2018 Mining in Alaska

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26th Biennial Mining Conference Red Dog Upper Kobuk

Producing Mine

Livengood

Graphite Creek

Project in Permitting

Fort Knox Pogo Donlin Gold

Advanced Exploration Projects Community with Mining Industry Employees

Usibelli

Pebble

Palmer

Kensington Greens Creek

Mining Activity in Alaska

March 26-31, 2018 — Fairbanks, Alaska


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Sunday, March 18, 2018

ALASKA MINERS ASSOCIATION

Welcome to the AMA’s 26th biennial conference Mark Huffington

AMA 26TH BIENNIAL CONFERENCE COMMITTEE CHAIR

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itting here at my desk thinking about the upcoming Alaska Miners Association 26th Biennial Conference, I feel so fortunate for the wonderful people I’ve met during my last seven years in Fairbanks. I love Interior Alaska and Fairbanks as they offer a remarkable place to live for enjoying a career I so dearly love: that of being a miner. Miners are a wonderful group of people who care for others and will gladly jump in to lend a helping hand to those in need: Miners are family. If you know a miner or meet one throughout the next week, show your appreciation by saying thank you as mining has provided the raw materials for countless products and services that we all enjoy. It’s an honor to chair the AMA Fairbanks Conference Committee for this event during the week of March 26

through March 31 at the Carlson Center. I can’t say enough about the committee members; such a talented group of industry minded professionals. The conference’s Huffington theme of “Prospecting Alaska’s Future” will bring miners, educators, professionals, and vendors from throughout Alaska together. Alaska is at the forefront of Arctic mining and exploration and the weeklong event will highlight innovation and research surrounding arctic environments, including two days of short courses, three days of technical sessions, and tours of local mines. Listening and learning from speakers throughout the week will excite even those with decades of experience, and the novice will go away with a greater understanding of how mining works for Alaska. This conference also boasts a wonderful tradeshow that will have close to 100

exhibitors this year, including displays of heavy equipment through the convention floor. The conference allows attendees to reacquaint themselves with old friends and the opportunity to make new ones. I also enjoy walking around the conference and overhearing the stories being shared of what once was and what could be. The tradeshow will be open to the public on Thursday, March 29 from 9 a.m. to 4 p.m. and we invite the community to join us to learn more about our industry. Let us not forget the Alaska Mining Hall of Fame Foundation. They will be holding their special event honoring mining pioneers and will induct three new members into the Hall of Fame. The local Pioneers of Alaska Igloo No. 4 and the McCarthy Kennecott Historical Museum will also provide presentations throughout the evening. All are invited and we look forward to a packed house for honoring Alaska mining forebears on Wednesday beginning at 7 p.m. at the Carlson Center’s Pioneer Room. On

Thursday evening at 6 p.m., the Westmark will host the conference banquet featuring a look back at the last 75 years of Usibelli Coal Mine, the Burggraf Resource Education silent & live auction fundraiser to benefit the Alaska Resource Education program and the AMA biennial awards presented to honored individuals for the Golden Heart Service Award, Promising Prospector Award, and the Hawley Lifetime Achievement Award. Cocktail hour starts at 6 p.m. and the banquet program begins at 7 p.m. The banquet is open to the public and tickets can be purchased online through the Alaska Miners Association website. There will be something for everyone next week during 26th Biennial Mining Convention! For a detailed schedule of the week’s events, please visit the conference website at alaskaminers.org and the Alaska Miners Association Facebook page. Come and join us for a GREAT week!


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ALASKA MINERS ASSOCIATION

Mining a mainstay of Interior Alaska economy Fairbanks Economic Development Corporation

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ining has a distinct mark on employment in the Interior. In 2016 the Bureau of Labor Statistics reported that the mining industry was directly responsible for 800 jobs within the Fairbanks North Star Borough. Add this to number of borough residents who own or work for mining support businesses, and you have one of the major economic drivers in our borough. Our direct mining jobs aren’t all due to the larger mines. According to data from a 2013 Alaska Miners Association report, approximately 230 people employed in placer mining lived in Fairbanks, about 26 percent of the statewide placer mining workforce. Small mining operations in the borough provide income to remote communities outside the city. These operations can spin up when metal prices are high and easily slow as metal prices decrease. These agile operations also influence the tourism industry by carrying on the unique cultural history of our community. The benefits of the mining industry work both ways, it’s not just what they provide to our economy but what other businesses in our community are able to provide to them too. Numerous vendors in town support the mining industry in the Interior through parts and services that they provide. In 2013 placer mining operations spent $32.4 million on goods and services at Fairbanks businesses. That $32.4 million accounts for about half of the estimated total placer mining goods and services spending

For more than a century, Fairbanks has been a hub for mining. Above, the pit at Kinross Fort Knox. Below, gold dore bars. for the entire state. Fairbanks is a big deal to placer miners all over Alaska. Those same vendors placer miners use often serve as vendors for the large mines. Additionally, Golden Valley Electric Association (GVEA) sells a sizable percentage of its electricity to Fort Knox and Pogo Mines. In 2017, 25 percent of total GVEA sales went to Fort Knox Mine and 10 percent went to Pogo Mine. Large customers like the mines are not only making jobs readily available for borough residents, but are creating a cost stabilizing anchor tenant in a state where electric use varies drastically depending on the time of year. Moreover, mining compa-

nies give back. The industry has utilized the state’s education tax credit to contribute tens of thousands of dollars to the University of Alaska Fairbanks in recent years, and local mines have spon-

sored countless community events. Large mining operations are not just a backbone industry to the FNSB, they fund many festivals, sporting events, and educational

