"We can finally get back to business!"

Earlier in November, the Alaska Miners Association held its annual convention and trade show in Anchorage and as always, the well-attended convention overlapped with election Tuesday.

While the lead up to, and results of, the national and state elections were hot topics throughout the week, one comment I heard from a colleague on the morning after the elections distilled the feelings of a lot of people at the conference.

When asked what he thought of the election results, he said he was simply relieved that 18-plus months of campaigning was finally over, and we could finally get back to the business of business.

I thought that was well put, so let's see what the business of mining has been up to in the past month or so.

Western Alaska

Barrick Gold and partner NovaGold Resources Inc. announced the appointment of Andy Cole as General Manager of the Donlin gold project. Andy will replace current General Manager Stan Foo, a 12-year veteran of the Donlin project team. Welcome to Alaska, Andy, and thank you, Stan, for your years of service to the project and to Alaska's mining industry!

Northern Dynasty Minerals Ltd. and the U. S. Environmental Protection Agency have filed a joint notice in federal court stating their intent to enter into mediation in an effort to resolve ongoing litigation of the Pebble project under the Federal Advisory Committee Act.

In September 2014, the Pebble Partnership initiated an action in federal district court in Alaska, alleging that the EPA violated FACA by its close interactions with, and the undue influence of, Environmental Non-Government Organizations and anti-mine activists in developing the Bristol Bay Watershed Assessment, and its unprecedented, pre-emptive regulatory action under Section 404(c) of the Clean Water Act.

While court preparations continue, the mediation notice signals both parties' interest in a negotiated settlement of the case.

Selection of a mediator will be followed by mediation efforts later this fall.

Redstar Gold Corp. updated it drilling efforts at its Unga gold project near Sand Point.

The company has completed the first two holes of the drilling program, which were designed to target the expansion potential of high-grade vein/breccia mineralization below and to the southwest of the Main Zone at the Shumagin Gold Zone.

Both drill holes indicate that high-grade mineralization may continue at depth along strike towards the southwest.

Hole 16SH019 was drilled below rhodochrosite-bearing high-grade veins/breccias that occur along the southwestern-most surface exposures of the Shumagin Gold Zone and intercepted the targeted structure at about 265 meters below surface exposures and 80 to 100 meters away from previously drilled intercepts.

Hole 16SH020 was drilled to intercept the structure some 100 meters to the southwest of the deepest historic drill intercept at roughly 215 meters below sea level (hole BMS-01 5.49 meters grading 24.02 grams per metric ton gold).

This second hole also intercepted the target structure at 190 meters below sea level.

Assays are pending for both holes as well as other holes drilled during the program.

The second stage of the most recent drilling program is focused on the Bunker Hill Gold Zone, located on the Shumagin Trend about 750 meters to the northeast of hole 16SH019.

The Bunker Hill program will consist of four to six holes at an average depth of 150 meters.

Interior Alaska

Alaska newcomer Avidian Gold announced acquisition of the Amanita gold project in the Fairbanks District.

The main mineralized zone at Amanita lies 3.72 miles (6 kilometers) south of the Fort Knox gold mine and hosts a 1.24 mile-by-1.86 mile (two kilometer-by-three-kilometer) gold soil anomaly.

Between 1999 and 2001, 39 reverse circulation drill holes (4,700 meters) were completed along a 1.6-kilometers-long northwest trending zone.

The drill holes encountered an oxide gold zone to about a 100-meter depth.

Of the 39 reverse circulation drill holes completed, 30 had results greater than 1 g/t gold over widths of at least 1.5 meters, with several of the holes reported to contain visible gold.

Highlighted drill intersections include: 4.57 meters grading 11.49 g/t gold, 22.86 meters grading 1.01 g/t gold, 12.19 meters grading 2.28 g/t gold and 13.72 meters grading 3.02 g/t gold.

Mineralization is hosted in shear zones cutting the Fairbanks Schist and is thought to be sourced from underlying intrusive bodies.

Welcome to Alaska Avidian Gold!

Northern Empire Resources Corp. reported additional results from its 2016 exploration efforts at its Richardson gold project near Fairbanks.

The field efforts included 277 line kilometers of ground magnetic geophysical surveys and collection of 1,297 geochemical samples.

The geophysical survey validated the known northwest striking Richardson lineament and also identified several north-northeast trending structures that the company has recently identified as possible controls of high-grade mineralization.

One of the northeast-trending structures coincides with previously announced sampling results of 32 meters grading 5.73 g/t gold per metric ton from a chip channel sample in the Democrat pit.

Work to date has identified a 2,000-meter-long north-northeast trending gold in soils anomaly with a coincident geophysical structural signature.

An additional 2,000 meters of the geophysical signature is poorly covered by soil data.

A second mineralized structure trending northwest has been identified with coincident elevated gold in soils over a 1,000-meter length, with an additional 1,000 meters remaining to be evaluated by geochemical sampling.

