8 epa sprints to pebble decision - petroleum newsas part of its statewide search for rare earth...
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As part of its statewide search for rare earth elements,the Alaska Division of Geological and GeophysicalSurveys is conducting a field investigation of the RayMountains in the Ruby Terrane north of the YukonRiver. A similar program carried out in 2011 unearthedREEs and other critical minerals in the neighboringMelozitna Mining District.
A special supplement to Petroleum NewsWEEK OF
July 29, 2012
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8 EPA sprints to Pebble decision Agency races to judge mine’s fate under Obama, before permits are filed
22 Northerners agree on devolution Northwest Territorial, Aboriginal governments negotiate their own fate
By SHANE LASLEYMining News
Putting Alaska on the map as a domesticsource of rare earth elements and other
strategic and critical minerals is a priority ofAlaska Gov. Sean Parnell. During the 2012budget cycle, Alaska lawmakers approvedUS$498,000 proposed by the administra-tion to begin a statewide REE evaluation.This year’s budget includes US$2.7 millionfor a three-year project to continue this ini-tiative.
“Alaska can become America’s sourcefor rare earth elements,” Alaska Gov. SeanParnell proclaimed when rolling out hisproposed Fiscal Year 2012 Budget inDecember 2010. “We cannot afford to bedependent on foreign sources of rare earthelements – and we believe Alaska’s subsur-face contains vast quantities.”
The unique properties of REEs – a groupof 17 previously obscure metals that includescandium, yttrium and the 15 lanthanides –are key ingredients of a number of militaryapplications such as guided missiles, lasers,radar systems and night vision equipment;high-tech consumer goods like mobilephones and iPods; and green technologyapplications such as wind turbines andhybrid cars.
In order to substantiate Gov. Parnell’sconviction that stores of these critical ele-ments are lurking in the substrate, theAlaska Division of Geological andGeophysical Surveys initiated a strategicassessment of the 49th state in the summerof 2011.
This project – which has identified morethan 150 REE occurrences in Alaska –includes a review of historical data, newgeochemical analyses of REE-prospectivesamples stored at the state’s GeologicMaterials Center in Eagle River and fieldinvestigations of some of the more promis-ing strategic metals targets in the state.
A 2011 field investigation has unearthed
some high concentrations of REEs in theMelozitna mining district, one of severalrare earth-prospective areas associated withthe 3,000-square-mile (8,000 square kilo-meters) Ruby batholith in Interior Alaska.
“Today we are making an announcementon some very positive anomalies in regardto gold and rare earths,” Alaska Departmentof Natural Resources Commissioner DanSullivan announced on July 13.
“We did some stream-sediment sam-pling, and we are publishing the geochemi-cal report today,” DGGS MineralsResources Section Chief Melanie Werdonexpanded. “There are a couple of streamsthat are really high in rare earth element val-ues.”
Melozitna REEsDGGS – which had flown detailed geo-
physical surveys over the Melozitna miningdistrict in 2010 – chose this area on thenorth banks of the Yukon River about 25miles (40 miles) west of the community ofTanana as an initial target for its field inves-tigation of Alaska’s REE potential.
“Melozitna is an older mining district,
and we did see some anomalies in there ear-lier,” explained DGGS Director BobSwenson. “We shot a geophysical surveythere two summers ago, and there weresome anomalies in that data.”
Blanketed by the tundra and taiga foresttypical of Interior Alaska, the KokrinesHills of the Melozitna district provide geol-ogists with few clues to the bedrock hiddenbelow. The geophysical data gathered in2010 provided the state geologists with aglimpse below this pervasive cover.
“In Interior Alaska, there is not a lot ofexposure. We deal a lot with exposures andso it is really important that we go out andshoot high-resolution geophysics,”
Swenson explained.Anomalous concentrations of REEs and
uranium were first identified in this portionof Interior Alaska’s Ruby Terrane byNational Uranium Resource Evaluation – aprogram originally charged with evaluatingdomestic uranium potential when initiatedby the U.S. Atomic Energy Commission in1973 and later expanded to test for REEsand other strategic metals – during a late1970s assessment of Alaska.
Using the geophysical and NURE datato guide their search, DGGS geologists col-lected 32 stream-sediment and 28 pan-con-centrate samples from rivulets draining themost promising rare earth targets of theMelozitna study area.
In addition to the full suite of REEs, theresults of this 2011 geochemical surveyrevealed promising levels of tungsten, tita-nium, chromium and niobium.
DGGS disclosed the sample results in aJuly 13 report, “Geochemical trace-elementand rare-earth element data from stream-sediment and pan-concentrate samples col-lected in 2011 in the Melozitna mining dis-trict, Tanana and Melozitna quadrangles,Interior Alaska.”
One pan-concentrate sample,2011LF540A, stands out for its particularlyhigh concentrations of REEs and strategicmetals.
Collected from Wolf Creek – a drainage
3NORTH OF 60 MINING
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� A L A S K A
Alaska geologists unearth rare earthsDGGS conducts strategic survey of state’s REE potential; finds critical metals in streams draining Interior Alaska’s Ruby Terrane
see REE SURVEY page 4
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on the north side of a mountain-bearing thesame name – sample LF540A returnedmore than 28,900 parts per million (2.9 per-cent) total REEs (365 ppm dysprosium,70.7 ppm terbium, 6,020 ppm neodymium,1,460 ppm yttrium, more than 1,000 ppmpraseodymium, 7,950 ppm lanthanum,more than 10,000 ppm cerium, more than1,000 ppm samarium, 607 ppm gadolinium,129 ppm ytterbium, 154.5 ppm erbium, 62ppm holmium, 18.4 ppm lutetium, 30 ppmscandium, 22 ppm thulium and 6.6 ppmeuropium).
In addition to rare earths, the samplecontained a suite of metals considered criti-cal: 10,400 ppm manganese, 8.82 percenttitanium, 890 ppm tungsten, 144 ppmchromium, 60 ppm gallium and 147.5 ppmniobium.
Strong mineralization of a stream sedi-ment sample collected at the same locationcorroborates the results of the pan concen-trate.
Similar concentrations of REEs – about25,260 ppm (2.5 percent) TREEs – wereanalyzed from pan-concentrate sample2011514B, collected from a creek drainingthe east side of Wolf Mountain and abouteight miles (15 kilometers) to the southeastof 2011LF540A.
Several other samples collected in thisarea also returned elevated concentrationsof REEs and other strategic metals.
“Pretty exciting – it is exactly what wewere hoping would happen on our first try,”Sullivan said, referring to Alaska’s strategicmineral assessment.
The geochemical samples collected byDGGS coupled with the geophysical sur-veys and mapping completed by the stategeologists could supply the private sectorwith potentially ground staking informa-tion.
“When the geophysics come out, themaps come out and the reports come out;that is when we see these big spikes in thestaking,” said Swenson.
Claims blanket WolfContango ORE Inc., or CORE, did not
wait for DGGS to assess the potentialbefore staking its claim to the mineral rightsof Wolf Mountain. Based upon historicaldata that was reviewed and analyzed byAvalon Development Corp., the HoustonTexas-based explorer blanketed this mostprospective region of the Kokrines Hillswith some 200 mining claims in May 2010.
“CORE has leased or filed miningclaims on 759,800 acres in Alaska, withabout 650,000 acres focused on gold andrelated mineral exploration and approxi-
mately 100,000 acres focused on rare earthelement exploration,” CORE Chairman andCEO Kenneth Peak said when the mineralexploration company went public late in2010.
Wolf and three other properties – Swift,Spooky and Alatna – account for 97,280acres of CORE’s initial REE land positionand are found at some of the state’s promis-ing rare earth areas from the Alaska Rangeto the Brooks Range.
The company’s two remaining rare earthprospects, Salmon Bay and Stone RockBay, are located along a trend of prospectsand deposits on Prince of Wales Island inSoutheast Alaska that includes Ucore RareMetals’ Bokan Mountain project.
CORE – which is currently focusing itsexploration on the Tetlin gold-copper proj-ect in eastern Interior Alaska – has onlycompleted reconnaissance stage work on itsREE properties over the past two years. Thecompany has budgeted some US$400,000to continue this work in 2012.
The geophysical data completed byDGGS indicates some prospective REEareas may exist beyond CORE’s Wolf prop-erty. It is unclear whether the Texas-basedexplorer has added to its claims based on theresults of the state survey.
Though the Melozitna mining districtcurrently does not have road access, studiesfor a road linking Tanana to Alaska’s high-way system are currently in the advancedstages and the preferred route for a highwaythat continues westward to Nome wouldtransect the REE-prospective area.
DGGS eye Ray MountainsFollowing up on its 2011 success, this
year DGGS is investigating the REE poten-tial of the Ray Mountains, another Rubybatholith-related prospect area that spans anenormous region from just north of theYukon River along the Dalton Highway toabout the Arctic Circle.
A belt of highly prospective strategicmetals hunting ground stretches along fromthe Kokrines Hill in the Melozitna districtfor at least 150 miles northeast were itcrosses the Dalton Highway, the transporta-tion corridor that links the oil-rich plains ofthe North Slope to Fairbanks.
“The Ray Mountains and the KokrinesHills area of the state is one of the placesthat stand out of rare earths,” AvalonDevelopment President Curt Freeman toldMining News.
Avalon Development – a Fairbanks-based mineral exploration consulting firm –has an extensive database of REE occur-rences in Alaska.
A suite of 110-million-year-old graniticrocks with a unique chemical signature con-taining anomalous tin, tungsten, uranium,REEs and other strategic metals have beenidentified along this stretch of the RubyTerrane.
While the U.S. Bureau of Mines and ahandful of private companies completedreconnaissance assessment of the mineralpotential of the Ray Mountains at the end ofthe 20th Century, no comprehensive explo-ration of the region has been undertakensince that time.
“That terrane has been known to haverare element content for a long time – noone has gone out to look specifically forthem until very recently,” said Freeman.
Several Ruby batholith associated plu-
tons – bodies of intrusive igneous rock thatcrystallized from magma cooling belowearth’s surface – identified in the RayMountain study area and are the targets ofthe state’s REE assessment there.
The Hot Springs pluton – an area testedby the Bureau of Mines in the 1980s – is aprimary focus of the DGGS assessment ofthe Ray Mountain study area.
In addition to the historical data, portionsof the Hot Springs pluton are free of vege-tative cover, providing state geologists withrelatively good bedrock exposure for map-ping and sampling.
DGGS hope this reconnaissance work atHot Springs and other plutons in the regionwill help unlock the REE potential of theRay Mountains.
Ucore studies placersState geologists are not the only ones that
recognize the REE potential of the RayMountain region of Interior Alaska. WhileDGGS is investigating plutons for potentialhardrock strategic metals occurrences,Ucore Rare Metals Inc. is seeking alluvialdeposits of REEs and associated mineralsthat have been weathered off the Rubybatholith into the Ray River drainage.
The junior explorer – best known for thework it is doing at its Bokan Mountainheavy rare earth deposit in Southeast Alaska– has draped with claims an 11,400-acre(4,613.5 hectares) area of the RayMountains prospective for economic placerdeposit of REEs, tin, tungsten, tantalum andniobium.
“The State of Alaska has shown tremen-dous support for Ucore and our plan to
4NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JULY 29, 2012
continued from page 3
REE SURVEY
see REE SURVEY page 5
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The tundra and taiga forests that blanket the Ruby Terrane provide geologists with few clues to the bedrock hidden below. High-resolutiongeophysics and stream-sediment sampling are helping to guide the search for rare earth elements in this region of Interior Alaska.
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expedite the development of America’s pre-eminent heavy REE asset at BokanMountain, Prince of Wales Island,” UcorePresident and CEO Jim McKenzie said.“With this in mind, we’ve elected to evenfurther invest in Alaska REE explorationand development. With the Ray Mountainsacquisition, we’ve now covered what webelieve to be two of the most prospectiveremaining REE exploration targets.”
To better understand the placer potentialof its Ray Mountain property, Ucore col-lected alluvial samples from upper KilolitnaRiver, Ray River, and No Name Creek dur-ing a field investigation carried out in 2011.
Using a shaking table – a standard grav-ity separation tool common to placer goldmining – Ucore concentrated these meas-ured samples collected from the RayMountain drainages.
That assays of these concentratesreturned up to 50 percent tin; as much as 10percent total REE; and 0.01 to 1 percenttungsten, tantalum and niobium. Heavyrare earths – including terbium, dyspro-sium, erbium and yttrium – make up 15 to25 percent of the total rare earth content inthe majority of samples. As much as 60 per-cent of the TREE content of samples col-
lected at No Name Creek is the prizedHREEs.
The company said most of the initialsamples were collected directly from sur-face exposures, and the heavy mineral con-tent can be expected to increase at greaterdepths within the alluvium. In some areasthe gravels are reported to be as much as100 meters deep.
“The Ray Mountains project has selectareas rivaling HREE content at our Bokanproperty, and the remarkable advantage ofcollateral tin, niobium and tantalum miner-alization which enhances prospective valuesper ton. Ucore will be advancing the RayMountains area as a priority exploration tar-get as it transitions its Bokan flagship intomine development,” McKenzie said inJanuary.
The shaker table used to concentrate thealluvial samples captured some 75 to 80percent of the REEs and associated metals,demonstrating the potential of using simplegravity methods at the promising placerdeposit.
This technique, used by placer gold min-ers across Alaska and around the world, istypically simpler and quicker to permit anddevelop.
Additionally, the technology to separatethe individual REEs from the concentrateshas long been known elsewhere in the world
see REE SURVEY page 23
continued from page 4
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From the vantage of the Hot Springs pluton, Alaska Division of Geological and GeophysicalSurveys Geologist Larry Freeman and Alaska Department of Natural ResourcesCommissioner Dan Sullivan discuss the state’s 2012 program to evaluate the rare earth ele-ment potential of the Ray Mountains in Interior Alaska.
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� Y U K O N T E R R I T O R Y
Rackla, Coffee, others promise more goldSome projects across central area could deliver on encouraging early results even though exploration stampede has slowed to crawl
By ROSE RAGSDALEFor Mining News
Two of the projects credited with touching off therecent gold rush to Yukon Territory reported results
from their 2012 programs in July that suggest they coulddeliver on all that their early results promised.
While new entrants have slowed to a trickle and otherearly players retire from the scene, at least until the ane-mic capital markets regain their vigor, Atac ResourcesLtd. and Kaminak Gold Corp. and a handful of other jun-iors are quietly churning out impressive assay results inrobust multimillion-dollar drill programs this year.
High-grade results at RacklaAtac July 18 reported the first 10 diamond drill hole
results from the Conrad and Isis East zones within theNadaleen Trend at the eastern end of its 1,600-square-kilometer (618 square miles) Rackla Gold Project ineast-central Yukon.