opportunities for Fairbanks residents. FEDC and its partners live by the motto, “Our community, our economy, and our responsibility.” It’s the ingenuity of borough residents who strive to keep Fairbanks and its surrounding communities worthy of the name “Golden Heart City.” The mining community is a prime example of this. Generations and generations of Fairbanks families have mining roots that stretch back to the gold rush days. Today, the grandchildren and great-grandchildren of those pioneering miners live and work in the Fairbanks community. Fairbanks Economic Development Corporation looks expectantly as metal prices rise and demand increases for metals in emerging markets and in renewable energy technology. How apt that Fairbanks is, and will continue to be, a hub for mining on our road system and in rural areas due to the local businesses that provide goods and services. Fairbanks Economic Development Corporation is a community-based economic development organization which provides information, assets, and subject-matter experts to economic opportunities and issues in the Fairbanks community. As opportunities or needs arise, FEDC supports all industries in the Fairbanks North Star Borough. Primarily though, we have staff monitoring and providing resources for industries such as agriculture, technology, energy and, of course, mining and mining support businesses. You can find out more about Fairbanks Economic Development Corporation at www.investfairbanks.com.


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ALASKA MINERS ASSOCIATION

Alaska: A storehouse of critical minerals A

laska and mining: The history of our state is closely tied to the history of mineral exploration, discovery and extraction. While most people may think that the early mining history of Alaska revolved around gold, the fact is that mining in Alaska has produced a wide variety of metals and commodities. And that list of commodities may grow even longer in the future. Current production from lode (hardrock) and placer mines in Alaska includes gold, silver, lead, zinc, coal, peat, rock, sand and gravel. Historic mining in Alaska also produced varying amounts of mercury, antimony, tin, platinum, chromium, copper, barite and diamonds. Future production from mines may include additional metals needed for our technology-rich society. What metals and commodities might be mined in the future? The possibilities are many. Alaska is considered a storehouse of materials necessary for modern life. Recent events have made exploration and mining of these materials attractive in Alaska. In December 2017, the U.S. Geological Survey released a report stating that the United States relies on China, Russia, South Africa, and other nations for the overwhelming majority of critical minerals used for manufacturing everything from smartphones to wind turbines and cars. In most cases, the United States relies on other nations to supply at least 50 percent of the annual domestic demand for certain minerals. According to the USGS, the U.S. imported 100 percent of its supply of 21 different minerals in 2017, and at least 50 percent of its supply of 50 additional minerals. Examples include rare earth elements (100 percent dependent on foreign sources), graphite (100 percent dependent) and niobium (100 percent dependent). U.S. Interior Secretary Ryan Zinke called the report’s findings troubling and said the reliance on imported minerals, especially by the military, poses a “very real national security risk.” President Donald Trump responded by issuing Executive Order No. 13817, “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals” on Dec. 20, 2017. The secretary of the Interior, in coordination with the

secretary of Defense, was tasked with developing and submitting a draft list of minerals defined as “critical minerals.” This draft list of critical minerals was released on Feb. 16, 2018. by the secretary of the Interior. The list was compiled by the USGS and other U.S. government agencies using multiple criteria in the analysis. The draft list includes the following 35 minerals or mineral material groups: aluminum (bauxite), antimony, arsenic, barite, beryllium, bismuth, cesium, chromium, cobalt, fluorspar, gallium, germanium, graphite (natural), hafnium, helium, indium, lithium, magnesium, manganese, niobium, platinum group metals, potash, rare earth elements group, rhenium, rubidium, scandium, strontium, tantalum, tellurium, tin, titanium, tungsten, uranium, vanadium and zirconium. Sen. Lisa Murkowski, R-Alaska, who chairs the Senate Energy and Natural Resources Committee, called the

domestic development of critical minerals crucial to U.S. national security. “We have to pay greater attention to this threat, and we have to take steps to resolve it now,” she said. Murkowski also praised release of the draft list of critical minerals by Zinke. “I thank Secretary Zinke for his recognition of the dangers of our foreign mineral dependence and his continued efforts to strengthen our nation’s mineral security,” Murkowski said. “This list provides a good starting point as we seek to develop more of the minerals that are fundamental to energy, defense, agriculture, and many other technologies that make up the foundation of our modern society.” The good news for Alaska is that many of these critical minerals are found in our state due to its diverse geology and associated mineral endowment. Some of these minerals were mined in Alaska in the past as noted above, and there is a possibility of min-

ing these and other critical minerals in the future as a result of directed exploration programs. The accompanying chart summarizes Alaska’s potential for critical mineral production. The chart, from a 2017 USGS report, shows the net reliance of the U.S. on imported minerals and mineral materials. The chart has been modified by the Alaska Department of Natural Resources Division of Geological & Geophysical Surveys to show current, past, and potential future production in Alaska for each mineral and mineral material. Of the 35 minerals or mineral material groups identified in the 2018 draft critical mineral list, at least 28 of those minerals can potentially be mined in Alaska from known mineral occurrences. So where will the next mine in Alaska that produces critical minerals be located? That depends on U.S. mineral policy and commodity market conditions.


