New Amalga Mine next Alaska gold producer?

After years of exploration and development, the project once known as Herbert Gold is positioning itself to likely become Alaska's next major gold producer. Supported by a newly updated mineral resource estimate, an ambitious mine plan, a partnership to construct essential infrastructure, and multiple rounds of funding, Grande Portage Resources Ltd. has set the stage for its transformation into a modern mining operation.

In a nod to the region's rich mining heritage, Grande Portage rebranded the Herbert Gold project as the New Amalga Mine project in early September, a name honoring the historic Amalga Gold Camp, located just four miles (6.4 kilometers) from the current site that once yielded tens of thousands of ounces of lode gold during the early 20th century.

Ian Klassen

After more than a decade of development, Grande Portage began the year by releasing an updated mineral resource estimate, a testament to the substantial growth and high-grade potential of the New Amalga Mine. Located about 16 miles (26 kilometers) north of Juneau, this project sits within the historic Juneau Gold Belt, a 99-mile (159-kilometer) region that produced over seven million ounces of gold from the late 1800s to the mid-1900s.

"Our updated mineral resource estimate continues to confirm that the deposit has grown and is open to future expansion," said Grande Portage President and CEO Ian Klassan. "Importantly, the deposit has continued to mature and expand whilst maintaining world-class high gold grades."

According to its newest calculation, Herbert Gold hosts 4.72 million metric tons of indicated resource averaging 9.47 grams per metric ton (1.4 million oz) gold, and 5.86 g/t (891,600 oz) silver; plus 1.8 million metric tons of inferred resource averaging 8.85 g/t (515,700 oz) gold, and 7.33 g/t (390,600 oz) silver.

Bolstered by the resource growth, Grande Portage introduced a detailed mine plan proposing a selective underground operation aimed at extracting high-grade material primarily, in hopes of reducing the inclusion of low-grade material or waste rock in the ore stream.

Central to this strategy was the decision to forego onsite milling, opting instead for direct shipping ore (DSO) to third-party facilities – an increasingly popular approach among mining companies seeking to streamline development, reduce permitting timelines, maximize resource recovery, and eliminate the need for onsite tailings storage, all while minimizing environmental impact.

Supporting this vision, the company spent much of the year successfully securing over C$3 million ($2.2 million) in funding, ensuring the financial resources necessary to advance the project.

Grande Portage Resources Ltd.

To further support this shipping strategy, Grande Portage partnered with Goldbelt Inc., an urban Alaska Native corporation, to plan the development of an ore terminal at Cascade Point, roughly 15 miles (24 kilometers) from New Amalga.

"We are exceptionally pleased to partner with Goldbelt for planning the development of an ore terminal at their property," said Klassen. "This is a key step towards implementing our DSO (direct shipping ore) strategy, enabling ore processing and tailings storage to take place offsite while keeping the New Amalga Mine facilities to an extremely small footprint."

Grande Portage's consideration of DSO reflects a growing trend in the mining industry, where companies have begun leveraging centralized processing hubs to streamline operations and cut costs.

Examples such as Contango ORE Inc.'s Manh Choh mine, highlight the viability of this approach. At Manh Choh, high-grade ore is transported approximately 250 miles (402 kilometers) to Kinross Gold Corp.'s Fort Knox mill in Fairbanks – successfully demonstrating how centralized processing can overcome the challenges of permitting and capital expenditures typically associated with building standalone facilities.

This is further exemplified by Contango's recent acquisition of HighGold Mining Corp.'s Johnson Tract project, a high-grade polymetallic deposit in Southcentral Alaska. With its remote location and lack of existing infrastructure, Johnson Tract presents an ideal candidate for implementing this approach, leveraging its tidewater access to transport high-grade ore to third-party facilities.

Similarly, the proposed Kitsault Mill complex in northern British Columbia envisions consolidating ore from multiple high-grade deposits, including those of Moly LLC, Blackwolf Copper and Gold Ltd., and Dolly Varden Silver Corp.

This collaborative effort could see ore transported distances ranging from about 19 miles (30 kilometers) to over 311 miles (500 kilometers), offering a cost-effective solution for junior miners in the region.

While Grande Portage has yet to designate a specific destination for New Amalga's ore, the project's location near the Pacific Rim provides numerous logistical advantages.

One such opportunity lies with Ascot Resources Ltd.'s Premier Gold Mine mill, which recently resumed operations in British Columbia. With its established processing infrastructure designed for high-grade ore, the Premier mill represents a potential option for New Amalga.

While Grande Portage is focused on developing the Cascade Point ore terminal as its primary shipping hub, the company has drawn inspiration from other regional facilities like the port at Skagway, roughly 100 miles (161 kilometers) from New Amalga.

Historically a key player in supporting mining operations, Skagway will serve as a model for ensuring efficient logistics and environmental protection.

"We will be integrating lessons learned from other nearby export terminals, such as those at Skagway, to ensure that the design and operation of the facility adheres to the highest level of environmental protection," said Klassen. "The development of Cascade Point is expected to not only streamline ore transport but also generate hundreds of new jobs for the residents of Juneau and surrounding communities, delivering economic benefits while minimizing the project's environmental footprint."