The results included the highest-grade gold intersec-tion to date at the Conrad Zone with 46.06 meters aver-aging 11.24 grams per metric ton gold in hole OS-12-103. The interval included several high-grade sections –9.31 meters average 25.93 g/t gold starting at 71.19meters depth and 15.39 meters average 3.46 g/t goldstarting at 147.07 meters depth and including 8.39meters average 5.12 g/t gold. In hole OS-12-098, Atacencountered 40.30 meters averaging 10.10 g/t gold start-ing at 90.76 meters depth, including 17.59 meters aver-aging 21.24 g/t gold starting at 91.86 meters depth; andin hole OS-12-094, 9.15 meters averaging 4.68 g/t goldstarting at 285.90 meters depth.
The feedback comes as Atac continues its 2012 explo-ration program begun May 22 with six drills turning –four on Conrad and two on the Osiris Zone. At July 18,Atac said it had completed 15,000 meters in 58 holes ofa planned 30,000-meter program. The company has notreported a budget for 2012 exploration at Rackla, but lastyear it spent C$29.5 million on exploration, including26,600 meters of drilling.
“We are very pleased with the developing continuityand the high-grade nature of the first 2012 drill-holes atthe Conrad Zone. Holes OS-12-98 and OS-12-103 inter-sected mineralization near surface with the highest gradeintervals that we have encountered to date,” said AtacCEO Graham Downs in a statement. “The fact that wealso have extended gold mineralization at Isis East bystepping-out from the 2011 discovery holes is alsoencouraging and drilling continues to test for furtherdown-dip and strike extensions.”
Five Carlin-type gold exploration targets were out-lined in 2011 by wide-spaced diamond drilling within a3-kilometer-by-4-kilometer (1.9 miles by 2.5 miles)area. The 2012 drill program is intended to expand andbetter define these known areas of mineralization, aswell as test a number of undrilled geochemical anom-alies.
The Conrad zone has a current strike length of some475 meters and extends 490 meters below surface. Thezone remains open in all directions. Some of the bestgrades and longest intersections from previous drillingare located at a shallow depth in the crest area of an anti-clinal fold at or near the contact of relatively imperme-able silty shale with an underlying limestone unit. Thepotential for additional deep high-grade gold mineraliza-tion as encountered in hole OS-11-036 (8.06 g/t goldover 21.34 meters starting from 687.32 meters downhole) also will be systematically tested in 2012. Truewidth averages 60-80 percent for all intercepts reported.
Atac also reported extending the Isis East discovery,which lies along the southern edge of the mineralizedarea, with step-out holes along a 200-meter unfoldedstrike length to a depth of 225 meters in the crest of ananticlinal fold.
In hole OS-12-097, drilling intersected 24.39 metersaveraging 5.58 meters starting at 31.39 meters depth,including 12.19 meters averaging 9.96 g/t gold starting at42.06 meters depth; in hole OS-12-101, a 21.60-meterinterval averaging 5.11 g/t gold starting at 79.00 metersdepth; and in hole OS-12-091, a 13.72 interval averaging5.14 g/t gold starting at 198.73 meters depth. True widthaverages 50-80 percent for all intercepts reported.
As with Conrad and Osiris, which that lie immediate-ly to the north, gold mineralization is stratabound at IsisEast and localized in the crest area of an anticlinal fold –in this case at or near the contact of relatively imperme-
able dolomite altered limestone with underlying unal-tered silty limestone. The mineralized band remainsopen to expansion to the east and to depth with furtherdrill testing to be completed in 2012.
Connecting the zonesKaminak July 9 reported drilling results from 18
reverse circulation drill holes and 25 diamond core drillholes that significantly expanded the strike length of itsSupremo T3 and T4 gold zones at the Coffee GoldProject in the White Gold district of west-central Yukonto greater than 1,600 meters and 1,400 meters, respec-tively. The drilling also connected the project’s Supremoand Latte gold zones and expanded the Double Doublezone to 400 meters in strike length. All gold zones drilledto date at Coffee start at surface and remain open downdip and along strike.
Kaminak also said it has completed more than 30,000meters of drilling since it commenced a C$17 millionexploration program March 19, and is on schedule tocomplete its 2012 objective of 50,000 meters of drilling.
Last year, the junior spent C$22 million on explo-ration at Coffee, including 48,000 meters of drilling andsignificant camp infrastructure investments
Kaminak said RC drilling began in mid–March withthe discovery of gold along the newly defined SupremoT4-5 trends, while diamond drilling started in early Apriland began testing the Supremo T3 trend for along strikeextensions of the near-surface and oxidized gold miner-alization previously identified.
New drilling at Supremo intersected multiple high-grade intervals, including 12.53 g/t gold over 13 metersfrom 158 meters core depth in hole CFD-199; 15.5 g/tgold over 11 meters from 31 meters core depth in holeCFD-210; 10.5 g/t gold over 13 meters from 212 meterscore depth in CFD-221; 29.2 g/t gold over 3 meters from86 meters core depth and 9.2 g/t gold over 1 meter from1 meters core depth in hole CFD-223; 27.8 g/t gold over3 meters from 134 meters core depth in hole CFD-226;25.83 meters g/t gold over 2 meters from 61 meters coredepth in hole CFD-213.
The mineralization occurs in brittle fractures andbreccia zones within gneissic host rock and felsic-inter-mediate intrusive rocks, accompanied by silica floodingand pyrite (oxidized tolimonite/hematite). Higher grade gold is associatedwith intense silica-sericite alteration and highpyrite/limonite content. The mineralized structures aretotally to partially oxidized as deep as 180 meters belowsurface, with the deepest gold intercept to date in CFD-221 (10.5 g/t gold over 13 meters) comprising heavilyoxidized mineralogy (limonite and hematite).
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see YUKON PROSPECTS page 7
Comstock Metals Ltd.’s trench crew – Jean Pautler, Eric Bellefeur, David Norwell and Pautler’s dog, Shadow – discussesprogress in Trench 2 at the QV Property in the White Gold district in central Yukon Territory where the junior made a sig-nificant gold discovery in July.
Kaminak Gold Corp.’s camp on the banks of the Yukon River serves as a hub for the junior’s 50,000-meter drill program atthe Coffee Gold project in 2012. Ethos Gold Corp. and Comstock Metals Ltd. are two other juniors finding significant aurumon their properties in the White Gold district of central Yukon.
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PETROLEUM NEWS • WEEK OF JULY 29, 2012
Ongoing drilling continues to focus on expanding theSupremo zones at depth and northwards alongtrend. Diamond core drilling at Double Double com-menced in early May comprising 50 meters step-outsalong strike of the drilling completed over the 2010/11field seasons.
To date, an additional 200 meters strike has beenadded to the trend this season, for a total strike length of400 meters. New results include: 35 g/t gold over 4.5meters (from 64 meters core depth), 39.4 g/t gold over1.5 meters (from 71 meters) and 6.9 g/t gold over 5.2meters (from 85.3 meters). Mineralization occurs in dis-crete east-northeast trending, steeply-dipping to verticallodes characterized by intense silicification, polyphasebreccia and strong clay and sulphides. True width is esti-mated at about two-thirds down-hole length for all inter-sections.
Kaminak further said results of eight additional drillholes are pending along trend, and drilling is currentlyongoing, testing down-dip extensions of the zone.
Another big gold discovery?Comstock Metals Ltd. is a newcomer to the Yukon.
The junior July 25 reported initial results from a trench-ing program on the QV Project in the White Gold dis-trict, including a significant gold discovery.
The discovery trench, QVTR12-06, assays 3.74 g/tgold over 75 meters (entire length of the trench), with amaximum grade of 7.31 g/t gold over 5 meters and aminimum grade of 1.41 g/t gold over 5 meters. The goldmineralization is open on all sides of QVTR12-06.
The trenches were designed to test a 1.8-kilometer- (1mile) long gold-in-soil anomaly with values up to 395.6parts-per-billion gold. A visible gold-bearing vein (VGVein) that returned 16.28 g/t gold occurs 60 meters westof Trench 6. Current results from Trenches 3 and 6 andthe VG Vein indicate a minimum 265-meter strike extentfor the gold-bearing structure.
In comparison, the initial trenching on the GoldenSaddle zone at Kinross Gold Corp.’s White Gold deposit,some 15 kilometers (9 miles) to the south of QV, returned1.3 g/t gold over 37.5 meters, with a maximum grade of4.7 g/t over 5 meters and a minimum grade of 0.1 g/tgold over 0.3 meters (Underworld News Release, June17, 2008). Initial trench results from the Coffee Projectof Kaminak Gold Corp. included 2.3 g/t gold over 21.0meters and 11.45 g/t gold over 5.0 meters (KaminakNews Release, Oct. 8, 2009).
“We are fortunate to have encountered such a largecontinuous gold mineralized trench with fairly uniformgold grades,” said Comstock President and CEO RasoolMohammad in announcing the discovery. “This makesComstock Metals’ the third significant discovery in theWhite Gold District after Kinross’ Golden Saddledeposit and Kaminak’s Coffee; kudos to our team.”
Comstock’s 2012 exploration program at the QV proj-ect, which got underway June 12, consists of about 1.5line kilometers of trenching (12 trenches over four
zones) and mapping, prospecting, and sampling over soilanomalies that the junior defined in 2011. These soilanomalies returned maximum values of 1,027.1 ppbgold, 8.7 parts-per-million silver, 3,767 ppm arsenic,66.2 ppm antimony, 4.13 ppm mercury, and 2,597 ppmbarium. Additional grid soil geochemical sampling(1,400 samples) also was planned in order to define thelimits of the 2011 soil anomalies.
Comstock did not indicate how much it planned tospend on exploration at the QV project this season, butthe junior raised nearly C$300,000 in the first tranche ofa private placement in early July that it intends to spendon exploration and development, along with generalexpenses.
Since the White Gold district is unglaciated, very lit-tle overburden overlies bedrocks in the district.Overburden can reach up to a maximum thickness ofabout 60 centimeters or 2 feet in places. Trenching canexpose the bedrock relatively easily.
Results for three of six trenches on the QV Grid havebeen received; the balance is pending. The trenches wereexcavated by Talus Exploration Inc. of Dawson City,using a Candig mini-excavator.
Similarities to CoffeeOther highlights of 2012 exploration at the QV prop-
erty include:Trench 3 results of 0.85g/t gold over 45 meters;Grab Rocks assaying up to 16.28 g/t gold and 47 g/t
silver;Soil gold assays run up to 1,030 parts-per-billion, or
1.03 g/t gold; Pathfinder elements indicative of a gold system simi-
lar to Kaminak’s Coffee project are present on
Comstock’s QV claims;Gold and the associated anomalies are of the same
strength as at Kaminak’s Coffee project;Atrong geophysical magnetic anomaly present on the
Coffee project and on Kinross’ ground is also present onthe Comstock claims;
Multiple zones of high gold values associated with thepathfinder elements such as high arsenic, mercury, anti-mony, and barium indicate a large mineral potential; and,
Two anomalous zones measure 2,600 meters and1,530 meters long, respectively, and are both open.
Mineralization at the QV property consists of quartzveins, stockwork, silicification and weak brecciation,accompanied by minor pyrite. The host rocks are“augen” gneiss (a metamorphosed intrusive rock) andmetamorphosed sedimentary rocks.
Comstock said only minor property scale mappinghas been undertaken on the QV property, but governmentmapping indicates that the property has promising geol-ogy.
Trench QVTR12-03 is located 205 meters east ofTrench QVTR12-06, and Trench QVTR12-04 lies 100meters to the south of Trench QVTR12-03. QVTR12-04is situated south of the apparent trend of the main gold-bearing structure. The trenches generally crosscut the070-075-degree trend of the veins, but due to extensivesilicification, the determination of the dip of the veinsand the exact controls on mineralization require follow-up work. Consequently, the true width of the mineralizedzone (open to the north and south in trench QVTR12-06and open to the north in trench QVTR12-03) is yetunknown, the junior said.
More gold at Betty propertyEthos Gold Corp. also posted encouraging 2012
results in the Yukon.
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Tao Henderson of Talus Exploration Inc. pulls out a boulderthat ran 7.71 grams per metric ton gold on a hillside at theQV Property that Comstock Metals Ltd. is exploring in theWhite Gold district of central Yukon Territory.
Chip samples from a buried subcrop boulder with visible gold that prospector-geologist Jean Pautler discovered June 10 ona bare hillside at Comstock Metals Ltd.’s QV Property in the White Gold district of central Yukon. The samples average 16.28grams per metric ton gold.
8NORTH OF 60 MINING
� A L A S K A
Enviros to Obama: Stop Pebble, now!The EPA races to determine fate of proposed Bristol Bay mine under current presidential term, before developers apply for permits
By SHANE LASLEYMining News
What’s the rush?” This is thequestion the Pebble
Partnership and a growing number of law-makers, resource development advocatesand state officials are asking the U.S.Environmental Protection Agency inregard to the regulator’s assessment of theBristol Bay Watershed.
Companies hop-ing to develop prom-ising mineraldeposits in theUnited States typi-cally spend severalyears and millions ofdollars to gatherenvironmental base-line informationneeded to initiate along and arduouspermitting processthat typically ranges from three years todecades.
So, when the EPA spends about a yearon a watershed assessment intended todetermine whether to ban the develop-ment of one of the largest accumulationsof copper, gold and molybdenum on theplanet and then allots a short six monthsto vet the assessment, Pebble proponentsand Alaska officials question the motivesof the expedited timeline.
“What is the rationale for that dead-
line? What is the rush? Why is this assess-ment being conducted before a detailedmine proposal has been presented? Whyhave critical data sources been over-looked? Why has the EPA not conductedany field investigations to inform its sci-ence? Why is the peer review processoverlapping public review?” asksNorthern Dynasty Minerals Ltd.President and CEO Ron Thiessen.
Vancouver-based Northern Dynasty isa 50 percent co-owner of the PebbleLimited Partnership, a company formedin 2007 to develop the Pebble project.London-based Anglo American holds theother half.
Pebble opponents, on the other hand,are pressuring the regulatory agency tobypass the vetting process all together.
In a July 18 letter to President BarackObama, the Save Bristol Bay coalitionwrote that now is the time to initiate aprocess under Section 404(c) of the CleanWater Act to prohibit or restrict large-scale mining in the Bristol Bay watershed.
Under Section 404 of the Act, theArmy Corps of Engineers is charged withissuing permits for dredge and fill dis-charge into navigable waters, includingwetlands. EPA was granted veto authorityto prohibit, restrict, or deny a dischargethat poses an unacceptable adverse impactto fisheries or other water uses.
“We ask that you act on this before theend of July 2012 to ensure you can com-plete this process before January 20,2013, and give this broad and diversecoalition of fishing, hunting, jewelry,food and investment companies the cer-tainty we need for future planning andinvestment,” the anti-Pebble coalitionwrote in its letter to the President.
