ALASKA!

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2009
ALASKA!
A Frontier for Mineral Exploration!
A presentation sponsored by the State of Alaska,
Department of Community and Economic Development
and the Alaska Miners Association
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Alaska

• Regulatory and political stability combined
  with a strong geologic endowment make Alaska a
  good place to invest!

Courtesy of Usibelli Coal Mines
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Why Alaska?

• Alaska is largely unexplored
• Its elephant country (Red Dog, Ft. Knox, Greens
  Creek, Donlin Creek, Pogo, Kensington, Pebble
  Copper, Kennicott)
• 298,600 sq. miles available to mineral entry - An
  area as large as Chile and 2.7X the size of
  Nevada
• Proactive administration

4
Alaska

• The Minerals Industry -
• A Global Perspective

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Alaska Bridging the Pacific
Alaska - 570,400 Sq Mi. (land) 86,050 (covered
by water)
Pop 670,000
Source www.geographic.org Used with permission
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Alaska in a Global Market

• Alaska is competitive in the worldwide economy
  against other countries and states because it
• has a diversity of mineral deposit types
• is safe from social and political upheaval
• has reasonable and transparent regulations
• is easily accessible from other markets
• has modest investment incentive programs

7
Worldwide Exploration Expenditures
12.6 Billion Worldwide 2008 US 7, 882 Million
2008 AK 39 of total US 2008 _at_ 347M AK 40
of total US 2007 _at_ 321M
Alaska
Alaska
Source Metals Economics Group
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Exploration Expenditures in Alaska by Year
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Alaska Mineral Industry Value

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Alaska

• A Place of Opportunities

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Alaska offers

• World-class mineral endowment
• A cooperative regulatory and legislative
  environment
• A stable tax structure with incentives
• A multitude of agencies and associations
  assisting in all aspects of mine development
• Strong educational resources and facilities

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Alaska is Accessible!

• Well served by commercial logistics operations
• Regularly scheduled air taxis and charter
  services to small communities and remote locales
• Alaska Marine Highway - connects 28 Alaskan
  cities with BC and Washington
• 14,300 miles of public roads
• Alaska Railroad - 470 Miles long
• Thousands of miles of navigable rivers with barge
  service

Photo Courtesy of Alaska Railroad Corp.
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New Infrastructure -Inroads to Resources
Existing Roadway Marine Highway TAPS - Oil
Pipeline Alaska Railroad
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Alaska Land Status
Over 250,000 sq. miles of State, Native, and
selected Federal lands available for mineral
entry. Status is well known, stable and has no
encumbrances
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ALASKA LAND STATUS
MILLIONS OF ACRES
52.3 Open, 47.7 Closed to mineral
exploration State of NV 70.8 M acres in size -
37.0 the size of AKs open area. Closed area
(174.4 M acres) gt the size of Texas (171.9 M
acres)
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Alaska Native Lands 44 Million Acres of
Opportunity

• Ahtna Inc
• Aleut Corp.
• Arctic Slope Regional Corp.
• Bering Straits Native Corp.
• Bristol Bay Native Corp.
• Calista Corp.
• Chugach Alaska Corp.
• Cook Inlet Region Inc.
• Doyon LTD.
• Koniag Inc.
• Nana Regional Corp.
• Sealaska Corp.

Donlin Creek Exploration Camp, Chulista Camp
Services
12 state-chartered, profit-oriented, regional
corporations mandated by ANSCA in 1971.
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Alaska Native Lands
Arctic Slope Regional Corp.
Alaska Native Corporations have clear ownership
and title to 44 million acres of land and are
willing to work with you to develop mineral
resources!
N.A.N.A. Regional Corp
Doyon LTD
Bering Straits Native Corp.
Cook Inlet Region Corp.
Ahtna Inc.
Calista Corp
Chugach Alaska Corp.
Bristol Bay Native Corp.
Sealaska Corp.
Koniag Inc.
The Aleut Corp.
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Alaska

• Geology The Bedrock of Successful Exploration

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TINTINA GOLD PROVINCEOverview
Adapted from Rubicon Minerals 2001
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Tintina Gold Province Worldwide Comparison
Tintina Gold Province gt25 Moz The Former CIS
370 Moz West Africa gt50 Moz

• Characterized by pluton related gold deposits
  broadly distributed in geologic time and space,
  Alaskas Tintina Gold Province is newly
  recognized and may generate even more ounces with
  additional exploration.

