THE ALASKA MINER MAGAZINE: Our magazine is published quarterly and delivered to both the members of the Alaska Miners Association and to key decision-makers and leaders in Alaska and beyond. Our goal is to educate, advocate, and lead our industry as one of the strongest, oldest, and most productive corporate citizens in Alaska. AMA’s mission is to promote responsible mineral development in Alaska. We provide key communication between our members, the industry, and policymakers in and out of Alaska. Each issue includes news and information important to our industry and our constituents.
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October 2019 Volume 47, Number 10
Annual Convention 2019 80 Years: Safer | Smarter | Stronger
INSIDE THIS ISSUE X Everything for Convention 2019
X Positive trends for 2020 X New projects on horizon X &2&ƶWǻVWX]IEVW
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Monday evening we’ll hold our Icebreaker Registra- tion reception, share AMAPAC information with you, accept presentations from speakers and tighten our seat belts for the week to come. Tuesday, we begin a Mining District Breakfast with my friend Paul Manuel at the helm, with all districts statewide providing updates. Over the course of the week we’ll see three days of technical sessions highlighting where we’ve come in the past 80 years, what we excel at today and how we can develop and improve moving into the future. We’ll hear from our state regulatory agency com- missioners at Keynote Luncheons as well as our new BLM State Director. And, we’ll cohost a breakfast meeting Thursday with RDC that will feature a dis- N`^^TZYMP_bPPY-ZM7ZPʰP]4>0=;]ZQP^^Z]LYO5LOP 9Z]_SNZY^`W_LY_LYO2`d,]NSTMLWO>_Lʬ>NTPY_T^_ for the Southeast Alaska Conservation Council. They’ll discuss their divergent (and some common!) views on regulation of resource development. I have no doubt this October issue of the Alaska Miner leaves you thirsting for more Convention infor- XL_TZY5`^_SPLO_ZZ`]bPM^T_PbSP]P7LNTSL^MPPY M`^dbT_SOLTWd`[WZLO^ZQYPbNZYʭ]XPOLOOT_TZY^_Z the week’s events, including a countdown clock that se- riously stresses me out but I hope excites our attendees. As we prepare for this November, there are also a QPbZ]RLYTeL_TZYLW_STYR^SL[[PYTYRL__SP,8,ZʯNP that coincide with the Convention, the most important ZQbSTNST^L^^T^_TYR_SPM]LYNSP^bT_S_SPT]0WPN_TZY^ On Wednesday, Nov. 6, we will elect a new Statewide -ZL]OZQ/T]PN_Z]^_Z^P]aP,8,$0WPN_TZY^ for all branches are underway currently and I hope that if you’ve ever given any thought to being more TYaZWaPOTY,8,dZ`ɪWWZʬP]dZ`]YLXPQZ]PWPN_TZY Our board serves AMA statewide, makes a positive im- pact in our communities and is the lifeblood of AMA. .ZY_LN_Z`]^_LʬTQdZ`SLaP\`P^_TZY^LMZ`_SZb_Z be involved as a Director. Finally, speaking of the lifeblood of the mining in- dustry, I’d like to call your attention to the Honor Roll of Members featured on Page 64 of this magazine. My jaw dropped when I saw some of these long- time members — I had no idea many of you have been giving to the organization for so long, not because you aren’t old enough, but because it’s truly humbling to see that many of you still so involved today were deeply involved in the transformational times of our industry and Association. It is an abso- lute honor to know you and work for you. 4NLYɪ_bLT__Z^PPLWWZQdZ`_SPʭ]^_bPPVZQ November. Ǎ Executive Director’s Report
D ear AMA Members: As our leaves here in Southcentral turn brilliantly yellow and we’ve had enough ]LTY_ZQZ]RP__SP]PPaP]bL^LM`]YMLYTYPʬPN_ ^`XXP]SL^ZʯNTLWWd_`]YPOTY_Z.ZYaPY_TZY4XPLY fall season. It’s true that once the calendar hits September, there’s one organization event after another, seem- ingly once per week until Thanksgiving, including Z`]^_SL_ʭ]^_Q`WWbPPVZQ9ZaPXMP]4VYZbXLYdZQ these groups holding their events — AMA, Resource Development Council, Associated General Contrac- tors, Alaska Chamber and others — share many of the same sponsors and attendees. I can speak for my colleagues when I say we all truly appreciate the time and resources you give to ensure our event’s success, and to help to fund our mission year-round. BSTWP4LX^`]P_SP^_LʬLYONZXXT__PPWZZV frazzled, and don’t walk anywhere when we could run, I can tell you that this is my favorite week of my year. The Convention is our family reunion with many that we only get to see that one time of year. I’m optimistic this will be our best Convention in all of our 80 Years of AMA. The Convention insert in this magazine goes into great detail, but I’d like to add a little color to tell you why I personally am excited for this year’s Convention. First, we start the week with a short course that is so good people actually show up on a Sunday, to start a two-day course. Monday that course continues and another one-day course begins. This year we will also have the pleasure of being featured at the Anchor- age Chamber “Make It Monday” Forum onsite at the Dena’ina to discuss mining with a wider audience. Contributed Photo AMA Executive Director Deantha Crockett speaks to the Southeast Conference Annual Meeting in Sitka.
Deantha Crockett AMA Executive Director r
The Alaska Miner
October 2019
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2 Executive Director’s Report 4 Letter from President Mike Satre 14 Mining is Important for Alaska 16 Faces in Mining: Traci Hartz 18 Update from DNR Commissioner 22 Parish’s book ascends lists on Amazon 31 Convention 2019 Program 52 Alaska’s Landless University System 60 Project Updates 64 Honor Roll of Members 66 Mining Business and Service Directory 75 Coming Events TABLE OF CONTENTS
8LISǽGMEPQEKE^MRISJXLI Alaska Miners Association and the mining industry in Alaska
ON THE COVER: Juneau’s Gary Roberts is an underground miner at Greens Creek Mine. Photo courtesy Hecla Greens Creek Mine.
