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.
The official magazine of the Alaska Miners Association and the mining industry in Alaska
AlaskaMiners.org
October 2020 Volume 48, Number 10
INSIDE THIS ISSUE n AMA and Miners Go Virtual n Annual Convention Preview n 2020 Legislative Election Guide n Faces: Donlin’s Dan Graham Mining strength Alaska miners work through difficult year
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Executive Director’s Report
covered this previously, but it is so important to remember that major accomplishment on behalf of our industry and the champions in the Legislature who ensured its passage. Once field season was underway, we continued to share COVID-19 information and at the same time, began to see the policy side of our world resume to working on regula- tions and other requirements previously in the works before the world was so suddenly interrupted. Issues like National Park Service regulations revisions to implement the Su- preme Court Sturgeon decision, new mining regulations following the passage of SB155, a total exemption of the Roadless Rule in the Tongass, new Executive Orders to grow the mineral supply chain, and so many others affecting our miners. September saw a still very severe pandemic situa- tion, and it became clear we would not be able to host the in-person Annual Convention we had all hoped for. Again, the decision was met with an outpouring of support from our membership and a Convention Committee that immedi- ately pivoted to working toward a virtual event to keep our members apprised of important issues and project updates. I am so grateful and proud of the creative and tireless work of this Committee. You will see extensive details in this issue for the virtual event scheduled for Convention week of Monday, Nov. 1 through Thursday, Nov. 5. The event will be free to attend, which we hope will increase awareness of the industry and of our association. You’re likely aware that cancellation of our two con- ventions is a significant financial hit for the organization. Funds pledged from our supporters well exceed the cost of holding events; they fund our mission year-round. Like so many others, our revenue stream has been severely impact- ed, and regardless of the results of the November election, there is no question that as an industry we will be busier than ever. We are hopeful that you will consider helping the orga- nization through 2020 and into 2021 in one of the following ways: First, many companies and individuals usually sponsor the event and incur travel, lodging and other costs to attend our Convention. We are making the virtual event free so that nobody is prevented from attending, but if you are able to make a contribution toward either the event or AMA, the registration form for the Convention will include a place for you to do so. Second, the AMA Executive Committee has authorized a fundraising drive in which all members and supporters will receive an ask to help support AMA so that we may contin- ue our work moving forward. There’s not enough room to detail it in this column, but I humbly ask that you review the letter we send and consider donating in an amount that you or your company can manage. I still believe that together, we will get through this time, and I look forward to resuming life with a semblance of normal.
Dear Alaska Miners:
It’s October, we’re waking up to frost and we are now eight months into the COVID-19 pandemic. I know there are days when we feel more confused than ever, but if you look back, we really have come a long way in navigating the new set of conditions in which we live, work and play. That is certainly the case at AMA. The first major disruption to business as usual came with us cancelling our Spring Convention in Fairbanks, a heartbreaking move as we’d been hard at work for months planning this biennial event. But this difficult decision was met with grace, understanding and support from our mem- bers, and we all kept an optimistic view that’d get through this time and look forward to resuming life with a sem- blance of normal. We began by working together with our year-round op- erations, ensuring that mining was classified as an essential industry and we can proudly say that the proper precaution- ary measures were put in place by industry and approved by the government agencies responsible for overseeing busi- nesses during the pandemic. Mining companies worked together, branched out to collaborate with the oil and gas industry, and together as Alaskans, we were able to adopt responsible operations plans and look toward developing protocols for our placer and ex- ploration seasons that come with spring. Again, we worked across the industry to share best practices and advise pro- tections that allowed these miners to mobilize across Alaska. Also, during this time, we saw a major victory as SB155, the mineral tenure bill, was passed during the final days of the Legislature prior to taking a COVID safety recess. We’ve
Deantha Skibinski AMA Executive Director
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October 2020
2 Executive Director’s Report 4 Letter from President Bill Jeffress 6 2020 AMA Convention Goes Virtual 16 Faces of Mining: Dan Graham 24 DNR New Rules Under COVID-19 26 UAF Department Head Honored 30 Election Voter Guide 60 Mining Business and Service Directory 74 In Memoriam TABLE OF CONTENTS
The official magazine of the Alaska Miners Association and the mining industry in Alaska
ON THE COVER: More than ever during this challenging year, we’re reminded that Alaska mining is all about family- -our industry family, and also the thousands of Alaska families supported by their hard-working miners. On the cover Marzena Whitmore hugs her father Jeremy, a miner at Kensington Mine, during a Kensington Family Days at the mine in 2007. Photo Courtesy Kensington Mine THIS PAGE: Donlin Gold is one of several major Alaska mine projects moving forward despite Covid-19 and permitting challenges. Here Donlin employee Daryl McKindy, of McGrath, examines equipment at the project site. Photo Courtesy Donlin Gold
The Alaska Miner is dedicated to those who work in and support the mining industry in Alaska, its commitment to the people, and resources of our state. 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.
