Alaska gold could get its turn at bat

Over the past six months, the single-most common question I have gotten asked about Alaska's mineral industry is, "Have there been any significant new discoveries?" While there may be an as-yet unannounced new discovery in Alaska, it seems the above question is being asked more frequently in other parts of the world as well and the most common answer is a simple "no."

While information on new discoveries in other sectors of the mining industry is out there, it's not as well-compiled as Nova Scotia-based Metals Economics Group's recently released study for gold, "Strategies for Gold Reserves Replacement: The Costs of Finding and Acquiring Gold." The report speaks directly to this issue of declining discovery rates and increasing production rates for the gold industry.

The report indicates that for the period 1997-2011, a total of 99 new, +2-million-ounce gold discoveries have been reported, containing an aggregate 743 million ounces of gold.

Ignoring the fact that not all of these new discoveries will be economic to mine or politically capable of being mined, and assuming a 75 percent resource-conversion rate (how many ounces in-ground versus how many ounces actually get mined) and a 90 percent mining recovery rate (how many ounces go into the mill/leach pad versus how many ounces turn into doré), these 99 new discoveries could potentially replace only 56 percent of the estimated gold that was mined during that same period.

Since global gold production is up 17 percent over the past 10 years, where did the rest of the ounces come from? The answer is two-fold: 1) Through brownfields (immediate mine area) exploration at existing mines or older, known deposits; and 2) new acquisitions where the top 26 global gold producers collectively replaced almost 208 percent of the gold they produced.

But only slightly more than half of these producing companies made new discoveries and many of these are in politically unstable parts of the world where there is no certainty that they will ever become producing mines.

In the end, the report concludes that the biggest reserves replacement challenge faced by the industry is not that there is no gold left to find, but that all the easily discovered and mined gold has been found.

While this conclusion is debatable, Alaska's virtually unexplored natural warehouse of precious, base, strategic and energy minerals may at last be competing on a level playing field with the rest of the globe.

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 12GCH005 which returned 172.79 meters grading 5.39 percent graphitic carbon, including 54.87 meters grading 10.03 percent , and 42.0 meters grading 12.01 percent graphitic carbon and hole 12GCH008 which returned 177.0 meters grading 3.0 percent graphitic carbon including 52.0 meters grading 6.02 percent , and 30.59 meters grading 7.07 percent graphitic carbon.

The company also reported that of the 591 rock grab samples collected in 2012, 314 contains greater than 1 percent graphitic carbon and 73 of those contain greater than 5 percent graphitic carbon of which 47 samples contain greater than 10 percent graphitic carbon with a maximum of 80.9 percent graphitic carbon.

Millrock Resources Inc. and funding partner Kinross Gold announced results from its 1,242 meter, nine-hole 2012 core drilling program at the Council gold project west of Nome.

Exploration drilling was conducted at the Elkhorn and Upper Ophir prospects.

A new discovery was made at the Elkhorn prospect where hole COU12-023 cut 7.01 meters averaging 2.58-grams-per-metric-ton gold within a 14.02-meter interval averaging 1.45 g/t gold.

The Elkhorn prospect occurs along a possible northwest-trending fault zone in schist and marble of the Nome Group.

Soil sampling at Elkhorn defined a 7.5-kilometer zone of anomalous gold and arsenic.

The 2012 drilling consisted of seven core holes totaling 942 meters with four of the holes intersecting gold mineralization.

At the Upper Ophir prospect hole COU12-025 intercepted 7.62 meters averaging 1.09 g/t gold.

The Upper Ophir prospect area geology is similar to that at Elkhorn.

A large, strong arsenic anomaly was the focus of the drilling program where two core holes totaling 287 meters were drilled with both encountering encouraging gold mineralization.

Northern Dynasty Minerals and partner Anglo American plc, owners of the Pebble copper-gold-molybdenum project, surpassed a seldom-achieved milestone on Sept. 12, 2012, when the total footage frilled at the project hit the 1-million-foot mark (yes, Dorothy, 1 million)! Contributing to this milestone were 1,065 core holes drilled between 1988 and 2012. Congratulations to all who have contributed to this remarkable accomplishment!

Invenio Resources Corp. announced that it has terminated its options to acquire the Ganes Creek and Candle Hills gold projects in the Ophir District in order to pursue its more advance Gold Springs project in Nevada.

TNR Gold Corp. announced final results from three-hole, 814-meter 2012 drilling program at its Shotgun gold project. Significant results include 209 meters grading 1.02 g/t gold in hole SR12-57 and 83 meters averaging 0.82 grams of gold per in hole SR12-58. All three 2012 drill holes encountered consistent thickness and grade in the southwest zone which remains open to expansion. Geophysical surveys indicate a correlation between resistivity and chargeability results that suggest mineralized zones continue to depth and along strike and are also repeated in a fault-controlled pattern to the northwest and southeast of the mineralization currently defined at the prospect.