THIS PAGE: Through a partnership between the Mining and Petroleum Training Service (MAPTS) and the Alaska EXCEL program, young Alaskans like Arnold Simon, of Hooper Bay, pictured here, are getting hands-on training in all aspects of mining in Alaska, providing a clear path for them to a lifetime of career success in mining. Learn more about the success of this program on Page 56. Photo courtesy Alaska EXCEL
The Alaska Miner is dedicated to those who work in and support the mining industry in Alaska, its NZXXT_XPY__Z_SP[PZ[WPLYO]P^Z`]NP^ZQZ`]^_L_P:`]XLRLeTYPT^[`MWT^SPO\`L]_P]WdLYOOPWTaP]PO to both the members of the Alaska Miners Association and to key decision makers and leaders in Alaska and beyond. Our goal is to educate, advocate and lead our industry as one of the strongest, oldest and most productive corporate citizens in Alaska. AMA’s mission is to promote responsible mineral development in Alaska.
EDITORIAL CALENDAR
ALASKA MINERS ASSOCIATION STAFF
January 2020 Legislative and Season Preview April 2020 Project Updates July 2020 People in Mining October 2020 Anchorage Convention 2020
Executive Director
Deantha Crockett Jennifer Luiten
Membership and Fundraising Director
Projects Manager
Laci Michaud
Bookkeeping and Membership
Darlene Strickland
EXECUTIVE BOARD
BRANCH CHAIRMEN
Mike Satre President, Hecla Greens Creek Mining Co., Juneau 'MPP/IǺVIWW First Vice President, SRK Consulting, Anchorage Bartly Kleven Second Vice President, Kinross–Fort Knox, Fairbanks Kim Aasand Treasurer, Aasand & Glore LLC., Anchorage
/MQ)YǽIPH Kenai Blake Bogart Nome Andrew Spokely Ketchikan/
Ted Hawley Anchorage Roger Speer Denali Anna Atchison Fairbanks James Sage Haines Frank Bergstrom Juneau
Prince of Wales
The Alaska Miner is published in partnership with the Alaska Miners Association by Fireweed Strategies LLC, 4849 Potter Crest Circle, Anchorage, AK 99516. We actively seek contributions from our members and the mining industry. For advertising information or news tips, call or email publisher Lee Leschper at 907-957-6025 or Lee.Leschper@FireweedStrategies.com.
October 2019
The Alaska Miner
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Attacks on our way of life are outrageous
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drivel by stating “…there’s broad agreement among economists that mines leave communities worse off economically. That’s despite the value extracted from mines and the high wages they pay.” To prove this they allege the following parade of horribles about mining. “Mining-dependent small communities and rural areas are at risk for the following social problems: Increased alcohol and substance abuse and the violence, morbidity, and mortality associated with it; Increased violent crime including physical and sexual assault; Increased pressure on law enforcement agencies because of substantial increases in citizens seeking police assistance in dealing with social problems; Increased presence of convicted felons including drug dealers and registered sex offenders; Undermining of Indigenous peoples’ and other existing residents’ ways of life and traditions; and Increased conflict among residents along income, employment, and racial lines as the community fragments under the pressure of substantial transience among workers and residents.” 0aPYXZ]P]PNPY_WdLMWZRRP]b]Z_P_SL__P^_TXZYd on the Ambler Mining District Industrial Access Project in Anchorage included “…fears that Native women from villages in the region might be abused in the “man camps” of any proposed mines, and that truckers going through the region may float bottles of booze down river to villages that are dry, a form of bootlegging.”
Miners are bad people. Did you know this?
Have you heard that the people who oppose any and all mining are again using the most insidious and nastiest of fear tactics in order to stop mining in Alaska? They are attacking the people. They are attacking you, me and our families. This past spring, at the Prince of Wales Mining Symposium,theSoutheastAlaskaConservationCouncil gave a presentation entitled “The Social Impacts of 8TYTYRLYO?ZZW^QZ]0YRLRTYR8TYTYR.ZX[LYTP^ɮ4Y this talk, it alleged that “Prospecting and exploration can cause social divisions, criminalization, and violence in a community.” That mining itself leads to “…community division and breakdown, forced community displacement, loss of cultural identity, and disproportionate impacts on women.” The council even went further: “When hundreds of single men are brought into a local community to work at a mine, even if living at a mine camp, it often gives rise to bars, brothels, alcoholism, prostitution …” and that “Men sometimes bring home sexually transmitted diseases, which are more common in extractive areas,” they alleged. These hideous and unfounded allegations were recently echoed in a report entitled “The Social Costs of Mining on Rural Communities” published by opponents to Constantine’s Palmer Project near 3LTYP^,WL^VL?SP]P[Z]_OZ`MWP^OZbYZY>0,..ɪ^
The Alaska Miner
October 2019
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Are you kidding me? Where is the Alaskan data that supports this? It certainly doesn’t exist in the NANA region, where YZ_ZYWdSL^=PO/ZR^TRYTQTNLY_WdTYN]PL^PO_SP\`LWT_d of life for generations of shareholders and residents, but it has also supported Alaska Native Corporations and their shareholders throughout the state. 4_T^LM^PY_TY1LT]MLYV^3PLWd/PW_L5`YN_TZY and the surrounding interior areas where not only have Usibelli, Fort Knox and Pogo employees been long-term positive contributors to the social fabric of their communities, but generations of placer mining families have literally built the communities we know today. It is nowhere to be seen in Southeast Alaska where the miners at Greens Creek and Kensington are recognized as part of the glue that holds their communities together, not only through their economic impact, but through their proven volunteerism, charitable donations and just flat-out being good neighbors. It doesn’t exist at Donlin, Palmer, Ambler and Pebble, where current and future social impacts are integral to their project planning. It certainly doesn’t exist in the multitude of exploration projects around the state where operators fully understand that the way they conduct business, both on and off shift, set the stage for how a community will embrace a
mining project. To say that I am outraged and offended by those who perpetuate the myth of miners as undesirable is a complete understatement. I am proud to have worked more than 20 years in the mining industry and my wife and daughter are proud to be part of an Alaskan mining family. We are proud of Alaska’s miners and their contribution to Alaska communities, and we know you are, too. People and groups that spread this type of misinformation are never held accountable and it is time for that to change. It is obvious that proponents of these attacks have lost the battle of science and reason when it comes to opposing mining projects. They are sadly left with ad hominem insults that they indiscriminately hurl in the hopes of stoking fear in the hearts of the uninformed. The Alaska Miners Association will always stand strong against these attacks. We know you will stand with us in promoting and defending Alaska’s vibrant mining family.
