Juniors flock to Alaska for PGMs

Although most of the activity by junior companies in Alaska has been for gold, exploration for platinum group elements is decidedly on the upswing.

In the late 1990s, when the price of platinum and palladium skyrocketed, Alaska was neglected by junior exploration companies in favour of eastern Canada, Brazil, South Africa and elsewhere. But those same juniors are now recognizing that the state, despite its complex geology, hosts significant platinum-group potential.

In northwestern Alaska, Vancouver’s Quaterra Resources (QTA-V) has entered into an agreement with the Nana Regional Corporation, a native-owned company, for the exploration of mafic and ultramafic rocks of Asik Mountain, 35 miles north of Kotzebue.

At this point, exploration consists of mapping and sampling. Results from the program are expected soon; earlier samples showed anomalous platinum, palladium and copper values.

The experience with Quaterra is symptomatic of platinum group exploration in Alaska. The push to begin this kind of exploration came late to Alaska, while exploration in Ontario and elsewhere in Canada began as early as a year ago.

Northstar Exploration is also a newcomer in the platinum-palladium game. The wholly owned arm of Hawk Industries (HAWK-Q) began exploration at the Dime Creek, Farewell, Sweepstakes and Bear Creek properties in the central Alaska area late in the summer season. Pan concentrate samples from Dime Creek returned elevated platinum and gold values. The company plans to conduct a deep-soil survey and magnetic survey for next year.

Spokane-based Latitude Minerals (LTU-V) is also exploring the Tonsina property, northeast of Valdez in southern Alaska. Exploration on the 4,400-acre property was limited during the year, though the company plans to return next year with a US$250,000 program of mapping, sampling and geophysics to look for drill targets.

The claims were staked on a layered mafic intrusion, measuring 10 by 3 miles. The company is looking for chromite layers similar to the UG-2 chromite layer in the Bushveld Complex in South Africa. The stratigraphy at Tonsina consists of dunite layers in the southern part of the complex, grading up to pyroxenites and norites.

In an agreement with the local Ahtna tribe, International Freegold Mineral Development (ITF-V) acquired an option for land south and east of Latitude’s property. Elsewhere in Alaska, the junior has 105 claims covering 2,100 acres at the Union Bay prospect, 35 miles northwest of Ketchikan in southeastern Alaska.

Santoy Resources (SAN-V) recently acquired the Salt Chuck prospect from Stealth Ventures in exchange for 250,000 shares. Salt Chuck consists of 1,590 acres on Prince of Wales Island, including a mine that produces 300,000 tons per year of 0.95% copper plus 2 grams palladium, 1.1 grams gold and 5.7 grams silver per tonne. Mineralization is hosted within a large mafic-ultramafic complex, measuring 5 miles by 1 mile and consisting of a layered gabbro sequence intruded by pyroxenite bodies.

Meanwhile, privately held M.A.N. Resources has been exploring two platinum group properties along the southern flank of the Alaska Range, in the central part of the state. The smaller of the two — the Tangle Lake property — is thought to have the most potential.

To date, the Seattle, Wash.-based company has spent US$3.6 million on the project, including aeromagnetic surveys, and drilling at Tangle Lake is planned for next year. The company hopes some day to go public.

Nearby, Fort Knox Gold (FNX-T) is evaluating the Nikolai property, as well as earning an interest in nickel-copper projects from privately owned American Copper & Nickel.

While all this is going on, relatively little is happening at Alaska’s oldest known platinum property, Goodnews Bay, in the southwestern part of the state. The property is still held by privately owned Corral Creek, based in Denver, and the native corporation Calista.

Although PGMs seem to be the flavour of the month, gold exploration in the Pogo area remains intense. At this point, the market is watching for drill results from Western Keltic Mines (WKM-V), which was funded by Barrick Gold (ABX-N). Hyder Gold (HGI-V) is also expected to post results soon.

Near Pogo, NovaGold Resources (NRI-T) is evaluating the Caribou property. The company also owns several properties in the Nome area of northern Alaska, including the Rock Creek property. In the Yukon, NovaGold owns the Sprogge gold property.