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Bureau of Mines / Minerals yearbook 1990
Year 1990, Volume 2 (1990)

Pittman, Tom L.
Alaska,   pp. [54]-70 ff. PDF (3.5 MB)


Page 64

64  ALASKA—1990gold recoveries of at least 92 % . The proposed
mine,
mill, and infrastructure will have a scheduled capacity of 4,000 St per 24-hour
day, produce 200,000 troy ounces of gold per year, and employ about 350 people.
Flotation concentrates will be cyanided and all gold recovered will be smelted
to dore' bullion and shipped out for refming. The company estimates the gold
production cost will be about $225 per troy ounce. Capital costs should be
about $170 to $180 million including a contingency fund of $15 to $20 million.
The Jualin Mine and some nearby property is being explored on a buy-in basis
by Placer Dome (U.S.) Inc. In 1987 Curator American Inc. , and later International
Curator (60 %) and Granges Inc. (40%), optioned the property from Hyak Mining
Co. , of Juneau. Hyak retained a 5 % royalty. The Jualin Mine is on Johnson
Creek and is just south and east of the Kensington Mine. A reserve figure
published in November 1990 listed 1.07 million st averaging 0.349 troy ounces,
uncut, and not considering mining dilution or mill recoveries. About 26,000
feet of diamond drilling was completed in 1990. The main zone consists of
a quartz and carbonate vein stockwork about 50 feet wide in sheared diorite,
similar to the Kensington host rock to the north. These stockwork zones with
quartz, carbonates, pyrite, galena, sphalerite, chalcopyrite, and native
gold contain most of the estimated reserve tonnage. More compact high-quartz
veins from about 1 to 5 feet thick contain more abundant sulfides and gold;
they commonly crosscut the carbonate-carrying veins and usually enrich them.
Some gold-bearing felsic dikes crosscut the diorite and were exposed in earlier
trenching. There has been renewed interest in prospecting and exploring dikes
that show significantquartz-sericitepyrite-sphalerite-gold mineralization.
These dikes tend to crosscut the general trend of the diorite and the main
mineralized zone. 
The Jualin Mine produced an estimated 48,375 troy ounces of gold in the period
from 1896 to 1920, when the small stamp mill burned. The ore came from four
or 
five quartz veins that ranged in width from 2 to 10 feet. One vein averaged
about 1 1/2 troy ounces of gold per st; the other veins each averaged less
than 1/2 troy ounce of gold per st. A Belgian company controlled the property
when World War I interrupted its fmancing and drain tunnel project, and loss
of the mill 
~ shut off the last source of revenue. The 
~ patented mining claims were foreclosed 
~ by the State for nonpayment of taxes. 
~ Hyak Mining Co. relocated the property as State mining claims in 1978.
Bear Creek Mining Co. leased the property in 1983 and did some diamond drilling.
Curator American Inc. leased the property in 1987 and core drilled about
14,000 feet in 28 holes. In 1988 Curator diamond drilled an additional 14,000
feet and built a 
5-mile access road from a cove near the entrance to Berners Bay to the mine.
Curator leased the Dream deposit in the Chilkat Mountains across Lynn Canal,
to the west, and started to explore them. A field crew from the Bureau of
Mines had discovered the Dream precious metal and base metal deposit and
it had been located by local prospectors and leased to Hyak. Placer Dome
(U.S.) Ltd. leased the Jualin and Dream properties in 1989 and continued
exploring them as possible lowgrade but large-tonnage gold producers. The
State survey lists other exploration projects in the southeast region. Hecla
Mining Co. diamond drilled on the Red Diamond, Yakima, and Lawson Creek deposits
on Douglas Island. Lac Minerals (U.S.) Inc. and Noranda Exploration Inc.
jointly explored at the old Niblack MineLookout Mountain area and the Ruby
Tuesday deposit on Prince of Wales Island and the Kaigani prospect on Dall
Island.These are precious metal and/or base metal deposits. Sealaska Corp.
did some exploration work at several localities: a buried porphyry with gold
mineralization north of Kiawok; skarn copper with gold at Coco Harbor; volcanogenic
massive sulfide copper deposits with gold values in the Hetta Inlet and Trocadero
Bay areas, Dora Bay and Sukwan Island; and the Dolomi area copper-gold deposit
leased to American Copper and Nickel Inc. The Lucky Nell 
Mine adit on Prince of Wales Island was reopened and the underground workings
and mine dumps were sampled by Guy Comer of Ketchikan. Hyak Mining Co. used
mapping, geophysical surveys, and geochemical sampling on Chichagof Island.
BHP-UTAH funded a month-long sampling and mapping project on Prince of Wales
Island. Delta Minerals explored in the Porcupine townsite using reverse circulation
drilling, mapping, sampling, and geophysical surveys in the old gold placer
district near Haines. Pulsar Resources (U.S.) Inc. contracted for 5,500 feet
of core drilling and did regional geological and geochemical work in the
Hyder area in 1990. Pulsar is a subsidiary of Hyder Gold Inc. 
Exploration in the classic epithermal gold setting of the Alaska Peninsula
region was valued at about $1 .77 million in 1990, down from about $2.01
million in 1989. Battle Mountain Exploration Co. vigorously explored land
leased from the Aleut Corp. on Unga, - Popof, and Nagai Islands in the Shumagin
group of islands. The State survey described the program as including mapping,
rock sampling, and drilling following a large airborne magnetic-electromagnetic
geophysical survey. Work on Umnak and Unalaska Islands included a smaller
geophysical survey followed by intensive geologic mapping, geochemical sampling,
and drilling. Alaska Apollo Mines Ltd. reported reserves at the Apollo and
Shumagin Mines on Unga Island average 0.765 troy ounces gold and 2.47 troy
ounces silver contained in 208,260 st of ore. 
Silver.—Silver production reported to the State in 1990 was 10,135,000
troy ounces, valued at an estimated $50,675,000. The State reported silver
production in 1988 and 1989 at 49,790 and 5,21 1 ,591 troy ounces, respectively,
valued at $281,950 and $27,360,852. Alaska ranked third among the States
in production of silver, up from sixth in 1989. The Greens Creek Mine, in
its second year, produced 7,636,501 troy ounces of silver from 382,574 st
of ore. This was Greens Creek's second year as the top-ranked silver mine
in the United 


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