Photo courtesy of Novagold Resources
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Massive Sulfide Districts and Deposit Locations
Adapted from Rubicon Minerals 2001
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Juneau Gold Belt
Area of Detail
Adapted from Rubicon Minerals 2001
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Energy and Industrial Mineral Deposits
Northwest Arctic Coal
Red Dog Barium
Nome Sand and Gravel
Prudhoe Bay
Beluga and Chuitna Coal
Horn Mountain Zeolites
Wishbone Hill Coal
Lime Hills Barite
Chugach Zeolites
Yakutat
Calder Limestone
Adapted from Rubicon Minerals 2001
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Alaskas Industrial Minerals

• Gypsum 500,000t mined from Chichagof Island
  (1902-1926).
• Limestone Calder Mine in SE Alaska capable of
  producing 60,000t of high-grade whiting
  limestone annually.
• Asbestos Fortymile district contains chrysolite
  reserves of 55mt at 6.5 asbestos fiber.
• Barite 865,000t mined in the State. Millions of
  tons of barite mineralization delineated in
  Noatak SEDEX district.

Gypsum
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Alaskas Sand and Gravel

• 12.4 mt (72 million USD) in sand and gravel
  production in 2008 industry employed 277

• Novagold Resources Nome Project contains 2.255 M
  oz gold in 295 M CY of sand and gravel aggregate
  to be developed for southern markets.
• Large coastal gravel deposit being investigated
  near Yakutat by Sealaska Corp.

Gravel loading facility in Palmer Alaska
Railroad Corp.
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Alexander Platinum Belt
Area of Detail
Area Of Detail
Adapted from Rubicon Minerals 2001
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Interior Alaskan Platinum Districts
Adapted from Rubicon Minerals 2001
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Important Alaskan Discoveries

• 1880 - AJ-Treadwell (Au)
• 1900 - Nome gold placers
• 1902 - Fairbanks gold placers
• 1910 - Kennicott Mine (Cu)
• 1968 - Red Dog (Zn, Pb)
• 1974 - Quartz Hill (Mo)
• 1979 - Greens Creek (Ag, Zn, Pb, Au)
• 1984 - Fort Knox (Au)
• 1987 - Pebble Copper (Cu, Au, Mo)
• 1988 - Donlin Creek (Au)
• 1994 - Pogo (Au)
• 1995 - MAN (Pt, Pd)
• 2000 - Northway (Au)
• 2001 Shulin Lake (Diamonds)
• 2001 Kugarok (Ta)
• 2005 LMS, Whistler, Terra
• 2006 40 Mile (LWM)
• 2007 Livengood (Au)

Photo Courtesy of the Alaska Historical Society
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Alaska

• Producing Mines

The foundation of a 3 Billion U.S. Dollar
mineral industry!
Photo courtesy of Kinross Gold
Fort Knox (Fairbanks)
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Fort Knox Mine
Kinross Gold Corp. Owner/operator
Photos courtesy of Kinross Gold
Operating open-pit gold mine producing
approximately 330,000 ounces annually from the
Fort Knox deposit. Average combined grade is
0.023 ounces per ton. The mine employs over 400
people and has an annual economic impact of 175
million on the community of Fairbanks.
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Red Dog Mine
In a class by itself!
Photos Courtesy of Teck-Cominco
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Red Dog Mine
A joint venture between NANA Regional Corp. and
Teck-Cominco
The worlds largest zinc reserve (121 million
tons of ore). Worlds largest producer of zinc
concentrate. 8.60 million tons of ore mined in
2008 at an average grade of 20.1 zinc, 6.0
lead, and 2.3 ounces per ton silver. Mine
employed 375 regular full-time and 100 contractor
full-time in 2008 59 are NANA shareholders.
Total payroll 2008 50.0 Million.
Photos Courtesy of Teck-Cominco
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Greens Creek Mine
Owned by Hecla Mining
Volcanogenic massive sulfide deposit containing
economic amounts of silver, lead, zinc and
gold. Producing 800,000 tons of ore from
underground mine with an average grade of 17
ounces per ton silver. 3rd largest silver
producer in North America. Located in USFS land
exchange area of the Tongass National Forest.
Photos Courtesy of the Kennecott Greens Creek
Mining Company
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The Pogo Mine
Owned by Sumitomo Metal Mining Co. (85) and
Sumitomo Co. (15)
Photo Courtesy of Teck-Cominco

• Intrusive related, shear-hosted, gold-quartz
  vein system. Discovered in 1994
• Contains 3.6 million ounces of gold at 0.47
  ounce/ton
• Construction started in 2004, initial
  production 1st quarter of 2006.
• Mine life 10 years. Annual production
  450,000 oz.
• 449 employees in 2008
• 882,400 tons of ore mined in 2008 347,219 ounces
  of gold produced

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Usibelli Coal Mine
Founded in 1943 it is among the lowest sulfur
coal produced worldwide.

