Chignik area mining exploration: Millrock and BBNC partner in search for copper and gold.

AuthorJoehnk, Jessa S.
PositionSPECIAL SECTION: Mining

The Chignik area exemplifies remote rural Alaska: it is difficult to reach, has a very small population, and is still completely wild. The people there survive mostly on subsistence fishing, with commercial fishing and fishing tours being the basis of their economic life. It is the home of some of the earliest canneries in Alaska, and salmon processing still takes place in the area. But fishing may not be the only resource of interest there.

Mining is one of the biggest industries in Alaska and has been for some time. There are projects ongoing in Alaska, and new ones are always exciting prospects for the area. One of these newer projects getting attention is the initial exploration being done in the Chignik area of the Alaska Peninsula, which has had only occasional exploration due to its rough weather. Chignik means "big wind" in Alutiiq, referencing the huge coastal storms that occur there, sweeping through the land as well. And that isn't the only complication for exploration--the land is owned by several Alaska Native corporations, all of which must agree to the exploration. Despite the odds, agreements were made, and initial exploration has been ongoing for a few years now.

Promising Exploration Leads to Joint Venture

Millrock Resources, Inc. and Bristol Bay Native Corporation (BBNC) entered into their exploration and option to lease agreement back in May 2013, searching for copper and gold occurrences in the Chignik area. The agreement covers an area of about 360,000 acres, half the size of Rhode Island, and is broken into three basic areas: The Kawisgag prospect, the Mallard Duck Bay prospect, and Bee Creek (now Dry Creek) prospect. The Dry Creek prospect had been explored by Bear Creek Mining in 1976, when they drilled five holes. It then went unexplored for several decades, until 2005 and 2006 when Metallica Resources, Inc. and Full Metal Minerals Limited surveyed and drilled two additional holes. The Kawisgag and Mallard Duck Bay prospects had been sampled and surveyed in the past, but holes had never been drilled to see if there is anything under the surface. Ultimately, the entire area had been explored only lightly due to weather and topography issues.

In 2014, funding for surveying was provided by First Quantum Minerals Limited with the chance to enter into an Option to Joint Venture Agreement with Millrock. Gregory A. Beischer, president and CEO of Millrock, says, "First Quantum came on board, and last year they funded the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT