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As expected, eastern Interior, Seward Peninsula and southwestern Alaska are mining exploration hot spots this year Geologist Curt Freeman says continued strong gold prices have not yet affected the majors — and probably won’t — but are benefiting smaller companies who are raising money at rates not seen in half a decade Curtis J. Freeman, CPG #6901 PNA Contributing Columnist
Alaska’s seasonal madness began in earnest in May as the snows disappeared and the drills, rock picks and sample bags were put back into use. Drilling programs are sprouting up from Interior to southwest to the Seward Peninsula and several places in between.
The continued strong gold prices have not yet affected the majors and probably won’t until stability is achieved but the stronger gold markets are affecting smaller companies who are raising money at rates not seen in half a decade (since that thing in Indonesia).
As expected, Eastern Interior, Seward Peninsula and southwestern Alaska appear to be the exploration destinations of choice for 2002 but don’t be surprised to see some new areas muscle their way into the limelight. Western Alaska NovaGold Resources has discovered a new zone of gold mineralization at its 23 million ounce Donlin Creek deposit in southwestern Alaska. The company said initial results from the area, called the Akivik Zone, indicate similarities to the multi-million ounce Acma zone approximately 500 meters to the south. Drilling has intercepted mineralized intrusive porphyry dikes and sills. Initial reverse circulation drilling results include DR02-643 which included 6.1 meters grading 3.9 grams of gold per tonne, 6.1 meters grading 2.4 grams of gold per tonne and an additional 32 meters grading 2.1 grams of gold per tonne. The first core hole in this new zone returned 17.9 meters grading 5.6 grams of gold per tonne. Assays are pending on a second mineralized zone in the same hole. The Akivik zone remains open down dip and along strike to the northwest and southeast. Elsewhere on the property, infill diamond drilling in the Acma zone has verified grade and continuity of previous holes. Highlights include: 17.7 meters grading 8.8 grams of gold per tonne in hole DC02-673, 44.9 meters grading 3.7 grams of gold per tonne and 57.9 meters grading 4.9 grams of gold per tonne in hole DC02-675 and 59.3 meters grading 6.9 grams of gold per tonne and 45.7 meters grading 6.0 grams of gold per tonne in hole DC02-677. To date a total of 5,800 meters of core and reverse circulation drilling has been completed in 65 drill holes (41 RC and 24 core holes). Drilling and preliminary feasibility work continued on the project.
Diamond drilling has commenced on Northern Dynasty Minerals’ Pebble copper-gold project near Iliamna. The company said initial drilling will include 22,000 feet of core in approximately 30-40 holes designed to test a series of previously defined geochemical and geophysical targets within a 34 square mile IP chargeability anomaly. A primary focus of this year’s work is delineation of additional higher-grade copper — gold resources similar to one previously outlined within the property which contains estimated resources of 54 million tonnes grading 0.54 percent copper and 0.46 grams of gold per tonne.
NovaGold Resources and TNR Resources plan to conduct a $500,000 exploration program on the Shotgun gold project north of Dillingham. Details of the field program were not released.
Rio Fortuna Exploration is planning to conduct exploration on its Divide gold project in the Nome District. The company said previous work on the project returned promising results from soil surveys and trenching. Details of the field program were not released. Eastern Interior The Tundra Telegraph recently reported that Teck-Cominco and partner Sumitomo Metal Mining are planning to conduct up to 30,000 feet of diamond core drilling on their Pogo gold project in the Goodpaster District. Although details have not been released by the company, the drill contractors and geochemical laboratories are smiling and drilling should begin in mid-June.
Tri-Valley Corp. intends to conduct exploration drilling of lode and placer targets on its Richardson project. The company said total costs are expected to be on the order of $1,250,000 to test one deep placer and two lode targets. Four core holes (2,400 feet) are planned for the Buckeye/Bald Knob anomaly where six previous holes drilled by Placer Dome returned values up to 0.13 ounces of gold per ton from gold-bismuth-tellurium-bearing quartz veins. At the Hilltop zone three holes totaling 750 feet are planned in an area where rock chip channel samples returned values up to 1.9 ounces of gold per ton. In addition, between these two lode prospects in First Chance Creek the company plans to evaluate a previously un-mined deep placer prospect that reportedly contained gravels with up to 0.25 ounces of gold per pan. The test program calls for three drill lines across the creek totaling 108 reverse circulation drill holes totaling 8,500 feet.
North Star Zeus has signed an agreement with AngloGold U.S.A. Exploration Inc. whereby AngloGold can earn a 65 percent interest in the West Pogo project in the Goodpaster District by completing exploration expenditures of $800,000 and making cash payment totaling $170,000 over 6 years. North Star did not release its plans for the current season. Alaska Range Nevada Star Resources shareholders approved the company’s takeover of MAN Resources and with it, control of the 120 square mile Eureka-Tangle Lakes platinum group element prospect in the central Alaska Range. For the 2002 field season, the company said it plans a Phase I exploration program of geological mapping, induced polarization and ground magnetics and geochemical sampling combined with a preliminary drill program. This program is budgeted at $300,000 and will be carried out in July. A major Phase II drill test of targets defined by Phase I is tentatively scheduled for late summer.Southeast Alaska Kennecott (70.3 percent) and Hecla (29.7 percent) said that newly instituted mining methods at the Greens Creek mine (modified long-hole stoping) have increase feed to the mill which processed a record 2,300 tons of ore in a day. Efforts continue to make this production figure an average figure as opposed to a record figure.
Santoy Resources plans to conduct drilling at its Salt Chuck palladium-copper prospect on Prince of Wales Island. The company said its primary target will be the 1.2 kilometer zone between the old Glory Hole and the West Adit. Mineralization in this zone is up to 125 meters wide.
Quaterra Resources recently said that 750 line-kilometers of airborne magnetics and 6-frequency Impulse electromagnetics will be conducted on its Duke Island copper — nickel — platinum group element prospect near Ketchikan. The program is designed to follow up 2001 drilling and sampling results to better define drill targets planned for later in 2002. Other News Rafting records on the Tatshenshini and Alsek Rivers in northwestern British Columbia indicated the year following the decree that created a park and prohibited development of the giant Windy-Craggy copper — nickel deposit, a total of 1,319 visitors made their way down the rivers.
These rafters were one of the primary reasons the park came into being and they were supposed to be the core of a new economic engine that would rival mine development. The number of rafters has now dwindled to a mere 800 per year with an estimated annual impact of only $500,000.
These figures pale in comparison to the $50 million spent on exploration prior to closure and the estimate $400 million in annual revenue that the mine was forecast to generate. You might also ask British Columbia’s cash-strapped government if they could use the estimated $63 million in annual federal and provincial taxes the mine would have produced.
Viceroy Resources has announced that gold production dropped sharply at its Brewery Creek mine in the Yukon which has prompted the company to begin heap leach detoxification and stabilization. These permanent closure steps will be accompanied by pit, dump and road reclamation and revegetation in 2002.
Copper Ridge Explorations announced acquisition of the HEM Breccia iron oxide-copper-gold project on the Dempster Highway north of Dawson. The company plans to conduct exploration on the project in search of Olympic Dam type mineralization. The company can earn a 100 percent interest in the property by completing $600,000 in exploration work and making payments of $95,000 over five years and issuing 200,000 shares. The company plans a program of prospecting and geological mapping, geophysical surveys including magnetometer and gravity and soil geochemical surveys over this largely overburden-covered property.
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