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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2003

Vol. 8, No. 25 Week of June 22, 2003

New hardrock exploration site gets a look

AngloGold drills lode prospects in historical placer gold producing district, state continues geological data inventory of area

Patricia Jones

Petroleum News Contributing Writer

One of the world’s largest gold mining companies is taking its first look at lode prospects near the historical placer mining community of Livengood some 75 miles northwest of Fairbanks, Alaska.

Up to 17 reverse-circulation drill holes are planned for federal lode claims currently under option by AngloGold (U.S.A.) Exploration Inc., a subsidiary of South Africa-based AngloGold.

The claims are owned by two Fairbanksans, Richard Hudson and Richard Geraghty, according to AngloGold’s hardrock exploration application submitted and approved by the Alaska Department of Natural Resources.

Dubbed the BAF Project, drill crews have until July 1 to complete their work on the claims, located just south of the Livengood townsite, in an area on the northeast flank of Money Knob.

Jeff Pontius, AngloGold’s exploration manager in the United States, declined to comment on the company’s work in the Livengood area. “We really don’t have any comment on the activity in the Livengood area,” he told Petroleum News May 30. “Most of our effort is directed towards the Pogo area.” (See related story.)

According to the company’s exploration plan submitted to DNR, seven primary drill holes are planned, with 10 secondary holes outlined. Six of the primary holes and six of the secondary holes are on claims held by Hudson, while the remaining holes are on Geraghty’s claims.

A map plan shows the holes in a squared grid consisting of four rows, each row and most of the holes roughly 500 feet apart. Maximum depth of the holes is 1,000 feet, according to the exploration application.

Access via Elliott Highway

Access will be via the Elliott Highway to the turnoff for the Livengood town site, and from there on existing dirt roads to the project area. Individual drill sites will be reached via cross-country or short constructed trails confined to the leased federal claim block, according to the application. Old overgrown trails and trenches will be incorporated as access routes whenever possible, should access need to be constructed.

Drill crews and geologic support staff will be based out of Fairbanks, and diesel fuel for the track-mounted reverse-circulation drill rig transported to the site on a daily basis.

Water needed for drilling will be pumped from a natural pool, probably in Livengood Creek, using a screened intake to prevent fish entrapment. Ruth Creek runs northwest of the drilling area, while Olive Creek runs just south.

Upon completion, drill holes will be backfilled from bottom to top with Benseal or an equivalent bentonite slurry. Drill cuttings will be back-bladed and evenly spread over the drill site and any pads and access trails will be reclaimed as close to pre-drilling conditions as possible.

Past producer, current state study

AngloGold did say that this will be their first year exploring the Livengood area. State geologists, however, have been working on a comprehensive study of the area, starting with release in February 1999 of airborne magnetic and electromagnetic geophysical maps for 229 square miles.

Geologists from the Alaska Division of Geological & Geophysical Surveys have already hit the ground this summer, part of an effort to gather data for a ground-truth inventory map of some 130 square miles of that geophysical survey area.

According to a summary of DGGS work in the area, 14 inactive placer gold mines and nine metallic lode occurrences occur in the Livengood area. Lode prospects with gold, mercury and/or antimony mineralization are concentrated on the west end of Money Knob.

Approximately 500,000 ounces of placer gold have been mined from the region since 1914, with the most production from Livengood Creek, according to the DGGS summary.

“Numerous felsic dikes and sills have been previously mapped in the central part of the Livengood district on Money Knob and the igneous rocks have a spatial association with the headwaters and presumed source rock for most of the district’s placer gold, especially deposits in Ruth, Lillian and Olive creeks,” the summary said.

In addition to providing a better understanding of the geologic framework for ore deposits in the Livengood area, DGGS’s work “should stimulate increased mineral exploration investment within this belt of rocks.” Geologic maps will be completed by June 2004, according to DGGS.






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