northern neighbors - for Petroleum News

page Curt Freeman column inside
10
Week of January 25, 2015
COEUR MINING INC.
The weekly mining newspaper for Alaska and Canada's North
www.MiningNewsNorth.com
NORTHERN NEIGHBORS
Compiled by Shane Lasley
COPPER NORTH MINING CORP. Jan. 21 said recent testing demonstrates that an agitated tank leach is the optimal
recovery process for copper, gold and silver from oxide mineral
resources at the Carmacks Copper Project in central Yukon
Territory. A new process plan consists of three-stage crushing
and rod mill grinding prior to placing ore in an agitated tank for
leaching of copper oxides with weak sulfuric acid. Testing indicates 84 percent copper recovery with leach times of 16 to 18
hours. Utilizing waste heat from the sulfuric acid plant may further reduce the leach times. Following copper leaching, the
solids are rinsed and pumped into a second set of agitated tanks
for the addition of lime and cyanide for gold and silver extraction. Testing indicates a recovery of 80 percent for gold and 78
percent for silver over 48 hours at ambient temperatures.
Higher leach temperatures provide potential for a significant
reduction in leach time and further increases in recovery, and is
under investigation. Residues from the cyanide circuit undergo
cyanide destruction prior to deposition in a dry stacked waste
facility, eliminating the need for a tailings pond. Beijing
General Research Institute Mining and Metallurgy has begun
design work for the new process plan as part of a prefeasibility
study to be completed in mid-2015, before completing the feasibility study at year’s end. Copper North said improved recoveries and bringing forward revenues from operations, as compared to a July 2014 preliminary economic assessment, shows
an important improvement in project economics.
KAMINAK GOLD CORP. Jan. 20 reported assay results
from drilling at Double Double, the highest grade of four gold
deposits being evaluated at the Coffee gold project about 130
kilometers (80 miles) south of Dawson City, Yukon Territory, as
part of an ongoing feasibility study. The objective of 6,850
meters of infill drilling in 47 holes at Double Double was to
verify and upgrade the open-pit resources defined in a 2014
preliminary economic assessment from inferred to the indicated
category. In addition to confirming the existing geological interpretation, Kaminak said drilling completed in 2013 and 2014
has delineated a previously unknown parallel mineralized structure – Double Double North – culminating in a 2014 intercept
of 32.8 grams per metric ton gold over 6.1 meters from 39.6
meters depth. This high-grade intercept is located just outside
the PEA pit shell, underscoring the potential for resource
expansion. Additional highlights from 2014 drilling at Double
Double include five meters grading 37.6 g/t gold in CFD093
and 33.53 meters of 5.07 g/t gold in CFR0713. Drilling is
scheduled to resume at Coffee in February.
COLORADO RESOURCES LTD. Jan. 19 reported the acquisition of 661 hectares (1,633 acres) of property internal to the
KSP gold-copper property in northwestern British Columbia.
Colorado has an option to earn up to 80 percent interest in KSP
from SnipGold Corp. The additional ground includes the Snip 2
claim acquired from Teck Resources Ltd.; and the Snow
Minfile and Lake Minfile occurrences from private vendors.
Colorado said it met 2014 payment and work commitments for
KSP and roughly 75 percent of its 2015 work commitments for
the property. With no other property obligations, the company
said its treasury is in good shape to weather difficult financial
times.
PRETIUM RESOURCES INC. Jan. 16 reported closing a
C$80.87 million private placement with Zijin Mining Group
Co. Ltd. of 12.84 million Pretium common shares at C$6.30
each. Pretium intends to use the proceeds to fund capital expenditures at its Brucejack gold project in northwestern British
Columbia, including procurement of long-lead items and camp
infrastructure. Shaoyang Shen of Zijin will be appointed to
Pretium’s board of directors
CHIEFTAIN METALS CORP. Jan. 15 said British Columbia
Minister of Environment Mary Polak has determined that the
Tulsequah Chief Mine project near the Alaska border in west-
see NORTHERN NEIGHBORS page 13
Coeur Mining Inc. plans to release a new mine plan for Kensington in early 2015 that is expected to reflect higher grade, higher-margin production over the life of the Southeast Alaska gold mine.
l
PRODUCTION
SE output soars
Greens Creek, Kensington outperform silver, gold production predictions
By ROSE RAGSDALE
For Mining News
T
hanks to higher grades and improved recoveries, Greens Creek and Kensington, the two
producing mines located in the Alaska Panhandle,
reported strong output in 2014 and outstanding
results for the fourth quarter.
Record output at Greens Creek
At Greens Creek which is owned and operated
by Idaho-based Hecla Mining Co., about 360 fulltime workers carved some
7.83 million ounces of silver
and 58,753 oz gold, as well
as lead and zinc concentrates
from the volcanogenic massive sulphide mine in 2014,
milling ore at an average rate
of 2,236 tons per day. The
output exceeded the company’s 2014 anticipated silver
production of 6.5 to 7.0 mil- PHILLIPS S. BAKER JR.
lion ounces and the mine’s
2013 output of 7.45 million oz silver by 5 percent;
57,457 oz gold by 2 percent; zinc by 11 percent
and lead by 33 percent.
In the fourth-quarter, Greens Creek produced
2.5 million ounces of silver and 15,289 ounces of
gold, outpacing the mine’s comparable 2013 production of 1.8 million ounces of silver and 14,722
ounces of gold by 34 percent and 4 percent,
respectively.
