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Critical road to Valhalla's Sun and beyond

North of 60 Mining News – November 11, 2022

As Alaska-based company preps for 2023, Alaska Delegation calls for swift Ambler Road resolution.

After spending this summer preparing for its initial drill program at the Sun copper-zinc-silver-gold project in Northwest Alaska, Valhalla Metals Inc. commends the Alaska Delegation's support for the proposed Ambler Road that would run right by this potential domestic source of green energy metals that lies along the route to the Arctic Mine project to the west.

According to a 2018 calculation, the Sun deposit hosts 1.71 million metric tons of indicated resource averaging 4.32% (163 million pounds) zinc, 1.48% (55.8 million lb) copper, 1.11% (42 million lb) lead, 60 grams per metric ton (3.3 million oz) silver, and 0.21 g/t (12,000 oz) gold; plus 9.02 million metric tons of inferred resource averaging 4.18% (831.3 million lb) zinc, 1.21% (239.6 million lb) copper, 1.46% (290.3 million lb) lead, 81.7 g/t (22.7 million oz) silver, and 0.25 g/t (73,000 oz) gold.

Previously completed geophysical surveys and exploration indicates that this already large deposit continues to dip to the southeast.

A new Alaska-focused mineral exploration company, Valhalla closed a C$10.2 million financing earlier this year that provides the funds needed to explore the resource expansion potential at Sun.

A 2022 work program that was completed in September consisted of fixing snow-damaged tents at the 24-man Sun camp, clearing areas for new tents, and completing an inventory of work required to make the camp fully operational for the 2023 exploration program.

The full camp re-build and expansion is planned to be completed by June in anticipation of supporting a 5,000-meter drill program designed to confirm and expand on known VMS copper-zinc-lead-gold-silver resources at the Sun and SW Sun zones, as well as test several other newly identified high-quality targets.

"We are very pleased with the progress made at the Sun Project camp this fall and are looking forward to finish the camp re-build and get exploration underway," said Valhalla Metals Chairman Rick Van Nieuwenhuyse.

Alaska Delegation road support

Valhalla also welcomes bipartisan support from Alaska's Washington delegation for the proposed 211-mile road that would connect the Ambler District to Alaska's highway system.

The need for access to the Ambler District has been recognized by U.S. policymakers for more than 40 years. This is why Congress included special provisions in the 1980 Alaska National Interest Lands Conservation Act (ANILCA) meant to guarantee a transportation corridor to this metals-rich region of Northwest Alaska would be approved.

Section 201 (4) of ANILCA reads, "Congress finds that there is a need for access for surface transportation purposes across the Western (Kobuk River) unit of the Gates of the Arctic National Preserve (from the Ambler Mining District to the Alaska Pipeline Haul Road) and the Secretary shall permit such access in accordance with the provisions of this subsection."

Despite this Congress-mandated guarantee of expedited access, the U.S. Bureau of Land Management earlier this year suspended a previously issued 50-year right-of-way that covers 25 miles of the proposed 211-mile road connecting the Ambler District to Alaska's highway system.

In a joint letter to Secretary of Interior Deb Haaland, Sens. Lisa Murkowski and Dan Sullivan said the remand of permits to build the road jeopardizes U.S. economic and national security by prolonging the nation's reliance on foreign adversaries for metals found in the Ambler District.

"In Alaska alone, the Project has the potential to facilitate over 8,700 direct, indirect, and induced construction and operation jobs and nearly $700 million in annual wages," they penned in the Sept. 15 letter. "That would be top of an annual average of 360 direct jobs over the road's construction period, and up to 81 direct annual jobs for road operations and maintenance over the life of the road."

Congresswoman Mary Peltola, who was elected to replace the late Don Young in a special election and was reaffirmed as Alaska's at large representative in the House, says the road is the only missing link to a project that has broad support, including among Alaska Native organizations.

"The mineral resources in the area, including copper, are of critical importance to the country," she inked in a Sept. 29 letter in support of the Ambler Road. "The minerals are there; the state and private interests in exploring and developing those resources are in place; the support of Alaska Native corporation and tribes is strong. What is missing is access, which the Project would provide."

Critical mineral access

Valhalla's Sun project, which lies on state mining claims along the route of the proposed Ambler Road, offers a host of metals critical to the transition to electric vehicles and green energy.

So far, 295.4 million lb of copper, 26 million oz of silver, 994.3 million lb of zinc, and 85,000 oz of gold have been identified in the combined indicated and inferred resource categories at Sun.

The drilling Valhalla plans to carry out next summer will test targets with the potential to add to the quantity of these metals that are in high demand for EVs, solar panels, and wind energy.

The ability to realize this potential domestic source of critical and precious metals will require a road to transport concentrates to market.

"The Ambler Road will enable the development of these critical and strategic mineral resources and was written into law by Congress and signed by President Carter in 1980 to provide access to the Ambler Mining District," said Van Nieuwenhuyse. "Developing this infrastructure will provide important opportunities to the local communities and greatly help produce a domestic supply of critical metals needed for the green energy and transportation transition – objectives set forth by President Biden earlier this year through the Defense Production Act and the Inflation Reduction Act."

Author Bio

Shane Lasley, Publisher

Author photo

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

 

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