North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Metals high: Gold up 77% from January 2002, silver 94%, platinum 87%, copper 206%, nickel 429%, lead 174%, zinc 141% - exploration and development plans for Alaska focused on all of these metals in projects stretching from the Brooks Range to far southeastern Alaska, from the Alaska-Yukon border to the Seward Peninsula

n a welcome respite from the madness of most of 2005, the last month has seen a slowing of information from companies and individuals exploring and developing Alaska. While development work continues at Pogo and Kensington and permitting and feasibility/preliminary feasibility work continues at Rock Creek, Donlin Creek and Nixon Fork, the exploration industry is busy making plans for 2006.

With a number of metals pushing at all-time or generational price highs, I decided to quantify just how much has changed since the doldrums of 2001-2002 when the industry was on its knees and more than a few pundits were intoning last rights. Between January 2002 and January 2006 gold prices have risen 77 percent, silver 94 percent, platinum 87 percent, copper 206 percent, nickel 429 percent, lead 174 percent, zinc 141 percent, molybdenum 480 percent and uranium 172 percent.

Worldwide demand for each of these metals is outstripping supplies and the under-populated mining industry is finding itself hard-pressed to meet the demand. Exploration and development plans for Alaska that are already known for 2006 will be focused on all of the above-named metals in projects stretching from the Brooks Range to far southeastern Alaska, from the Alaska-Yukon border to the Seward Peninsula. As the old cowboy said, "when the pony runs, you ride."

Western Alaska

Northern Dynasty Minerals Ltd. announced additional high-grade intercepts in the East zone at its Pebble deposit near Iliamna.

Hole 5334 intersected 915 feet grading 1.38 percent copper equivalent consisting of 0.62 percent copper, 1.06 grams gold per tonne and 0.023 percent molybdenum including a 330 foot interval grading 1.82 percent copper equivalent (0.64 percent copper, 1.81 grams gold per tonne and 0.019 percent molybdenum).

Hole 5335 intersected 2,478 feet grading 1.21 percent copper equivalent consisting of 0.81 percent copper, 0.44 grams gold per tonne and 0.023 percent molybdenum.

Hole 5336 intersected 2,584 feet grading 1.13 percent copper equivalent consisting of 0.67 percent copper, 0.23 grams gold per tonne and 0.055 percent molybdenum.

Hole 5337 intersected 2028 feet grading 1.28 percent copper equivalent consisting of 0.83 percent copper, 0.34 grams gold per tonne and 0.041 percent molybdenum.

Mineralization in these holes was intercepted from 1,550 to 1,700 feet below surface and remains open to expansion to the east and at depth. The company indicated that it spent C$44.7 million (US$38.5 million) at Pebble in 2005 and intends to start the 2006 drilling program with four rigs beginning in March.

As a consequence of the significantly higher grades being encountered in the East zone, the company has revised its exploration and development plans to allow for a more complete drilling definition of the East zone. As a consequence, completion of the planned feasibility study and environmental applications has been deferred until the results of the East Zone drilling can be integrated into the overall project planning.

Liberty Star Gold Corp. announced preliminary results from its Big Chunk copper-gold project near Iliamna. Two areas of porphyry copper mineralization were partially tested by drilling (Baltusrol and Point Grey) while a third area will require additional geochemistry and IP geophysics to determine specific drill targets.

One large area of anomalous gold and molybdenum in vegetation requires additional geochemistry, IP and drill testing. Baltusrol is hosted by felsic porphyry intrusives, intrusive breccias and porphyry-style alteration and mineralization that returned 50 feet grading 1033 parts per million copper and 0.0018 ounces of gold per ton.

Mineralization remains open and untested to the northeast, south and at depth. A single drill hole at the Point Grey prospect intercepted 0.0078 ounces of gold per ton over 177 feet including 10 feet of 0.059 ounces of gold per ton. Associated minerals indicate this to be a gold-silver system. Mineralization remains open to expansion.

At the Augusta prospect on the western side of the claim block the company has outlined a 5.7 mile by 2 mile area of anomalous gold and molybdenum in vegetation samples. Additional work is planned for the project.

Alaska Range

Usibelli Coal Mine recently celebrated two milestones for their 63-year old operations near Healy.

The first was the completion of a full year of operations without a lost time accident during 2005. This seminal event is accompanied by a coveted Sentinels of Safety award to be issued by the Mine Safety and Health Administration in conjunction with the National Mining Assoc.

The second milestone was passing 700 days without a lost time accident, a record the company has never exceeded. Hats off to the employees and management for a job more than well done!

Piper Capital announced that it has staked a large land position in the Mount Estelle area of the south-central Alaska Range. The South Estelle prospect is adjacent to Kennecott Exploration's Whistler copper-gold project. The company's interest in the South Estelle project area was the result of anomalous gold values in stream sediment samples reported by the U.S. Geological Survey.

Reconnaissance sampling by the company in September 2005 confirmed mineralization in the previously reported Revelation Vein and identified three new prospects designated Shoeshine, Train and Saddle.

Highlights of grab and chip sampling from this effort include 34.4 grams gold per tonne, 8.1 grams silver per tonne and 0.1 percent copper in a vein on the Revelation prospect that has been traced for over 200 meters on surface; 112.5 grams gold per tonne, 245 grams silver per tonne and 0.13 percent copper in an intrusive-hosted vein on the Shoeshine prospect; 23.8 grams gold per tonne, 91.4 grams silver per tonne and 0.33 percent copper in a sulfide boulder train on the Train prospect; and 7 grams gold per tonne and 1.9 grams silver per tonne in a mineralized dike that has been traced for over 2 kilometers on the Saddle prospect.

Mineralization in the Mount Estelle area is related to late Cretaceous composite alkalic intrusions within the 35 kilometer-long Mount Estelle batholith. These composite bodies are zoned from potassic gabbro and ultramafic rock on their margins to granites in their cores. Platinum group element mineralization often occurs in more mafic and ultramafic rocks while gold-silver occurrences are more typically associated with the central granitic facies.

The company's claims include rocks of both intrusive phases. The company is planning additional work on the project in 2006.

Earlier in the year, Kennecott announced discovery of both low grade and "significant" grade copper-gold mineralization on the adjacent Whistler prospect which now has 12 drill holes into it.

All of the holes intercepted broad intervals of copper and gold mineralization. Additional work is planned for 2006 by Kennecott at Whistler and at one or more of the eight other targets identified in the district.

Author Bio

Curt is President of Avalon Development Corporation, a mineral exploration consulting firm based in Fairbanks, Alaska. He is a U.S. Certified Professional Geologist with the American Institute of Professional Geologists (CPG #6901) and is a licensed geologist in the State of Alaska (Lic. # AA 159).

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• Phone: 907-457-5159
• Contact Curt Freeman