“What Is Exploration?” Face to Face Sixteen Years of Discovery Persistent Prospecting Led to Discovery of Placer Gold in the Gravel of Donlin Creek in 1909
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projeCt update August 2010 2 “What is exploration?” Face to Face SixTeen YearS of DiscoverY Persistent prospecting led to discovery of placer gold in the gravel of Donlin Creek in 1909. Since then the prospecting and discovery cycle has repeated several more times, and miners eventually recovered roughly 3 30,000 ounces of gold from near-surface deposits. Safety Exploration continues at Donlin Creek, but unlike the previously mined placer deposits from the past, today’s lode gold deposits are contained in bedrock and can extend to great depths beneath the surface. Exploration of these deeper deposits requires scientific methods 4 as well as boot-and-hammer prospecting to accurately estimate what might lie below the surface. Starting Technical Corner in 1994 and continuing today, Donlin Creek LLC (DCLLC) exploration geologists analyze historical data, and complete extensive trenching, surface sampling, geological mapping, geophysics, core drilling and computer modeling. Geologists then work with metallurgists and mining engineers to determine how to extract gold from the rock, mine the deposit in an environmentally responsible manner and layout 5 the operation so buildings and other mine facilities are not constructed over mineral- Opportunities rich areas. Discovery is only the beginning. This lengthy and complex exploration process also provides engineers and planners with the basic geological information to determine if the gold resource is of sufficient quality to support an actual mining project. 5 nexT stepS aT the DOnlin Creek prOject Stewardship Mines are often in difficult-to-access places. This is certainly the case with the Donlin Creek project. Everything from hardhats to hamburgers have to be shipped or flown into the project site since it is not directly connected to a road, water or rail system, making transportation very costly. This is where feasibility studies come into the picture. Not only does there need to be a mineral deposit to mine, but the economics must make sense. The question of, “can the project be developed profitably?” needs 6 to be answered, and this requires estimating the capital and operating costs of a mine History against the potential revenues from production. The biggest challenge at the Donlin Creek project is access to power. It is estimated the mine operation would require 127 megawatts of energy with peak loads of From the 152 megawatts. This is a significant amount of power; for comparison, Anchorage ground up continued on page 3 Face to Face with Doug Nicholson Our condolences go out to the family of a young man from Nevada who died Monday June 21, 2010 following an accident at the Livengood exploration project about 70 miles northwest of Fairbanks. It was reported that the cause of the accident was a piece of clothing caught in moving equipment during exploratory drilling. This is the first mining death in Alaska since 2007 and underscores the importance of workplace safety, training and attention to detail in the mining exploratory work environment. Donlin employees and management live by the motto, “Every Person Going Home Safe and Healthy Every Day.” Our culture of safety guides employees’ actions both on and off the worksite. We watch out for one another, share skills and knowledge, and create a supportive environment. This philosophy is not turned off at the end of the day; it is always operating. It is vitally important that the whole team works together to be safe and all employees are focused on their own safety and that of their co-workers. For several years in a row “every Donlin Creek LLC has been honored with the Barrick Merit of Safety Award, a distinction that recognizes 360 days of zero Lost Time Accidents. This is evidence of our outstanding person workforce and their commitment to a job well done. going Donlin Creek has remained a safe workplace because everyone plays his or her part in making it safe, and we thank you for your hard work. home safe and healthy Doug Nicholson President and General Manager every day.” Donlin Creek LLC timeline NEPA process - 3+ years construction operation mine closure on-going mine site and water monitoring regional and tribal consultation with the mine the expected life and reclamation 16 years oF exploration state and Federal regulatory agencies will continue past the will take of the mine life of the mine. national environmental policy act will require an approximately is determined environmental impact statement 3 years to to span 20 years the proposed gas pipeline Feasibility there will be opportunities for formal public comment construct. or more. project is studies are studies are during the NEPA process. defined by conducted. conducted. donlin creek agencies define the findings of the final NEPA LLC. the scope of the NEPA processes findings are continuing exploration NEPA process. are drafted. submitted. donlin is here 2 permit applications submitted