EDITORIAL CALENDAR
ALASKA MINERS ASSOCIATION STAFF
January 2021 Legislative and Season Preview April 2021 Project Updates July 2021 People in Mining October 2021 Annual Anchorage Convention
Executive Director
Deantha Skibinski Jennifer Luiten Darlene Strickland
Membership and Fundraising Director
Bookkeeping and Membership
EXECUTIVE BOARD
BRANCH CHAIRMEN
Bill Jeffress President, SRK Consulting, Anchorage Bartly Kleven First Vice President, Kinross–Fort Knox, Fairbanks Lorali Simon Second Vice President, Usibelli Coal Mine, Healy Kim Aasand Treasurer, Aasand & Glore LLC., Anchorage
Ted Hawley Anchorage Lorali Simon Denali Mark Huffington Fairbanks Liz Cornejo Haines Jim Clark Juneau
Houston Morris Kenai Blake Bogart Nome Andrew Spokely Ketchikan/
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.
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October 2020
The Alaska Miner
President’s Message From Bill Jeffress
COVID-19, Politics and Mining
Just when the Alaska mining industry, small and large operators, believe there is a somewhat set course to deal with COVID-19 and more typical operating issues, we find ourselves in the middle of the biggest political game in decades. C ancellation of the 2020 AMA Convention and
that are controversial and a pain to work through, but the state provided the ways and means to ensure mining can continue. Just when the Alaska mining industry, small and large operators, believe there is a somewhat set course to deal with COVID-19 and more typical operating issues, we find ourselves in the middle of the biggest political game in decades. Natural resource development projects are governed by decades of federal and state statutes and regulations. Oh, let us not forget case law set by federal and state judiciary. Project environmental reviews have numerous provisions for checks and balance and has the most rigorous process in the world. On one hand our political leaders tout the agencies reviewing projects and the process, but in creeps uncertainty based on political whims and personal bias. Hopefully, some of the theatrics will wean away after the November elections. Alaska miners and other resource development industries have other concerns regarding the economic struggles and uncertainty on how new federal and state processes will be implemented, such as the new federal definition of Water of the United States (WOTUS) and state statutes and regulations related to mineral tenure (SB155) and Instream Flow Reservations. The Alaska Miners Association will continue to work hard on these issues and represent the industry to the best of our ability, which also means we will continue to rely on the experience and expertise of our membership as these and new issues arise.
Trade Show is just one aspect of the collateral damage inflicted by the COVID-19 pandemic. Travel restrictions, uncertainty as to the availability of the Dena’ina Center and potential capacity limits were part of a hard decision by the Convention Committee and Executive Board to cancel the event. AMA staff reviewed results from the survey, tracked other trade organizations’ status and reviewed multiple options for a virtual trade show, technical sessions and short course before presenting all the options to the Convention Committee and Executive Board for a final decision. Aside from cancelling the largest fundraiser that ensures the sustainability of AMA, we have lost our greatest venue for new project updates, technical short courses, regulatory updates, trade show, mining district and AMA chapter reports, and the best form for networking. This is a major setback, but now the industry and AMA are focusing on what the future brings and how we will be prepared to face new challenges that COVID-19 presents. The State of Alaska and local communities have established emergency orders and rules that have allowed what has been classified as an “essential industry” to continue operating in such a way as to protect workers and susceptible communities. Alaska Critical Infrastructure COVID-19 Community / Workforce Protective Plans and instructions on developing plans have given the industry the tools needed to continue working the 2020 placer mining season and set a standard for the larger year-round operations. There are provisions required in the plans
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The Alaska Miner
October 2020
Missed a past issue? Or want to share a story? All issues of The Alaska Miner Magazine and The Alaska Miner Journal are online at the Alaska Miners Association website: AlaskaMiners. org/publication. Help us spread the good news about mining in Alaska!
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October 2020
The Alaska Miner
AMA convention goes virtual for first time AMA Convention 2020 See Page 10
COVID-19 pandemic continues, with our dedication and com- mitment to connect, educate and advocate for our industry. Our Convention Committee has been meeting since August to evaluate what aspects of the convention could be successfully held in a virtual format. We are dedicated to ensuring this virtual convention is not a strain on the organization’s re - sources and that the sessions provide value to our members. The Convention group whole- heartedly pitched in to ensure
We look forward to providing great experience for all Our favorite week of the year, the annual Alaska Miners Asso- ciation annual convention, is al- most here. And while the week has not changed — Nov. 1-5 — virtually everything else has! This will be our first virtual convention, combining our re- spect for member safety as the
for a schedule of sessions and short courses.
continuity and member engage- ment at highest level possible virtually. On the following pages we have provided a basic outline of our virtual convention, with the expectation that the events will evolve and expand as we draw closer to convention week. Watch your emails and AlaskaMiners.org for daily updates. While some events, like our hugely popular networking eve- nings, meals and annual banquet are not possible virtually, a lot of the rest of what you love about convention is still planned. This is also election week, with huge implications both locally and nationally for Alaska miners, so with our sister organizations we are planning to host a virtu- al election watch party Tuesday night, Nov. 3. Our goal is for this to be in a fireside chat setup in one of our homes, on camera with a live feed online in which we hosts discuss issues as the election results roll in that folks can tune into from their own living rooms. Please plan to join us virtually for the entire week of events!
