Exploration, placer mining activity up

Placer mining and lode exploration activity in Alaska is picking up this year, according to applications filed with the Alaska Department of Natural Resources.

A total of 299 permit applications have been filed with the department's Division of Mining, Land and Water in 2004, an increase of 43 applications compared to the number filed in 2003, according to geologist Brent Martellaro, in the department's Northern Regional office in Fairbanks.

"We're projecting (the number of permits filed) it will be 17 percent higher. We're on target to see about 360 applications by the end of the year," Martellaro told Mining News on June 7.

Placer miners and hard rock exploration companies using heavy-duty equipment must complete an annual placer mining application to receive permission from the state for their activities. Exploration activity that does not use heavy equipment, such as soil sampling, geophysical surveys or even suction dredging, does not require the annual permit.

The one year permit cost is $100, although companies can file multi-year applications for ongoing programs, for up to five years. Multi-year applicants pay a $100 fee the first year, then $50 for each subsequent year.

Many more people mining this year

The recent increase in annual applications doesn't fully reflect the increased activity on Alaska's mineral prospects, Martellaro said.

"Last year, a lot of people were just treading water - continuing to submit their application but not actively mining. This year, there are many more people planning to do some serious mining."

In addition, the increase in applications is accompanied by a number of new operators submitting plans, Martellaro said.

"It's encouraging that things are picking up for some people," he said. "Hopefully gold prices will stay in there."

Placer mining in Alaska has dropped substantially in recent years, mostly due to falling gold prices in the late 1990s and early 2000. In 1993, 196 placer mines and one lode mine produced 191,265 ounces of gold, worth $68 million, according to the 1994 Alaska Mineral Industry report. In 2002, three large hard rock mines and about 50 placer mines produced 562,094 ounces of gold in Alaska, worth $174.3 million.

Claim staking up dramatically

A precursor to exploration and mining activity is claim staking, and the department reported dramatic increases earlier this year, work that began in earnest in 2003 and continued into early 2004.

Hot spots for claim staking included the Pogo area northeast of Delta Junction in Alaska's Interior, the Denali block just north of the Alaska Range near Paxson and the Pebble area, northwest of Iliamna on the Alaska Peninsula in Southcentral Alaska.

Department records indicate those three lode prospecting areas make up 903,240 acres of active claims, equal to 1,411.3 square miles of ground. That's roughly one-third of the total amount of land in Alaska staked for mineral exploration and development.

In 2003, 507 square miles of state and federal land were staked, about double the amount of claim staking in 2002. (See April 18 issue of Mining News.)