Mike Satre AMA President
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October 2019
The Alaska Miner
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State DNR sets new rental rates for claims, leases, prospects
SPECIAL TO THE ALASKA MINER The Alaska Department of Natural Resources has announced YPb]PY_LW]L_P^LʬPN_TYR,WL^VL 8TYP]^PʬPN_TaP>P[_3P]PT^L summary of the information pro- vided to AMA: ?SP:ʯNPZQ_SP7_2ZaP]YZ] approved a change to 11 AAC 86, setting forth new rental rates for mining claims, prospecting sites, and mining leases for the 2020 mining year that began Sept. 1. These increases to mining rental rates were conducted in accordance with State of Alaska 7Lb,># bSTNS]P\`T]P^ an adjustment to the rental rates based on the change on the Bu- reau of Labor Statistics Consumer Price Index (CPI) for Alaska every 10 years to account for the change in the cost of living over the 10 year period between adjustments. The last adjustment was com- pleted in 2009. Here are answers to some fre- \`PY_Wd L^VPO \`P^_TZY^ ]PRL]O - ing rental rates: How are the new rental rates cal- culated? In 1989, the State of Alaska Legislature set the rental rates for mining claims, leasehold lo- cations, and mining leases. In addition, the legislature directed the Department of Natural Re- sources (DNR) to adjust the rent- al rates every 10 years based on a change in the CPI for Alaska using the following simple formula in which the denominator is the CPI QZ]_SPʭ]^_SLWQZQ$#$L^OP_P] - mined by the Federal Government Bureau of Labor Statistics, and the nominator is the CPI for the ʭ]^_SLWQZQ_SPdPL]TYbSTNS_SP adjustment was made. The for-
mula resulted a correction factor. The correction factor is multiplied by the rental rates set in 1989 to produce the new rental rates. Why is the rental rate for Quarter Section mining claims not exactly four times the rate for the Quarter-Quarter Section mining claim? ?SP 7PRT^WL_`]P ]P\`T]PO /9= _Z]Z`YOZʬ_SP]PY_LW]L_P_Z_SP nearest $5.00. For example; the calculated rental rate for a 40 acre claim of less than 5 years is $41.27 and when rounded to the near- est $5.00 is $40.00. Multiplying $41.27 by 4 results in the actual rental rate for a 160 acre claim to MP! #LYO]Z`YOTYRZʬ_Z the nearest $5.00 is $165.00.
I have already paid my claim rental for the coming year at the previous year rate. Will I automatically lose my claim because I didn’t pay the total amount due for this year? No. By regulation, if it is de- termined that a miner fails to make a full payment for rent on a XTYTYRNWLTX/9=T^]P\`T]PO_Z YZ_TQd _SP XTYP] ZQ _SP OPʭNTPY_ [LdXPY_ Md NP]_TʭPO XLTW ?SP XTYP] T^ _SPY ]P\`T]PO _Z XLVP full payment on or before Decem- ber 2 or 30 days after the receipt of the letter, whichever is later. ,OOT_TZYLW \`P^_TZY^ NLY MP answered by DNR representative 7Z]L 0OOd L_ $"!$#!# Z] Kristen Shake at 907-269-8652, or by email to kristen.shake@ alaska.gov.
October 2019
The Alaska Miner
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Graphite One continues surveys
SPECIAL TO THE ALASKA MINER Graphite One made prog- ress with environmental baseline data collection this ʭPWO ^PL^ZY TYNW`OTYR bP_ - lands mapping, surface water sampling and stream gaug- TYR LYO LYLO]ZXZ`^ ʭ^S surveys in the project area. ?SP[]ZUPN_^_LʬSPWOaTWWLRP meetings with Teller, Bre- vig Mission and Mary’s Ig- loo, and met with entities in Nome to provide project updates. Graphite One plans to complete a small drilling program of approximately 800 meters this fall to pro- vide geotechnical informa- tion for mine design and a preliminary feasibility study (PFS). Graphite One plans to complete the PFS in Q2 2020.
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October 2019
The Alaska Miner
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Coeur Alaska Kensington Mine celebrates 1 millionth ounce
SPECIAL TO THE ALASKA MINER Coeur Alaska Kensington Mine recently celebrated its 1 millionth ounce of gold produced since op- P]L_TZY^MPRLYTY5`Wdɭ?ST^ important milestone was achieved through the hard work and deter- mination of the past and present Kensington team. Not only is it a celebration of our accomplishment but a recognition of what the po- tential is here in the district,” said Mark Kiessling, General Manager. Gold production at Coeur Alas- ka Kensington Mine has increased TY _SP ʭ]^_ _bZ \`L]_P]^ ZQ $ compared to production in the ʭ]^_ _bZ \`L]_P]^ ZQ # ?SP XTYPSL^MPPYMPYPʭ_TYRQ]ZX_SP STRSR]LOP 5`LWTY OP[Z^T_ bSTNS began commercial production in /PNPXMP]#5`LWTYLNNZ`Y_PO for approximately 17% of Kens- ington’s production during the ^PNZYO\`L]_P]ZQ$LYOT^Pc - pected to contribute to higher pro- duction levels and lower unit costs when compared to 2018 for the remainder of 2019. During this WL^_ \`L]_P] Pc[WZ]L_TZY LN_TaT_TP^ for three underground core drill rigs were primarily focused on resource expansion drilling with an emphasis on Lower Raven and 0WXT]L=P^`W_^Q]ZX_SPPc[LY - ^TZYO]TWWTYRL_0WXT]LNZY_TY`P_Z be encouraging. One surface rig MPRLY O]TWWTYR TY WL_P 5`YP ZY _SP Comet Vein, which lies above the Kensington access tunnel. Limit- POTYʭWWO]TWWTYRO`]TYR_SP\`L] - _P] bL^ NZX[WP_PO L_ _SP 0WXT]L and Raven veins. The strategy at Kensington is to continue drilling Z_SP]VYZbY5`LWTYWTVPOP[Z^T_^ TYNW`OTYR 0WXT]L 0`]PVL .ZXP_ =LaPYLYO5ZSY^ZY_ZPc_PYO_ST^ STRSP]R]LOP WZbP]NZ^_ []ZʭWP