• 1.538 million tons of coal produced in 2008
• 3 million tons annual production capacity
• 145 million tons proven and probable reserves
  and 250 million tons of indicated resource.
• Dedicated to innovative technology and
  environmental excellence.
• 110 employees in 2008

Photos Courtesy of Usibelli Coal Mines Inc and
Chris Arend.
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Nixon Fork Mine

• Construction upgrading in 2006
• First production in 2007

• 2007 employment 69
• Reserves Resources
• Reserves 202,825 tons containing 133,730
  ounces
• Resources 276,200 tons, containing 161,700
  ounces.

• 2007 Production 6,775 oz gold, 3,740 oz silver,
  78,644 lbs copper
• 2008 No production
• Acquired by Fire River Gold Corp. in 2009
  production expected in 2010

Source Mystery Creek Resources
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Kensington Mine
Coeur Alaska -subsidiary of Coeur dAlene Mines

• Mesothermal lode gold deposit.
• Reserves 4.42 million tons _at_ 0.31 ounces/ton.
• Resources 4.3 million tons _at_ 0.20 ounces/ton.
• Operating mine would provide 250 full time
  workers and spend 13m annually on local
  purchases.
• Commission schedule - 2010
• Construction cost - 340 M
• Mining/milling rate - 1,150 tons/day.
• Expected production 140,000 oz/year.

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Rock Creek/Big Hurrah Projects
- Production goal 100,000 oz/year - Currently in
Care and Maintenance status - Big Hurrah (30 mi.
east) will mined concurrently with Rock Creek

• - Ownership NovaGold Resources
• - 2008 Capital Expenditures 124.8 M
• - 2008 Employment 190
• Forecast Production Employment 160

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Pebble Copper Project

• - Ownership Northern Dynasty
• - Employment forecast gt2,000 construction 1000
  production
• - Mining rate 200K tpd
• - Annual production gt1,200,000 ounces of gold
  (equivalent).
• - Capital requirements gt2,000M
• - Commission schedule 2014(?)
• Access Road to Cook Inlet
• 2008 Expenditures 140 M
• 2009 Budget 70 M

• - Commissioning will
• - provide local access
• - reduce local community power cost
• provide community needs funding through taxes
• provide rural resident employment
• create economic prosperity for SW Alaska
• contribute to the economic prosperity of Alaska

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PEBBLE RESERVES RESOURCES
November 2008 Pebble Reserves and Resources
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Niblack VMS Project
CBR Gold Corp.

• Located 30 Miles SW of Ketchikan
• Copper-Zinc-Gold-Silver rich Volcanogenic Massive
  Sulphide System
• Six major massive sulphide zones
• Thick sequence of variably deformed, felsic
  volcanic host rocks
• Stacked sulphide horizons
• Predictive geology showing excellent mine
  potential
• 25,000 foot underground drilling program
  scheduled to commence September 2009.

Trio/Broadgauge
Mammoth
Dama Zone
Lindsy/88
Historic Mine Site
Niblack Anchorage
major sulphide occurrence
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Alaska

• Current Projects and Other Deposits of Interest

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Location of Recent Exploration Projects
Boulder Ck (U)
Little Squaw (Au)
Arctic
Kougarok (Ta)
Livengood (Au)
Khotol (Ag)
Golden Summit, Gil (Au)
Rainy Pass, Terra Whistler
Richardson (Au)
Goodpaster (Au)
Shotgun (Au)
Lucky Shot (Au)
Golden Zone
Shulin (C)
Palmer (Au)
Woewodski Is.
Bokan Mt. (REE)
Niblack
Adapted from Rubicon Minerals 2001
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Other Deposits of Interest
Cleary Hill Mine (Au)
Red Devil (Hg)
Kennicott (Cu)
Valdez Creek
Port Moller
Chignik
Quartz Hill (Mo)
Bokan Mt. (REE)
Adapted from Rubicon Minerals 2001
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Significant Deposits