Interior Alaska

Freegold Ventures Ltd. reported additional drill results from its Golden Summit project.

The company has completed is 2012 drilling campaign which included 5,203 meters of core drilling at the Cleary Hill prospect and an additional 9,714 meters of core drilling at the adjacent Dolphin deposit.

Significant new results from the Dolphin zone included 290.3 meters grading 0.67 g/t gold in hole GSDL1219, 288.5 meters grading 0.75 g/t gold in hole GSDL1220, 606.2 meters grading 0.57 g/t gold in hole GSDL1224.

At the Cleary Hill zone significant results included 61.4 meters grading 0.67 g/t gold in hole GSCL1216, and 50.3 meters grading 1.46 g/t gold in hole GSCL1221, including a 1.5 meter interval which returned 191 g/t gold.

A revised estimate for the project is expected before year-end.

Teryl Resources Corp. reported completion of its five-hole, 760-meter drilling program at its Westridge project near. Assays are pending.

Miranda Gold Corp. announced that joint venture partner Agnico-Eagle (USA) Ltd. has terminated its exploration agreement on Miranda's Ester Dome project near the Fairbanks. Agnico drill tested large soil anomalies over the last two summers. Miranda subsequently terminated its underlying lease with property owner Range Minerals.

Full Metal Zinc announced that soil and rock assay results have expanded soil anomalies from a surface exploration program at its Fortymile polymetallic project.

The 2012 exploration program included soil sampling (432 soil samples), trenching (27 rock samples).

This program was successful in extending and infilling silver, lead and zinc anomalies at West LWM and at the newly named Marble Nose prospect to the northwest.

Highest samples tend to be in areas of skarn mineralization, and mapping, focused on extending soil-sampling grids and targeting anomalous areas near the high-grade LWM deposit to develop drill targets for the 2013 program.

At WLWM, additional soil sampling was successful in extending a multi-element anomaly (>1 gram per metric ton silver, >100 parts-per-million lead and >300 ppm zinc) 200 meters in both northerly and southerly directions, for a total of 650 meters by 50- 100 meters in width.

At Marble Nose, two distinct 800-meter long soil anomalies (>100 ppm lead and >150 ppm zinc) were identified, associated with two layers of carbonate replacement deposit host marble units.

The easternmost anomaly, associated with the thicker section of marble, is as much as 650 meters in width, averaging 400 meters.

In addition, an area of oxidized sulfides was identified in a previously unsampled area on a ridge west of Marble Nose and north of WLWM. This gossan zone could be found for about 50 meters in length, was 2-3 meters wide, and returned 0.323 ppm gold, 61.6 ppm silver, 1,700 ppm arsenic, 191 ppm copper, 27 ppm molybdenum, 1,750 ppm lead, 887 ppm zinc.

1 gram per metric ton silver, >100 parts-per-million lead and >300 ppm zinc) 200 meters in both northerly and southerly directions, for a total of 650 meters by 50- 100 meters in width.

At Marble Nose, two distinct 800-meter long soil anomalies (>100 ppm lead and >150 ppm zinc) were identified, associated with two layers of carbonate replacement deposit host marble units.

The easternmost anomaly, associated with the thicker section of marble, is as much as 650 meters in width, averaging 400 meters.

In addition, an area of oxidized sulfides was identified in a previously unsampled area on a ridge west of Marble Nose and north of WLWM. This gossan zone could be found for about 50 meters in length, was 2-3 meters wide, and returned 0.323 ppm gold, 61.6 ppm silver, 1,700 ppm arsenic, 191 ppm copper, 27 ppm molybdenum, 1,750 ppm lead, 887 ppm zinc.

100 parts-per-million lead and >300 ppm zinc) 200 meters in both northerly and southerly directions, for a total of 650 meters by 50- 100 meters in width.

At Marble Nose, two distinct 800-meter long soil anomalies (>100 ppm lead and >150 ppm zinc) were identified, associated with two layers of carbonate replacement deposit host marble units.

The easternmost anomaly, associated with the thicker section of marble, is as much as 650 meters in width, averaging 400 meters.

In addition, an area of oxidized sulfides was identified in a previously unsampled area on a ridge west of Marble Nose and north of WLWM. This gossan zone could be found for about 50 meters in length, was 2-3 meters wide, and returned 0.323 ppm gold, 61.6 ppm silver, 1,700 ppm arsenic, 191 ppm copper, 27 ppm molybdenum, 1,750 ppm lead, 887 ppm zinc.

300 ppm zinc) 200 meters in both northerly and southerly directions, for a total of 650 meters by 50- 100 meters in width.