Production guidance remains at 117,000-130,000 ounces of gold for this year. 4Y5LY`L]d.ZP`],WL^VL6PY^ - ington Mine stabilized its long- term power when it commissioned a new state of the art power plant. The new plant consists of 4 pri- mary power generators that can provide up 16 MW of peak power generation, a 30% increase over the existing plant. The plant pro- vides this increased power supply at a lower emissions rate decreas- ing the sites impact on the envi- ronment. Kensington also expects to see lower diesel costs, improved maintenance costs, increased op- erator safety, and improved plant reliability with the new plant. The mine has seen steady im- provement to its automation program through training, in- frastructure development, and technology adoption by engi- neering and operations into the mine plan in 2019. Mine site in- frastructure improvements are paving the way for automated hauling, loading, ventilation on demand, and custom Wi-Fi-lim- ited data collection technologies. Automated and semi-automated ore loading is now in operation on multiple levels of the mine, while tablets installed in the haul trucks are collecting user-direct custom OL_L_ZSPW[OPNT^TZYXLVP]^ʭYO business opportunities. This in- novation momentum continues to grow as successful user acceptance NdNWP^M`TWONZYʭOPYNPbT_SZ[P] - ators and decision makers at the Kensington Mine. At Coeur Alaska, we under- stand that we are an integral part of the fabric of the communities in which we live and operate. We
believe in fostering a strong cul- ture of corporate responsibility that enables our operations and employees to engage in a wide array of sustainability initiatives. Since 2011, Coeur Alaska employ- ees have participated in an annu- al United Way of Southeast Alaska 0X[WZdPP BZ]V[WLNP .LX[LTRY For 2019, Coeur and its employees pledged $29,816 to the campaign to support solutions that improve PO`NL_TZY ʭYLYNTLW ^_LMTWT_d LYO health. The United Way workplace campaign gives employees the op- portunity to donate, volunteer and speak out for causes that matter to them. Recently, Coeur Alas- VL 6PY^TYR_ZY 8TYP OZYL_PO ʭaP sleeper trailers to Central Council Tlingit & Haida’s Reentry & Re- NZaP]dOP[L]_XPY_TY5`YPL`,6 These sleeper trailers will be used to create housing for clients that are reentering the community. In addition to the trailers, Coeur Alaska also made a $20,000 mon- etary donation to Tlingit & Haida to help renovate the trailers. The renovation work will be completed by reentry clients under the guid- ance of an experienced contractor and in partnership with Tlingit & 3LTOLɪ^BZ]V0c[P]TPYNPLYO:Y _SP5ZM?]LTYTYR[]ZR]LX^ Coeur Alaska also works on strengthening our communi- ties by investing in education. We partner with United Way on the Learn United Reading Tutor Pro- gram, where we coordinate volun- teers that work with students with the goal of the students reading at grade level by the third grade. Coeur Alaska also partners with the University of Alaska Southeast to provide Diesel Technology and AZNL_TZYLW0O`NL_TZY^NSZWL]^ST[^
The Alaska Miner
October 2019
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$GUDPDWLF SDQRUDPLFYLHZRI Kensington Mine ZLWK%HUQHU·V%D\ LQWKHGLVWDQFH The Southeast $ODVNDPLQH SRXUHGLWV PLOOLRQWKRXQFH RIJROGWKLV\HDU ZKLOHOHDYLQJ its pristine VXUURXQGLQJV XQWRXFKHG Photo courtesy Kensington Mine
DPL]Wd _bZ 0YaT]ZYXPY_LW >NTPYNP >NSZWL]^ST[^ L]PLbL]OPO_S]Z`RSL@,>0YOZbXPY_1`YO.ZP`] ,WL^VL LW^Z SL^ []ZaTOPO ^`[[Z]_ QZ] L YPb 5`YPL` ,]_^.`W_`]P.PY_P]5`YPL`2ZWO=`^S/Ld^LYO a wide variety of contributions to high school sports R]Z`[^LYOWZNLWYZY[]Zʭ_^ Coeur Alaska recently submitted the Plan of Oper- ations Amendment 1 (POA 1) to the U.S. Forest Ser- vice which presents a proposed life of mine extension at the Kensington Gold Mine. Through ongoing ex- [WZ]L_TZY PʬZ]_^ .ZP`] ,WL^VL SL^ TOPY_TʭPO LOOT - _TZYLWZ]P]P^Z`]NP^bT_STY_SP6PY^TYR_ZYLYO5`LWTY
deposits at the Kensington Gold Mine. Both deposits are currently being mined, and the estimated ore pro- duction will result in the need for additional tailings and waste rock storage capacity. The Forest Service T^ ]P^[ZYOTYR _Z .ZP`] ,WL^VLɪ^ ]P\`P^_ Md []P[L] - TYRL>`[[WPXPY_LW0YaT]ZYXPY_LW4X[LN_>_L_PXPY_ >04>?SP>04>bTWWMP[]P[L]POMdLYTYOP[PYOPY_ _ST]O[L]_dNZY^`W_TYRʭ]X?P_]L?PNSZYMPSLWQZQ and under the direction of the Forest Service. The Forest Service will provide a review Interdisciplinary ?PLX4/?L^]P\`T]POMd.1= _ZZaP]^PP_SP environmental analysis.
October 2019
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Alaska’s mining industry breathes life into communities A lot of news lately has focused on the very real concerns we have about our future here in Alaska. Lack of public safety, job
cally needed infrastructure and high paying jobs that are breathing new life into rural communities long deprived of hope to improve their economic condition. It has been said that labor rids us of three great
opportunities, education funding, and a weak economy all present challenges that are bring-
ing people together in unprecedented ways to realize a more secure future for our state. 1Z]_SPʭ]^__TXP^TYNP^_L_PSZZO we are seeing year over year declines in our population as working age adults and their families leave Alas- ka in search of work, taking their expertise with them. The Anchorage 0NZYZXTN /PaPWZ[XPY_ .Z][Z]L_TZY reports a loss of 900 jobs just in An- chorage in 2018, and projects another 700 in 2019, and 1,000 in 2020. The statewide job loss numbers are much bleaker.
