Alaska mining projects took hit in 2012

As the first cooler days and termination dust start appearing across Alaska, seasonal exploration activities are winding down and operating mines are preparing for another winter. To be sure, less money was spent on fewer projects by the mineral industry exploring and developing Alaska's mineral resources in 2012 versus 2011. More advanced-stage projects that added ounces or pounds to their resource base had a better go of it than early-stage exploration projects which have taken a hard right cross to the jaw! Numerous projects with significant proposed budgets early in 2012 either curtailed those budgets sharply or eliminated them altogether.

Down maybe but not out, this industry is fueled by an irrepressible optimism that we can and do create new wealth from a patch of dirt. While nobody can tell us what the future will bring, this industry is the living embodiment of the old Chinese proverb that says "Those who say it cannot be done should not interrupt those doing it."

Western Alaska

Graphite One Resources Inc. announced additional drill results from its 18-hole, 4,248 meter 2012 drill program at its Graphite Creek graphite prospect on the Seward Peninsula.

Results include hole 12GCH001 which returned 128.0 meters of 3.79 percent, including 47.0 meters of 6.02 percent and 18.0 meters of 6.1 percent graphitic carbon, and hole GCH007 which returned 166.62 meters of 4.01 percent, including 30.62 meters of 7.01 percent and 25.77 meters of 8.14 percent graphitic carbon.

The company also reported that 264 of 506 rock samples collected on the property have returned +1 percent graphitic carbon and 63 of those samples returned +5 percent graphitic carbon.

Graphite One hopes to have an industry-compliant resource estimate completed by early 2013.

Freegold Ventures Ltd. reported results from the 2012 drill program at its Vinasale project near McGrath. A total of 13 holes (3,425 meters) were drilled on geochemical and geophysical targets in the Northeast and the Central zones. Significant results include 33.7 meters grading 1.09 grams-per-metric-ton gold in hole VM1208; 29.3 meters grading 1.63 g/t gold in hole VM1210;, 29.3 meters grading 1.19 g/t gold in hole VM1212; and 85.3 meters grading 1.49 g/t gold in hole VM1213. Mineralization remains open to expansion in both zones.

TNR Gold Corp. announced initial results from a three-hole, 814-meter 2012 drilling program at its Shotgun gold project. Significant results include 242.2 meters grading 1.25 g/t gold in hole SR12-56. This hole suggests the mineralization is southwest dipping and is coincident with a 3-D induced polarization geophysical target previously outlined by the company. Mineralization remains open to expansion as the hole ended in mineralization at 293.2 meters. Additional geophysical surveys were conducted in 2012 and currently are being interpreted. Results from other drill holes are pending.

Northern Dynasty Minerals and partner Anglo American plc, owners of the Pebble copper-gold-molybdenum project, released results of an independent audit of the U.S. Environemtnal Protection Agency's Bristol Bay Watershed assessment.

The well-respected engineering consultant Knight Piesold Consulting provided comments related to the assessment's treatment of the mine scenario, tailings dam failure, earthquake and seismic activity and water management models.

Among other things, Knight Piesold said, "The assessment presents a mine scenario and assumptions that fail to meet the standards for mine development and environmental assessment in the state of Alaska and the United States of America.

The assessment report includes a flawed risk assessment that draws false conclusions based on past examples from other jurisdictions and mining practices that are not permitted in the state of Alaska."

Liberty Star Uranium & Metals Corp. announced completion of 1,696 feet of drilling in one hole at its Big Chuck copper-gold project. Drill core contained sections of re-cemented and pervasively chloritized breccia through the entire depth of the hole. This alteration was associated with disseminated pyrite, and finely disseminated chalcopyrite and lesser molybdenite. Near the bottom of the hole, several tens of feet of fluidized pebble dikes were intersected as were felsic dikes with chalcopyrite and molybdenite. Assay results are pending. Inclement weather forced termination of the program; however the company plans to continue exploration in 2013.

Full Metal Minerals Ltd. and partner Antofagasta Minerals S.A. reported initial drill results from its 2012 core drilling program at the Pyramid copper-gold-molybdenum project on the Alaska Peninsula. Significant 2012 results include 344.0 meters averaging 0.11 percent copper, 0.036 percent molybdenum, and 0.035 g/t gold in hole PY12-018 and 42.0 meters grading 1.01 percent copper, 0.165 g/t gold and 0.009 percent molybdenum in hole PY12-019. Multiple hydrothermal centers have been identified at Pyramid, within an oval-shaped 2,300-meter-by-1,400-meter mapped extent of phyllic and potassic alteration zones. Assay results are pending for at least 10 additional holes completed in 2012.