• Bokan Mtn (Rare Earth) - One of the largest REE
  deposits in N.A. Produced 100,000 tons of U3O8.
• Red Devil (Hg) - Significant war-time production.
• Quartz Hill (Mo) - Largest (Mo) resource in the
  world.
• Kennicott (Cu) - A company maker. Produced 4.9
  million tons of ore at an average grade of 13
  copper.
• Illinois Creek (Au) Very large historic placer
  gold producer.
• Nixon Fork (Au) - Recent high-grade underground
  producer being re-opened by Mystery Creek.
• Livengood (Au) - significant placer, being
  explored for hard rock source.
• Cleary Hill Mine (Au) - pre- and war time
  gold/tungsten hard rock production, being
  explored for extensions of resources.

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Placer Mining in Alaska

• Provided 313 full time jobs in the State in 2008
  (1,150 in 1994)
• 660,000 U.S. dollars spent in placer mine
  development in 2008.
• Produced 56,759 ounces in 2008 (95,000 ozs. in
  1998).
• Contributed 7.1 of Alaskas total 2008 gold
  production.

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Placer Gold Districts
Council
Placer gold production for select
districts Fairbanks 12 moz Cape Nome 5
moz Iditarod - 1.6 moz Council/Soloman 1.1
moz Circle (Central) 1.1 moz
Nome
Central
Iditarod
Fairbanks
Anchorage
Juneau
Adapted from Rubicon Minerals 2001
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Alaska

• State Government
• A New Proactive Administration

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New Republican Administration
Favorable Political Climate

• Governor Sean Parnell bringing experience,
  dedication, and collaboration to the process,
  Governor Parnells prior service includes terms
  in the Alaska House of Representatives and the
  Alaska State Senate as well as Lieutenant
  Governor.
• ADNR Commissioner Tom Irwin experienced and
  seasoned mineral engineer with an understanding
  of the workings of State and federal government.

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Alaska Working with You

• The State of Alaska offers assistance to mining
  companies in the coordinated permitting of major
  facilities through the Division of Mining, Land
  and Water Management and the Division of
  Governmental Coordination.
• The State can also actively participate in major
  development projects through the Alaska
  Industrial Development and Export Authority
  (AIDEA).

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Alaska Provides

• Exemption of minerals from in-situ taxation.
• Flexible work hours for miners.
• Reasonable State established water quality
  standards.
• A State bonding pool for reclamation activities.
• Reasonable rents and royalties on State owned
  lands
• An exploration expenditure incentive credit
  offsetting mining license or state corporate
  Income taxes.

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Alaska Mineral Policy Act of 1988
A constitutionally supported declaration by the
State of Alaska that reads Mineral exploration
and development be given fair and equitable
consideration in the multiple use management of
state land. Mineral development be encouraged
through reasonable and consistent non-duplicative
regulations. Mineral development be considered
in the development of the statewide
transportation and infrastructure systems.
Mineral development be encouraged through the
appropriate public information and education,
scientific research, technical studies and the
University of Alaska programs. Economic
development with respect to the state mineral
industry be encouraged with pacific rim nations.
Photo courtesy of S. Petsel
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Alaska Department of Natural Resources (ADNR)
Office of Project Management Permitting
DMLW- Division of Mining, Land and Water
Citizens Advisory Commission on Federal Areas
DGGS - Division of Geology and Geophysics
Working Together to Develop, Conserve and Enhance
Natural Resources for Present and Future Alaskans
DOGS - Division of Oil and Gas
Division of Parks and Outdoor Recreation
Division of Forestry
Division of Agriculture
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Division of Geological and Geophysical Surveys
(DGGS)

• Mission - Determine the potential of Alaskan land
  for production of metals, minerals, fuels and
  geothermal resources.
• Annually completing airborne geophysical surveys
  across the State for the public domain.
• Geologic studies underway and numerous
  publications, land status, and other related
  minerals info available online at
  http/www.akgeology.info
• Produces annual Mineral Industry Report.

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Airborne Geophysical/Geological Mineral Inventory
(DGGS)
A multi-year project to expand the knowledge base
of Alaskas mineral resources as a catalyst to
private sector investment.