This timeline suggests the environ-mental advocacy group spearheaded byTrout Unlimited would like to ensureaction is taken under the ObamaAdministration.
“Perhaps the most troubling aspect ofEPA Region 10’s actions with regard tothe Bristol Bay Watershed Assessment is
“
see EPA ASSESSMENT page 9
EPA Region 10AdministratorDennis McLerran
SHA
NE
LASL
EY
From a nearby vista, visitors gaze across the enormous Pebble copper-gold-molybdenumdeposit. This chunk of real estate, located about 90 miles (145 kilometers) northwest ofBristol Bay, is ground-zero of the controversy that prompted the U.S. Environmental Agencyto conduct an early assessment of potential effects of mining on the Southwest Alaskawatershed acclaimed for its world-class salmon fishery.
9NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
its insistence that the process must becomplete before Americans go to thepolls in November,” Thiessen said.
Alaska officials believe there may bemore than political motivation behind theenvironmental agency’s rush to judgment.
No more timeReleasing a draft of the Bristol Bay
Watershed Assessment at the end of May,EPA allowed stakeholders until July 23 toreview the document and provide com-ment.
The State of Alaska was among thefirst to argue that the 60-day commentperiod did not provide adequate time toaddress the technical and legal merits ofthe draft Bristol Bay Watershed assess-ment and asked EPA to allow an addition-al 120 days, with a new deadline of Nov.20.
This sentiment was shared by morethan half the people that testified at a June4 hearing the EPA held in Anchorage onthe draft assessment.
“Please revisit the assessment and giveit the necessary time required to developinto a comprehensive analysis or drop theassessment process altogether,” testifiedAlaska State Chamber of CommercePresident and CEO Rachael Petro.
Once the Pebble Partnership submitspermit applications under the NationalEnvironmental Policy Act, state and fed-eral regulatory agencies would have atleast three-and-a-half years to review theapplications and exercise proper authori-ties – providing the EPA plenty of time tocomplete a thorough study before devel-opment began.
“The current assessment and any pre-emptive action would deprive governmentagencies and stakeholders of the specificinformation, science, and rigorousreviews that would come out of the multi-year NEPA process,” testified Petro.
State legislators who attended themeeting unanimously called for the feder-al agency to extend the comment period.The group included Rep. Charisse Millet,R-Ancorage, who characterized theprocess as premature and short.
Pebble-opponents that spoke at themeeting pressed the EPA to stick to thetimeline.
Despite the call for more time and noimmediate risk of mine development inthe watershed, the EPA insisted on stick-ing to its expedited schedule.
“In order to ensure that the finalassessment is released in a timely fashion,it is imperative that this process move for-ward on schedule,” the agency explainedwhen announcing that it was holding tothe July 23 comment deadline.
“The EPA’s refusal to provide addition-al time for the public to comment on thedraft watershed assessment for BristolBay demonstrates, once again, that theagency does not understand Alaska,” Sen.Lisa Murkowski, R-Alaska, said inresponse to the agency’s denial of anextension. “There is no deadline – otherthan the one arbitrarily imposed by theEPA – that requires the agency to actnow.”
Race is onAlaska officials say they believe the
EPA’s insistence on completing theassessment “in a timely fashion” is a raceto finalize a CWA 404(c) determinationbefore the Pebble Partnership has anopportunity to apply for permits underNEPA. By doing so, the federal agencywould circumvent any need to considerthe state’s management plan for the
Bristol Bay region.The 2005 Bristol Bay Area Plan –
which lays out the state’s vision for some17.5 million acres of Alaska-owned landsin the region, an area larger than WestVirginia – sets aside the area aroundPebble for mineral development.
In 2010, six Alaska Native groups peti-tioned the environmental agency to use itspresumed 404(c) authority to strike downthe possibility of developing Pebblebefore permit applications are submitted– a milestone that would trigger the NEPAand associated Environmental ImpactStatement processes.
“To do otherwise will compel EPA, theCorps and other agencies, in the contextof NEPA and an EIS process, either todefend the state’s methods used in the2005 BBAP (which would be untenable),or to ignore them, which would be con-trary to (federal law),” the Pebble opposi-tion explained to the environmentalagency.
Alaska Attorney General MichaelGeraghty – in a July 23 letter to EPA
Administrator Lisa Jackson and Region10 Administrator Dennis McLerran –expressed the state’s concern that this rea-soning is the basis for the federal agency’s“accelerated development of the assess-ment.”
“Implicitly, petitioners argue thatbecause EPA is generally exempted fromcomplying with NEPA’s requirements in
the absence of a permit application, EPA’spre-emptive review can forego considera-tion of state management plans,” hewrote.
The Pebble Partnership anticipatesspending some US$107 million in 2012to advance the enormous Pebble copper-
continued from page 8
EPA ASSESSMENT
Yellowknife Whitehorse Juneau
aurorageosciences.com
see EPA ASSESSMENT page 20
10NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JULY 29, 2012
By CURT FREEMANFor Mining News
In a long overdue step to bring Alaska into the 21stCentury, state and federal agencies met in late June to dis-
cuss collaborative funding strategies for Alaska’s StatewideDigital Mapping Initiative, an enterprise designed to createAlaska’s first high-quality digital topographic map.
The roundtable was convened by Alaska Lt. Gov. MeadTreadwell and the Assistant Secretary for Water andScience, U.S. Department of Interior. Alaska remains theonly state in the United States that has not been digitallymapped and its current maps do not meet “National MapAccuracy Standards.” Alaska has contributed funding in thepast that resulted in digital mapping that covered 10 per-cent of Alaska. In a statement that will live beyond thisadministration, Treadwell said, “Mars and the moon havebeen better mapped than Alaska.” As someone who hasflown and walked over large areas of the state, I can attestto the accuracy of the lieutenant governor’s statement. Ihave found mountain tops where the maps say none exist,and I have gone looking for mountain tops shown on mapsonly to find that those peaks, in fact, do not exist in the realworld. While Alaska’s Statewide Digital Mapping Initiativewill greatly assist the mineral industry, it also will haveimmediate applications across a wide spectrum of disci-plines.
Western AlaskaTINTINA RESOURCES INC. reported the commence-
ment of the first exploration drill campaign at its Bairdproject in the Western Brooks Range. The company plansto test several kilometric-scale copper-zinc surface anom-alies with 2,500 meters of drilling. The program will focuson previously identified mineral targets at the Omar,Deadfall, and Frost targets. The Omar target exhibits min-eralization over an area measuring 4 kilometers by 2 kilo-meters (2.5 miles by 1.24 miles) with coincident copperand zinc soil and rock chip anomalies. Historic drillingresults showed significant bedrock mineralization including22.8 meters grading 3.99 percent copper, 6.1 meters grad-ing 9.37 percent copper and 7.32 meters grading 2.95 per-cent copper. The Deadfall target consists of a 4-kilometer-(2.5 miles) long zinc and copper anomaly. Although nodrilling has been completed on this target, channel sam-pling has identified significant bedrock mineralization,including 12 meters grading 10.1 percent zinc and 42.4grams per metric ton silver within 36 meters grading 6 per-cent zinc and 21.7 g/t silver.
GRAPHITE ONE RESOURCES INC. reported rocksampling results and commencement of drilling at its
Graphite Creek graphite prospect onthe Seward Peninsula. Twelve rockgrab samples were collected alongthe electromagnetic conductor and10 of the samples contained graphitewith grades, ranging from 0.77 per-cent to 41.4 percent graphitic car-bon. Follow-up work included col-lection of 307 rock grab samples,geologic mapping along the knownelectromagnetic conductor and com-pletion of two drill holes which test-ed surface graphite showings nearGraphite Creek. The company alsocollected three surface bulk sampleswhich total about 10.5 metric tons.These samples will be used for min-eralogy and metallurgical testing.
MILLROCK RESOURCES INC.provided an update on its plans for its Humble project insouthwestern Alaska and its Council project on the Sewardpeninsula. At Humble, Millrock and partner KINROSSGOLD CORP. are contemplating a follow-up drilling pro-gram for later in 2012. At Council, Millrock and partnerKinross plan to drill six shallow holes to test strong surfacegold geochemical anomalies and gold-bearing veins dis-covered by prospecting crews at the Elkhorn prospect. Theproject is budgeted at $1 million.
NOVAGOLD RESOURCES INC. and partnerBARRICK GOLD CORP. approved their recently complet-ed update feasibility study and approved the long-awaitedpermitting process for their Donlin Creek gold deposit.When in production, the deposit is expected to produceapproximately 1.5 million ounces of gold per year in thefirst five full years of production and average more than 1million ounces of gold per year over a 27-year mine life.Current measured and indicated resources stand at 39 mil-lion ounces of gold contained in 541 million metric tonsgrading 2.2 grams per metric ton gold. Permitting, throughthe federal National Environmental Policy Act will includecompletion of an environmental impact statement.
NYAC GOLD LLC reported the completion of a 920-meter diamond drill hole at its Saddle Mountain prospect atits Nyac gold property under lease from CALISTA CORP.The hole was drilled near the center of a 7.5-acrehydrothermal breccia pipe that is coincident with a roughlycircular 2,450-meter diameter aeromagnetic anomalythought to represent an underlying Cretaceous pluton.Surface quartz vein samples in the breccia pipe have yield-ed up to 59.2 g/t gold with anomalous silver and mercuryvalues. The hole cut pervasively potassically alteredandesite with biotite flooding plus disseminated and vein
magnetite. Anhydrite veining andflooding is prevalent to a depth of750 meters. Hydrothermal alterationand fluidized hydrothermal breccia-tion often obliterate original textures.Significant intercepts include 16 feetgrading 4.9 meters of quartz-carbon-ate vein breccia at 580 meters and 28meters of intensely quartz-sericite-pyrite-altered porphyritic intrusive intwo intervals below 812 meters. Thealtered intrusive is similar to a miner-alized cupola occurring elsewhere onthe property that may have generatedthe placer gold deposit in the creekdraining the cupola. The hole wasterminated in silicified quartz-sericite-pyrite-altered andesite thatcontains up to 2 volume percent fine
quartz-chlorite-anhydrite stockwork. The company intendsto complete at least 2,440 meters of drilling in deep holesin the breccia pipe this season.
LIBERTY STAR URANIUM & METALS CORP. saidit received of updated geophysical data from its ZTEMelectromagnetic survey covering the south block of its BigChuck project. Reprocessing of these data is in progress.
TNR GOLD CORP. said drilling and other explorationwork on schedule for start-up in mid-July at its Shotgungold project. Objectives of the Shotgun Gold Ridgeprospect drill program include about 1,500 meters of infilldrilling to support an industry-compliant resource estimate,testing of new geophysical targets identified in 2011, fur-ther testing at depth on feeder zones discovered in 2006and completion of additional geophysical surveys on otherparts of the project.
Interior AlaskaFREEGOLD VENTURES LTD. reported additional
drilling results from its Golden Summit project nearFairbanks. At the Dolphin zone, significant results 136.7meters grading 1.57 g/t gold in hole GSDL1213 within abroader zone of mineralization grading 0.82 g/t gold over542.8 meters (collar to termination depth). Mineralizationis hosted in pervasively sericite altered granodiorite cut bylater sheeted and stockwork quartz veins. Elevated goldvalues are associated with disseminated and quartz vein-hosted arsenopyrite and pyrite with lesser silver and leadsulfosalts. Additional drilling is on-gong in the Dolphinzone and is planned for other areas of the project in 2012.
TERYL RESOURCES CORP. reported that exploration
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� C O L U M N
State, feds plan digital maps for AlaskaLong overdue collaborative initiative reflects growing awareness that current maps do not meet ‘National Map Accuracy Standards’
TheauthorThe author
Curt Freeman,CPG #6901, is awell-known geol-ogist who lives inFairbanks. He pre-pared this column CURT FREEMANJuly 23. Freeman can be reached by mailat P.O. Box 80268, Fairbanks, AK 99708.His work phone number at AvalonDevelopment is (907) 457-5159 and hisfax is (907) 455-8069. His email is [email protected] and his website iswww.avalonalaska.com.
see FREEMAN page 11
11NORTH OF 60 MININGPETROLEUM NEWS • WEEK OF JULY 29, 2012
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work was planned for its Westridge gold project in theFairbanks District. The proposed initial work programs willinclude locating and surveying historic drill holes on theground within the claim block, a reconnaissance drillingprogram utilizing a small diameter drill rig, upgrading ofaccess and water source areas, general reconnaissance ofthe placer potential on Moose Creek and securing a larger-diameter diamond drill or a reverse circulation drill for fol-low-up drilling. The company plans to complete 760 metersof drilling this season.
INTERNATIONAL TOWER HILL MINES LTD. pro-vided an update regarding the optimization review of itsLivengood project. The company has determined that themost efficient and cost-effective path to permitting is toincorporate results from current engineering and metallur-gical test work directly into a definitive feasibility study,which the company expects to complete in the first half of2013. Earlier this year, the company sent SGS CANADAINC. 10,800 kilograms of material from about 3,000 sam-ples selected from throughout the deposit for the final stageof metallurgical optimization testing and analysis. Resultsare pending. Additional optimization work is looking atcrushing and grinding and over-all mill scale options. Milland facilities condemnation studies also are ongoing.Budget reductions have forced the company to postponemuch of its district-wide exploration drilling program andreduce a portion of its condemnation drill program. Thecompany will focus on completing all the necessary fieldwork and drilling to support the completion of a feasibilitystudy and the environmental work needed to keep its per-mitting schedule on track. The company also reported onthe identification of five key exploration areas with thepotential to provide substantial resource growth over timeand which would be the focus of the company’s futuremine-area drill programs. These areas include the ScraperRidge, Money Knob Pit, SW, Gertrude Basin and MooseGulch/Lucky Creek areas. The presence of a combinationof dikes, volcanic host rocks and a large gold in soil anom-aly indicates potential for the discovery of mineralresources in the newly identified Scraper Ridge target.Mineralization has been confirmed in scout hole MK-10-97 which intersected 1.52 meters of 4.82 g/t gold in themost favorable host rocks. Gold in soil and other diagnosticgeochemical pathfinders have outlined a large, coherenttarget area. To date, almost all of the drill holes in theMoney Knob deposit have bottomed in gold mineralizationand six deep holes extending below the proposed 300-meter pit bottom penetrated intervals with similar goldgrades to the main deposit. Additional mineral resourcesmay be defined below the current pit design by sequentialdrilling conducted as part of an ongoing mining operation.Previously identified mineralized intercepts in the northernportion of the SW Zone include 15.24 meters at 3.69 g/tgold and 22.86 meters grading 0.86 g/t gold. These inter-cepts are relatively shallow and indicate an opportunity forthe delineation of resources that might extend early mining
in the proposed pit towards the west. Deep, well-mineral-ized intersections in the southern part of the SW zone offerthe possibility of extending the present mineral resource tothe southwest later in the life of the proposed project.Geotechnical drilling in the Gertrude Basin area has inter-sected dike-related mineralization in favorable host rockswithin a large gold in soil anomaly. Significant resultsinclude 1.68 meters grading 5.72 g/t gold, 9.77 meters at0.83 g/t gold and 9.85 meters assaying 0.65 g/t gold. In theMoose Gulch/Lucky Creek area, northwest trending faults,dikes and anomalous gold in soils coincide. Explorationand geotechnical drilling in the area has encountered goldmineralization, mostly in and immediately adjacent todikes, including 3.56 meters at 2.0 g/t gold and 6.07 metersgrading 0.67 g/t gold.