Interior Alaska

International Tower Hill Mines Ltd. reported drill results for 45 geotechnical and condemnation drill holes at its Livengood project. These holes were drilled in exploration areas with the potential to provide substantial resource growth, including the Scraper Ridge, Money Knob Pit, SW, Gertrude Basin and Moose Gulch/Lucky Creek areas. Four of the areas returned multi-gram gold intervals and are well outside the current deposit resource footprint. Significant results include 2.76 meters grading 2.75 g/t gold in hole MK12-281, 2.01 meters grading 3.47 g/t gold in hole MK12-285, 3.05 meters grading 2.48 g/t gold in hole MK12-288 and 3.81 meters grading 6.91 g/t gold in hole MK12-290.

Alix Resources Corp. reported results from the 2012 exploration program at its Money Rock and West Pogo gold projects, the latter under joint venture with Corvus Gold Inc. The 2012 drilling program consisted of two core drill holes on the West Pogo portion of the project, and two holes at Money Rock for a total of 1,474 meters.

The four inclined holes tested the subsurface expression of a surface rock and soil gold anomaly that extends for over 1,000 meters across both properties.

All holes encountered zones of hydrothermal alteration and sulfide mineralization.

Significant results from the two-hole, 610-meter West Pogo drilling program includes 5.6 meters grading 0.67 g/t gold in hole WP12-01 and 3.2 meters grading 1.10 g/tf gold in hole WP12-02.

Significant results from the two-hole, 864-meter Money Rock drilling include 1.6 meters grading 1.67 g/t gold in hole MR12-01 and 1.5 meters grading 0.53 g/t gold in hole MR12-02.

Gold in both holes occur in quartz-arsenopyrite-pyrite veins associated with broad zones of patchy sericite-dolomite-silica alteration.

Full Metal Zinc outlined its 2012 exploration plans for the Fortymile silver-lead-zinc property. The field program is focused on developing drill targets near the LWM zone using soil sampling, trenching and mapping. Two sub-parallel zones of mineralization have been encountered in drilling within dolomitized marble host rock at LWM, with the primary zone located adjacent to the Ketchumstuck fault zone. The LWM deposit is open along strike to the southeast and down dip.

Alaska Range

Millrock Resources and partner Teck American Inc. reported initial drilling results from its 2012 exploration program at the Estelle project.

Nine core holes (1,379 meters) were completed at the RPM, Oxide and West Wing prospects.

Significant results from the newly discovered RPM prospect include 102.11 meters interval averaging 1.04 g/t gold, including 2.07 g/t gold over 21.94 meters in hole SE12G-008, 1.14 g/t gold over 41.45 meters in hole SE12-004 from the Oxide Ridge prospect and 1.01 g/t gold over 7.01 meters in hole SE12-007 from the newly discovered West Wing prospect.

Mineralization at RPM is hosted in sheeted quartz veins and stockworks exposed at surface.

At the West Wing prospect drilling has defined a zone of strong hydrothermal alteration surrounding a diorite sill.

Surface sampling suggests quartz vein-hosted copper, iron and arsenic sulfide mineralization with gold increases in intensity toward the lower contact of the sill.

Additional follow-up exploration is planned for both of these new discoveries.

Kiska Metals Corp. announced plans for its Whistler project.

No field exploration was reported from the project in 2012 however the company instituted preliminary metallurgical and engineering studies as well as geologic reinterpretation work expected to continue into early 2013.

The engineering studies will focus on the options and designs for potential power and access routes, mine site infrastructure and mining/processing options.

In addition to the work at the Whistler deposit, detailed geological studies continue at the Island Mountain prospect.

The work will help create an improved geological model that will aid in the expansion of the Breccia Zone mineralization and in prioritizing targets at other porphyry centers in the area.

Millrock Resources also announced acquisition of the Stellar copper gold project in the central Alaska Range.

The project covers the old Zackly copper-gold skarn deposit with historical resource of 218,944 ounces of gold and 66.9 million pounds of copper contained in 1,244,000 tons grading 0.176 ounces of gold per ton and 2.69 percent copper.

The company's exploration crews have discovered porphyry copper-style mineralization at surface that has not been drill tested and soil sampling conducted by Millrock has extended anomalous zones substantially.

Skarn mineralization has been traced over a strike length in excess of three kilometers with the resource occurring within a strike length of approximately one kilometer.

The majority of the historical drilling occurred in the main resource area with the remaining trend, including extensive covered areas, seeing only limited drilling.

The company began staking claims in the area in 2010, and since then has collected 388 soil, 199 rock and 99 stream sediment samples that have lead to discovery of four new copper and/or gold prospects.

Of particular note is the Mars prospect, which is hosted in altered diorite intruding volcanic rocks with extensive gossan exposures that locally contain copper mineralization.

Soil sample lines across altered zones consistently returned anomalous values including 950 meters averaging 763 parts-per-million copper and 1.2 kilometers averaging 462 ppm copper.

Northern Alaska

NovaCopper Inc. and NANA Regional Corp. Inc. announced initial resources and drilling results 2012 drilling results from their Upper Kobuk project.