• Products include
• 163,360-scale aeromagnetic and
  airborne-electromagnetic maps
• 163,360-scale bedrock and surficial geologic
  maps
• 163,360-Scale Land status map
• and various geological, geochemical and
  geophysical data compilations

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Inventory of DGGS Alaska Airborne
Geophysical/Geological Surveys
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DGGS offers both

• Regional airborne magnetic and resistivity data
  (USGS DGGS, 1970s or older data)
• Detailed airborne magnetic and resistivity data
  (DGGS 1994-? And BLM-DGGS 1997-?)

and
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DGGS - Regional Magnetics
Chulitna Area
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DGGS - Detailed Magnetics
Detailed data greatly enhances amount of detail
visible.
HIGH
LOW
Chulitna Area
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Alaska Mental Health Land Trust

• The Trust, administered by a unit of ADNR, was
  granted 1 million acres of Alaska lands to be
  used to generate revenues to cover the expenses
  of mental heath programs in Alaska.
• The Trust lands offer a wealth of natural
  resources including hard rock minerals, coal, oil
  and natural gas.

Resource Potential!
Photo Courtesy of the Alaska Division of Tourism
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Alaska Geologic Materials Center

• Alaskas State-run central repository for
  nonproprietary geologic materials available for
  examination by the public.
• Contains mineral deposit rock samples and drill
  core from 920 holes representing 145 mineral
  prospects.
• The entire collection, dominated by oil and gas
  related materials, contains over 10,000,000 feet
  of drill core/well chips and nearly 250,000
  processed slides.

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Division of Mining, Land and Water (DMLW)

• Mission to provide for the use and protection
  of Alaska's state owned land and water. Aiming
  toward maximum use of lands and waters consistent
  with the public interest. Authorizing important
  resource uses including
• Mining claims, coal and mineral leases, access,
  and plans of operation for mineral development
• Ice roads, support facilities, and exploration
  camps for oil and gas development
• Gravel sales for road construction and private
  development
• Access for public and private entities across
  state lands and waters, including power and
  telephone lines and
• Water rights and water use authorizations.

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DMLW - Large Mine Permitting Unit
The department is the lead agency for all matters
relating to the exploration, development, and
management of mining, and, in its capacity as
lead agency, shall coordinate all regulatory
matters concerning mineral resource exploration,
development, mining, and associated activities.
Photo of the Donlin Creek Project Area - Courtesy
of Novagold Resources
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DMLW Factoids

• Mining Claim Locations based on MTRSC system.
  Either 40 or 160 acre claims are allowed.
• Prospecting Sites Exclusive right to prospect
  and stake claims.
• Annual Claim Labor 100 dollars for each 40 acre
  claim or 400 for each 160 acre claim. Cash
  payments accepted.

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Exploration Incentive Credit Program

• Exploration activities including
• Geochemical and Geophysical Surveys,
• Exploration Drilling,
• Underground Exploration,
• Surface Trenching and Bulk Sampling,
• Can be applied against future State Mining
  License Tax or Corporate Income Tax or State owed
  royalty from mine production not to exceed
  20,000,000.

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Reasonable Minerals Taxation

• Production royalty of 3 of net revenue from
  sales of minerals derived from state lands
• Mining license tax peaking at 7 of net income
  3.5 year holiday allowed to recover investment
• Corporate income tax peaking at 9.4 of net
  income
• Exploration tax credit not to exceed 1/2 of
  royalty, mining license and corporate income tax
  obligation to a cumulative 20 million within 15
  years

See Alaska Minerals-Related Taxes at
http//www.commerce.state.ak.us/oed/minerals/minin
g.htm
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Alaska

• Educational Resources

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University of Alaska
The University of Alaska is a multicampus
university with a breadth of programs that
benefit mining and mineral exploration. The
University of Alaska Fairbanks (UAF) has a
College of Engineering and Mines and a Department
of Geology and Geophysics.
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UAF - College of Engineering Mines
Department of Mining And Geologic Engineering
Emphasizing engineering as it applies to the
exploration and development of mineral resources
and upon the economics of the business of mining
Mineral Industry Research Laboratory (MIRL)
Established in 1963 by the Alaska Legislature for
the purpose of conducting basic and applied
research to aid in the development of Alaska's
mineral and energy resources. The School of
Mineral Engineering was combined with Engineering
in 2004 to form the College of Engineering and
Mines.
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UAF - Department of Mining and Geologic
Engineering
Offers well-equipped modern laboratories for
research and class study. Facilities include

• remote sensing lab
• subsurface hydrology lab
• geophysical lab
• atomic absorption unit
• off-campus experimental underground mine

• personal computer lab
• geomechanics lab
• rock drilling lab
• ore microscopy lab
• X-ray diffraction and fluorescent units

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UAF - Dept. of Geology and Geophysics
Offering under graduate and graduate programs in
a variety of earth science fields with an
emphasis on Alaska.