ALIX RESOURCES CORP. said it has completed phase1 sampling at its Money Rock and West Pogo gold projectsin the Goodpaster Mining District. Over 300 samples havebeen collected to date, including 210 soil, 34 stream sedi-ment, and 82 rock grab samples. A 1,800-meter drillingprogram has now commenced. Previous work at West Pogoidentified two zones of gold mineralization from rock-chipgrab samples with up to 118.5 g/t gold. Drilling has begunwithin the larger of these two zones and is designed to testfor potential mineralization along roughly northwest-trend-ing structures identified through re-interpretation of geo-physical data.
SONO RESOURCES INC. announced that it hadchanged its name to ALASKA GOLD CORP. and com-menced its 2012 exploration program on its Bear project inthe Circle District. The company collected 219 mobilemetal ion geochemical samples and followed up with athree dimensional induced polarization/resistivity survey.The company hopes to identify 6 to 10 drill targets where itcan subsequently complete 4,000 to 6,000 feet of diamondcore drilling later in 2012.
In what we all hope is a shape of things to come, theDEPARTMENT OF TRANSPORTATION AND PUBLICFACILITIES announced that step one of the Roads toResources program has begun with clearing and surveyingof the proposed road from Manley Hot Springs to TananaVillage. Both the State of Alaska and the ALASKAINDUSTRIAL DEVELOPMENT AND EXPORTAUTHORITY are funding this initial US$10 million effort.The goal will be creating of a summary document that willbe subject to public comments. The land along this seg-ment of the corridor is owned partly by the State of Alaskaand partly by the TOZITNA NATIVE CORPORATION.
Alaska RangeUSIBELLI COAL MINE INC. recently released updat-
ed demographics for Usibelli Mine employees. The mineemploys 144 people full time with an additional seven sea-sonal employees. The average mine employee has beenemployed there for nine years. A total of 46 employeeshave been at the mine for more than 10 years, with 11 ofthose having been employed for more than 30 years atUsibelli Mine. Approximately 27 percent of the workforce,or 39 employees, are second, third or fourth generationemployees.
CORVUS GOLD INC. reported that joint venture part-ner OCEAN PARK VENTURES CORP. has not finalizedits exploration program for the summer, but has indicatedto Corvus Gold that the work will be limited in scope asnecessary to fulfill Ocean Park’s remaining 2012 workcommitment.
PURE NICKEL INC. said its US$4.9 million 2012exploration program at the MAN project, funded by partnerITOCHU CORP., began in late May, with mapping, soilgeochemistry and induced polarization geophysical sur-veys. Drilling began in late June with a total of 2,600meters expected to be completed by the end of the pro-gram.
GTSO RESOURCES said that, in addition to its goldproperties already under evaluation, it has begun evaluationof tungsten prospects in Alaska. The initiative grew out ofresults from the company’s black sands core samples col-lected in June.
MILLROCK RESOURCES and partner TECKAMERICAN INC. said drilling has commenced at theEstelle project. The US$1.8 million drilling program willinclude seven holes totaling up to 1,500 meters of drilling.Five of the planned holes will be drilled at the previouslydrilled Oxide Ridge prospect. Previous drilling intersectedvariably altered magmatic intrusive rock with quartz veinsand stockworks containing gold mineralization whichreturned a 0.43 g/t gold over 365.3 meters.
CORVUS GOLD INC. reported that joint venture part-ner WESTMOUNTAIN INDEX ADVISORS INC. will con-duct additional exploration at the Terra property this sum-mer. Work will include core drilling and installation andoperation of a small mill that will utilize stockpiled materi-al left on site. The company also plans to begin construc-tion of the road from the project camp to the main miningarea at the Ben Vein. Diamond drilling will focus on thecontinued extension of the Ben Vein to the north as well asinfilling the additional 200 meters of vein extension delin-eated in 2011.
Northern AlaskaNOVACOPPER INC. and NANA REGIONAL
CORPORATION Inc. reported initial industry compliantresources estimates for the Bornite copper-cobalt prospectat its Upper Kobuk project in the Ambler District. At a 0.5percent copper cutoff grade, the Ruby Creek Zone of theBornite deposit contains indicated resources of 6.8 millionmetric tons at 1.19 percent copper, or 178.7 million poundsof contained copper. In addition, at a 0.5 percent coppercutoff grade, the Ruby Creek zone contains inferredresources of 47 million metric tons of 0.84 percent copper,or 883.2 million pounds of contained copper. The RubyCreek zone resource does not include any of South Reeftarget mineralization located roughly 600 meters east of theRuby Creek zone. Exploration drilling at South Reef in2011 encountered exceptional grade-thickness intervals,including 178 meters grading 4.01 percent copper, includ-ing a 34.7 meter section grading 12.03 percent copper.Mineralization in the Ruby Creek zone occurs as two dis-
continued from page 10
FREEMAN
see FREEMAN page 13
12NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
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� C O L U M N
EPA pushes error-riddled assessmentRarely has a federal agency had the gall to publish so factually-deficient a document as this hypothetical mine impact analysis
By J. P. TANGENFor Mining News
The very founding of our country was premised uponresistance to governmental excesses. Authors and
movie producers from Ayn Rand’s Atlas Shrugged (“A gov-ernment is the most dangerous threat to man’s rights: it holdsa legal monopoly on the use of physical force against legal-ly disarmed victims.”) to Steven Spielberg’s “Men in Black”(Bug: “Place your projectile weapon on the ground.” Edgar:“You can have my gun, when you pry it from my cold deadfingers.” Bug: “Your proposal is acceptable.”) have warnedus against the rising tide of government intrusion into ourlives.
The arrogance of federal agencies, especially when itcomes to Alaska, has been documented incessantly sincethe Purchase. The most recent unimaginable manifestationof that phenomenon has occurred with the publication ofthe Bristol Bay Watershed Assessment, which is currentlybeing finalized for adoption by the U.S. EnvironmentalProtection Agency. The area subject to the assessment ishuge, the amount of time the EPA has dedicated to itspreparation does not pass the blush test, and predictably, itis riddled with significant, substantive errors in logic andscience.
Innumerable commentators have stepped up to the plateto shine the spotlight of reason on this inept exercise; how-ever, because 2012 is an election year, it is critical to thisadministration that the entire process be completed beforethe President is inaugurated in January – just in case thereis a change in administrations. Few Alaskans will havetaken the time to read the assessment and fewer still willprepare and file incisive comments. By the time this pieceis published, the comment period will have passed.Nonetheless, it seems important to document for all a sam-pling of the incredible deficiencies in the report. The fol-lowing enumerates more than two dozen blatant errors thathave been identified by the Alaska Miners Association in
its effort to leverage the EPA awayfrom the ill-conceived course whichit is following:
The EPA purports to be analyz-ing the impacts of large-scale min-ing in the Bristol Bay watershed.Since the Pebble Project has notreleased a mining plan, the analysisostensibly is not about Pebble; how-ever, the thinly veiled hypotheticalmine that is discussed unmistakablyis the evil shadow of what a Pebbleproposal might look like. In brief,however, the hypothetical mine nei-ther resembles anything Pebblecould ever imagine – an unpermit-table project – nor does it correspond with any other imagi-nable project in southwest Alaska or anywhere else in thecountry.
Copper porphyry deposits are not representative of themineral deposits in the Bristol Bay watershed. There areother significant deposits in the area that have been docu-mented by the Bureau of Land Management and the U.S.Geological Survey as well as a number of undiscovereddeposits USGS deems probable. Their analyses estimatethat there is 50 percent probability that there are 14 non-copper-porphyry deposits within the watershed.
The EPA’s hypothetical mine overestimates the size oflikely mines in Bristol Bay by more than five times theaverage open-pit mine in Alaska and British Columbia, andmore than four times the average copper mine.
The EPA’s hypothetical mine uses a non-representativegeochemical make-up. There is no typical geochemicalmake-up for a metal ore that would be representative of allores within a region; therefore, the geochemistry of onedeposit cannot be used to represent the geochemistry orgeochemical risks of other deposits in the area.
The EPA’s hypothetical mine omits mitigation and pre-
vention strategies that necessarilywill be used by any large mines inthe Bristol Bay watershed. Given thelarge variety of mitigation and pre-vention techniques available totoday’s mining industry, it would bean extraordinary coincidence if anyas-yet un-designed mine used exactlythe set of mitigation/preventionstrategies that the EPA assumes in itshypothetical mine.
The EPA omits mitigation andprevention strategies that would elim-inate or significantly reduce theimpacts it predicts for its hypotheticalmine. These include such strategies
as dry tailings closure and moving the product by pipeline.The EPA’s hypothetical mine does not meet minimum
permitting standards because the design used by the agencyincludes no mitigation provisions for eliminating anadro-mous fish habitat and wetlands impacts. Waste rock cannotbe placed in such a creek under state or federal regulatorystandards. Accordingly the hypothetical mine as proposedby the EPA could not be permitted.
The EPA overestimates the realistic mine size. The habi-tat modification description in the assessment is a directconsequence of the mine size and location. As the EPAoverestimated the mine size for other mines, the habitatmodification impacts are significantly overestimated.
The watershed assessment lacks a realistic water budget.Therefore the water withdrawal impacts cannot be con-firmed, analyzed or disputed.
It is quite possible that mines within the watershedwould not be developed using a road. Therefore, the pre-dicted impacts from road construction and operation cannotbe taken as representing an impact of large-scale mining in
Mining & thelaw
The author,J.P. Tangen hasbeen practicingmining law in J.P. TANGENAlaska since 1975. He can be reached [email protected] or visit his Web site atwww.jptangen.com. His opinions do notnecessarily reflect those of the publishersof Mining News and Petroleum News.
see TANGEN page 13
13NORTH OF 60 MININGPETROLEUM NEWS • WEEK OF JULY 29, 2012
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crete strata bound lenses: the Lower Reef which outcropsand dips approximately 30 degrees to the northeast; and theUpper Reef lying roughly 150 meters above the LowerReef stratigraphy and which includes a small high-gradezone named the No.1 Orebody by Kennecott.Mineralization is hosted by a Devonian age carbonatesequence containing broad zones of silica-dolomite alter-ation and associated sulfide mineralization including bor-nite, chalcopyrite, chalcocite occurring as disseminationsand vein stockworks as well as crackle and mosaic brecciafill and locally massive to semi-massive replacement bod-ies. Four rigs are currently drilling at the project with thegoal of completing 15,000-18,000 meters of diamonddrilling in two principal areas: the South Reef and RubyCreek zones at Bornite and the Sunshine deposit, a satellitepolymetallic volcanogenic massive sulfide deposit located12 kilometers west of the Arctic volcanogenic massive sul-fide deposit where previous drilling identified significantintersections of massive sulfide mineralization in the samestratigraphic horizon as the Arctic deposit. The US$16.5million 2012 exploration program also consists of extensivesurface exploration of the roughly 18 kilometer long belt ofprospective carbonate stratigraphy adjacent to the Bornitedeposit. Two known mineralized occurrences (Aurora Mtn.and Pardner Hill) along with broad areas of hydrothermaldolomite and anomalous soil geochemistry occur along thebelt. Surface exploration will utilize 60+ line kilometers ofwide-spaced dipole/dipole induced polarization and radial
line down-hole IP and 25 line kilometers of soil sampling.ANDOVER MINING CORP. reported initial drilling
results from its 2012 drill program at the SUN copper-sil-ver-lead-zinc-gold volcanogenic massive sulfide project inthe Ambler District. Drill hole SUN 12-29 was the firstdrill hole of the 2012 drill program and returned 8.6 metersgrading 1.49 percent copper, 1.6 percent lead, 9.03 percentzinc, 66.2 g/t silver and 0.190 g/t gold from 71.9 to 80.5meters depth, 6.2 meters grading 2.73 percent copper, 1.27percent lead, 6.54 percent zinc, 116.4 g/t silver and 0.396g/t gold from 100.5 to 106.7 meters depth and 2.3 metersgrading 1.68 percent copper, 0.26 percent lead, 1.04 per-cent zinc, 48.9 g/t silver and 0.142 g/t gold from 130 to132.3 meters depth. Drilling continues on both the SUNand S.W. SUN deposits.
GOLDRICH MINING COMPANY and partnerNYACAU, LLC said they have received a placer miningpermit for the Chandalar project in the Brooks Range.Ground preparation has begun and the companies antici-pate the gold recovery plant will be set up by mid-August.Commercial production is anticipated to begin by June2013, although limited production could begin as early asthis summer. An eventual production rate of about 10,000ounces of fine gold per season for 25 years is anticipatedwith the option to increase this production rate by establish-ing a second gold recovery plant.
Southeast AlaskaGRANDE PORTAGE RESOURCES LTD. said it has
begun drilling at its Herbert Glacier gold project in theJuneau Gold Belt. The 2012 70-hole drill program will be
divided into two primary objectives deeper drilling on 25-meter spacings in order to convert inferred ounces into themeasured and indicated category and an additional 3000meters of relatively shallow drilling on four of the fiveprinciple vein structures. Each structure has a surfaceexpression of about 1,000 meters.
ARROWSTAR RESOURCES LTD. reported initialresults from its first exploration program on its Snettishamiron ore prospect about 30 miles southeast of Juneau. Tengrab samples were tested for magnetic separation using aDavis Tube Test methodology with recovering ranging upto 86.7 percent of the magnetite in pyroxenite host with anover-all iron content of 57. A bulk sampling program isplanned as the next step to concentrate the sampling inthese two areas to determine the extent of each occurrence.Proposals are being reviewed for a ground based magneticprogram that will be conducted prior to initial drill testing.
