Alaska’s Mining Future Remains Golden
second-largest gold-producing mine in Alaska, is poised for a breakout year. Since acquiring the Pogo mine toward the end of 2018, Australia-based Northern Star has steadily upgraded operations and expanded the mill at Pogo. Last year, this underground mine about 85 miles southeast of Fairbanks produced 279,427 oz of gold, roughly 10% higher than the 254,492 oz produced in 2023. With continued improvements on both the mining and processing sides of the operation, Northern Star expects Pogo gold production to top 300,000 oz this year – an improvement that will help push total Alaska production above the 1-million-oz mark. Production is also trending higher at the third-largest gold-producing operation in the 49th State – Coeur Mining Inc.’s Kensington mine in Southeast Alaska. Thanks to a steady rise in production throughout the year, Kensington produced 95,671 oz of gold last year, a 13% rise over 2023. With gold output increasing steadily every quarter of 2024, from 21,183 oz during the first quarter to 25,839 oz during the final three months, Coeur’s Southeast Alaska mine is on pace to top 100,000 oz of gold in 2025. While Hecla Mining Company’s Greens Creek mine is best known for the roughly 9 million oz of silver it produces each year, the Southeast Alaska operation also
recovers significant gold, zinc, and lead byproducts. During 2024, Greens Creek produced 55,275 oz of gold, which is about 10% less than in 2023 but close to the average for this silver mine that typically produces between 48,000 and 60,000 oz per year. Sundance Mining Group’s Dawson mine in Southeast Alaska adds about 12,500 oz of gold to Alaska’s annual production total. While Dawson is the smallest of the hardrock gold mines, its steady output could make the difference whether 2025 Alaska gold production pushes above the 1-million-oz threshold. Alaska’s more than 200 placer gold mining operations will also help push the state’s gold production total higher, as owners of these mostly family-run operations are eager to begin pushing pay dirt through wash-plants to recover $3,000/oz-plus gold. As momentous as breaking above 1 million oz would be, the Donlin Gold project has the potential to single- handedly accomplish this feat – more than doubling Alaska’s current gold production. This 39-million-oz gold mine project in the Yukon- Kuskokwim region of Southwest Alaska has been on the cusp of development for more than a decade but has been delayed by optimization studies and permitting challenges. — North of 60 Mining News
around $6 billion this year, even with a 20% drop in the production of zinc, the second largest contributor to the state’s mining sector, expected at the Red Dog mine. While breaking above the 1-million-oz-per-year gold production threshold is a momentous milestone for Alaska, output of the precious metal is expected to continue climbing and could break above 2 million oz if the new Donlin Gold owners push that world-class mine project across the finish line. “With 39 million ounces of gold at double the industry average grade, and an optimal location in the prime jurisdiction of Alaska – already the second largest gold- producing state in the United States – we believe that the project could create value for decades to come,” said John Paulson, a hedge fund billionaire that recently bought most of Barrick’s 50% interest in the world-class gold project. With operational improvements at some of Alaska’s other big gold producers and rocketing prices attracting new placer miners, Fort Knox is not the only operation expected to push Alaska’s gold production higher. Northern Star Resources Ltd. believes Pogo, the
With gold shattering the $3,000-per-ounce ceiling without hesitation and Alaska mines poised to break above the 1-million-oz mark this year, the future of Alaska’s mining sector is golden. This combination of record gold prices and production positions Alaska’s mining industry to crush all previous records this year when it comes to the value of the minerals and metals produced in the state. The U.S. Geological Survey (USGS) calculates that Alaska’s mining operations produced $4.7 billion of non- fuel minerals – gold, zinc, silver, lead, and aggregate products – in 2024. Adding the coal produced for in- state power plants bumps this total up to roughly $4.8 billion. The roughly 959,000 oz of gold produced at six hardrock and more than 200 placer mines contributed $2.3 billion, or nearly half, of Alaska’s mineral production value during 2024. With gold prices more than 40% higher than they were at this time last year and production on the rise, more than $3.4 billion of this precious metal could be recovered from Alaska mines this year. This would push Alaska’s mineral production value up to
JCM INDUSTRIES High Density Polyethylene Pipe offers countless advantages for Mining and Industrial Applications. Keep Those Advantages Working with JCM Industries Fittings and Fabrications for HDPE Pipe
Subscribe to Alaska Business
Print + Digital Magazine Subscription
• Mineral Exploration • Precision Lift & Placement • Fire Suppression • Environmental Resource • Oil & Gas • Arctic Operations
REPAIR
CONNECTION
PROVEN IN ALASKA FOR ANY ENVIRONMENT ON EARTH. ANCHORAGE, AK 907-257-1550 PATHFINDERAVIATION.COM
BRANCHING JCM INDUSTRIES, INC. - NASH, TEXAS, USA 75569-1220 Call Toll Free 1-800-527-8482 or 903-832-2581 www.jcmindustries.com RESTRAINT
akbizmag.com/subscribe
20
May 2025 I The Alaska Miner I www.alaskaminers.org
www.alaskaminers.org I The Alaska Miner I May 2025
21
MinerJournal.indd 1
9/29/21 2:44 PM
Made with FlippingBook. PDF to flipbook with ease