• M.S. Program in Economic Geology
• Laboratory facilities include
• 40Ar/39Ar rock dating capability
• Microbeam Analysis Lab Electron Microscope
  XRF Spectrometer
• X-Ray Diffraction Lab

Microprobe Photo by Kerry Lear Courtesy of UAF
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Delta Mine Training Center
A non-profit organization providing quality
vocational education for the minerals industry in
Alaska
Classes in Exploration/Prospecting, Mineral
Processing, Mining, MSHA, HAZWOPER, Emergency
Response, General Business
Established by a consortium between Delta/Greeley
School District, Tanana Chiefs Conference Inc.,
Alaska Miners Association, and the University of
Alaska
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AMEREF
Alaska Minerals and Energy Resource Education
Fund (AMEREF) is an innovative business/
education partnership partially funded by the
State and private contributions that strives to
build a public awareness of the essential role of
geology and minerals in our society
An AMEREF Resources kit
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AMEREF Works to

• Generate student interest
• Provide industry specific career information
• Promote direct experiences by bringing resource
  professionals into the classrooms and students
  into the work place.
• Distribute information about Alaska's heritage
  and mineral and energy resources, called Alaska
  Resource Kits.
• The AMEREF program has distributed over 35,000
  Alaska Resources Kits to students since 1982.

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Alaska

• Alaska-based Organizations Working for a Stronger
  Industry

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Alaska Miners Association
The goals of the Alaska Miners Association are
To provide services to the membership which
will assist them in their mining activities.
Monitor the political processes to help keep
lands available for mineral exploration and
development. Insure that the restrictions on
land and water use are economically realistic.
Increase public awareness of the mineral
industry. Encourage and support responsible
mineral production in Alaska.
www.alaskaminers.org
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AMA Conventions

• Held annually in November in Anchorage, Alaska.
• Featuring Short Courses, Technical Sessions,
  Trade Show, Award Banquet, History Night, Alaska
  Mining Hall of Fame inductions, and a Rock and
  Mineral Show.
• Also a Biennial Convention in Fairbanks (2010)
  and Juneau (2009) with field trips, short
  courses, technical sessions, trade show, other!

See www.alaskaminers.org for details.
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Resource Development Council
A statewide, non-profit, membership-funded
organization made up of businesses and
individuals from all resource sectors working
together to promote and support responsible
development of Alaska's resources.
Photo Courtesy of RDC
RDC 2009 - 2010 Board of Directors
Growing Alaska though Responsible Resource
Development!
www.akrdc.org
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Alaska Minerals Commission
Enabled in 1984 to make recommendations to the
Governor and Legislature on ways to mitigate
constraints on mineral development in the State.
Cover Photo of the 2009 Alaska Minerals
Commission Report
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Minerals Commission Recommendations for 2009
Calling upon the Alaska State Legislature
Administration to

• Avoid changing the designation of lands to stop
  mineral development, especially in areas with
  valid existing rights that were selected by the
  State for their mineral potential
• Maintain a thorough, transparent permitting
  process for responsible mineral development
• Ensure that Enforceable Policies proposed by the
  Coastal Districts under the Coastal Zone
  Management Program are not duplicative of
  existing laws and regulations
• Ensure that Enforceable Policies flow from
  existing laws and regulations and do not
  establish new standards without following either
  federal or state processes
• Support State assumption of the NPDES program by
  providing adequate budget
• Pursue waterbody reclassification petitions in a
  timely manner
• Work toward EPA approval of DEC natural
  background site specific water quality guidance
• Develop water quality regulations for groundwater
• Develop a database listing all mixing zones
  issued in Alaska
• Create a public presentation on the need for
  industrial and municipal mixing zones
• Ensure mixing zone regulations remain objective
  and broad based
• Continue support for developing transportation
  infrastructure
• Support the need for developing power generation
  capacity and distribution in the state
• Develop conveyance procedures with BLM for
  Rights-of-Ways over federal lands
• Support development of Recordable Disclaimers of
  Interest in navigability determinations