HEATHERDALE RESOURCES LTD. reported detailsof its planned 2012 exploration program at its Niblack vol-canogenic massive sulfide deposit. The 2012 program willbe staged from surface sites to test areas that could not beefficiently tested from existing underground workings. The15,000-foot program mainly targets the open extensions ofthe Lookout and Trio deposits, as well as focusing on sev-eral other key targets along the property’s six miles ofprospective felsic stratigraphy, which is known to host atleast six massive sulfide zones. Current resources compriseindicated resources of 5.6 million metric tons grading 0.95percent copper, 1.75 g/t gold, 1.73 percent zinc, 29.52 g/tsilver and an additional inferred resource of 3.4 millionmetric tons grading 0.81 percent copper, 1.32 g/t gold,1.29 percent zinc, 20.10 g/t silver. �
the watershed.The EPA proposes a specific road align-
ment and by implication construction tech-niques and then disparages them because ofthe environmental impacts they will cause.The obvious solution is to provide a higherlevel of design/construction standards toeliminate the impacts.
The EPA, incidentally, failed to reachthe same conclusions that it reached in theassessment with regard to two other mineroads it has approved.
Today’s mining practices are hugelymore protective of the environment thanthose of even 1990. Therefore, statisticalprediction from legacy mines does not rep-resent the statistical probability of failurefrom modern mines, nor does it representthe protective practices that the miningindustry uses today and that state and feder-al government agencies require.
The EPA’s lack of design details makesits analysis of water collection and treat-
ment failure events meaningless. Theagency does not evaluate any specific fail-ure modes or present data on similar fail-ures at other mines.
The analysis omits any discussion ofprevention and mitigation strategies. Minestypically have back-up systems in caseeffluent escapes from the primary contain-ment mechanism.
The analysis ignores Alaska’s excellentrecord of protecting water quality and fish.
Conclusions in the assessment’s execu-tive summary contradict the conclusions inthe body of the document. The analysis inthe assessment says, “The probability offailure cannot be estimated from the data,”but the executive summary says that theprobability of failure is “high.” There is nojustification in the body of the assessmentfor the conclusion stated in the executivesummary.
The EPA came to different conclusionsin other mine analyses. In environmentalimpact statements for at least two mines onwhich the EPA was the lead agency, it didnot even mention the risk. It is inconsistentof the EPA to conclude that the probability
of a water treatment and collection failureis “high” and the consequence of failuresevere, when the identical issue did noteven rise to the level of discussion in otherrecent analyses by the agency on the samesubject.
A pipeline may be required to develop amine at Pebble, but no other mine in Alaskauses a pipeline. Because most mines donot use a pipeline, the predicted pipelinerisks are unlikely to be representative of amine other than at the Pebble Project in theBristol Bay watershed.
The EPA’s hypothetical pipeline omitsobvious prevention and design strategies. Infact, some components of a mine are fixedand are difficult to change, but pipelinescan be designed to different standards. It isunclear why the EPA would design apipeline with an unacceptable risk and notinclude design changes to decrease the risk.
The EPA came to a different conclusionfor a potential mine pipeline at the RedDog Mine where the federal agency rec-ommended a pipeline. In that case theagency concluded that “it is highly unlikelythat the pipelines would be compromised.”
Not all mines have dams and, as theassessment states “[a]fter mine closure,[tailings ponds] can be drained eliminatingthe consequences of tailings dam failures.”Despite the potential to eliminate the risk,the EPA’s hypothetical mine uses a wet clo-sure to represent what it expects to be typi-cal of large-mine impacts in Alaska. Thepredicted impact from the EPA’s hypotheti-cal mine most likely does not representother as-yet-to-be designed mines in thewatershed, and may not represent the risksfrom a mine at the Pebble Project.
Numerous potential large mine loca-tions in the Bristol Bay watershed wouldhave significantly less risk than the loca-tion chosen for the EPA’s hypotheticalmine.
In brief, the EPA has generated a funda-mentally flawed work product that isspecifically intended to be used for a polit-ical purpose. The document deserves to bewithdrawn, and if a Bristol Bay watershedassessment actually is necessary andauthorized by law, it needs to be preparedwith vastly more professional care. �
continued from page 11
FREEMAN
continued from page 12
TANGEN
14NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
� A L A S K A
Niblack garners financial, local supportSecuring a C$4.4M financing, Heatherdale launches exploration at SE Alaska VMS project; eyes Ketchikan-area sites to set up mill
By SHANE LASLEYMining News
Despite owning a Pacific Rim deposit of gold, cop-per, zinc and silver worth some US$1.44 billion,
Heatherdale Resources Ltd. has not completely escapedthe financial paralysis gripping the junior mining sector.
While the value of Heatherdale’s stake of the Niblackproject has nearly doubled over the past year, its shareprice has plunged some 75 percent.
Notwithstanding, the Hunter Dickinson-affiliatedjunior has successfully pulled together the funds it needsto continue to advance the high-grade VMS deposits atNiblack toward pre-feasibility and permitting.
On July 17, Heatherdale raised C$4.4 million by sell-ing to Rathdowney Resources Ltd. – a fellow HunterDickinson company focused on zinc deposits in Polandand Ireland – 22 million shares at C20 cents per share.
Rathdowney – which now owns 18.4 percent of theissued voting shares of Heatherdale – said the privateplacement purchase is for investment purposes only.
“Rathdowney is fortunate in having a very strongtreasury in a very challenging market. The companycompleted a large financing when it went public in 2011,and we also have been able to advance drilling programsat Olza over the past year at a lower cost than anticipat-ed,” said Rathdowney President and CEO John Barry.“We also have adjusted our broader corporate strategy totake advantage of opportunities that arise under currentmarket conditions. Hence, we see this investment as acompelling opportunity for exposure to a quality projectlike Niblack, which is closer to production than Olza,with metal diversification but still with a common zinctheme. There is real value available in these depressedmarkets, and we are in the happy position to be able totake advantage while still having sufficient funds to con-tinue to advance our larger-scale Olza Project.”
With funding from its sister company, Heatherdalehas launched its 2012 drill program as it continues tocomplete the environmental baseline and engineeringwork need to complete a prefeasibility study by mid-2013.
Expanding the resourceA 1,000-meter exploration drift has provided
Heatherdale with great positioning for expanding theLookout and Trio deposits over the past three years, butas these zones are plunging deeper into LookoutMountain, the underground development is becomingless advantageous. To trace these zones deeperHeatherdale has laid out a series of surface holes on thebackside of Lookout Mountain.
“Upon reviewing all of the results from previousunderground drill programs, it became apparent that asurface drill program was the most effective way to off-set mineralized drill-hole intercepts and expand theresource,” explained Heatherdale President and CEOPatrick Smith.
Based on 373 holes drilled at Niblack through Nov. 4,the Lookout deposit now has an indicated resource of5.64 million metric tons averaging 1.75 grams per met-ric ton gold, 0.95 percent copper, 1.73 percent zinc and29.52 g/t silver.
Lookout and the nearby Trio zone contain an addi-tional inferred resource of 3.93 million metric tons aver-aging 1.32 g/t gold, 0.81 percent copper, 1.29 percentzinc and 20.1 g/t silver.
A US$50 net smelter return cut-off was used to cal-culate the resources.
Tucked within the lower reaches of the Lookoutdeposit, there is a zone of continuous high-grade miner-alization that, at a US$150 NSR cut off, contains 1.16million metric tons averaging 3.21 g/t gold, 1.71 percentcopper, 3.83 percent zinc and 62.28 g/t silver.
Heatherdale has five holes slated to expand theLookout deposit at depth. Hole U074 – which previous-ly pierced the Lookout resource expansion area beingtargeted by this year’s drilling – cut 1.46 meters averag-ing 3.3 g/t gold, 2 percent copper, 23 percent zinc and 90g/t silver.
In addition to the Lookout deposit, two holes will tar-get the Lookout West zone and six holes are investigat-ing the Trio deposit at depth.
This drilling is designed to add 1 million to 2 millionmetric tons of ore to the Niblack resource.
Key exploration targetsIn addition to expanding the Lookout and Trio
deposits, the some 4,600 meters of drilling planned for2012 will test several other key targets along a six-mile(10 kilometers) belt of prospective stratigraphy atNiblack.
“We were not able to access those important drilllocations last September due to poor weather condi-tions, so I am very pleased to finally get out there anddrill-test these obvious targets and demonstrate thisproperty’s further resource potential,” Smith said.
The mineralization at Niblack is hosted in a felsichorizon that was deposited on the seafloor some 565million years ago. This metals-rich stratum has beenfolded and deformed into the geometry thatHeatherdale is revealing through its exploration.
The Niblack Mine, Dama and Lindsy zones areplanned 2012 exploration targets along this prospectivestratum.
From 1905 to 1908 miners extracted some 20,000tons of ore averaging 4.9 percent copper, 2.2 g/t goldand 30 g/t silver from the historical Niblack Mine. Onehole is planned to test for additional high-grade VMSmineralization in this area.
Lindsy, the target of two exploration holes, is foundbetween Trio and the historical Niblack Mine.
see NIBLACK SUPPORT page 16
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15NORTH OF 60 MININGPETROLEUM NEWS • WEEK OF JULY 29, 2012
By ROSE RAGSDALEFor Mining News
Copper North Mining Corp. July 20reported that its application for a
five-year Type ‘A’ land use permit, sub-mitted in support of its 2012 explorationprogram at the Redstone Property inNorthwest Territories has been approvedby the Mackenzie Valley Land and WaterBoard.
A LUP has been granted to RedbedResources Corp., a wholly owned sub-sidiary of Copper North. The LUP willenable the company to conduct explo-ration activities on the Redstone propertyfor a period of five years from the date ofgrant.
The Redstone Property is located inthe Nahanni Mining District of NorthwestTerritories, some 290 kilometers (180miles) south of Norman Wells, Nwt. and300 kilometers (186 miles) north ofWatson Lake, Yukon Territory. TheRedstone property is comprised of a dis-continuous series of five mining leasesand 13 mineral claims stretching overabout 100 kilometers (62 miles) thatextend northwest-southeast for about 180kilometers (112 miles) in the NahanniMining District across known sedimenta-ry rock-hosted copper deposits.
The property covers a broad, remoteplateau of gentle relief which drops gen-tly to Silverberry River and is accessed byairplane, equipped with floats or skis.
Copper North reported that field crewshave been mobilized to a field campwhere the focus of 2012 exploration pro-gram – comprised of geological mapping,ground geophysics and geochemical sam-pling – is to test potential deposit exten-sions at a high-grade, stratiform copperdeposit at Coates Lake as well as toincrease the company’s understanding ofthe regional prospectivity of the projectby further exploring the known copperoccurrences in the claims located to thenorth of Coates Lake.
Strong historical evidenceIn May, Copper North reported com-
pletion of a review of a historical resourceestimate for the Coates Lake deposit atthe Redstone property that totals 33.4million metric tons grading 3.92 percentcopper for 2.9 billion pounds containedcopper and 11.3 g/t silver (0.33 oz/ton sil-ver) for 12.15 million troy ounces con-tained silver over a weighted true thick-ness of 3.27 feet is located on the CoatesLake mining leases.
The Redstone property was extensive-ly drilled between 1960 and 1980 byRedstone Mines Ltd. (geological map-ping and 45 diamond drill holes totaling6,902 meters); Cerro Mining Company ofCanada Ltd. (three diamond drill holestotaling 1,375 meters); and Shell CanadaResources Ltd. (eight diamond drill holesfor a total of 7,225 meters).
This historical resource estimate was
Cu29
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Copper North explores Redstone beltJunior works to confirm 33.4-million-metric-ton historical copper-silver resource; explore enticing targets on remote property
see REDSTONE BELT page 17
A pile of rocks rich in azurite, one of several indicator minerals for copper, on the RedstoneProperty in southern Northwest Territories where Copper North Mining Corp. is followingup on earlier exploration this summer.
CO
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From the historical mine, the mineral-ization appears to turn sharply to thesoutheast and surface geochemistry sug-gests it may continue for at least 5,000meters in this direction. A historical holedrilled in the Dama zone – located about2,000 meters along this projected path –cut 19.2 meters averaging 6.4 percentcopper, 1.37 g/t gold, 53 g/t silver and3.2 percent zinc.
Smith told Mining News that Dama isa high-priority exploration target.
Nowhere for the millWhile geologists continue to expand
the resource at Niblack, engineers aredesigning a mine and mill to process thegold-copper-zinc-silver ore. Heatherdalecurrently anticipates a 1,500- to 2,000-metric-ton-per-day operation – of similarscale to Hecla Mining Co.’s GreensCreek silver mine near Juneau.
Finding a place to put the mill is oneof the primary obstacles engineers needto overcome. With the slopes of LookoutMountain plunging steeply into the
Niblack Anchorage, there is little roomfor the mill and associated infrastructure.
Instead of attempting to master thechallenging topography, Heatherdale isconsidering barging ore to an offsitelocation.
Two of the three locations identifiedfor a mill and tailings storage facility areindustrial sites near the community ofKetchikan, some 40 miles (65 kilome-ters) to the northeast.
Gravina Island – the location of oneof the industrial sites under considera-tion – was made famous by the proposed“Bridge to Nowhere.” This span acrossthe passage between Ketchikan and itsairport became a poster-child for exces-sive government spending.
While a bridge does not link Gravinato Ketchikan, regular ferry service couldtransport mill workers from theSoutheast Alaska town to the proposedmill site. If the processing facilities werepositioned at the industrial park, thelower cost hydroelectricity availablethere is expected to help offset some ofthe costs of transporting the ore.
Heatherdale foresees the need forsome 11.5 megawatts of power to operatea mine and mill at Niblack.
“While it’s early days, we believeNiblack will require the provision ofsome 3.5 megawatts of power to operatea 1,500- to 2,000-ton-per-day under-ground mine, and another 8 megawatts tooperate a mill and processing plant,”according to Smith.
Heatherdale has entered talks withAlaska officials regarding financing itsenergy and infrastructure needs throughthe Alaska Industrial Development andExport Authority.
The state-owned development corpo-ration – which has a mission to promoteeconomic growth and diversification inAlaska by providing various means offinancing and investment – has helpedbuild other mining-related infrastructurein the state.
Notable AIDEA projects include theDeLong Mountain TransportationSystem (road and port facilities utilizedby the Red Dog Mine in NorthwestAlaska) and the Skagway Ore Terminal.
“We are working with local communi-ties and mine developers on infrastruc-ture projects throughout Alaska, includ-ing port facilities and energy supply,”said AIDEA spokesman Karsten Rodvik.“We are interested in the development of
the Niblack project and an associatedmill in the Ketchikan area because theseprojects could have a positive economicimpact in the region and would create asignificant number of highly skilledyear-round jobs.”
Local supportKetchikan, a logging town of some
8,000 people, has been seeking a newsource of employment since the demiseof the timber industry in the region.
“In Southeast Alaska, where the fed-eral government has decimated timberjobs, the private sector is establishing abeachhead of opportunity there for newjobs,” Alaska Gov. Sean Parnell said,referring to Heatherdale and other min-eral companies in the region.
