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
Summer 2021 Volume 49, Number 7
Full speed ahead Miners move forward with production, exploration
INSIDE THIS ISSUE n Profiles of our Alaska miners n Mining bright spot in economy n State sues Biden Administration n Plans for 2021 Annual Convention
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Executive Director’s Report
Delegation has, in the past, been passion- ate about defending the intent of the “No More” clause. We noted that the pur- suit of a land lock up does not appear to be over, with inclusions of funding to support study of placing value
Dear Members and Friends:
While field season is underway, AMA has been hard at work on your behalf, addressing the numer- ous federal policy changes, working with the State to promote more mining, and educating the public about our industry. In this column, I’d like to share our efforts on one particular issue that has been weighing on all of us: the politicization of the per- mitting process for the Pebble Project. Recently, members of AMA leadership met sep- arately with Senators Murkowski and Sullivan and Congressman Young to express our disappointment that some chose to forego defending what should have been an objective process, particularly fol- lowing an EIS that showed in fact that mining and fishing can coexist. It is worth reflecting that in its Final EIS, the Army Corps of Engineers concluded that mining: “would not be expected to have measurable effects on the number of adult salmon, and therefore would have no impact to commercial fisheries” “would not be expected to have a measurable effect on fish numbers and result in long-term changes to the health of the commercial fisheries in Bristol Bay” “There would be no measurable change in the number of returning salmon and the historical relationship be- tween ex-vessel values and wholesale values.” “No long-term measurable changes in the number of returning salmon are expected” Bill Jeffress, Karl Hanneman, Mike Satre, Lorali Simon and I voiced our concerns that the political circumvention of a science-based process that took place for Pebble has far wider implications than just one project, and in fact, puts all economic devel- opment at risk, as well as Alaska’s right to manage its own lands. We stressed that AMA members far outside of the Pebble Project are angry and dismayed at the flagrant abuse of our predictable, stable, and rigorous permitting process. We also examined the implications to state sov- ereignty. We reiterated that the Pebble deposit lies on lands specifically selected by the State for their mineral potential, for the ability to generate rev- enue from their development. We reminded them that with an estimated $600 billion in gross mineral value, development could significantly contribute towards fiscal challenges, the need for stable fam - ily-wage jobs, and other benefits. To hinder the State’s ability to develop its land specifically selected for this purpose, frankly, is a creep toward a vio- lation of the Alaska National Interest Lands Con- servation Act (ANILCA), and we observed that our
on the area depos- its and examination of possible land ex- changes. We firmly told the Delegation that AMA adamantly opposes any sort of “reserve” or land exchange that sets these lands aside in perpetuity. We also voiced concerns regarding the Corps denial of a permit through requiring unattainable mitigation requirements. We reiterated that the precedent set by the Corps’ decisions are already impacting other projects, and while the Pebble de- cision is still under appeal, the damage of an agen- cy issuing a permit decision based on politics has already been done. The Delegation committed to intervening in specific examples and administering a longer-term conversation on Corps policies. We asked for a return to support for science based permitting decisions. If a project can be done without damaging a fishery or other resources, we asked for leadership to help communicate that fact to inform the public. We left the conversations with an agreement to improve information sharing to support the three offices’ commitments to promote and defend our industry and regulatory process, both at home and in Washington DC. I want to thank Bill, Karl, Mike and Lorali for standing up and sharing concerns from their com- pany’s perspectives to demonstrate how broad a reach the Pebble decisions truly have. AMA will continue to insist upon the right for a project to experience a fair and stable permitting process, and for our policymakers to accept nothing less.
Respectfully,
Deantha Skibinski AMA Executive Director
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TABLE OF CONTENTS
2 Executive
Director’s Report
4 Letter from
Our President 8 Roadless Rule
Slams Doors Again 10 Alaska Sues Biden Over Shutdown 16 Faces of Mining: Construction
The official magazine of the Alaska Miners Association and the mining industry in Alaska
Machinery Industrial 18 Remembering Deryl Box 22 Thanks.
