Pebble gets one year state permit

The state Department of Natural Resources approved a one-year land-use permit for Pebble Partnership so the company can drill 80 bore holes needed to gather geotechnical information. Pebble will also be able to do site restoration work. The DNR said it will also ramp up site inspections, and will form a new Bristol Bay Advisory Group to advise the agency. The U.S. Army Corps of Engineers is meanwhile continuing scoping meetings for an Environmental Impact Statement for the Pebble copper/gold/molybdenum project.

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Production steady at Red Dog

Red Dog Mine zinc concentrate production of 121,500 tonnes (a tonne is 2,200 pounds) in 2018’s rst quarter was similar to last year as lower mill throughput was offset by higher ore grades and metal recoveries. Mill operations were challenging, however, due to extreme winter conditions that closed the concentrate haul road connecting the mine to the port storage facility for over two weeks during the quarter, forcing numerous slowdowns and shutdowns of milling operations due to limited storage capacity at the mine site. Lead production of 19,700 tonnes declined by 9,200 tonnes compared with a year ago due to lower grades. Market demand for zinc concentrates remains strong.

Teck pays a royalty to NANA Regional Corporation based on net proceeds of production each quarter. The royalty rate increases by 5 percent every ve years to a maximum of 50 percent. The royalty through September 30, 2017, was 30 percent and increased to 35 percent effective October 1, 2017.

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Fort Knox gold production is down

Fort Knox gold production in the rst quarter of 2018 decreased compared with the previous quarter and year-over-year mainly due to a decrease in ore grades, Kinross Gold said in its first quarter financial report. The lower production relative to fourth quarter 2017 was due to the seasonal winter slowdown resulting in fewer ounces recovered from the heap leach.

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Mine development requires big bucks

Mine development has a long lead-time and requires huge investments. Some examples, from the 2018 Alaska Minerals Commission report:

• Donlin Gold: $430 million over 23 years
• Pebble: $550 million over 10 years
• Arctic/Bornite: $90 million over 5 years

Some projects are ultimately unsuccessful. Over $200 million was invested in Rock Creek over 25 years, and $140 million in the AJ Mine reopening over 14 years.