Since becoming involved withNiblack in 2009, Heatherdale has main-tained a commercial partnership with thePrince of Wales Tribal EnterpriseConsortium – owned by the Craig TribalAssociation and the Organized Village ofKasaan – to assist with supplying themanpower needs at Niblack.
Through POWTEC, Heatherdale hastrained and employed some 36 local peo-ple over the past three years.
“From the outset, Heatherdale hasmade it clear that it wants its mineraldevelopment activities on Prince ofWales Island to benefit local people andcommunities through local hire and con-tracting,” said POWTEC CEO Bill Cole.“The economic development and part-nership opportunities that this projectrepresents for our company, our employ-ees and shareholders, and all ofSoutheast Alaska, are really tremen-dous.”
Smith said the residents of Prince ofWales Island and surrounding communi-ties in Southeast Alaska are largely sup-portive of Heatherdale’s efforts toadvance Niblack toward development.
“In June 2012, I attended a three-dayevent, called the Prince of Wales Island-Wide Mining Symposium II, put on bythe Organized Village of Kasaan – aforum that was focused on opportunitiesfor economic development,” said theHeatherdale CEO. “From that forum andmany other engagements we’ve had inthe region, it is abundantly clear thatthere is strong local support for responsi-ble resource development in SoutheastAlaska. We are proud to be working inpartnership with local communities andlocal people to deliver a project thatmeaningfully addresses their prioritiesand concerns.”
In addition to support from local resi-dents, state and local lawmakers have puttheir weight behind the development ofNiblack.
A bill to authorize the establishmentof a Niblack mining-area road corridorwas introduced in the U.S. Congress lastJune by Sen. Lisa Murkowski, R-Alaska, and co-sponsored by Sen. MarkBegich, D-Alaska. The road initiative isthe result of a grassroots effort led by thecommunities on Prince of Wales Island.
The Niblack Project has also receivedsupport from elected officials, businessand community leaders throughoutSoutheast Alaska as a potential solutionto the employment and economic chal-lenges facing the region.
“We gratefully acknowledge the sup-port and proactive involvement of localcommunities, political leaders and gov-ernment agencies like AIDEA,” Smithsaid. “For its part, Heatherdale is com-mitted to continuing to work with thepeople of Southeast Alaska to find waysto optimize local benefits associatedwith development at Niblack.” �
We do the digging, you get the gold.From the informative News Nuggets in the comprehensive yet conciseweekly online newsletter to the in-depth analysis provided in the monthlyedition, North of 60 Mining News provides its readers with the most complete coverage available of the issues and events important to miningin Alaska and Canada’s Far North.
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16NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
continued from page 14
NIBLACK SUPPORT
17NORTH OF 60 MININGPETROLEUM NEWS • WEEK OF JULY 29, 2012
calculated in 1978 by Shell CanadaResources Ltd. and was based upon anunpublished report to Shell entitled“Redstone Project, Progress ReportMarch 1978. Drill Results as of August,1977 and Recommendations for the 1978Field Season, Nahanni Mining Division”by A.R., Hildebrand, March 9, 1978. Thehistorical resource estimate prepared byShell was not created using “Standards ofDisclosure for Mineral Projects” as out-lined in National Instrument 43-101.
In 2005, however, a technical report byA.W. Gourlay (P.Geol) titled “TechnicalReport on the Coates Lake CopperDeposit, Nahanni Mining District,Western Northwest Territories for LuminaResources Corp.,” referred to the histori-cal resource estimate from the report forShell. According to the report, Gourlayconsidered the calculation of the estimateby Shell to conform with requirements ofan inferred resource as defined by NI 43-101.
In 1990 Redstone Mines Limited car-ried out a complete data review alongwith confirmation mapping, identifica-tion of drill targets and location of poten-tial drill sites.
In 2005 Lumina Resources Corp. com-pleted an exploration program and aregional geological evaluation of theRedstone copper belt.
Need for more drillingWestern Copper Corp. acquired
Lumina Resources in November 2006,and spun out the Redstone property intoCopper North along with its Carmackscopper project in central Yukon inOctober. Copper North expects to com-plete a feasibility study for the CarmacksProject in the third quarter, which willsubsequently enable it to complete andsubmit a revised project proposal to theYukon Environmental and Socio-eco-nomic Assessment Board. An earlier pro-posal by Western Copper was rejected bythe Yukon Water Board in 2010 though ithad been approved by YESAB.
At the Redstone property, no explo-ration drilling has been conducted sincethe Shell drill program in 1977, whichwas successful in proving the continuityof the mineralized beds to depth.
Copper North said it does not considerthe historical resource estimate as currentand further drilling is recommended inorder upgrade the historical resource esti-mate at the Coates Lake deposit.Confirmation drilling is required to verifythe historic drill-hole data; once data ver-ification has been achieved, drill-holelines and spacing would be reduced toabout 1,000 meters apart.
Talks with First NationsLocal community engagement in the
Northwest Territories was initiated byCopper North in early 2012, in advance ofthe submission of its application for a landuse permit.
In the Sahtu Region, the company hascompleted a traditional knowledge study,conducted in partnership with the TulitaRenewable Resources Council, the FortNorman Metis Land Corporation, theTulita Land and Financial Corporation, andthe Tulita District Land Corporation. In theDehcho Region, the company has met withboard representatives of the Pehdzeh KiFirst Nation Development Corporation aswell as senior representatives of the LiidliKue First Nation, Fort Simpson (FortSimpson is the regional centre of theDehcho).
In a July 20 statement, Copper North
President and CEO Sally Eyre, Ph.D., said,“I am very satisfied with our progress aswe continue to systematically advanceCarmacks and Redstone. Efficient pro-cessing of the Redstone LUP applicationhas enabled us to successfully execute our2012 exploration program, and as a result,we are able to start planning field activitiesfor 2013.”
Promising mineral claims Eyre said the Coates Lake mining leas-
es represent a small proportion of the totalarea of mineral claims within the RedstoneProperty.
“Our planned field program this sum-mer will further investigate the potentialfor extensions to the stratiform mineralizedbeds within the Transition zone,” sheexplained.
The geophysical work this season willinclude induced polarization surveys andadditional ground-based extremely-lowfrequency-electromagnetic surveys. Theprogram is focusing on assessing the later-al and vertical extent of copper mineraliza-tion around known mineral occurrencesand newly-delineated prospective areas.The geophysical surveys are being guidedby detailed geological mapping of thestructures and stratigraphy that control thelocation of copper mineralization.
Previous field work has been successfulin identifying stratiform copper mineral-ization, structures and stratigraphy usingIP surveys at the Coates Lake deposit.Further exploration is intended to locatepotential chargeability and resistivityanomalies associated with copper mineral-ization, particularly in areas that are cov-ered by overburden.
Copper North said the ground-basedELF-EM system is highly portable, requir-ing no cut grids or wire loops and is a low-cost means of providing electrical resistiv-ity data to depths of up to one to two kilo-meters. The ELF-EM data is relativelyrapid to collect and will allow follow-up IPsurveys to be more strategically locat-ed. The junior has been working closelywith the Mineral Deposit Research Unit of
the University of British Columbia toimprove regional- and deposit-scale explo-ration strategies at Redstone. The collabo-ration has enabled the company to plan afocused field campaign, which will prima-rily test potential deposit extensions at theCoates Lake deposit; as well as significant-ly increase the explorer’s understanding ofthe regional prospectivity of the project.
Subhed: Seeking drill targetsThe 2012 exploration program will
focus on the Coates Lake deposit, JohnsonVein, Hayhook Basin and Hidden Valleyareas of the property. The key objectives ofthe program include testing the potentialextensions to the Coates Lake deposit by IPand ELF-EM ground geophysical surveysand geochemical surveys; conducting soilgeochemical surveys, biogeochemical sur-veys, IP surveys and ELF-EM surveys onthe Johnson Vein, Hayhook Basin andHidden Valley claims and leases; anddefining new regional exploration targetsby prospecting and stream sediment sam-pling. The Coates Lake deposit is locatedwithin the southeastern portion of theRedstone property, about 116 kilometers(71 miles) northeast of North AmericanTungsten Corporation Ltd.’s Cantung Minelocated near the Yukon border in southwestNorthwest Territories.
Copper mineralization at Coates Lake isprimarily a high-grade, laterally continu-ous zone that has a 6,100-meter north-south strike length that extends down-dipto the west for at least 2,400 meters. Thedeposit is inferred to be open to the north,where the prospective stratigraphy isbelieved to extend beyond the limit of his-toric drilling beneath the cover of glacialsediments, and it is inferred to be open atdepth to the west and southwest.
Mineralization is disseminated through-out the Coates Lake Group and RapitanFormation, but the most economically sig-nificant mineral occurrences are found inthe Transition Zone (a sequence of rocksup to 110 meters thick, containing up toeight copper-bearing beds). At the CoatesLake deposit, the lowermost bed (B1) hasthe highest grades, although the third bed(B3) has the greatest thickness.
Mineralization of the B1 bed at CoatesLake comprises disseminated, inter-grownchalcocite-bornite assemblages with localoccurrences of bornite-chalcopyrite in thesoutheast.
Encouraging samplesThe Hayhook Basin located about 80
kilometers (50 miles) north-northwest ofCoates Lake has more than 10 known cop-per occurrences and contains the prospec-tive stratigraphy for laterally-continuous,reduced-facies, stratiform copper-silverdeposits. Much of the prospective stratig-raphy in the Hayhook Basin is covered byglacial sediments. Field work this season isintended to target potential anomalies asso-ciated with bedrock mineralization underthe overburden. Grab samples of chal-cocite-rich dolostone from the 2010 fieldseason have returned grades of over 13.8percent copper and 15.6 g/t silver. TheJohnson Vein is a carbonate rock-hosted,fault-related, polymetallic vein copper-sil-ver-zinc-nickel-cobalt occurrence locatedon a lease about 40 kilometers (25 miles)north-northwest of Coates Lake. Two grabsamples from the 2011 field season takenfrom historic trenches of massive to semi-massive sulphide rock, returned grades of16.25 percent copper, 21.1 g/t silver, 0.07percent zinc, 0.16 percent nickel, 0.026percent cobalt; and 20.1 percent copper,123 g/t silver, 0.16 percent zinc, 0.23 per-cent nickel, 0.041 percent cobalt. TheJohnson Vein has never been drilled andcan be traced laterally as talus for at least450 meters. The Hidden Valley lease,located about 30 kilometers (19 miles)north-northwest of Coates Lake, covers anarea that contains vuggy, hydrothermaldolomite-calcite-quartz-tetrahedrite-chal-copyrite-pyrite breccias that are related tofaults within carbonate rocks. Copper sul-phides occur as massive lenses, pods ordisseminated tetrahedrite-chalcopyrite.Although not representative of the brecciarock mass as a whole, samples of massivetetrahedrite lenses from the 2011 field sea-son returned grades as high as 35 percentcopper, 1,800 g/t silver, 0.65 percent zincand 0.45 percent bismuth. Copper Northhas said the potential quality and grade ofthe mineral occurrences at Hayhook Basin,Johnson Vein and Hidden Valley are con-ceptual in nature because exploration hasbeen insufficient to date to define mineralresources, and it is uncertain whetherfuture exploration will result in the targetsbeing delineated as mineral resources.
Geological similaritiesThe junior also said the Coates Lake
deposit and Hayhook Basin copper occur-rences are situated within the 300-kilome-ter- (186 miles) long and 15-kilometer- (9miles) wide Redstone Copper Belt which isgeologically similar to the large, well-known copper deposits of theKupferschiefer in north-central Europe andthe copper deposits of the Central AfricanCopper Belt in the Republic of Zambia andDemocratic Republic of Congo.
Copper occurrences at the Johnson Veinand Hidden Valley properties, also withinthe Redstone Copper Belt, exhibit differentcharacteristics and can be classified as car-bonate-hosted, polymetallic copper-silver-zinc-bismuth-cobalt deposits, according toCopper North.
The junior’s exploration program isbeing supervised by Jack Milton, M.Sc, aUniversity of British Columbia Ph.D. can-didate currently working on the RedstoneCopperbelt project. The 2012 explo-ration program is expected to cost aboutC$800,000. Copper North had a cash bal-ance of C$1.88 million as at Dec. 31, andJune 1 reported that it raised about C$1million in a private placement. �
continued from page 15
REDSTONE BELT
CO
PPER
NO
RTH
MIN
ING
CO
RP.
Geologists canvass a slope on the Redstone Property in southern Northwest Territories.Copper North Mining Corp. is exploring the copper-rich area in hopes of confirming histori-cal resource estimates and identifying new exploration targets.
Mining Companies
Kinross Fort Knox/Fairbanks Gold Mining Inc.Fairbanks, AK 99707Contact: Lorna Shaw, Government and CommunityRelations ManagerPhone: (907) 490-2218 Fax: (907) 490-2250E-mail: [email protected]: www.kinross.comLocated 25 miles northeast of Fairbanks, Fort Knox isAlaska’s largest producing gold mine; during 2011, FortKnox achieved 5 million ounces of gold produced, amodern record in Alaska mining.
Kiska MetalsSuite 575 – 510 Burrard StreetVancouver, BC, Canada V6C 3A8Contact: Jason Weber: President and CEOContact: Dustin Henderson: Investor RelationsPhone: (604) 669-6660Fax: (604) 669-0898Email: [email protected]: www.kiskametals.comGold and Copper projects in Alaska, BC, and Australia.
Usibelli Coal MineFairbanks, AK 99701Contact: Bill Brophy, vp cust. relationsPhone: (907) 452-2625 • Fax: (907) 451-6543Email: [email protected] • Web site: www.usibelli.comOther OfficeP. O. Box 1000 • Healy, AK 99743Phone: (907) 683-2226Usibelli Coal Mine is headquartered in Healy, Alaskaand has 200 million tons of proven coal reserves.Usibelli produced one million tons of sub-bituminouscoal this year.
Service, Supply & Equipment
Air LiquideAnchorage, AK 99518Contact: Brian BensonPhone: (907) 273-9762 • Fax: (907) 561-8364Email: [email protected] Liquide sells, rents, and is the warranty station forLincoln, Miller, Milwaukee, Victor and most other weld-ing equipment and tool manufacturers.
Alaska Air Cargo • Horizon Air CargoP.O. Box 68900 SEAFZ
Seattle, WA 98168Contact: Joe Sprague, Vice President of CargoPhone: (206) 392-2705 or 800-2ALASKAFax: (206) 392-2641E-mail: [email protected]: www.alaskacargo.comAward winning cargo services to more places, moreoften, with more lift to, from, and within the state ofAlaska.
Alaska Analytical Laboratory1956 Richardson HighwayNorth Pole, AK 99705Phone: (907) 488-1266 • Fax: (907) 488-077E-mail: [email protected] analytical soil testing for GRO, DRO,RRO, and UTEX. Field screening and phase 1 and 2 siteassessments also available.