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The Alaska Miner
October 2020
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AMA Convention 2020
AMA Committees have begun to meet and conduct business via Zoom.
Zoom provides gateway to sharing information
AMA’s 2020 virtual convention will be held on the Zoom video conferencing platform with sup- port from GCI. What Is Zoom? Zoom is an online audio and web conferencing platform. Peo- ple use it to make phone calls or to participate in video conference meetings. It was founded in 2011 by Eric Yuan, a former Cisco executive. Cisco offered the WebEx web conferencing platform, which remains a competitor in the conferencing space today. Yu- an’s competitor, Zoom, evolved quickly; the service launched in 2013 and had a million users by the end of the year. Currently, research shows Zoom is the most commonly
used conferencing tool ahead of similar solutions like Skype and Google Hangouts. What Is a Zoom Meeting? Zoom’s core product and the way most people know the ser- vice is Zoom Meetings. Zoom Meetings are the audio and vid- eo conferences that allow two or more people to communicate on- line. Zoom Meetings happen in the Zoom app and can be started and shared by anyone. These meet- ings can even be started for free via the app, if you have it in- stalled, or via the Zoom website. You can also use Zoom on your smart phone. How Does Zoom Work? You don’t need a paid sub-
scription to start using Zoom. In fact, if someone else sets up the Zoom Meeting and invites you, all you need to do is follow the in- structions in the email invitation to start using Zoom. You’ll need to click a link to install the Zoom app, and then enter the confer- ence code to sign into the meet- ing to which you’ve been invited. What to Know Zoom is a Web conferencing platform that is commonly used for audio and/or video confer- encing. You need a free account to start your own calls for up to 100 people; paid versions can sup- port up to 1,000 people. You can make unlimited phone calls, hold unlimited meetings and even record both.
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The Alaska Miner
October 2020
We major on the Miners.
Online Core Shack, Prospectors’ Tent and Claim Post We’re continuing to expand the exciting opportunities that a virtual convention provides for our always-popular Core Shack, Prospectors’ Tent and Claim Post. We’re able to expand the information and connections we offer online for our member companies and potential projects to display their work. MSHA Training While we know many of you depend on the convention for annual MSHA training, do not worry, MAPTS has you covered all year! They’ve been and will continue doing virtual trainings. MAPTS was established in 1979 to deliver training, development and consulting
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October 2020
The Alaska Miner
AMA Convention 2020
Christine Lawley, Resolution Minerals, 64 North Project Eric Buitenhuis, Tectonic Metals, The Tibbs Gold Project Session 4 - Wednesday Afternoon 1-3 p.m. - Intermediate and Advanced Stage Exploration Projects John Shively, Pebble Andy West, Ambler Metals TBA Thursday, November 5: Session 5 - Thursday Morning 9-11 a.m. - Policy Session Ralph Samuels, Elections Recap Alan Weitzner, Executive Director, AIDEA Eric Fjelstad, Perkins Coie LP, US Supreme Court Maui Decision Impact to Alaska Session 5 - Thursday Afternoon 1-3 p.m. - Mining Operations Jeremy Brans, Kinross, Acquisition of Peak Deposit Teck Red Dog Update Mark Kiesseling, Coeur Alaska Kensington Mine TBA
Placer Mine Permitting Short Course Monday, Nov. 2, 8-Noon, 1-5 p.m. The course is intended to provide the small mine operator with information on permitting issues that apply to the industry. This short course is designed to provide small mine operators with information to help them navigate the permitting process. Presenters will cover the gamut of federal, state and Fairbanks North Star Borough permitting and compliance requirements for mining operations.
Tuesday, Nov. 3: Session 1 - Tuesday Morning 9-11 a.m. - Geoscience Investigations ADGGS - Magnetic and radiometric surveys update USGS - Tungsten skarn potential of the Yukon- Tanana Uplands, Eastern Alaska, USA— A mineral resource assessment UAF - Cobalt at Bornite Deposit Session 2 - Tuesday Afternoon 1-3 p.m. - Policy Session Curt Freeman - State of the State of the Mining Industry Kyle Moselle, Executive Director, OPMP Ramona Monroe, Stoel Rives LP, Looking at Mining Rules After SB155 Victor Ross, Stantec, Changes with Corps of Engineers Requirements Wednesday, November 4: Session 3 - Wednesday Morning 9-11 am. - Early and Intermediate Stage Exploration Projects David Hedderly-Smith DH-S and Associates, Metallogenics, Exploration History and Current Industry Activity in the Tanacross Quadrangle, East-Central Alaska
Technology Sessions A dedicated group of
committee members who are working hard to bring the best virtual event possible. We are
continuing to expand program of technical speakers and topics, so watch for the complete list at AlaskaMiners.org. For example, we’ll be able to offer: n Direct links to detailed information from each speaker n Online chatting to continue the conversations with each speaker n Expanded video capabilities
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The Alaska Miner
October 2020
“IMPACTS TO BRISTOL BAY SALMON ARE NOT EXPECTED TO BE MEASURABLE” THE FINAL ENVIRONMENTAL IMPACT STATEMENT
Page 4.24-47
Fifteen years of scientific analysis. $150 million in environmental studies. An objective regulatory review. ONE FINAL CONCLUSION.