The underground mine, which has operated for
“Hecla’s silver-equivalent production is
the most in Hecla’s history and higher
than our guidance as all three mines are
running well.” —Phillips S. Baker Jr.,
president and CEO, Hecla Mining Co.
more than 22 years on Admiralty Island about 18
miles southwest of Juneau, is one of the world’s
largest primary silver producers. It contributed a
substantial share of Hecla’s overall production of
precious metals in 2014, which totaled 11.1 million oz silver and 186,994 oz gold, up 24 percent
and 56 percent, respectively, from comparable output in 2013. The company, which also operates the
Lucky Friday mine in Idaho and Casa Berardi
mine in Quebec, produced 34.44 million pounds
zinc and 19.57 million lbs. lead, primarily at
Greens Creek.
Hecla’s silver-equivalent production for 2014
totaled 34.5 million oz, up 50 percent from 2013
and 142 percent from 2012.
“Hecla’s silver-equivalent production is the
most in Hecla’s history and higher than our guidance as all three mines are running well,”
said Phillips S. Baker, Jr., Hecla’s President and
CEO. “The fourth-quarter performance of Greens
Creek and Casa Berardi exceeded our normal production expectations as a result of higher grades
and in addition, increased recoveries at Casa
Berardi over the third quarter. Cash balances are
essentially unchanged from the end of last year,
see MINE OUTPUT page 12
10
NORTH OF 60 MINING
PETROLEUM NEWS
•
WEEK OF JANUARY 25, 2015
C O L U M N
l
Good, bad and ugly hits Alaska mining
Low oil, base metals prices and currency woes hurt 2015 exploration outlook, but improved gold, silver prices help producing mines
By CURT FREEMAN
The
author
For Mining News
S
everal events have dramatically affected Alaska’s mining industry in recent
weeks, underscoring critical links between
Alaska and the global economy.
First came bad news for newly-elected
Gov. Bill Walker: The plunge in world oil
prices pushed Alaska’s coming-year budget projections about $3.5 billion into the
red. The ripple effect of this was a slashing
of everything not required and one of the
cuts, temporarily at least, was state funding
of the Ambler District Road. Deposits like
Bornite, Arctic and Sun, among others, are
adversely affected by this decision.
Just after the new year began, the Swiss
National Bank cut its longstanding tie to
the Euro, sending Swiss Francs skyrocketing and the Euro into further troubled
waters. One result was a strengthening of
gold prices as investors looked for a safe
haven for their funds.
In Alaska, the Fort Knox, Pogo,
Kensington and Greens Creek mines all
benefited from rising gold prices. Silver
followed gold’s upward move, also putting
smiles on faces at Greens Creek. Lead and
zinc, both significant contributors to revenue from Red Dog and Greens Creek, did
The author
Curt Freeman,
CPG #6901, is a
well-known geologist who lives in
Fairbanks. He prepared this column CURT FREEMAN
Jan. 19. Freeman can be reached by
mail at P.O. Box 80268, Fairbanks, AK
99708. His work phone number at
Avalon Development is (907) 457-5159
and his fax is (907) 455-8069. His email
is [email protected] and his website is
www.avalonalaska.com.
not share the upward ride of precious metals. Zinc currently trades in the middle of
its one-year range and lead near the bottom of its one-year range. While copper is
not currently a big revenue source for
Alaska’s mines, it has a potential to be so
in the future and is a stong driver of
Alaska mineral exploration, so its plight
also is of interest. Unfortunately, copper
took a tremendous beating in 2014, plummeting from the upper $3.30s per pound in
January 2014 to lows of about $2.60 in
late December. Copper has recovered
Contact North of 60 Mining News:
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Phone: 907.229.6289 • Fax: 907.522.9583
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slightly in 2015, trading between $2.66
and $2.87 per pound.
Finally, the Canadian dollar continued
to slide against the U.S. dollar, a drop of
some 20 percent in just two years. This
means it takes more Canadian dollars to
fund a dollar of exploration in Alaska. And
since more than 75 percent of Alaska’s
mineral exploration is funded by Canadian
companies, this is bad news for an industry
facing another year of limited exploration
budgets and lackluster investor sentiment.
So there you have it, the good, the bad
and the ugly – welcome to 2015!
Interior Alaska
FREEGOLD VENTURES LTD.
released an update on recently completed
column test work at its Golden Summit
project. Further bottle roll tests and column
leach tests on the oxide component of mineralization at the 6.5-million-ounce
Dolphin-Cleary deposit indicated gold
extractions exceeding 80 percent can be
achieved within 14 days on coarse crushed
material (80 percent passing 25 millimeters). The column test ran for 65 days and
final extractions were 85 percent for gold.
These tests suggest recovery on the oxide
component does not appear to be sensitive
to grind size. These results compare favorably with earlier bottle roll test results on
coarse crushed material. Sodium cyanide
consumption in the column test was reasonable at 0.69 kilograms per metric ton.
Optimization of cyanide dosing in future
test work programs will focus on potential
improvement in both kinetics and cyanide
consumption. Head grades of the oxide
material were 1.0 gram per metric ton gold
and 10 g/t silver. Results of the tests will
be incorporated into the preliminary economic assessment currently underway.