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Three to be inducted in Alaska Mining Hall of Fame

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hree mining pioneers will be inducted into the Alaska Mining Hall of Fame during an induction ceremony that will be held at the Carlson Center on March 28, 2018. This year, Joan Skilbred from the Pioneers of Alaska and Pat Garrett from the McCarthy Kennecott Historical Museum provided much of the biographic materials for the induction ceremony. • William T. Ewing was born in Missouri a slave, in 1854. In 1880, Ewing traveled throughout William T. Ewing the country and eventually moved to Tacoma, Washington, where he served with the Tacoma Police Department. In 1896, Ewing traveled north to Alaska and was at Circle just prior to the Klondike Gold Rush. In 1902 Ewing and mining partner Jesse Noble were prospecting in Interior Alaska when Felix Pedro made his gold discovery. Ewing teamed up with Daniel McCarty, who owned the Discovery Claim on Fairbanks Creek, and made a fortune in gold. He later retired to Oakland, California, and when he passed way in 1923, he willed his entire estate to the Tuskegee Institute in Alabama. His gravestone in Oakland states, “William T. Ewing, 1854-1923, a native of Missouri. His estate left to educate his people.â€? • Early in his life, Eugene Swanson was a Buffalo Soldier for the U.S. Army and saw many Western locales during his service in the military. Like Ewing, he came north during the Alaska-Yukon Gold Rush and mined in many mining districts throughout the Interior, finally settling on the Rampart district along the Yukon River, where

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Kate Kennedy he mined for decades. When he passed away at the onset of World War II, an honor guard from the U.S. Army came north to participate in his Fairbanks funeral. • Kate Kennedy (1882-1969) was the consummate stampeder who traveled north with her husband, Charles, over Chilkoot Pass during the 1897 Klondike gold rush. She would briefly team up with AMHF inductee Fanny Quigley and set Eugene up cooking establishSwanson ments for the mining community wherever needed. After spending more than 10 years in the Candle district of northwest Alaska, she stampeded to the Shushanna and Nizina gold fields in the Wrangell Mountains. Kate ended up in the copper boom town of McCarthy in 1912, where she ran boardinghouses, kitchens, taxi companies, and practically any other business needed for the small isolated mining community for decades. She passed away in Portland, Oregon. The induction ceremony will take place from 7-9 p.m. Wednesday, March 28 at the Carlson Center. Coffee and doughnuts will be served. The event is free and the public is invited.

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Sunday, March 18, 2018

ALASKA MINERS ASSOCIATION

A drone captures an aerial view of the new Jumbo Dome Road Corridor at Usibelli Coal Mine.

PHOTO COURTESY USIBELLI COAL MINE

Healy’s Usibelli Coal Mine celebrates 75 years By Lisa Herbert USIBELLI COAL MINE

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elebrating its 75th anniversary this year, Usibelli Coal Mine is Alaska’s only operational coal mine. The company is proud to have an all-Alaska workforce of approximately 100 employees, of which more than one-third represent the second, third or fourth generations within their families to have worked at the mine. Usibelli Coal Mine produces close to 1 million tons of ultra-low sulfur, subbituminous coal each year. In commemoration of its anniversary, the mine has created a special anniversary logo, is publishing a historical narrative and picture book and will host a celebration at the mine in Healy for employees and their families, as well as the community, on Saturday, Aug. 4. Usibelli Coal Mine’s humble beginnings date back to 1943 when the military issued a contract to supply 10,000 tons of coal to Ladd Army Air Field, now Fort Wainwright, during World War II. The company was started by Emil Usibelli and his friend T.E. “Thad” Sandford with a single TD-40 bulldozer and a 1930s vintage GMC logging truck. Since then, the fourth-generation family owned business has continued to flourish and has been a major contributor to the Interior and Alaska economies. Today, Joe Usibelli Jr. leads the coal

mine as president. He succeeded his father, Joe Usibelli, who led the mine from 1964 to 1987 and now serves as chairman of the board. The mine operates year-round and successfully meets increased demand for coal during Alaska’s cold and dark winter months. One unique feature of the coal mined in Healy is that it is one of the cleanest burning coals in the world. Usibelli coal is transported to five Interior electric power plants – including four co-generation plants that produce steam or hot water for area heating needs, in addition to electric power. The four co-generation plants are the Fort Wainwright Central Heat and Power Plant; the Eielson Air Force Base Central Heat and Power Plant; the Aurora Energy power plant, a wholesale supplier of electricity and provider of district heat in Fairbanks; and the Atkinson Heat and Power Plant at the University of Alaska campus in Fairbanks. A mine mouth facility, consisting of Healy Units No. 1 & No. 2, is operated by Golden Valley Electric Association adjacent to the mine site in Healy. The mine recently completed a haul road to access a new mining area known as the Jumbo Dome Mine. This new road provides access to 83 million tons of permitted coal and has the potential to yield over 100 years of reserves at current production levels and sustain Usibelli Coal Mine’s oper-

ations into the future. Usibelli Coal Mine is continually looking to improve the efficiency of both engineering and production. Last year, the mine added two new 150-ton haul trucks to its truck fleet, as well as two new 150-ton capacity coal truck boxes that increased the average hauling capacity per load by 30 tons. A new coal bucket was installed on one of the excavators that improves the overall load time into the haul trucks. Additionally, the mine has also benefited from technology upgrades. One new practice is the use of drones, which offer the ability to accurately map and measure locations throughout the mine, such as highwalls. The drones also help to eliminate potential hazards to employees because they no longer have to physically visit the locations. A new wireless equipment data system at the mine helps the maintenance department better track hours on the equipment, schedule necessary service, and more efficiently and effectively maintain the production fleet. Perhaps the most exciting recent addition to the mine’s equipment is the CAT 994K wheel loader. It boasts a 35-yard bucket and was assembled on site at the mine in about 30 days by CAT and UCM employees. The mine also boasts an impeccable environmental program. In 1970, six years before the government required

it, the Usibelli family pioneered a successful reclamation program with the ultimate goal of establishing a natural landscape on previously mined land. The process includes contouring the earth and then seeding it with a carefully researched mixture of grasses and plants indigenous to the northern regions. Last year, Usibelli Coal Mine’s reclamation team planted more than 25,000 trees and seeded 138 acres for final reclamation. The safety of Usibelli Coal Mine employees continues to be one of the company’s core values. In the early part of 2017, a new safety campaign — “Everyday Safety: At Work. At Home. At Play” — was launched to rebrand, reinforce and re-emphasize safety, both on and off the job. On Jan. 31, the company celebrated 365 days without a lost-time injury. Coal will continue to play a critical role in achieving our state’s energy, economic and environmental goals now and into the future. Usibelli Coal Mine has remained successful for 75 years as a result of tremendous leadership and vision from the Usibelli family and the incredible passion and devotion of the mine’s employees. These strengths promise to give the mine a prosperous and secure future for many decades to come. Lisa Herbert is vice president of public relations for Usibelli Coal Mine.


