The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Average rate of gold investment around the world nearly doubles in past eight years as demand for metals increases exponentially
Although Alaska's summer field season is quickly coming to an end, the mineral industry continues to gain momentum thanks to rapidly increasing metals prices, fueled in part by growing industrial demand and an astonishing increase in investment demand for metals like gold and silver.
Goldfields Mineral Service reported that for the period 1993 to 2000, world gold investment averaged about 383 metric tons of metal per year, while annual gold investment for the period 2001 through 2008 was running at more than 707 metric tons per year. Most of this investment increase came from Europe and North America, where the world financial crisis was most profoundly felt. Expectations are for more of the same in 2010.
Western Alaska
Kiska Metals Corporation announced that diamond drilling had begun at the Whistler gold-copper project.
The program involves testing five regional targets, including the Lightening, Raintree West, Digger, Island Mountain Breccia and Island Mountain Cirque prospects.
An additional 15 holes are expected to be drilled into regional targets as part of a spring 2010 program and will be targeted on the basis of the current induced polarization geophysical survey as well as geological mapping, geochemistry and previously collected airborne magnetic data.
The company also announced that the planned 340 line-kilometers of induced polarization geophysical survey is progressing with approximately 50 percent of the two-dimensional induced polarization survey completed while approximately 30 percent of the three-dimensional induced polarization survey has been completed.
Mantra Mining announced that it intends to change its name to AsiaBaseMetals Inc. pending stockholder approval.
The company also announced initial drill results from 2,547 meters core drilling at its Colorado Creek project.
The company completed 12 core holes over an area measuring 1.2 kilometers by 0.5 kilometers.
The program was designed to test a multi-kilometer-long area of elevated gold in soil and rock samples.
Mineralization in the three holes where geochemistry has been returned occurs primarily in a rhyodacite quartz porphyry sill which intrudes siltstone, sandstone and andesite.
The sill measures 117.6 meters true thickness in DDH CC09-14.
Significant results include 22 meters grading 1.01 grams per metric ton gold in hole DDH09-012, 23.2 meters grading 0.66 g/t gold in hole DDH09-013, and 24 meters grading 1.15 g/t gold and an additional 2.3 meters grading 7.28 g/t gold in hole DDH09-014.
These three holes test a gold mineralized area of about 150 meters by 470 meters and the mineralized rhyodacite remains open to expansion to the south, southwest and southeast.
Gold mineralization in the rhyodacite porphyry is associated with disseminated and veinlet controlled sulfide mineralization.
Mineralization has also been observed in both the surrounding sedimentary and volcanic rocks in structurally favorable zones.
In addition, drilling further east encountered significant quantities of disseminated sulfide mineralization hosted by altered andesite, diorite, and siltstone proximal to the Cripple granodiorite stock.
Mantra Mining also announced exploration results from its Kugruk project on the Seward Peninsula.
Historic shallow drilling in the 1970s encountered massive magnetite-chalcopyrite in a calc-silicate assemblage along the east margin of the Kugruk granitic intrusive complex where it intrudes Paleozoic metasediments.
A small amount of drill core left on site and assayed by the company returned copper assays as high as 9060 ppm within massive magnetite and calc-silicate rock.
Extensive reconnaissance soil sampling across the 52-kilometer-by-17-kilometer area of the property shows that glacial loess cover masks the bedrock geology and geochemistry at lower elevations, and that only the tops of the low hills in the area produce a reliable bedrock-generated soil geochemical response.
The strongest and most extensive soil copper anomalies occur within the intrusive complex on Kugruk Mountain and in the southern part of the property in the Knowles Creek area.
Exploration activities in 2009 included 16.4 line-kilometers of 100-meter dipole-dipole induced polarization and resistivity, and 11 gravity profiles.
Work focused on three distinct areas including a three-kilometer segment of the northern Kugruk magnetic belt, a three-kilometer nonmagnetic airborne low-resistivity anomaly on the south slope of Kugruk Mountain; and a five-kilometer non-magnetic airborne low resistivity anomaly, coincident with a copper-in-soil anomaly, near Knowles Creek in the southern part of the property.
In all cases, the survey confirmed the low-resistivity response shown in the airborne survey, and showed a coincident and unusually high induced polarization response.
The scale of the geophysical response in all cases was larger than the size of the survey and additional work is planned to determine the ultimate size of the induced polarization anomaly.
In addition, the magnetic high in the northern Kugruk magnetic belt also returned an extremely high gravity response.
