Mines on the Horizon: Three mining prospects move closer to potential operation.

• Author: Stricker, Julie
• Position: MINING

Alaska is home to world-class mineral resources, but developing them is a process that can take years, if not decades. And while there's a light shining at the end of the tunnel for three major development prospects, there's still a long, winding road ahead. However, with the right mine plan, investment, and timing, those mines could dramatically reshape the economy in parts of rural Alaska for decades.

"Mining continues to have a bright future in Alaska, with responsible mining and development occurring all around our great state," says Marleanna Hall, executive director of the Resource Development Council for Alaska.

The three world-class prospects are the Donlin Gold prospect in Southwest Alaska, the Upper Kobuk Mineral Project in Northwest Alaska, and Pebble in the Bristol Bay region of the state. All three are near or in the permitting phase, a multi-year process in which various state and federal permits must be approved before construction and mining can begin.

Donlin Gold

For each, however, the biggest hurdle is a lack of infrastructure. There are no roads, ports, or utilities within hundreds of miles of the potential mines. In fact, Barrick Gold and NovaGold Resources, which own Donlin Gold, say they haven't reached a decision on whether to build the mine, despite receiving major permits in August 2018, including a joint Bureau of Land Management and US Army Corps of Engineers Federal Record of Decision.

"The issuance of the Donlin Gold ROD and key project permits is a significant milestone for both partners," says Rob Krcmarov, executive vice president of exploration and growth for Barrick. "Now, with key permits in hand, we can concentrate on further exploring ways of reducing initial capital and unlocking the value of this asset for all of our partners, in keeping with our deep commitment to community engagement and environmental stewardship."

Donlin is one of the richest undeveloped gold prospects in the world with 39 million ounces of gold grading to 2.24 grams per tonne, according to Barrick. It is expected to produce 1.1 million ounces of gold annually over its twenty-seven year lifespan if and when production ramps up. Already, Donlin Gold has spent twenty years conducting environmental studies and developing engineering plans for the site.

The permit announcement was a welcome step forward, says Hall.

"As with all projects in Alaska, [Resource Development Council] advocates for a fair and timely, science-based permitting...