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ALASKA MINERS ASSOCIATION

ARE maintains its mission to educate Alaska students about mining By Ella Ede ALASKA RESOURCE EDUCATION

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he mission of Alaska Resource Education is to teach students about Alaska’s natural resources. Founded in 1982, ARE was first known as the Alaska Mineral and Energy Resource Education Fund (AMEREF). John Blackwell, the Alaska manager for Engelhard Minerals, was its founder. Blackwell’s passion for AMEREF was well known and inspired many others to join in their support for the program. AMEREF rebranded and became Alaska Resource Education (ARE) in 2009, which enabled ARE to draw from a much wider base of support for fundraising, volunteers and program initiatives. ARE provides hands-on curriculum activities, 500-level University of Alaska courses for educators, and an Alaska Resource Kit full of materials and activities for classroom use. ARE also started three original youth programs: the Minor Miners,

the Energy Einsteins, and the Resource Superforce. In 2011, ARE received the Interstate Mining Compact Commission’s Minerals Education Award in the Public Outreach Category, an enormous honor for such a small organization. In 2011, the ARE Minor Miners also won the Star Award through the School to Business Partnership with the Anchorage School District. ARE has also partnered with the Girl Scouts of Alaska for their Women of Science days throughout the state since 2011. In 2014, ARE launched its own Girl Scout patches (Mineral, Energy, Forestry, and Natural Resources) that are now available to Girl Scouts statewide. To date, ARE kits can be found in every school district of Alaska, and the organization now directly educates approximately 50 teachers and more than 2,000 students through direct classroom visits each year. From 2013 through year to date in 2018, ARE has

educated 239 teachers and 10,483 students through their programs around the state. ARE is an excellent example of a strong partnership between education and industry. The leaders of Alaska’s resource industries are responsible for making our mission a reality. The efforts of our staff, board of directors, and dedicated volunteers ensure the delivery of our program across the state. Our goal is to ensure that every Alaska student knows the importance of natural resources for their future and Alaska’s future.

Implementation of 9-12 curriculum

Based on an increased interest from high school teachers, and a need from industry for a competent, Alaska workforce, ARE is committed to developing a grades 9-12 curriculum focused on Alaska’s energy and mineral resources. Alaska’s economy depends on the min-

eral and energy industries; therefore, providing a path for students to choose careers in these industries is critical. ARE is developing an online high school curriculum that will take students on a journey through the history, process, geography, economics and careers associated with Alaska’s mineral and energy industries around the state. The curriculum will be delivered through ArcGIS online, accessible from the most remote corners of Alaska. It will teach students the fundamentals of Science, Technology, Engineering, and Math (STEM) and the career and employability soft skills they will need to be successful in any resources industry career. Our goal will be to have the curriculum used across a wide range of classes, including history, science, and social studies, and also in class curriculum such as Alaska Studies or Natural Science of Alaska. In 2018 the Teacher Working Group EDUCATION » 10

Twin brothers at UAF develop way to monitor remote mine Courtesy of UAF College of Engineering and Mines

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he University of Alaska Fairbanks mining engineering program is one of a handful programs worldwide that operates a training mine. The student-run UAF Silver Fox underground mine is located approximately 17 miles north of the main campus, off the Elliott Highway. Safety protocols at the mine require that entry and exit from the underground workings be logged. This requirement is typical of the mining industry. The current “check-in-checkout” (CICO) system consists of visitors logging their entry and exit into a notebook placed at the mouth (portal) of the mine. They also take a unique brass

tag that would help identify them in case they are incapacitated. Managing the notebook, its location and physical condition, can be challenging as the Silver Fox is a volunteer run mine. Early this fall semester, Rajive Ganguli, professor of mining engineering and faculty ambassador for OIPC asked twin

brothers and mining engineering majors Aaron and Benjamin Rouse if they would be interested in developing a solution to the problem. He presented some ideas including radio frequency identification (RFID) tags. The two brothers were excited and readily agreed. “It was a great opportunity for me to see what I was capable of

as a student” said Aaron Rouse. They obtained cheap RFID tags online and came up with the prototype solution within a month. In their solution, each person can be assigned a unique tag. The tag is scanned by a reader, which transmits the tag and time stamp information to a tablet/computer. The information is displayed using Microsoft Excel. The brothers worked with their mentor, Ganguli, to fine tune the information display including providing a quick analysis. The prototype was deployed during the blast conducted at the mine in October. Representatives from Orica Explosives and Sumitomo Metal Mining Pogo mine, who helped with the blast, evaluated the prototype and provided feedback. The professionals were surprised

to note the very low cost of the prototype. They indicated that a robust version of the product could find a market in mines as many mines still relied on traditional CICO systems. The brothers have been working on the prototype and making improvements. They practiced their “sales pitch” at the UAF Mineral Industry Research Laboratory booth at the Alaska Miners Convention in Anchorage last month. “It was very difficult to develop a new thing, but we found a suitable technology that could be used for our project, and we were able to come up with a final product by applying our ideas” said Benjamin Rouse. The brothers want to learn about the commercialization process to hopefully sell their product in the near future.


