3 EPA report arms Pebble resistance Bristol Bay review provides mine foes with powerful tactical resource 10 New predator roams the Yukon Three juniors with promising assets unite to form new Golden Predator 16 Mining endures as BC cornerstone New Afton, Mt. Milligan start in 2013; Red Chris, Roman target 2014

This bar contains the six-millionth ounce of gold poured at Kinross Gold Corp.’s Fort Knox Mine near Fairbanks, Alaska. Including the record 428,822 ounces recovered A special supplement to Petroleum News from the rejuvenated Fort Knox Mine, Alaska gold production topped 1 million ounces in 2013 for the first time since 1906. WEEK OF PHOTO BY GREG MARTIN, COURTESY OF KINROSS GOLD CORP. January 26, 2014 2 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 26, 2014

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l ALASKA Report backs bid to smash Pebble EPA assessment claims large-scale mining could harm Bristol Bay fishery; Sen. Mark Begich, D-Alaska: ‘Pebble is not worth the risk’

By SHANE LASLEY “There are a variety of authorities Mining News under the Clean Water Act and the National Environmental Policy Act and

he final rendition of the U.S. SHANE LASLEY we have made no decision with respect TEnvironmental Protection Agency’s with what comes next or what authorities Bristol Bay Assessment does not opine on we might use going forward,” the EPA whether large-scale mining should be administrator explained. allowed in the Bristol Bay watershed; the report does, however, provide “an impor- Pre-emptively veto tant tactical resource” for those opposed SEN. MARK BEGICH SEN. LISA MURKOWSKI The most extreme of the options being JOHN SHIVELY RON THIESSEN to developing the world-class copper- considered by EPA is to exercise a pre- gold-molybdenum deposit at Pebble. “The Bristol Bay watershed, and the sumed authority under Section 404 of the been used to deny a project the right to “The assessment is a technical fishery there, and the size and scope of Clean Water Act to pre-emptively veto the apply for permits, EPA claims it has the resource for governments, tribes and the the Pebble deposit are pretty unique,” permits needed to develop a mine at power to do so. public as we consider how to address the McLerran said during a Jan. 15 media Pebble. In 2010, Nunamta Aulukestai, a challenges of large-scale mining and eco- conference in conjunction with the Under section 404 of the Clean Water Southwest Alaska Native conservation logical protection in the Bristol Bay release of the final Bristol Bay Act, the U.S. Army Corps of Engineers is group and fellow Pebble opponents such watershed," said EPA Region 10 District Assessment. charged with issuing permits for dis- as Trout Unlimited urged the EPA to test Administrator Dennis McLerran. When asked whether EPA believed a charge into wetlands. Some 130 million the extent of its presumed Clean Water Pebble, considered to be the largest mine at Northern Dynasty’s Pebble acres of Alaska, about the combined area Act authority to proactively strike down known undeveloped copper-gold-molyb- deposit and the Bristol Bay fishery could of California and Kentucky, are consid- the ability to permit Pebble. denum deposit on the planet, contains an co-exist, McLerran responded, “I think ered wetlands. Much of this vast expanse, Before responding to these requests, estimated 80.6 billion pounds of copper, the assessment speaks for itself.” including the Pebble property, is treeless EPA decided to carry out the Bristol Bay 107.4 million ounces of gold and 5.6 bil- The regional administrator went on to areas of moist and wet tundra underlain Assessment. lion pounds of molybdenum. explain that the final rendition of EPA’s by a permanently frozen layer that pro- “Now that the assessment is complete, “The Pebble deposit is an extraordi- Bristol Bay Assessment has identified hibits water drainage. we at EPA will begin the process of nary deposit; it has the potential to be one “direct impacts on the fishery that include Although the Corps has been relegated deciding how now to respond to the of the world’s largest porphyry gold and loss of streams and wetlands that are fish- the authority over the discharge permits requests from tribes and others to take copper mines,” admitted McLerran. bearing streams and potential impacts on on these wetlands, under section 404(c) regulatory action,” McLerran explained. But, this extraordinary deposit is the fishery in the Bristol Bay watershed.” EPA was granted the power to prohibit, Conservation groups have made it found in a region of Southwest Alaska McLerran emphasized that the final- restrict, or deny such permits that pose an clear what actions they want the federal that is also host to the largest sockeye ization of the report does not represent a unacceptable adverse impact to fisheries government to take. salmon fishery in the world, which, regulatory decision by the EPA and that or other water uses. according to EPA’s report produces nearly the federal agency will now begin the While CWA Section 404(c) has never see EPA REPORT page 4 50 percent of the world’s wild sockeye process of determining what actions, if salmon with runs averaging 37.5 million any, should be taken. fish each year. Contact North of 60 Mining News: Publisher: Shane Lasley • e-mail: [email protected] Phone: 907.229.6289 • Fax: 907.522.9583

North of 60 Mining News is a monthly supplement of the weekly newspaper, Petroleum News. It will be published in the fourth or fifth week of every month.

Shane Lasley PUBLISHER & NEWS EDITOR ADDRESS P.O. Box 231647 Rose Ragsdale EDITOR-IN-CHIEF (contractor) Anchorage, AK 99523-1647

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FAX FOR ALL DEPARTMENTS Judy Patrick Photography CONTRACT PHOTOGRAPHER 907.522.9583 Forrest Crane CONTRACT PHOTOGRAPHER Several of the individuals Tom Kearney ADVERTISING DESIGN MANAGER listed above are independent contractors Renee Garbutt ADVERTISING ASSISTANT

Mapmakers Alaska CARTOGRAPHY

NORTH OF 60 MINING NEWS is a monthly supplement of Petroleum News, a weekly newspaper. To subscribe to Petroleum News and receive the monthly mining supplement, call (907) 522-9469 or sign-up online at www.PetroleumNews.com. The price in the U.S. is $98 per year, which includes online access to past stories and early access to Petroleum News every week. (Canada/Mexico subscriptions are $185.95; overseas subscriptions are $220) Or, just purchase the online edition of Petroleum News, which also includes the mining supplement and online access to past stories, for $69 per year. 4 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 continued from page 3 provide EPA.” “We had certainly hoped that EPA “I think the assessment speaks for The potential that the EPA may proac- would depoliticize this process and come EPA REPORT itself.” —Dennis McLerran, district tively thwart the ability to apply for per- back to its legitimate and important role of administrator, EPA region 10 mits to develop Pebble was a hot topic evaluating this project based on the best “The science is indisputable,” said during an Oct. 10 U.S. House available science, an evaluation which Trout Unlimited President and CEO Chris Subcommittee on Energy and Mineral should take place in the very comprehen- Wood. “Bristol Bay is the world’s most economy strong. But years of scientific study has proven the proposed Pebble Resources hearing provocatively titled sive permitting process established by fed- important wild salmon fishery, and no “EPA vs. American Mining Jobs: The eral law,” said Pebble Partnership CEO place for a large-scale industrial mine. The Mine cannot be developed safely in the Bristol Bay watershed,” Begich said in his Obama Administration’s Regulatory John Shively. “Clearly this report should EPA has done its job, and it’s now time for Assault on the Economy.” not be used as the basis for any type of the Obama administration to use its first public statement in opposition to the project. During the hearing, Energy and agency decision regarding Pebble.” authority under the Clean Water Act to Minerals Chairman Doug Lamborn, R- Northern Dynasty, currently the sole stop the mine and protect the $1.5 billion- “Thousands of Alaskans have weighed in on this issue, and I have listened to their Colo., described the Bristol Bay owner of the Pebble Partnership, aims to per-year fishery.” Assessment as “an effort to pre-emptively have a comprehensive plan to mine the Sen. Mark Begich, D-Alaska, agrees concerns. Pebble is not worth the risk,” he added. veto mining across a whole region of world-class copper-gold-molybdenum that the science is indisputable. Alaska.” deposit by April. “I have always said I will let science be Rigorous permitting “At the heart of this issue is the lack of “We look forward to defining a pro- my guide, and my decision whether to confidence in permitting by the federal posed development plan for Pebble and to While Sen. Begich has taken a position support the Pebble project will be based government,” testified Lamborn. “If, having it reviewed by federal and state on the development of Pebble, the balance on this report,” Begich said, immediately without cause, an agency can retroactively regulatory agencies under the National of Alaska’s delegation – Sen. Lisa upon release of the Bristol Bay assess- veto issued permits or prospectively veto Environmental Policy Act (NEPA) in the Murkowski, R-Alaska and Rep. Don ment. permits not applied for, then how can any months and years ahead,” said Northern Young, R-Alaska – continues to contend That science guided the senator to company, contractor or concessionaire Dynasty President and CEO Ron that Pebble should be evaluated within the believe that the development of Pebble have confidence to invest in America Thiessen. “We have every expectation that confines of the United States’ rigorous poses too great a risk to the fishery, mak- when their permit is not worth the paper it the environmental impact statement permitting process. ing him the first member of Alaska’s cur- is written on?” process required by NEPA, to be adminis- “If the EPA has concerns about the rent congressional delegation to speak Alaska’s mining community, which tered by the U.S. Army Corps of impact of a project, there is an appropriate directly against the development of a mine characterized EPA’s work on the assess- Engineers, will ultimately provide a much time to raise them – after a permit appli- at the project. ment as rushed and flawed, agrees that the more rigorous, fair and transparent review cation has been made, not before, “said “I have long been a strong supporter of federal agency should withhold judgment of the science surrounding this important Murkowski. “It is clear that a pre-emptive Alaska’s mining industry and believe we until the Pebble Partnership provides a project.” veto is still being considered by EPA. must do all we can to support resource mine plan. Even if EPA does chose to withhold Such a veto is quite simply outside the development industries that provide fami- “As a miner, a lifelong Alaskan, and an judgment until the permitting process is legal authority that Congress intended to ly wage jobs for Alaskans and keep our American, I am disappointed. First and underway, it is likely the Bristol Bay foremost, natural resource development assessment will continue to play a role. projects should always be evaluated by “The assessment itself will serve as a science and facts. Nothing more, nothing basis for EPA’s responses to the May 2010 less,” said AMA Executive Director request from the nine Bristol Bay region Deantha Crockett. “In its assessment, the tribes. It also will be an important tactical EPA has done an injustice to all develop- resource for the public, tribes and govern- ment projects by supposing scenarios of ments who must consider how best to poorly designed mines, omitting real-life address the challenges of mining and eco- standards that mining projects must fol- logical protection in this special place, the low, and exaggerating the impacts result- Bristol Bay Watershed,” McLerran pre- ing from what is an impossible scenario.” dicted. l PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 5 NORTH OF 60 MINING

l COLUMN Could Alaska host rare critical metal? USGS presentation at recent meeting cites high concentrations of scandium in offshore Arctic deposits, raises intriguing question

