Reader Is Encouraged to Examine the Documents Listed in the References Cited Section of This Report

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Reader Is Encouraged to Examine the Documents Listed in the References Cited Section of This Report Captions for photos on cover page: Top Left: Angular-to-sub-angular placer gold-quartz nuggets from Upper Tobin Creek below the Mikado Vein structure. Photo by LSGMC. Center Left: Quartz-sulfide vein showing native gold in association with arsenopyrite at Mikado Mine. Photo by LSGMC. Bottom Right: Chandalar Mining district discoverer Frank Yasuda and prospecting partner Thomas G. Carter, circa 1913. Photo from Yasuda family collections as published in Hawley and Bundtzen (2003). ii Gold Deposits of the Chandalar Mining District, Northern Alaska: An Information Review and Recommendations Version One TABLE OF CONTENTS I. Summary and Conclusions ……………………………………………………………………… 1 II. Introduction ……………………………………………………………………………………….. 4 III. Location, Access, and Geography ……………………………………………………………… 6 IV. History of Exploration and Development ………………………………………………………. 10 V. Property Description, Ownership, and Infrastructure …………………………………………... 15 Land Issues ………………………………………………………………………………… 15 Water Rights ……………………………………………………………………………….. 18 Infrastructure ……………………………… ……………………………………………… 18 VI. Regional Geology of the Koyukuk-Chandalar Region …………………………………………. 20 Bedrock Geology ……………………………………………………………………………. 20 Quaternary Geology ………………………………………………………………………… 21 Regional Tectonic Setting …………………………………………………………………… 22 VII. Geology of the Chandalar Mining District ……………………………………………………. 27 Lower Plate Sequence ……………………………………………………………………….. 27 Upper Plate Sequence ……………………………………………………………………….. 32 Intrusive Rocks of the Chandalar Mining District …………………………………………. 32 Quaternary History of the Chandalar Mining District ………………………………………. 33 VIII. Structural Analysis of the Chandalar Mining District …………………………………………. 37 Thrust Faults ………………………………………………………………………………… 37 Folding ………………………………………………………………………………………. 38 High Angle Faults ………………………………………………………………………….. 38 Timing of Structural Deformation ………………………………………………………….. 39 IX. Mineral Deposits …………………………………………………………………………………. 40 Definitions…………………….. ……………………………………………………………. 40 Lode Gold Deposits of the Chandalar Mining District; General Discussion ………………. 41 Primary Lode Deposits and Prospects ……………………………………………………….. 43 Mikado Lode …………………………………………………………………………... 43 Chandalar–Eneveloe Lode …………………………………………………………….. 54 iii Summit Lode ………………………………………………………………………. 57 Little Squaw Lode ………………………………………………………………….. 61 Other Lode Gold Prospects of the Chandalar Mining District ……………………………… 69 Crystal Vein ………………………………………………………………………. 69 Big Squaw Claim ………………………………………………………………….. 70 Pioneer Prospect …………………………………………………………………….. 70 Drumlummon Prospect …………………………………………………………… 71 Grubstake Vein ….…………………………………………………………………. 71 Grubstake East Prospect ……………………………………………………………. 72 Prospector East Prospect ……………………………………………………………. 72 Indicate-Tonapah Lode……………………………………………………………… 72 Chandalar Vein ..……………………………………………………………………. 73 Jupiter Vein ….……………………………………………………………………... 73 Bonanza Vein. ……………………………………………………………………… 73 Pallasgren Claim …………………………………………………………………. 74 St. Mary’s Prospect …………………………………………………………………. 74 Star Claim Group ………………………………………………………………….. 74 Star No. 3 Claim …………………………………………………………………… 75 Duplex, Triplex Vein ……………………………………………………………….. 75 Wildcat Prospect ……………………………………………………………………. 75 Jackpot Prospect ……………………………………………………………………. 75 Woodchuck Claim… ……………………………………………………………….. 75 Little Kiska Occurrence …………………………………………………………….. 76 Pedro Prospect ……………………………………………………………………... 76 Grubstake West Claim Group ………………………………………………………. 76 Placer Deposits of the Chandalar Mining District; General Discussion ……………………. 76 Primary Placer Deposits ……………………………………………………………………... 79 Little Squaw Creek ………………………………………………………………….. 79 Big Creek ……………………………………………………………………………. 83 Big Squaw Creek ……………………………………………………………………. 84 Tobin Creek …………………………………………………………………………. 85 Other Placer Prospects ………………………………………………………………………. 85 X. Milling Processes and Metallurgical Studies …………………………………………………….. 87 XI. Environmental Issues at the Chandalar Mines …..……………………………………………... 92 iv XII. Ore Deposit Model for Gold-Bearing, Low Sulfide-Quartz Veins, Chandalar Mining District… 96 Descriptive Summary of Chandalar Mining District Veins ………………………………… 96 Previous Studies of Mineral Deposits in the Chandalar Mining District …………………... 99 USGS Inclusion Studies on Chandalar Veins ……………………………………………….. 100 Comparative Analyses of Epithermal and Mesothermal Mineral Deposit Models for Chandalar Mining District Veins …………………………………………………………... 102 Resource Sizes of Orogenic Gold Deposits and Implications for the Chandalar Mining District ……………………………………………………………………………………… 110 XIII. Recommendations ……………………………………………………………………………. 