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October 2020
The Alaska Miner
Our weekly meetings are back (virtually)! Our thanks to the Seattle Chamber Alaska Business Forum for providing a “photo” of the Zoom meeting focused on Alaska’s mining industry that featured AMA Executive Director Deantha Skibinski, Teck Red Dog’s Greta Schuerch and Alaska Department of Environmental Conservation Commissioner Jason Brune.
We have all missed connect- ing with each other. We will be- gin meeting virtually on Fridays at 7 a.m. for a statewide branches meeting using the Zoom meeting platform. Bring Your Own Break- fast! The Chairs of our eight branches across Alaska have brainstormed as to how to take advantage of one of the few silver linings that come with not being able to hold in-per- son meetings — regardless of lo-
cation, we’ll have a chance to con- nect with each other as one group. To attend all meetings, sim- ply click this link: https://zoom. us/j/94126659157?pwd=T3gzem - 8vUkh0Sks1d0p0eWFxSHV4Zz09 You may also access by going to www.zoom.com and entering the meeting id: 941 2665 9157 and passcode: 879068 We really want to include all of our wonderful members in these meetings, regardless of your ex-
perience with Zoom. Please watch for instructions via emails and call the AMA staff if you need further assistance. Then change the last paragraph to say, AMA Staff has emailed de - tailed instructions for download- ing, connecting to, and operating Zoom. If you need a copy of those or any additional assistance, please contact Jennifer Luiten at jennifer@alaskaminers.org.
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The Alaska Miner
October 2020
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Pebble Partnership CEO Collier resigns
submitted his resignation in light of comments made about elected and regulatory officials in Alaska in pri - vate conversations covertly video- taped by an environmental activist group. Collier’s resignation has been ac- cepted by Northern Dynasty’s senior management and Board of Direc- tors. The Company has named for- mer Pebble Partnership CEO John Shively, a well-known and respected Alaska business and political leader who most recently served as Chair- man of the Pebble Partnership’s gen- eral partner, Pebble Mines Corp., as interim CEO pending a leadership search.
Collier’s comments embellished both his and the Pebble Partnership’s relationships with elected officials and federal representatives in Alaska, including Governor Dunleavy, Sena- tors Murkowski and Sullivan and se- nior representatives of the US Army Corps of Engineers (“USACE”). The comments were clearly of- fensive to these and other political, business and community leaders in the state and for this, Northern Dy- nasty unreservedly apologizes to all Alaskans. Conversations with Collier, as well as others with Northern Dy- nasty President & CEO Ron Thies- sen, were secretly videotaped by two
John Shively returns to take over role EDITOR’S NOTE: See comments provided by Shively about his deci- sion to assume the role as CEO of the Pebble Project on Page 56-57 of this issue. Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE American: NAK) (“Northern Dynasty” or the “Com- pany”) announced that Tom Collier, CEO of its 100%-owned U.S.-based subsidiary Pebble Limited Partner- ship (the “Pebble Partnership”),
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The Alaska Miner
October 2020
unknown individuals posing as rep- resentatives of a Hong Kong-based investment firm with links to a Chi - nese State-Owned Enterprise (SOE). A Washington DC-based environ- mental group, the Environmental Investigation Agency, released the tapes online Monday after obscuring the voices and identities of the indi- viduals posing as investors. “The unethical manner in which these tapes were acquired does not excuse the comments that were made, or the crass way they were expressed,” said Ron Thiessen, Northern Dynasty President & CEO. “On behalf of the Company and our employees, I offer my unreserved apology to all those who were hurt or offended, and all Alaskans.” A former Commissioner of the Alaska Department of Natural Re- sources, senior executive with NANA Regional Corporation, and current Alaska Railroad Corporation Direc- tor, John Shively said the Pebble Project is too important to the region and the state not to proceed, and for every effort not to be made to devel - op the project responsibly in the best interests of all Alaskans. “My priority is to advance our current plan through the regulato- ry process so we can prove to the state’s political leaders, regulatory officials and all Alaskans that we can meet the very high environ- mental standards expected of us,” he said. Thiessen said the two actors pos- ing as foreign investors on behalf of the Environmental Investigation Agency were clearly trying to entrap the two executives into stating there is a defined plan to expand Pebble beyond the 20-year mine life cur - rently being permitted. In this objective, he said, they clearly failed. “The mine development proposal currently being evaluated by the US- ACE, and for which we expect a final Record of Decision this fall, provides for 20 years of mining at an average daily throughput of 180,000 tons, and processing of 1.3 billion tons of mineralized material,” Thiessen said. “What we have said consis- tently, and is reinforced in the ‘Peb- ble tapes’ released this week, is the operator of the Pebble mine may de- cide at some point in the future to propose additional phases of devel- opment, but there exists no formal plan to do so today.”