By CURT FREEMAN Interior Alaska The report, conducted by the The MCDOWELL GROUP, covers a wide For Mining News On a much brighter note, and one felt array of social and economic benefits author by every Fairbanks-area resident, that occur because of the mine’s pres- f you believe what you see in the announced the The author KINROSS GOLD CORP. ence in the region. The report indicated Ipress, Alaska’s mineral industry was pouring of the 6 millionth ounce of gold recently given a Christmas gift that Curt Freeman, that the mine employed 329 workers in on Dec. 18, 2013 at its Fort Knox mine! trumps even the high-grade anthracite CPG #6901, is a 2012, of whom 70 percent were residents When the mine poured its first ounce of coal that most Alaskans were dreaming well-known geol- of the Fairbanks North Star Borough. gold, in late 1996, the deposit had a little of during the last 40-below cold snap. ogist who lives in Average salary of these workers was over 4 million ounces of gold in its total The Alaska Dispatch reported on a Fairbanks. He pre- US$116,916, more than twice the state- pared this column resource. Of that, a little less than 3.5 recent presentation at the fall 2013 meet- CURT FREEMAN wide average salary. Another 335 Jan. 20. Freeman can be reached by million ounces was expected to be recov- ing of the American Geophysical Union induced and indirect jobs were generated mail at P.O. Box 80268, Fairbanks, AK erable into bar form over its 10-year titled, “Critical Metals in Western Arctic by the mine, 215 of which were in the 99708. His work phone number at mine life. So here we are, 17 years down Ocean Ferromanganese Mineral local area. These jobs contributed an Avalon Development is (907) 457-5159 the road, pouring ounce No. 6 million. Deposits,” by James Hein, a senior sci- additional US$26 million to the Alaska and his fax is (907) 455-8069. His email That is how you spell success! entist at the U.S. Geological Survey and economy. The mine spent US$127.2 mil- is [email protected] and his website is Congratulations to all the employees and adjunct professor of ocean sciences at lion with 290 Alaska-based vendors and www.avalonalaska.com. contractors that made it happen! the University of California-Santa Cruz. contractors. Of that total, US$82.7 mil- FREEGOLD VENTURES LTD. The talk outlined the findings from lion was spent in with vendors and con- Significant results include 15.35 meters announced the signing of a memoran- 2008, 2009 and 2012 on the Arctic conti- tractors in the local area. The mine paid grading 4.04 percent graphitic carbon in dum of understanding with the ALASKA nental shelf where scientists collected US$24.3 million in taxes to state govern- hole 13GCH014B, 29.55 meters grading DEPARTMENT OF NATURAL and analyzed the chemical contents of ment, including US$5.9 million for the 5.01 percent graphitic carbon including RESOURCES, Office of Project ferromanganese crusts and nodules. The Alaska Mining License Tax and US$4.8 14.0 meters grading 7.15 percent Management and Permitting for engage- results show that samples from the million in Alaska Production Royalty graphitic carbon in hole 13GCH017 and ment with the state’s large mine permit- Arctic Ocean differed in chemical com- payments. The mine also contributed 52.0 meters grading 6.02 percent ting team to assist in planning and con- position from other oceans. In particular, US$811,000 to 40 Alaska non-profit graphitic carbon in hole 13GCH08, a ducting the company’s preliminary eco- these surveys found that western Arctic organizations, US$353,000 to the 2012 drill hole that will now be included nomic assessment on its Golden Summit Ocean continental shelf ferromanganese University of Alaska’s Mining in a revised resource estimate, expected project. The large mine permitting team crusts and nodules were the only ones Engineering Research Endowment and out shortly. offers multi-disciplinary expertise and is from the global oceans enriched in scan- US$300,000 to the city of Delta for vari- NORTHERN DYNASTY MINERALS involved from pre-permitting to post-clo- dium, a mysterious silvery-white metal ous capital and special projects. Mine LTD. provided an initial response to the sure of mines in Alaska. The company that is sometimes classified as a rare employees also contributed an estimated U.S. Environmental Protection Agency’s expects to award the PEA contract in the earth element, and often found in elevat- US$170,650 to Alaska charities in 2012. final version of its Bristol Bay near term, with the aim of having the ed amounts in rare earth element and Public school students of mine employ- Watershed Assessment, an initiative study completed during 2014. Since uranium deposits. There are currently no ees numbered about 207, bringing an launched by the EPA in February 2011 drilling began on the Dolphin/Cleary primary scandium mines on earth, but estimated US$1.7 million in state educa- to assess the effects of current and resource area of the Golden Summit this highly heat resistant and tough metal tion funding to local schools. potential future development on the nat- Project in 2011, the company has suc- is even lighter than titanium; so it is in ENDURANCE GOLD CORP. ural resources of Bristol Bay. EPA cessfully increased the resource by 867 high demand in the aerospace and announced final 2013 field results from released drafts of the watershed assess- percent in the indicated category and defense industries. So what, you say? its 4,960-acre Elephant Mountain gold ment in May 2012 and April 2013 to 820 percent in the inferred category. How about this: While trade in scandium project. The 2013 summer program widespread criticism about the report’s Currently, the industry-compliant indi- is extremely small in volume, at only returned gold values in grab samples up flawed methodology and findings, cated resource is 79.8 million metric about 12,500 pounds per year, scandium to 4.4 g/t gold associated with a strong including from the State of Alaska, tons averaging 0.66 grams per metric ton sold for $15 million per ton in 2013! gold-arsenic soil anomaly. The 2013 rock Alaska Native groups and expert Peer gold for 1,683,000 ounces, and an Impressive as that may seem, submarine and soil sampling program collected 61 Reviewers commissioned by the federal inferred resource of 248.06 million met- mining of ferromanganese crusts and rock grab samples with the best gold agency. The company indicated that it ric tons averaging 0.61 g/t gold for 4.84 nodules is a costly and technically chal- values associated with altered intrusive believed the EPA set out to do a flawed million ounces using 0.3 g/t gold per lenging endeavor. So the question must and quartz vein stock-work material analysis of the Pebble project. It further metric ton as a possible open pit cut-off. be asked: is scandium in commercially including 4,440 parts-per-billion gold, as indicated that the EPA did not consider HUNT MINING CORP. announced attractive concentrations present on the well as 1,920 ppb, and 1,880 ppb gold. the critical environmental safeguards and that it has elected not to proceed with Alaska mainland? While I don’t know of The highest gold value is related to the modern mitigation methods that state the proposed Amanita gold project in the any primary scandium prospects in the South Zone soil anomaly, where previ- and federal permitting will require for Fairbanks District as it had announced in state, is it because they don’t exist or ous work by Placer Dome resulted in a Pebble. Even then, the EPA has grossly September 2013. The company will be because we have not looked for them? grab rock sample that assayed 411.4 g/t over-estimated the effects of its under- focusing its efforts on its extensive hold- While I am skeptical that Alaska will gold and where a 2007 prospecting and engineered project. The ALASKA ings in Argentina. become home to a primary scandium sampling program resulted in the discov- MINERS ASSOCIATION also panned the SUMITOMO METAL MINING CO. mine, stranger ideas have borne fruit ery of gold in grab samples of quartz study, indicating that the EPA uses hypo- LTD. and SUMITOMO CORP. before in this never-dull industry! vein material from the intrusive that thetical and unrealistic mining scenarios announced a study outlining the socioe- drawn from an outdated economic conomic impact of its Pogo gold mine. Western Alaska see FREEMAN page 9 report, not the data included in a real GRAPHITE ONE RESOURCES INC. submitted or completed mine plan. EPA announced final 2013 drilling results also omitted current state and federal from its 1,023-meter, 10-hole drilling regulations that would be applied to any Don’t settle for a dirty program at its Graphite Creek property hose, get an Ultra Cleaned such project, and ignored modern min- hose from Alaska Rubber! north of Nome. The drilling program ing practices. We have definitely not doubled the total strike length of the cur- heard the last on this report. rent resources to 4.8 kilometers

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l COLUMN Be very afraid OUR for three more years HISTORY With the Obama Administration settled in for its second term, untold burdens on mining in Alaska foreseeably will spew forth

By J. P. TANGEN Mining Aerospace & Special to Mining News Technology Services & the YOUR s a co-chairman of the Federal law Oversight Committee of the Alaska Yulista Management A Miners Association for the past many The author, Services, Inc. years, it is interesting to me to see how J.P. Tangen has FUTURE the flow of new tinkering with the con- been practicing Y-Tech Services, Inc. duct of local affairs ebbs and flows at mining law in J.P. TANGEN Yulista Aviation, Inc. various stages of an incumbent federal Alaska since 1975. He can be reached at CALISTA administration. [email protected] or visit his Web site at The federal government still owns www.jptangen.com. His opinions do not more 27 percent of our nation’s land, necessarily reflect those of the publishers Construction & CORPORATION concentrated in the 11 contiguous west- of Mining News and Petroleum News. ern states and Alaska. About 225 mil- Engineering IS A PROUD lion acres, or 62 percent, of our state In the first term a President gets to falls into that category. Therefore, land pick his team, and weed out the heretics. Aulukista, LLC PARTNER IN management is of considerable concern In his second term, they go to work. The Brice Companies to our committee. Land issues, however, political appointees, who are the people are not the beginning, nor are they the who do the major damage in any admin- STG Incorporated ALASKA’S end of the issues that occupy our atten- istration, have a license to take their Tunista Services, LLC tion. Clearly, the U.S. Environmental shot. Who can forget John Leshy, draft- GROWING Protection Agency, with its regulatory ing Solicitor’s Opinions as the lights in Tunista, Inc. focus on air and water as well as haz- the Interior Solicitor’s office were being Tunista Construction, LLC ECONOMY. ardous waste is a major source of con- turned off for the last time in the Clinton cern. The U.S. Army Corps of Administration? Yukon Equipment, Inc. Engineers, likewise, draws the attention Already, the incumbent President is of our committee, and there is always the governing by Executive Order in many Working with Mine Safety and Health Administration, matters; and, while the attempt to imple- which enforces working conditions at ment the so-called Affordable Care Act Environmental our strong mines. draws the attention of the popular press, family of New issues of concern come “over the his multitude of other minions are at Services transom” for the committee to consider their desks quietly generating standards, companies, as a ponderous rate, perhaps twice as guidelines, plans, regulations, policy Brice Environmental fast as under the previous administration, positions and a thousand other varieties E3 Environmental Calista is which increased its own proposals at an of obstacles for the men and women who committed to accelerating rate. Whether a federal provide the metals and minerals that administration is Republican or make the nation function. contributing Democrat, the urge to consolidate power Now that these Assistant Secretaries Telecommunications with the central government is seemingly and Deputy Assistant Secretaries and to Alaska’s irresistible. Special Assistants have learned the path Futaris future through In recent months we have watched the to the restroom, their jobs are essentially Bureau of Land Management propose safe until January 2017. No one who Sequestered Solutions successful plans for the future of the public domain finds himself in such a position of power in Alaska and proceed as if there was no is there simply because he or she was the business such thing as “multiple use.” We have best person for the job. Do not misun- seen the EPA usurp the authority of the derstand, these appointees are generally Hospitality & ventures Army Corps to literally banish that accomplished and have “relevant” expe- and strong agency’s jurisdiction over wetlands regu- rience; however, they also have stereo- Support Services lation through the generation of a woe- typically earned their position by making relationships. fully inept assessment in Bristol Bay, by wise political decisions, and they have Chiulista Services, Inc. the use of make-believe premises. We the ego to prove it. have seen the State Department reach They will not waste this opportunity across the Bering Strait to propose an to advance their respective personal international park with our Russian agendas. It is a given that those personal Marketing & neighbor, which can only be construed to goals are consistent with the those of the be a barrier to development. Chief Executive, namely, to concentrate Communications It seems to make no difference to the the management of the country, in every Solstice Advertising Obama administration, in particular, particular, in the hands of the self-pro- what the law says, or what it was intend- claimed erudite. ed to accomplish, if it can be used to The point, I think, is that the AMA’s advance a political objective. The costs Federal Oversight Committee is destined in the health and wealth of those who to be confronted with a staggering work- Real Estate work for and at Alaska’s mines seem load over the next three years. The com- Calista Real Estate irrelevant. mittee is comprised a small handful of The forgoing prologue, however, must AMA members who volunteer each be considered in the context of where we week to evaluate and participate in the are in the election cycle. Due to the wis- response to the innumerable expectorants dom of those who preceded us, the pos- the government projects our way. Nonprofit sibility of a “President for Life” became As the industry continues to grow so Calista Heritage unconstitutional. As is often the case, will the workload of the committee and when our leaders turned their hand to the AMA and, in turn, the number of Foundation term presidential limits, it had an unan- Alaskans who will perceive their future ticipated consequence. Now, any is tied to resource development. President who is elected to a second Talented analysts to parse the onslaught term immediately becomes a lame duck of federal incursions are in constant Calista Corporation, 301 Calista Court, Ste. A, Anchorage, AK 99518 and, therefore, can get away with virtual- demand. Readers of this column may t: (907) 279-5516 + f: (907) 272-5060 +[email protected] ly anything he chooses. wish to consider participation. l PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 7 NORTH OF 60 MINING

l ALASKA Golden 2013 for Alaska miners Banner year at Fort Knox hoists annual gold production above 1 million ounces for first time since early 20th Century Gold Rush

By SHANE LASLEY has primarily been mined from the Liese Mining News zone – three flat-lying, parallel quartz veins that carry high-grade gold. purred by a record-setting pace at The gold-rich veins of the Liese zone SKinross Gold Corp.’s Fort Knox Mine, end abruptly where they come in contact Alaska gold production topped 1 million with a gold-barren body of diorite to the ounces during 2013, a golden milestone not northeast. In 2010, the Pogo exploration achieved by Last Frontier gold miners since team decided to drill-test an area just north 1906. of the diorite. This exploration drilling Though more than a century lies tapped East Deep, a zone of quartz-vein between these monumental milestones, structures with grades and thickness that are they are linked by a discovery made by strikingly similar to those that have provid-

