Avalon Development Corporation - Fairbanks Alaska

As is commonly the case in late January, an over-abundance of news has come out in the last month, in part to coincide with year-end financial releases and in part to coincide with the annual Cordilleran Roundup mining convention in Vancouver. The news itself included an $819 million year-end 2007 profit at one mine, new gold resources of 32.8 million ounces for the State's largest gold deposit and the sale of 70% of another mine for a whopping $750 million. That doesn't count new resource estimates on two other gold projects and multi-million dollar exploration programs announced at several other projects. Other than that, not much going on...

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Western Alaska

Teck Cominco American's announced stellar fourth quarter and year-end 2007 results from its Red Dog mine. In the 4th quarter the mine produced 134,600 tonnes of zinc in concentrate and for the year the mine produced 575,000 tonnes of zinc in concentrate. Zinc ore grade increased to 20.1% while mill recoveries were steady at 80% for the 4th quarter. The mine also produced 36,000 tonnes of lead in concentrate during the 4th quarter and 136,000 tonnes of lead in concentrate for the year. Lead ore grade decreased to 6.6% while mill recoveries decreased to 60.9% for the 4th quarter. The mine posted a healthy $174 million operating profit for the quarter and an $819 million operating profit for the year, both significantly down from the $623 million and 1.079 billion profits reported from the 4th quarter of 2006 and year end 2006, respectively. During the 4th quarter the mine paid JV partner NANA Regional Corporation $68 million in royalties.

NovaGold Resources Inc. announced that Measured and Indicated Resources for the Donlin Creek gold project have increased by 77% to 29.4 million ounces of gold, compared to the previous resource estimate of 16.6 million ounces published in September 2006. The new resource estimate includes an additional 135,000 meters of drilling from 359 holes, incorporating all of the 2006 drill program and roughly 72% of the 2007 drill program. The new measured and indicate resources stand at 371.7 million tonnes grading 2.46 grams of gold per tonne for 29.38 million ounces of gold. Inferred resources added an additional 46.5 million tonnes grading 2.31 grams of gold per tonne (3.46 million ounces). The new estimates include data from 402,000 meters (1.3 million feet) of drilling on the property.

Pacific North West Capital Corp. and joint venture partner Stillwater Mining Company announced assay results from the 2007 Goodnews Bay platinum project. Outcrop sampling returned results up to 2.27 parts per million platinum. Clusters of outcrop samples greater than 100 parts per billion platinum are located on both Red Mountain and Susie Mountain. Assay results from basal soil samples range from below detection to 432 parts per billion platinum, with a cluster of samples with greater than 50 parts per billion platinum located at the SW flank of Susie Mountain. Elevated platinum values were found in association with both chromite and magnetite. Based on assay results from 2006-2007 grab rock outcrop samples and basal soil samples, three prospects (Last Chance, Susie West, and Rock Mite) have been delineated as drill targets for the $1 million 2008 exploration program.

International Tower Hill Mines LTD announced the first-ever resource estimate for their Terra gold project in the western Alaska Range. The independent study determined an initial inferred resource estimate of 168,000 ounces gold and 318,000 ounces silver at an average grade of 12.2 grams of gold per tonne and 23.1 grams of silver per tonne (2 to 1 silver to gold ratio) over an average width of 2.3 meters at a cutoff grade of 5 grams of gold per tonne gold. The study indicated that the Ben vein system, on which the resource was based, showed good continuity and remained open to depth and along strike. Preliminary metallurgical tests indicate high gravity recovery rates.

Alix Resources Corp. and joint venture partner Millrock Resources Inc. announced 2008 plans at the Divide gold project near Nome. Exploration plans include reverse circulation drilling, HQ core drilling, striping of areas of high-grade surface showings and bulk sampling.

Triex Minerals Corporation announced plans to conduct 1,200 meters of drilling on its Fireweed prospect at the Boulder Creek uranium project on the Seward Peninsula. Details of the program were not announced.

Alix Resources Corp. announced that it had acquired a 100% interest in the Kamishak copper-gold project from Full Metal Minerals. Terms include payment of 750,000 shares over a period of 3 years to Full Metal, 100,000 shares to underlying owner Alaska Earth Science with a further 500,000 shares upon completion of a feasibility study and $60,000 to be paid to Alaska Earth Science in cash over 3 years. Concurrent with this arrangement Andover Ventures Inc. will retain a 20% interest in the property. Terms of this deal call for Andover to spend its proportionate amount of all expenditures upon Alix spending the first $1 million. Induced polarization and resistivity surveys completed in 2007 detected significant anomalous zones outside of the previous drilling areas. The work program for 2008 will include additional geophysical surveys followed by drilling of newly developed targets.

Alix Resources Corp. announced 2008 plans at it Alaska Peninsula project. At the KUY prospect, work program will include geologic mapping and additional induced polarization and resistivity surveying while at the Fog Lake prospect the company plans to conduct induced polarization and resistivity work along with diamond drilling.

Teck Cominco and joint venture partner Sumitomo Metal Mining announced 4th quarter and year end 2007 results from the Pogo mine. The mine produced 80,900 ounces of gold in the 4th quarter and 259,800 ounces for 2007. Average grade mined in the 4th quarter was 15.7 grams of gold per tonne with mill recovery of 87.6%. Total cash operating costs for the 4th quarter were $514 per ounce. The mine turned a $5 million profit in the 4th quarter. Despite improvements over 3rd quarter 2007 results, the mine remains below full capacity due to poor equipment availability and mill throughput. Projected 2008 production is 340-360,000 ounces.

