A '.ASKA AAILI, RESOURCES 1981-82 Review of Alaska's Mineral Resources T.K. Bundtzen G.R. Eakins C.N. Conwell Division of Geological and Geophysical Surveys Department of Natural Resources State of Alaska Department of Commerce and Economic Development Office of Mineral Development Governor Jay S. Hammond Commissioner Charles R. Webber Director John F. M. Sims FOREWARD Shortly after the Office of Mineral Development was established in 1981 the first initiatives were taken to compile an authoritative and contemporary review of the mineral resources of the State. This volume, A REVIEW OF ALASKA'S MINERAL RESOURCES, was prepared by the professional staff of the Division of Geological and Geophysical Surveys (DGGS) in the Department of Natural Resources. As a definitive volume, this review will be subject to periodic update as new information and developments warrant. The Office of Mineral Development will publish a summary version which will become the format for an Annual Review of Mining Activity. It is absolutely vital that decision makers in the legislature, State and local government administra- tions, the private sector inclusive of industry and the native corporations as well as the public at large have access to a reliable data base and contemporary commentary of the mining industry - an industry with a rich heritage in Alaska and one which offers great promise as a vehicle to expand and diversify the economic base. Preparation of a review of this type requires cooperation and effort on the part of industry in generating the information requested on the questionnaire which, in turn, is the very substance of the report. Hopefully, industry and the public sector will continue to collaborate in this project and sup- port the efforts of the Office of Mineral Development to ensure that mining has an informed constituency in Alaska. Our northern neighbors in the Yukon Territory have evolved a public agency reporting system for mining activity which is a model for us to adopt and adapt to suit our own particular conditions and needs. Unlike the Canadian Yukon, we in Alaska do not have an economy dominated by mining activity, however, the share of mining in the economy of Alaska is growing and will dramatically increase in the years ahead. In 1981 the value of all goods and services purchased by exploration companies com- bined with the value of mineral commodities produced in Alaska was in excess of $300 million. More specifically, exploration expenditures exceeded $100 million while the value of gold produced was conservatively pegged at $55 million. Sand-and gravel accounted for $88 million and coal a further $17.6 million of the overall value. Growth in all sectors and all phases of the mining industry is confidently predicted and the time may not be too far away when the industry will be second only in economic importance to the oil and gas industry. John Sims Office of Mineral Development Table of Contents Foreward Summary ............................................................................. 1 Private and public agency involvement in the Alaska mineral industry ..................... 3 Historical sketch of mining in Alaska .................................................. 4 Future perspective of mining in Alaska ................................................ 6 Exploration activity in 1981 ........................................................... 7 Introduction ...................................................................... 7 Summary of major active clqim blocks ............................................... 9 Copper-lead-zinc .................................................................. 9 Tin-tungsten (byproduct fluorite. niobium. tantalum) ................................... 12 Molybdenum. copper-stockwork exploration .......................................... 14 Nickel-cobalt-chromiumpplatinum metals exploration .................................. 14 Industrial and structural materials exploration ...............: ........................ 18 Coal ............................................................................ 18 1982 Mineral development and production projects in Alaska .............................19 Little Squaw Mining Company ......................................................19 Alaska Gold Company dredges ..................................................... 20 Grant Mine, and Ester Dome development ............................................ 21 Asamera placer operations, Livengood District ........................................22 Goodnews Bay dredge .............................................................23 Northland dredging operation, NYAC District ......................................... 23 Independence Mine, Willow Creek District ............................................24 Greens Creek deposit, Admiralty Island ..............................................25 U.S. Borax molybdenum deposit at Quartz Hill ........................................26 Other notable mineral-exploration development projects ................................27 1981 Alaska mineral production .......................................................28 Introduction ....................................................................... 28 Metals ...........................................................................30 Industrial minerals ................................................................32 Coal .............................................................................33 Historical production statistics and projected reserves for significant mineral commoditiesin Alaska ...........................................................34 Metals ............................................................................34 Strategic minerals .................................................................38 Industrial minerals ................................................................43 Coal .............................................................................47 Peat .............................................................................50 References cited ....................................................................51 \ Appendices Appendix A. Information and Permitting agencies B. Private groups affecting the development of mining State of Alaska agencies affecting mining Federal agencies affecting mining State and federal placer-mining permit requirements Major active claim blocks and development projects Significant mineral deposits in Alaska Companies and individuals conducting exploration in Alaska during 1981 by region 1980 mining licenses issued by the Alaska Department of Revenue List of sand, gravel, and stone-quarry operators 1981 Cumulative Alaskan industrial-mineral production and reserve base Fairbanks area pottery industry's use of Healy area clays Production, reserves, and resources of selected strategic minerals in Alaska Strategic minerals references for Alaska Industrial minerals references for Alaska Laws and Regulations affecting coal in Alaska Plate 1. Significant mineral deposits and prospects in Alaska 2. Locations of major active claim blocks and development projects in Alaska 3. Mining-claim recording districts of Alaska 4. Coal-Peat resource map of Alaska Cover: Northwest Alaska - Red Dog Deposit - Exploration and development by NANA Inc. and Cominco Alaska SUMMARY This report summarizes past and present miner- * The State of Alaska, Division of Geological al-industry activities (excluding oil and gas) in the and Geophysical Surveys (DGGS) and the 49th state, from level's of exploration and descrip- University of Alaska Mineral Industry Re- tions of development projects to actual mineral search Laboratory (MI R L) are conducting production. In current dollars, Alaska's mineral detailed economic-geology surveys of mining production from 1880 to 1980 amounted to over $20 districts in the east-central region of the state. billion (table 1). Total value of 1981 mineral produc- tion in Alaska exceeded $180 million, an increase of * DGGS presented several reports on Alaska's about 19 percent from 1980. The dramatic growth in strategic and critical minerals endowment at gold production was responsible for most of this state and national meetings. increase. At least 134,000 ounces of gold (about 12 percent of United States production) were recovered * The Governor's Division of Policy Develop- from several hundred small and a few medium-size ment and Planning contracted a private firm placer- and lode-gold operations throughout the state. to assess the potential for developing Alaskan Exploration and development expenditures deposits of nickel, chromium, platinum group during 1981 remained at the high levels established metals, cobalt and tin. during the last 6 years, amounting to over $75 million (table 2). Most of this was expended in property * In 1981, the U.S. Bureau of Mines began an evaluations, but some companies continued grass- aggressive program to assess Alaska's strategic roots exploration projects. Several properties have minerals. reached a development stage, and it is encouraging to see this despite the withdrawal of large land areas * I n-holders in conservation units administered from mineral entry, rising costs, and the nation's by the National Park Service are allowed to economic slowdown. The latter will probably reduce continue development of mineral properties. short-term levels of activity. Present modifications of federal and state policies * A state loan fund for miners was established toward mineral development