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ALASKA MINERS ASSOCIATION

CMI supporting Alaska mining since 1985

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onstruction Machinery Industrial, LLC (CMI) is an Alaskan owned company serving Alaska with branches in Anchorage, Fairbanks, Juneau and Ketchikan. CMI has been serving the Alaska market since 1985 with about 105 dedicated employees. CMI is recognized as one of the premier equipment dealers in the state of Alaska and is respected as an equipment dealer across North America. CMI is a full-line construction and mining equipment dealer representing many excellent manufacturers including Volvo Construction Equipment, Hitachi Construction and Mining, Atlas Copco Construction and Mining, Link-Belt Cranes, Doosan Portable Power, Mack Truck and many others. We offer sales, rentals, parts, service, warranty coverage, technical assistance for all of our manufacturers. CMI’s strong focus on the mining industry gives us the opportunity to serve all of the major mines in Alaska and a majority of the smaller mining operations. CMI is proud to state that we have been and will continue to be one of the major supporters of the Alaska Miners Association and Alaska Resource Education.

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ALASKA MINERS ASSOCIATION

*schedule confirmed as of 3/16

For more information about registering and public sessions, please visit alaskaminers.org


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ALASKA MINERS ASSOCIATION

Fort Knox committed to its values, community By Anna Atchison KINROSS FORT KNOX

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ast year, Kinross Fort Knox gold mine celebrated the 20th anniversary of its very first gold pour. For those of us who have lived in Fairbanks a long time, it’s interesting to reflect on where we were just over two decades ago and the significant ways our lives have evolved as mining has evolved in Interior Alaska. I remember the late ‘90s well. I had recently married my husband, Shane, and had started college at the University of Alaska Fairbanks, where I would earn a degree in natural resources management. Mining interested me even then, and I was excited to hear about the prospects of this gold mine 25 miles north of Fairbanks. Several years later, like so many of us, I had the opportunity to tour the mine and hold that shiny, heavy, gold tour bar. Back then I didn’t think much about gold prices or how much that bar was worth at that moment. Now I am very aware of the value of that bar and the correlating rise in the

cost to produce. Gold has seen many ups and downs in the last 20 years. In 1996, gold was worth an average $387 per troy ounce. At the start of the new millennium, it had dipped to $271 per ounce and things were certainly challenging. Yes, the industry faces unique challenges today, just as it always has. But what has not changed is the commitment to the values we share here at Fort Knox and the values we share with our peers in the mining industry. Just as it is important in a marriage or other relationship to stay true to your values and honor your commitment, we steadfastly honor the history of Fort Knox. The results of our most recent McDowell socioeconomic study clearly demonstrate our commitment. Fort Knox is a stable, year-round employer of local Alaskans. On average, our employees have lived in the Fairbanks area for more than 15 years, with 46 percent living in the Fairbanks North Star Borough for 15 years or more. A remarkable living wage of more than $100,000 annually means that two out of three of our

EDUCATION Continued from 7 will build the site-specific, ArcGIS story boards. This statewide teacher working group will work with our industry working group to develop and review the curriculum. Once complete, the new 9-12 mineral and energy curriculum will be deployed statewide through various social media, conferences, and direct teacher outreach

employees choose to own their own homes. Assuming that all of this real estate is within fire and police protection areas, borough property tax revenues from these employee-owned properties totals approximately $1.3 million annually. Based on survey responses, 61 percent of employee households made cash donations to nonprofits. Those households that contributed time to nonprofits provided an annual average of 126 hours of volunteerism to their community to 180 organizations. It is equally important to us that we as a company support employee volunteerism. About 150 organizations receive financial support from Fort Knox each year. This includes youth sports, public safety support, social assistance, and civic organizations. To date, we have gifted $3 million to the University of Alaska. Fort Knox has mined for more than 20 years while putting people first, operating safely as a responsible corporate citizen, reclaiming the land as we go, and rising to the challenges that face us. We are not in those early days

methods. Since 2014, ARE’s education program manager, Beki Kelly, has been working with high school students at Hutchison High School in Fairbanks in the advanced automotive, diesel technician, and heavy equipment classes in conjunction with the biennial Alaska Mining Association convention in Fairbanks. She spends time in the classroom teaching students about the mining industry in Alaska and associated

Mobile maintenance mechanics at Fort Knox.

PHOTO

COURTESY OF KINROSS FORT KNOX

anymore, and gone is the honeymoon phase. Each additional year of mine life takes innovation and a commitment from each and every member of the team. But just as a lasting relation-

careers. Students also spend time learning skills for interacting with professionals, and then are given the opportunity to attend the mining convention and practice. At the convention they learn about companies that support the mining industry and related career options. In addition to providing resources for teachers and students, ARE recognizes teachers who are going above and beyond in their classrooms while teaching about Alaska’s Natural

ship strengthens over time, we remain focused and look forward to many years of conscientiously operating in this land that we love. Anna Atchison is external affairs manager for Kinross Fort Knox.

Resources. In 2016 ARE recognized Lauri Werdin from Lathrop High School and for 2018 will be recognizing Rob Kinder from Woodriver Elementary with the ARE Annual Teacher of the Year Award. ARE is again this year working with Hutchison High School students, who will be attending the spring Alaska Mining Association convention. Ella Ede is executive director of Alaska Resource Education.


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ALASKA MINERS ASSOCIATION

Local team continues to improve Livengood project economics $6.3 million in 2017, which included additional engineering to advance the recommendations from the pre-feasibility study. The primary focus of the 2017 work plan was to improve the detail in the geologic model, update and evaluate opportunities to improve the resource block model, and conduct additional metallurgical test work to potentially improve gold recovery. Additional metallurgical test work will be conducted in 2018. The project strengths remain: size of the gold resource, strong leverage to the price of gold, a great location and jurisdiction, and the support of a strong team. Ultimately, the company believes the Livengood Gold Project has the potential to be a successful Alaska gold mine for decades to come.

