The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
State authorizes $8.5M to advance work on resource road North of 60 Mining News – November 5, 2021
Nova Minerals currently relies on a winter road to deliver equipment, fuel, and supplies to its Estelle property about 100 miles northwest of Anchorage, Alaska.
Mineral exploration and placer gold mining activities in the West Susitna region that would be more easily accessible by the proposed road.
The Alaska Industrial Development and Export Authority Oct. 27 announced the receipt of $8.5 million in funds for the advancement of predevelopment work for the West Susitna Access Road project, which would extend into resource-rich areas west of Cook Inlet in Southcentral Alaska.
"Investing in access projects creates the infrastructure necessary to bring natural resources to market, which creates good-paying jobs for Alaskan families and generates local tax revenue that helps fund social and emergency services," said AIDEA Executive Director Alan Weitzner.
Originally proposed under Alaska's Roads to Resources program, the West Susitna Access Road would run about 100 miles northwest from the Port MacKenzie area, opening up the west side of Cook Inlet to responsible natural resource development.
Access to this region west of Cook Inlet is expected to open many new opportunities for Alaskans, who will have easier access to 6 million acres of recreation area. In addition, the state's economy is expected to enjoy growth from the resource development opportunities offered by providing less expensive access to the gold, silver, copper, strategic metals, oil and gas, agricultural lands, timber resources, and alternative energy options in this region.
"This important project makes it possible to travel by road from the Point MacKenzie/Big Lake area to the millions of acres on the west side of the Susitna River, opening access to strategic minerals and known proven oil and gas reserves," said Alaska Gov. Mike Dunleavy. "That's the role of government – building transportation infrastructure that leads to economic development while ensuring that those resources are developed responsibly."
The Matanuska-Susitna Borough and AIDEA had previously entered into an agreement to look into this potential road. Under the agreement, AIDEA and the borough each committed to investing $50,000 towards studies for the road if a third party would also contribute funds.
Nova Minerals Ltd. committed $100,000 to assist in funding further works that would be needed to advance the road toward its 6.2-million-ounce Estelle gold project in the Western Susitna area.
Created by the Alaska Legislature in 1967, AIDEA is the development finance arm of the state of Alaska. With a primary objective of spurring economic growth in Alaska, AIDEA has financed hundreds of projects around the state that range from small business loans to the development of large infrastructure projects. As a result, AIDEA has been responsible for directing more than $3.5 billion in economic development in Alaska and has paid $439.7 million in dividends to state coffers since 1997.
Alaska's fiscal year 2022 budget provided AIDEA with $8.5 million to carry out the third and final phase of a feasibility analysis for the Western Susitna Access Road.
"Access is a common barrier to developing Alaska's resources," said AIDEA Chair Dana Pruhs. "With this funding from the legislature to advance predevelopment work, AIDEA can help facilitate access for the Mat-Su Borough to develop purpose-built infrastructure."
To complete this phase, AIDEA will procure a third-party contractor to assist with the application process with the U.S. Army Corps of Engineers and begin an environmental impact analysis under the National Environmental Protection Act, an important step in gaining federal permits for the 100-mile road.
AIDEA anticipates having this firm selected and under contract by the end of the year.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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