Felice Pedroni, an Italian immigrant better OF KINROSS GOLD CORP. COURTESY GREG MARTIN, ed feedstock for the Pogo mill over the past known to Alaskans as Felix Pedro. six years. It was Pedro’s gold find in an Interior Through the end of 2012, 75 holes Alaska stream in 1902 that sparked the drilled into East Deep have outlined Fairbanks Gold Rush, an event that helped reserves of 2.36 million metric tons averag- propel Alaska gold production above the 1- ing 12.7 g/t (964,000 ounces) of gold and million-ounce mark in 1906. Today, the Fort resources of 1.23 million metric tons aver- Knox Mine, which accounts for more than aging 13 g/t (514,000 ounces) gold at the 40 percent of the gold produced in Alaska newly discovered zone. This drilling pro- during 2013, sits at the headwaters of Pedro The six-millionth ounce of gold was poured at Kinross Gold’s Fort Knox Mine on Dec. 18, a vides strong evidence that the Liese and Creek, the locale of the historic discovery. milestone that marks 2 million ounces produced beyond estimated reserves when the oper- East Deep zones were once a contiguous Fort Knox and Alaska’s four other gold- ation began in 1996. ore body that became separated when the producing hardrock operations accounted diorite split the two zones as it intruded here is that when we started up late in 1996, Kinross has not announced results from for some 954,000 ounces of the gold pro- along the Liese Creek fault about 95 million we had only estimated about 4 million the drilling, trenching and other exploration duced in the Far North State during the year. years ago. ounces of reserves,” Hill observed. completed at Gil since 2011. Roughly 780,000 ounces of this aurum was These zones are believed to converge at When Kinross began mining at Fort recovered from Fort Knox, located about 25 the North zone, a high-grade gold deposit Knox in 1996, the deposit had 4.1 million More high-grade at Pogo miles (40 kilometers) north of Fairbanks, located at the northwestern end of the dior- ounces of proven and probable gold and Sumitomo Metal Mining’s Pogo opera- Pogo, which reigned as Alaska’s top gold ite. The North zone is distinctive due to the reserves; going into 2013, the operation had tion, located some 60 miles (100 kilome- producer from 2008 through 2012, relin- vertical orientation of the veins found there. 3.6 million ounces of gold in reserves. ters) to the southeast. The Kensington, quished the top spot to Fort Knox in 2013. These narrower but higher grade veins are “We have poured now our six-millionth- Greens Creek and Nixon Fork mines round- The 2,500-metric-tons-per-day mill at believed to be feeders that provided a con- ounce, and we have many ounces left in the ed out the hardrock contribution to Alaska’s Pogo produces roughly 1,000 ounces of duit to deliver the gold-rich fluids to the ground for future reserves,” Hill added. gold production in 2013. gold per day, a pace it carried through the Liese zone to the south and the East Deep Also, with exploration continuing at and The hardworking individuals and fami- year. While Sumitomo Metal Mining has zone to the east. The 2013 exploration around the immediate mine area, it is lies that make up the Last Frontier’s modern not published Pogo’s final output for the drilling at Pogo focused on tracing East expected that the company will continue to placer mining community easily tipped the year, the mine is projected to produce Deep to the North and Liese zones. augment its reserves. scales of the state’s gold output over 1 mil- around 352,000 ounces of gold in 2013. With the mill sitting about where these The Gil gold property, located about five lion ounces. With 2.4 million ounces of gold in three zones meet, accessing the ore at East miles (eight kilometers) east of Fort Knox, reserves (5.06 million metric tons of ore Deep will be essentially the same as the is a potential source of ore to extend the life Fort Knox tops 6M ozs averaging 13.58 grams per metric ton gold) zone for which the operation was built. In of the mine. Kinross, which held a long- and 2.4 million ounces of gold in resources Kinross’ Fort Knox Mine produced 2012, Sumitomo drove two drifts through standing partnership with junior explorer (6.84 million metric tons averaging 10.83 428,822 ounces of gold during 2013, top- the some 300 meters of diorite that separate Teryl Resources Corp. at Gil, bought full g/t gold), it is currently expected that Pogo ping the operation’s previous annual record Liese from East Deep. ownership of the property in 2011. will maintain this pace into 2019. In addi- of 411,220 ounces recovered in 2001. These access drives have provided a Shortly before selling its stake in the tion, the ongoing expansion of East Deep Kinross attributes this record gold pro- platform for further expanding the new property, Teryl reported an NI 43-101-com- and other nearby deposits likely will add duction to improved heap-leach perform- zone as well as early access to the gold-rich pliant heap leach resource of 514,916 several more years to this projection. ance and a second carbon-in-column circuit ore found here. A bulk sample of East Deep ounces of gold contained in 19.86 million Since the Pogo gold mine went into pro- brought online at the beginning of July. In short tons of mineralized rock. duction in 2006, the feedstock for the mill fact, roughly 35 percent, or some 150,000 see GOLDEN 2013 page 8 ounces, of the mine’s 2013 gold production came from the heap leach side of the oper- ation. While heap leaching – a process in which a weak cyanide solution dissolves gold from low-grade ore – is not itself inno- vative, the ability to operate such a facility without freezing during the brutal cold of )TT;MI[WV[ Interior Alaska winters is a challenge. “Heap leach is a common process in the ‘Lower 48’ but this far north in the Arctic environment the heap leach is quite the Fuel Systems challenge. Good engineering and good Portable Tent Camps teamwork here at site to overcome those Expediting Services challenges has been very successful for us,” Fort Knox General Manager Eric Hill told Camp Catering & Mining News during a Jan. 13 interview. Services 2700 S. Cushman, Fairbanks, Alaska 99701 | (907) 452-6631 | Fax: (907) 451-8632 This success is not only measured by the 351 East 92nd Ave., Anchorage, AK 99515 | 907-245-3123 record number of ounces being recovered, [email protected] | www.taigaventures.com but the low costs to extract that gold. It cost US$555 to produce an ounce of gold at the Interior Alaska mine during the third quar- ter of 2013, making the open-pit mine sec- Baroid ond only to the high-grade Kupol mine in Johnson Screens Russia in terms of per-ounce cost among Pacto Waterless Kinross’ global operations. Toilets As a result of the record-setting pace, the six-millionth ounce of gold was poured at Well Monitoring Supplies Fort Knox on Dec. 18. “I think that the thing that is quite excit- ing for us at site and the employees that are 8 NORTH OF 60 MINING continued from page 7 With the plant availability, head grades and plant recoveries all running lower than GOLDEN 2013 expected, roughly 8,800 ounces of Nixon

SHANE LASLEY Fork gold was sold during 2012, substan- ore was processed during the third quarter tially less than the 30,000 ounces the com- of 2013. To mine the high-grade gold at pany had forecast. East Deep, Sumitomo is developing the With the challenges that plagued Nixon 2150 portal. With permits in-hand, Fork carrying over into 2013, the lower- Sumitomo Metal Mining Pogo plans to than-projected gold recoveries continued. begin processing ore from East Deep in Gold production at Nixon Fork peaked at 2014. In addition to expanding East Deep 2,032 oz in January. westward to the North Zone, Sumitomo Laden by heavy debt and unable to reach Metal Mining Pogo said the deposit remains commercial production Fire River, in late open to the north, a target of future explo- June, said it was placing Nixon Fork on care ration. and maintenance “until a revised operating Expanding East Deep and other nearby plan has been developed and market condi- deposits is expected to augment the reserves tions improve.” While this is not good news at Pogo, ensuring the underground deposit for the struggling operation, the worst was Laden by heavy debt and unable to reach commercial production Fire River Gold shut down continues to contribute some 1,000 ounces a yet to come. day to Alaska’s gold production for years to the Nixon Fork Mine in June, but not before the operation could contribute roughly 9,000 ounces to gold produced in Alaska in 2013. At the end of April, Fire River Gold come. reported assets, including C$5.83 million 10 percent lower than the first quarter 2013 Hecla’s Greens Creek Mine in Southeast Consistency at Kensington for the Nixon Fork property and equipment, due to the processing of lower-grade stock- Alaska. of C$10.44 million; versus liabilities, Situated some 45 miles (72 kilometers) pile ore at the Southeast Alaska operation. While final 2013 production numbers including C$22.27 million in loans and north of Juneau, Coeur Mining’s Kensington Improving gold grades as higher-grade have yet to be released, with 42,735 ozs of advances, of $32.07 million. The company’s gold mine began commercial production in stopes are mined and processed in the second gold recovered from the volcanogenic mas- cash had dwindled to C$157,762, according July 2010. During 2011, the underground half of 2013 increased production and low- sive sulfide deposit at Greens Creek to the quarterly statement. operation produced 88,420 ounces of gold at ered operating costs. through September, the full year output In August, the company revealed that it cash operating costs of US$1,088 per ounce. “The Kensington gold mine in Alaska is from the underground operation is antici- missed a C$796,875 principal payment due Unsatisfied with this performance, Coeur now demonstrating its ability to operate more pated to be around 56,000 ounces. to Waterton Global Value Limited decided to invest the time and money needed consistently as planned,” Coeur Mining This gold, along with the zinc and lead Partnership, a fund managed by Waterton to improve the production profile and to posi- President and CEO Krebs said at mid-way recovered, helps place Greens Creek among Global Resource Management. The pay- tion the operation to deliver sustainable and through 2013. the lowest cost silver producers in the world. ment is related to a US$12.75 million gold- consistent performance over the longer term. The increased consistency and improved After by-product credits, the cost of produc- backed credit facility that is secured by a To complete the needed work, the rate of efficiency continued through the final six tion at the mine was US$4.18 per ounce lien and a first priority security interest in production at Kensington was reduced by 50 months. through the first nine months of 2013. substantially all of Fire River Gold’s assets, percent at the beginning of 2012 and gradu- Fourth quarter cash operating costs at Going into 2013, the Greens Creek Mine including the Nixon Fork Mine. ally scaled up to full capacity as the year pro- Kensington are expected to be US$746 per had 94.6 million ounces of silver and In October, 2013, Fire River announced gressed. ounce, approximately 24 percent lower than 719,500 ounces of gold in reserves. it had defaulted on a payment to Waterton One of the key initiatives during this the third quarter 2013. “This mine currently has a mine life of Global Value, L.P. that was secured by Fire scaled back production was the acceleration The increased ounces at lower costs are about 10 years, but we know that where we River’s Nixon Fork gold mine in Alaska. of underground development aimed at creat- expected to push full-year cash operating are drilling that we will, over the course of By the end of 2013, Fire River Gold’s ing more working faces and greater opera- costs down to around US$949 per ounce. the next two years, move material into shares were delisted from both the TSX- tional flexibility. The company also imple- For the full year, Kensington produced reserves,” Hecla President and CEO Phillips Venture Exchange and OTCQX. mented an underground paste backfill plant 114,821 ounces of gold, a 40 percent increase S. Baker Jr. explained in August. Out of cash and weighted down by debt, and related distribution system, providing over the 82,125 ounces produced in 2012 and And, these reserves are expected to Fire River joins a century-long procession access to stopes located in previously mined beyond the 108,000-114,000-ounce guid- include significant quantities of high-grade of miners who have attempted to success- areas; upgraded the electrical infrastructure; ance set forth by Coeur earlier in the year. gold. fully mine the high-grade but exceedingly and completed construction of several new “Gold production in 2013 exceeded our “The 13 years that I have been looking complex gold deposits at Nixon Fork. surface facilities – including a new adminis- guidance range due to a strong fourth quarter at Greens Creek, the best drill results that I trative building, warehouse, worker dormito- at our Kensington mine in Alaska and repre- have seen from the mine have come in the A resurgence in placer sented nearly half of the company's estimat- last four quarters – grades of over half- ry, and expanded kitchen and dining facili- While Alaska’s hardrock operations ed 2013 metal sales,” said Krebs. ounce gold and widths of more than 35-40 ties. pushed Alaska gold production to the brink The Chicago-based miner anticipates pro- feet,” Baker touted. During the first quarter of 2013 of the million-ounce-milestone, it took the ducing 105,000-112,000 ounces of gold at Kensington produced 25,206 ounces of gold Last Frontier’s placer miners to tip the the Southeast Alaska mine in 2014. Last gasp at Nixon Fork at US$1,055 per ounce. Second quarter gold scales. production at the Southeast Alaska Mine Striving to reach commercial produc- A golden role at Greens Creek Placer gold production in Alaska has dropped eight percent to 23,162 ounces at tion, the now defunct Nixon Fork Mine increased by more than fourfold compared US$1,115 per ounce. Gold plays an important role in helping accounted for roughly 9,000 ounces of the to the 23,600 ounces recovered in 2003. Average mill head grade of 0.18 oz/t was keep the costs of mining silver low at gold produced in Alaska during 2013. During 2012, 100,041 oz of alluvial aurum was recovered from across the state, a 21 percent increase over 2011. While small family-owned operations and individuals currently make up the bulk of placer gold production in Alaska, larger companies and more complex operations are joining the Last Frontier’s mining com- munity. During 2012, roughly 53,550 ounces of the placer gold was recovered from opera- tions that produced less than 2,500 ounces on the year, the remaining 46,500 ounces was from mines producing more than 2,500 ounces. Goldrich NyacAU Placer, LLC – a joint venture placer mining company owned equally by Goldrich Mining Company and NyacAU, LLC – is targeting the recovery of up to 20,000 of placer gold annually from the rich alluvial gold deposits that blanket the valleys of the vast Chandalar land pack- age located some 200 miles (320 kilome- ters) north of Fairbanks. Goldrich brings the vast placer potential of the 22,840-acre (9,243 hectares) Chandalar Mining District to the partner- ship, including a 250,000-ounce drill-tested alluvial gold deposit on Little Squaw Creek and a multitude of undefined gold-rich streams with the potential to increase the see GOLDEN 2013 page 9 PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 NORTH OF 60 MINING 9 continued from page 8 venture is exploring a massive placer and run out to about the three-mile (4.8 kilo- Based on historical exploration, it is deposit roughly a mile beyond the golden meters) limit of state-owned land and for believed that the 16,581 acres of offshore GOLDEN 2013 beaches of Nome. some 20 miles (32 kilometers) parallel to leases secured by Placer Marine Mining Placer Marine Mining Inc. – a joint ven- the shoreline. resource several times over. about a mile beyond the golden beaches of ture that combines the gold mining expert- While the Nome beaches and near-shore Nyac, a private mining company owned Nome could hold as much gold as has been ise of AngloGold Ashanti Ltd. with the marine gold deposits have been continuous- recovered from the legendary Nome Mining by Dr. J. Michael James, an Anchorage- marine mining experience of De Beers – is ly worked and reworked for more than a District over the past 114 years. based physician and fourth-generation investigating the potential of dredging a vast century, the depth of the icy water covering The AngloGold-De Beers partnership, Alaskan, is offering more than two decades placer gold deposit lying beneath the icy the deposits leased by Placer Marine of placer mining experience and some waters of the Bering Sea. Mining has prevented individuals and which has invested several million on explo- US$7.2 million in capital to get the mining Placer Marine Mining picked up its small-scale operations from dredging there. ration and baseline studies at the Nome venture into production. Nome offshore properties during a lease Since the discovery of gold there in Offshore property since securing the lease, While the Goldrich NyacAU partnership sale held by the Alaska Department of 1899, the Nome Mining District has pro- is hoping to have the permits needed to seeks to recover aurum locked in the frozen Natural Resources in 2011. These tracts duced roughly 5 million ounces of placer begin mining Bering Sea gold by the 2017 gravels of Alaska’s North, a global-scale start about a mile (1.6 kilometers) offshore gold. season. l continued from page 5 ern Alaska Range. The company’s 2013 effort included 11,067 meters of drilling Southeast Alaska bulk sample program netted 275 ounces in 333 historical drill holes. Two addi- announced a FREEMAN of gold. This doré came from a 75-ton tional metallurgical holes also have been COEUR MINING INC. summary of operating and financial bulk sample at an average head grade of completed and will eventually be incor- returned 12.98 g/t gold, 5.21 g/t gold, highlights for the Kensington mine for 5 ounces-per-ton gold at a recovery rate porated into the resource model once 3.02 g/t gold, 2.59 g/t gold and 2.18 g/t the fourth quarter and full-year 2013. of 60-70 percent. The company invested metallurgical testing has been completed. gold. In addition, Placer Dome also com- The mined produced 37,404 ounces of US$2.2 million at the project during Significant results from the re-assayed pleted trenching and 10 drill holes pri- gold in the 4th quarter, up from the 2013, of which US$1.6 million were for holes include RC29, which intersected marily in the North zone soil anomaly, 28,717 ounces of gold in the fourth quar- capital expenditures and $600,000 for 106.9 meters grading of 1.04 percent where drill holes returned an average ter of 2012. This 29 percent increase in exploration expenses. Capital expendi- copper, hole RC30 which intersected grade of 0.514 g/t gold over 99.4 meters. production was due in large part to a 30 tures included improvements in the 1-2 64.0 meters grading 1.16 percent copper, Gold mineralization in the North zone percent increase in head grades. For the ton-per-day bulk sample mill, camp and hole RC34 which intercepted 68 meters drill holes is associated with arsenopyrite year, the mine produced 114,821 ounces access. The company hopes to collar an grading 1.03 percent copper, hole and native gold related to quartz veinlet of gold, up significantly from 2012’s adit below the Ben vein in 2014 and RC35W which intersected 25.6 meters stock-work, in a multi-phase silicified, total production of 82,125 ounces of process a 2,000-ton bulk sample. In grading 1.176 percent copper, hole RC50 fractured and sericite altered Cretaceous gold. Fourth-quarter cash operating costs addition, WestMountain plans to com- which intersected 48.2 meters grading plutonic complex. The company believes are expected to be US$746 per ounce, plete mill and access/infrastructure 1.26 percent copper, hole RC54 which that nearby placer gold deposits, gold-in- about 24 percent lower than the compa- upgrades, complete an airborne aero- intersected 77.0 meters grading 3.24 per- soil anomalies, elevated gold-in-rock ny’s third-quarter 2013 results. Full-year magnetic survey over the project and cent copper, and hole RC87 which inter- samples, and wide drill intersections in 2013 cash operating costs are expected continue exploration of the Ben vein and sected 58.0 meters grading 1.16 percent intrusive indicate that the property war- to be US$949 per ounce. The mine other known veins on the project. copper. The re-sampling and re-assaying rants a systematic exploration program processed 149,246 tons of ore in the 4th program is expected to contribute to an of rock and soil sampling followed by quarter at an average grade of 0.26 Northern Alaska increase in the mineral resource estimate trenching and drilling to confirm historic ounces per ton. Average recovery was an at the Ruby Creek zone. Results from results, expand on those results, and NOVACOPPER INC. announced addi- impressive 96 percent. For the full year this re-logging and re-sampling program identify new exploration targets. The tional data from re-assaying of historic 2013, the mine processed 553,717 tons will be incorporated into a new industry- 2013 program confirms the location of drill holes at its Bornite project in the of ore grading 0.21 ounces per ton with compliant resource estimate, which the the historic prospects and a systematic Ambler District. These historical drill an average recovery of 96.6 percent. The company expects will be completed dur- 2014 program is currently in the plan- holes within the Ruby Creek zone were mine is expected to produce 105,000 to ing the first half of 2014. ning stage. previously drilled but only selectively 112,000 ounces of gold in 2014. l sampled by Kennecott. The resampling Alaska Range USIBELLI COAL MINE INC. recently announced an energy and economic impact summary of its Healy coal min- ing operations. The company’s 2 million ton per year operation is split about evenly between domestic consumers and foreign consumers. The coal used in Interior Alaska power plants provides one-third of the region’s power needs at 630 Reasons For Our Success the lowest cost per Btu of any of the On December 18, 2013, Fort Knox poured available fuel sources utilized, including its six-millionth ounce of gold. Seems like diesel, naphtha and natural gas. In 2012 yesterday we were celebrating our first alone, the company spent US$72 million gold pour with a handful of employees. in Alaska with 400 different suppliers, Today, Fort Knox employs service providers and organizations. A x Go more than 630 locals and Kno ld M rt in total of 577 Interior Alaska jobs and Fo e we’re more committed