By Denise Herzog ENVIRONMENTAL MANAGER

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airbanks has had a connection with the once-bustling mining town of Livengood since the two communities’ beginnings in the early 1900s. Tower Hill Mines Inc. put together an Alaska Development Team in 2010 to advance the Livengood Gold Project. Composed of local professionals with Fairbanks roots and mining backgrounds, the team has been working, and is continuing this year, with a focus on improving the project economics through technical studies on the geology and gold metallurgy. These programs are an outgrowth of the 2017 pre-feasibility study (PFS) that demonstrated substantially lower capital and operating costs as compared to the 2013 feasibility study. With its gold resource of over 11 million ounces, the Livengood Gold Project is one of the largest gold deposits in North America. Given its location, land status in the historic mining district, and experienced team, the project has a good opportunity for development when the market conditions and project economics support advancement. “We want to design the best project possible for this gold deposit and prepare for potential permitting. Livengood has the potential to be a successful mine for many years, but the gold market and project economics will dictate the timing of development”, said Karl Hanneman, CEO.

A rich history

Gold was first discovered in the gravels of Livengood Creek in 1914 (Brooks, 1916) and led to the founding of the town of Livengood. Subsequently, more than 500,000 ounces of placer gold have been produced. From 1914 through the 1990s, the primary focus was placer operations, which continue to the present day. Historically, prospectors considered Money Knob and the associated ridgeline the source of the placer gold. Dozer-trench prospecting in the 1950s was carried out for lode type mineralization in the vicinity of Money Knob. However, no significant lode production has occurred to date. Since the 1970s, the property has been prospected and

Environmental stewardship is a key component of the Livengood project. PHOTO COURTESY OF TOWER HILL MINES

explored by several companies, including Homestake, Occidental Petroleum, AMAX, Placer Dome, Cambior Inc., and AngloGold Ashanti (USA) Exploration Inc. (AGA). In 2006, ITH acquired the Livengood Gold Project from AGA. During the 1930s, Livengood petitioned the territorial road commission of Alaska to build a road to its mining district. The town’s efforts succeeded, and now the Elliott Highway is a paved year-round road adjacent to the project. It connects to the Dalton Highway at Livengood, continuing north to Prudhoe Bay and west to Minto and Manley. A number of Fairbanks families today still claim their roots in Livengood.

Improved gold project economics Engineering improvements to the Livengood Gold Project have Tower Hill Mines officials pleased with progress and continuing work to optimize the project and prepare it for potential permitting. In April 2017, the company filed a pre-feasibility study (2017 PFS), “April 10, 2017 NI 43-101,” that evaluated

what is the largest gold-only deposit in North America that is not wholly owned by a major or producer. The 2017 PFS demonstrated 34 percent lower capital cost and 28 percent lower process-operating costs as compared with the previous September 2013 study. Highlights of the 2017 PFS include: • Project size optimized at 52,600 tons/day • Lowered CAPEX by $950 million (34 percent) to $1.84 billion • Reduced process OPEX by $2.97/ ton (28 percent) to $7.48/ton • 6.8 million ounces of gold produced over 23 years • Production costs before capital, $878/oz • All-in sustaining costs (AISC), $976/oz • All-in costs (AIC) down more than $250/oz to $1,247/oz “We will continue to look for opportunities to improve the project as we advance towards permitting,” said Hanneman. Hanneman was formerly chief operating officer and took over as CEO when Tom Irwin retired and was subsequently elected to the company’s board of directors in 2017. The company spent approximately

Environmental stewardship

Environmental baseline studies were initiated as an early counterpart to Tower Hill Mines exploration work that began in 2006. Like the drilling program that quickly expanded as the resource grew in size, the environmental program quickly evolved into a multifaceted program that has included the characterization of wetlands, fish and aquatics, groundwater, surface water, meteorology, noise, cultural resources, geochemistry, and wildlife. The Alaska staff is committed to sound scientific data collection, stakeholder participation, and project designs that will minimize and mitigate the potential impacts on the present and future environment. One of the most important aspects of their environmental planning is understanding water flow and water quality. ITH has been conducting hydrological studies in the project area for several years. This data is being applied to water balance models that will help design mining facilities that can withstand severe storm events during construction, mining, and closure. The tailings management facility is being designed to safely contain tailings and process water through the use of a geosynthetic liner that will help protect the local groundwater and surface water quality.


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Pogo Mine a good neighbor to Interior Alaska communities By Lindsey Spinelli and Wendie MacNaughton

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ogo Mine sits off the beaten path, but the local gold mine makes a big impact in Interior Alaska. Pogo Mine safely produces gold 365 days a year and has been doing so for more than a decade. The mine has poured more than 3 million ounces of gold since 2006. To operate successfully and safely, Pogo employs a large team of local experts. Many of these employees are lifelong Alaskans, invested in our communities and environment. They take their responsibility of keeping each other and the environment safe very seriously. Pogo Mine is an economic engine, creating hundreds of jobs and providing millions of dollars in economic benefits in the region. On average, Pogo employs 320 people per year, each with an average salary of $131,234, not including benefits. Many of these employees and their families are your friends, neighbors and children’s classmates. Close to 70 percent of Pogo’s employees were living in Interior Alaska before being hired by the mining company. They are deeply invested in the well-being and

health of their communities and take their love of Alaska to work with them every day. The mine’s economic impact extends beyond its own employees. Pogo spends millions buying goods from local businesses and hiring local contractors. In 2016, Pogo spent $132 million with 240 Alaska-based suppliers and services. This magnitude of spending created more than 500 sustainable jobs for Alaskans.