Thiessen added that any exten- sion or expansion of the Pebble Proj- ect proposed in future would have to go through a comprehensive, multi- year federal and state permitting process. Northern Dynasty is a mineral exploration and development com- pany based in Vancouver, Canada. Northern Dynasty’s principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership (“PLP”), is a 100% interest in a contiguous block of 2,402 mineral claims in southwest
Alaska, including the Pebble deposit. PLP is the proponent of the Pebble Project, an initiative to develop one of the world’s most important min- eral resources. For further details on Northern Dynasty and the Pebble Project, vis- it the Company’s website at www. northerndynastyminerals.com or contact Investor services at (604) 684-6365 or within North Ameri - ca at 1-800-667-2114. Review Ca - nadian public filings at www.sedar. com and US public filings at www. sec.gov.
PROTECTING OUR MOST PRECIOUS RESOURCE
Usibelli Coal Mine produces more than one million tons of coal every year, helping energize Interior Alaska. Yet our most precious resource isn’t coal—it’s the people who mine it. We’ve worked hard to keep our employees safe, and the results are gratifying.
Employees surpassed their all- time safety record in April 2019 and by the end of the year, worked more than 1,000 days without a lost time accident. Our employees are committed to excellence in mining, and in practicing everyday safety—at work, at home and at play.
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October 2020
The Alaska Miner
In each issue of The Alaska Miner, we interview an out- standing leader in and member of our industry. This time we are talking with Dan Graham, longtime miner and new general manager of Donlin Gold. Faces of Mining
Dan Graham Donlin Gold
Who was your mentor in this industry and what did they teach you that remains true today? I don’t believe there is any one single person anyone can point to but rather you become the product of ALL the people you get exposed to over the life of a career. I feel very fortunate to have been able to work with and for the various people, companies and organizations over the years. In your day to day work, you observe good traits you admire and adopt as part of your own mannerisms and habits, and you observe things you disagree with and they serve as good reminders of how not to handle certain situations. What lessons have you learned that you want to share with new miners? Probably the two most important lessons I have learned: (1) this is a small state and small industry — don’t burn bridges. It is incredible how many people recirculate through your working days at different points of your ca - reer. (2) Don’t be afraid to take chances. I had a great ca - reer out of college working for the Usibelli’s (a great fam- ily company) and could have likely spent my entire career there and been very comfortable – but taking the chance to move on and try something new has led to a series of wonderful challenges and opportunities I never would have been able to otherwise experience. Life is good. Also, I am a firm believer that attitude is everything. A positive attitude and good work ethic can overcome many many shortcomings in life. What would you do differently? It seems like you can always look back and be critical of things you wish you had done differently, maybe if you had put in a little more time, pushed a little harder, or whatever it may be — but I hate wasting energy looking in the rear- view mirror. Learn from mistakes and live forward. What was one experience you will never forget? I was working for two business partners who were lifelong schoolyard friends in Dallas — Dick Bass and Herbert Hunt. When I started working for them, they were both into their late 70s or early 80s. Both very suc - cessful businessmen. We were looking at a unique con- veyor system for the project I was managing, and the closest installation was in Jamaica. They wanted to see one in action - so the three of us got plane tickets, I met them in Dallas, and off to Jamaica we went. Herbert was forever the businessman – focused and serious – and Dick (“the Largemouth Bass from Dalass” he would call himself) was the ultimate storyteller – we never could keep him on track. Herbert was constantly telling Dick in his sly, calm way to “Dick - wrap it up” and Dick would respond each and every time in a very boisterous and an- imated fashion “let me finish”. The two were a walking stand-up comedy routine! I was a willing observer trav- elling with them for four days and just taking it all in. A trip I will never forget.
What do you love most
about this business?
The people. Without a doubt. People in this busi- ness love to make a living being outside, moving dirt and building things — a love we all share. The com- radery you find in this busi - ness is rampant and lasting — I cherish that the most.
