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Survey finds valuable minerals north of Juneau

Posted: August 27, 2012 - 1:42am

ANCHORAGE — Speaking geologist is a foreign language to most, but understanding excitement is universal.

It is written all over Melanie Werdon’s face and loud and clear through her voice as she talks about the good old fashioned detective work of Alaska state geologists that led to significant findings of gold and strategic mineral anomalies during 2011 both in William Henry Bay north of Juneau and at the Moran deposit west of Fairbanks.

Werdon is the Mineral Resources Section Chief and economic geologist for the state Division of Geologic and Geophysical Surveys. The division is now engaged in a $3 million program to catalog strategic mineral deposits, which include both the valuable rare earth elements as well as others such as cobalt, platinum and yttrium.

Werdon used old mineral samples collected in the 1970s and 1980s by the U.S. Geologic Survey as a starting point for where to look in the Moran area, and on July 13 the division released its results from 2011 showing new gold bearing drainages and high rare earth element concentrations.

The 2012 program is focusing on prospects near Moran around the Ray Mountains north of Fairbanks. The land is currently held by the U.S. Bureau of Land Management, but is under consideration for the state as it finalizes its final 4 million or so acres of land selections.

Gold-bearing results at William Henry Bay pushed the area into top consideration for state selection.

The Ray Mountains area is fairly low on the state priorities for selection at present, but if promising results are found this year it will likely move up the list based on its close proximity to the road system.

The $3 million in funding for strategic mineral surveys in 2012 was a part of the most recent capital budget approved during the last legislative session and a six-fold increase from the $498,000 allocated last year.

The “core shack” at the Hotspot rest stop along the Dalton Highway about 2 1/2 hours north of Fairbanks is filled with the latest technology from GPS mapping tools to something that can only be described as an X-ray gun. Airborne helicopter survey tools have also taken leaps in resolution, providing results that are comparable to the difference between a high-definition flat screen and an old black-and-white set.

But in the end it is still boots-on-the-ground geology work of walking miles per day picking up rock samples and panning sediment from streams to locate potential upland deposits.

The push to develop rare earth and strategic minerals is an urgent one as China has limited exports and solidified its control of some 95 percent of the global rare earth market.

Rare earths are vital to everything from consumer electronics to military weapons systems, and while the minerals are highly coveted there is a limited market that could be supplied by just a few producing mines.

Alaska is positioned well to meet those needs, and the strategic mineral survey now under way is giving mining companies a strong set of indicators on where to start digging.

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snagger
8248
Points
snagger 08/27/12 - 07:18 am
5
8

Do it Now!!!

Save William Henry Bay!!!

mayflower1950
50
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mayflower1950 08/27/12 - 07:41 am
0
3

Did I read this right?

North of Juneau or North of Fairbanks?

sheqelim
488
Points
sheqelim 08/27/12 - 07:45 am
3
4

The William Henry Bay claims

The William Henry Bay claims were nothing more than an investment scam a hundred years ago. I doubt they've sprouted gold since then.

Milspec.
2481
Points
Milspec. 08/27/12 - 08:52 am
5
0

Re-Read Mayflower:

"both in William Henry Bay north of Juneau and at the Moran deposit west of Fairbanks."

60.5 DegN
105
Points
60.5 DegN 08/27/12 - 10:10 am
3
5

Blow it all up

It's nothing more than our natural life support system that we're blowing up.
We can make a new one using plastic tubes, gears and flashing lights.

Halvis
324
Points
Halvis 08/27/12 - 10:19 am
5
0

If the land has some value

If the land has some value then the state surely wants it. However the city will also be looking at ways to annex William Henry Bay.

AH HA
1640
Points
AH HA 08/27/12 - 10:29 am
10
1

Well, at least it's not

"Pristine" but of course neither was Berners bay.....

William Henry Bay was mined rather extensively from 1915 through 1925. The area has several mineshafts totaling several thousand feet, a fifty-foot wide dam was placed across the river there and extensive logging was completed during that time. The ore body produced copper at 1.8 percent and some gold.

Most interesting about this mine is that during that era absolutely no environmental controls were followed by the miners at William Henry bay or at the more extensive mines that were then in operation in Berners Bay and at point Sherman (Comet). No remediation or cleanup has ever been undertaken at either location and Berners Bay is generally referred to as "Pristine" untouched habitat.

al97ct
465
Points
al97ct 08/27/12 - 10:54 am
6
11

We must institute a tax rate

We must institute a tax rate of 50% or more on net income...... on every single mine in Alaska so we have funds for cleanup etc..... These mining operations are creating millionaires off of our public resources. This has to end.

These mines make a killing and leave the public with the cleanup tab. This has to end.

Persnickety Persimmon
4173
Points
Persnickety Persimmon 08/27/12 - 02:47 pm
4
5

How about instead of a high

How about instead of a high tax rate, we make mining operations 100% responsible for cleaning up the pollution they create, including criminal penalties for those within the company in case they are unable to mitigate the damage they cause?

You_know_Juneau
79
Points
You_know_Juneau 08/27/12 - 04:22 pm
7
1

Reclamation is funded upfront

@al97ct and Persnickety - Mining companies are 100% responsible for returning their claims to a stable condition (i.e reclaim the area). The state requires the mining company to post a bond or some other form of financial assurance before they start mining their claim. If the company is unable to reclaim the mine for whatever reason, the state can collect the bond from the bank and contract out the reclamation work. The financial assurance is set by the state based on the approved plan of operations from the mining company, and varies by each project. In the case of Kensington, the assurance is about $7.3 million, while Pogo mine is $57 million. That is money secured up front, and it is dedicated for reclamation work only, if the state needs to step in and do it.

You can learn about many of the hard-rock mines in Alaska, and the state's management of them, by visiting http://dnr.alaska.gov/mlw/mining/largemine/index.cfm

noroadfugtive
1297
Points
noroadfugtive 08/27/12 - 07:10 pm
4
0

YouKnow, Good post, thanks

YouKnow,

Good post, thanks for the info.

madison89
1040
Points
madison89 08/28/12 - 06:30 am
3
3

The SEACC low life's will

Unpublished

The SEACC low life's will undoubtedly be filing a preimptive law suit any day now.

kpawsuh
10138
Points
kpawsuh 08/28/12 - 01:50 pm
2
1

You know, that works sjust

You know, that works just fine until the company goes bankrupt. Ooops, now who's responsible? Can you say Tulsequa? (I'm not sure I can spell it...)

AH HA
1640
Points
AH HA 08/29/12 - 03:27 pm
2
0

kpawsuh???

Come on now, you know damn well that's what the bond if for.

Don’t you?

wavemkr
3761
Points
wavemkr 08/29/12 - 04:36 pm
0
0

AH HA & YOU_KNOW_JUNEAU

Well said! Thank You both for the info !

kpawsuh
10138
Points
kpawsuh 08/29/12 - 04:39 pm
0
0

But the bond won't even pay

But the bond won't even pay for the site inspection, or plan development. Thses mines will take millions to clean up.

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