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Minerals Commission Recommendations for 2009

• Support and fund DNR transfer of BLM managed
  lands to the States 104.4 million acre
  entitlement
• Increase the investment in geophysical and
  geological surveys to more than 1M per year
• Ensure future municipal taxes, especially within
  the unincorporated regions, are broad based,
  equitable, and stable
• Develop a working group to standardize
  calculation methods for reclamation and closure
  financial assurance requirements
• Provide core funding within the Large Mine
  Permitting Team in DNR to pay for essential staff
  training and public outreach
• Enhance the recruitment and retention of
  essential permitting professional staff
• Enhance the development of foreign investment in
  Alaskas minerals industry
• Fund the AMEREF program in the amount of 100,000
  annually
• Support the UAF College of Engineering and Mines
• Encourage the Congressional delegation to support
  the passage of the Energy and Mineral Schools
  Re-investment Act in Congress
• Support programs to improve availability of
  professional and trained workers for the mining
  industry
• Fund a statewide Minerals Education Promotion
  Program to educate the public about the minerals
  industry
• Encourage the Alaska Delegation to seek full
  funding for Alaskas Coal Regulatory Program
• Work with the federal government to ensure
  National Park System inholders are treated fairly
  and equitably.

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Alaska

• The Federal Government
• Taking an active role in building Alaskas
  mineral industry

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DOI - Bureau of Land Management
Developing a better understanding of Alaskas
mineral potential

• Working to complete Mineral Assessment Studies
  and Economic Prefeasibility Reports for select
  mining districts. (Unique to Alaska)
• Partnering with the States DGGS to complete
  geophysical surveys in mining and exploration
  areas.

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BLM - Mineral Assessment Studies
Objectives

• Identify the type, amount and distribution of
  mineral deposits in select mining districts.
• Determine mineral resource estimates when
  possible.
• Conduct feasibility studies for selected deposit
  types.
• Address land-use and resource issues related to
  mining activities.

Cover for the Juneau Mining District Mineral
Assessment Report, 1988
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U.S. Bureau of Land Management
Offering Mineral Assessment Reports on the
following districts
Delta River
Aniak
Available from the BLM - Juneau Mineral
Information Center
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U.S. Bureau of Land Management
Offering Economic Prefeasibility Reports on the
following districts
Juneau Gold Belt
Stikine
Available from the BLM - Juneau Mineral
Information Center
91
USDA - Forest Service
Mineral Prescription Areas
The Tongass Land Management Plan of 1997 (TLMP),
has allowed the Forest Service to designate
specific areas of high mineral potential in
Southeast Alaska to be managed consistent with
mineral development.
Sullivan River
Kensington
Bohemia Basin
Juneau
Greens Creek Ext..
Mineral emphasis areas in red, select districts
labeled in yellow.
Woewodski Island
Kasaan
Union Bay
www.fs.fed.us/r10
Bokan Mtn.
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The USGS in Alaska
Committed to the Study of Alaskas mineral
resources

• Alaska Minerals Team - Ongoing Current studies
• Alaska Resource Data Files
• Field Record Archives - Available online
• Alaska Geospatial Data Clearinghouse
• RASS Geochemical Data - National Geochemical
  Database
• NURE geochemical Data - National Uranium Resource
  Eval.
• Interagency Minerals Coordinating Group
• Education and Outreach

Www.alaskaminerals.wr.usgs.gov/
93
The USGS in Alaska
The USGS Alaska Mineral Resources Teams Current
Studies Include

• Precambrian and Triassic VMS deposits in the
  Ketchikan airborne geophysical survey area
• Talkeetna Mountains Transect tectonics and
  metallogenesis of south-central Alaska
• Tectonics and Metallogenesis of Alaska
• Alaska Digital Geologic Map Database
• Early Tertiary Slab Window in Alaska and its
  Resource Implications

94
The USGS in Alaska
Alaska Resource Data Files (ARDF)

• Descriptions of mines, prospects, and mineral
  occurrences in the Alaska Resource Data File
  (ARDF) are published for individual U.S.
  Geological Survey 1250,000-scale quadrangles in
  Alaska as USGS Open File Reports and are
  available online from

www.ardf.wr.usgs.gov/welcome/html
95
Interagency Minerals Coordinating Group (IMCG)
IMCG is identifying cooperative ventures which
allow the expedition and production of minerals
data in Alaska with the aim to increase the
dissemination of Alaskan mineral information in
accessible formats.
Http//imcg.wr.usgs.gov/index/html
96
Alaska