evils — idleness, vice, and pover- ty. Strong and vibrant communities, healthy families, and good mining in- dustry jobs are all inextricably linked together, opening paths to freedom, opportunity and a thriving self-suf- ʭNTPYNd ?SP ZYWd WZ^P] T^ ^`TNTOP crime and substance abuse. It’s important to remember the abundance of our natural resources and our commitment to market them was key to our gaining statehood 60 years ago. Congress feared that Alas- ka would be unable to raise enough
CHUCK KOPP
taxes due to its small population and end up as LbPWQL]P^_L_P?SP_TOPʭYLWWdMPRLY_Z_`]YTY favor of statehood with the discovery of gold and other natural resources. We were able to prove we could “pay our own way” and that our value to the @YTZYbL^^TRYTʭNLY_ Alaska has been a natural resource extraction state for well over 150 years with the mining in- dustry as the bedrock of our economy for nearly a NPY_`]d8Z^_ZQZ`][Z[`WL_TZYNPY_P]^Q]ZX5` - neau to Fairbanks to Nome were founded by min- ers. Oil and gas are a relative newcomer, and while the energy sector has a bright future, so does our mining industry. And today more than ever, Alas- ka needs this industry to realize its potential to help stabilize our economy, strengthen our com- munities and move Alaska forward into a more secure and prosperous future. The simple truth is, we are no less desperate to- day for the hope, opportunity and economic free- dom brought to us by the mining industry than we were 150 years ago. If a development project is awarded a permit because it has incorporated ^TRYTʭNLY_ [`MWTN TY[`_ LYO XP_ _SP YPNP^^L]d LYO^_]TYRPY_[P]XT_[]ZNP^^]P\`T]PXPY_^_SPY we should enthusiastically welcome the jobs, eco- YZXTN Q]PPOZX LYO QLXTWd ^_LMTWT_d _SL_ ʮZb^ from a well-developed, well-planned, communi- ty supported project that breathes new life into
This situation underscores the importance of taking seriously every opportunity to turn this around. A recent announcement of a major oil producer leaving Alaska is a poignant reminder of how critical it is for us to have a stable investment climate, and that the oil and gas sector alone can no longer carry the freight for us. More diversity to our revenue stream is needed, and we do not have the luxury we once had to dismiss viable prospects right in front of us. The economic strain has a direct nexus to our public safety crisis in rural Alaska. The Anchorage Daily News and ProPublica special report “Law- less” is an astounding observation of just how many of our rural communities are desperate for public safety and other resources necessary to thrive. Numerous cash poor villages and towns are in terrible predicaments without any public safety presence and few options. Is there any good news? Yes. Alaska’s mining industry. It continues to weather severe, and of- ten unwarranted criticism, while providing al- most 15,000 jobs in communities around our ^_L_P5`^_^Tc[]ZO`NTYRXTYP^_bZOPaPWZ[XPY_ projects, and several advanced exploration proj- ects are each the single largest property taxpayers in their regions, pumping hundreds of millions of dollars into local economies and providing criti-
The Alaska Miner
October 2019
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absolutely desperate areas of our state. What does such a project look like? As recently reported by KTOO news, the Donlin Gold project is currently busi- er renovating a century old church in Chuathbaluk than building a mine because caring for their neighbor is L STRS []TZ]T_d 0]TN 8Z] - gan Sr., sub deacon of the Russian Orthodox church said, “we can’t express our thanks (to Donlin) …like thanks from the heart from the whole village.” Don- lin spokesperson Kristina Woolston simply stated, “it was the right thing to do.” Friends, this is generous, peaceful and life-renewing service in cooperation with the community. Alaska’s mining industry employs Alaskans, whose concerns and burdens for the environment and a better life are the same as our own. Our mining industry routine- ly works with their neigh- MZ]^_ZSPW[LWWPaTL_P^`ʬP] - ing and improve the lives of their region. I think it is fair to say most Alaskans want a well-reg- ulated mining industry to ʮZ`]T^S TY Z`] ^_L_P LYO desire to encourage more of this type of investment. But it will be necessary to stop the polarization and divi- siveness that comes from caustic rhetoric, inaccurate information, and a false di- chotomy that says its either mining jobs and infrastruc- ture or protection of the en- vironment. Our modern-day mines in Alaska have repeat- edly shown that both needs can be well accommodated. The future of our state de- [PYO^ZY_SPPʬZ]_ZQX`W -
tiple industries and entrepreneurs working together to move us for- ward into a more secure future. 0aP]d ^`NNP^^Q`W XTYP T^ LY exciting story of new life being breathed into Alaska. We need more of these stories today. This commentary is dedicated to the memory of my friend, the late Alaska Sen. Chris Birch, a mining engineer and a strong champion of responsible natural resource de- velopment.
Rep. Chuck Kopp is the Alaska State House Representative for District 24 in South Anchorage, which en- compasses the neighborhoods of Bayshore, Klatt, Southport, Old Seward and Oceanview. Rep. Kopp was born and raised in Alaska, is a ]P_T]PONL]PP],WL^VL[ZWTNPZʯNP] having served as the Chief of Po- lice in Kenai from 2002 to 2008, a small-business owner, and is a life- WZYRNZXXP]NTLWʭ^SP]XLYTY-]T^_ZW Bay.
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Changing the way business is done in Alaska
October 2019
The Alaska Miner
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8VEGM-EVX^ Millrock Resources Inc.
