The Alaska mineral industry in 2005: the year 2005 has been very busy for all segments of the industry and with metal prices at current levels, the future looks bright.

• Author: Borell, Steve
• Position: 2005 Mining Special Section

Strong metal prices continue, especially for gold, and these prices continue to stimulate the mineral industry in Alaska. The improved prices of gold, silver, lead, copper, platinum, nickel, uranium and zinc are being felt. Mines already in operation as well as projects nearing development and grassroots exploration are all benefiting. At the same time, increases in the cost of fuel and steel are having an adverse impact.

There are now two large mines in construction. The Pogo underground gold mine, located about 40 miles northeast of Delta Junction, continues construction with more than 500 mine and contractor employees on site. Work completed thus far includes a 3,000-foot airstrip, a 42-mile access road, the water treatment plant and the camp housing. The mill building is complete and equipment is being installed and other facilities are under construction. Underground development work began in January and work is in progress driving two declines into the ore body. Construction will continue into 2006. Once the mine goes into operation, it will employ 250 full-time workers for at least 10 years.

The second mine now under construction is the Kensington underground gold mine located on the north side of Berners Bay, 30 miles north of Juneau. Construction began in July with work now in progress on the road, mill and administration building foundations, and a temporary camp. Startup is scheduled for the first quarter of 2007 with 150 mine employees during the first year of operation.

Two other smaller projects are moving toward construction. The Nixon Fork underground gold mine near McGrath is awaiting permits so the existing mine and mill can be refurbished. This work should start in late 2005 or early 2006. The Rock Creek/Big

Hurrah near Nome will be an openpit gold mine. A bankable feasibility study is now being developed for the project and it should be completed by late 2005. In-fill drilling, baseline data collection and permit preparation are in process.

At the Donlin Creek project, this summer's work included in-fill drilling, continued baseline data collection, preliminary design and planning for this large open-pit gold mine. The project will require several more years for permitting and detailed design before construction can begin. The single greatest challenge is the 60-80 megawatt electrical power supply that will be required. A port on the Kuskokwim River and a road connecting the port to the mine site also will be needed.

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