Where do you see mining in Alaska in 50 years? Well, unfortunately, my vantage point by then will probably be looking up at it from six feet under… but while our society may have visions of a carbon free econ- omy at some point in the future, there is no replacement for minerals. It is a part of our essential needs and min- ing is here to stay. I hope to see us as an industry contin- ue to advance our safety technology, our protections for the environment and our reclamation work so we can be an industry people understand, trust and welcome rath- er than often be viewed with a critical eye and negative connotations from people not familiar with mining like we experience today. I’ve always dreamed what it would be like to be working for a mine project and walk into a public meeting and be welcomed rather than scowled at. Mining’s biggest challenges are perception and ac- ceptance. Mining has made strides in trying to show the public that we are a different industry and society than we were 100 years ago. Mines can and do make good neighbors and provide a great way of living while pro- tecting the land we live and play in. Mining communities like Healy and Fairbanks generally understand this. Ar- eas that have not been exposed to mining nor are famil- iar with mining start at a place of fear of the unknown, which is often based on outdated or misinformation. Alaska’s biggest challenge is getting our fiscal house in order. The Permanent Fund was established so future generations can continue to enjoy the benefits of oil that have been enjoyed by the past generation of Alaskans. That is what the founders of the fund intended — a per- petual benefit. The primary benefits oil has provided to Alaska (besides jobs and business opportunities) have been funding state government and large capital project budgets with no statewide taxes needed (the PFD was an afterthought – not the purpose of the permanent fund). While the days of large capital budgets are behind us, the time for funding government with income from the corpus of the permanent fund is upon us. Our challenge is to come together and devise a realistic fiscal plan that makes use of this well-planned investment the founders What do you see as our biggest challenges? And opportunities?
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The Alaska Miner
October 2020
established as a base for funding government. If more revenues are needed, then broad-based taxes may be next, but spending must be kept at levels that allow taxes to be minimal so the economy driven by private industry can flourish. That’s my humble opinion. Opportunities — The Alaska economy is in a transfor- mational state. Oil is the only commodity that can fill the state coffers as it has for over three decades, but we still have vast, world class natural resources that can provide jobs and support local businesses. This includes timber, mining, a well-managed fishery, and tourism. None of these will ever provide $4 billion per year to fund state government, but they can fuel and drive local economies. Case in point — look at what mining does for the econo- mies of Juneau, the Fairbanks interior, and the northwest region of the state. We have many other parts of the state that need a local driver in their regional economy — that is our opportunity. Photos Courtesy Dan Graham Dan is a big advocate for work-life balance, including spending time on the ice playing “old man beer league” ice hockey, including playing with the legendary Jimmy Reese, 82, at right. Below, he’s also a regular at resource development events like this golf tournament with the AMA, RDC and State Chamber Executive Directors.
CONTINUED on PAGE 18
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October 2020
The Alaska Miner
Faces of Mining
Photo Courtesy Dan Graham Dan loves spending time exploring Alaska with his wife, Kim (not pictured) and daughters Katie (left) and Erika (right) along with their dogs Kilo and Milli.
lenges we face; it is an entity we as projects learn to look to for help and know we can rely on without fail. It is a dedicated group of very few em- ployees and numerous volunteers. What do you do for fun? I do believe a work-life balance is critically important! I continue to play hockey — one of the greats we skate with is Jimmy — 82 years old. He is a driving force to keep us all going. I also enjoy a few rounds of golf each summer — good exercise and I try to make sure every round includes plen- ty of laughter. We get enough stress at work — we don’t need it when we play.
My wife and I enjoy camping and fishing (I think that is a require - ment to live in Alaska). We also en- joy a good warm beach with a cold beer. And honestly, I enjoy tinkering around the house — I have a never- ending “to-do” list that never seems to get shorter for some reason – al- though COVID-19 has helped! After sitting behind a computer all day, it is nice to spend some time in the eve- ning pretending you know how to use tools. Anything else you want to share? I am honored to even be considered for a Faces of Mining profile, much less asked. Thank you.
GRAHAM, CONTINUED from PAGE 17
What keeps you awake at night? For me, it has always been the safety of the workers. When you ac- cept a job in management of a mine or mine project, you also accept respon- sibility for making sure every worker goes home safe and healthy every day. Any time a phone rings late at night, two fears cross your mind — it’s ei- ther about your kids or your crew. What does AMA mean to you? AMA is a place to learn from co-workers; a place to share ideas and collectively devise solutions to chal-
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The Alaska Miner
October 2020
Kinross Gold announces Peak Gold project deal
risk “tuck-in” to supplement Kinross’ existing Alaska operation. Kinross plans to process Peak Gold ore at Fort Knox and utilize the existing mill and infrastructure to benefit both the project and the mine. Highlights of the acquisition: Adds another high-grade, low-cost development project to Kinross’ portfolio n Expect to commence production at the open pit project in 2024, with total production of approximately 1 million Au eq. oz. over 4.5 years at average mining grades of approximately 6 g/t. n Preliminary all-in sustaining costs2 estimated to be in the range of $750 per Au eq. oz. and initial project capital expenditures in the range of $110 million. n Expect to strengthen Kinross’ medium-term pro- duction and cash flow profile. n Numerous exploration targets within Peak Gold’s 675,000-acre land package to potentially increase mine life. Low-risk project leverages Fort Knox mill, infra- structure and successful operating experience in Alaska n Processing ore at Fort Knox avoids mill construc- tion and is expected to decrease execution risk, lower capital expenditures, drive attractive returns, and re- duce the project’s environmental footprint and permit- ting requirements. n Blending higher grade ore from the Peak Gold project with Fort Knox ore is expected to extend mill operation at Fort Knox, reduce overall costs and increase cash flow. n Leverages Fort Knox’s successful 27-year history in Alaska, one of the world’s top mining jurisdictions. Project to benefit local communities, in particular the Upper Tanana Athabascan Village of Tetlin n Project expected to contribute to the state econ- omy and provide additional employment opportunities and benefits. “The relatively high-grade, low-cost Peak Gold project is an excellent addition to our portfolio, as it allows us to leverage our existing mill and infrastruc- ture at Fort Knox and strengthens our medium-term production and cash flow profile. In today’s gold price environment, Peak Gold is an attractive, high-margin project that is expected to generate robust returns,” said J. Paul Rollinson, Kinross Gold President and CEO. “The project is also expected to add to our strong re- cord of socio-economic contributions to our host com- munities in Alaska, one of the top mining jurisdictions in the world.”
