Alaska seeks data-gathering efficiencies

A recent letter distributed to the minerals industry by the Alaska Department of Natural Resources' Division of Geological and Geophysical Surveys and the Department of Commerce, Community and Economic Development's Division of Economic Development is seeking faster and more efficient ways to gather, collate and publish Alaska's Annual Minerals Industry Report. The agencies are looking for feedback regarding what items the industry thinks is important to retain in the report, what items are not in the report that should be included and how the agencies might streamline the process of data gathering from industry participants to ensure that the data published is more timely, more accurate and more economical to prepare and publish.

While some news from the Alaskan mineral industry is available via the Internet and company websites, much is not.

Gathering these data is always a slow and expensive process.

However, five years from now, the Annual Minerals Industry Report for 2012 will still represent a valuable, readily available reference.

That cannot be said of many of the current digital sources containing news of the Alaska mineral industry.

If you have ideas or opinions on this matter, please contact Bob Swenson, Director of the Division of Geological and Geophysical Surveys or Wanetta Ayers, Director of the Division of Economic Development.

Western Alaska

Teck Resource Ltd.'s announced third- quarter 2012 results from its Red Dog mine which turned in operating profits of US$111 million versus an operating profit of US$213 million in the same period in 2011.

For the quarter, the mine generated 128,900 metric tons of zinc and 22,400 tons of lead in concentrate versus 151,100 and 19,400 metric tons of zinc and lead, respectively, in the third quarter of 2011.

The mine sold 141,200 tons of zinc and 46,400 tons of lead during the third quarter.

Average zinc and lead grades mined were 18.1 percent and 4.3 percent, respectively, versus 19.3 percent and 4.8 percent in the third quarter of 2011.

Mill throughput of 880,000 metric tons in the third quarter was well below the 959,000 metric tons milled in the third quarter 2011.

The mine's zinc production declined by 15 percent in the third quarter, compared to the same period a year ago due to lower ore grades and milling rates which were lowered to reduce silica in the zinc concentrate.

A band of extremely fine grained, high silica content ore was encountered, requiring a reduction in mill throughput to achieve acceptable concentrate quality.

Milling rates are expected to return to normal in the fourth quarter.

The 2012 shipping season was completed on Oct. 9 with zinc concentrate shipments totaling 950,000 metric tons and lead concentrate, totaling 175,000 metric tons.

During the third quarter, the mine paid out US$52 million in royalties to its partner, NANA Regional Corp., which 25 percent interest in the project was scheduled to increase to 30 percent in the fourth quarter of 2012.

Graphite One Resources Inc. reported drill results from the past three holes of its 18-hole, 4,248-meter 2012 drill program at its Graphite Creek graphite prospect on the Seward Peninsula.

Results include hole 12GC010, which intersected 216.67 meters of 3.13 percent graphitic carbon including 83.55 meters of 6.03 percent graphitic carbon and 21.55 meters of 11.0 percent graphitic carbon.

The company also reported that surface samples analyzed for graphite flake sizes included high grade rock grab samples averaging 56.9 percent graphitic carbon, mixed grade rock grab samples averaging 14.5 percent graphitic carbon and rock grab samples with disseminated graphite averaging 8.2 percent graphitic carbon.

From these three samples, 84.3 percent; 93.6 percent and 76.5 percent of graphite recovered was classified as large flake graphite (greater than 80 mesh).

Furthermore, the majority of the large flake graphite is greater than 40 mesh (64.8 percent, 65.8 percent and 73.3 percent, respectively) and is considered jumbo flake, some of the highest unit value carbon on the market.

The company intends to calculate the project's first industry-compliant resource estimate shortly.

NovaGold Resources Inc. announce that it has completed the transfer of subsidiary Alaska Gold Company LLC, whose primary asset is the Rock Creek gold project, to Bering Straits Native Corp. for US$6.265 million. The company also announced that the State of Alaska accepted completion of the initial phase of the Rock Creek closure plan and released US$6.8 million of the US$20.3 million financial assurance bond associated with Rock Creek. The balance of the financial assurance has been transferred to Bering Straits Native Corp. which has assumed full responsibility and liability for the remainder of the reclamation activities requested by regulatory authorities at Rock Creek.

Full Metal Minerals Ltd. (49 percent) and partner Antofagasta Minerals Ltd. (51 percent) released final drill results from its Pyramid porphyry copper project on the Alaska Peninsula.

During the 2012 season, 13 core holes were completed, totaling 3,241 meters.

Hole PY12-023 is the westernmost drill hole completed to-date on the property and intersected primarily supergene copper mineralization from 10 meters depth to the end of the hole at 283 meters.

This hole returned 273.0 meters averaging 0.267 percent copper, including 124 meters of 0.371 percent copper.

Additional ground magnetic and geological mapping surveys were completed on the property during 2012.

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.

Interior Alaska

Kinross Gold Corp. announced third-quarter 2012 production results from its Fort Knox mine near Fairbanks.