Freegold undertook additional column
leach work to provide more comprehensive data to examine potential for an initial
heap leach operation on the oxide component of Dolphin-Cleary.
INTERNATIONAL TOWER HILL
MINES LTD. reported progress toward
optimization of its Livengood gold project.
In addition to reviewing mine production
scheduling and detailed metallurgical test
work, the company examined power supply alternatives to determine how changing
energy supply dynamics might affect project assumptions regarding electrical generation and scrutinized construction and
operations camp alternatives to better
define costs of supporting the project’s
manpower requirements. The company
also continued to advance environmental
baseline work in support of future permitting to better position the project for a construction decision when warranted by market conditions. Revised production schedules were run at throughputs ranging from
11,250 metric tons per day to 90,000 tpd.
At the upper level of production, the mine
would produce about 7.7 million oz of
gold over its 12-year mine life from ore
ranging from 0.50-0.92 g/t gold. The
impact of just this scheduling change
would increase the net present value of the
project by $305 million (at 5 percent and
$1,500 per ounce gold). Integrating 45degree slopes into the mine plan for the
first five years and then reverting to the
design slopes used in a September 2013
feasibility study would result in an additional increase of $95 million (at 5 percent
and $1,500/oz gold). Re-evaluation of metallurgical tests determined that the
observed calculated head grades from the
250- to-300 kilogram composite samples
of the five primary rock types of the
deposit met or exceeded the drill assay
grades used in the feasibility study by a
ratio of 1.00 to 1.43, depending on rock
type. Additional metallurgical recovery
work will be required but if a higher head
grade can be confirmed, its effect would
be a significant improvement on project
economics. Due to the potential importance of the 2014 head grade evaluation to
the project, a significant multiphase metallurgical test-work program is already
underway in an attempt to validate the
observed higher calculated head grades.
The objectives of the 2015 metallurgical
test program are to optimize the gravity
circuit, optimize the grind size and power
consumption, optimize the re-agent consumption, optimize the leach retention
time, confirm the overall recoveries by
rock type and provide additional confirmation of the head grades. The company also
will continue environmental baseline studies and to evaluate alternatives for fresh
water supply for potential cost savings.
CONTANGO ORE INC. said it finalized a joint venture with ROYAL
ALASKA LLC, a wholly-owned subsidiary of ROYAL GOLD INC. to advance
exploration and development on the Tetlin
project near Tok. Royal Gold’s initial
investment of $5 million will fund explosee FREEMAN page 11
Alaska Mental Health Trust Land Office Vacancy
Minerals-Energy Section Chief – Anchorage, Alaska
The Alaska Mental Health Trust Land Office within the Alaska Department of Natural Resources is
recruiting for a Minerals-Energy Section Chief. This is a fully exempt, professional position with a
starting salary up to $121,000 annually. Final salary will be negotiated at the time of hire and will
be based upon the successful candidates’ qualifications and experience. The position is located in
Anchorage, Alaska and is offered with a complete State of Alaska benefit package.
FAX FOR ALL DEPARTMENTS
907.522.9583
As part of a dynamic team dedicated to the development and management of approximately one
million acres of Alaska Mental Health Trust Land, the Minerals-Energy Section Chief will oversee
and direct the marketing, analysis and administration of programs for the development of the
Trust’s mineral and energy resources.
Several of the individuals
listed above are
independent contractors
For a complete list of position requirements, responsibilities and how to apply, view the Trust Land
Office website at www.mhtrustland.org.
NORTH OF 60 MINING NEWS is a weekly supplement of Petroleum News,
a weekly newspaper. To subscribe to North of 60 Mining News,
call (907) 522-9469 or sign-up online at www.miningnewsnorth.com.
The State of Alaska is an equal employment opportunity employer and supports workplace diversity. Individuals requiring accommodation should call 800-587-0430 V/800-770-8973 TTY/TDD
(Relay Alaska).
PETROLEUM NEWS
•
WEEK OF JANUARY 25, 2015
continued from page 10
FREEMAN
ration activity, and Royal Gold will have
the option to earn up to a 40 percent economic interest in the joint venture by
investing up to $30 million (inclusive of
the initial $5 million investment) prior to
October 2018. Royal Gold indicated that
plans were being formulated for an active
exploration program to be conducted in
2015.
Alaska Range
COVENTRY RESOURCES INC. said
new claims, covering roughly 11,040
acres, have been staked immediately adjacent to and along strike from the previous
boundaries of the Caribou Dome copper
project in the Valdez Creek District.
Sediment-hosted copper mineralization
has been identified across the entire eastwest strike of the previous 10,240-acre
project area. This includes delineation of
nine outcropping pods of very high-grade
copper mineralization over about 750
meters of strike. The newly staked claims
cover mapped extensions of highly
prospective stratigraphy that hosts known
mineralization and incorporates numerous
historic copper (and other base and precious metal) occurrences, including the
underexplored Aly’s Peak prospect where
large areas of moderate to strong propylitic alteration have been mapped during
limited previous exploration.
Disseminated sulfides (pyrite, pyrrhotite
+/- chalcopyrite) have been reported to be
common, and locally reach one by two
meters in size. Analysis of very limited
rock chip sampling yielded up to 1.36 percent copper and assays of massive epidote-garnet-copper sulfide-copper oxide
skarn in float near the top of Aly’s Peak
11
NORTH OF 60 MINING
yielded 1.08 percent copper.