Mantra Mining also announced exploration results from its Baird project in the Brooks Range.
Previous work by NovaGold Resources and Mantra Mining included collecting 3,826 soil, rock, talus fine, and stream silt samples and has identified four large copper-zinc mineralized areas ranging up to 10 kilometers in length which contain multi-percent-level copper and zinc mineralization hosted by Paleozoic carbonate.
At Omar, an historic drill program conducted by Bear Creek Mining Co. in the 1960's intersected 6.1 meters of 9.6 percent copper in one hole, and 36.6 meters grading 3.2 percent copper in another hole within a 4.3-kilometer-long area of anomalous copper and zinc.
The Deadfall prospect lies within a 4-kilometer belt of strongly anomalous zinc and lead where channel samples returned 36 meters grading 6 percent zinc and 21.7 g/t silver.
At Frost, a 4.3-kilometer belt of strongly anomalous zinc and copper in soils is coincident with silica-barite rock with strong copper and zinc mineralization occurring in both stratabound and cross cutting structural zones.
The fourth area, Peak, consists of an extensive 10-kilometer-long trend of zinc, lead and barium geochemical anomalies with locally anomalous copper.
This year's limited work program focused on following up geochemical anomalies generated by a 2007 sampling program.
Most work was focused on the Capital Hill area at the southeast end of the 10 kilometer long Peak mineralized trend.
In this area scattered-narrow gossan trains occur in the carbonate for over 1.5 kilometers and include a broad zone of mixed gossan, silica rock, and baritic rock.
A two-meter-wide silica-barite vein in the carbonate returned 5.3 percent zinc.
From broad areas of carbonate sub-crop with widely scattered cobbles and pebbles of gossan float, samples of gossan return as much as 1 percent zinc, 0.5 percent lead, and 500 parts per million.
Additional results are pending.
These exceptionally large metal anomalies are hosted in Paleozoic carbonates, and rhenium-osmium dating of copper mineralization at Omar by the U.S. Geological Survey shows an early Devonian age of mineralization, demonstrating that the Baird occurrences are part of the same regional metallization event that produced the nearby Red Dog zinc deposit, the Ruby Creek copper deposit, and the Ambler copper-zinc deposit.
Victory West Moly Ltd. and XS Platinum Ltd. announced that they have mutually terminated merger discussions announced earlier this year. The latter company owns the Goodnews Bay placer platinum operation in southwest Alaska. The reason for the termination of merger talks was not given.
Liberty Star Uranium and Metals Corp. announced completion of 1,256 line-kilometers of Z-Axis Tipper Electromagnetic (ZTEM) airborne geophysics over its Big Chunk copper-gold-molybdenum project near Iliamna. The survey was conducted on lines spaced 250 meters apart on the southern portion of the project claims. Results of the work are pending.
Eastern Interior
International Tower Hill Mines Ltd. announced that core drilling had begun at its Coffee Dome gold project in the Fairbanks District.
The 1000-meter drilling program on the UAF target will be targeting high-grade, vein-style mineralization similar to that discovered in surface trenches immediately to the south that have returned grades up to 168 grams per metric ton gold.
The UAF target is focused along a projected northwest trending structural zone which appears to be steeply dipping to the south.
The target is a coincident resistivity and high-grade gold in soil anomaly.
The main UAF target as currently defined is 500 meters by 250 meters.
The initial drilling will test the width and depth of the mineralized zone and establish the nature of the structural control on the mineralization.
International Tower Hill Mines Ltd. also released additional results from its Livengood gold project.
Significant results from the Sunshine zone include hole MK-RC-170 with 125 meters grading 0.88 grams per metric ton of gold and an additional 51.8 meters grading 1.11 g/t gold, hole MK-RC-188 with 50.3 meters grading 1.03 g/t gold, hole MK-RC-222 which returned 51.8 meters grading 1.27 g/t gold, hole MK-RC-0224 with 64 meters grading 1.19 g/t gold, hole MK-RC-206 which returned 42.7 meters grading 0.67 g/t gold, hole MK-RC-220 which returned 53.3 meters grading 0.99 g/t gold, hole MK-RC-223 which returned 18.3 meters grading 1.88 g/t gold, hole MK-RC-224 which returned 64 meters grading 1.19 g/t gold and hole MK-RC-229 which returned 32 meters grading 0.96 g/t gold.
The Sunshine zone remains open to expansion at depth and on strike.
