understanding
of ore-zone continuity. The 2010 work plan calls for ground geophysics, 11,000
feet of reverse circulation drilling and 5,000 feet of core drilling. In addition,
fieldwork will include mapping, soil and rock sampling, and mobile metal ion geochemical
sampling.
Freegold
Ventures Limited and Western
Standard Metals LTD. announced their intention to merge the two
companies. The resultant firm will own Freegold's interest in the Golden
Summit and Rob gold projects in Interior Alaska, Freegold's interest
in the Vinasale gold project near McGrath, Freegold's 50% interest
in the Union Bay platinum group metal project near Ketchikan and Western
Standard's Almaden gold project in southern Idaho.
In
a recent public presentation, Pogo mine officials reported that the mine
produced 398,808 ounces of gold in 2009, a 45,000 ounce increase over 2008 production
numbers. The mine produced at a cash cost of $423 per ounce and is projecting
2010 production at +385,000 ounces of gold.
International
Tower Hill Mines LTD announced the start of the first phase of
its planned 50,000 meter 2010 exploration drill program at its Livengood
gold project. The initial winter phase of this program will focus on the expansion
of the Southwest and Western parts of the Money Knob deposit which contains the
highest grade portion of the known deposit. In addition, the area between the
Sunshine and Core Zones will be infill drilled. The company also announced an
amendment to its lease with the Alaska Mental Health Land Trust to increase
the leased fee simple land by approximately 25 square kilometers, brining total
leased land to 70 square kilometers.
Alaska Range
In
a recent public presentation, officials of Usibelli
Coal Mine released 2009 operating results from its open cut operations
near Healy. Total permitted reserves at the mine are 30.6 million tons of sub-bituminous
coal with total defined reserves of approximately 500 million tons. Total resources
in the Nenana Basin coal field are pegged at an amazing 7 billion tons of coal.
During 2009 the mine produced 975,578 tons of coal for Alaska consumption and
an additional 803,751 tons of coal for the export market, more than half of which
went to Chile with the remained going to Asian buyers. The company employs a total
of 388 full-time equivalent employees and does business with 400 vendors in the
Fairbanks and Anchorage areas.
Kiska
Metals Corporation announced results from wide-spaced surface reconnaissance
work conducted in 2009 at the Whistler project. Prospecting and mapping
of high-priority areas outlined several new areas of gold mineralization, including
the Old Man Breccia target where saw channel sampling returned 3.34 grams of gold
per tonne over 28 meters of continuous channel sampling, including 7.12 grams
of gold per tonne over a 10 meters in the South trench, 1.94 grams of gold per
tonne over 16 meters in the Northeast trench and 0.74 grams of gold per tonne
over 16 meters of continuous channel sampling, including 0.96 grams of gold per
tonne over 12 meters in the Northwest trench. The company also announced that
it plans to commence a drilling program in mid-March, consisting of a minimum
of 5500 meters in 15 holes. The initial 2010 program will be overseen by a joint
technical management committee from both Kiska and Kennecott Exploration
Inc. Completion of the program will provide all the data necessary for Kennecott
to decide whether to exercise its one-time right to purchase a 51% interest in
the Whistler project by refunding 200% of the project's exploration expenditures
and by advancing the project to a positive prefeasibility study. Kennecott
can then earn an additional 9% project interest by advancing Whistler to
a production decision.
Full
Metal Minerals and Harmony
Gold announced assay results from 4,200 meters of drilling (26
holes) completed in an infill and step-out drilling program in 2009 at its Lucky
Shot gold project north of Anchorage. Highlights include hole C09-152 which
intersected 3.6 meters averaging 24.14 grams of gold per tonne, hole C09-153 which
intersected 0.9 meters averaging 102.00 grams of gold per tonne, hole C09-158
which intersected 0.6 meters averaging 58.20 grams of gold per tonne, hole C09-169
which intersected 3.7 meters averaging 19.23 grams of gold per tonne and hole
C09-171 which intersected 7.3 meters averaging 36.38 grams of gold per tonne.
This drilling served to extend the high grade mineralization in the Coleman block
on the Lucky Shot shear zone at least 50 meters up-dip of historic workings. The
partners intend to begin underground development and bulk sampling in the second
quarter of 2010 in order to complete engineering studies, metallurgical test work
and environmental studies. Subject to positive results from this effort, the partners
plan to construct underground access to the Coleman block, complete additional
surface drilling and collect and process a bulk sample to confirm the continuity
of high-grade gold mineralization within the Lucky Shot shear.
Millrock
Resources Inc. announced that it has staked two claim blocks
in the Kahiltna Terrane that will form the basis of two 50:50 joint ventures with
a subsidiary of Altius
Minerals Corp. The St. Eugene and Monte Cristo prospects
were identified through the activities of the Millrock - Altius strategic
alliance. The Monte Cristo project targets a large tonnage, intrusive-related
gold-rich porphyry deposit containing anomalous gold values in rock and soil over
a distance of 1.5 kilometers. Soil samples ranged up to 400 parts per billion
gold and averaged 86 parts per billion gold while rock samples returned up to
4.2 grams of gold per tonne and averaged 0.493 grams of gold per tonne. An associated
alteration assemblage of carbonate - quartz - sericite typical of many Alaska
gold porphyry systems occurs over a broad area of the property. The St. Eugene
project is situated on a copper-gold-molybdenum porphyry system initially discovered
in the 1970s. Extensive and intense silica, sericite and chlorite-epidote alteration
is associated with chalcopyrite and copper oxide minerals, plus molybdenite, pyrite
and pyrrhotite. Rock samples returned values up to 2.2 grams of gold per tonne
and 1.0% copper in talus on both sides of a glacier-filled valley spanning 1.2
kilometers. Soil samples returned values up to 200 parts per billion gold and
averaged 67 parts per billion gold.