KISKA METALS CORP. said it
restructured net smelter returns royalty
interests for its 100 percent-owned
Whistler project pursuant to two royalty
purchase agreements entered into Dec. 16.
Highlights of the transactions dictate that
net smelter return royalties totaling 3.5
percent on the core claims at Whistler will
be cancelled, and replaced with one 2.75
percent NSR royalty over the entire property. Kiska will retain a buy-down provision to 2 percent for $5 million, issue 2
million warrants and receive net proceeds
of $1.1 million for the royalty transactions.
Northern Alaska
GOLDRICH MINING CO. released a
year-end summary of development and
pre-production activities at its Chandalar
gold project in the Brooks Range.
GOLDRICH NYACAU PLACER LLC, a
50-50 joint-venture between the company
and NYACAU LLC has invested more
than $17 million in equipment and infrastructure to prepare for commercial-scale
gold mining on the Little Squaw placer
gold deposit. Major accomplishments during 2014 included relocating the plant to a
lower and broader part of the valley, building new water ponds, and expanding the
plant. A new grizzly feeder was mobilized
and installed on site as well as support
frames for additional gravel screens and
gold recovery tables to be mounted this
spring. Full capacity of the feeder is
expected to be about 600 bank cubic yards
per hour and will be realized as additional
gravel screens and gold recovery tables
see FREEMAN page 16
Faces of Coal Mining
Usibelli Coal Mine has an all-Alaskan workforce—and that’s one big reason why we’re committed
to protecting our environment. You see, most of our employees and their family members live
just a few miles away from our coal mine in Healy. So when we talk about clean air and clean
water—it’s personal. The mine is in our back yard, so protecting the air we breathe, the water
we drink, and the land we recreate on is essential to our way of life.
www.Usibelli.com
12
NORTH OF 60 MINING
PETROLEUM NEWS
•
WEEK OF JANUARY 25, 2015
HECLA MINING CO.
continued from page 9
MINE OUTPUT
despite the lower price environment and
the completion of Hecla’s second largest
annual capital program that was designed
to increase production, extend mine life
and reduce operating risk. These results
are testament to the strength of Hecla’s
assets and the capability of our operating
teams.”
Hecla reported capital spending in
2014 of about $132 million (excluding
capitalized interest), $18 million less than
guidance, and cash and cash equivalents
of roughly $209 million at year’s end, $3
million less than the amount on hand a
year earlier.
Improvements at Kensington
The Greens Creek mine, which has operated for more than 22 years on Admiralty Island about 18 miles southwest of Juneau, produced 7.8
million ounces of silver during 2014.
Production at the 318-employee
Kensington gold mine located 45 miles
north-northwest of Juneau also exceeded
expectations in 2014, totaling 117,823 oz
gold.
“Operating consistency has improved
at Kensington in the past two years,
which has allowed us to increase our
effort on exploration and long-term planning,” said Frank Hanagarne, Coeur
Mining's senior vice president and chief
operating officer.
Chicago-based Coeur had posted
guidance for the mine’s anticipated output of 107,000 - 112,000 oz in 2014.
In the fourth quarter, Kensington produced 33,533 oz gold, down 8 percent
from 36,469 oz for the comparable quarter of 2013. Coeur milled 167,417 tons of
ore grading 0.21 grams per metric ton
gold at an average recovery rate of 94.2
percent during the fourth quarter.
Full-year 2014 production at Coeur
totaled 17.2 million oz silver and
249,384 oz gold, down from full-year
2013 production of 16.9 million oz silver
and 259,980 oz gold. Full-year 2014 silver-equivalent production totaled 32.2
million ounces.
The performance was in-line with
Coeur’s guidance of 17.0 million to 18.0
million oz for silver, above guidance of
229,000 to 244,000 oz for gold, and at
the high end of guidance of 30.0 million
to 32.7 million oz for silver-equivalent.
In 2014, Coeur encountered highgrade gold in drilling Kensington South
(zones 10 and 20) immediately beneath
current production areas, 100 to 200 feet
away from current mine development.
Several holes returned grades greater
than 1.0 oz/ton gold, and grade and
thickness of mineralization improves at
depth and to the southern portion of the
ore body. The zones are open in all directions
In the Jualin area, drilling activity in
Jualin veins 4 and 5 encountered several
multi-ounce gold intercepts; underground development at Jualin is planned
for 2015 and production from Vein 4 is
expected to begin in 2017. Vein 4 is open
in all directions.
“The renewed focus of our drilling
program at Kensington has discovered
high-grade mineralization to enhance the
economics of the mine, resulting in a
considerable number of drill holes containing multi-ounce gold intercepts,”
said Hans Rasmussen, Coeur’s vice president, exploration, when the drill results
were reported in October.
Hanagarne said the discovery of highgrade gold at Jualin has the potential to
significantly boost production grades,
reduce unit costs, and increase free cash
flow at the Kensington mine.
In 2015, Coeur said it expects to produce 14.8 - 16.0 million oz silver and
see MINE OUTPUT page 13
PETROLEUM NEWS
•
WEEK OF JANUARY 25, 2015
NORTH OF 60 MINING
continued from page 12
MINE OUTPUT
284,000 - 313,000 oz gold, or 31.8 - 34.8
million silver-equivalent oz, up to an 8
percent increase over 2014 silver-equivalent production.
