THE GLOBAL SEARCH FOR GOLD SPECIAL — Majors account for rise in Alaskan exploration

Gold exploration in Alaska has taken off in the past year, with activity spurred on by renewed work at the Donlin Creek gold deposit and development of the Fort Knox deposit.

Amax Gold (AU-N) anticipates startup at the latter by year-end. Pre-stripping of the deposit has been under way for almost a year, pre-commissioning of the 36,000-ton-per-day plant has begun, and the crushing system is being installed. In all, the project is about 80% complete. Amax expects to produce 350,000 oz. gold per year from the 4-million-oz. deposit.

Meanwhile, at Donlin Creek, Placer Dome (PDG-T) is preparing to drill throughout the winter. The property contains a known resource of 3.6 million oz. gold, with reserves estimated at 44.6 million tonnes grading 2.5 grams per tonne. Plans call for property expenditures of US$6 million in 1996, with five drill rigs and an 80-man camp envisaged.

In 1995, Placer acquired from Calista Native Corp. a 20-year lease for a 100%-interest in the property.

The major’s presence in the area, known as the Kuskokwim mineral belt, has sparked a flurry of claim-staking by numerous companies, including Cominco (CLT-T).

Elsewhere in the state, in the Ophir district, USMX (USMX-Q) has acquired permits to explore 13,380 acres. And to the north, near McGrath, USMX is putting the last touches on construction of the Illinois Creek mine. Building frames are erected, the processing plant is being installed, and the liner on the valley-fill leach pad will soon be laid out. The mine is expected to produce 20,000 oz. gold in 1996 and 60,000 oz. per year for the following six years. The first gold pour is slated for October.

In June, at the Nixon Fork gold mine in west-central Alaska, Consolidated Nevada Goldfields (KNV-T) produced 35,000 oz. gold and 120,000 lb. copper. The underground deposit started up in October 1995, and plans call for exploration of the surrounding 51,000 acres.

Back in the Fairbanks district, exploration continues apace. At the Golden Summit property, drilling by International Freegold Mineral Development (ITF-V) has encountered low-grade gold in intrusive rocks at the Dolphin zone. Another rig is scheduled to test the Too Much Gold target, where previous work traced mineralization over a strike length of 1.3 km, with widths varying up to almost 200 metres.

Stone Boy

Northeast of Fairbanks, Tokyo-based Sumitomo is exploring a Fork Knox-like gold prospect known as Stone Boy.

That program is being carried out through Watts, Griffis & McOuat, which has also struck an agreement with the Doyon Native Corp. and a private group to explore more than 3 million acres of Doyon lands.

Silverado Mines (GOLDF-Q) has acquired the Whiskey Gulch gold property, which lies next to the True North deposit, where Newmont Gold (NGC-N) has been forging ahead with its own program. True North, a joint venture between Newmont and La Teko Resources (LAORF-Q), is estimated to host 2 million oz.

Southeast of Fairbanks, Coeur d’Alene Mines (CDE-N) is poised to begin developing its Kensington gold project near Juneau. The company has eliminated on-site cyanide use and the need for a tailings dam (tailings will be disposed of underground). Coeur anticipates permitting will be completed by year-end.