US$44 million in annual payroll are con- than ever to Alaska’s future

6 and to the local Fairbanks nected with coal mining, distribution and - 3 M 1 i 0 ll 2 community. consumption. Statewide, the company First gold pour at Fort Knox i d 1996 on e th ur contributes US$52 million to 692 work- Ounce Po Fort Knox is proud of this ers. The UNIVERSITY OF ALASKA milestone, but we know recently completed a study that showed 1999 One-millionth ounce we wouldn’t be where we are today that coal was the most cost-effective without the support of dedicated option for its planned powerhouse employees and suppliers. replacement project. The difference 2002 Two-millionth ounce between coal, natural gas and diesel was Thanks for helping make the arresting: natural gas was 4-5 times more six-millionth-ounce pour possible. expensive while diesel was 6-7 times 2005 Three-millionth ounce more expensive, a cost savings of US$17 million to $25 million per year for the university. And for those of you who are 2008 Four-millionth ounce kinross.com members of GOLDEN VALLEY ELECTRIC ASSOCIATION, as I am, you will the following cost numbers telling: 2011 Five-millionth ounce GVEA’s cost per kilowatt hour when using coal is 5 cents, while other possi- ble sources come in at 5 cents for hydro- 2013 Fort Knox pours its electric, 9 cents for wind, 11 cents for six-millionth ounce of gold natural gas, 17 cents for naphtha and 30 cents for diesel. WESTMOUNTAIN GOLD INC. pro- vided an update on its high-grade Ben Vein at its flagship Terra project in west- 10 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 26, 2014

l YUKON TERRITORY Merger deal brightens juniors’ horizons Backed by Americas Bullion Royalty, Redtail Metals joins Northern Tiger Resources to protect interests, explore Yukon projects

By ROSE RAGSDALE the three companies took the following For Mining News actions: Americas Bullion agreed to sell Brewery

