Southwest Alaska prospects’ for riches go beyond Pebble

MARY LOCHNER

December 03, 2008 at 10:16AM AKST

Southwest Alaska isn’t exactly pouring metal into the mineral commodities markets: it produced a combined total of 4,714 ounces of gold from 12 operators in 2007, according to the Alaska Mineral Industry’s 2007 report. Three of those operators were recreational miners.

But there’s no doubt the region has attracted interest and investment for its mineral potential. Donlin Creek and Pebble are high-profile prospects, but surveying and exploration in other areas have raised hopes on various prospects throughout the region.

Illiamna copper, molybdenum and gold
The Pebble prospect, 19 miles northwest of Illiamna, represents the most advanced exploration in the entire region, delineating a low-grade copper-gold-molybdenum resource near the surface called Pebble west, and a higher-grade resource far beneath the surface called Pebble east. It has collected extensive environmental, geological, hydrological and other data in the area, in advance of permit applications for mine operations the company expects to submit in 2010. Mike Heatwole, vice president of public affairs for Pebble Partnership, said one factor in the time table is that the company wants to allow time to meet with Bristol Bay communities regarding a proposed mine.

The time table isn’t likely to be impacted by metal prices that have dropped during the global economic downturn, Heatwole said.

“It definitely gets everybody’s attention,” Heatwole said, “But we’re looking at a longer-term price to make our economic recommendation.”

The Pebble prospect isn’t alone.

After taking samples and conducting geological surveys, Full Metal Minerals announced in an Aug. 11 news release that it had begun drilling on the Pebble South property. The prospect, a joint venture with Freeport McMoRan, cradles the Pebble prospect on the southeast side, with a small portion of the crescent extending southwest of the Pebble prospect.

And, in a March news release, Liberty Star Uranium Metals announced its hopes for a prospect called Big Chunk Super Project, which forms a partial doughnut shape arcing northwest of the Pebble prospect.

“Extensive technical studies by the company show the mega structures the company believes are responsible for all mineralization in the area, including the Pebble,” the release said. By that time, it had already collected mineral data from aeromagnetic surveys, thousands of geochemical samples, and 31 exploration holes.

Both Pebble South and Big Chunk Super Project prospects are targeting the same deposits as Pebble, that is, copper, gold and molybdenum.

Meanwhile, scattered gold, copper and silver targets have been identified near Lake Illiamna. South of the large lake, geological surveys, samples, and exploratory drilling programs have been conducted at KUY, Fog Lake and Kamishak prospects. A description of the Kamishak prospect is on the Web site (www.alixresources.com/index.php?pag... of Alix Resources Corp., which is advancing the project, notes the potential for synergy in the Illiamna area between different projects if they move into production phase.

While there is little infrastructure support in the area now, the company says on its Web site says that “if Pebble is brought into commercial production, industrial-scale electric power and port facilities will be developed within 100 km (approximately 62 miles) of the Kamishak project.” And, it continues, the Kamishak claim itself is sufficiently large to contain mine development related facilities such as tailings storage, waste disposal and processing plant sites.

And, gold and silver is being targeted at the Bonanza Hills prospect 40 miles northeast of the northern boundary of the Big Chunk Super Project mining claim. Millrock Resources and Anglo American Exploration Inc. have also staked claims in the area.

Southwest Alaska’s gold
Farther north, between the Terra Cotta and Revelation mountains of the Alaska Range in Southwest Alaska, International Tower Hill Mine with AngloGold Ashanti Exploration Inc. have targeted gold. After initial surveys were conducted in 2004, exploratory holes have been drilled every year since 2005.

In the west, south of the Kuskokwim River system, a cluster of gold prospects includes Tintina Gold, Kisa and Bucktock mountains, Shotgun and Nyac, which are in various stages of initial exploration. On the north side of the Kuskokwim is the more well-known Donlin Creek prospect, a joint venture between NovaGold Resource Inc. and Barrick Gold Corp. with Kuskokwim and Calista corporations, which own the land. In a Sept. 30 update on the project, NovaGold noted it was still receiving data from its 2008 exploration project, but added that “drill results continue to demonstrate that Donlin is truly one of the largest gold deposits with considerable potential to expand known resources.”

Kemuk iron and Sleitat tin
The Kemuk prospect, 16 miles west of Koliganek, had been explored for iron ore in the 1950s by Humble Oil Co., but in an agreement between Bristol Bay Native Corp., which owns the land, and Anodver Ventures Inc. and Alix Resources Corp., historical drill cores were being re-sampled in hope of yielding more glamorous ore–platinum and platinum group metals. No significant platinum-group element mineralized zones were detected, however, according to the Alaska Mineral Industry’s 2007 report.

At Sleitat Mountain, 84 miles northeast from Dillingham, a more humble metal, tin, has been targeted by Solomon Resources Inc., along with tungsten and silver.

Goodnews Bay platinum
Although the Salmon River drainage area of Goodnews Bay was once the United States’ only platinum production center back in the mid-70s, the rush has long since halted, and new attempts to locate additional platinum resources have so far come up empty. Pacific North West Capital Corp. joined with Stillwater Mining Co. in 2007 to continue exploration for platinum at Last Chance and Susie West prospects, according to the Alaska Mineral Industry’s 2007 report. Pacific North West Capital had already collected hundreds of samples in the area. However, according to a Nov. 21 news release from Pacific North West Capital, the 2008 exploration program, which included seven drill holes, failed to identify any significant platinum-palladium mineralization. Based on those results, the release states, the Stillwater Mining and Pacific North West Capital decided to terminate their exploration joint venture.

A separate agreement between Calista and XS Platinum may yield platinum yet, however, according to the 2007 report. XS Platinum has looked at a tailings reclamation project that would use newer technology to extract platinum that was discarded as waste during Goodnews Bay’s platinum heyday.

Mary Lochner can be reached at 907-348-2438, or 800-770-9830, ext. 438.

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