Significant results from the Northeast zone include hole MK-RC-202 with 10.7 meters grading 1.20 g/t gold, hole MK-RC-207 with 25.9 meters grading 1.46 g/t gold and an additional 10.7 meters grading 1.01 g/t gold.
Mineralization in the Northeast zone remains open to expansion.
Significant results from the East zone include hole MK-RC-201 with 13.7 meters grading 2.51 g/t gold and an additional 18.3 meters grading 1.49 g/t gold.
The company indicated an updated resource estimate is being prepared for release later in the fourth quarter.
Select Resources announced additional historical data from its Shorty Creek gold project in the Livengood District. Compilation of independent sampling conducted by public agencies with drilling and sampling conducted by various Select and third-party mining interests resulted in identification of at least seven drill targets on the company's land block. Only one of these targets was drilled by Asarco in 1989 and 1990. The company is seeking joint venture partner to further exploration and development of the project.
Full Metal Minerals announced that exploration had commenced at its Fortymile project near Chicken. Field work will consist of geological mapping, soil sampling and rock chip sampling on carbonate replacement, copper-gold skarn and epigenetic gold targets. Pending results, a follow-up program is planned for this fall.
Alaska Range
YOW Capital Corp. announced that it has acquired 618254 Ontario Ltd., which holds an option on the Denali massive sulfide deposit in the Valdez Creek District. YOW also filed articles of amendment to change its name to Caribou Copper Resources Ltd.
Northern Alaska
Goldrich Mining Co. announced the successful commissioning of its gold recovery plant and startup of alluvial gold production at its Chandalar property north of Fairbanks. The plant is processing 500- 700 bank cubic yards per day, and recovering 4-6 ounces of gold per hour. The processing plant recoveries have been in excess of 90 percent. To date, about 300 ounces of placer gold have been recovered. The company expects to continue working into mid-September and then restart operations in the spring.
Silverado Gold Mines Ltd. announced the first results of the 2009 drill program from its Nolan Creek property.
At the Workman's Bench prospect, a total of 2,660 feet of diamond core drilling was completed in nine holes in 2009.
Stibnite-quartz carbonate mineralization was encountered in eight of the nine holes.
Significant results include 2.6 feet grading 0.271 ounces of gold per short ton and 59.29 percent antimony in hole 09SH05 and 2.4 feet grading 0.734 oz/t of gold and 43.31 percent antimony in hole 09SH07.
Assays are pending from all holes drilled in 2009 at Pringle Bench where the company completed 1492 feet of core drilling in seven holes.
All drill holes intercepted stibnite quartz-carbonate mineralization as deep as 210 feet below surface.
Southeast Alaska
Constantine Metal Resources announced initial drill results from three holes of its 2009 drill program on its Palmer copper-zinc-gold-silver volcanogenic massive sulfide project near Haines.
Drill hole CMR09-26 intersected 4.0 meters grading 2.09 percent copper, 9.19 percent zinc, 0.22 grams per metric ton gold and 22.0 g/t silver, within a broader 6.1-meter-wide baritic massive sulfide zone grading 1.53 percent copper, 9.17 percent zinc, 0.18 g/t gold and 18.0 g/t silver.
Mineralization in this hole is located 80 meters down-dip and 40 meters west of 2008 drill hole CMR08-22 and confirms that significant grade-thickness mineralization continues at depth on the South Wall prospect.
Strongly oxidized and leached RW zone mineralization was intersected in the upper portion of hole CMR09-24 which returned 9.14 meters grading 0.23 percent copper, 3.08 percent zinc, 0.49 g/t gold, and 46.8 g/t silver.
This intersection extends the total strike length of thicker RW zone mineralization to 195 meters.
The company also indicated that it is conducting surface and down-hole time-domain electromagnetic geophysics to help identify additional drilling targets on the project.
Ucore Uranium Inc. announced that drilling had begun on its Bokan-Dotson Ridge rare earth element project. The company has approved a $2 million exploration budget for 2009 including a minimum of 2,000 meters of core drilling, ground mapping and surface sampling, a mineral characterization initiative and a low level aeromagnetic survey.
Curt is President of Avalon Development Corporation, a mineral exploration consulting firm based in Fairbanks, Alaska. He is a U.S. Certified Professional Geologist with the American Institute of Professional Geologists (CPG #6901) and is a licensed geologist in the State of Alaska (Lic. # AA 159).
Reader Comments(0)