Alaska Earth SciencesAnchorage, AK 99515Contact: Bill Ellis, Rob Retherford, ownersPhone: (907) 522-4664 • Fax: (907) 349-3557E-mail: [email protected] full service exploration group that applies earth sci-ences for the mining and petroleum industries provid-ing prospect generation, evaluation and valuation,exploration concepts, project management, geographicinformation systems and data management. We alsoprovide camp support and logistics, geologic, geochem-ical and geophysical surveys.
Alaska Frontier ConstructorsP.O. Box 224889Anchorage, AK 99522-4889Contact: John Ellsworth or Chris LedgerwoodPhone: (907) 562-5303Fax: (907) 562-5309E-mail: [email protected]: akfrontier.comAlaskan heavy civil construction company specializingin Arctic and remote site development with theexperience, equipment and personnel to safely andefficiently complete your project.
Alaska Interstate Construction (AIC)301 W. Northern Lights Blvd., Suite 600Anchorage, AK 99503Contact: Fred HargravePhone: (907) 562-2792 • Fax: (907) 562-4179Email: [email protected]: www.aicllc.comAIC provides cost-effective solutions to resource devel-
opment industries. We provide innovative ideas tomeet each requirement through the provision of best-in-class people and equipment coupled with exception-al performance..
Alaska Steel Co.1200 W. DowlingAnchorage, AK 99518Contact: Joe Pavlas, outside sales managerPhone: (907) 561-1188Toll free: (800) 770-0969 (AK only)Fax: (907) 561-2935E-mail: [email protected] Fairbanks Office:2800 South CushmanContact: Dan Socha, branch mgr.Phone: (907) 456-2719 • Fax: (907) 451-0449Kenai Office:205 Trading Bay Rd.Contact: Will Bolz, branch mgr.Phone: (907) 283-3880 • Fax: (907) 283-3759Rebar Division1200 W. DowlingAnchorage, AK 99518Contact: Mike Galyon, rebar mgr.Phone: (907) 561-1188 • Fax: (907) 562-7518Full-line steel, aluminum, and rebar distributor.Complete processing capabilities, statewide service.Specializing in low temperature steel and wear plate.
Alaska Telecom6623 Brayton Dr.Anchorage, AK 99507Contact: Kevin Gray or Martin StewartPhone: (907) 344-1223Fax: (907) 344-1612E-mail: [email protected] or [email protected]: www.alaskatelecom.comProviding telecommunications support to oil explo-ration and production companies and contractors.Satellite communications, voice, data, microwave,VHF/UHF radio, engineering and installation.
Arctic FoundationsAnchorage, AK 99518-1667Contact: Ed YarmakPhone: (907) 562-2741 • Fax: (907) 562-0153Email: [email protected]: www.arcticfoundations.comSoil stabilization – frozen barrier and frozen core dams
Companies involved in Alaska andnorthwestern Canada’s mining industry
D I R E C T O R Y
The Red Dog mine in northwest Alaska.
19NORTH OF 60 MININGPETROLEUM NEWS • WEEK OF JULY 29, 2012
to control hazardous waste and water movement.Foundations – maintain permafrost for durable highcapacity foundations.
Aurora Geosciences3506 MacDonald Dr.Yellowknife, NT Canada X1A 2H1Contact: Corey SegboerPhone: (867) 920-2729Email: [email protected]: www.aurorageosciences.comGeological, geophysical and exploration support servic-es.
Austin Powder CompanyP.O. Box 8236Ketchikan, AK 99901Contact: Tony Barajas, Alaska managerPhone: (907) 225-8236 • Fax: (907) 225-8237E-mail: [email protected] site: www.austinpowder.comIn business since 1833, Austin Powder providesstatewide prepackaged and onsite manufactured explo-sives and drilling supplies with a commitment to safetyand unmatched customer service.
Calista Corp.301 Calista Court, Suite AAnchorage, AK 99518Phone: (907) 279-5516 • Fax: (907) 272-5060Web site: www.calistacorp.com
Chiulista Services Inc.6613 Brayton Dr., Ste. CContact: Joe Obrochta, presidentContact: Monique Henriksen, VPPhone: (907) 278-2208 Fax: (907) 677-7261Email: [email protected] 100 percent Alaska Native owned and operatedcatering company at the Donlin Creek Prospect andwith North Slope experience, catering and housekeep-ing to your tastes, not ours; providing operations andcamp maintenance.
Construction Machinery Industrial, LLC5400 Homer DriveAnchorage, AK 99518Contact: Robert Fairbanks, Sales ManagerPhone: (907) 563-3822Fax: (907) 563-1381Email: [email protected]: www.cmiak.com
ERA Helicopter6160 Carl Brady DriveAnchorage, AK 99502Contact: David Sell, Business Development AlaskaPhone: (907) 550-8607Fax: (907) 550-8608E-mail: [email protected]: www.erahelicopters.comHelicopter charters, flight-seeing tours, aerial photogra-phy, oil and gas support, mineral exploration, construc-tion, seismic remote site work, internal and externalload, heli-hiking and sled-dog adventures.
Everts Air Cargo6111 Lockheed AvenueAnchorage, AK 99502Phone: (907) 249-4317Fax: (907) 248-0458Contact: Paul Abad, Sales ManagerE-mail: [email protected]: www.evertsair.comAn Alaskan owned and operated air carrier that pro-vides scheduled freight service to 12 bush communi-ties & charter service to anywhere in Alaska withsuitable runway conditions. Passenger Charters, HAZ-MAT, bulk fuel, small package, oversized. Based inAnchorage & Fairbanks.
GCI Industrial TelecomAnchorage:11260 Old Seward Highway Ste. 105Anchorage, AK 99515Phone: (907) 868-0400Fax: (907) 868-9528Toll free: (877) 411-1484Web site: www.GCI-IndustrialTelecom.comRick Hansen, [email protected] Johnson, Business Development [email protected]:Aurora Hotel #205Deadhorse, Alaska 99734Phone: (907) 771-1090Mike Stanford, Senior Manager North [email protected], Texas:8588 Katy Freeway, Suite 226Houston, Texas 77024Phone: (713) 589-4456Hillary McIntosh, Account [email protected] Industrial Telecom provides innovative solutions tothe most complex communication issues facing industri-
al clientele. We deliver competitive services, reputableexpertise and safely operate under the most severeworking conditions for the oil, gas and natural resourceindustries. GCI-your best choice for full life cycle, expert,proven, industrial communications.
Jackovich Industrial & Construction SupplyFairbanks, AK 99707Contact: Buz JackovichPhone: (907) 456-4414 • Fax: (907) 452-4846Anchorage officePhone: (907) 277-1406 • Fax: (907) 258-170024- hour emergency service. With 30 years of experi-ence, we’re experts on arctic conditions and extremeweather.
Judy Patrick Photography511 W. 41st Ave, Suite 101Anchorage, AK 99503Contact: Judy PatrickPhone: (907) 258-4704Fax: (907) 258-4706E-mail: [email protected]: www.judypatrickphotography.comCreative images for the resource development indus-try.
Last Frontier Air Ventures39901 N. Glenn Hwy. Sutton, AK 99674Contact: Dave King, ownerPhone: (907) 745-5701Fax: (907) 745-5711E-mail: [email protected] Base (907) 272-8300Web site: www.LFAV.comHelicopter support statewide for mineral exploration,survey research and development, slung cargo,video/film projects, telecom support, tours, crew trans-port, heli skiing. Short and long term contracts.
LyndenAlaska Marine Lines • Alaska Railbelt MarineAlaska West Express • Lynden Air CargoLynden Air Freight • Lynden InternationalLynden Logistics • Lynden TransportAnchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544 • Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden companies includestruckload and less-than-truckload highway connections,scheduled barges, intermodal bulk chemical hauls,scheduled and chartered air freighters, domestic andinternational air forwarding and international sea for-warding services.
MRO SalesAnchorage, AK 99518Contact: Don PowellPhone: (907) 248-8808 • Fax: (907) 248-8878Email: [email protected]: www.mrosalesinc.comMRO Sales offers products and services that can helpsolve the time problem on hard to find items.
Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Mark Liland, acct. mgr. Anch./Prudhoe BayPhone: (907) 249-5149 • Fax: (907) 249-5194Email: [email protected] • Website: www.nac.aeroServing the aviation needs of rural Alaska for almost 50years, NAC is the states largest all cargo carrier movingnearly 100 million pounds of cargo on scheduled flightsto 17 of Alaska’s busiest airports. NAC’s fleet of DC-6, B-727, and ATR-42 aircraft are available for charters toremote sites and flag stops to 44 additional communi-ties.
Pacific Rim Geological ConsultingFairbanks, AK 99708Contact: Thomas Bundtzen, presidentPhone: (907) 458-8951Fax: (907) 458-8511Email: [email protected] mapping, metallic minerals exploration andindustrial minerals analysis or assessment.
PND Engineers Inc.1506 W. 36th Ave. Anchorage, AK 99503Phone: (907) 561-1011Fax: (907) 563-4220Website: www.pndengineers.comFull-service engineering firm providing civil, structural,and geotechnical engineering, including mining sup-port, resource development, permitting, marine andcoastal engineering, transportation engineering,hydrology, site remediation, and project management.
TTT Environmental LLC 4201 “B” St.Anchorage, AK 99503Contact: Tom Tompkins, general managerPhone: 907-770-9041 • Fax: 907-770-9046Email: [email protected]: www.tttenviro.comAlaska’s preferred source for instrument rentals, sales,service and supplies. We supply equipment for air mon-itoring, water sampling, field screening, PPE and more.
Taiga Ventures2700 S. CushmanFairbanks, AK 99701Mike Tolbert - presidentPhone: 907-452-6631 • Fax: 907-451-8632Other offices:Airport Business Park2000 W. International Airport Rd, #D-2Anchorage, AK 99502Phone: 907-245-3123Email: [email protected] site: www.taigaventures.comRemote site logistics firm specializing in turnkeyportable shelter camps – all seasons.
Total Safety U.S. Inc.209 E. 51st Ave.Anchorage, AK 99503Contact: Tyler Zollinger, District Manager.Phone: (907) 743-9871Fax: (907) 743-9872E-mail: [email protected]: www.totalsafety.comA full service safety company specializing in RemoteMedical Services, H2S Services, Industrial Hygiene, andSafety Consultants. Total Safety provides Service, Rental,or Sales of Safe Breathing Air, Gas Detection, andTechnical Safety Equipment.
URS Corp.700 G Street, Suite 500Anchorage, AK 99501Contact: Joe Hegna, Alaska Vice President/AlaskaOperations ManagerPhone: (907) 562-3366Fax: (907) 562-1297E-mail: [email protected]: www.urscorp.comProvide engineering, construction and technical serviceswith capabilities to support all stages of project lifecycle. We offer a full range of program management;planning, design and engineering; construction andconstruction management; operations and mainte-nance; and decommissioning and closure services.
Advertiser IndexAir LiquideAlaska Airlines CargoAlaska Analytical Laboratory. . . . . . . . . . . . . . . . . . 3Alaska DreamsAlaska Earth Sciences . . . . . . . . . . . . . . . . . . . . . . . . 8Alaska Frontier Constructors . . . . . . . . . . . . . . . . . 10Alaska Interstate Construction (AIC). . . . . . . . . . . 23Alaska Steel Co.Arctic FoundationsAurora Geosciences. . . . . . . . . . . . . . . . . . . . . . . . . . 9Austin Powder Co.Calista Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 11,13,15Chiulista Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Constantine Metal ResourcesConstruction Machinery . . . . . . . . . . . . . . . . . . . . . 24Everts Air CargoFairbanks Gold Mining/Fort Knox Gold Mine. . . 12GCI Industrial Telecom . . . . . . . . . . . . . . . . . . . . . . 13General Refining Corp.Jackovich Industrial & Construction Supply. . . . . 22Judy Patrick Photography . . . . . . . . . . . . . . . . . . . . 5Kiska MetalsLast Frontier Air Ventures. . . . . . . . . . . . . . . . . . . . . 5Lynden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2MRO SalesNature Conservancy, The . . . . . . . . . . . . . . . . . . . . 21Northern Air CargoPacific Rim Geological Consulting . . . . . . . . . . . . . . 5PND Engineers Inc.Salt+Light CreativeSourdough Express Inc.Taiga Ventures/PacWest Drilling Supply . . . . . . . . 9Total Safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3URS Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Usibelli Coal Mine
20NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
The junior, formerly EthosCapital, planned a C$7.3-million,16,000-meter exploration programthis season for its Betty gold projectlocated next door to the Coffeeproject in the White Gold district.
Ethos June 26 reported assayresults from 22 drill holes, repre-senting the first half of the plannedreconnaissance phase 1 drill pro-gram at the Betty property. TheseRC holes tested five sub-areas ofthe 17-square-kilometer (4,200acres) Mascot Creek gold-in-soilanomaly that yielded prospectingrock grab samples up to 24.8 g/tgold and intervals in trench pitswith the best result averaging 7.3g/t gold over 50 meters.
Intervals of intense alterationcontaining gold mineralization havebeen discovered in all five sub-areas of the Mascot Creek anomalytested. The best results to date occurin BETR-022 which cut 7.1 g/t goldand 209 g/t silver over 13.7 metersat the Marshall target and in BETR-012 which 29.8 g/t gold over 3.1meters at the Perrault target. Truewidth is unknown for all intercepts.
“We are excited to have madeseveral new and substantial golddiscoveries during the first drill testprogram on the Betty Property,which is confirmed to have poten-tial to host large gold deposits,”said Ethos President and CEO GaryFreeman. “We are looking forwardto continued success, as the drillcompletes the remainder of thereconnaissance program and beginsfollow-up drilling in July.”
At June 26, a total of 30 of 44planned phase 1 holes had beencompleted using an RC drill rigcontracted from NorthspanExplorations Ltd. The RC rig com-pletes an average of one hole perday to an expected target depth of150 meters. All holes have beendrilled at a 50-degree angle. Truewidth is unknown for all intercepts.About 4,000 meters of drilling hadbeen completed, and 3,000 samplesweighing some 6 metric tons havebeen submitted for assay. The drillprogram is currently operating onschedule and under budget. Theprincipal objective of phase 1reconnaissance drilling is to identi-fy gold grades over width inbedrock beneath gold-bearing sur-face trench pits or anomalous goldsoils.
