Kennicott Minemric.jogmec.go.jp/wp-content/uploads/2006/11/AK2_Resource_Ovrvw.pdfAlaska Mining Industry Defined by Three Major Periods 1. From late 1800s until 1940s - mining was the

Alaska Resource OverviewAlaska Resource Overview

Kennicott Mine

JOGMEC PresentationTokyo, Japan

November 7, 2006

Tom Crafford, Mining [email protected] Department of Natural ResourcesOffice of Project Management and Permitting

mailto:[email protected]

Alaska has a long mining historyAlaska has a long mining historyHISTORICAL DATES

1880 - Joe Juneau and Richard Harris discover gold at Juneau1886 - Treadwell Mines in Juneau are the largest underground gold mines in the world1896 - Klondike Gold Rush begins in Yukon Territory1898 – Gold discovered at Nome1900 – Copper discovered at Kennicott

1911 – 1938 Kennicott copper mine in operation1902 – Gold discovered on Pedro Creek near Fairbanks

JOGMEC – November 7, 2006

Alaska Mining Industry Defined by Three Major Periods

1. From late 1800s until 1940s - mining was the largest industry in Alaska and provided the most jobs.

2. From 1940s until 1989 - effectively no hardrock mining in Alaska.

3. From 1989 to Present – Red Dog & Greens Creek began operation in 1989 and there’s been continued growth of minerals development ever since.


Historically, Gold has been focus of Historically, Gold has been focus of most mining in Alaskamost mining in Alaska

Much of recent gold emphasis has been on the Much of recent gold emphasis has been on the ““TintinaTintina Gold BeltGold Belt””But, as following map and placer districts But, as following map and placer districts show, gold occurs in many other areas in show, gold occurs in many other areas in AlaskaAlaska


TINTINA GOLDBELT

Fort Knox & True North Pogo

Donlin Creek

Nyac

Nixon ForkRock Creek Big Hurrah

Lucky Shot KensingtonAJ/Treadwell

In Development

Producing Mine

Major Prospect

But,But,There is more than just Gold in AlaskaThere is more than just Gold in Alaska


TINTINA GOLDBELT

Goodnews Bay/Red Mountain

MAN

Brady Glacier

Salt Chuck

Union Bay

Duke Island

Red Mountain

Chip-Loy

Ni + Cu + Cr + PGE

TINTINA GOLDBELT

Red Dog

Brooks Range Lead-Zinc Belt

Niblack

Greens Creek

Denali

Kennicott

Prince William SoundVMS deposits

Arctic Ambler VMS Belt

MAJOR STRATIFORM BASE METAL + Au, Ag

OCCURRENCES

TINTINA GOLDBELT

Quartz Hill

Pebble

Pyramid

“Porphyry” Cu + Mo + Au

And then, there is coalAnd then, there is coal(a lot!)(a lot!)


Coal Resources and ReservesCoal Resources and Reserves

Eagle-Circle

Rampart

Nulato

Matanuska

Alaska Coal Resources and ReservesAlaska Coal Resources and Reserves(all (all tonnestonnes x 1,000,000)x 1,000,000)

2277,80013,320Nenana Province

1,700154,8703,716,210Totals

05208,660All Other Areas

1,40010,55064,230Cook Inlet-Susitna Basin

73136,0003,630,000Northern Alaska Basin

Measured Reserves

Identified Resources

Hypothetical ResourcesLocation


SubbituminousSubbituminous C C Approximately 40% of AlaskaApproximately 40% of Alaska’’s coal resourcess coal resources

Nenana and Cook Inlet BasinsNenana and Cook Inlet BasinsClean Low Rank CoalClean Low Rank Coal

7,800 Btu/lb7,800 Btu/lbSulfur 0.17%Sulfur 0.17%Moisture 26%Moisture 26%Volatile Matter 36%Volatile Matter 36%Fixed C 29%Fixed C 29%Ash 9%Ash 9%


Bituminous High Rank CoalBituminous High Rank CoalApproximately 55% of Total ResourceApproximately 55% of Total Resource

Location Btu/lb Sulfur MoistureVolatile Matter Fixed C Ash

Cape Beaufort

9,100 to 12,700 0.2 - 0.4% 2.5 - 7% 22 - 33% 35 - 56% 8 – 27%

DeadfallSyncline

10,900 to13,200 0.2 - 0.3% 2.5 - 8% 22 - 36% 35 – 56% 5.5 – 23%

Matanuska10,400 to 13,200 0.2 - 0.6% 2.5 - 9% 32 - 45% 38 - 51% 4 – 24%


USIBELLIHEALY MINE

WESTERN ARCTICCOAL

Alaska Coal Projects andInfrastructure

Jarvis

Coal Mining Activities in AlaskaCoal Mining Activities in Alaska

Usibelli Coal Mining Operations is the only Usibelli Coal Mining Operations is the only active coal mining operation active coal mining operation 1,300,000 tons per year production1,300,000 tons per year productionMajority of production is for Alaska marketsMajority of production is for Alaska marketsShips 400,000 tons per year to South Korea Ships 400,000 tons per year to South Korea through Port of Sewardthrough Port of Seward