triving to mix up a batch of lemonade SHANE LASLEY Creek and other Yukon assets to Northern Sfrom the unrelenting string of lemons Tiger Corp., which is merging with Redtail dished out recently by the chronically Metals, while also making a US$2.25 mil- depressed capital markets, three junior min- lion investment in the company. Further, the ing companies with promising assets in company sold its Springer Mine and Mill Yukon Territory are joining forces to protect and other Nevada assets to Silver Predator those interests and pave the way for contin- Corp., while also making an investment in ued exploration. that company. Redtail Metals Corp. and Northern Tiger “We will be slated to receive in excess of Resources Inc. are merging their interests US$10 million in installment payments for and acquire the Yukon assets of Americas these assets over a three-year period, as well Bullion Royalty Corp. (formerly Golden as retaining 43 royalty interests,” Sheriff Predator Corp.) in a multifaceted transaction said. that will produce a newly created and capi- Both companies will have key advanced talized entity to be led by Northern Tiger projects with compelling resources and rea- President Greg Hayes. sonable capital requirements. Hayes will be advised by a board of Sheriff said the moves significantly directors comprised of two members each reduce the expenditures, cash requirements, nominated by Redtail and Northern Tiger overhead and administrative costs of and two members nominated by the new Americas Bullion, while maintaining con- company. trolling interests of Silver Predator Corp. Having shed its extensive portfolio of and the new Golden Predator Mining Corp. advanced and grassroots exploration proj- Americas Bullion, meanwhile, agreed to ects in the Yukon and its Nevada mineral acquire Resource Holdings Ltd., a Bermuda assets, Americas Bullion, meanwhile, is corporation, for US$1.3 million. Resource undertaking an extensive corporate reorgan- Holdings owns all of the issued and out- ization on a different path altogether, while standing shares of Resource Re Ltd., a retaining a substantial interest in the new Bermuda corporation, which holds a Yukon explorer. Bermuda Class 3A insurance license and William Sheriff, president and CEO of cash of US$1 million. Americas Bullion and interim CEO of Americas Bullion also agreed to acquire Redtail Metals, outlined the companies’ the securities portfolio of Kudu Partners LP strategy recently in a letter to Americas (Kudu), a private hedge fund founded and Bullion shareholders. managed by William (Bill) A. Lupien. “It is our belief that the markets may have Kudu’s securities portfolio is valued at about bottomed, but we have no expectation for a US$21 million. broad or swift recovery. When the recovery “I will remain as chairman and chief comes it will not come to the entire sector, Northern Tiger Resources Corp. hopes to merge with Redtail Metals Corp., another junior executive officer with negotiations under- but only to those with significant cash flow with assets in Yukon Territory and pick up an extensive Yukon project portfolio, along with way to see Bill Lupien direct the manage- much-needed capital, from Americas Bullion Royalty Corp. as well as change its name to ment of the company’s securities portfolio. opportunities, either producing or near-term Golden Predator Mining Corp. Here, drillers perched on a steep slope work at the 3Ace producers, with reasonable cost structure Project in southeastern Yukon. For those unfamiliar with Bill Lupien, he is and sound management. Simply put, even known as an innovator and a successful when the recovery comes, funds for invest- On the other hand, the mining industry must mining sector and instead, delving into the investor and fund manager. The acquisition ment in our sector will be selective and risk- continue, as there will be an ever-increasing re-insurance, royalty and equity holdings of the Kudu portfolio and active involvement averse at best,” Sheriff told the company’s demand for metals,” he continued. businesses. Redtail and Northern Tiger will of Bill Lupien will greatly enhance our posi- shareholders in the Jan. 9 letter. As a result, Americas Bullion, Redtail merge with Northern Tiger the surviving tion for future growth,” Sheriff said. “In our opinion, the traditional model of and Northern Tiger set in motion a series of entity, but under a new name, Golden Americas Bullion will complete a 1:100 the past 30+ years for financing in the junior transactions beginning in late October that Predator Mining Corp. stock consolidation as the company reorgan- mining sector is broken, perhaps irreparably. will result in Americas Bullion leaving the Basically, to get from point A to point B, izes under Resource Holdings Ltd. “This will create a tight share structure and a share price that should provide us with the opportunity to obtain a U.S. listing and have broader market appeal. A name change is also being contemplated,” Sheriff added. After these transactions are completed, Americas Bullion will hold roughly US$33+ million in cash, marketable securities and illiquid securities, plus more than 50 percent equity interest in Silver Predator Corp. and Golden Predator Mining Corp.; 100 percent ownership of Resource Re Ltd.; 55 royalty interests including deeded and option-relat- ed royalties; the Carlin Vanadium Project in Elko County, Nevada; about 12 percent of Wolfpack Gold; and about 157 ounces of gold bullion. Golden Predator Mining Corp. will have more than US$2 million in cash, along with the Brewery Creek, 3Ace, Grew Creek, Marg and Clear Lake projects as well as other significant Yukon properties. The proposed transactions are subject to a number of conditions, including approval of the Toronto Stock Exchange. Promising Yukon property portfolio For the combined Yukon assets, the future appears brighter with the prospect of a new, better capitalized junior mining company see MERGER DEAL page 11 PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 NORTH OF 60 MINING 11 continued from page 10 by 300-meter area of anomalous copper-in- (17 miles), with power lines traversing the project among Americas Bullion’s Yukon soils that remains open to the west and to the project area. assets. MERGER DEAL south. Americas Bullion holds an option to earn “Of the extensive Yukon claim package Redtail Metals, meanwhile, has focused a 100 percent interest in the Grew Creek that Golden Predator accumulated over the ready to resume exploration in the wake of on advancing quality precious metal project, subject to a 4 percent net smelter past few years, the focus in 2013 was on the the two very lean years experienced by its enriched copper, lead and zinc mineral returns royalty in favor of the optionor. past-producing Brewery Creek gold mine predecessors. deposits in Yukon. The company currently Americas Bullion has satisfied the mini- (Yukon MINFILE 116B 160). The 2013 Though cash-strapped, Northern Tiger controls the Marg and Clear Lake massive mum C$3 million exploration expenditure resource estimate for the property (based on has its own strong portfolio of projects. sulfide deposits, both with resources pre- requirement under the terms of the option 2012 drilling) doubled the contained ounces At the company’s flagship 3Ace Project pared in accordance with NI 43-101. agreement and will acquire a 100 percent of gold in the oxide ore and added approxi- in southeast Yukon, drilling has intersected The Marg Deposit consists of 402 quartz interest upon making a final cash payment mately 30 percent to the sulphide ore (Table 4.6 grams per metric ton gold over 35.0 claims covering about 83 square kilometers of C$100,000. 2), revision of the mine plan also includes meters (including 106.2 g/t gold over 1.0 (32.4 square miles) located about 40 kilome- “These transactions will consolidate a crushing of ore which has increased gold meters). ters (25 miles) east of Keno City. number of strong Yukon properties into one recoveries by 30 percent (May 5, 2013 News Northern Tiger optioned the 3Ace The Marg Deposit covers the polymetal- company, including two promising high- Release),” Sack wrote in the annual Property in April 2010 from Alex McMillan, lic Marg volcanic-hosted massive sulphide grade gold projects in the southeast Yukon – overview. a longstanding Yukon prospector who dis- deposit with an indicated resource of 3.96 3Ace and Grew Creek,” said Hayes, who “The original Brewery Creek mine didn’t covered a quartz vein on the property con- million metric tons of 1.57 percent copper, will serve as president and CEO of Golden crush leach pad material because of the high taining abundant quantities of free gold. 1.92 percent lead, 3.90 percent zinc, 49.40 Predator Mining. “Given the challenging cost of an onsite generator; however since The 3Ace Project hosts extensive gold-in- g/t silver, and 0.79 g/t gold, and an inferred markets for junior explorers, we are also the mine closed in 2001, the Mayo-Dawson soil anomalies over nine square kilometers resource of 7.78 million metric tons of 1.12 very pleased to emerge with a strong and transmission line has been completed, and and includes numerous high-grade gold percent copper, 1.36 percent lead, 2.89 per- supportive major shareholder in Americas grid power is now within 15 kilometers of showings. The majority of drilling on the cent zinc, 34.88 g/t silver, and 0.52 g/t gold. Bullion.” the mine site. Work also continues on a pre- project has focused on the Main Zone where The deposit is open to expansion down The deal also includes a $2.25 million liminary feasibility study, amending the results have included up to 4.6 g/t gold over plunge to the east, down dip to the south, and investment by Americas Bullion in the Quartz Mining and Water licenses, and 35.0 meters, including 106.2 g/t gold over along strike to the west. The property also merged company. preparing for submission to the YESAB 1.0 meter in 2011. Gold mineralization at the has untested exploration targets with signifi- Sheriff said Redtail Metals was looking Executive Committee,” he added. Main Zone has a drilled strike length of 220 cant geochemical signatures in favorable forward to combining the strengths of the Hayes said, “We are excited to add meters and is related to a steeply dipping stratigraphy two companies into a revitalized entity that Brewery Creek, a previously operating gold shear zone which hosts an en echelon array The Clear Lake Property consists of 121 is focused on two of the higher grade gold mine with significant oxide resources, to our of vein segments linked by stockwork veins quartz claims covering about 25 square kilo- projects in the southeast Yukon, while also portfolio of promising properties, including and breccias. meters (9.65 square miles). It is located continuing to hold our deposits at Marg and 3Ace and Grew Creek. The financing pro- In 2013, Northern Tiger conducted a about 75 kilometers east-southeast of Pelly Clear Lake. “Under our Kaska Cooperation vided by (Americas Bullion) means we are phase one program consisting of trenching, Crossing, and about 95 kilometers northeast Agreement, we will work to create benefit well-funded to continue advancing our proj- soil and rock sampling, mapping and of Carmacks. for our collective shareholders and Yukoners ects, while seeking a joint venture partner for prospecting focused on developing specific In 2009, SRK Consultants completed an alike,” he pledged. Brewery Creek as we continue to move it drill targets on some of the property’s exten- NI 43-101-compliant resource estimate for The Grew Creek purchase closed in through the mine permitting process.” sive soil anomalies that have seen little or no the Clear Lake Property outlining an inferred December as the companies reported plans Upon completion of the merger and relat- drill testing to-date. A limited diamond resource of 7.65 million metric tons of 7.6 to expand the merger to include acquisition ed transactions, it is anticipated that the drilling program planned for later in the sea- percent zinc, 1.1 percent lead and 22.0 g/t sil- of all of the Yukon assets held by Americas newly created Golden Predator Mining will son was postponed due to lack of capital. ver, using a 4 percent (lead + zinc) cut-off Bullion, including the Brewery Creek hold up to 54 percent of the outstanding “Northern Tiger Resources’ (www.north- Project and Americas Bullion’s accumulated shares of Northern Tiger and will be a “con- ern-tiger.com) continued work on its 3Ace Grew Creek Project acquisition tax losses, for a purchase price equal to trol person” of Northern Tiger (as such term property (Yukon MINFILE number pend- In conjunction with the merger, Redtail US$5.25 million and the grant by Northern is defined in the policies of the TSXV) at ing) and the adjoining Sprogge property Metals and Northern Tiger agreed in late Tiger to Americas Bullion a royalty interest closing. It is intended that, immediately fol- (Sugar Bowl; Yukon MINFILE 105H 103). October, to purchase from Americas Bullion in each of its properties held at closing. lowing closing, the new company will dis- The company spent (a modest sum) on all of that company’s interest in the Grew Northern Tiger will satisfy the purchase tribute to its shareholders sufficient grassroots exploration, including excavator Creek gold project and related drill and core price in part by the issue to the new compa- Northern Tiger shares to reduce its post- and hand trenching, soil and rock sampling data for an aggregate purchase price of ny, at closing, of such number of Northern merger share position in Northern Tiger to and prospecting. It also collected three C$900,000, and complete a financing to Tiger shares having an aggregate value of 49 percent of the outstanding Northern Tiger 1,000-kilogram bulk samples from the raise a minimum of C$324,000 and a maxi- US$550,000 and a convertible promissory shares. Accordingly, it is anticipated that Sleeping Giant zone,” wrote Yukon mum of $450,000. note in the principal amount of $4.7 million upon completion of this distribution by Geological Survey geologist Patrick Sack in The Grew Creek Project is located in bearing interest at 6 percent per annum and Golden Predator Mining, current Northern the Yukon government’s 2013 exploration Yukon Territory 32 kilometers (20 miles) payable over a period of three years. The bal- Tiger shareholders will hold as a group 30 overview to be released Jan. 26. southwest of Faro and 24 kilometers 15 ance of the purchase price will be satisfied percent of the merged company and current In 2012, several blast trenches were com- miles) northwest of Ross River. The proper- by the grant to Golden Predator Mining of a Redtail Metals shareholders will hold as a pleted on the Sleeping Giant Zone outcrops ty’s 135-square-kilometer (52 square miles) royalty interest in each of its properties held group, 17 percent of the merged company. where 2012 drill results did not replicate area encompasses 666 quartz claims, at the closing of the Americas Bullion acqui- The transactions are subject to a number of high-grade results obtained by surface chan- extending along both sides of the Robert sition. other conditions, including the approvals of nel sampling (including 132.9 g/t gold over Campbell Highway for about 27 kilometers Brewery Creek is the most advanced the TSX. l 6.9 meters). The coarse gold and highly vari- able assay results suggest a strong nugget effect which makes it challenging to deter- mine average grades using the relatively small sample sizes obtained through channel and drill sampling. The blast trenches aimed to allow the company to process some larger sample sizes to obtain more representative average grades and to gain a better under- standing of possible structural controls that may be controlling the gold grades. The Sonora Gulch copper-gold-silver porphyry project in central Yukon also has returned significant drill results, including 0.45 g/t gold and 3.0 g/t silver over 234.0 meters. In 2013, Northern Tiger carried out a program of trenching, soil and rock sam- pling, mapping and prospecting, and again postponed plans for drilling due to a shortage of funds. The junior, meanwhile, conducted small grassroots exploration programs on two additional projects, Korat and DEL. Korat, which consists of 40 Yukon Quartz Mining Claims (2,066 acres) that is completely sur- rounded by Comstock Metals Ltd.’s QV property hosts an 800-meter-long gold-in- soil anomaly within a larger 1,600-meter pathfinder anomaly, and DEL, located 30 kilometers (19 miles) southeast of Capstone Mining Corp.’s operating Minto Mine, has returned soil samples outlining a 400-meter 12 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 26, 2014

l ALASKA Another major ponders Pebble options Following Anglo American’s exit, Rio Tinto execs consider what to do with a 20 percent stake in massive Alaska copper-gold project

By SHANE LASLEY with sufficient financial resources and So, aside from a buyout bid, the “Our market cap isn’t lost on Mining News technical capabilities, working experi- potential outcomes of Rio Tinto’s ence in the United States and a shared people. Somebody can make a bid s Rio Tinto about to take out Northern strategic review are to hold it’s commitment to environmentally sound for us; they can make that bid IDynasty Minerals Ltd. and gain 100 nearly 20 percent stake in and socially responsible development,” hostile, they can make it friendly.” percent of the enormous Pebble copper- Northern Dynasty or sell all or a Thiessen said upon the Dec. 13 comple- —Ron Thiessen, president and CEO, Northern gold-molybdenum project in Southwest portion of its interest in the Pebble tion of the Anglo withdrawal. “We have Dynasty Minerals Ltd. little doubt that Pebble will attract major Alaska? That is among the options man- project. agement and directors will have to con- mining company interest in the months not be “self-serving on their part.” sider as they carry out a strategic review ahead." of the company’s share holdings in the “They haven’t made up their mind – Rio Tinto, a company with a foothold “It certainly does not create an oppor- Vancouver, B.C.-based junior. divestiture was an option but when I tried in Northern Dynasty and the means to tunity for them to get value back from Rio Tinto, through a wholly-owned to push for clarity; ‘are you a seller?’ they develop a mine on the scale of Pebble, their investment should they decide to subsidiary, owns 18.15 million common fell back on a very legalistic sentence was considered by many to be a top con- divest of us,” he added. shares of Northern Dynasty, representing about undertaking a strategic review tender to fill the void left by Anglo This leads some to speculate that Rio roughly 19.1 percent of the 95 million which might include a divestiture,” the American. Tinto may be considering that buying out shares issued by the Pebble owner. Northern Dynasty CEO informed Northern Dynasty, with a market capital- “We have a shareholders rights plan in investors on Dec. 23. Complete surprise ization currently hovering around C$145 million, as the most economical way to place and Rio is right on the cusp, so they Rio Tinto’s announcement of the Thiessen said he was caught “by com- gain full ownership of the Pebble Project. can’t really buy any more stock at any strategic review came just 10 days after plete surprise” when Rio Tinto executives “Our market cap isn’t lost on people,” price without having to make a full the finalization of Anglo American’s informed him on Dec. 20 that they intend- Thiessen responded to one such query. takeover bid,” Northern Dynasty withdrawal from the Pebble Partnership – ed to inform the public of the strategic “Somebody can make a bid for us; they President and CEO Ron Thiessen a move that returned 100 percent owner- review. can make that bid hostile, they can make explained during a Dec. 23 conference ship of Pebble to Northern Dynasty and, The Northern Dynasty leader it friendly.” call to field questions about Rio Tinto’s by proxy, doubled Rio Tinto’s stake in the described the potential divestment in So Rio Tinto directors and manage- announcement. world class copper project. Northern Dynasty as “out of character ment will have the option of selling off So, aside from a buyout bid, the poten- With Anglo American’s exit complete, with everything they had communicated their stake in Northern Dynasty and the tial outcomes of Rio Tinto’s strategic Northern Dynasty is concentrating on prior to that point and time.” Pebble project for US$25 million; attempt review are to hold it’s nearly 20 percent compiling the technical data, engineering Though Thiessen understands why Rio to buy the balance of Northern Dynasty stake in Northern Dynasty or sell all or a work and permitting documentation from Tinto might want to conduct a strategic shares valued at US$120 million; or ride portion of its interest in the Pebble proj- more than US$700 million invested in review of its interest in Northern Dynasty, out its investment and see if it pays a larg- ect. Pebble into a data room, with the goal of he is baffled as to why a global miner er dividend as the Pebble project Rio Tinto has been unwilling to show securing a new partner to finish what with a market cap of roughly US$100 bil- advances into permitting. its hand, only disclosing “it intends to Anglo American started. lion would put out a press release Rio Tinto executives informed undertake a strategic review, including a "Our primary focus is to select the announcing the strategic review of a Thiessen that they do not have any pre- possible divestment, of its shareholding right partner for Northern Dynasty and US$25-million investment. conceived notions about which way the in Northern Dynasty.” the right investor for Alaska, a company “That would obviously be an immate- strategic review will go. rial amount to Rio, so I was at a loss to “I’m challenged a bit with that because understand why they were announcing it they have been paying very close atten- publically,” he observed. tion to Northern Dynasty and Pebble “The only reasoning they gave to me is since the Anglo announcement,” the that they were of the view that they need- Northern Dynasty leader said. ed to make this announcement so that As to how long the remaining 81 per- there wouldn’t be speculation about their cent of Northern Dynasty shareholders review should there be leakage,” the will have to wait to see what Rio Tinto Northern Dynasty CEO informed does with its interest in the company, investors. Thiessen could only answer, “They did Thiessen observed that proclaiming its not give us any indication and they were intent to sell its stake in Northern disinclined to tell us.” l Dynasty prior to making the sale would