The company indicated it plans to prioritize the targets outlined to date and follow up with initial scout drilling in 2017.

Endurance Gold Corp. announced the first assay results from the 2016 drill program on its Elephant Mountain gold project.

Results were released for the two diamond drill holes completed on the South Zone which intersected an altered zone with intervals of massive stibnite and arsenopyrite.

Hole EL16-14A intersected 4.6 meters grading 4.09 g/t gold starting at 18.3 meters depth, while hole EL16-14B intersected 4.6 meters grading 3.87 g/t gold starting at 15.2 meters depth.

The gold mineralization in EL16-14 A&B is related to a five-meter-wide zone of inter-layered diorite and syenomonzonite associated with pervasive pyrite-arsenopyrite, calcite and silica replacement of the diorite layer.

A massive stibnite-bearing fault fill appears to parallel or sub-parallel a contact between a diorite layer and the syenomonzonite, and the associated high-grade intercepts of 20.39 g/t gold and 24.9 g/t gold can be correlated with this contact in both drill holes.

The structure that hosts the stibnite is currently interpreted to be a steeply dipping structural zone striking northwest parallel to the eastern margin of the South Zone soil anomaly.

Drilling to date does not explain the size of the South zone soil anomaly, indicating mineralization remains open to expansion.

Analytical results are pending for two other drill holes which tested the South Zone soil anomaly and the single hole drilled at the North Zone target.

Freegold Ventures Ltd. provided results from its second drill hole from its Shorty Creek project near Livengood.

A total of seven holes were completed for a total of 3,038 meters during the summer 2016 program.

Hole SC 16-02 was collared about 120 meters southwest of previously completed hole SC 16-01 and 409 meters grading 0.29 percent copper, 5.66 grams per metric ton silver and 0.06 g/t gold starting at 88 meters depth, including 93.5 meters grading 0.38 percent copper, 8.96 g/t silver and 0.07 g/t gold starting at 135.5 meters.

Limited drilling in both 2015 and 2016 has demonstrated the copper mineralization is associated with a distinct magnetic high in the Hill 1835 area.

The overall magnetic signature at Hill 1835 covers a 750-meter-by-1,000-meter area.

Mineralization has been intersected to a depth of 520 meters and remains open to depth.

Additional assays are pending from others completed in 2016.

Contango ORE Inc. announced initial drill results from its 2016 Phase 3 drilling program at the Tetlin gold project, a joint venture with a wholly owned subsidiary of Royal Gold Inc. The partners completed 19 core holes in the 2016 phase 1 program, 62 holes in phase 2 and 37 holes in phase 3.

Drilling in 2016 totaled 20,522.8 meters (67,335 feet).

Significant results from the phase 3 drilling at the North Peak zone included hole 16274, which returned 8.02 meters grading 5.56 g/t gold, hole 16276, which returned 16.01 meters grading 3.23 g/t gold, hole 16281, which returned 5.49 meters grading 29.53 g/t gold, hole 16285, which returned 14.31 meters grading 11.59 g/t gold, hole 16286, which returned 18.78 meters grading 5.02 g/t gold, hole 16289, which returned 25.48 meters grading 18.73 g/t gold, and 16.58 meters grading 13.52 g/t gold, hole 16295, which returned 14.99 meters grading 11.67 g/t gold, and hole 16298, which returned 6.75 meters grading 15.53 g/t gold.

The company indicated that North Peak zone remains open to expansion to the northwest and southeast.

Alaska Range

Alaska newcomer Avidian Gold reported that it also acquired the Golden Zone project in the Chulitna District.

The property contains numerous igneous-related prospects of Late Cretaceous-early Tertiary age in three north-northeast-aligned fault blocks which appear to become younger in age from northwest to southeast.

The most northwesterly and probably oldest block, the Golden Zone Corridor, contains the GZ Breccia Pipe deposit that hosts an industry-compliant indicated resource of 267,400 ounces of and 1,397,800 ounces of silver in 4,187,000 metric tons of rock grading 1.99 g/t gold and 10.38 g/t gold.

This corridor can be traced for over four kilometers and hosts a number of other mineral occurrences exposed in trenches and/or drill holes.

The central corridor, the Long Creek Corridor, is over two kilometers long and hosts three occurrences of high grade gold-copper veins, including a drill intercept of 13.72 meters grading 7.01 g/t gold, 94.1 g/t silver and 4.0 percent copper that may relate to an underlying porphyry system.

The easterly block, the Silver Dikes Corridor contains a mineralized rhyolitic dike swarm.

Avidian owns 29.4 percent of the property with a purchase agreement to acquire the balance of the 70.6 percent interest for US$875,000 in cash and US$1.125 million worth of stock over a seven-year period ending in 2023.