permit decision Safety heliCopter operAtions Environmental and engineering field work being conducted this summer to collect data for reviewing a gas pipeline option will require helicopter support. The length of the proposed pipeline – 325 miles – is such that workers cannot walk to every work site. Therefore, they will be helicoptered in from lodges where they are staying to drop-off spots along the proposed route. They will then walk short distances to each of the sites being studied. The following are general safety rules when traveling by helicopter: 1) Follow the pilot’s instructions – they need to be able to see you at all times and will instruct you where to prohibited stand and when to move. acceptable 2) Never approach a helicopter from the rear even if the engine is not running – the pilot will not be able to see you from behind the aircraft, and the moving tail rotor is very dangerous and it is not visible when it is running. 3) Hold onto all light-weight items as they could be blown away; if an item does get blown away, do not chase preferred after it when the rotors are turning. It's not worth your life. acceptable 4) Pay close attention to the pilot’s acceptable pre-flight briefing. Where there are no roads, helicopters provide unrivaled preferred access, but remember: in a helicopter you are the cargo. Do what you are told, keep your head down and your hands to yourself, and stay safe. “What is exploration?” continued from cover Municipal Light & Power reaches peak loads of about 180 permiT Time megawatts. Therefore, cost–effective sources of energy After the feasibility studies are completed it is anticipated need to be developed or obtained since the project and that DCLLC will file project development permit the area are not connected to a power grid. Over the applications by the end of 2011. Exploration, feasibility next 12 to 18 months DCLLC will conduct further studies and the permitting process are all lengthy but important for a 12-inch, 325-mile natural gas pipeline to bring milestones that mark the Donlin Creek project’s advance gas to the mine site. Once these pipeline studies are towards a construction decision. completed, DCLLC will revise its feasibility study for this new power source option. 3 Technical Corner Reprinted with permission from Barrick’s Corporate Responsibility program CAse study: CulturAl understAnding key to successFul Native hire progrAm in AlAskA At the remote Donlin Creek mining project, an innovative • 50% failure of random drug screening tests local hiring program was established to provide employment • 70% voluntary termination - this figure only includes and skills training for the Indigenous peoples of the Yukon- employees that passed the drug screening tests and Kuskokwim region. The Native hiring program was first were not terminated established in 1996, and it continues today. The combination of these failures made it clear that significant Presently, the Donlin Creek project is staffed primarily by action was needed. For the program to be successful, the Yup'ik and Athabascan Natives. Although now highly successful, team at Donlin needed to understand why these failures the local Native hire program encountered significant, had occurred and take action. A cross-cultural outreach unanticipated challenges early on, as a variety of social, cultural plan and consultation was undertaken to gain a deeper and economic factors threatened to jeopardize its success. understanding of the social, cultural and economic obstacles these employees were facing. Research and consultation Local Native Alaskans nearest to the Donlin Creek project with project partners, former and current employees and are Yup'ik and live throughout Western, Southwestern surrounding communities led to a comprehensive action plan. and South-central Alaska. The Yup'ik culture in Alaska has endured many years of limited economic opportunities and THe new actiOn plan exceedingly high unemployment. Aside from government- • The company’s drug policy was redrafted to include funded work projects, few job prospects had previously hard and fast penalties, yet provide for a period in which existed for Native men and women in the region. employees could reapply for employment following a violation, provided they met certain milestones. THe local Hire prOgram aT DOnlin In order to provide stable jobs and develop the skills of local • An on-site professional counselor was hired, Indigenous people, preferential consideration is given to local specializing in substance abuse, family counseling, Alaska Natives in the hiring process. Specifically, the program workplace counseling and stress management. stipulates that members of local Native communities, and their • Worker rotations were adjusted from 20 days on /10 spouse or descendants, should be given first consideration for days off to a two week on / two week off rotation, 12 any job that becomes available for which they are trained (or hours per day. could be trained in a reasonable amount of time) over other • To build trust, a local Alaska Native was hired as the candidates from outside the region.