And Pogo’s economic footprint extends even beyond the communities of Fairbanks and Delta Junction. Between 2009 and 2016, Pogo paid $61 million in taxes to the state of Alaska. The gold that is produced at Pogo boosts the economy throughout the entire state of Alaska. Being a good neighbor is a commitment Pogo takes seriously. Giving back to local communities is a big part of that

commitment. Over 10 years, Pogo Mine has contributed $6 million in cash to a number of charitable organizations, including nonprofits, universities and youth programs. Between 2006 and 2016, Pogo donated $3.3 million to organizations serving the Fairbanks area and $2.5 million to organizations serving Delta Junction. The mine is committed to strengthening not only Alaska but also the future of its stu-

dents and the mining industry as well. Pogo has contributed $2 million to the Mining Engineering Research Endowment at the University of Alaska Fairbanks. With advances in employee and environmental safety, mining is an industry that will be in Alaska for years to come. Pogo invests in educational pathways that will lead to prosperous careers for Alaska students and the continued success of the mining industry. Pogo’s commitment to supporting Alaskans isn’t limited to cash donations. Employees make a difference in their communities every day. They can often be seen volunteering for causes they care about. Pogo’s employees and their families participate in fundraisers, coach local sports teams and are members of the local PTA. The future looks bright for Pogo Mine. The company plans to invest $21 million in 2018 on exploration and definition drilling and is optimistic about the potential. Pogo Mine isn’t just any gold mine; it’s an economic engine for all of Alaska and a good neighbor to nearby communities. With its culture of employee and environmental safety, the mine will continue to prosper for years to come.

End of Donlin Gold permitting process may be in sight Courtesy of Donlin Gold

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fter nearly six years, the permitting process for Donlin Gold is approaching the end. As one of the world’s largest known undeveloped gold deposits, the proposed mine holds a gold deposit estimated at more than 33 million ounces. If developed, the open-pit mine would provide jobs and economic opportunities in the Yukon-Kuskokwim region of Southwest Alaska for 27-plus years. Donlin Gold is located 10 miles north of

the village of Crooked Creek. Calista Corp. owns the subsurface land and mineral rights while The Kuskokwim Corp. owns the surface land. The project will benefit the corporations’ shareholder, residents of the region and, through sections 7(i) and 7(j) of the Alaska Native Claims Settlement Act, Alaska Natives throughout the state. The U.S. Army Corps of Engineers, the lead federal permitting agency, is expected to issue the final environmental impact statement in the coming weeks and a record of decision later in the summer.

Other major state and federal permits and authorizations continue to advance and are scheduled to be finalized concurrently with the Corps’ record of decision or by year’s end. Donlin Gold is equally owned by Barrick Gold U.S. and Novagold. The two companies will decide whether to move the project forward once the record of decision and major permits are issued, optimization work is completed and updated studies advanced. As currently designed, the project would be a conventional open-pit oper-

ation with a waste rock facility, contact water ponds, a fully lined tailings storage facility, fuel storage facility, ore stockpile, plant site, airport and camp. A 313-mile, buried natural gas pipeline would deliver gas from the west side of Cook Inlet to the mine site to fuel the power plant. Plans also call for barge terminal facilities in Bethel and a new barge landing near Jungjuk Creek on the Kuskokwim River, connected to the mine via a 33-mile access road. Additional information on the project can be found at donlingold.com.


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Alaska’s mining education tax credit will sunset if legislators don’t act By Karen Matthias COUNCIL OF ALASKA PRODUCERS

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hen you hear “tax credit� you probably think of the oil exploration tax credits and the state’s liability to many of the smaller oil exploration companies. Alaska’s Education Tax Credit program couldn’t be more different. First established in 1987 to encourage private businesses to make donations to support schools in Alaska, the Education Tax Credit is non-transferrable and can be used by any business that pays corporate tax or a mining, fishing, oil, or insurance tax. As the Alaska Department of Revenue says on its website, “The Education Tax Credit program is a win-win for the children and businesses in Alaska.� But without legislative action this year, the program will go away. The mining industry has welcomed the opportunity to partner with the State of Alaska and provide funding directly to Alaska’s higher education projects and programs that support and enhance the mining industry. Between 2011 and 2017, mining companies have invested $19.6 million through this program to benefit Alaska students. UAF Cooperative Extension Services runs the Mining and Petroleum Training Services (MAPTS) in Anchorage, Soldotna and Juneau. MAPTS and the University of Alaska Southeast Pathways to Mining program provide educational opportunities and training that lead directly to good jobs in the industry.

The importance of these programs is underscored by a survey of Alaska’s mining industry that revealed considerable aging of skilled employees. For example, 47 percent of mechanics, 51 percent of mining materials engineers, and 65 percent of mining machine operators are 45 years of age or older. We need to train Alaska’s future workforce. Thanks to Sen. John Coghill and Rep. Chris Tuck this partnership with the State of Alaska doesn’t have to end. They have introduced bills (HB233 and SB116) to extend the program so it will continue to promote private investment in higher education in our state. This is essential to helping Alaskans learn the skills for jobs in mining and other industries. A healthy mining industry can be part of the solution to Alaska’s fiscal challenges. The Council of Alaska Producers and the Alaska Miners Association continue to urge legislators to develop a sustainable plan that encompasses reductions and efficiencies, use of the Permanent Fund earnings, and broadbased revenue measures. A sustainable plan includes adequate funding for services such as permitting that allow the private sector to invest, create jobs, and grow the economy. It also includes innovative ideas like the Education Tax Credit program to encourage private investment in the education system to give Alaskans the skills to succeed. Karen Matthias is the executive director of the Council of Alaska Producers