The agreement also carries a work commitment of US$2 million over five years (US$200,000 minimum per year).

Coventry Resources Ltd. reported results from the final 13 holes of a 22-hole, 6,520-meter drill program recently completed at its Caribou Dome copper project in the Valdez Creek district.

Multiple exceptional intersections of copper mineralization have been returned from the five holes drilled in the central portion of the deposit to better define the extents of lenses 4, 5 and 6.

Significant results include 11.4 meters grading 6.7 percent copper from 70.2 meters, 5.7 meters grading 7.3 percent copper from 92.4 meters, 3.5 meters grading 11.5 percent copper from 49.2 meters, 4.0 meters grading 6.4 percent copper from 156.1 meters, 4.2 meters grading 4.3 percent copper from 91.7 meters, and 5.3 meters grading 1.8 percent copper from 165 meters.

These holes provide for a much better understanding of the controls on the distribution of mineralization in the central portion of the deposit where the majority of shallow, potentially open-pit minable mineralization is located.

Recent drilling has increased the strike extent of mineralization at the northeast end of the deposit by more than 120 meters, while also demonstrating high-grade mineralization extends to more than 300 meters depth in this area.

Three shallower holes were drilled in this area in the second part of the recent drilling program, all of which intersected significant mineralization.

Significant results from recent drilling in this area, include 4.3 meters grading 5.2 percent copper from 220.5 meters, 1.1 meters grading 5.5 percent copper from 532.1 meters, 0.6 meters grading 9.1 percent copper from 528.7 meters, 0.4 meters grading 6.8 percent copper from 192.6 meters, 2.2 meters grading 1.0 percent copper from 243.8 meters and 2.9 meters grading 2.4 percent copper from 193.4 meters.

Two holes were completed recently to begin evaluation of a previously undrilled 100m long corridor between Lenses 2 and 6 where mineralization outcrops at surface, in an area where a potential open pit may extend.

Significant mineralization was intersected in both holes including 4.4 meters grading 1.2 percent copper from 69.2 meters and 0.5 meters grading 2.6 percent copper from 53.3 meters.

Based on the encouraging results from the past drilling, a scoping study has been initiated to help determine how best to advance the project.

Initial results from this work, expected to be completed in early 2017, include metallurgical testing from a composite sample from the Lenses 4, 5 and 6 that averaged 5.03 percent copper.

Conventional flotation achieved recoveries of greater than 95 percent copper, with concentrates grading up to 24.5 percent copper.

In addition, samples grading 7.4 percent copper from the recently discovered Lense 7/8 area at the NE end of the deposit returned recoveries of greater than 99 percent copper with concentrate grading up to 27.4 percent copper.

Northern Alaska

Trilogy Metals Inc. announced drill results and provided a project update from its 2016 summer field program at the Arctic poly-metallic volcanogenic massive sulfide deposit at its Upper Kobuk Mineral project in the Ambler district.

The majority of this year's US$5.5 million project budget was spent on 3,058 meters of drilling in 13 drill holes at the Arctic project.

This work included drilling for geotechnical, hydrological, waste rock characterization and metallurgical studies as well as further resource definition.

Significant results include hole AR16-0155 which intersected three mineralized intervals, including 36.36 meters of 2.27 percent copper, 0.27 g/t gold, 25.3 g/t silver, 0.36 percent lead, and 2.54 percent zinc, and 8.48 meters of 6.14 percent copper, 1.32 g/t gold, 96.6 g/t silver, 1.93 percent lead, and 8.27 percent zinc, hole AR16-0148 intersected four mineralized intervals, including 21.22 meters of 3.79 percent copper, 0.85 g/t gold, 69.1 g/t silver, 0.99 percent lead, and 5.78 percent zinc, hold AR16-0150 intersected five mineralized intervals, including 16.60 meters of 5.40 percent copper, 0.20 g/t gold, 46.0 g/t silver, 1.23 percent lead, and 6.69 percent zinc; and hole AR16-0153 intersected 12.59 meters of 2.49 percent copper, 0.86 g/t gold, 56.6 g/t silver, 2.17 percent lead, and 9.64 percent zinc.

The company also conducted an aquatics survey, avian survey, habitat survey, archaeological survey, and wetlands delineation survey, and continued ongoing baseline environmental data collection in 2016.

Southeast Alaska

Hecla Mining announced additional third quarter 2016 production results for its Greens Creek mine on Admiralty Island.

Silver production of 2,445,328 ounces increased 22.8 percent and gold production of 11,988 ounces decreased 16.6 percent over the prior-year period.

Increased silver production resulted from higher grades, while gold production was lower due to slightly lower ore grades and throughput.

The average grade of ore mined during the quarter was 15.4 ounces per ton silver, compared with 12.68 oz. /t silver in the year previous period.

Average by-product grades were 0.088 oz. /t gold, 2.92 percent lead and 6.96 percent zinc.

