Second platinum explorer at Goodnews Bay

Hanson Industries Inc., the Spokane, Wash.-based development company, has asked the State of Alaska for permission to explore areas of the historic Goodnews Bay Platinum Mine, which it has owned since 1980.

The move comes in the wake of rapidly soaring prices for the rare metal, and coincides with an exploration program being undertaken in the same mining district by Pacific North West Capital Corp.

Pacific North West, a Vancouver, B.C. junior mining company, announced in April that it had acquired an option from Calista Corp. for 100 percent working interest in the Alaska Native regional corporation's Goodnews Bay platinum project for $1.95 million and various other financial considerations and work commitments.

Goodnews Bay is on the west coast of Alaska, south of Kuskokwim Bay on the Bering Sea, about 550 air miles south-southwest of Anchorage.

Platinum, which is 35 times more rare than gold, was first discovered in the Goodnews Bay district in 1926 and since has been mined off and on. More than 600,000 troy ounces of platinum have been extracted in previous placer operations in the streams draining the project area, the company said.

Platinum prices recently have risen dramatically, especially during the past year. In 1999, the precious metal traded for about $360 per troy ounce, which is about 31.2 grams. The price since has more than tripled to $1,158 per troy ounce June 15. It hit a record high of $1,340 per troy ounce in May.

Hanson owns all of the placer holdings in the Salmon River Valley and tributaries, while surface mineral rights on both Susie and Red mountains belong to Calista.

Alluvial placer dredge would be used

In its proposal, Hanson is seeking permission to use an alluvial placer dredge commissioned for Goodnews Bay Platinum Mine in 1937. Dredging and exploration activities continued until 1976. Hanson acquired the historic mine in 1980, and said it has since determined that substantial platinum metals can be extracted from previously mined and unmined areas within the claim block.

In 1987 Ashton Mining Inc. leased the land from Hanson and conducted platinum exploration for both placer and lode potential. In 1988 Ashton conducted soil sampling and magnetometer work on both Susie Mountain and Red Mountain and also diamond-drilled more than 9,000 feet in various areas of Red Mountain.

Hanson proposes to use reverse circulation drills within unmined portions of the claim block and in-cable-tool penetrations in previously mined areas of the claim block. The company said it will drill up to 100 exploratory holes or dig trenches in the Ethel fraction and Platinum Creek sections of the property. Estimated trench size will be six feet wide, 30 feet long and 35 feet deep or to bedrock.

The proposal, according to a public notice issued May 10 by the Alaska Department of Natural Resources, must undergo a 50-day coastal consistency review under rules of the Alaska Coastal Management Program.

Fish passage must be maintained

Hanson's 2006 mining plan calls for using the placer dredge to follow its claims and advance toward the south. Additionally, the company proposes to process ore using a dry land plant consisting of three 4-feet-by-40-feet sluice boxes, a 6-feet-by-16-feet vibrating screen and belt-feeder that may be modified and fed by a track hoe or a loader. The plan also calls for diverting Platinum Creek to the south. Hanson said it would disturb no more than 16 acres, or 800,000 cubic yards, of surface area.

Alaska officials said an essential component of the development is that a fish passage be maintained in the natural Salmon River channel within previously mined areas of the site. Hanson has been working closely with the Alaska Department of Fish & Game to ensure that adequate stream flow is maintained through existing tailings for continued improvement of fish habitat in the river.

Hanson also proposes to use much of the original mine's infrastructure, including 12 of the 23 buildings on site.

The Goodnews Bay district is located near year-round ice-free tidewater and the village of Platinum, which has a public airstrip.

DNR said it would issue a final determination of the ACMP review by June 28.

Pacific North West focusing on lode source

Meanwhile, Pacific North West is focusing exploration efforts on the lode source of the alluvial platinum mineralization. Pacific North West said the objective of its initial exploration this summer is to evaluate current drill targets in order to prioritize a proposed drill program. Work will include field mapping, checking previous soil samples, intensively the Susie Mountain complex and establishing a base camp.

Previous work included several methods of airborne and ground geophysics, geologic mapping and rock and soil sampling which have delineated a number of exploration targets. Zones of anomalous platinum (up to 1.3 grams of platinum per tonne) were delineated at Susie Mountain by soil sampling and are coincident with magnetic highs and resistivity lows detected by geophysical surveys. Geophysical surveys also delineated deep electromagnetic anomalies at Red Mountain where up to 3.3 grams of platinum per tonne were detected in soils.