BY LEE LESCHPER I was born and raised in Anchorage, AK and cur- rently live out in Chugiak, Alaska. In the ‘70s My fa- ther and his best friend drove the Alcan up to Alaska in a beat-up old van with just his dog and his favorite rocking chair and that turned into the beginning of our families start in Alaska. 4R]Pb`[NLX[TYRʭ^STYR^bTXXTYRTY-TR7LVP every summer and riding the zipper at the carnival during Fur Rondy. Years and years later, I am happi- ly married to my husband, Brian and we have a very smart, creative and funny teenage boy, Trevin who is in 8th grade this year. Outside of work, I still love _ZRZNLX[TYRʭ^STYRLYO^bTXXTYRM`_LW^ZWZaP MPTYR N]PL_TaP bT_S [LTY_TYR OP^TRYTYR ʮZbP]^ LYO more recently getting into gardening. I also really love watching and dancing to live music! 4LX_SP7LYOLYO:ʯNP8LYLRP]QZ]8TWW]ZNV=P - ^Z`]NP^4YNbSTNSXPLY^4bPL]LWZ_ZQOTʬP]PY_SL_^ depending on the day! I started with Millrock almost 9 years ago as a temporary employee with absolutely no experience in the mining industry. I was lucky enough to begin my introduction into mining and exploration with an experienced team of respected professionals. When I look back and see how much knowledge and experience, I have gained throughout my years I am really grateful. Who was your mentor in this industry and what did they teach you that remains true today? ?ST^T^LSL]O\`P^_TZY_ZLY^bP]bT_SU`^_ZYP[P] - son. I started in this industry with no experience in geology, exploration or mining, I was a complete blank slate, but I wanted to learn. Sometimes there comes LY Z[[Z]_`YT_d _Z U`X[ TY SPLOʭ]^_ LYO L^ ^NL]d L^ it was, I did it and I am and will always be thankful for those that helped me. Gregory Beischer and Phil St. George believed in me and gave me a chance and I wouldn’t be here today in this position if it wasn’t for them both. Kyle Negri, the OG of Millrock, man — I have really learned so much from him, not only is he one of the most intelligent, professional, most genuine person I have ever worked with, he has always made _TXP_ZLY^bP]XdXLYd\`P^_TZY^LYO^SZbXP_T[^ and tricks that have made my job go so much more smoother. The next few years I did a lot of my own ]P^PL]NS ^_`OdTYR L^VTYR \`P^_TZY^ LQ_P] \`P^_TZY^ short course after short course, online webinars etc. to teach myself about land management here in Alaska as well as Canada and Mexico. I wanted to grow, I wanted _ZPcNPWTYXdʭPWOLYO4\`TNVWdQZ`YOZ`__SL__SP]P were not a lot of people out there that do what I do. So,
I pooled all the knowledge from everyone I knew and trusted, from geologists to mining attorneys. Ramona Monroe from Stoel Rives, I can’t tell you how many hours we have spent on the phone, hashing out issues, reading and re-reading over state regulations and stat- utes, she is always my go- to person and she gives the
best advice, even if it isn’t about mining!
What lessons have you learned that you want to share with new miners? Make sure to do a thorough due diligence! As a Land Manager, this is one of most important parts of my job and any new miner or explorer should know the history of your land, be familiar with the States reg- ulations and be sure to get involved! AMA is a great resource; the breakfast meetings and the State Over- sight Committee meetings are both very informative! What was one experience you will never forget? ;]ZMLMWd Xd ʭ]^_ ,8, .ZYaPY_TZY TY bSPY they were still at the Sheraton Hotel. I was shocked and inspired at the same time. As a lifelong Alaskan I really had no idea how much this industry meant to so many of my fellow Alaskans. You could just feel the excitement and comradery in the room. It really opened my eyes and made me feel like I was becoming a part of our Alaska mining family! What do you love most about this business? The people, hands down. I have met so many won- derful people in this industry, some have become great friends. Where do you see mining in Alaska in 50 years? I hope we continue to work on State regulations and statutes that have been creating ongoing issues for Alaska miners and explorers. I really see a need for some major changes and if we can all come together and work out these issues, I think mining in Alaska can be very prosperous for all of us and be a great place for future investments from around the world. What do you see as our biggest challenges? And oppor- tunities? I already mentioned issues with our state regula- tions, which I really do think is a big challenge, but I
The Alaska Miner
October 2019
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have the information to make my own educated de- cision about this industry. We have the opportunity to reach out to people who are on the fence or even the other side and bring them into the reality of what mining really is. What does AMA mean to you? AMA, to me, means support of this industry. It means friends working together to achieve the best outcome for all Alaskan miners and explorers. It means family, because what AMA and our members strive to LNNZX[WT^S _ZRP_SP] LʬPN_^ ^Z X`NS XZ]P _SLY U`^_ Z`]UZM4_LʬPN_^Z`]QLXTWdWTQP4SLaPYPaP]bZ]VPO for an industry where there is such a bond between others, even competing companies. It is inspiring to be part of AMA and this industry. Anything else you’d like to share? .ZXP_Z_SP,YY`LW.ZYaPY_TZYTY9ZaPXMP] 0^ - pecially if you have never been and especially if you want to know more about mining. Also, I really want to thank AMA for the honor of being chosen for this month’s article. Women in this industry are coming out in full force and I am PROUD to be one of them! ROCK ON!
believe the real challenge is that there seems to really be a lack of knowledge between the state and our min- P]^LYOPc[WZ]P]^LYOSZb_SZ^P]PR`WL_TZY^LʬPN_Z`] jobs, companies and livelihood. Natural Resources is a large part of what Alaska is and what the people of ,WL^VLOZ?ST^^SZ`WOYɪ_MPLOTʯN`W__L^V_ZM`TWO that bridge to create a successful mining environment _SL_MPYPʭ_^MZ_S_SP^_L_PLYO_SPXTYP]^ What keeps you awake at night? My teenager! But on a serious note, the opposing side, the “anti” mining groups and mind sets of peo- ple against this industry keeps my brain running at high speed. As someone who now really understands how important and how integral this industry is to our daily lives, I can’t fathom how “closed mined” people really are, usually with very little information backing their very “spirited” feelings. BSPY 4 _STYV MLNV _Z dZ`] \`P^_TZY ZY bSL_ Z`] greatest opportunity in this industry is, I think this is a big one. I know that there are people out there that have no idea (even with all our educational outreach) SZbXTYTYRLʬPN_^PaP]dZYPZQ`^4VYZb_ST^MP - cause I was once a person who knew very little and only saw anti-Pebble commercials on TV and didn’t
October 2019
The Alaska Miner
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Q & A with Commissioner Feige on the future of mining The Alaska Miner asked Corri A. Feige, Commis-
sioner of the Alaska Department of Natural Resources, to share her insight into current and future issues LʬPN_TYRXTYTYRLYO_SP^_L_PZQ_SPTYO`^_]dL__SP local, state and national level. Feige was appointed as Commissioner by Gov. Mike Dunleavy in November 2018.
The governor pledged after election to minimize _SPM`ORP_N`_^LʬPN_TYRLRPYNTP^^`[[Z]_TYR]P^Z`]NP development like yours — what are you doing to make sure that happens?
