It’s a go for high-grade Mahn Choh gold project
Kinross Gold Corp. and Contango ORE, Inc. are proceeding with con- struction of the high-grade Mahn Choh gold project east or Fairbanks and Delta Junction. The deposit is on lands owned by Tetlin Native Corp. about 20 miles southeast of Tok in Alaska’s eastern Interior. Tetlin is on the Tetlin River between Tetlin Lake and the Tanana River. Preliminary construction at the mine has already started and produc- tion of ore is expected to begin in late 2024, according to schedules released by the two companies July 28. Kinross, a major mining company, is managing the project. Kinross also owns the large Fort Knox gold mine near Fairbanks and will own 70 per- cent of the Mahn Choh mine. Contan - go ORE, which owns the remaining 30 percent, is a small minerals compa-
ny that led the initial exploration at Mahn Choh working with the Tetlin village Tetlin Native Corporation, the landowner, holds 100 percent of the mineral rights and will receive the mining royalties. Tetlin is a small village corporation formed under the 1971 Alaska Native Claims Settlement Act, or ANCSA. The community has a population of about 400. It owns 743,147 acres that were formerly in the Tetlin Reserve formed by President Herbert Hoover in 1930. In 1971 ANCSA did away with Na- tive reserves in Alaska including Tetlin and gave local villages the right to se- lect and own reserve lands including mineral rights, a provision Tetlin took advantage of. What’s different in this is that most Alaska Native corporations own- ing lands conveyed under ANCSA are
required to share 70 percent of natu- ral resource income with other Native corporations. But the revenue-shar- ing provision does not apply to Tetlin. Its shareholders get to keep all of the mining royalties Development the mine is expected to cost about $180 million, Contan- go ORE said in a press release, and this includes about $30 million for the purchase of a fleet of heavy bulk ore trucks to move ore from Mahn Choh Fairbanks to the process mill at Kinross’ Fort Knox Mine. Kinross said Mahn Choh is expect - ed to produce about 225,000 ounces of gold per year over 4.5 years. At aver- age costs of $900 per ounce. Assum- ing a gold price of $1,500 per ounce this leaves a $800 per ounce “mar- gin,” or gross profit.
— Tim Bradner
MIDNIGHT SUN DRILLING INC.
Since 1970 Serving the North for Over 50 Years
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2166 Steese Hwy. Fairbanks, AK 99712 | 6 Chadburn Crescent, Whitehorse Yukon Y1A 5Z3 P: 867.633.2626 | F: 867.633.2628 | info@MidnightSunDrilling.com www.MidnightSunDrilling.com
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WHITEHORSE Y.T.
8
The Alaska Miner
Fall 2022
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