At Marble Nose, two distinct 800-meter long soil anomalies (>100 ppm lead and >150 ppm zinc) were identified, associated with two layers of carbonate replacement deposit host marble units.

The easternmost anomaly, associated with the thicker section of marble, is as much as 650 meters in width, averaging 400 meters.

In addition, an area of oxidized sulfides was identified in a previously unsampled area on a ridge west of Marble Nose and north of WLWM. This gossan zone could be found for about 50 meters in length, was 2-3 meters wide, and returned 0.323 ppm gold, 61.6 ppm silver, 1,700 ppm arsenic, 191 ppm copper, 27 ppm molybdenum, 1,750 ppm lead, 887 ppm zinc.

100 ppm lead and >150 ppm zinc) were identified, associated with two layers of carbonate replacement deposit host marble units. The easternmost anomaly, associated with the thicker section of marble, is as much as 650 meters in width, averaging 400 meters. In addition, an area of oxidized sulfides was identified in a previously unsampled area on a ridge west of Marble Nose and north of WLWM. This gossan zone could be found for about 50 meters in length, was 2-3 meters wide, and returned 0.323 ppm gold, 61.6 ppm silver, 1,700 ppm arsenic, 191 ppm copper, 27 ppm molybdenum, 1,750 ppm lead, 887 ppm zinc.

150 ppm zinc) were identified, associated with two layers of carbonate replacement deposit host marble units. The easternmost anomaly, associated with the thicker section of marble, is as much as 650 meters in width, averaging 400 meters. In addition, an area of oxidized sulfides was identified in a previously unsampled area on a ridge west of Marble Nose and north of WLWM. This gossan zone could be found for about 50 meters in length, was 2-3 meters wide, and returned 0.323 ppm gold, 61.6 ppm silver, 1,700 ppm arsenic, 191 ppm copper, 27 ppm molybdenum, 1,750 ppm lead, 887 ppm zinc.

Alaska Range

Pure Nickel Inc. released its third quarter 2012 operating and financial result, including a summary of activities at its MAN nickel-copper-platinum group element project.

Approximately US$4.1 million has been spent during 2012 on core drilling, soil geochemical surveys, ground-based induced polarization geophysical surveys and geological mapping.

A total of 2,550 soil samples were collected and 47 line kilometers of induced polarization surveys were completed on four grids.

The geophysical surveys were used to follow-up on soil geochemical anomalies to test for the presence of sulfide mineralization.

A number of new sulfide occurrences were identified in the Alpha Complex, two of which were tested by subsequent drilling.

Eight drill holes totaling 2,234 meters were completed and assay results are pending.

Rhyolite Resources Ltd. reported new assays results from 2011 drill holes at its Paxson gold project.

Significant revised results from the Shalosky zone include hole WG11-12 which returned 1.5 g/t gold over 80.5 meters, hole WG11-02 which returned 1.8 g/t gold over 51.1 meters and hole WG11-13 which returned 0.7 g/t gold over 46.8 meters.

The results from the infill sampling suggest that the mineralization in the host schist may have stratigraphic controls as well as structural controls, in that the mineralization is now seen to continue beyond the limit of primary structures.

The company also reported that surface sampling in 2012 identified a new volcanic massive sulfide occurrence located 6 kilometers northeast of the Shalosky gold zone.

This occurrence, known as the HD-North, is exposed in outcrop and appears to be 2 meters thick striking N30E and dipping 45 degrees to the southeast.

A 2-meter by 2-meter chip sample from this zone returned 5.68 percent zinc, 2.80 percent lead, 0.48 percent copper, 65.6 g/t silver and 0.53 g/t gold.

Westmountain Index Advisors Inc. announced completion of 2012 drilling and the production of its first gold from the Terra property, under option from Corvus Gold Inc. Over 20 tons of ore were bulk sampled from the Ben and Fish veins and processed on-site.

The concentrates were shipped to Idaho for assaying and additional metallurgical testing.

On the exploration front, the 2012 drilling program consisted of 3,782 feet in four diamond drill holes designed to expand the gold resource at the project.

Drilling extended the vein system 200 meters north and one hole was drilled at the Fish vein.

The company plans to update its resource estimate using data from these holes.

The company also reported that assay results from soils and rock chip samples from the Camp Creek Midway porphyry target returned results a high of 3.19 g/t gold from soil samples that averaged 401 parts-per-billion gold over 1,500 feet of surface exposure.

Northern Alaska

NovaCopper Inc. and NANA Regional Corp. Inc. announced additional 2012 drilling results from the South Reef zone of their Upper Kobuk project.