Contango ORE Inc. to maintain 30% minority interest in move Kinross Gold Corporation (TSX:K; NYSE: KGC) (“Kinross” or the “Company”) is pleased to announce that it has entered into agreements to acquire a 70% interest in the high-quality Peak Gold project in Alaska from Royal Gold, Inc. (“Royal Gold”) and Contango ORE, Inc. (OTCQB: CTGO) (“Contango”) for total cash consid- eration of $93.7 million. Kinross will have broad authority to construct and operate the Peak Gold project, with Contango retaining a 30% non-operating minority interest. The Peak Gold project is a relatively high-grade de- posit with a large estimated resource base that is ex- pected to commence production in 2024 as a low-cost, open-pit mine. The project, which is located approximately 250 miles southeast of the Company’s Fort Knox mine, is a low-
Arctic engineering and environmental services.
We help mines thrive.
Victor Ross (907) 352-7809
victor.ross@stantec.com Steve Reidsma, PWS (907) 450-1425 steve.reidsma@stantec.com
20
The Alaska Miner
October 2020
PROUDLY PROVIDING ALASKA with underground, surface and helicopter supported core drilling for mineral exploration and geotechnical work.
800-322-3201 • office@ruendrilling.com ruendrilling.com
Photo Courtesy Kensington Mine
Coeur Alaska Kensington Mine achieved record production of 127,914 ounces of gold in 2019.
Coeur Alaska Kensington Mine reports gold record
production of 127,914 ounces of gold in 2019. Celebrating its 10th year of operation in 2020, Kensington has continued strong producing 65,080 oz of gold in the first half of the year. The mine has achieved over 1 million ounces since production be- gan in 2010. Coeur Alaska proposed an amend- ment to its Plan of Operations (POA 1) in December 2018 to increase tail - ings and waste rock storage capaci- ty to support continued production. POA 1 offers environmental benefits of a minimal footprint by using ex- isting infrastructure and enhanced habitat through reclamation efforts that will benefit fish and wildlife. POA 1 is currently being analyzed in a Supplemental Environmen- tal Impact Statement (SEIS) by the
U.S. Forest Service. The Final SEIS is expected to be released mid-year in 2021. The 2020 exploration program at Kensington continues to build on the successes of last year’s drilling campaign by focusing on further ex- panding upper Kensington Zone 30 as well as the Jualin, Eureka, John- son, Raven and Elmira veins. High-grade assay results have been returned from upper Kensing- ton Zone 30, Raven, Elmira and Eu - reka, all of which are located near existing infrastructure and repre- sent new potential resource growth areas. The program is focused on in- creasing resources, which have the potential to be incorporated into the mine plan with continued drilling.