International Tower Hill Mines LTD announced first-ever resource estimate for the Camp Zone deposit at its LMS project near Delta Junction. The study determined an initial inferred gold resource of 167,000 ounces of gold at an average grade of 0.89 grams of gold per tonne at a cutoff grade of 0.3 grams of gold per tonne. Due to the wide-spaced nature of the drilling, much of the high-grade mineralization, ranging from 3 to 121 grams of gold per tonne, could not be accurately modeled and was therefore excluded from the resource estimate. The resource estimate included results from 24 drill holes covering 250 meters of strike length and 590 meters down dip. The main mineralized zone is a 1-5 meter thick, shallowly-dipping, tabular zone of siliceous breccia and graphitic schist hosted in a mica schist sequence. The primary ore controls appear to be a combination of favorable host alteration zones and deep-seated feeder structures. The zone remains open to the north and west.

Teryl Resources Corp. announced plans for a drill program on the Fish Creek gold project in the Fairbanks District to test several geophysical anomalies. The geophysical survey was completed by Fugro Airborne Surveys, Inc. which has identified six gold targets on the Fish Creek project.

International Tower Hill Mines LTD announced plans for a $7.2 million, 50,000 meter reverse circulation and core drilling program at its Livengood gold project north of Fairbanks. Drilling is scheduled to begin in May and continue through the end of the year utilizing up to 3 rigs. Drilling results to date have outlined an open-ended zone of gold mineralization approximately 2 kilometers long and over 0.5 kilometers wide, with an average mineralization thickness of 85 meters of greater than 0.25 grams of gold per tonne, averaging 0.85 grams of gold per tonne. Mineralization is stratabound, primarily hosted in a folded sequence of volcanics and calcareous sediments. Based on the 2007 results, the company has outlined an approximate 150 hole program designed to significantly expand the known mineralized zone. In addition, the company plans to expand its ongoing metallurgical testing work and begin environmental baseline studies. The company plans to structure the drilling program so it can be continued into 2009 on a year round basis.

Full Metal Minerals announced final assay results from the LWM prospect on its 40 Mile project. Results include the highest grade mineralization yet encountered on the property. Hole LWM07-19 intersected 126.5 meters averaging 10.8% zinc, 2.0% lead and 30.7 grams of silver per tonne, including: 5.64 meters averaging 19.9% zinc, 31.8% lead and 346.8 grams of silver per tonne. Hole LWM07-21 intersected 10.7 meters averaging 5.5% zinc, 7.6% lead and 110.3 grams of silver per tonne. Massive sphalerite, galena, and chalcopyrite mineralization has been encountered over 300 meters of strike length and greater than 200 meters below surface. Mineralization remains open for expansion in all directions. In 2008 the company will complete a 15,000 meter core drilling program, conduct additional surface sampling and complete geophysical surveys at the project. Drilling is expected to commence in mid-March and will include infill and step-out holes at LWM, as well testing the Eva, Oscar and Drumstick targets, which have not been drilled previously.

Millrock Resources Inc. announced that is has acquired three claim blocks in the Fortymile mining district. Millrock is targeting disseminated and vein-style intrusion-related lode gold deposits in the area. Limited rock sampling from the project has returned values up to 3.54 grams of gold per tonne. Stream sediment sampling of one of the properties defined a multi-sample gold and arsenic stream sediment anomaly that will be targeted for grid sampling follow-up work in 2008.

Little Squaw Gold Mining reported additional alluvial drilling results from its Little Squaw gold project in the Brooks Range. The company drilled a total of 111 holes on the property during the 2007 summer field season, 99 of which were completed to targeted depths. Seventy-three of these holes intersected mineralized gravel averaging $14.85 per cubic yard in gold over a thickness of 83 feet using a gold price of $600 per ounce. The company is conducting preliminary economic assessments and completing resource estimates to help it determine how best to proceed.

The biggest news of the month was the acquisition by Hecla Mining of Kennecott's 70.3% interest in the Greens Creek mine near Juneau. The $750 million acquisition brings Hecla's interest in the mine to 100%. The company also announced that for 2007 the mine produced 8.6 million ounces of gold, 68,000 ounces of silver, 63,000 tons of zinc and 21,000 tons of lead. Total average cash cost for 2007 was a negative $5.27 per ounce of silver produced. As Sam Spade would say "That's a lot of dough, baby!"

Niblack Mining Corp. announced that underground exploration has resumed on the Niblack gold-silver-copper-zinc project. Drill crews have mobilized back to the property to continue the 9,000 meter phase one underground drill program. The underground has advanced 208 meters from the portal entrance and is advancing at the rate of 4.8 meters per day. Ground conditions continue to be very good with limited rock bolting required. The underground program will consist of up to 1,800 meters of tunnel development providing access to areas beneath gold-rich base metal mineralization defined at the Lookout zone and to allow exploration along the North Limb target. Underground access to the Trio Zone could also be achieved by extending one of the exploration drifts currently under construction at the Lookout Zone by 360 meters. Drilling along the North Limb is now underway and will be followed by drilling at the Lookout Zone. The company also reported additional results from the 2007 drilling program including 6.28 meters grading 2.15 grams of gold per tonne, 20 grams of silver per tonne, 0.59% copper, 4.31% zinc in hole LO-207 from the Trio zone and stockwork mineralization at the Dama zone grading 0.54% copper over 18.18 meters, and 0.34 meters of massive sulfide grading 2.2 grams of gold per tonne, 71 grams of silver per tonne, 10.8% copper, and 8.18% zinc.

Pure Nickel Inc. announced approval of drilling permits on its Salt Chuck copper - palladium project near Hollis. The drilling phase of the exploration program originally planned for November was delayed due to the permitting process. Drilling can be carried out year round at Salt Chuck and the company is determining the optimal time to conduct the drilling in 2008.