Coeur’s 2015 total silver and gold
production guidance includes pro-rata
production from its recent acquisition of
the Wharf gold mine in South Dakota
from Goldcorp Inc. based on an assumed
transaction closing date of March 31,
2015. Wharf is expected to produce
85,000 - 90,000 ounces of gold in 2015
based on guidance provided by Goldcorp
on Jan. 12.
For Kensington, the company posted
2015 production guidance of 110,000 to
115,000 oz gold and 6,600 to 6,900 oz
silver-equivalent.
Coeur also said it anticipates releasing
a new mine plan at Kensington in early
2015, which is expected to incorporate a
new resource estimate it was to complete
by the end of 2014 and reflect highergrade, higher-margin production over the
life of the mine.
Analysts impressed
With metals production, especially
silver and gold, exceeding the expectations of the mines’ owners, industry analysts and investors hailed the performances of the silver and gold producers as
good news.
Industry analysts praised the 2014
results from both Southeast Alaska
mines, noting the operating improvements at Kensington and the impressive
silver output at Greens Creek.
It is Coeur’s acquisition of the Wharf
mine from Goldcorp. for $105 million in
cash, however, that is really exciting
industry watchers, who anticipate the
company enjoying a substantial boost in
net cash flow and after-tax earnings from
the South Dakota operation.
Coeur said Wharf will increase the
company’s EBITDA by more than 30
percent and contribute to free cash flow
from the start. The primary gold mine
has operated for 30 years and has a current mine life of seven years. It is providing Coeur a 24 percent increase in the
company’s total gold reserves.
Overall, the Wharf acquisition will
result in gold production accounting for
about 60 percent of Coeur’s revenues.
Up from the current share of around 50
percent –perhaps changing the company’s status in the eyes of investors from a
silver miner to a gold miner, analysts say.
By adding Wharf, Coeur is expected
to increase its 2015 gold production to
260,000 oz, or in terms of silver-equivalent (if Coeur continues to be seen as a
silver miner) to 34.14 million oz.
Wharf’s low-cost operation relative to
Kensington also will lower Coeur’s goldrelated cash costs to below $1,000/oz,
according to analysis by Cowen & Co.
At Greens Creek, Hecla is systematically adding new resources and continually converting them into reserves to further cope with lower metal prices, analysts say. This will extend Greens
Creek’s mine life despite lower metal
prices.
Moreover, Hecla is delivering highgrade drill intersections at Green Creek,
which is expected to add more resources
along the South West bench. In the
upcoming quarter, the company is
expected to complete more exploration
and definition drilling in these areas.
This will not only boost production but
also add meaningfully to the company’s
top line in the the upcoming quarters,
analysts observe. l
continued from page 9
NORTHERN NEIGHBORS
ern British Columbia has been substantially started. As a result, the environmental assessment certificate remains in
effect for the life of the project, and the
company can continue building the mine.
Chieftain said it will proceed with the
project in accordance with a November
2014 feasibility study.
SKEENA RESOURCES LTD. Jan. 14
reported results from the final four 2014
holes drilled at its Spectrum property in
northwestern British Columbia.
Highlights include: 43.8 grams per metric ton gold over two meters in hole 14SP-006; 9.5 g/t gold over two meters in
hole 14-SP-007; 4.6 g/t gold over nine
meters in hole 14-SP-008; and 13.7 g/t
gold over four meters and 254.5 g/t over
two meters in hole 14-SP-09. This last
intercept (from 285 meters) represents
the deepest intersection of significant
mineralization obtained to date from an
For more than a
century Foss has
successfully
navigated Alaska’s
most extreme
environments.
Today, as new opportunities appear on the Arctic horizon,
Foss is ready to grow with Alaska.
www.foss.com
Our People Our Community
Janice Durfee first moved to Juneau, Alaska in 1996 with
hopes of working at Fort Knox someday. She had been
a truck driver at mines in the Lower 48 and had heard
wonderful things about Alaska. In 2003, Janice and her
husband, Larry, moved to Fairbanks and Janice began
working at Fort Knox.
“Fairbanks has that small town feel that I grew up with in
Montana. Plus, there are real seasons up here!” she says.
Which was good news for the Durfee’s; they both enjoy
camping, river fishing, and, Janice’s favorite, gardening.
“As a gardener, if you take care of the land, then the land
will produce. That’s a value that I share with Fort Knox.
They understand and take care of the land.”
Janice says that she loves her work and her crew of
roughly 60 co-workers. “You get to be good friends with
the bunch that you work with…I hope to be at Fort Knox
until I retire.”
kinross.com
apparent down-plunge extension of the
500 Colour Zone. Skeena said its 2015
exploration program will target expansion of the 500 Colour and Central zones,
while other targets will be upgraded to
the drill stage.
KLONDIKE GOLD CORP. Jan. 14
reported assay results for 212 prospecting
samples from the 2014 field program at
its Lone Star property near Dawson City,
Yukon Territory. The company says samsee NORTHERN NEIGHBORS page 16
13
Companies involved in Alaska and
northwestern Canada’s mining industry
D I R E C T O R Y
The Red Dog mine in northwest Alaska.
Mining Companies
Kinross Fort Knox/Fairbanks Gold Mining Inc.
