State and Province Reports Session

Alaska Mineral Industry – 2013

L.K. Freeman, Alaska Division of Geological and Geophysical Surveys

Preliminary reports indicate that the value of the mineral industry in Alaska in 2013 continues at an
elevated rate relative to historical records, but reflecting the worldwide downward trends in metal
prices and availability of venture capital, overall value may be down from the 2011-2012 peak years.
Based on partial year reports, metal production from the six major hard-rock mines will be higher than
in 2012, but depressed metal prices may result in level or lower production value. Numerous small scale
placer miners active across the state make a significant contribution to rural economies. Some notable
setbacks for advanced exploration projects include the withdrawal of Anglo American from the Pebble
Partnership and feasibility study results for International Tower Hill Mines Ltd’s Livengood gold project.
However, permitting activities for the Donlin Gold project are on track with completion of draft
Environmental Impact Studies expected in 2014, NovaCopper Inc. completed a positive preliminary
economic assessment of an open-pit scenario at the Arctic VMS deposit, and Ucore Rare Metals Inc.
received the go ahead for an on-land exploration camp and a definition drilling program to advance the
Bokan-Dotson Ridge rare-earth element project to the feasibility stage. During 2013 NovaCopper
announced a significant new resource for the South Reef zone of the Bornite carbonate-hosted copper
deposit, and Freegold Ventures Ltd announced initial resources for the Dolphin-Cleary zone on the
Golden Summit property adjacent to Kinross’s Fort Knox Mine; subsequent drilling at both properties
added significant extensions to both resources. Results of Graphite One Resources Ltd drilling to expand
the Graphite Creek industrial graphite resource on the Seward Peninsula are pending. Contango ORE Inc
announced significant drill results at the Tetlin copper-gold property with anticipation of an initial
resource announcement in early 2014. In addition, significant new drill intercepts were announced at
Pure Nickel Ltd’s MAN magmatic Ni-PGE and Constantine Metal Resources Ltd’s Palmer VMS projects.
The Alaska Industrial Development and Export Authority is investing to promote transportation and
energy infrastructure development, and DGGS is continuing a multi-year programs of integrated
geologic, geophysical and minerals resource surveys. Alaska is weathering the worldwide mineral
industry down-turn and is optimistic for the outlook in 2014.

Bio: Larry Freeman is a Geologist IV and the Acting Mineral Resources Section Chief in the Alaska
Division of Geological & Geophysical Surveys, he joined DGGS in 2000 after working in the mineral
industry since 1977. He has B.S. and M.S. degrees in Geology from Western Washington University and
Oregon State University, respectively.

Contact: Larry Freeman, Geologist IV, Acting Section Chief, Mineral Resources Section, Alaska Division of
Geological & Geophysical Surveys, 3354 College Road, Fairbanks AK 99709, (907)451-5027,
lawrence.freeman@alaska.gov, www.dggs.alaska.gov