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MINING NEWS: Airborne surveys kick off MAN work Nevada Star, partner Anglo American plan geophysical work this summer for Fish Lake and Dunite Hill, drilling planned for Canwell Patricia Liles Mining News Editor
A large portion of the 269-square mile MAN nickel, copper and PGE property on the south flank of the Alaska Range near Paxson, Alaska, will soon be assessed by proprietary geophysical technology used by Anglo American Exploration (Canada), a subsidiary of global mining giant Anglo American.
Anglo signed a joint venture agreement in mid-March with the property’s claim staker, Nevada Star Resource Corp., a Vancouver, British Columbia-based junior that has put together a substantial land position in the south Interior Alaska mineral belt that stretches along the Denali and the Richardson highways. Anglo’s agreement covers two areas of Nevada Star’s MAN project — the Fish Lake and the Dunite Hill prospects, which make up 55 percent, or the southern portion, of the 269-square mile property.
Terms of the agreement allow Anglo to earn a 51 percent interest in Fish Lake and Dunite Hill by spending $12 million over a five-year period. If Anglo completes a feasibility study at its expense, the company is entitled to an additional 19 percent, putting ownership of the property at a 70/30 split. Anglo can earn an additional 5 percent by arranging production financing for both properties.
The remaining northern MAN property is divided into four project areas, Canwell, Rainy, Boxson and the Eureka Block. One area is known for past gold production, hosting five placer operations from the late 1800s through the early 1990s, said Nevada Star president, Robert Angrisano. The other three areas have significant showings of nickel and PGEs.
“It’s our intention to find partners that will develop these four areas and eventually put the properties into production,” Angrisano said. “Although Anglo has a ‘first right of refusal’ option on these other areas, we are actively talking to other companies about joint ventures on these projects. Anglo will have to choose to expand its program and financial commitment, or allow others to joint venture these projects.”
Now the operator of the southern prospects, Anglo plans to survey the area with its proprietary airborne geophysical technology and equipment, Angrisano said. “The area was flown before by BLM (Bureau of Land Management-funded airborne geophysical surveys) but this is the next generation of technology,” he said. Additional ground sampling will follow the new airborne survey work. The company may drill later this year.
“A few more things need to be determined or identified before drilling,” Angrisano said. “There’s a lot of work to be done in the analysis of data to determine drill targets.” Drilling is easier on this property when snow is on the ground, he added. Anglo’s budget for its portion of the MAN property is $500,000 this year, Angrisano said. “It looks like at this point they will spend at least that much, possibly more.” Environmental opposition for exploration The joint venture announcement came on March 15, despite a letter-writing campaign to Anglo’s board of directors mounted early in the year by environmental groups hoping to scuttle the major company’s involvement. Angrisano said he was surprised by that opposition, which came mostly from letters written by people living outside of Alaska.
Platinum and palladium, elements contained in PGE mineralization, are “key building blocks” for fuel cell technology and a possible decrease in future use of petroleum products. Demand for these metals has increased in recent months, driving up their per ounce prices, in particular for platinum, to near record highs.
“If we are ever to get rid of the internal combustion engine, we need to find new sources of platinum,” Angrisano said. “That’s the whole reason I’ve been involved in this company — fuel cells are designed to leave the planet a better place.”
Attention to detail and concern for the environment drove his company to select Anglo over other companies for a partnership on the property, he added. “That’s why we chose Anglo — they go the extra mile from a permitting and environmental standpoint, to do what’s right,” he said.
“We didn’t choose smaller companies. We discussed it with two other companies wanting to work with us but they did not have as good of a track record as Anglo does.” Anglo, the world’s largest platinum producer, has a reputation for using the most advanced technology and techniques in the industry for discovery of new ore bodies, Angrisano said.
“This partnership is important to Nevada Star for two reasons. First, we wanted a partner that has the ability and resources to quickly identify an economic mineral deposit,” he said. “Second, we wanted a partner that will be responsible and accountable to the community we operate in.” Angrisano noted that Anglo contributed more than $38 million to community and social causes last year, out of annual revenues of more than $25 billion. Canwell work continues Independent of its joint venture with Anglo, Nevada Star plans to continue exploration work at its other prospects on the MAN property. The company is in the final planning stages with an approximate budget of $450,000, focusing on the Canwell, Rainy and Broxson areas.
“Some of the things we plan to do this summer include mag-inversion 3D modeling of the northern areas, rock and soils sampling, min/max survey of the Canwell area and drilling on the Canwell area,” Angrisano said. “The min/max work will be done in July prior to drilling in August. Min/max helps further identify drill targets.”
In order to reach the Canwell property, located east of the Richardson Highway, Nevada Star extended an old mining road by 3.5 miles in 2003, according to the company’s annual reclamation report. Two core holes were drilled last year, and the company plans to drill an additional eight to 10 holes this year, according to its exploration permit filed with the Alaska Department of Natural Resources. Nevada Star will also refocus attention on the property’s gold potential.
“A program of mapping, prospecting, and colluvium (soil) sampling will be carried out over the gold exploration target between Specimen Creek and Broxson,” Angrisano said.
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