Fairbanks, AK 99707
Contact: Anna Atchison, Manager,
Community and Government Relations
Phone: (907) 490-2218 Fax: (907) 490-2290
E-mail: [email protected]
Website: www.kinross.com
Located 25 miles northeast of Fairbanks, Fort Knox is
Alaska’s largest producing gold mine; during 2011,
Fort Knox achieved 5 million ounces of gold produced, a modern record in Alaska mining.
Usibelli Coal Mine
Fairbanks, AK 99701
Contact: Bill Brophy, VP Customer Relations
Phone: (907) 452-2625 • Fax: (907) 451-6543
Email: [email protected]
Website: www.usibelli.com
Other Office
PO Box 1000
Healy, AK 99743
Phone: (907) 683-2226
Usibelli Coal Mine is headquartered in Healy, Alaska
and has 700 million tons of coal reserves. UCM produces an average of 2 million tons of sub-bituminous
coal each year.
Service, Supply & Equipment
Alaska Air Cargo • Horizon Air Cargo
P.O. Box 68900 SEAFZ
Seattle, WA 98168
Contact: Joe Sprague, Vice President of Cargo
Phone: (206) 392-2705 or 800-2ALASKA
Fax: (206) 392-2641
E-mail: [email protected]
Website: www.alaskacargo.com
Award winning cargo services to more places, more
often, with more lift to, from, and within the state of
Alaska.
Alaska Analytical Laboratory
1956 Richardson Highway
North Pole, AK 99705
Phone: (907) 488-1266 • Fax: (907) 488-077
E-mail: [email protected]
Environmental analytical soil testing for GRO, DRO,
RRO, and UTEX. Field screening and phase 1 and 2
site assessments also available.
Alaska Steel Co.
6180 Electron Drive
Anchorage, AK 99518
Contact: Joe Pavlas, outside sales manager
Phone: (907) 561-1188
Toll free: (800) 770-0969 (AK only)
Fax: (907) 561-2935
E-mail: [email protected]
Full-line steel and aluminum distributor. Complete
processing capabilities, statewide service. Specializing
in low temperature steel and wear plate.
PETROLEUM NEWS
•
WEEK OF JANUARY 25, 2015
Arctic Wire Rope & Supply
6407 Arctic Spur Rd.
Anchorage, AK 99518
Contact: Mark Lamoureux
Phone: (907) 562-0707 • Fax: (907) 562-2426
Email: [email protected]
Website: www.arcticwirerope.com
Arctic Wire Rope & Supply is Alaska’s largest and
most complete rigging supply source. We specialize
in custom sling fabrication (wire rope, web, chain,
and polyester round.) We offer radio-frequency
identification services for all of our rigging products.
We carry a large inventory of tire chains for trucks
and heavy equipment.
NORTH OF 60 MINING
Advertiser Index
Alaska Airlines Cargo
Alaska Analytical Laboratory
Alaska Dreams
Alaska Steel Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Arctic Wire Rope
Austin Powder Co. . . . . . . . . . . . . . . . . . . . . . . . . . 16
Calista Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Constantine Metal Resources
Construction Machinery
Austin Powder Company
P.O. Box 8236
Ketchikan, AK 99901
Contact: Tony Barajas, Alaska manager
Phone: (907) 225-8236 • Fax: (907) 225-8237
E-mail: [email protected]
Web site: www.austinpowder.com
In business since 1833, Austin Powder provides
statewide prepackaged and onsite manufactured
explosives and drilling supplies with a commitment to
safety and unmatched customer service.
Delta P Pump
Calista Corp.
301 Calista Court, Suite A
Anchorage, AK 99518
Phone: (907) 279-5516 • Fax: (907) 272-5060
Web site: www.calistacorp.com
Nature Conservancy, The
Construction Machinery Industrial, LLC
5400 Homer Drive
Anchorage, AK 99518
Contact: Robert Fairbanks, Sales Manager
Phone: (907) 563-3822
Fax: (907) 563-1381
Email: [email protected]
Website: www.cmiak.com
Delta P Pump & Equipment
PO Box 771452
Eagle River, AK 99577
Contact: Sue Ahrens, Owner
Phone: (907) 694-7583
Fax: (907) 694-7584
E-mail: [email protected]
Website: www.deltappump.com
Delta P Pumps and Equipment is a full line distributor for pumps, pump parts, and related equipment.
We also handle system design, complete fabrication,
installation assistance, and some repairs. Delta P
Pump and Equipment is a woman owned Alaskan
business established in 2000.
GCI Industrial Telecom
Anchorage:
11260 Old Seward Highway Ste. 105
Anchorage, AK 99515
Phone: (907) 868-0400
Fax: (907) 868-9528
Toll free: (877) 411-1484
Web site: www.gci.com/industrialtelecom
Rick Hansen, Director
[email protected]
Mark Johnson, Business Development Manager
[email protected]
Deadhorse:
Aurora Hotel #205
Deadhorse, Alaska 99734
Phone: (907) 771-1090
Mike Stanford, Senior Manager North Slope
[email protected]
Houston, Texas:
8588 Katy Freeway, Suite 226
Houston, Texas 77024
Phone: (713) 589-4456
Hillary McIntosh, Account Representative
[email protected]
GCI Industrial Telecom provides innovative solutions to
the most complex communication issues facing industrial clientele. We deliver competitive services, reputable expertise and safely operate under the most
severe working conditions for the oil, gas and natural
resource industries. GCI-your best choice for full life
cycle, expert, proven, industrial communications.