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Usibelli Coal Mine partners with Denali Borough School District Courtesy of Usibelli Coal Mine

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nterning in high school can be a fantastic way to gain realworld experience for students. Usibelli Coal Mine’s internship program with the Denali Borough School District started in 2011 and provides high school juniors and seniors in the district the opportunity to shadow mine employees in the maintenance, engineering or lab departments for a few hours each week. “These internships provide students with hands-on learning opportunities that can help them decide on the path they’d like to take after school,� said Justin Seavey, senior mining engineer for Usibelli Coal Mine. “Our internship programs include welding and equipment maintenance, coal quality sampling, sur-

veying with traditional and modern drone techniques, engineering field support and reclamation.� The program provides a valuable introduction to potential Caleb Graham, career options a junior at Triand is aimed Valley School, at helping stuinterns with dents evaluate Usibelli. their future education and career paths. Each semester, typically one or two students are accepted into the internship program. Usibelli Coal Mine is the largest employer in the Denali Borough.


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Chatanika dredge bucket returned to its NJ roots By Jane Haigh and Patricia Piersol CHATANIKA GOLD DREDGE COMPANY

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n 1997 Patty and I saw a classified ad in the Fairbanks newspaper: The Chatanika Gold Dredge was for sale. It was the quintessential impulse purchase. We bought it to preserve it and so we and others could continue to enjoy its magnificent presence amid an eerie and beautiful landscape of discarded tailing piles. The dredge was one of 13 massive floating industrial gold digging plants operated by the Fairbanks Gold Company in the area around Fairbanks from 1928 until the last one shut down in 1964. It had been sitting idle for almost 40 years, an object of fascination and a draw for many visitors. Then, on Aug. 3, 2013, in a tragic and still unexplained accident, the Chatanika Gold Dredge burned. During the summer of 2015 our friend, history buff and jack-of-all trades, Bob Darling, enlisted world mining authority Gil Dobbs to rescue the buckets where they lay very exposed, and together they transported close to 100 of the buckets into town on a flat-bed trailer. At the same time Jim Sampson and the Pipe Line Training Center lent a forklift and friend John Brown and Patty unload-

ed each shipment of buckets and placed them in neat rows, looking much like an outdoor theater in Patty’s side yard. Bob noticed that they all had

the letters ‘TISCO’ and each one had a distinct number. What or who was TISCO? Bob began to try to find out. What he found was an essay by a

10-year old girl, Alexis, who won a mini-historian contest in High Bridge, New Jersey, in 2012. The essay was titled, “The Most Historic Place in My Town: Taylor Wharton Iron and Steel Company, High Bridge N.J.” Through Alexis’ essay we found out about the long and distinguished history of the foundry, which had developed and patented improved buckets and replaceable lip assemblies. Who knew? These massive Chatanika Gold Dredge buckets, weighing 2,500 pounds each, are the products of that progress. They were pinned together on the dredge in what is called the “line” or “ladder” with steel pins, each weighing 300 pounds. Each bucket was progressively numbered and stamped during manufacture. Patty reached out to High Bridge to see if we could find out more. Ultimately she was able to connect with Nancy Hunt, the Chair of the Cultural and Heritage Committee. We were surprised to hear that no one in the town had ever seen a bucket and ecstatic when we found out that the town was sponsoring a 275th Anniversary for TISCO in October of last year. Yes, the 275th! The celebration is only held each 25 years so, if we missed this one, we would miss them all! So we decided to offer a bucket and a pin to them for

the festival. All we had to do was figure out how to get them there in time for the festivities! Through the efforts of Fairbanksans, Bucket #103 arrived in time for the celebration. It was going home after more than 80 years, and as far as we know, it is now the only dredge bucket in New Jersey. It was in the town’s celebratory parade, on display in the square for the festival weekend and will be permanently installed at a prominent location in the near future. Instrumental in getting Bucket #103 to its New Jersey “birth place” was Chris Kennedy and Pogo Mine for arranging and purchasing transportation, Deryl Box and CMI, providing logistical support and Al Veazy and Lakloey, Inc. providing additional travel assistance. In the meantime, Patty has developed the “Dredge Bucket 101” short course. The history of the design and fabrication of the buckets for the gold dredges is as interesting and significant as that of the dredges themselves, but rarely known. The course, which is one of a kind, includes a history lesson, an examination of different bucket types and a walk among many of them. It will be offered during the auction Thursday night at the AMA banquet. Contact Patricia Peirsol, 907-4798668, pjpeirsol@gmail.com

MINExpo named 12th largest trade show in the US in 2016 In an annual ranking of the top 100 trade shows in the U.S., MINExpo INTERNATIONAL® 2016 was named the 12th largest trade show based on the 838,000 net square feet of exhibit space sold. “MINExpo is very excited to be not only the premier show for global mining industry but one of the top shows

held in the U.S.,” said Moya Phelleps, NMA’s senior vice president of member services. The Consumer Electronic show was the largest, with more than 2,476,000 net square feet of exhibit space. MINExpo INTERNATIONAL® is the only event of its kind provides access to the most advanced equip-

ment, products and services that have transformed modern mining and it offers a glimpse into the industry’s future. More than 1950 exhibitors from 37 countries brought the cutting-edge equipment, technology and ideas that will let mining companies maximize productivity, reduce life cycle costs and reach the shared goal of zero harm.

Whether you attended the show or were unable to attend, you can catch all the highlights on the 2016 website (www.minexpo.com). MINExpo International 2020 is scheduled for September 28 – 30 in Las Vegas. Those interested in attending can sign up to receive information on the MINExpo website.


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