• Due Diligence Mineral Title Examination • Land Status Research • Digital Land Status Maps • 25 Years Experience David S. Manzer, Landman Tel: (907) 563-8882 Fax: (907) 563-8883 [email protected] 5381 Tudor Top Circle Anchorage, AK 99507-1631 PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 NORTH OF 60 MINING 13

l ALASKA Accomplished Alaskan leads Tower Hill Former DNR commissioner and mining engineer responsible for Fort Knox, new ITH CEO Tom Irwin readies 20M-oz Livengood gold project

By SHANE LASLEY Mining News

nternational Tower Hill Mines Ltd. rang SHANE LASLEY Iin 2014 with a new chief executive leading a streamlined Alaska-centric com- pany focused on optimizing and safe- guarding Livengood until a partner steps up to continue the advancement of the 20- million-ounce gold deposit. Tom Irwin, who ascended to the role of president and CEO of International Tower Hill Mines on Jan. 1, will lead the compa- ny’s efforts to develop a mine at the world- class Livengood gold project that would contribute to a brighter future in the Golden Heart of the state he has called home for more than two decades. A 20-million-ounce low-grade gold deposit located alongside the paved Elliot Highway some 70 miles (110 kilometers) north of Fairbanks, Outlining his the Livengood project could be an alluring asset for a company seeking to replenish its gold reserves. goals of developing an economically folks from DNR; and frankly from the as a substantially bigger deposit than the require less upfront capital to develop the robust and environ- other agencies within Alaska.” operation about 45 miles to the southeast. mine as well as ways to reduce the operat- mentally sound mine As DNR commissioner, Irwin oversaw At a US$1,500/oz. gold price, roughly ing costs. Enhancing mill head grades in at Livengood, Irwin the state’s interest in the permitting of half of this gold reports to the reserves. early years by a more aggressive stockpile summarized, “Our TOM IRWIN resource development projects in Alaska The Livengood deposit currently has management strategy than is assumed in grandkids deserve an and played a key role in setting up its large proven reserves of 434 million metric tons the feasibility study is a key amongst these Alaska as good as or better than we mine permitting team. After a six-year averaging 0.69 g/t (9.6 million ounces) opportunities. received it.” tenure that demonstrated his commitment gold and probable reserves of 20 million A similar strategy was successfully Irwin is a mining engineer who has to responsible resource development in metric tons averaging 0.70 g/t (454,000 implemented at Fort Knox, where the spent more than 35 years permitting, oper- Alaska and standing up for what is right, oz.) gold. lower grade ore was downgraded to waste ating and optimizing major mining proj- Irwin retired – or so he thought. Utilizing these reserves, a feasibility and stockpiled for future use. In recent ects, including Amax Gold Inc.’s Climax Fellow Alaska mining engineer, Karl study completed in July anticipates a years, this “waste” material is being mine in Colorado and Sleeper mine in Hanneman though, lured Irwin out of 100,000-ton-per-day mill churning out 8.1 processed at the operation’s heap-leach Nevada. retirement with the prospect of being million oz. of gold over an initial 14-year facility. Roughly 35 percent of the record It was the Fort Knox Mine, though, that involved with the development of another mine life. This comes to 577,600 ounces 428,822 oz. of gold produced at Fort Knox brought Irwin to Alaska and more than a world-class gold mine in Alaska’s Interior. annually; and anticipates an average annu- in 2013 came from the heap-leach side of decade at that Interior Alaska operation “I would love to be involved with start- al output of 698,500 oz. of gold over the the operation. that makes him uniquely suited for leading ing another mine, but I want to be involved first five years of operation. “We need to confirm to ourselves and the development of a mine at Livengood. with a group that has integrity; I want to be The initial capital expenditures to build our partner that we have exactly the correct "I am very pleased to take on the role of involved with a group that absolutely is not a mine of this scale at Livengood are esti- circuit, chief executive officer of ITH as our team going to cut corners,” Irwin said. mated to be US$2.8 billion. An additional The company has identified several continues to advance the Livengood gold And with a team of accomplished fel- US$667 million of sustaining capital other opportunities to improve the per- project,” said Irwin. “With the benefit of low Alaskans that includes Hanneman as would be needed over the life of the oper- formance of the project; including verifi- my long history in Alaska, I am confident general manger; Chris Puchner as chief ation. cation of information that suggests the the region remains one of the best mining geologist; Denise Herzog as manager of The all-in costs to mine an ounce of actual resource grade may be 10-15 per- jurisdictions in the world, and I believe in environmental affairs; Debbie Evans as gold at Livengood with the operation cent higher than the drill-hole assays indi- Livengood as a world-class multimillion- controller; and Rick Solie as manager of described in the feasibility study are esti- cate. ounce gold project.” community and government relations, mated to be US$1,474. This includes “We have some higher resource grade Irwin believes International Tower Hill and US$987/oz. of operating, royalty and based on our metallurgical studies,” Irwin Rewarding experience the Livengood project provides that oppor- smelting costs; US$416/oz. to payback explained. “We are always looking at ways Irwin got his first taste of Alaska in tunity. capital expenditures; US$43/oz. for recla- to improve the recovery, and we have some 1992, when Amax asked him to serve as mation; and US$27/oz. for taxes. credible ideas that we couldn’t test at the vice president of its subsidiary, Fairbanks Optimizing Livengood Applying his foundation as a mining lab-scale but we can test in a bit bigger Gold Mining Inc., responsible for engi- A large, low-grade gold deposit located engineer, one of Irwin’s top priorities is to bench-scale.” neering at Fort Knox during project design alongside a paved highway about 70 miles optimize the operation outlined in the fea- and permitting. (110 kilometers) north of Fairbanks, the sibility study. To-do list Once developed, Irwin continued as Livengood project poses many of the chal- The Livengood development team Securing a partner to advance Fort Knox operations and general manag- lenges and opportunities Irwin faced at believes that mill throughput and produc- Livengood into permitting is another of the er, overseeing the start-up and operation of Fort Knox. tion schedule optimization studies may items at the top of Irwin’s to-do list. the gold mine that he helped design. Irwin This time around, though, the provide opportunities to reduce project “We know the gold market has been continued at Interior Alaska operation International Tower Hill CEO has couple capital costs. tough for a lot of the gold companies, and through Amax’s merger with Kinross Gold of advantages: he has already proven such “We have identified several opportuni- yes, they are taking some real write-downs Corp., serving as manager and vice presi- a gold mine can be successful in Alaska’s ties that we can work on to improve the and some hits, but they also need to replen- dent, business development at the mine Interior; and with resources totaling 20 economics of the project,” Irwin said. until 2003. million ounces, Livengood is starting off These include scenarios which would see TOWER HILL TEAM page 19 “It is a really rewarding experience to develop a really good, producing, environ- mentally sound project,” Irwin reflected during a Jan. 20 interview with Mining News. Faced with the prospect of leaving Alaska, Irwin had to respectfully refuse THE HIGHEST STANDARD IN Kinross’ offer of an executive position in ANCHORAGE Nevada. Instead, he accepted an opportuni- ENGINEERS • PLANNERS • SCIENTISTS • CONSTRUCTORS 700 G Street, ty to serve as commissioner of the Alaska ENGINEERING Suite 500 URS is one of the world’s leading engineering fi rms. Our professional staff Tel: 907.562.3366 Department of Natural Resources. “It takes a lot of knowledgeable people EXCELLENCE work together to develop innovative and cost-eff ective solutions to the FAIRBANKS challenges facing government and industry. 3504 Industrial Avenue, to manage what DNR does,” the former Suite 125 commissioner reflected. “I feel that I con- Tel: 907.374.0303 tributed from my background, but I learned a tremendous amount from the Companies involved in Alaska and DIRECTORY northwestern Canada’s mining industry

The Red Dog mine in northwest Alaska.

Mining Companies PO Box 1000 Alaska Analytical Laboratory Healy, AK 99743 1956 Richardson Highway Phone: (907) 683-2226 North Pole, AK 99705 Kinross Fort Knox/Fairbanks Gold Mining Inc. Usibelli Coal Mine is headquartered in Healy, Alaska Phone: (907) 488-1266 • Fax: (907) 488-077 Fairbanks, AK 99707 and has 700 million tons of coal reserves. UCM pro- E-mail: [email protected] Contact: Anna Atchison, Manager, duces an average of 2 million tons of sub-bituminous Environmental analytical soil testing for GRO, DRO, Community and Government Relations coal each year. RRO, and UTEX. Field screening and phase 1 and 2 Phone: (907) 490-2218 Fax: (907) 490-2290 site assessments also available. E-mail: [email protected] Service, Supply & Equipment Website: www.kinross.com Alaska Steel Co. Located 25 miles northeast of Fairbanks, Fort Knox is Alaska Air Cargo • Horizon Air Cargo 6180 Electron Drive Alaska’s largest producing gold mine; during 2011, P.O. Box 68900 SEAFZ Anchorage, AK 99518 Fort Knox achieved 5 million ounces of gold pro- Seattle, WA 98168 Contact: Joe Pavlas, outside sales manager duced, a modern record in Alaska mining. Contact: Joe Sprague, Vice President of Cargo Phone: (907) 561-1188 Toll free: (800) 770-0969 (AK only) Usibelli Coal Mine Phone: (206) 392-2705 or 800-2ALASKA Fax: (907) 561-2935 Fairbanks, AK 99701 Fax: (206) 392-2641 E-mail: [email protected] Contact: Bill Brophy, VP Customer Relations E-mail: [email protected] Full-line steel and aluminum distributor. Complete Phone: (907) 452-2625 • Fax: (907) 451-6543 Website: www.alaskacargo.com processing capabilities, statewide service. Specializing Email: [email protected] Award winning cargo services to more places, more in low temperature steel and wear plate. Website: www.usibelli.com often, with more lift to, from, and within the state of Other Office Alaska. PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 NORTH OF 60 MINING 15

