Dunleavy takes a first-hand look at mine projects at end of a proposed 100-mile road into West Susitna area.

Alaska Gov. Mike Dunleavy and Department of Transportation and Public Facilities Commissioner Ryan Anderson visited the Whistler copper-gold and Estelle gold exploration projects during a recent tour of the western end of the proposed West Susitna Access Road in Southcentral Alaska.

Extending 100 miles northwest from Port McKenzie near Anchorage, the West Susitna Road would provide Alaskans with easier access to 6 million acres of recreation area for hiking, camping, hunting, fishing, and snowmachining. This new addition to Alaska's limited highway network would also provide access to large swaths of state-owned agricultural and mineral projects within the West Susitna region.

A recent economic study carried out by McKinley Research Group found that providing access to this region would create jobs and other opportunities for Alaskans, as well as generate new revenue streams for the state.

"The West Susitna Road is important for local residents and gaining fair access to hunting, fishing, and potential jobs," Dunleavy said earlier this year. "My administration is constantly looking at ways to grow our economy and this project is a great opportunity for not only south-central Alaska but the entire state. I am committed to this project and unlocking resources that benefit all Alaskans."

In July, DOT announced plans to include the first 15 miles of the West Susitna Road and a bridge over the Susitna River in its 2024-2027 transportation improvement program, with funding set aside to begin construction in 2025.

"The newly proposed West Susitna Access project will connect the Matanuska Valley, and all of Alaska, to recreational opportunities along the Susitna River, and to the west," said Anderson.

Road to Whistler, Estelle

When it comes to jobs and the economy, the largest opportunities offered by a road extending beyond the Susitna River are expected to come from mineral projects that would stand a better chance of being developed into mines with year-round access.

The larger West Susitna area is enriched with copper, gold, silver, and other minerals critical to green energy and the economy.

The most advanced mineral projects in this area are Nova Minerals Ltd.'s Estelle gold project near the western terminus of a proposed 70-mile extension of the West Susitna Road and US GoldMining Inc.'s Whistler copper-gold-silver property that borders Estelle.

According to an analysis completed by McKinley Research, the development of either of these projects would create 200 and 500 new direct mining jobs and $24 million to $59 million in annual operating wages. In addition, the Matanuska-Susitna Borough would benefit from significant new infrastructure subject to property tax, and the state would generate new revenues from mining tax and royalties.

It is currently anticipated that the Alaska Industrial Development and Export Authority would extend the road to the Estelle and Whistler projects, and the Mat-Su Borough is looking into federal and state funds to convert 18 miles of partially completed rail embankment into a paved road that would link the east end of the state-built West Susitna Road with the existing Port Mackenzie port.

Together, these projects would provide a link that lowers the cost of mine development and transporting concentrates enriched with metals critical to the low-carbon energy transition.

"The State's and MatSu Borough's investment in the design, permitting and potential build of the proposed transportation corridor represents significant benefits to the State and people of Alaska in providing good jobs and economic opportunities via the future potential development of natural resources in the West Susitna Mining District," said U.S. GoldMining CEO Tim Smith.

Copper- and gold-rich projects

U.S. GoldMining's Whistler project contains deposits enriched with the copper and silver that are in high demand due to their increased use for clean energy, as well as gold.

According to a 2021 calculation, the 53,700-acre Whistler property hosts 118.2 million metric tons of indicated resource averaging 0.16% (422 million pounds) copper, 0.51 grams per metric ton (1.94 million ounces) gold, and 2.19 g/t (8.3 million oz) silver; plus 317 million metric tons of inferred resource averaging 0.1% (711.4 million lb) copper, 0.46 g/t (4.67 million oz) gold, and 1.58 g/t (16.1 million oz) silver.

This resource is based on exploration carried out more than a decade ago.

U.S. GoldMining Inc., which listed on Nasdaq earlier this year with a US$20 million public offering, is looking to upgrade and expand the copper-gold-silver deposits with the idea of eventually building a mine.

The proposed West Susitna Road would connect Whistler to Port MacKenzie, which would offer a means of delivering copper-rich concentrates to global markets.

"Alaska's policy under Governor Dunleavy's administration of investing in critical infrastructure to stimulate growth in Alaska's economy, was an important catalyst for U.S. GoldMining to launch its highly successful IPO in April 2023," said Smith.

The full 100-mile road would also provide access to Estelle, a gold project that does not need to ship concentrates out but would benefit from a year-round and lower-cost means of shipping equipment and supplies in.

According to the most recent calculation, Estelle hosts 1.1 billion metric tons of global resources averaging 0.3 g/t (9.9 million ounces) gold.

Nova Minerals, which is currently focused on expanding higher-grade gold deposits at the southern end of Estelle, welcomed a visit by Alaska's governor.

"We were honored and appreciate Governor Dunleavy taking the time to visit the Estelle Gold Project site this week as we continue our exploration and development activities in pursuit of bringing Estelle into commercial production," said Nova Minerals CEO Christopher Gerteisen.

U.S. GoldMining Inc.

Both Nova Minerals and U.S. GoldMining said they are looking forward to working with the Dunleavy administration, along with local governments and stakeholders, as they advance their mining projects at the end of the proposed West Susitna Road.

Author Bio

Shane Lasley, Publisher

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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