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

Mineral consulting group Behre Dolbear Group Inc. released its 2013 "Ranking of Countries For Mining Investment Where Not to Invest." Since 1999 the group has compiled annual political risk assessments from key players in the global mining industry.

Geology and mineral potential are not considered in this survey, since such potential is inherently indicated by the fact that mineral exploration, development, and mining activity are occurring in these countries.

The only factors considered relevant are those pertaining to "political risk." Seven risk factors were considered, ranging from a country's political and economic system to corruption, monetary stability, bureaucratic inefficiencies and social issues.

Out of 25 countries considered, the United States came in at No. 6, behind Australia, Canada, Chile, Brazil and Mexico.

Could be better but not bad.

However, in the sub-category relating to countries with the most permitting delays, the Unites States was tied for dead last with Papua New Guinea! Pretty sad.

On an unrelated subject, the report also pointed out that increased commodities prices have allowed previously defined but sub-economic projects to be resurrected, gussied up and trotted out as new projects.

Some of these projects are not what they seem.

Behre Dolbear put it rather well: "The higher commodity prices have resulted in that old dog of a project (let's call it Fido) to re-emerge under a new name with new sponsorship - (now Phydeaux).

It's still a dog, but a higher-class dog.

Caveat emptor!"

Western Alaska

Fire River Gold provided an update of activities over the last three months at it Nixon Fork mine near McGrath.

To date in 2013 the mine has completed 3,339 meters of underground exploration drilling and 3,507 meters of underground definition drilling at the Crystal and Garnet areas of the mine.

Drifting on the 385/J5A drift continues with the drift expected to be completed in the J5A ore body shortly.

During February the mine processed 4,784 tons of ore grading 0.474 ounces of gold per ton and recovered 1,677 oz (74 percent recovery).

In March the mine processed 3,467 tons of ore grading 0.420 ounces of gold per ton and recovered 1,153 oz (79.1 percent recovery).

Although progress at the mine has been made toward reaching commecial production, the pace of the progress has been insufficient to reach productions levels necessary to achieve commercial production in the first quarter of 2013.

In particular, the company's milling throughput for February and March was been negatively impacted by continued inclement weather, logistical challenges relating to air deliveries of key production supplies and fuel, and unscheduled downtime for equipment repair of the Larox filter, secondary cone crusher and ball mill motor.

Because of these cash flow issues and the company's increasing dependence on creditors, the board of directors has decided to explore all strategic options.

Novagold Resources Inc. reported results for its first quarter ended Feb. 28, and gave an update on the permitting process for its Donlin gold project.

During the quarter, the company has transitioned from the public scoping period into the preliminary draft environmental impact statement phase of permitting at the project.

Important meetings were held in 13 villages and in Anchorage and public feedback was generally positive.

Permitting efforts are expected to require 3-4 years to complete.

Throughout the balance of the year, the company anticipates that the U.S. Army Corps of Engineers, the lead permitting agency for the project, will draft the PDEIS, receive comments from the Federal and State agencies on the PDEIS in preparation for issuance of the Environmental Impact Statement in 2014.

In addition, the company will continue to optimize the project and evaluate third-party owner-operator agreements to reduce the up-front project capital costs.

Graphite One Resources Inc. said it has commissioned JDS Energy and Mining Inc. to complete ongoing high-level engineering and logistics studies pursuant to the completion of a preliminary economic assessment at its Graphite Creek graphite project north of Nome. Current resources at the project consist of inferred resource of 164.5 million metric tons grading 4.61 percent graphite.

Linux Gold Corp. announced that it has signed a teaming agreement with Kenn Roberts to produce gold at its Dime Creek placer gold and platinum project in the Koyuk District on the eastern Seward Peninsula. Following capital investments by Linux of US$32,000, production revenue will be shared on a graduated basis until Linux receives payback and then the partners will split revenue evenly. The company also indicated that it plans to conduct lode and placer exploration drilling on the project.

Northern Dynasty Minerals Ltd. announced that the Pebble Limited Partnership has approved a budget of about US$80 million to advance the Pebble project in 2013, with the goal of initiating permitting under the National Environmental Policy Act before the end of the year.