For 2012, the partners put four drills to work on a US$16.5 million, 15-18,000 meter drill program targeting the South Reef, Ruby Creek and Sunshine zones.

The program included drilling and surface exploration of the 18 kilometer long belt of prospective carbonate stratigraphy adjacent to the Bornite deposit.

Surface exploration will include over 60 line-kilometers of wide-spaced dipole/dipole induced polarization and radial line down-hole induced polarization geophysics and 25 line-kilometers of soil sampling.

Significant results from the South Reef zone include 57.4 meters averaging 3.0 percent copper, 142.0 meters averaging 2.4 percent copper and 103.4 meters averaging 2.0 percent copper.

The partners also announced their first industry compliant resources estimates for the Ruby Creek zone.

At a 0.5 percent copper cutoff grade, the Ruby Creek Zone contains indicated Resources of 6.8 million metric tons at 1.19 percent copper or 178.7 million pounds of contained copper.

In addition, at a 0.5 percent copper cutoff grade, the Ruby Creek Zone contains Inferred Resources of 47 million metric tons of 0.84 percent copper or 883.2 million pounds of contained copper.

These resources do not include results from the adjacent but deeper South Reef prospect.

In the Ruby Creek zone, mineralization occurs as two discrete stratabound lenses of Devonian age carbonate rocks containing broad zones of silica-dolomite alteration.

Associated sulfide mineralization includes bornite, chalcopyrite and chalcocite occurring as disseminations and vein stockworks as well as crackle and mosaic breccia fill and locally massive to semi-massive replacement bodies.

The partners hope to release a second resource estimate on the South Reef zone in the first quarter of 2013.

Andover Ventures Inc. reported additional 2012 results from drill holes at its Sun volcanogenic massive sulfide project.

Significant results from the Sun deposit area include hole 12-40 which returned 11.2 meters grading 0.82 percent copper, 1.37 percent lead, 6.21 percent zinc, 70.4 grams per metric ton silver and 0.072 g/t gold , hole 12-33 which returned 7 meters grading 2.31 percent copper, 3.03 percent lead, 8.55 percent zinc, 142.8 g/t silver and 0.509 g/t gold , hole 12-29 which returned 6.2 meters grading 2.73 percent copper, 1.27 percent lead, 6.54 percent zinc, 116.4 g/t silver and 0.396 g/t gold, hole 12-34 which returned 3.6 meters grading 1.02 percent copper, 2.13 percent lead, 6.45 percent zinc, 80.7 g/t silver and 0.206 g/t gold and hole 12-38 which returned 6.2 meters grading 2.73 percent copper, 1.27 percent lead, 6.54 percent zinc, 116.4 g/t silver and 0.396 g/t gold.

Drilling at Sun has intercepted mineralization in multiple lenses over a strike length of +1.5 kilometers and down-dip at least 200-300 meters.

Significant results from the newly discovered Stu prospect include hole STU12-01 which returned 8.1 meters grading 0.49 percent copper, 0.71 percent lead, 2.75 percent zinc, 33.5 g/t silver and 0.197 g/t gold.

The Stu mineralization appears to be hosted in a different portion of the Ambler Mineral Belt stratigraphy than that hosting the Main Sun and S.W. Sun deposits.

Southeast Alaska

Grande Portage Resources Ltd. reported initial 2012 results from its Herbert Glacier gold project near Juneau.

Significant drilling results include hole DDH 311A which returned 8.08 meters grading 55.53 g/t gold including 3.58 meters grading 108.86 g/t gold, hole 12E-1 which returned 2.47 meters averaging 17.79 g/t gold, hole 12G-3 which returned 2.05 meters averaging 15.57 g/t gold, 12G-5 which returned 3.55 meters averaging 20.29 g/t gold, and hole 309B which returned 2.60 meters averaging 11.33 g/t gold.

The drilling was concentrated on the Deep Trench vein which occupies an east-west striking, steeply north dipping shear zone.

Drilling has intersected the mineralized vein over a strike length of 370 meters and to a depth of over 200 meters.

The vein can be traced at surface over a strike length of 1,000 meters.

The company reported that 36 holes totaling 4,900 meters had been completed along the western part of the Deep Trench vein.

Drilling with two rigs will continue focusing on the Deep Trench, Main and Goat veins.

Arrowstar Resources Ltd. announced preliminary results of a ground magnetics program on its Snettisham iron ore prospect south of Juneau. The 35 line-kilometer magnetics survey identified three magnetic high areas over a one kilometer distance with the largest area measuring 750 meters by 750 meters. The company plans to drill at least five holes on this target in 2012 with additional holes to check the results of the previous 49 holes drilled on the property.

Author Bio

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).

• Email: [email protected]
• Phone: 907-457-5159
• Contact Curt Freeman