DNR is working with the Gover- YZ]ɪ^ :ʯNP LYO _SP :ʯNP ZQ 8LY - agement and Budget to demonstrate how every dollar spent on DNR’s ac- _TaT_TP^]P_`]Y^L^TRYTʭNLY_WdSTRSP] amount to the State’s General Fund. We are also taking a very close look within the department at all of our activities, prioritizing them against what grows the economy and jobs, and what services Alaskans rely upon DNR to provide. From that evaluation, we are prioritizing our functions and ensuring that DNR’s structure and
What’s surprised you most? What surprised me most was a realization that the resources sector of the state’s economy is beginning _Z R]Zb TY ^TRYTʭNLY_ bLd^ ɨ ]PLW upticks in mineral exploration as well as oil and gas — but that DNR was incredibly stressed and deplet- ed from the loss of both personnel and resources. It was apparent that we needed to “rally the troops” and
CORRI A. FEIGE
[]ZNP^^P^ L]P L^ Z[_TXTePO LYO PʯNTPY_ L^ [Z^ - sible. We have a responsibility to Alaskans to not be an obstacle to progress and economic growth. How is the relationship between State and Federal agencies changing? The State-Federal relationship has been chal- lenged over the past few years — lots of bureau- cratic deadlock and frustration. But with a new Administration in Washington, D.C., and new leadership in the local Federal agencies like BLM, that dynamic is changing! Our teams are talking more, having meaningful discussions about how to progress important projects like the Ambler Road and lifting Public Land Orders. BLM has been LR]PL_[L]_YP]TY_ST^PʬZ]_4ɪXPYNZ`]LRPO_SL_ we now have real partners in trying to achieve some of Alaska’s long-held priorities. Big new oil discoveries ... are we headed for anoth- er Alaska boom? I believe that we are! These are very exciting times for oil exploration on the North Slope. New technologies and new data have given us new PdP^TY_ZZYPZQ_SPbZ]WOɪ^XZ^_[]ZWTʭN[P_]Z - leum provinces. We expect the exploration boom to continue for the next several years, and I antic- ipate we will have a number of new discoveries as a result of that work.
make some good decisions about how DNR does its work so we can best support explorers and producers to help grow the economy out of the recent recession. How can we miners support and improve the rela- tionship with your team? As project plans begin to take shape, I encour- age people to come talk to DNR early and often. The more clarity we have on a project, the more we can do to help make the regulatory process XZ]PPʯNTPY_BPNLYSPW[LaZTOOPWLd^TQbP`Y - derstand the scope of a project or program. We re- ally want our miners to be successful and to spend L^X`NS_TXPTY_SPʭPWOL^_SPdNLY What are you proudest of so far, related to Alaska mining? I am incredibly proud of the growth in Alas- VLɪ^XTYTYR^PN_Z]4_bL^U`^_LʮPORWTYRTYO`^_]d MLNVbSPY4ʭ]^_NLXP_Z,WL^VLTY$$"LYOYZb T_T^L^TRYTʭNLY_[L]_ZQ_SPUZMML^PTY^ZXPZ`] most remote locations. There is real, grassroots, exploration work going on and discovery success coming as a result; and we have world-class com- panies operating in Alaska. All of that will attract more interest in Alaska’s mineral potential, put- ting us on a very positive trajectory for the mining industry.
The Alaska Miner
October 2019
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PROUDLY PROVIDING ALASKA with underground, surface and helicopter supported core drilling for mineral exploration and geotechnical work.
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One man’s determination led to Palmer Project in Haines
SPECIAL TO THE ALASKA MINER The joint venture between Constantine Metal Re- sources Ltd. (51%) and Dowa Metals & Mining Co., Ltd. (49%) achieved several milestones recently, including the addition of a second deposit to their polymetallic mineral resource, permitting for an underground exploration ramp, and publishing of L [Z^T_TaP ;]PWTXTYL]d 0NZYZXTN ,^^P^^XPY_ ,^ exploration moves ahead toward development, we take a moment to look back at the initial discovery that has fueled 50 years of exploration at the Palmer Project in Haines. That exquisite sense of feel In California in the early 1960s, Merrill Palmer was a Depression-era baby, Korean War veteran, Califor- nian and avid woodsman who heard that the Alaskan wilderness could give him the means to provide for his wife and two young sons. He loved his beat-up ’57 Chevy but didn’t trust it enough to take it on the long trip, so in 1964 he bought a motorcycle and pointed it northward. In Haines, Palmer made fast friends and ended up at the US-Canada border for a visit. In the old log cab- in there, a picture window looks out toward a certain mountain across the river. Out of the thousands of peaks between California and Alaska, as he looked at this one, he suddenly felt something... extrasensory perception, the woodsman’s sixth sense, a hunch. “Because it happened to me in such a dramatic way _SPʭ]^__TXP4OZYɪ_TRYZ]PT_ɮ;LWXP]^Ld^P\`L_TYR the moment in the cabin to the moment he met his wife. “The second I’d seen her, I knew our lives would be involved together. And I went on to marry her. I just knew.” To answer the mountain’s call, he crossed the Klehini River on foot and arrived at the base of Mt. Henry Clay where he and his hiking partner sat down to rest. That’s when he saw something, and suddenly felt it again. “You see that small reddish rock over there?” he said. “My life is going to be involved with that rock. I want to you remember this moment.” Then Palmer bLWVPOZaP]LYO[TNVPOT_`[4_bL^^\`L]T^SLYTYNS LYOLSLWQ bTOP LYO ST^ ɭPc\`T^T_P ^PY^P ZQ QPPWɮ kicked in. He doesn’t have only one intuitive gift, as it turns out. The stone’s unusual weight for its size gave STXST^ʭ]^_NW`P_SL_T_NZY_LTYPO[]PNTZ`^XP_LW^ When Palmer’s companion felt sure he was in the