Austin Powder Company Email: [email protected] • Website: www.nac.aero P.O. Box 8236 Serving the aviation needs of rural Alaska for almost 50 Ketchikan, AK 99901 Advertiser Index years, NAC is the states largest all cargo carrier moving Contact: Tony Barajas, Alaska manager Alaska Airlines Cargo nearly 100 million pounds of cargo on scheduled flights Phone: (907) 225-8236 • Fax: (907) 225-8237 to 17 of Alaska’s busiest airports. NAC’s fleet of DC-6, Alaska Analytical Laboratory E-mail: [email protected] B-727, and ATR-42 aircraft are available for charters to Alaska Dreams Web site: www.austinpowder.com remote sites and flag stops to 44 additional communi- In business since 1833, Austin Powder provides Alaska Steel Co...... 16 ties. statewide prepackaged and onsite manufactured Austin Powder Co...... 7 explosives and drilling supplies with a commitment to Calista Corp...... 8 Pacific Rim Geological Consulting safety and unmatched customer service. 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Construction Machinery Industrial, LLC Jackovich Industrial & Construction Supply 5400 Homer Drive Judy Patrick Photography ...... 6 Pebble Partnership Anchorage, AK 99518 Keller Williams Commercial 3201 C St., Suite 604 Contact: Robert Fairbanks, Sales Manager Anchorage, AK 99503 Last Frontier Air Ventures ...... 14 Phone: (907) 563-3822 Phone: 907-339-2600 Fax: (907) 563-1381 Lynden...... 2 www.pebblepartnership.com Email: [email protected] Nature Conservancy, The ...... 17 Website: www.cmiak.com Northern Air Cargo PND Engineers Inc. 1506 W. 36th Ave. Pacific Rim Geological Consulting ...... 4 Anchorage, AK 99503 GCI Industrial Telecom Pebble Partnership ...... 19 Phone: (907) 561-1011 Anchorage: PND Engineers Inc. Fax: (907) 563-4220 11260 Old Seward Highway Ste. 105 Salt+Light Creative Website: www.pndengineers.com Anchorage, AK 99515 Sourdough Express Inc. 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Cushman GCI Industrial Telecom provides innovative solutions Web site: www.stusell.com; Fairbanks, AK 99701 to the most complex communication issues facing www.AKMiningClaims.com Mike Tolbert - president industrial clientele. We deliver competitive services, Mining Claims to buy, sell, or lease, call the Alaska Phone: 907-452-6631 • Fax: 907-451-8632 reputable expertise and safely operate under the professionals. We provide real estate brokerage serv- Other offices: most severe working conditions for the oil, gas and ice to the mining industry, with over 35 years of com- Airport Business Park natural resource industries. GCI-your best choice for mercial experience. Call for a list of our featured full life cycle, expert, proven, industrial communica- properties. 2000 W. International Airport Rd, #D-2 tions. Anchorage, AK 99502 Last Frontier Air Ventures Phone: 907-245-3123 HDR Alaska Inc. 39901 N. Glenn Hwy. 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l BRITISH COLUMBIA Another banner year for B.C. mining? Officials expect 2014 to deliver new northern mines at Red Chris and Roman; tout 2013 start-ups at New Afton and Mount Milligan

By ROSE RAGSDALE For Mining News

ike 2013, this year is expected to be L another banner year for mining in British Columbia. An increasingly important industry in Canada’s westernmost province, mining takes up a very small portion of British Columbia’s vast 944,735 square kilome-

ters (364,764 square miles) land mass — INC. COMPANY THOMPSON CREEK METALS less than one percent — but the industry makes a tremendous impact on the province’s economy. Today, British Columbia has 19 operat- ing mines (nine coal and 10 metal). By comparison in 2001, the province had 15 operating mines (seven coal and eight metal). In 2012 (the most recent year for which figures are available), mining contributed more than C$8.3 billion in value to B.C.’s economy, and mining exploration spend- ing hit a record C$680 million, up 47 per- cent increase from the previous year. Exploration spending continued to be strong in 2013, and mining remains one of the province’s more important economic drivers. More than 30,000 people across the province, which is Canada’s third-largest with more than 4.4 million people, were employed in mining, mineral exploration and related sectors in 2012. This shows An aerial view of the Mount Milligan copper-gold-silver mine located north of Prince George, B.C., a C$1.5 billion project that began pro- duction in August. Owned and operated by Littleton, Colo.-based Thompson Creek Metals Company Inc., the mine employs about 350 full- significant growth since 2001 when only time workers. 14,700 people held mining-related jobs in B.C. existing mines. matters will be resolved in due course. We B.C. mining also employs more First “B.C.’s mining industry has not New Afton is a new gold mine that pro- are pleased with the re-assignment of key Nations members than any other industry, only helped shape British vides 405 full-time jobs near Kamloops, individuals to the Mt. Milligan senior and the province has signed 10 economic Columbia over the last 150 years, and Mount Milligan is a C$1.5 billion cop- operations team, and we believe their oper- and community development agreements it is also an integral part of our per-gold mine located northwest of Prince ational expertise is having beneficial with First Nations. province’s strong and stable George. Some 350 full-time workers, results.” In 2013, the first checks were delivered mostly local residents, are employed at the From start-up through Dec. 31, Mt. economic future.” —Bill Bennett, to First Nations under terms of revenue- operation which began production in 2013. Milligan produced 10.9 million pounds of minister of Energy and Mines and Minister sharing agreements with the New Afton, Mount Milligan is owned by Idaho- copper, 21,100 troy ounces of gold and responsible for Core Review, Government of Copper Mountain and Highland Valley based Thompson Creek Metals Co. Inc., is 41,800 troy ounces of silver in concentrate. British Columbia mines. located 155 kilometers (94 miles) north- The company expects its second ship- In addition, mining contributes hun- west of Prince George and mid-way ment of copper and gold concentrate from dreds of millions of dollars in revenue that rently under construction in Northwest and between the communities of Fort St. James the new mine to occur in late January. help pay for government services like Northeast B.C., respectively. and Mackenzie. health care and education. Red Chris, a C$500-million copper and A phased start-up of the operation New opportunities “B.C.’s mining industry has not only gold project owned and operated by began Aug. 15, with production of copper Bennett met with various federal minis- helped shape British Columbia over the Imperial Metals Corp., is located just and gold concentrate beginning the follow- ters in Ottawa Jan. 13 to discuss Taseko last 150 years, it is also an integral part of south of Dease Lake. It will provide 750 ing month. The first load of saleable con- Mines Ltd.’s proposed New Prosperity our province’s strong and stable economic full-time jobs, according to B.C. officials. centrate left the mine for Thompson mine, a C$1-billion project, which would future. I look forward to 2014 and working Roman, where an Anglo American plc Creek’s load-out facility in Mackenzie on provide 500 full-time jobs in the Cariboo to ensure that British Columbia’s mining subsidiary began construction in August, Sept. 24, and the mine celebrated its com- region of north-central B.C. industry remains a cornerstone of our will be a $340-million coal mine located missioning in Oct. 8. The proposal requires the approval of province’s overall success,” said Bill near Tumbler Ridge, B.C. It is expected to The ramp-up at Mt. Milligan continues both the federal and provincial govern- Bennett, B.C.’s minister of Energy and provide 375 full-time jobs. to progress with mine pit grades as expect- ments to proceed and Bennett encouraged Mines and Minister responsible for Core Overall, the long-term outlook for min- ed, metal recoveries in the mill above the federal ministers to recognize the great Review ing in B.C. is very positive. Government expectations and mill throughput slightly economic and social benefits that the proj- officials note that since the start of the BC below expectations at this stage in the ect would create for the local communities New mines Jobs Plan, two new mines have opened, ramp-up, Thompson Creek reported Jan. as well as British Columbia’s proven track The B.C. government anticipates start- and five more mines are under construc- 13. record of mitigating environmental up of production in 2014 at two new tion or permitted in B.C. The province also The company said it is working through impacts. mines, Red Chris and Roman, both cur- has approved seven major expansions of what it believes to be typical ramp-up Five additional mining projects are issues. As part of this process, Thompson under construction or permitted, seven Creek has reassigned several senior man- major mine expansions have been Full Line Steel and Aluminum Distributor agers from its molybdenum operations to approved and a further 20 major mines and Specializing in wear plate Mt. Milligan. Management believes the expansions are moving through the mine will reach commercial production, province’s environmental assessment and defined as operating the mill at 60 percent permitting process. Both Gibraltar mine in of design capacity for 30 days, in the first the Cariboo region and Line Creek in the quarter of 2014. Kootenays received Mines Act permit Proudly featuring Thompson Creek CEO Jacques Perron amendments that resulted in nearly C$400 said, “We are very pleased with the quality million in investment and ensured jobs for Since 1982 of the concentrate, as well as the recover- 650 workers. ANCHORAGE FAIRBANKS ies of copper and gold at this stage of the B.C. officials also point out that mining (907) 561-1188 (907) 456-2719 ramp-up. Throughput is proving to be a bit in the Canadian province continues to be challenging, as we continue to experience KENAI one of B.C.’s safest heavy industries and issues in the grinding and flotation cir- (907) 283-3880 Visit us online at www.alaskasteel.com has a lower injury rate than most of the cuits. We believe these typical ramp-up other resource and industrial sectors. l PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 NORTH OF 60 MINING 17 l NORTHWEST TERRITORIES Mineral-rich territory seeks explorers Government, industry team up to spread message that NWT is open and ready for mining activity in hopes of attracting investors

By ROSE RAGSDALE during a recent northern tour. Though exploration and deposit brighter economic future for the Northwest For Mining News appraisal expenditures are up in the NWT, Territories, proponents say. Increasing investment Hoefer said it is due not to increasing The proposed Gahcho Kué diamond ith devolution around the corner At a time when mining appeared to be in grassroots exploration which is suffering as mine, for example, has probable reserves Wand a well-reasoned mineral devel- a slump in most jurisdictions worldwide, elsewhere, but to projects like Gahcho Kué totaling 31.3 million metric tons grading opment strategy in place, government and investment was up in the NWT in 2013, that are moving forward with some spend- 1.57 carats per metric ton for 49 million industry officials in Northwest Territories according to Natural Resources Canada, ing as their approval processes advance carats in the Tuzo, 5034 and Hearne kim- are making a concerted effort to alert the which estimates mining expenditures in the closer to completion. berlites. A 2010 feasibility study demon- world to the mineral resource and invest- NWT rose to C$158.6 million, reflecting “In essence, we are taking advantage of strated that an open-pit operation could ment opportunities to be found in Canada’s an increase of C$49.9 million (46 percent) the downturn in the marketplace to improve produce an average of 4.5 million carats Far North, especially in the jurisdiction that from 2012. the investment climate through the NWT per year over an 11-year period, while boasts the third-richest diamond resources “These are challenging times in the Mineral Development Strategy, devolution, employing nearly 700 workers during the in the world. global marketplace for the exploration and and regulatory improvement,” he peak of construction and roughly 400 mine In addition to three operating diamond mining industry, so we are pleased that explained. workers once operational. The project, joint mines and the sole tungsten producer in the there are still projects in both the NWT and venture between De Beers Canada (51 per- West, NWT currently has six well- Nunavut that are advancing through the Substantial mine development cent) and Mountain Province Diamonds advanced mine projects working their way approval and regulatory processes. We are As of September 2013, six companies Inc. (49 percent) was approved in fall 2013 through the permitting process. hopeful that the marketplace will improve had acquired the prerequisite permits or to proceed to permitting and licensing. Between the efforts of a pro-mining ter- in the coming year, and we will see explo- were in the process of doing so to bring Avalon Rare Metals Inc.’s Nechalacho ritorial government, led by Premier Robert ration increase,” said Chamber of Mines their mining projects into production in Rare Earth Elements project, located at McLeod, and an active and well-organized President Brooke Clements when the fig- NWT. As these projects advance to con- chamber of mines, the word is getting out ures were released Dec. 12. struction and operations, they add to a see OPEN FOR BUSINESS page 19 that mining in NWT can be a very smart move. The Northwest Territories has diverse geology. Geoscientists have identified eight dis- tinct and diverse geological provinces in the Northwest Territories - the Continental Shelf, Arctic Platform, Bear Province, Churchill Province, Cordilleran Orogen, Innuitian Orogen, Slave Province and the largest by landmass, Corporate Council the Interior Platform. The territory has produced more than C$60 billion in minerals since the early on the Environment 1930s across a range of commodities and minerals that includes gold, diamonds and zinc. Those three products alone account for more than 85 percent of the value pro- duced, according to the NWT & Nunavut Chamber of Mines, which is working to spread a strong pro-mineral development message throughout the mining industry. “There is much more to the mineraliza- tion story with other key products, includ- ing tungsten, uranium, copper, silver and even radium. When the new mines current- ly in the approvals phase enter production, that list also will include bismuth, cobalt and rare earth metals, which are minerals found in only a few places worldwide,” the chamber said. “The Canadian North is the next frontier in mining and mineral development and CARL JOHNSON/CARLJOHNSONPHOTO.COM CARL nowhere is this more evident than in the NWT. As the Government of the Northwest Territories (draws) closer to taking over The Nature Conservancy is proud to collaborate with a wide range of administrative control of our resources partners to ensure Alaska’s lands and waters continue to support abundant from the Government of Canada – a salmon and wildlife populations. We thank these corporations for sharing our change anticipated through devolution in April, we have never been more serious vision of a healthy and productive Alaska for many generations to come. about addressing our investment challenges and unlocking the mineral potential of our Lead Corporate Partners ($25,000 & above) . territory,” said NWT Industry, Tourism, Alaska Airlines & Horizon Air Alaska Journal of Commerce . . and Investment Minister David Ramsay. BP ConocoPhillips Alaska Inc. Petroleum News Thank You “The Northwest Territories really is an emerging land of undiscovered opportuni- Corporate Partners ty,” said Tom Hoefer, executive director of ABR Inc. Calista Corporation Flint Hills Resources Alaska the Chamber of Mines, which is the indus- Alaska Business Monthly Carlile Transportation Systems Inc. Jenner & Block LLP try’s champion for mining growth in the Alaska Journal of Commerce CIRI Koniag Inc. North. Alaska Rubber & Supply Inc. Clark James Mishler Photography Northern Economics Inc. “Mining is already a significant part of Alaska Wildland Adventures CONAM Construction Company Pacific Star Energy our economy, but given our huge size and Bear Track Inn Copper Whale Inn Stoel Rives LLP remoteness, there is still a great deal of land Booz Allen Hamilton Denali National Park Wilderness Centers Ltd. Trident Seafoods Corporation that has never been explored or at best has Bristol Bay Native Corporation Fairweather LLC Udelhoven Oilfield System Services Inc. seen little mineral exploration. When you factor in the large variety of geological ter- rains, attractive opportunities lie waiting The mission of The Nature Conservancy is to conserve for intrepid explorers.” the lands and waters on which all life depends. Canadian Prime Minister Stephen Harper has even picked up on this theme, 715 L Street . Suite 100 . Anchorage, AK 99501 . [email protected] . 907-276-3133 . nature.org/alaska declaring, “The North’s time has come,” 18 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 26, 2014

l YUKON TERRITORY 2013 field season attracts 100 projects Metals Creek discovers gold and more at Squid East project; assays comparable to early results from other White Gold discoveries