• Economic Issues of the Minerals Industry

97
Challenges to the Alaska Minerals Industry

• Fluctuations in gold and base metal prices.
• Economic decline lack of funding.
• Competition with Canadian flow-though tax
  incentives.
• Infrastructure requirements (including power and
  roads).
• Shortage of skilled personnel.
• Shortage of trained mining engineers for
  development /operations.
• Shortage of experienced surface and underground
  miners.
• Negative public perceptions of the mining
  industry.

98
The Exploration Stage
Local Wealth Can be Created through

• New resources industry jobs
• Use of local contractors
• Local provision of lodging and services
• Acquisition of local supplies
• Tax revenue

Photo Courtesy of BLM - Minerals information
Center
99
Operating Mines
The Impact on Alaska

• Red Dog - 2,445 million in revenues.
• Fort Knox - spends 50 million annually on local
  goods and services and generates 3.4 million in
  revenues to the Borough.
• Greens Creek - largest private employer in Juneau
  with a payroll of 28 million with 317 employees
  and a 5.4 million indirect payroll.
• Mining leads the list for the highest paid jobs
  in the State, averaging 80,000/yr.

100
The Mining Industry

• Being recognized as leaders in working with
  stakeholders on issues of sustainable development
  (Cominco, Placer Dome, Coeur Alaska).
• Companies take a proactive approach to
  environmental issues.
• Successful companies are developing and utilizing
  state of the art scientific and practical
  technologies.

Improving its Legacy!
Photo Courtesy of The Alaska Division of Tourism
- Denny Daniels
101
The Mining Industry
Jobs and wealth to the community

• There were 186,000 people employed in the U.S.
  mining industry in 2008 including coal rock,
  sand, and gravel and metal mining (3,400 total
  in Alaska). (USGS, SOA)
• Total value of production from coal, metal, and
  non-metal mines in the U.S. in 2008 - 71billion
  dollars (2.43 billion dollars in Alaska 3.4).
  (USGS)
• Sources
• National Mining Association. www.nma.org/pdf/m_num
  ber_operations.pdf
• USGS. USGS Mineral Commodity Summaries 2009
  http//minerals.usgs.gov/minerals/pubs/mcs

102
Alaska Comparisons

• Alaska ranked 8th in the U.S. in total non-fuel
  mineral production value in 2008.
• Of 882 million spent in the U.S. on non-fuel
  exploration in 2008, 347 million was spent in
  Alaska.
• Source USGS Mineral Commodity Summaries 2009

103
Prime for Discovery and Development
Alaska has

• A healthy mineral endowment!
• A cooperative regulatory environment!
• A State government supporting responsible
  mineral development and providing assistance
  through various departments and incentives!

Used with permission, Courtesy of Alaska Division
of Tourism. Photo by Mark Wayne.
104
For more information on the Alaska Minerals
Industry
DNR - DGGS
Alaska Miners Association
Commerce - OED/OMD Rich Hughes 907-451-2738
Fairbanks Lisa Harbo 907-451-2748 Fairbanks
Dave Szumigala - 907-451-5025 Fairbanks
Steve Borell - 907-562-9229 Anchorage
DNR - DMLW Rick Fredericksen -
907-269-8621 Anchorage
httpwwwdggs.dnr.state.ak.us
www.alaskaminers.org
http//www.commerce.state.ak.us/oed/minerals/minin
g.htm
www.dnr.state.ak.us/mlw/mining/index
105
Acknowledgments
The sponsors of this presentation (Alaska Miners
Association and the Department of Commerce,
Community and Economic Development - Office of
Mining Development) would like to thank the ADNR
- Division of Geology and Geophysical Services
(DGGS) and The BLM - Juneau Office as well as
the corporations, non-profit groups and
individuals who provided the information and
photos included in this presentation Avalon
Development, Teck-Cominco, Kinross Gold,
Kennecott Greens Creek Mining Co., Coastal
Helicopters, Northstar Exploration, Novagold
Resources, Usibelli Coal Mines, The Resource
Development Council, Calista Corporation, Rubicon
Minerals, and others.