Usibelli Coal MineUsibelli Coal Mine((www.usibelli.comwww.usibelli.com))

• Continued Alaskan & Korean coal contracts

• Trial shipments of coal to power plants in Chile

• 1.41 million tons production in 2005

• 95 Employees• No “Lost-Time” Accidents since

1/27/04• Korean contract renewed for 3 yrs


http://www.usibelli.com/

USIBELLIHEALY MINE

WESTERN ARCTICCOAL

Alaska Coal Projects andInfrastructure

Jarvis

Chuitna Coal ProjectChuitna Coal Project((PacRimPacRim Coal)Coal)

ChuitnaChuitna Coal ProjectCoal ProjectA surface coal mining and export development located in the BeluA surface coal mining and export development located in the Beluga ga Coal Field, approximately 45 miles west of Anchorage. Coal Field, approximately 45 miles west of Anchorage. Ultra low sulfur, Ultra low sulfur, subbituminoussubbituminous coal resource, approximately 12 coal resource, approximately 12 miles from the coast of Cook Inlet. miles from the coast of Cook Inlet. Minimum 25Minimum 25--year mine life at approximately 12 million year mine life at approximately 12 million tonnestonnes/year /year based on proven reserves in one (LMUbased on proven reserves in one (LMU--1) of three mining areas in 1) of three mining areas in 20,571 acre coal lease area. 20,571 acre coal lease area. The proposed Project includes: The proposed Project includes:

a surface coal mine and support facilities. a surface coal mine and support facilities. mine access road, coal transport conveyor, personnel housing; mine access road, coal transport conveyor, personnel housing; air strip; air strip; a logistic center, and coal export terminal (Ladd Landing a logistic center, and coal export terminal (Ladd Landing Development). The coal export terminal would include a 10,000Development). The coal export terminal would include a 10,000--foot trestle constructed into Cook Inlet for the purpose of loadfoot trestle constructed into Cook Inlet for the purpose of loading ing oceanocean--going coal transport ships. going coal transport ships.


ChuitnaChuitna Coal ProjectCoal Project

Project is currently in permitting Project is currently in permitting ––Supplemental EIS is in preparationSupplemental EIS is in preparationPermitting expected to be completed in 2008Permitting expected to be completed in 2008Production anticipated in 2010Production anticipated in 2010


Western Western ArcticArctic Coal Project Coal Project Arctic Slope Regional Corporation and Arctic Slope Regional Corporation and bhpbhpbillitonbilliton

Underground test mine; circa 1994; coal tested in local villages

ASRC recently (Aug ’06) announced 5 yr. exploration agreement with BHP-Billiton


Western Arctic Coal ProjectWestern Arctic Coal Project

Located in the Western Arctic Coalfield of northwestern Located in the Western Arctic Coalfield of northwestern Alaska, approximately 40 miles south of Point Lay.Alaska, approximately 40 miles south of Point Lay.

At Deadfall Syncline the CretaceousAt Deadfall Syncline the Cretaceous--age age NanushukNanushuk Group Group Contains four coal seams ranging from 5Contains four coal seams ranging from 5--12 feet in 12 feet in thickness that dip at 14 to 30 degrees. thickness that dip at 14 to 30 degrees.

The bituminous grade coal has a measured resource of 45 The bituminous grade coal has a measured resource of 45 million tons and identified resource of 390 million tons that million tons and identified resource of 390 million tons that averages 12,900 BTUs.averages 12,900 BTUs.


Location

• 650 miles northwest of Anchorage

• 500 miles northwest of Fairbanks

• 40 miles south of Pt. Lay•120 miles NNW of Pt. Hope• 90 miles north Red Dog

Mine•155 miles north of Red

Dog Port

Illustration courtesy of ASRCJOGMEC – November 7, 2006

Alaska Department of Commerce, Community and

Economic Development

Minerals information at:

www.dced.state.ak.us/oed/minerals/mining.htm


State and FederalInteragency

Minerals and Geology Information

at:

AKGeology.info


DOMO


Documents

Kennicott Minemric.jogmec.go.jp/wp-content/uploads/2006/11/AK2_Resource_Ovrvw.pdfAlaska Mining Industry Defined by Three Major Periods 1. From late 1800s until 1940s - mining was the