For the quarter, the mine produced 106,698 ounces of gold versus 76,261 ounces produced in the 3rd quarter of 2011.

Cash costs were US$648 per ounce versus US$712 per ounce in the previous third quarter.

The mine processed 16,111,000 tons of ore grading 0.76 grams per metric ton gold during the third quarter.

Recovery from the mill for the quarter was 84 percent versus 77 percent in the year-previous period.

The mine's strong performance was due to an increase in metric tons of ore mined and processed, as well as higher mill grades, mill recoveries and accelerated heap leach production.

Freegold Ventures Ltd. reported a dramatic resource increase at its Golden Summit project. Using a 0.30 g/t gold cutoff, indicated resources came in at 73,580,000 metric tons grading 0.67 g/t gold (1,576,000 ounces) while inferred resources came in at 223,300,000 metric tons grading 0.62 g/t gold (4,437,000 ounces). These results came from 177 drill holes (35,829 meters) which have now joined the Dolphin and Cleary Hill mine areas into a single resource block. The deposit remains open to expansion and the company intends to continue resource and exploration drilling with two drill rigs starting in January, 2013.

International Tower Hill Gold Mines announced an update of activities at it Livengood gold project.

The company completed its critical path 2012 geotechnical drilling program, totaling 199 holes, 15,731 meters utilizing core, sonic, and auger drilling methods, within budget.

The drilling program evaluated facility sites to obtain the technical information required for use in sub-arctic engineering design.

The pump testing of the large diameter water wells required for hydrogeological modeling was also completed.

Metallurgical test work and engineering studies are on-going to advance the feasibility study, which is on schedule for release in the first half of 2013.

Included in this effort is optimization of project economics, including considering a future strategic alliance to enhance future development and construction economics.

Alaska newcomer Bluestone Resources Inc. announced that they had acquired 100 percent of Tri-Valley Corp.'s interest in the Richardson gold project and Shorty Creek copper-gold project, both in Interior Alaska.

The projects were acquired for $200,000 from Tri-Valley through a Bankruptcy Court approved sale of assets.

Limited drilling conducted at Shorty Creek in 1989-1990 returned 70 meters grading 1.2 g/t gold including 7.6 meters of 4.6 g/t gold in hole RH8909, 16.8 meters grading 1.0 g/t gold in hole RH9019, 7.6 meters grading 1.7 g/t gold in hole RH9017 and 18.3 meters grading 0.8 g/t gold in hole RH9016.

Several areas of the Richardson project have been targeted for drilling based on geological mapping, soil sampling and ground geophysical surveys conducted in 2011.

Welcome to Alaska Bluestone Resources!

Alaska Range

Corvus Gold Inc. announced that follow up mapping and sampling at the Chisna project during the summer of 2012 identified a new porphyry copper system at the West Green target.

Ridge and spur soil sampling conducted in 2011 revealed significant copper, gold, molybdenum and tungsten anomalies in an area immediately north of a major regional shear zone in the Golden Range target area.

Follow-up exploration during 2011 revealed an area of extensive copper staining, high-grade gold, silver, copper and molybdenum mineralization with up to 126 g/t gold, 198 grams-per-metric-ton of silver, 17 percent copper and 0.13 percent molybdenum at the Jolly Green target on the north side of the prominent ridge that runs through the area.

In 2012, the West Green and Jolly Green soil anomalies were followed up with prospecting and mapping.

This work indicates that the mineralization in both areas is related to north-northwest trending structures that terminate in a regional shear to the south.

The high-grade structurally controlled copper mineralization at Jolly Green has now been traced for over 700 meters of strike and is related to the West Green target.

The mineralization at West Green is typical porphyry copper style mineralization with sheeted veins and vein stockworks as well as chalcopyrite veinlets and disseminations in a strongly potassic altered quartz diorite porphyry surrounded by broad propylitic alteration zone.

This newly discovered potassic altered porphyry core is associated with weak magnetite mineralization, which has now highlighted a magnetic anomaly 500 meters west of the currently mapped potassic zone, thus significantly enlarging the target.

After spending US$11 million in exploration on the project, joint venture partner Ocean Park Ventures Corp. has withdrawn from the joint venture and giving Corvus 100 percent interest in the project.

Westmountain Index Advisors Inc. announced final results from its four-hole (3,782 feet) 2012 drilling program at the Terra property, under option from Corvus Gold Inc. The high grade "Ben Vein" zone was intercepted on a 100 meter step-out drill hole to the south of prior drilling, thereby extending the known system to 1,500 meters.

Significant results include 0.62 meters grading 21.55 g/t gold and 10.72 g/t silver in hole WGC-12-36 and 1.3 meters grading 10.48 g/t gold and 28.08 g/t silver in hole WGC-12-37.

Additionally, a hole in the "Fish Vein" zone, 2 kilometers to the north of the Ben Vein, extended mineralization there an additional 100 meters to the north of previous high-grade drill intersections.