Significant results include 50.6 Meters at a grade of 3.41 percent copper in hole RC12-200, 69.6 Meters at a grade of 2.01 percent copper in hole RC12-203, 6.5 Meters at a grade of 4.30 percent copper in hole RC12-199, 22.9 meters at a grade of 2.60 percent copper in hole RC12-205, 12.2 meters at a grade of 4.80 percent copper in hole RC12-206, 11.7 meters at a grade of 5.02 percent copper in hole RC12-207 and 71.2 meters at a grade of 3.66 percent copper in hole RC12-209.

To date the company has completed 15,457 meters of drilling in 22 holes at the South Reef zone.

Drilling at South Reef has outlined a 300-meter by 700-meter northeast trending zone of mineralization that remains open to the north, east and southwest.

An initial industry-compliant resource estimate for the South Reef zone is anticipated in the first quarter of 2013.

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

Over the course of the 2012 program the company completed 20 core holes totaling 4,350 meters on the Sun, SW Sun, Stu, Sal and Picnic Creek prospects.

Significant results from the Sun deposit area include hole 12-41 which returned 10.6 meters grading 1.07 percent copper, 0.49 percent lead, 1.59 percent zinc, 40.7 g/t silver and 0.179 g/t gold and hole 12-42 which returned 2.2 meters grading 1.15 percent copper, 1.63 percent lead, 7.21 percent zinc, 157.6 g/t silver and 0.320 g/t gold.

These holes expand the northeastern end of the Main Sun deposit and extend the drilled resource a full 300 meters down dip and about 50 meters further northeast than previous drilling.

The company also reported one hole from the SW Sun deposit where hole 12-44 extended mineralization 100 feet along strike and returned 2.9 meters grading 2.40 percent copper, 0.07 percent lead, 0.42 percent zinc, 9.8 g/t silver and 0.541 g/t gold.

Mineralization at SW Sun was extended along strike by over 250 meters and down dip to at least 500 meters by the 2012 drilling program and mineralization remains open along strike and at depth.

Results from one hole at the newly discovered SAL prospect were also released.

Hole SAL-12-01 returned 2.7 meters grading 0.69 percent copper, 0.84 percent lead, 2.99 percent zinc, 10.9 g/t silver and 0.126 g/t gold.

Southeast Alaska

Heatherdale Resources Ltd. announced the signing of a memorandum of understanding with the Ketchikan Gateway Borough over preferred infrastructure sites for its Niblack volcanogenic massive sulfide deposit.

The Gravina Island Industrial Complex is the preferred site for mill and tailings facilities for the project.

The understanding allows Niblack LLC to undertake a broad range of investigations to evaluate whether the site is both an acceptable and preferred location for siting such facilities.

The investigations will include environmental, socio-economic, technical, financial, and engineering studies.

Consultation with local residents, land and business owners, and government will also occur.

At the same time the understanding provides for the Ketchikan Gateway Borough to fully investigate issues relating to public safety, environmental protection and responsible resource use before entering into any development agreement with Niblack, and to broadly consult with local communities and other stakeholders before decisions are made.

In an ironic twist, the terminus of the much maligned and never built "Bridge to Nowhere" would have been Gravina Island.

On the exploration front, the company reported that it continued with resource delineation at the project in 2012.

A 15,000-foot surface drilling program began in July and is nearing completion.

Because of the preliminary result of mineralized zones encountered at the Trio deposit, work has been focused in that area.

Assay results are pending.

Grande Portage Resources Ltd. announced additional 2012 results from its Herbert Glacier gold project near Juneau. Significant drilling results include hole DDH 311C on the Deep Trench vein which returned 1.98 meters grading 21.22 g/t gold, hole DDH 311D on the Deep Trench which returned 3.42 meters grading 21.55 g/t gold, hole DDH 12O-1 on the Main Vein which returned 2.84 meters grading 13.85 g/t gold, and hole DDH 326B2 on the Deep Trench which returned 6.14 meters grading 24.37 g/t gold. Results are pending from additional holes completed in 2012.

Pure Nickel Inc. announced that diamond core drilling had begun at its Salt Chuck copper-palladium project near Thorne Bay. The objective of the 2,000 meter drilling program is to determine the source of geochemical and geophysical anomalies previously identified in the area. Salt Chuck is Alaska's only past-producing palladium mine

Ucore Rare Metals Inc. announced that the U.S. Department of Defense asked the company to conduct mineralogical and metallurgical studies on the company's Bokan Mountain rare earth element project.

Under the agreement, Ucore will provide DoD with the most up-to-date data on the project's mineralogy and proprietary bench and pilot scale Solid Phase Extraction nanotechnology research.

The company also announced that it has successfully separated the critical metals: dysprosium, neodymium and erbium from the other rare earth elements in a mixed concentrate.

The separation, done on laboratory-prepared samples designed to simulate ore from Bokan Mountain, will allow the company to pursue this breakthrough at a pilot plant level in conjunction with the company's arrangement with the DoD.

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