Most RC holes to date haveintersected limonite and clay alter-ation and arsenopyrite mineraliza-tion, with or without quartz veiningand silicification. There appears tobe several phases of progressive oroverprinting alteration and mineral-ization which is a very positiveexploration indication. Some holeshave intersected mineralizedandesite and felsite dykes withinalteration zones. A total of 14 of 22holes so far have gold-bearingintervals. “The sizeable intersec-tions of both higher and lower goldgrades, as well as the presence ofintense widespread alteration isvery encouraging at this early stageof exploration,” observed EthosCOO Peter Tallman. �
continued from page 7
YUKON PROSPECTSgold-molybdenum project in 2012, with the objective of prepar-ing to initiate permitting under NEPA – a process estimated tobegin by mid-2013.
The EPA contends that it has not decided whether it willattempt to circumvent Pebble’s permit application.
“Our goal is the finalization of a robust, technically soundassessment. Only upon its completion will the agency examineregulatory options, including application of 404(c), if appropri-ate,” Jackson wrote in letter to Sen. Murkowski.
Unprecedented moveEPA has exercised its CWA 404(c) veto authority only a
handful of times in the past and never before a permit was filed.Geraghty is one of many to point out that the absence of a
CWA 404 permit application by Pebble precludes EPA’s author-ity to veto.
The environmental agency believes the federal water regu-lations provide it with the authority to take this unprecedentedaction, a power that worries resource development advocates.
“Our members are fearful that once this precedent is estab-lished, EPA will exercise its misguided pre-emptive strike toattempt to control land use and block resource and infrastruc-ture development where it has neither the mandate nor theauthority to do so,” Resource Development Council for AlaskaExecutive Director Rick Rogers testified on June 4.
“If the EPA were to deny any project access to the state andfederal permitting process, such action would be an assault onAlaska sovereignty,” he added.
Rogers’ concerns of an over-reaching federal agency wereshared by a sizable crowd who attended the EPA hearing wear-ing “Hands off of Alaska” pins.
Alaskans are not the only ones that believe the EPA is over-stepping its bounds. The U.S. House Committee on Oversightand Governmental Reform is also keeping an eye on the direc-tion the agency is taking in Bristol Bay.
“Logic dictates that the merits of a project should be deter-mined only after its proprietors complete the NEPA analysisand Section 404 permit application process,” OversightChairman Darrell Issa, R-Calif., and subcommittee chairmanJim Jordan, R-Ohio, wrote in a May letter to EPA AdministratorJackson.
The watchdog panel questioned the environmental agency’slegal authority to make a CWA 404 determination before per-mits are sought.
Responding to the oversight committee’s concerns, EPAAssociate Administrator Arvin Ganesan wrote, “TheAdministrator is provided broad authority under the statute toprohibit or otherwise restrict a site ‘whenever [she] determines’that the discharge of dredged or fill material ‘will have an unac-ceptable adverse effect’ on municipal water supplies, shellfishbeds and fishery areas (including spawning and breedingareas), wildlife, or recreational areas.”
In a July 19 staff report, the House Oversight Committeeinformed the public that, “It appears that the EnvironmentalProtection Agency is considering using an unprecedented andlegally questionable interpretation of the Clean Water Act topre-emptively veto permits for the Pebble Project. In apparent
preparation of this veto, EPA released a draft WatershedAssessment on May 18, 2012. This watershed assessment maybe used as justification to deny permits to the Pebble Minebefore a plan is even submitted to the agency.”
More concernsIn addition to addressing the motives behind the federal
agency’s rush to judgment, Geraghty’s letter to the EPA outlinesa number of legal issues and concerns of the State. Theyinclude:
• Whether the EPA’s decision to prepare the assessment andrelated efforts are an unlawful expansion of its Section 404(c)authority;
• Whether the assessment is based on outdated guidance thatillegally circumvents other state and federal regulatory authori-ties;
• Whether conclusions drawn by the assessment will influ-ence future regulatory decisions in regards to Pebble; and
• Whether the credibility of the assessment is undermined bythe rushed nature of its development and review process.
In addition to Geraghty’s legal concerns, the AlaskaDepartment of Natural Resources submitted 89 pages of com-ments addressing the technical merits of the draft Bristol BayWatershed Assessment.
While the state’s technical comments number in the hun-dreds, they fall roughly into eight categories:
• The assessment draws speculative conclusions about poten-tial impacts from a hypothetical large mine;
• Insufficient technical and scientific support for conclu-sions based on groundwater/surface water interconnections inthe study area;
• Inadequate consideration of mitigation measures;• Unclear risk assessment methodology;• Inconsistent scale and scope of project area; and• Non-scientific presentation of the assessment.“In short, Alaska believes this premature assessment and the
highly accelerated process that EPA is embarked upon is notwell-founded in law and simply inadequate, when compared tothe rigorous environmental reviews that are assured with a spe-cific mine proposal and permit application, a review that wouldrequire several years and the expertise of multiple agencies at thestate and federal levels (including by EPA),” Geraghty wrote. �
Editor’s Note: In its entirety, Section 404(c) of the CleanWater Act reads: “The Administrator is authorized to prohibitthe specification (including the withdrawal of specification) ofany defined area as a disposal site, and he is authorized todeny or restrict the use of any defined area for specification(including the withdrawal of specification) as a disposal site,whenever he determines, after notice and opportunity for pub-lic hearings, that the discharge of such materials into sucharea will have an unacceptable adverse effect on municipalwater supplies, shellfish beds and fishery areas (includingspawning and breeding areas), wildlife, or recreational areas.Before making such determination, the Administrator shall con-sult with the Secretary. The Administrator shall set forth inwriting and make public his findings and his reasons for mak-ing any determination under this subsection.”
“Administrator” refers to the EPA Administrator.“Secretary” denotes the Secretary of the Army, acting throughthe Chief of Engineers.
continued from page 9
EPA ASSESSMENT
By ROSE RAGSDALEFor Mining News
For more than 30 years, devolution – the authority tomanage one’s own public lands and natural resources –
has been a goal of the Government of Northwest Territories.With a final devolution agreement currently being negotiat-ed with Canada’s federal government, the northern territoryis now laying the groundwork for effectively managing itsland and natural resources once the devolution process iscomplete.
Northwest Territories, which is slightly larger than theProvince of Ontario, covers 1.183 million square kilometers(456,792 square miles). But unlike the populous southernprovince that is home to Canada’s largest city and its nation-al capital, Northwest Territories has a tiny population num-bering less than 41,500 residents who have had little controlover the territory’s destiny.
All that is about to change when the current negotiationsfor devolution are concluded – expected by year’s end – andthe administrative authority and control over public lands,resources and rights in respect of water in the NorthwestTerritories is transferred from the federal government to theterritorial government.
Issues under negotiation include an oil and gas coopera-tion agreement, how existing environmental hazards will bemanaged, and determining the line between the onshore andoffshore areas of the Northwest Territories. In side negotia-tions, the GNWT is also finalizing an agreement with par-ticipating Aboriginal governments that will enable a coop-erative approach to the management of lands and resourceson both public and settlement lands. A final agreement onresource revenue-sharing between the territorial andAboriginal governments is also nearing completion.
After devolution, the GNWT will share up to 25 percentof its royalties with Aboriginal governments within the ter-ritory’s borders – a sharing that is unprecedented in Canada.
In June, the territorial government published “Towards AGNWT Land Use and Sustainability Framework,” a discus-sion paper that describes its public interests and currentthinking on managing public lands, water and resourcesafter devolution and invited public input and assistance incrafting the final framework.
“I see this document as an important tool for engagingwith Canada, Aboriginal governments, and others to getinput on what will eventually become the ‘GNWT Land Useand Sustainability Framework’,” said Northwest TerritoriesPremier Robert R. McLeod in introducing the discussionpaper. Comments are due by Sept. 30.
New Aboriginal talksGNWT leaders, led by McLeod, meanwhile, have been
making inroads in building stronger ties with Aboriginalgovernments. McLeod met July 19 with the newly-electedGwich’in Tribal Council President Robert A. Alexie, Vice-President Norman Snowshoe and Chief Operating Officer
22NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
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Devolution talks engage northernersTerritorial leaders seek public input on vision for managing lands and resources; engage Aboriginal governments in discussions
see DEVOLUTION TALKS page 23
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and poses no new metallurgical challenges.The Spooky claims held by CORE are
also found in the Ray Mountains region ofthe Ruby Terrane.
Explorers laud stateThe DGGS REE assessment of the
Ruby Terrane in Interior Alaska is part ofthe Parnell administration’s five-partstrategy on strategic minerals. This plan,which focuses heavily on rare earths,involves:
• Undertaking a statewide assessmentof strategic mineral potential;
• Providing incentives for the develop-ment of known, or highly-prospective,strategic mineral occurrences;
• Making improvements in the struc-ture and efficiency of Alaska’s permittingprocesses;
• Strengthening partnerships and coop-eration with other government entities,Alaska Native corporations and potentialdevelopers; and,
• Attracting new investments and mar-kets for Alaska’s mineral resources.
“The timing is right for rare-earthdevelopment,” Parnell said. “We’re ontrack to assess, incentivize and developthe rare earth elements we can provide theworld.”
Companies interested in developingAlaska’s rare earths are lauding the gover-nor on this initiative.
“The State of Alaska continues to takean active role in the development of itsenormous rare earth and critical mineralspotential,” said Ucore’s McKenzie. “Theallocation of substantial funding specifi-cally targeting rare earth and strategicresource development at Bokan Mountainand across the state is a tremendousadvantage for a very young industry withimmense upside potential for employingAlaskans and adding to the state’s exportrevenue. We applaud Gov. Parnell’s initia-tives and look forward to working withthe state to advance its critical metals rev-enue base.”
“It is nice to see the state take that first
step to have a program on the rare earths,”Freeman said. “I take my hat off to thestate for getting out in front of the curveand trying to get some new informationgenerated – whether it is rare earths orother elements.”
The Avalon Development president isamong a growing group of explorationgeologists who have told Mining News
that the geological and geophysical sur-veys being conducted by the state providethe private sector with information vital tounraveling the complex geology ofAlaska’s vast expanse.
“I think we are going to have to usemore remote-sensing exploration technol-ogy – geophysics, airborne surveys – andI think we are going to have to build up
our regional database,” NovaCopper Inc.President and CEO Rick VanNieuwenhuyse told Mining News.“Certainly the state has been active in thatin the past, and I hope they continue to doso because it really does form good base-line information for exploration geolo-gists to use.” �
Fred E. Koe in Yellowknife in what isdescribed as a first step in opening doorsfor an ongoing and productive partnershipbetween the GNWT and the new Councilleadership, “one that aims at deliveringreal benefits to the Gwich’in.”
“We have a small territory, and weneed to pull together if we want to achieveour shared vision of a strong, self-suffi-cient Northwest Territories,” McLeod in astatement. “Our government is committedto working with this territory’s Aboriginalgovernments in the spirit of respect,recognition and responsibility. I believethe Government of the NorthwestTerritories and the GTC share many of thesame priorities, and I look forward toworking with President Alexie and thenew GTC executive to advance the inter-ests of all NWT residents, including theGwich’in.”
GTC President Alexie said he waspleased at the outcome of the preliminarytalks.
“We are pleased to have this earlymeeting with Premier McLeod today,” hesaid. “As elected leaders, we have a jointand community responsibility to worktogether in a productive and transparentway. We look forward to a more produc-tive partnership between the GNWT andthe new GTC leadership, one that aims at
delivering real benefits to the Gwich’in.”
MOU with the TłįchǫThe GNWT government’s 17th
Legislative Assembly met June 29 withmembers of the Executive Councils of theTłįchǫGovernment for the second time todiscuss issues of shared importance andto sign “Working Together”, a memoran-dum of understanding recognizing theimportance of their government-to-gov-ernment relationship. The MOU acknowl-edges the unique and evolving relation-ship between the two governments andidentifies areas of cooperation includinghousing, income support and infrastruc-ture. After signing the memorandum,which formalizes the territorial govern-ment’s relationship with the TłįchǫGovernment, McLeod said, “The peopleof the Northwest Territories need theirgovernments to work together to help cre-ate a strong and prosperous territory thatprovides benefits to all of them. TheGovernment of the Northwest Territoriesis committed to strengthening our rela-tionships with Aboriginal governments,and the agreement we have signed todaydemonstrates that commitment,” headded.
Tłįchǫ Grand Chief Edward Erasmussaid, “I, too, am pleased to be able to signthis memorandum of understanding withthe leaders of the GNWT today. ThisMOU is an agreement to work together –government-to-government. The MOU
sets out the reasons we want to worktogether and how we will go about doingso. It is important that as the leaders of thetwo governments we work together for thegood of our people in our communities.There are so many areas where we haveoverlapping interests, and if we don’twork together, it is our people who sufferin the end.”
Sahtu rejoin talksA little over a month earlier, the Sahtu
Secretariat Incorporated rejoined thedevolution negotiations, signing an agree-ment in principle May 22.
“The Sahtu Dene and Métis have beenimportant participants throughout thedevolution negotiations process since2001, and we are pleased that SSI hasjoined us again to help shape the finalagreement,” said McLeod. “We welcomeall NWT regional Aboriginal govern-ments to participate at the negotiationstable and ensure the voices and prioritiesof their people are reflected in this his-toric agreement. While devolution doesnot affect Aboriginal and treaty rights,Aboriginal governments should take theopportunity to work together and helpensure the best possible devolution agree-ment for everyone in the NWT,” he added.
Canada’s Minister of AboriginalAffairs and Northern Development JohnDuncan also hailed the move by theSahtu. “The Government of Canada ispleased to see the Sahtu seize this oppor-
tunity to help shape the future of the ter-ritory and share in the benefits that willflow from devolution,” Duncan said. “TheGovernment of Canada’s NorthernStrategy envisions putting greater deci-sion making in the hands of the people ofthe Northwest Territories. Workingtogether through devolution, land claimand self-government negotiations andother initiatives, we will achieve remark-able progress towards this objective.”
Nellie Cournoyea, chair and CEO ofInuvialuit Regional Corporation, said,“The participation of the Sahtu will bringadditional depth and strength to theAboriginal voice in these important nego-tiations, and will contribute to a more pro-ductive relationship with the GNWT andthe development of a devolution agree-ment that will work for all regions of theNWT.”
Both the IRC and the Métis Nationsigned agreements in principle to partici-pate in the negotiations in early 2011.
Norman Yakeleya, MLA Sahtu, said,“It is important for the Sahtu to be at thetable to have their views represented. It’salways better to negotiate your own fatethan to have others do it for you. TheSahtu are now owning up to 100 percentof our responsibility to determine our des-tiny,” he added.
For more information or to providecomments on the framework discussionpaper, contact Catherine Boyd at (867)873-7541 or [email protected]. �
23NORTH OF 60 MININGPETROLEUM NEWS • WEEK OF JULY 29, 2012
Natural resources continue to be the cornerstone for Alaska’s economic
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DEVOLUTION TALKS
continued from page 5
REE SURVEY
24NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JULY 29, 2012
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