HDR Alaska Inc.
2525 C St., Ste 305
Anchorage, AK 99503
Contact: Jaci Mellott, Marketing Coordinator
Phone: (907) 644-2091
Fax: (907) 644-2022
Email: [email protected]
Website: www.hdrinc.com
HDR Alaska provides engineering, environmental, planning, and consultation services for mining and mineral
exploration clients. Services include: biological studies;
cultural resources; project permitting; NEPA; stakehold-
Fairbanks Gold Mining/Fort Knox Gold Mine . . . 13
GCI Industrial Telecom . . . . . . . . . . . . . . . . . . . . . . 12
Greer Tank Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
IFR Workwear Inc.
Judy Patrick Photography . . . . . . . . . . . . . . . . . . . 11
Keller Williams Commercial
Last Frontier Air Ventures . . . . . . . . . . . . . . . . . . . 10
Lynden
Northern Air Cargo
Pacific Rim Geological Consulting
Pebble Partnership
PND Engineers Inc.
Salt+Light Creative
Sourdough Express Inc.
Taiga Ventures/PacWest Drilling Supply
Total Safety
URS Corp.
Usibelli Coal Mine . . . . . . . . . . . . . . . . . . . . . . . . . . 11
er outreach; agency consultation; and environmental,
civil, transportation, energy, and heavy structural engineering.
Judy Patrick Photography
511 W. 41st Ave, Suite 101
Anchorage, AK 99503
Contact: Judy Patrick
Phone: (907) 258-4704
Fax: (907) 258-4706
E-mail: [email protected]
Website: www.judypatrickphotography.com
Creative images for the resource development industry.
Keller Williams Commercial
101 West Benson, Ste. 503
Contact: Stewart Smith, Associate Broker
Anchorage, AK 99503
Phone: (907) 865-6505
Cell: (907) 727-8686
Email: [email protected]
Contact: Mollie Smith, Commercial Associate
Cell: (907) 229-1384
Email: [email protected]
Web site: www.stusell.com;
www.AKMiningClaims.com
Mining Claims to buy, sell, or lease, call the Alaska
professionals. We provide real estate brokerage service to the mining industry, with over 35 years of commercial experience. Call for a list of our featured
properties.
Last Frontier Air Ventures
39901 N. Glenn Hwy.
Sutton, AK 99674
Contact: Dave King, owner
Phone: (907) 745-5701
Fax: (907) 745-5711
E-mail: [email protected]
Anchorage Base (907) 272-8300
Web site: www.LFAV.com
Helicopter support statewide for mineral exploration,
survey research and development, slung cargo,
video/film projects, telecom support, tours, crew
transport, heli skiing. Short and long term contracts.
Lynden
Alaska Marine Lines • Alaska Railbelt Marine
Alaska West Express • Lynden Air Cargo
Lynden Air Freight • Lynden International
Lynden Logistics • Lynden Transport
Anchorage, AK 99502
Contact: Jeanine St. John
Phone: (907) 245-1544 • Fax: (907) 245-1744
Email: [email protected]
The combined scope of the Lynden companies
includes truckload and less-than-truckload highway
connections, scheduled barges, intermodal bulk
chemical hauls, scheduled and chartered air
15
freighters, domestic and international air forwarding
and international sea forwarding services.
Northern Air Cargo
3900 W. International Airport Rd.
Anchorage, AK 99502
Contact: Mark Liland, acct. mgr. Anch./Prudhoe Bay
Phone: (907) 249-5149 • Fax: (907) 249-5194
Email: [email protected] • Website: www.nac.aero
Serving the aviation needs of rural Alaska for almost 50
years, NAC is the states largest all cargo carrier moving
nearly 100 million pounds of cargo on scheduled flights
to 17 of Alaska’s busiest airports. NAC’s fleet of DC-6,
B-727, and ATR-42 aircraft are available for charters to
remote sites and flag stops to 44 additional communities.
Pacific Rim Geological Consulting
Fairbanks, AK 99708
Contact: Thomas Bundtzen, president
Phone: (907) 458-8951
Fax: (907) 458-8511
Email: [email protected]
Geologic mapping, metallic minerals exploration and
industrial minerals analysis or assessment.
Pebble Partnership
3201 C St., Suite 604
Anchorage, AK 99503
Phone: 907-339-2600
www.pebblepartnership.com
PND Engineers Inc.
1506 W. 36th Ave.
Anchorage, AK 99503
Phone: (907) 561-1011
Fax: (907) 563-4220
Website: www.pndengineers.com
Full-service engineering firm providing civil, structural, and geotechnical engineering, including mining
support, resource development, permitting, marine
and coastal engineering, transportation engineering,
hydrology, site remediation, and project management.
TTT Environmental LLC
4201 “B” St.
Anchorage, AK 99503
Contact: Tom Tompkins, general manager
Phone: 907-770-9041 • Fax: 907-770-9046
Email: [email protected]
Website: www.tttenviro.com
Alaska’s preferred source for instrument rentals, sales,
service and supplies. We supply equipment for air
monitoring, water sampling, field screening, PPE and
more.