Mine has achieved over 1 million ounces since 2010 COVID-19 has transformed the way we live and work. At Coeur Alas- ka Kensington Mine, these chang- es include modified work rotations, rigorous testing, site-wide health protocols and pre-rotation quaran- tines. Our employees have done an out- standing job adapting to our mod- ified procedures and protecting the health and wellbeing of our work- force, families and communities while continuing their essential work. Kensington achieved record
22
The Alaska Miner
October 2020
Supporting Mineral Exploration and Responsible Development in Alaska’s Mineral Rich Interior
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Doyon’s 12.5 million acres of ANCSA lands extend across Alaska’s mineral rich interior. Much of this is in historic mining districts and areas recognized for mineral potential, such as the Tintina Gold Belt and the Ambler Schist Belt. The region is crossed by roads and navigable rivers, providing excellent access to much of the region. For over 40 years, Doyon has encouraged exploration of its lands, generating numerous gold and base metal prospects. Doyon maintains an extensive data base of prospects generated through its own efforts and years of exploration ventures with qualified parties. Doyon encourages development to promote the economic and social well-being of our shareholders and future shareholders. Contact Doyon Lands and Natural Resources: 907-459-2000 Doyon, Limited • 1 Doyon Place, Suite 300, Fairbanks, AK 99701 www.doyon.com
DNR extends deadlines for mining payments
quiring small aircraft or charter boat operations to perform the necessary activities to maintain their interests. I find that the financial hardship and inability of miners to access their claims, leasehold locations, and leases due to the outbreak of the COVID-19 virus places an inequitable burden on Alaska’s miners to comply with state statutes through no fault of their own, but rather through an act of God. “Finding and Decision According- ly, pursuant to AS 38.05.020(b)(5), I find that it is in the best interest of the state to grant affected persons one year extension for payments required by AS 38.05.210 and AS38.05.211, and associated regulations. Upon writ- ten request to the Division of Mining, Land & Water, received on or before November 30, 2020, stating how the COVID-19 pandemic prevented a min- er from timely performing annual la- bor, paying cash-in-lieu of annual labor, or paying rent on their claims, leasehold locations or leases, the due date for cash-in-lieu of annual labor and rental payments for the 2019- 2020 mining labor year will be ex - tended one year and will be due and must be paid on or before September 1, 2021. “Any miner who did not perform annual labor in the 2019-2020 labor year must pay cash-in-lieu of annual labor in order to maintain their claims, leasehold locations, and leases. In ad- dition to any written request for an extension under this Order, all claim, leasehold location, and leaseholders must still record affidavits of annual labor for the 2019-2020 labor year on or before November 30, 2020. The af - fidavit should detail the performance of the requisite labor performed by September 1, 2020, or whether cash- in-lieu of labor has already been paid, or whether the holder intends to pay cash-in-lieu of labor under an exten- sion authorized by this Order on or before September 1, 2021.” DNR provided these additional guidelines: Guidelines for Seeking Relief To
qualify fora extension for payments of cash-in-lieu of labor or annual rent provided by this Order, claim, lease- hold location, and lease holders must: n Submit a written request to the Division of Mining, Land & Wa- ter on or before Nov. 30, stating how the COVID-19 pandemic prevented them from timely performing annu- al labor, paying cash-in-lieu of an- nual labor, or paying rent on their claims, leasehold locations, or leas- es,andrequestinganextensionofthe due datefor payments of cash-in-lieu of labor, annual rent, or both. The request must be signed and must in- clude: The ADL number(s) or name of the claim(s), leasehold location(s) or lease(s); and the name(s) and cur- rent mailing address of the holder(s). Written requests may be hand deliv- ered or submitted as an attachment to email at dnr.dmlw.mpm@alaska.gov. FAX (907) 269-8949, or mailed to: Department of Natural Resources, 550 W. 7thAvenue, Suite 900B, Anchor - age, AK 99501-3577. Mailed requests must be received by the Department of Natural Resources by November 30, 2020. n The request should explain the underlying reason for the request, as well as how or why COVID-19 fac- tored into the inability to comply with the statutory and regulatory annual mining requirements. All affidavits of annual labor for the 2019-2020 min - ing year must still be recorded on or before November 30, 2020. Failure to record an affidavit of annual labor in a timely manner will result in aban- donment of your claims. n The affidavit must clearly detail if labor was timely performed, if cash- in-lieu of labor was already paid, or if a payment for cash-in-lieu of labor is expected to be paid in accordance with an extension requested under this Or- der. The affidavit must still meet the requirements of AS 38.05.210(b) and AS38.05.240.
12-month extension comes as a result of COVID-19 pandemic A Note From AMA: AMA appreciates the efforts of the Department to accom - modate miners during the unique circum- stances facing us this year. However, his- tory has shown that filings can always be challenged by third parties, and to ensure you are in good standing, we encourage you to file and pay timely as you normally would. The Alaska Department of Natural resources has announced a 12-month extension on most payments due from Alaska miners. Here is the text of that announce- ment from DNR commissioner Corri Feige. “I, Corri Feige, Commissioner of the Alaska Department of Natural Resources, do hereby authorize the extension of payments due under AS 38.05.210 and 38.05.211; pursuant to this Order, an extension of one year is granted as provided below. This Order takes immediate effect upon signature unless otherwise individually noted.” “The outbreak of the COVID-19 vi- rus has caused significant restrictions on the ability of holders of state min- ing interests to travel to the state and to those interests. Restrictions placed on travel by the Alaska Department of Health and Social Services, in or- der to flatten the spread of the virus and defend against over-taxing the state’s health care services, has lim- ited the ability of out-of-state min- ing claimants to travel to the State of Alaska to perform the required annu- al laborer generate sufficient revenue to make cash-in-lieu payments for labor. “Restrictions did not just affect the out-of-state miners but also af- fected the ability of Alaskan miners to generate revenue and travel to and access remote mining locations re-
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The Alaska Miner
October 2020
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