Since the Pebble Partnership was established in July 2007, a subsidiary of Anglo American plc has invested about US$500 million to advance engineering, environmental and socioeconomic studies.

When added to Northern Dynasty's initial US$180 million contribution, investments in the project total US$680 million.

This year the budgeted US$80 million expenditures will include: engineering studies to complete a project description and advance a prefeasibility study; continued environmental monitoring studies in key areas including groundwater hydrology, water quality and fisheries resources; site investigations, including exploration, geotechnical and metallurgical drilling, as well as geo-hydrological testing; and stakeholder engagement and public affairs programming, workforce and business development initiatives, public education and community investment.

Interior Alaska

Endurance Gold Corp. announced that Liberty Gold Corp. has completed a US$20,000 option payment and will continue with their option on the McCord Creek gold project near Livengood.

As part of the 2013 program, 16 additional State of Alaska mining claims were recently staked and recorded, which increases the size of the property to 49 claims (7,820 acres).

To date, 439 soil samples and 73 rock samples have been collected from the property.

The 2011 and 2012 programs identified seven multi-element soil anomalies, associated with multiple anomalous gold values (>100 parts per billion gold).

The two largest multi-element soil anomalies are about 1,500 meters by 400 meters, and 1,100 meters by 500 meters in size.

Planning is in progress for the 2013 exploration program.

100 parts per billion gold). The two largest multi-element soil anomalies are about 1,500 meters by 400 meters, and 1,100 meters by 500 meters in size. Planning is in progress for the 2013 exploration program.

Alaska Range

Pure Nickel Inc. said its joint venture partner on the MAN Alaska project, ITOCHU Corp., has confirmed funding of about US$3.5 million for the 2013 exploration season.

ITOCHU has earned a 30 percent ownership interest in the project and has funded some US$21 million worth of exploration work since 2008.

Exploration activity in 2013 will consist primarily of a drill program targeting the western part of the Alpha complex, where drilling in 2010 and 2012 intersected anomalous nickel-copper-platinum group element mineralization.

The 2013 budget calls for a 2,200-meter drill program utilizing one helicopter supported drill rig.

The program is expected to commence in the last week of May, and will be completed by mid-August.

Northern Alaska

NovaCopper Inc. announced the results of its first quarter ended Feb. 28, and an update on its Upper Kobuk mineral project in the Ambler Mining District.

The company has approved a budget of US$16 million for its 2013 exploration program at the Arctic and Bornite deposits.

The company plans to carry out additional diamond core drilling focused on the Bornite deposit and complete a preliminary economic assessment study on an open-pit mining scenario at the Arctic deposit during the summer of 2013.

This work includes technical reviews, formal studies and general and administrative costs.

The company also indicated that it was continuing to work with the Alaska Industrial Development and Export Authority and plan to sign a memorandum of understanding during the first half of 2013 as the next step to advancing the road into the Ambler Mining District.

The State of Alaska and AIDEA are working on initiating permitting for the road which is expected to provide access to both the Bornite and Arctic deposits.

Goldrich Mining Co. said it had completed forward gold sales from its Chandalar project of about US$600,000 at a 25 percent discount to market price as calculated on the date of sale. A total of approximately 500 ounces of gold was sold for delivery in November 2014. Goldrich NyacAU Placer LLC, a 50/50 joint-venture company formed by Goldrich and NyacAU LLC plan to commence placer gold production in June of this year. The production goal for 2013 is 8,500 ounces of fine gold and about 10,000 ounces per season thereafter.

Southeast Alaska

Coeur d'Alene Mines posted first quarter 2013 production results from its Kensington gold mine. The mine produced 25,206 ounces of gold at a cash cost of US$900-950 per ounce. The mill processed 129,057 metric tons of ore averaging 0.20 ounces per metric ton gold during the quarter. Mill recoveries came in at 96.2 percent. The mine is expected to produce 108,000 to 114,000 ounces of gold during 2013.

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).

• Email: [email protected]
• Phone: 907-457-5159
• Contact Curt Freeman