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Gil project advances Interior Alaska project assessment studies and spending added to exploration program for gold deposit near Fort Knox Patricia Jones Petroleum News Contributing Writer
Owners of the Gil deposit in Interior Alaska have bumped up exploration spending, starting environmental baseline and project assessment studies in the final quarter of this year.
Partners Teryl Resources Corp. and Kinross Gold announced plans Nov. 3 to spend a little more than $1 million for the second phase in 2003 of exploration work at Gil, a shallow gold resource six miles east of the Fort Knox gold mine and mill complex.
The companies already spent about $830,000 for the first stage of exploration in 2003, and said at the time that additional work was contingent on successful drilling results. Seven studies planned Now, in addition to reverse circulation and core drilling, the companies are starting several studies needed to advance the property to a development project. While a development decision has not yet been made, initiation of such studies usually accompanies efforts to begin permitting a project.
Additional work budgeted includes a cultural resources survey to determine the presence or absence of historical artifacts in the project area, estimated to cost $81,000. A wetlands’ delineation and threatened and endangered species surveys are estimated to cost $26,000. A detailed digital topography suitable for engineering studies and design will cost an estimated $20,000. Access and haul road design activities and developing construction cost estimates will cost $75,000.
Preliminary hydrologic studies and construction of a piezometer network is estimated at $50,000 and drilling of a production water well to characterize the nature and volume of ground water in the vicinity of the Main Gil deposit will run about $50,000.
In addition, the two companies have estimated their costs at $23,000 for project-related activities that are billed under a state of Alaska reimbursable services agreement. These reimbursable agreements are typically set up to cover state costs for permitting activity.
The total estimated cost of the proposed work program is $1,075,000. Teryl’s 20 percent share of the costs is $215,000, plus management fees.
Kinross holds the remaining 80 percent interest in Gil. Work needed for future development In Teryl’s Nov. 3 press release, the assessment work is described as “essential for the development of the Gil gold deposits.”
“It is expected that successful and timely completion of these activities would allow for the assessment of the economic viability of the Gil Project,” the company said.
Kinross representatives declined to comment on the project, other than to refer to Teryl’s press release.
In the past, Kinross employees have said the company hopes to move the exploration property to a development decision at the end of this year. Kinross is actively looking for new sources of gold mineralization to supplement ore from the Fort Knox mine.
In Kinross’ third quarter report, released Nov. 3, the company said an engineering scoping study was initiated to evaluate the economic merits of the project.
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