Drilling Ester Dome

Alaska’s largest gold producer gets approval to drill Ryan Lode mine

Patricia Jones

Petroleum News Contributing Writer

State mining regulators approved this week a gold exploration drilling program proposed at the closed Ryan Lode gold mine on Ester Dome, adjacent to a rustic residential area about 10 miles west of Fairbanks.

In a letter sent May 28 to individuals interested in the exploration program, Alaska Division of Mining, Land and Water geologist Brent Martellaro outlined restrictive exploration stipulations unique to Ryan Lode exploration. The stipulations — along with a public open house and comment period that was held for the Ryan Lode project — are not part of typical state requirements for mining exploration.

“DNR believes this public feedback was important because of past concerns that nearby residents expressed about previous exploration drilling activities of similar magnitude,” Martellaro wrote in his letter.

Martellaro told Petroleum News on May 28 that prospecting can begin June 1.

Fairbanks Gold Mining, owner of the closed heap leach mine site on Ester Dome, submitted an application in mid-April for an extensive drill program at Ryan Lode.

Feedstock for Fort Knox possibility

In 2003, Fort Knox will churn through 17.7 million tons of ore to generate about 407,000 ounces of gold, Alaska’s largest gold producer. Exploration at Ryan Lode will help the company determine whether it could possibly provide additional feedstock for Fort Knox in the future.

Exploration plans at Ryan Lode include up to 68 drill holes, with a maximum depth of 300 feet, involving both core and reverse-circulation rigs. Access will be from existing roads and trails on the property.

Fairbanks Gold asked for approval to explore through the end of the year, although the actual time when equipment will be on-site is significantly less, Martellaro said.

“They wanted to leave the option open. Their goal is to be done drilling before the winter months,” he said. “They want to drill half of it, look at the results and then drill other holes, so there could be a gap in the program.”

Permit allows no drilling at night, or Sundays

Martellaro noted that by limiting hours, drilling might be extended, as drill crews typically operate long hours when equipment is on-site. Typically, state regulators do not set hours that exploration drill crews can work.

In addition, Fairbanks Gold agreed to work to control dust on local roads, watering them if necessary, Martellaro said.

The company will plug all drill holes from top to bottom, although state regulations require only the top 10 feet to be plugged. “It prevents surface penetration to the groundwater,” Martellaro said.

In addition, Alaska Department of Environmental Conservation requested samples from water monitoring wells, both before and after the drilling, as part of that department’s ongoing reclamation monitoring program.

Public comment process a concern

In a spreadsheet detailing concerns, some people said they were opposed to mining in the area. Martellaro noted in his letter that the exploration proposal does not include mining. “If a mine is proposed at some future date, DMLW will conduct all required and appropriate public notice and procedures,” he wrote.

In addition, three people submitted written comments supporting the exploration program, but noted DNR was soliciting comments when no regulatory or statutory requirements required that additional step.

“They were concerned that DNR is setting a potential precedent for everyone who wants to go drill — that they will have to go through this (public comment) process,” Martellaro said.