glo American explained their decision to withdraw from the project as part of a corporate move to prioritize its advanced-stage investments in projects with the highest value and lowest risks. Anglo American has invested approximately $541 million in exploration expenses since it entered into the project. When added to Northern Dynasty’s initial $180 million contribution, investments in the project total $680 million, not counting that portion of the $80 million 2013 budget approved earlier in the year. This work included over one million feet of drilling in more than 1,000 drill holes since the deposit was discovered in 1988! Earlier in 2013 the partners had released economics and employment estimates indicating that during the 5-year construction period of the mining facility, the project would employ 2,525 people directly and supply an additional 925 indirect jobs in Alaska. In the Lower 48 states, the mine would employ an additional 6,250 indirect jobs. During the first 30 years of mine life, the operation would employ 915 people directly and an additional 1,175 indirect jobs in Alaska. During the same 30-year period in the Lower 48 states, the mine would employ an additional 305 people directly and an additional 6,070 indirect jobs. Average annual employee salaries estimated during construction and the first 30 years of operations average $63,500 and $72,500, respectively, which equates to wages that are 24% and 42%, respectively, above the Alaskan average annual income. It is estimated that 75% of the mine-based jobs would be held by Alaskan residents, generating some $400 million per year in contributions to the Alaskan economy during construction and $1.14 to $1.43 billion per year in contributions to the Alaska economy during operations. During the 5-year construction period the project would pay the State of Alaska $27 million per year in taxes and royalties. During the first 30 years of mine operations, the project would pay the State of Alaska $136 to $180 million per year in taxes and royalties. Federal government revenue generated in Alaska would average $54 per year during the 5-year construction period and $164 to $218 million per year during the first 30 years of operations. Estimated annual tax receipts to 132
the Lake and Peninsula Borough would range from $29 to $33 million per year the first 30 years of mine operations compared to the commercial fishing industry’s tax contributions of $1.5 to $2 per year. During the first 30 years of mine operations, the mine would churn out 150,000 to 300,000 metric tonnes of copper, 10 to 40 million pounds of molybdenum, 400,000 to 900,000 ounces of gold, 1.25 to 2.25 million ounces of silver, and commercially significant amounts of palladium and rhenium. This 30-year production schedule would consume only 17% of the Pebble deposit’s known resources, indicating the mine could be a part of Alaska’s economy for more than 100 years. Last October TNR Gold Corp. announced results from a 3-hole, 814 meter drilling program at its Shotgun gold project. Significant results include 242.2 meters grading 1.25 gpt gold in hole SR12-56, 209 meters grading 1.02 gpt gold in hole SR12-57, and 83 meters averaging 0.82 grams of gold per in hole SR12-58. Geophysical surveys indicate a correlation between resistivity and chargeability results that suggest mineralized zones continue to depth and along strike. The company also announced completion of an industry compliant resource estimate that included inferred mineral resource of 20,734,313 tonnes grading 1.06 gpt gold for a total of 705,960 ounces gold using a 0.5 gpt gold cut-off. This mineral resource estimate is based on 34 diamond drill holes totaling 4,932.3 meters. The mineralization at Shotgun Ridge crops out at surface on a topographic high point and is only defined to a vertical depth of 150 meters. Millrock Resources, Inc. announced that it had entered into an exploration agreement with Bristol Bay Native Corporation on approximately 650,000 hectares of land containing at least three known porphyry copper occurrences, Kawisgag, Mallard Duck Bay, and Bee Creek. At the drill-ready Kawisgag prospect there are two main centers of mineralization and alteration which locally contain disseminated and vein chalcopyrite, molybdenite, and pyrite at surface. The undrilled Mallard Duck Bay prospect is a zone of hydrothermal
Alaska Business Monthly | November 2013
alteration covering a +8 square kilometer area. Mineralization at the Bee Creek prospect is hosted in hornfelsed sediments intruded by a multiphase diorite stock containing mineralized veins and disseminated chalcopyrite, molybdenite, and pyrite. Drilling by Metallica Resources, Inc. and Full Metal Minerals Ltd. intersected 118 meters averaging 0.31% copper, 0.009% molybdenum, and 0.126 parts per million gold. Under terms of the deal, Millrock must incur exploration expenditures of $5 million and pay $725,000 prior to December 31, 2019. A sliding-scale Net Smelter Return royalty ranging from 1% to 2% is payable on gold with a 1.0% Net Smelter Return royalty due on production of all other metals. Full Metal Minerals Ltd. announced 2012 drilling results and an industry compliant mineral resource at Pyramid copper-gold-molybdenum project. At a 0.21% copper equivalent cut-off, total contained copper in the inferred resource category is estimated to be 1,338,000,000 pounds of copper, 74,000,000 pounds of molybdenum, and 488,000 ounces of gold. At a 0.21% copper equivalent cutoff, this near surface supergene enrichment zone hosts 93.7 million tonnes averaging 0.40% copper, 0.019% molybdenum, and 0.092 gpt gold, or 0.55% copper equivalent. This equates to 823,000,000 pounds of copper, 40,000,000 pounds of molybdenum, and 277,000 ounces of gold. The hypogene zone hosts 79.1 million tonnes averaging 0.26% copper, 0.020% molybdenum, 0.083 gpt gold, or 0.45% copper equivalent at a 0.21% copper equivalent cutoff. This equates to 514,000,000 pounds of copper, 35,000,000 pounds of molybdenum, and 212,000 ounces of gold. The mineral resource estimate shows that the hypogene mineral resource remains open to depth and along strike in most areas, and the higher grade supergene enriched mineralization, dominated by chalcocite and local covellite, is also open for expansion. The supergene blanket has a variable depth, extending to below 250 meters surface in some areas.
Interior Alaska
Kinross Gold announced year end 2012 results and first-half 2013 producwww.akbizmag.com