Millrock
Resources Inc. also announced that it staked the Revelation
gold project in the Kahiltna Terrane west of the company's Estelle project.
A multi-element stream sediment anomaly covering 177 square kilometers surrounds
the property. Porphyritic diorite and altered sedimentary rocks and associated
quartz stockwork are associated with alteration and oxidized sulfide minerals.
A 600 meter long soil anomaly consisting of 10 samples with values ranging between
95 and 1,200 parts per billion gold was identified in a first pass reconnaissance
program. The project was staked following the purchase of maps, data and other
information from long-time Alaska consulting geologist Gerald Booth. The
purchase agreement consists of payments of $45,000 made over four years and issuance
of 40,000 Millrock shares. A payment of $2.0 million will be made to Booth
upon commencement of commercial production.
Northern
Alaska
NovaGold
Resources Inc. announced 2010 plans for its Ambler polymetallic
sulfide deposit in the Brook Range. The company plans to continue its community
engagement programs at Ambler and has appointed a project team to plan exploration
activities, advance environmental baseline studies and conduct engineering and
technical studies at the project with the goal of gaining a better understanding
of the true size and potential of the district as well as the continuity and mineability
of the other deposits in the Ambler belt.
Southeast
Alaska
Hecla
Mining announced year end 2009 production results from the Greens
Creek mine on Admiralty Island. The total cash cost per ounce of silver produced
at Greens Creek for the year was $0.35 per ounce with total production
costs for the year of $7.65 per ounce. The average grade of ore mined during the
year was 13.01 ounces of silver per ton, down slightly from the average grade
of 13.69 ounces per ton that was mined in 2008. For the year the mine produced
7,459,170 ounces of silver, 67,278 ounces of gold, 22,253 tons of lead and 70,379
tons of zinc. The decrease in cash costs in 2009 compared to 2008 is the result
of increased throughput, increased availability and use of hydroelectric power
and lower prices for some consumable products, primarily diesel fuel. Milled tonnage
averaged 2,167 tons per day, or 8% higher than production in 2008. On the exploration
front, the mine completed approximately 39,000 feet of underground in-fill and
exploration drilling in 2009. The drilling tested the peripheries of known zones
including the 5250, Deep 200 South and the NWW-South in the mine resulting in
a replacement of tons mined during 2009. Five exploration holes in the NE contact
zone, including three from surface, drilled through the targeted contact horizon
encountering disseminated and stringer mineralization in highly altered rocks
with local intervals of low grade silver mineralization. The last drill hole in
the program intersected massive and semi-massive pyrite mineralization over a
20-foot interval and suggests proximity to a new massive sulfide body. The company
also announced revised resource estimates for the mine which include probable
reserves of 8,314,700 tons grading 13.9 ounces of silver per ton, 0.102 ounces
of gold per ton, 3.6% lead and 10.3% zinc, mineralized material of 789,800 tons
grading 4.1 ounces of silver per ton, 0.063 ounces of gold per ton, 2.0% lead
and 4.6% zinc, and other resources of 2,412,000 tons grading 11.5 ounces of silver
per ton, 0.092 ounces of gold per ton, 2.7% lead and 6.8% zinc. Since 1987 Greens
Creek has produced a total of about 162 million ounces of silver and approximately
1.1 million ounces of gold and currently has over 132 million ounces of silver
reserves and resources.
Coeur
d'Alene Mines announced the discovery of a new high-grade vein
system at its Kensington gold mine. The new structure, named the Kimberly,
is a gold-bearing vein system exposed in the decline recently driven from the
mill to the Kensington mine workings. Results of a 14 hole, 4,080 foot
drilling program completed in late 2009 returned high grade intercepts including
2.8 feet grading 0.462 ounces of gold per ton in hole KMB-001, 26.9 feet grading
0.322 ounces of gold per ton in hole KMB-007, 5.5 feet grading 1.293 ounces of
gold per ton in hole KMB-007 and 4.6 feet grading 0.536 ounces of gold per ton
in hole KMB-013. Phase-one drilling defined gold mineralization on the Kimberly
vein system over a north-south strike length of 600 feet and nearly 600 foot down
dip to the southwest. Additional work is planned.
Constantine
Metal Resources announced an initial resource estimate for the
Palmer copper-zinc-gold-silver volcanogenic massive sulfide project. Using
a royalty cut-off value of $50 per tonne, inferred resources came in at 4.75 million
tonnes grading 1.84 percent copper, 4.57 percent zinc, 0.28 grams of gold per
tonne, and 29.1 grams of silver per tonne. The resource contains a higher-grade
copper zone within the overall resource that holds 2.52 million tonnes grading
2.65 percent copper, 3.71 percent zinc, 0.29 grams of gold per tonne and 27.0
grams of silver per tonne, based on a 1.5 percent copper cut-off. The deposit
is open in most directions, with potential for expansion of the resource base.
The company intends to continue drilling on the project in the spring of 2010.
UCore
Uranium announced 2010 exploration plans for its Bokan-Dotson
Ridge rare earth element project on Prince of Wales Island. Drilling in 2010
will focus on the rare earth-bearing zones at the Dotson Trend and the Sunday
Lake Zone, which yielded significant heavy rare earth element intercepts in past
drilling. This year's program includes at least 3000 meters of drilling and will
include detailed geological mapping, airborne and ground-based geophysical surveys,
detailed mineralogical studies, environmental baseline data collection, and bench-scale
metallurgical test work. The 2010 work will also include a preliminary scoping
study of prospective mining logistics and methodologies.