During the third quarter, the mine produced 2,445,328 oz. silver, 11,988 oz. gold, 4,803 tons lead and 12,144 tons zinc.

The cash cost per ounce silver of $4.80, nearly unchanged from $4.82 in the third quarter 2015.

The mill operated at an average of 2,201 tons per day in the third quarter.

The estimated 2016 silver production is increased to 8.5 million oz. and gold production remains unchanged at 53,000 oz. On the exploration front, definition drilling continued to refine the resources of the 9A, Upper Southwest, East Ore and NWW zones.

Recent definition drilling of the 9A Zone included 21.6 ounces of silver per ton, 0.03 ounces of gold per ton, 20.7 percent zinc, and 7.0 percent lead over 15.3 feet.

Drilling of the southern portion of the NWW Zone defined mineralization primarily along the lower fold, spanning from the fold nose to the upper limb and is represented by multiple distinct mineralized bands near the mine contact.

Recent drill intersections include 55.3 oz. /t silver, 0.51 oz. /t gold, 4.1 percent zinc, and 2.3 percent lead over 10.0 feet.

In addition, definition drilling of the Upper Southwest Zone around previously mined levels has identified mineralization that could be incorporated into a future mine plan, including 46.9 oz. /t silver, 0.03 oz. /t gold, 15.1 percent zinc, and 7.9 percent lead over 13.3 feet.

Revised resource models for the 5250, 9A, West, NWW and Deep 200 South zones are expected by the end of the year and all will likely contribute to increased reserves.

Exploration drilling of the Gallagher Zone at the southwest corner of the mine is defining a new flat-lying zone just west of the Gallagher Fault about 450 feet beneath the current Gallagher Zone resource.

This drilling also has moved the location of the Gallagher fault further east than originally interpreted, expanding the possible extent of mineralization in this area.

Drilling of the upper limb of the Southwest Bench fold has defined an intermittent mineralized contact and lies along trend of the upper 5250 Zone and middle Southwest Zone trends of mineralization opening up a new area for possible expansion of resources.

Coeur Mining Inc. announced updated third-quarter 2016 production results from its Kensington gold miner near Juneau.

Third-quarter production is estimated at 26,459 oz. of gold, a slight decrease over the 28,688 oz. of gold produced in the third quarter of 2015.

Average cost of production was US$859/oz., a significant increase over the US$740 per ounce cost in the year-previous period.

Production declined 18 percent and production costs increased in the third quarter due to reduced mill throughput caused by a blocked tailings line, partially offset by a slight increase in head grades.

The mine processed 140,322 tons of ore grading 0.20 oz. /t gold during the quarter.

Average recovery was 94.8 percent.

Work continued on the decline into the Jualin zone where production is expected to begin during the second half of 2017.

Estimated 2016 total production from Kensington is 120,000 to 125,000 oz. gold at cash operating costs of US$825-US$875/oz. The company also reported results from its four exploration drill rigs operating in the quarter.

Significant results from the Main Kensington deposit include assays from the Zone 41 gap target, which returned 12.2 feet grading 1.21 oz. /t gold and drilling in the Zone 12 target which returned 20.5 feet grading 0.37 oz. /t gold.

Underground drilling at Jualin accelerated following recent underground access to exploration targets.

An initial reserve from Jualin #4 vein, one of five known veins, is expected at year-end 2016.

The current resource at Jualin #4 is 179,000 oz. gold at a grade of 0.619 oz. /t gold.

Zarembo Minerals Co. announced results from analytical work completed at is Frenchie volcanogenic massive sulfide project near Wrangell.

The company drilled holes in 2006 and 2007 at Frenchie containing mineralization that is characterized by bedded semi-massive to massive precious metal enriched zinc-lead-copper sulfide mineralization in pervasively quartz-sericite-altered metasedimentary rocks.

Zinc to lead ratios are relatively high (roughly 10 to one) in areas with low-grade disseminated and semi-massive mineralization, while zinc to lead ratios are considerably lower (less than five to one) in areas where massive sulfide mineralization is best developed.

Silver to gold ratios are highly variable and range from 5.1 to 684.

Silver values appear to be closely linked to zinc and lead values, but gold is less clearly associated with elevated base metal values, partly because few gold analyses were available from previous exploration efforts.

Work in 2016 was focused on better defining the grade and distribution of gold at the project by conducting metallic sieve analyses.

The effort revealed that 92 percent gold in re-analyzed samples is in the coarser, plus-80 mesh-size fraction that is normally discarded when a standard gold fire assay is conducted.

As a result, a previously sampled 16.-foot-thick outcrop on the project now grades 4.4 g/t gold, along with zinc to four percent and minor amounts of lead and silver.

Additional follow-up work is being conducted to better define the extent of this precious-metal enrichment at the project.

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