wilderness with a crazy man, Palmer didn’t blame him, and he didn’t argue. He let the rock’s laboratory results speak for themselves. This was no ordinary stone. They returned to the area, found more promising samples, and ^PY_ _SPX Zʬ _Z MP L^^LdPO — lingo for “tested to deter- mine exact mineral content.” But when they didn’t all as- say the way he’d hoped, “that was the beginning of the work,” as the newly minted prospector put it. A hard-driving spirit Hard work it was. Law stated that a person had to physically post stakes in order to claim a plot, and the terrain around Mt. Henry Clay was steep, dangerous, icy, and most of all, remote. Palmer had to tackle all of it. Although he lacked any formal training in geology, (“I was the dumbest prospector to ever go prospect- ing,” he’s been known to say) Palmer’s extraordinary senses served him well over the next three decades and he discovered promising mineral deposits that entire teams of geologists did not. In all, he staked 340 claims, some on lonely days, some during a “rush” while com- [P_TYR[]Z^[PN_TYR_PLX^TYZ_SP]SPWTNZ[_P]^ʮLYVPO his, racing each other to hop out and drive stakes. In the decades that followed, Palmer became a piv- Z_LW ʭR`]P TY _SP 3LTYP^ -Z]Z`RS LYO bL^ L^VPO _Z NZYO`N_ T_^ ʭ]^_ _TXMP] TYaPY_Z]d _Z SPW[ OP_P]XTYP loggers’ yearly sustained yield. In 1979, he ushered in _SPʭ]^_3LTYP^>VLRbLd7LYO@^P;WLYLYOTY$# SPW[PO[PY_SP.STWVL_-LWO0LRWP;]P^P]aPɪ^QZ`YOTYR charter, signed by Lynn Canal Conversation, the Na- tional Audubon Society and other groups. Throughout the years, he says, he always kept the well-being of the community front and center in his mind. From 1969 to 2006, Palmer invited 15 companies to explore the property, and all 15 came and went. Often Q]`^_]L_PO;LWXP]YPaP]QPW_OPQPL_PO?SL_ʭ]^_UZW_ZQ destiny always burned in him, even when, in 1992, his claims almost slipped out of his hands forever. That bL^_SPdPL]LYPbQPP^_]`N_`]PNLXPTY_ZPʬPN_QZ]@> mineral claims which meant he suddenly owed $60,000 [P]dPL]BSL_bL^SPRZTYR_ZOZ*3PNZ`WOYɪ_LʬZ]O that himself. In the nick of time, a mineral exploration MERRILL PALMER
The Alaska Miner
October 2019
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company agreed to lease his claims and cover the fees. Palmer came within a hair’s breadth of kissing 25 years of prospecting goodbye. Finally, a foothold Palmer said his idea in 1997 to visit Vancouver and VYZNV ZY 2L]ʭPWO 8LNAPTRSɪ^ OZZ] bL^ ZYP ZQ ST^ best. MacVeigh believed in the Palmer Property even while he himself changed companies. A welcome turn- ing point arrived when MacVeigh decided to support a Master’s Degree thesis on the project. “One of the biggest problems I’d have,” Palmer says, “is I’d have several geologists, but never one guy who’s seen the whole thing. But with [the master’s student] Darwin Green and everybody, they’ve been there, so we don’t have those problems anymore.” ´,ZDQWHYHU\RQHWRNQRZWKDW,KDGRYHUWKH\HDUVVHYHUDOSURV - SHFWLQJFRPSDQLRQV(YDQ%XUQKDPZDVWKHÀUVWWRMRLQPHLQWR WKHZLOGHUQHVVRIFOLIIVDQGQRURDGV$IWHUWZRWULSVZKHUH(YDQ DQG,KDGQHDUIDWDOLQFLGHQWV(YDQKDGWKHJRRGVHQVHWRFDOOLW DGD\EHIRUHRXUJRRGOXFNGHVHUWHGXVEXWE\WKLVWLPH,NQHZ ZKHUHWKHRUHZDVFRPLQJIURPDQGDVNHG'RXJ0RUODQWRKHOS PH:HPDGHWKHGLVFRYHU\DQG'RXJEHLQJDWRXJK:RUOG:DU ,,1DY\9HWHUDQKHOSHGZLWKDORWRIWKHKHDY\OLIWLQJWRVWDNLQJ WKHÀUVWFODLPVDIWHUZKLFKKHKDGWRTXLWWRPDNHDOLYLQJIRU KLVZRQGHUIXOIDPLO\0\EURWKHU9LFWRU3DOPHUKHOSHGRYHUWKH \HDUVZKHQKHFRXOGTXLWÀVKLQJWRPDNHDOLYLQJWRDVVLVWLQWKLV PLQLQJYHQWXUHWKDWZDVQ·WSD\LQJYHU\ZHOO6RPHWKLQJOLNH]HUR
The next major boon came in 2006 when MacVeigh brought his geological vision to a company formed ^[PNTʭNLWWd _Z Pc[WZ]P LYO M`TWO _SP ;LWXP] ;]Z[P]_d into the promising mineral project we know today. Reliable, steady livelihoods are not a foregone con- clusion to the octogenarian. Palmer knows what hun- ger feels like; sometimes, growing up, there wasn’t enough to go around. And he witnessed even worse fates while serving as a soldier along the North Korean border. The desire to contribute to society’s well-being kept him motivated about the Palmer Project through nearly 40 years of false starts — what lies underground “is a gift for the people,” he said. “I can’t think of a better asset for them or for every- one. Civilization is based upon mining. Without suc- cessful mining, you don’t have a civilization.” GROODUVSHUGD\%XWZKHQZHÀQDOO\JRWHQRXJKPRQH\WREXLOGD URDG9LFWRUSLRQHHUHGWKDWURDGULJKWXSWKHPRXQWDLQWRDEHQFK ZKHUHQRHTXLSPHQWEXWDKHOLFRSWHUKDVEHHQVLQFH$IWHU'RXJ 0RUODQPDGHKLVWZR\HDUFRQWULEXWLRQ,PHW5RQDOG5DOVWRQD 'HFRUDWHG8QLWHG6WDWHV0DULQH9LHWQDP9HWHUDQDQGWRXJKLV KLVPLGGOHQDPH1RPRXQWDLQWRRVWHHSQRGD\WRRORQJDQGDOO LQJRRGFKHHU5RQ·VXQFRPPRQJRRGVHQVHVHUYHGXVYHU\ZHOO NHHSLQJRXUFORVHFDOOVWRDPLQLPXPWKHVDPHZD\KLVOHDGHU - VKLSDVSRLQWPDQRQLQIDQWU\SODWRRQSDWUROEURXJKWDORWRIJX\V VDIHO\KRPHIURP9LHWQDP,WKDVEHHQP\KRQRUWREHLQWKHÀHOG ZLWK5RQDQGWRNQRZZHKDGHDFKRWKHU·VEDFNFRYHUHGLQDWLJKW VSRWµ²0HUULOO3DOPHU
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The Alaska Miner
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