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Statewide mining update: Canadian dollars being sucked back into Canadian projects due to new tax incentives, says Alaska geologist Curt Freeman Trend does not bode well for Alaska because in past years three out of four exploration dollars came from Canadian companies
By Curtis J. Freeman, CPG #6901 PNA Contributing Columnist
Although folks are finally out doing things in the Alaska bush, I can hear a definite vacuum sound as Canadian dollars are being sucked back into Canadian projects.
So who cares, you ask?
Over the last several years, three out of every four dollars invested in Alaskan exploration came from Canadian treasuries. As in past years, investment in Alaska by Canadian companies is being negatively affected by the strong U.S. dollar.
But an additional drag on investing in Alaska is the newly instituted tax incentive that encourages investment by Canadians in Canadian mineral prospects.
The tax incentive, called “flow through” tax benefits, allows a plus-100 percent tax benefit to Canadian companies or individuals who invest in Canadian mineral properties.
The question is, why can’t Alaska do something similar? Perhaps a direct rebate for investment in Alaska properties?
The Yukon Territory and Manitoba already have such tax incentive programs and they have proven successful in attracting exploration dollars. Alaska should do the same – invest in its own future.
Meanwhile, the industry soldiers on! Western Alaska Alaska newcomer Chapleau Resources has entered into an agreement with Navigator Exploration Corp. to explore the Kougarok tantalum – tin property on the Seward Peninsula. Chapleau must conduct exploration totaling $1 million by the end of 2003 to earn 50 percent interest in the project and can earn an additional 10 percent by expending $500,000 by the end of 2004.
Chapleau plans to conduct a drilling program on the project this summer.
Welcome to Alaska Chapleau Resources!
NovaGold Resources said it has commenced field work on its Donlin Creek gold deposit in southwestern Alaska.
NovaGold has initiated three dimensional computer modeling of the existing geological and geochemical data with the intent of defining higher grade portions of the deposit.
Confirmation and step-out drilling is planned for July with the target being better definition of structures which control high grade gold mineralization.
How high is high grade you ask? How about 86 feet grading 0.76 ounces of gold per ton?
Data gathered this summer will be incorporated into an independent pre-feasibility study to be conducted in the fall.
NovaGold Resources also announced that it has swapped its 50 percent interest in the Sleitat tin prospect in southwest Alaska to Cominco American in exchange for Cominco’s remaining interest in the nearby Shotgun gold project.
The result will be that NovaGold will own 100 percent interest in Shotgun subject to a 5 percent net profits interests retained by Cominco and Cominco retains 100 percent interest in Sleitat subject to a 5 percent net profits interests retained by NovaGold.
Total gold resources at Shotgun currently stand at approximately 980,000 ounces.
EMEX North Star Exploration said it will be conducting follow-up work on its Dime Creek platinum group element prospects on the Seward Peninsula. Efforts will focus on defining the source of anomalous platinum and palladium detected by previous work.
EMEX North Star also announced that it will be conducting diamond drilling on its Goss Gulch and/or Candle Hills gold prospects near Takotna.
Goss Gulch is located along the prolific Yankee – Ganes Creek fault zone and is associated with gold, antimony and lead anomalies.
Candle Hills contains anomalous gold, arsenic and mercury in intrusive rocks.
Details of the 2001 exploration programs have not been released.
The Tundra Telegraph says that Greatland Exploration has commenced work on its Omalik lead – zinc – silver property on the Seward Peninsula. The property produced about 400 ton of ore grading 10 percent lead and 40 ounces of silver per ton prior to 1900.
Details of the field program are not known. Eastern Interior Western Keltic Mines and Rimfire Minerals said that work has begun on their California and Surf prospects in the Goodpaster District. Plans include expending $600,000 to conduct auger soil sampling, airborne magnetics and radiometrics and diamond drilling.
The airborne geophysical program is slated at 800 line kilometers in size and is designed to provide better drill target definition in both the Boundary and Surf prospects.
The Tundra Telegraph says the companies plan to complete a single drill hole in the Boundary prospect targeted at 2,000 feet depth.
Ventures Resource said it has commenced an $800,000 field program on its Veta and Champion prospects in east-central Alaska.
Initial plans call for follow-up evaluation of multiple gold anomalies discovered at Veta in the 2000 field program.
The company indicated that by early July it will shift its focus to the Lead Creek lead – zinc – silver property north of Chicken. Exact field plans for Lead Creek were not announced.
North Star Exploration continued field work on its Road Metal prospect near Northway. The company has begun diamond drilling one of several targets identified by previous soil sampling and geophysical surveys.
Drilling results have not been released. Additional diamond drilling continues. Alaska Range The Tundra Telegraph reports that Anchorage-based Mines Trust Company is planning to conduct exploration on the Golden Zone gold prospect in the Chulitna District.
The property was mined briefly in the 1940s and currently contains resources of about 13.3 million tons grading 0.095 ounces of gold per ton.
Work plans have not been announced but are expected to consist of a combination of soil sampling, ground geophysics and drilling.
Ahtna Inc. has indicated that it is seeking a partner to advance its Tonsina platinum – palladium prospect near Tonsina.
Sampling conducted in 2000 revealed at least four new areas containing anomalous platinum and palladium values with peak values of over 0.60 ounces of platinum plus palladium per ton.
The property is adjacent to claims owned by Latitude Minerals where elevated platinum and palladium have been detected in similar rock types. Other News For those of you who have not heard, Steve Borell, the executive director of the Alaska Miners Association is back at work full time after suffering a stroke several months ago.
Steve’s recovery amazed his doctors but came as no surprise to those that know him. Steve has but one gear: all-ahead flank!
His stewardship of the association has been exemplary and we are glad to have him back at the helm.
We also are grateful to members like J.P. Tangen, Tom Crafford and Stan Foo who stepped in and steered a steady course while Steve was under the weather.
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