Taiga Ventures
2700 S. Cushman
Fairbanks, AK 99701
Mike Tolbert - president
Phone: 907-452-6631 • Fax: 907-451-8632
Other offices:
Airport Business Park
2000 W. International Airport Rd, #D-2
Anchorage, AK 99502
Phone: 907-245-3123
Email: [email protected]
Web site: www.taigaventures.com
Remote site logistics firm specializing in turnkey
portable shelter camps – all seasons.
Total Safety U.S. Inc.
209 E. 51st Ave.
Anchorage, AK 99503
Contact: Tyler Zollinger, District Manager.
Phone: (907) 743-9871
Fax: (907) 743-9872
E-mail: [email protected]
Website: www.totalsafety.com
A full service safety company specializing in Remote
Medical Services, H2S Services, Industrial Hygiene, and
Safety Consultants. Total Safety provides Service,
Rental, or Sales of Safe Breathing Air, Gas Detection,
and Technical Safety Equipment.
URS Corp.
700 G Street, Suite 500
Anchorage, AK 99501
Contact: Joe Hegna, Alaska Vice President/Alaska
Operations Manager
Phone: (907) 562-3366 • Fax: (907) 562-1297
E-mail: [email protected]
Website: www.urscorp.com
Provide engineering, construction and technical services with capabilities to support all stages of project
life cycle. We offer a full range of program management; planning, design and engineering; construction
and construction management; operations and maintenance; and decommissioning and closure services.
16
NORTH OF 60 MINING
PETROLEUM NEWS
SURPRISINGLY DIVERSE
building
Alaska’s
INFRASTRUCTURE
continued from page 11
FREEMAN
are added in stages through 2016. Because
of the substantial increase in plant capacity, the partners plan to transport seven
additional 40-ton rock trucks over the
winter trail, beginning in February, to the
mine site, bringing their fleet to 13 trucks.
Goldrich also completed an airborne
radiometric and magnetic survey in 2014.
Results of the airborne study demonstrate
a broad northwest-trending belt of elevated potassium values with a centrally located, kilometer-scale feature where thorium
values are elevated relative to potassium.
The potassium/thorium anomaly is closely
associated with magnetic anomalies to
form a circular kilometer-scale feature in
the highlands above and adjacent to the
Little Squaw placer gold deposit and is
consistent with an intrusive body at depth.
Southeast Alaska
HECLA MINING CO. announced pre-
liminary fourth-quarter production results
from its Greens Creek mine on Admiralty
Island. During the fourth quarter the mine
produced 2.5 million oz of silver and
15,289 oz of gold, constituting 34 percent
and four percent increases, respectively
over production levels during the same
period a year earlier. Annual production of
about 7.8 million oz of silver exceeded the
previous year’s production by nearly
400,000 oz. The mill operated at an average rate of 2,236 tons per day during
2014.
COEUR MINING INC. announced
SHIPPING
freight
internationally
continued from page 13
satellite
COMMUNICATIONS
in the Arctic
NORTHERN NEIGHBORS
ples from a newly found quartz vein at
Boulder Lode, a prospect related to the
historical Lone Star Mine, returned
assays of 1,766 grams per metric ton
gold, 1,007 g/t gold, and 831 g/t gold,
all with corresponding high-grade silver.
Prospecting samples of bedrock quartz
veins from the Nugget to Buckland
prospect areas assayed between 1.0 g/t
gold and 19.4 g/t gold, including six
samples with visible gold identified in
outcrop. All told, 2014 prospecting iden-
•
WEEK OF JANUARY 25, 2015
preliminary year-end production results
from its Kensington mine. The mine outperformed its previously announced production target of 107,000-112,000 oz by
producing 117,823 oz of gold. The mine
produced 33,533 oz of gold in the fourth
quarter, down from the 36,469 oz gold a
year earlier. Kensington also processed
167,417 tons of ore in the fourth quarter at
an average grade of 0.21 oz per ton.
Average recovery was 94.2 percent. The
mine is expected to produce 110,000115,000 oz of gold in 2015. Coeur expects
to release a new mine plan for Kensington
in early 2015, which is expected to reflect
higher-grade, higher-margin production
over the life of the mine.
UCORE RARE METALS INC. said it
has contracted with AUSENCO
ENGINEERING CANADA INC. to complete a feasibility study on its BokanDotson Ridge project. The feasibility
study will make use of new studies completed after a preliminary feasibility study
was published in early 2013. These studies include results from bulk sampling and
XRT tests. The resultant upgraded material is being used for final laboratory testing
and as feedstock to the pilot plant; engineering for recently completed permitting
now being incorporated in the plan of
operations for the proposed mine site;
revised resource drilling exceeding 4,000
meters that will be incorporated into a
resource model; continued testing of the
metallurgical process flow sheet, and
finalization of the rare earth oxide separation process. l
tified 19 geographically diverse and previously undocumented sites of visible
gold in outcropping bedrock quartz
veins., Klondike Gold also reported
results from 89 prospecting samples collected from Dominion, a claim group
about 2,000 meters east of Lone Star.
Samples collected from old trenches at
the Hunker Dome prospect returned
between 1 g/t and 37.1 g/t gold and 8 g/t
to 930 g/t silver. The assays also included results from Dominion Adit and
Golden Rod, two other prospects on the
property. l
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Y-Tech Services, Inc. r Yulista Aviation, Inc. r Yulista Tactical Services, LLC
Solstice Advertising r Calista Real Estate r Calista Education and Culture, Inc