By ROSE RAGSDALE for 76 percent of the total outlay, while significant drill programs across the terri- 1.55 g/t gold, 114 g/t silver, and 0.31 per- For Mining News silver exploration and copper exploration tory, at least one that reported a new gold cent lead. The mineralization is associat- accounted for 12 percent and 6 percent, discovery. ed with brecciation, silicification, and ike most mining jurisdictions world- respectively, and exploration for zinc-lead pervasive sericite alteration. L wide, Yukon Territory encountered and nickel-PGEs each accounted for 3 More Yukon gold, plus Metals Creek acquired the Squid East numerous challenges in 2013, including percent of total expenditures. Metals Creek Resources Corp, com- property in 2011 through staking, 166 the prolonged drought in the capital mar- Quartz claim-staking in 2013 also con- pleted excavator trenching and a four- claims in four separate blocks. Three of kets. But the territory still managed to tinued to decrease from its high in 2011, hole diamond drill program totaling 428 the claim blocks are located in the Matson attract investment in more than 100 min- with only meters) at its Squid East Project located Creek area near placer gold workings, eral exploration projects, most of which 2,441 quartz claims staked by the end in the White Gold District of west-central and the fourth block is located west of the were follow-ups to campaigns in earlier of October. Yukon. Yukon River about 40 kilometers (25 seasons. Exploration activity continued to Drill targets were defined by trenching miles) north of Kinross Gold Corp.’s The Yukon Geological Survey, in its range from grassroots prospecting and over a northwest-trending gold-in-soil White Gold Project. annual exploration overview to be regional soil and silt sampling, to evaluat- anomaly at the Exploits zone. The claims were staked to cover a released Jan. 26, estimates exploration ing drill targets. Three of the four drill holes hit miner- number of gold geochemical anomalies, expenditures throughout the territory in The YGS said the dramatic decreases alization with the best results in drill hole interpreted to be underlain by favorable 2013 to total about C$45 million, down in exploration dollars spent, quartz claim- SE13-002, where drilling intersected oxi- geology similar to that hosting recently dramatically from C$300 million spent staking and number of claims in good dized bedrock and returned assay results discovered gold deposits in the White on comparable mine projects in 2011 and standing all indicate that the second of 2.43 grams per metric ton gold, 185.3 Gold area. more in line with such spending in 2006- Yukon gold rush of 2010-2012 is now g/t silver and 0.47 percent lead over 12 In 2011, Metals Creek began exploring 2007 and 1995-1996. over. meters starting at a depth of 14 meters the property with prospecting and soil In 2013, gold exploration accounted Yet a dozen or so companies mounted and within a 21-meter interval grading sampling. The next season, the company followed up with more detailed prospect- ing and soil sampling, which delineated a strong northwest trending gold, plus pathfinder element anomaly located on the Squid East claim block. Metals Creeks reported results that include remarkably continuous anom- alous values between sample locations with gold ranging up to 1,086 parts per billion. Following the 2012 field results, an additional 46 quartz claims were staked, increasing the Squid East land package and bringing the company’s total claims to 242. The explorer reported the discovery of gold at Squid East in August based on trench results, including completed trench E4-3 which returned 1.96 grams per metric ton gold over the entire length of a 22-meter trench. The trench results also included a higher grade interval of 6.39 g/t gold over 4.0 meters. Individual chip samples within this zone were 2.0 meters long and ranged from 0.25 g/t to 8.55g/t gold. Trenching was limited to 22m within this portion of the trench due frost conditions on both ends.t Metals Creek President and CEO Alexander (Sandy) Stares said assay results of the initial trenching program at Squid East demonstrate strong similari- ties to other proven projects in the White Gold district. When the drill program results were reported in October, Stares said, “The trenching and drilling carried out over the past season was intended to find a bedrock source to the strong gold, plus pathfinder, soil anomaly defined in 2012. Results to date indicate that the trenching and drilling may have clipped the eastern side of a gold-silver alteration system, which is wide open for expansion. The We do the digging, you get the gold. intersected mineralization is completely oxidized and the combined gold and sil- From the informative News Nuggets in the comprehensive yet concise weekly online ver values make this zone somewhat newsletter to the in-depth analysis provided in the monthly edition, North of 60 unique in the White Gold District. A more Mining News provides its readers with the most complete coverage available of the systematic drill program is being contem- plated for 2014.” issues and events important to mining in Alaska and Canada’s Far North. Metals Creek Jan. 14 also reported encouraging results of metallurgical tests, The North of 60 Mining News online subscription package – which includes 52 issues of including bottle roll cyanide extraction the weekly newsletter, 12 issues of the monthly edition of Mining News and full access that averaged of 92 percent gold recovery to all of the Mining News web site features—is available for only $69 per year. from drill core and trench samples at the Squid East project. To subscribe to this lode of information, go to “Positive results from the first-ever www.miningnewsnorth.com or call 907-522-9469. drill program combined with the prelimi- nary bottle roll test work indicates that the JUDY PATRICK weathered material appears amenable to heap leach extraction,” said Stares. l PETROLEUM NEWS • WEEK OF JANUARY 26, 2014 NORTH OF 60 MINING 19 continued from page 17 underground mine and plant that was con- Yellowknife and covers 12,635 hectares meter (67.6 square miles) property. structed in the early 1980s. The plant was over five zones of gold mineralization. A OPEN FOR BUSINESS three months away from operations but was feasibility study released in August 2012 Enhancing economic development never put into use. The existing mining- estimated pre-production capital costs of The Northwest Territories is planning Thor Lake about 100 kilometers (62 miles) related equipment includes a 1,000-metric- C$193 million with an estimated mine life for a prosperous future by enhancing eco- southeast of Yellowknife and five kilome- tonne-per-day mill. The company has pro- of about 15 years based on a production nomic development. Through several new ters (three miles) from Great Slave Lake, is posed an underground mine operation with rate of 4,000 tpd at an average grade of 2.03 strategies – mineral development, econom- contemplated as a 2,000-metric-ton-per- the capacity to mine 1,300 tpd of zinc, lead g/t gold. Proven and probable reserves are ic opportunities, and energy action – the day underground mine and concentrator, and silver. In June of 2012, Canadian Zinc estimated at just over 1.3 million ounces of territorial government is positioning itself with a hydrometallurgical secondary pro- Corp. released a pre-feasibility study pro- gold. The project owners are working to as a strong supporter of development for cessing facility being proposed for the jecting an 11-year mine life based on a raise financing to advance the project the future prosperity of the Territories. south side of the lake and a refinery locat- measured and indicated mineral reserve through the approvals process. Last fall, Premier McLeod announced ed in Louisiana. In April, Avalon estimate of 5.43 million metric tons of zinc, Tamerlane Ventures Inc.’s Pine Point planning was underway on a multimillion- announced the completion of a comprehen- lead and silver with a mill rate of 1,000 tpd. Project builds on a historical base metal dollar investment in hydropower that would sive feasibility study that confirmed strong Inferred resources encompass another 6.2 mining area on the south side of Great provide energy to communities and mining economics with a 22.5 percent pre-tax million metric tons of the three metals, Slave Lake, where the original Pine Point projects. internal rate of return and average annual which have the potential to double the life mine produced zinc and lead for 25 years. In the spring, Minister Ramsay released revenues of C$645.8 million, with initial of the mine. On Sept. 18, the federal minis- Tamerlane has received approval to mine “Corridors for Canada III: Building for production projected for the second half of ter responsible for northern mining the R190 zinc-lead deposit utilizing an Prosperity,” which proposes C$600 million 2017. Avalon is presently doing process approved the project. Near-term, Canadian innovative combination of basic and techni- in strategic transportation infrastructure optimization work to improve REE recov- Zinc intends to focus on pre-construction cal mining methods. It would be simplified investments that will support communities eries, reduce costs and enhance project eco- optimization activities with site construc- by the large amount of existing infrastruc- and resource development across all nomics. A proposed new process could tion potentially beginning in 2014. The ture including: existing hydro power, paved regions of the NWT. result in the hydromet plant being located company is currently seeking funding to road access to southern Canada, and a rail Said Ramsay: “The NWT can’t go it elsewhere due to additional infrastructure bring the mine into production with the head at the community of Hay River, only alone and is seeking funding from the fed- requirements. This work is expected to be potential for first shipment of concentrate 42 kilometers (26 miles) away. Developing eral government for roads, airports, bridges completed in January. Total capital require- south in 2016. the R190 deposit first could pave the way and other infrastructure improvements that ments estimated for the feasibility study are The Yellowknife Gold Project, Tyhee for full-scale mining of the other known will “lay a foundation for the economic C$1.575 billion and more than 200 new Gold Corp.’s flagship property, is located base metal deposits in close proximity to growth and prosperity of the NWT.” l jobs are expected to be created in the NWT, 90 kilometers (56 miles) north of the R190 deposit on the 175-square kilo- mainly at the Nechalacho site. The Nico gold-cobalt-bismuth-copper deposit of Fortune Minerals Ltd. is located 160 kilometers (100 miles) northwest of Yellowknife, and only 85 kilometers (53 miles) north of the major highway to the capital. Construction of an all-weather road is proposed to allow metal concentrates to be trucked to southern markets. A 2012 Front End Engineering and Design Study outlines pre-production capital costs esti- mated at C$441million for a vertically inte- grated project with a mine and mill in the Northwest Territories and a refinery planned for Saskatchewan. The study indi- cated life-of-mine average operating costs of mine at C$61.97 per metric ton of ore processed. The Tlicho and federal govern- ments have given the go ahead for the NICO mine and mill with permitting and financing requiring completion prior to the commencement of mine construction. The proposed mine site boasts reserves of 33 million metric tons containing gold, cobalt, bismuth and copper with a projected mine life of 20 years. Fortune Minerals has begun site preparations for construction at NICO that is targeted to begin in 2014. Canadian Zinc Corp.’s Prairie Creek Project comprises a partially developed continued from page 13 TOWER HILL TEAM ish their resource and 20 million oz. on a paved road in this jurisdiction is a good place to be,” observed Irwin. 29 He told Mining News that a number of companies have expressed interest in Livengood by entering into confidentiality Cu agreements with International Tower Hill. “Some are heavily engaged, and we are 63.55 encouraged by that,” he added. Until the time comes that one of these World-class project. World-class science. companies steps up to fund the permitting and development of Livengood, Pebble is a world-class copper deposit and one of North America’s most significant copper International Tower Hill Mines will wisely discoveries. Since 2001, more than 100 independent scientists and technicians have use its US$15.5 million in cash reserves conducted one of the most extensive environmental studies program in Alaska. (as of Sept. 30) to continue the five years of baseline environmental work estab- The Pebble Partnership is committed to responsible resource development in Southwest lished at the project while optimizing a Alaska — recognizing that a world-class project requires world-class science. mine-plan to take into permitting. “Right now, at our expenditure rate to do what we need to do – protect the asset, www.pebblepartnership.com do the environmental work, advance the project – we are good well into 2015,” Irwin explained. “We are encouraged about it; this is going to be a mine,” the International Tower Hill Mines said of the progress at Livengood. l 20 NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 26, 2014

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