Northern Alaska placer mine more than doubles gold in 2016

Goldrich Mining Co. Jan. 18 reported that the Chandalar placer gold mine in northern Alaska produced 10,209 ounces of alluvial gold, or roughly 8,200 ounces of refined gold, during the 2016 mining season. This is roughly a 117 percent increase over the 4,400 oz produced at the mine in 2015.

Processing of pay gravel at this operation about 200 miles north of Fairbanks continued into late-September and preparations for the 2017 mining season were completed in mid-October.

Production costs through the end of September were roughly US$7.9 million, or about US$961 per oz of fine gold produced.

At the end of the production season in September, there were also general and administrative expenses of US$797,000 and other expenses of US $1,036,000.

The Chandalar placer mine is operated by Goldrich NyacAU Placer LLC, a 50-50 joint venture owned by Goldrich and NyacAU LLC. All initial capital expenditures are being funded by NyacAU under terms of the joint venture agreement.

To date, NyacAU has invested some US$30.8 million to develop the placer operation.

Final numbers concerning the total amount funded by NyacAU, cost of goods sold, and other expenses may change as Goldrich and NyacAU are in discussions concerning certain accounting items.

Prior to the formation of the joint venture, Goldrich outlined about 250,000 oz. of gold in a 10.5 million cubic yard alluvial deposit in Little Squaw Creek, averaging 0.25 oz. per ton gold. However, much of the gold recovered over the past two seasons has come from beyond the drill defined deposit, indicating a larger resource than currently outlined.

-SHANE LASLEY