115 Placer Development …………………………………………………………………………. 115 Geological Evaluations and Hard Rock Exploration ………………………………………… 118 Infrastructure …………………………………………………………………………………. 121 XIV. References Cited ……………………………………………………………………………….. 123 v LIST OF FIGURES Figure 1 Location of the Chandalar Mining District …………………………………………… 7 Figure 2 Mineral deposits and prospects of the Chandalar Mining District …………………. 11 Figure 3 Location of mining properties in the Chandalar Mining District …………………….. 17 Figure 4 Regional geology of the Central Brooks Range, illustrating the location subunits of the Arctic Alaska Terrane and locations of gold districts; modified from Moore and others (1994) ……………………………………………………… 23 Figure 5 Glacial limits along the flank of the Southern Brooks Range, illustrating the influence of Pleistocene Glaciation in the Chandalar Mining District; from Hamilton (1986) ………………………………………………………………. 25 Figure 6 Structural cross section across the Central Brooks Range, A-A’, illustrating low angle decollement surfaces, modified from Mull (1989) and Moore and others (1994) ………………………………………………………………………….. 26 Figure 7 Geologic Map of the Chandalar Mining District, modified from Chipp (1970) ……. 29 Figure 8 Structural interpretation of the Chandalar Mining District at about 1:40,000 scale, with emphasis on photo geologic interpretation; modified from Duke (1975) .. 30 Figure 9 Structural cross sectional interpretation of the Chandalar Mining District; from Duke (1975) ………………………………………………………………………… 31 Figure 10 Surficial geologic map of the Chandalar Mining District at 1:200,000 scale, illustrating glacial flow directions and locations of ancestral streams; modified from Hamilton (1978) ………………………………………………………… 34 Figure 11 Plan view of the Mikado Vein exploration workings ………………………………. 47 Figure 12 Longitudinal section of exploration on the Mikado shear …………………………... 48 Figure 13 Mikado Mine plan view …………………………………………………………….. 49 Figure 14 Mikado Mine longitudinal section ………………………………………………….. 50 Figure 15 Geologic sectional views of Callahan Mining Co. Mikado drill holes M-2, 3, and 6 ………... 51 Figure 16 Geologic sectional views of Callahan Mining Co. Mikado drill holes M-4 and M-5 ………... 52 Figure 17 Chandalar-Eneveloe plan view of exploration workings …………………………… 55 Figure 18 Chandalar-Eneveloe longitudinal section and cross sections A-A’ and B-B’ ……… 56 Figure 19 Summit Mine plan view of exploration workings ………………………………….. 59 Figure 20 Summit Mine longitudinal section ………………………………………………….. 60 Figure 21 Little Squaw Vein plan view of exploration workings ............................................... 64 Figure 22 Little Squaw Vein longitudinal section viewed north ………………………………. 65 vi Figure 23 Little Squaw Vein traverse section through winze, looking west …………………... 66 Figure 24 Geologic sectional views of Callahan Mining Co. Little Squaw Vein drill holes LS-1 and LS-2 ………………………………………………………………… 67 Figure 25 Geologic sectional views of Callahan Mining Co. Little Squaw Vein drill hole LS-3 68 Figure 26 Little Squaw Creek placer, plan and cross sections of lines 23 (Carlson-Buckley Shaft) and lines 44 and 49 (drill holes) ………………………………………... 82 Figure 27 Photograph of the Tobin Creek 100 ton per day mill ………………………………... 90 Figure 28 Sample location map showing mercury values (in ppm), Tobin Creek mill, Chandalar Mining District, Alaska; analytical data by Columbia Analytical Services, Inc., samples collected by DEC and LSGMC ………………………. 94 Figure 29 Textural features of Chandalar district ores: a) electrum with galena and stibnite at the Mikado Vein; b) gold in association with arsenopyrite at the Mikado Mine; c) gold with galena and stibnite at the Mikado Mine; photos from LSGMC files ………………………………………………………………….. 98 Figure 30 Structural features observed in the Chandalar district gold lodes: a) ribbon quartz segregations at trench/open cut exposure, Mikado Vein as seen in 1982; b) ribbon and sheeted structured quartz lodes at the Eneveloe Vein; c) Adit at the Little Squaw vein illustrating discordant contacts between vein structure and host rocks. Photos from LSGMC files and Mike Garverich ……………... 103 Figure 31 Trace of the Summit Vein system illustrating about 700 feet of vertical mineralization; photo from LSGMC files …………………………………….. 110 Figure 32 Grade and tonnage estimates for low sulfide (mesothermal) quartz gold deposit; model adapted from Cox and Singer (1986) ………………………………….. 112 Figure 33 Grade and tonnage models for orogenic (mesothermal) low sulfide gold quartz deposits; after Goldfarb and others (1997) ……………………………………. 113 Figure 34 Relationship between gold and silver contents of mesothermal gold deposits, in relation to other major gold-bearing deposit types with field of Chandalar deposits (from Poulsen (1990) ………………………………………………… 114 vii LIST OF TABLES Table 1 Estimates of lode gold resources and
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