Zinc production is expected to trend downward as ore grades decline over the coming four years.

Teck Resources Ltd. Feb. 21 reported that its Red Dog Mine in Northwest Alaska produced 1.19 billion pounds of zinc in 2023 and forecasts similar output this year. Starting in 2025, however, zinc production from this operation, which accounts for more than 4% of the world's supply of this galvanizing metal, is expected to begin dwindling.

The company attributes the coming decrease in metals output at Red Dog to declining grades at the 35-year-old operation.

Over the final three months of 2023, Red Dog produced 155,300 metric tons (342.4 million lb) of zinc, which is 25% higher than the 124,600 metric tons (274.7 million lb) produced during the previous quarter and 30% higher than the 119,000 metric tons (264.3 million lb) produced during the fourth quarter of 2023.

Likewise, the 25,400 metric tons of lead produced during the final three months of 2023 is 19% higher than the previous quarter and 40% higher than the same period a year ago.

Teck credits the rise in zinc and lead output to an increase in both ore grades and the tonnage fed through the mill during the fourth quarter of 2023.

As a result of the strong fourth quarter, Red Dog produced 539,800 metric tons (1.19 billion lb) of zinc, which accounts for 4.5% of the 12 billion metric tons of zinc mined globally last year and 93.5 million metric tons (206.1 million lb) of lead.

The Northwest Alaska operation also produced an estimated 6.5 million ounces of silver and is a globally significant source of germanium.

Declining output, future reserves

The critical and precious metals output from Red Dog, however, is expected to begin declining next year.

According to guidance put out by Teck, Red Dog is slated to produce between 520,000 and 570,000 metric tons of zinc and 90,000 to 105,000 metric tons of lead this year, which is on par with 2023 output.

Moving forward from there, production is expected to steadily decline. Here is the current metals production guidance out to 2027:

• 460,000 to 510,000 metric tons of zinc and 80,000 to 90,000 metric tons of lead in 2025.

• 410,000 to 460,000 metric tons of zinc and 80,000 to 90,000 metric tons of lead in 2026.

• 365,000 to 400,000 metric tons of zinc and 65,000 to 75,000 metric tons of lead in 2027.

As of the beginning of 2023, Red Dog hosted 38.5 million metric tons of proven and probable reserves averaging 12.4% (4.03 million metric tons) of zinc and 3.6% (670,000 metric tons) of lead.

This is enough ore to keep Red Dog in operation until 2031.

Teck Resources Ltd.

Aktigiruq and Anarraaq, satellite deposits on state land held by Teck, could provide future ore for the Red Dog mill.

Aktigiruq, which lies about nine miles north-northwest of the current Red Dog operation, is one of the largest undeveloped zinc deposits on Earth.

While an industry-compliant resource has yet to be published, Teck has previously reported that Aktigiruq hosts 80 to 150 metric tons of material averaging 16 to 18% combined zinc and lead.

This would be enough ore to feed the Red Dog mill for 25 to 50 years at current production rates.

Anarraaq, which lies just south of Aktigiruq, hosts 19.4 million metric tons of inferred resource averaging 14.4% zinc and 4.2% lead, according to the most recent calculation published by Teck.

In the wider Red Dog district, Teck is also exploring the Lik zinc project under a 50-50 partnership with Solitario Zinc Corp.

Solitario Zinc Corp.

Teck is exploring the Lik zinc project in the Red Dog District under a partnership with Solitario.

Lying about 11 miles northwest of the mill at Red Dog, Lik hosts 17.6 million metric tons of potentially open pit mineable indicated resource averaging 8.1% zinc, 2.7% lead, and 50.1 grams per metric ton silver; plus 2.8 million metric tons of inferred resource at 8.6% zinc, 2.7% lead, and 38.9 g/t silver.

Teck was the operator of a jointly funded 2023 program at Lik that included geophysics and drilling focused primarily on resource expansion targets at the northeast end of the deposit.

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.

• Email: [email protected]
• Phone: (907) 726-1095
• https://www.linkedin.com/in/shane-lasley-ab073b12/