Significant results include 1.5 meters grading 2.23 g/t gold and 1.97 g/t silver in hole WGC-12-39.

Final recovery results from over 20 tons of vein material bulk sampled from the Ben and Fish veins is expected shortly.

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 39.7 meters at a grade of 4.74 percent copper and an additional 111.5 meters grading 2.80 percent copper in hole RC12-211, 50.6 meters grading 2.05 percent copper in hole RC12-212 and 14.3 meters grading 1.31 percent copper in hole RC12-213.

The company indicated that 16 of 19 holes drilled in the South Reef zone in 2012 encountered high-grade copper mineralization.

The mineralization is consistent over an area measuring 300 meters wide by 700 meters along strike.

Mineralization remains open to expansion.

The company is hoping to release the South Reef zone's first industry-compliant resource estimate in the first quarter of 2013.

Southeast Alaska

Hecla Mining Co. announced third quarter production results from its Greens Creek mine with Admiralty Island.

The cash cost per ounce of silver for the quarter was US$3.52 compared to a negative US$2.98 in the third quarter of 2011.

The average grade of ore mined during the quarter was 10.56 ounces-per-ton silver compared to 9.64 oz/t silver in the year previous period.

Average by-product grades were 0.11 oz/t gold per ton, 3.4 percent lead and 9.12 percent zinc.

During the third quarter, the mine produced 1,619,110 ounces of silver, 14,024 ounces of gold, 5,499 tons of lead and 16,649 tons of zinc.

Mining costs per ton were up by 23 percent and milling costs were 19 percent lower in the third quarter, compared with the same period in 2011.

The higher mining costs were primarily due to the increased use of contract miners, and the lower milling costs resulted from higher mill throughput and the availability of more hydroelectric power.

Underground exploration drilling continues to extend ore-grade mineralization along trend of the Southwest Bench, 200 South, Gallagher, 5250 and 9a zones.

Significant results include 70 feet of 0.3 oz/t gold, 13.8 oz/t silver and 21 percent combined zinc and lead at the 200 South; and 73 feet of 0.17 oz/t gold, 17.58 oz/t silver and 23.7 percent combined zinc and lead at the Southwest Bench.

In 2013, modeling of these intersections could result in significant additions to the resource.

Surface drilling has successfully identified mineralization at Killer Creek 1.5 miles west-northwest of the mine that contains copper-rich veins and bands and one mile west of the mine at West Gallagher that contains pyritic intervals that have carried anomalous base and precious metal grades in the past.

Killer Creek and West Gallagher will be priority targets for the 2013 summer drilling program.

Coeur d'Alene Mines reported third-quarter production results from the Kensington mine.

During the third quarter the mine produced 24,391 ounces of gold at a cash operating cost of $1,298 per ounce versus 25,687 ounces of gold at a cash operating cost of US$973 per ounce in the third quarter of 2011.

Cash operating costs are expected to decline to US$950 per ounce in 2013.

The mine processed 123,428 tons of ore grading 0.21 oz/t gold.

Average mill recovery was 95.9 percent.

Exploration drilling at Kensington focused on new targets around the main mine.

Encouraging results were obtained from Kensington South and Elmira.

Hole KX12-003 at Kensington South cut 10 feet of mineralization grading 1.72 oz/t ton.

This drill intercept is situated about 750 feet south of the current Kensington mine and over 500 feet deeper on the south-striking mine trend.

Constantine Metal Resources Ltd. announced the signing of a non-binding letter agreement on the Palmer volcanogenic massive sulfide project with Alaska newcomer Dowa Metals and Mining Co., Ltd. of Japan.

Under terms of the agreement, Dowa will have an option to earn a 49 percent interest in the project by making aggregate expenditures of US$22 million over a four-year period.

Expenditures for each year shall not be less than US$3 million with Dowa funding a minimum of US$3 million in year one as a firm commitment.

Included in the aggregate expenditure are cash payments to Constantine totaling US$1.25 million over four years.

Constantine is expected to be the operator during the earn-in period.

Welcome to Alaska Dowa Metals and Mining!

Grande Portage Resources Ltd. announced additional 2012 results from its Herbert Glacier gold project near Juneau.

Significant drilling results include hole 12J-3 which returned 79.41 g/t gold over 2.05 meters, including 192.5 g/t gold, 227 g/t silver, 1.0 percent lead and 0.7 percent zinc over 0.8 meters, hole 12J-4 which returned 12.66 g/t gold over 1.10 meters, hole 315E which returned 48.12 g/t gold over 1.13 meters and hole 12O-8 which returned 11.72 g/t gold over 2.12 meters.

The Goat vein, from which hole 12J-3 and six other holes were drilled, can be traced on surface for nearly 1,000 meters.

Drilling from the J Pad also intersected other gold-bearing structures both above and below the main Goat shear zone, such as 1.10 meters with 12.66 g/t gold near the top of hole 12J-4.

The 2012 drilling included 8,900 meters of core drilling in 62 holes.

An updated resource calculation is expected in the first quarter of 2013.