Alaska mining news summary: As the season reaches its peak and with metals prices on a slow rise, some properties show promise of turning into Alaska's next operating mine

The Bureau of Labor Statistics indicates that mining is one of the nation's safest occupations with a lower rate of illness and injury per 100 employees, 4.7, than manufacturing, 9, and construction, 8.3, and grocery stores, 8, hotels, 6.9, and retail sales, 5.9

As is usually the case, the Alaska summer season reached its peak in activity in August. As is always the case, some properties show promise of turning into Alaska's next operating mine while others have their names quietly scribed on the scroll of the dead.

Several properties have been acquired by new operators and additional acquisition agreements are likely to be announced over the coming month. With metals prices on a slow rise across the board, major and junior mining companies already are looking to next year for expanded budgets and work programs on precious, base and platinum group metal properties in Alaska.

Western Alaska

NovaGold Resources reported the first drilling results from its Far East zone at its Donlin Creek deposit in southwestern Alaska.

Results include DC02-786 which returned 12.2 meters grading 7.84 grams of gold per tonne.

Mineralization is hosted in near-surface intrusives similar to those hosting the bulk of mineralization at Donlin Creek.

The company also reported a discovery at the Aurora zone, a new intrusive-hosted target located one kilometer west of the ACMA deposit.

Results include six meters grading 5.45 grams of gold per tonne in hole DC02-730, eight meters grading 4.56 grams of gold per tonne in hole DC02-732 and 31.5 meters grading 5.21 grams of gold per tonne in hole DC02-744.

Follow-up core drilling is planned for both the Far East and Aurora zones.

NovaGold Resources and joint venture partner TNR Resources said that exploration had begun on the Rock Creek gold property near Nome. The planned $1 million exploration program is focused on defining higher-grade portions of the existing Rock Creek deposit where measured and indicated resources stand at 555,000 ounces grading 2.74 grams of gold per tonne and inferred resources stand at 303,000 ounces grading 2.78 grams of gold per tonne. Three-dimensional geologic modeling is in progress and additional trenching and drilling are planned.

Rio Fortuna Exploration said initial drilling on its Divide gold project in the Nome District began Aug. 12. The company plans to drill 16 diamond core holes from eight drill pads to test stratigraphically controlled mineralization along a graphitic schist horizon within an area measuring 1,500 meters by 1,000 meters. Assay results are pending. The company also announced that initial exploration on its Full Auto prospect, also in the Nome District, had been completed. A total of 560 stream sediment, soil and rock samples were collected from the area. Assay results are pending.

Mespelt and Almasy Mining Co. said it has signed an option agreement with Mystery Creek Resources Ltd. on the former's Nixon Fork gold-copper property near McGrath. Mystery Creek plans to become a public company this fall and conduct work on the former producing gold-copper mine which last operated in 1999.

Eastern Interior

Kinross Gold reports several operational changes at its Fort Knox-True North operations. The company announced construction of a new thickener tank to allow a 25 percent reduction in cyanide consumption and attendant reduction in cyanide detoxification costs. Kinross Gold also is proceeding with upgrading of its truck haulage fleet to allow increased delivery of True North ore to the Fort Knox mill. The $2 million makeover will see truck haulage size increased to 80 tons per unit from the current 60 tons. The fleet is designed to haul approximately 9,600 tons per day of ore from True North to Fort Knox.

The company also said it was conducting significant reclamation at its Ryan Lode gold property on the western end of the Fairbanks district. The company has spent about $800,000 in reclamation on the project since 1999 where the district's first heap leach operations were conducted in the mid-1980s. Kinross Gold indicated it had no plans for additional exploration at Ryan Lode.

International Freegold Mineral Development said it has acquired the Rob gold project in the Goodpaster Mining District.

The property is about 20 miles southeast of the 5.6 million ounce Pogo gold deposit under development by Teck Cominco and Sumitomo.

Geochemical samples collected at Rob between 1995 and 1999 indicate four high priority exploration areas on the property, the Gray Lead, Blue Lead, Michigan and Wolverine areas.

Results include surface grab samples up to 5.43 ounces per ton gold and drill intercepts up to 13.5 feet grading 1.01 ounces per ton gold from the Gray Lead prospect, surface grab samples up to 28.9 ounces per ton gold from the Michigan prospect, surface grab samples up to 27.8 ounces per ton gold and drill intercepts up to 77.4 feet grading 0.04 ounces per ton gold from the Blue Lead prospect and surface grab samples up to 2.25 ounces per ton gold from the Wolverine prospect.

The company initiated reconnaissance work on the project beginning in early August in order to prioritize targets for additional drilling and/or trenching.

Northern Alaska

Silverado Gold Mines reports it has raised sufficient capital to reopen its Nolan Creek placer gold mine in the southern Brooks Range. The company said annualized sales from the project are estimated at $7.5 million versus annual operating costs of $2.25 million.

Southeast Alaska

Quaterra Resources said that airborne electromagnetic and magnetic surveys completed over its Duke Island copper-nickel-platinum group element project identified a number of high priority anomalies over a 10 by 12 mile area. The 891 line-kilometer survey identified 311 high priority electromagnetic anomalies, including a 2.5 kilometer long zone adjacent to the Marquis zone where massive sulfide mineralization was discovered in 2001. This anomaly is outside areas previously sampled and drilled. Additional fieldwork is planned for this year to field check and prioritize geophysical anomalies in preparation for additional ground geophysics and/or drilling.

Other

Mine accidents have been in the news in the United States and elsewhere lately, but Bureau of Labor Statistics indicates that mining is one of the nation's safest occupations. Mining has a lower rate of illness and injury per 100 employees (4.7) than manufacturing (9.0), construction (8.3), grocery stores (8.0), agriculture (7.6), health services (7.4), public transportation (6.9), hotels (6.9) and retail sales (5.9). In short you are safer in a mine than you are working at your local espresso stand!

The Red Dog mine reports production of its 10 millionth ton of concentrate. Congratulations to Teck-Cominco and it s partner, NANA!