ON THE COVER: It’s a busy summer for Alaska miners and mining companies who never stopped working throughout the last year’s pandemic and now busier than ever with higher production and new projects moving forward. On our cover, Shannon Wasuli from Noatak is one of the Ambler Metals team members working to bring that project to reality. Read more on Page 40. Photo courtesy Ambler Metals THIS PAGE: An underground miner at Coeur Alaska’s Kensington Mine sprays down the rock to inspect the surface. Photo courtesy Coeur Alaska
Mark Huffington
24 Profile: Oxford
Assaying & Refining Corp.
26 Profile: Rough Stock Mining 28 Profile: Contango Ore 30 Profile: Millrock Resources Inc. 44 Mining Business and Service Directory
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
Fall 2021 Annual Anchorage Convention Winter 2022 Legislative and Season Preview
Executive Director
Deantha Skibinski Jennifer Luiten Darlene Strickland
Membership and Fundraising Director
Spring 2022 Project Updates Summer 2022 People in Mining
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 Jen Wieland 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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President’s Message From Bill Jeffress
Our knowledge must be shared far and wide
“All of us, as members of the mining community and representatives of resource development, need to do a better job communicating the issues that affect our everyday lives in Alaska and our nation.” S ay goodbye to half of 2021. It’s hard to fathom the issues and changes since the beginning of this year. Pandemic
Federal Areas (CACFA)] n Senate Bill 23, Initiative Severability, Instream Flow Reservations (IFR). Our lack of success with legislation this past session was overshadowed by the ongoing struggle with the state budget and recovering from the pandemic. Now we need to regroup for another try next year. What became very apparent during the Legislature and with the ongoing federal uncertainty, is how these issues do not affect just resource development industries. Local businesses, municipalities, and villages are all affected when legislation, regulations, or policies that impede or thwart land use or resource development. Diminished subsistence opportunities, lost jobs and diminished revenue to local communities are what will crater any potential for future growth and a sustainable economy. For too long the news media has characterized the mining, oil and gas, timber, tourism, and seafood industries as the only ones promoting or opposing certain legislation or voter initiatives. The reality is workers in these industries and informed citizens of Alaska realize what is best for Alaska businesses, our environment and what some of the unintended consequences would do to our lifestyle and economy. Alaska resource industries have been so focused on our immediate issues that we sometimes forget that these issues impact a broader audience. All of us, as members of the mining community and representatives of resource development, need to do a better job communicating the issues that affect our everyday lives in Alaska and our nation. That means bringing other voices to the table to
continued, protest and insurrection at the Capital, COVID-19 vaccinations, flurry of Executive Orders, escalating prices on lumber, building material, and fuel, and more uncertainty with federal regulations. Amid all this “stuff” that is going on you have Alaska industries trying to survive. Whether its mining, timber, oil and gas, seafood, or municipalities, everyone has been and still are trying to figure out the safe course to ensure a productive future. Even the federal regulatory agencies are waiting for the “dust to settle” with the new administration and the apparent constant changes in reinterpretation of previously implemented policy. Next in the mix are the non-governmental organizations (NGOs) that continue to stir the pot with another proposed initiative to limit the number and size of cruise ships visiting Alaska right on the heels of the biggest hit the tourist industry has suffered in decades. Even with the uncertainty regarding new policies with the Biden Administration, the resource development industries continue to work with the legislature and state resource agencies to affect changes based on science, sound engineering, and common sense that are long overdue such as: n Senate Bill, 155 the Mineral Tenure legislation passed in 2020, new proposed regulation to enact the provisions of the Mineral Tenure legislation, n Senate Bill 101, Advisory Commission on Federal Management Areas [Citizen Advisory Commission on
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support reasonable legislation, regulations and policies. Our knowledge of the industry and the environments we work in make us the best ambassadors to educate our friends and neighbors, dispel the false information perpetuated by the NGOs, and enthusiastically provide the truth related to resource development. Sign up and share the Alaska Miner The Alaska Miner is mailed statewide to Alaska business, government and Native leaders. Subscriptions are complimentary — to sign up just email address and contact information to admin@FireweedStrategies.com. And if you’re already receiving the Miner, sign up your team members and clients who also need to be reading the latest good news about Alaska mining!
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Summer 2021
The Alaska Miner
Make your plans now! The 2021 Annual Convention and Trade Show is
Marriott Hotel in downtown Anchorage, Alaska. The week will begin with two short courses: State Mining Claims 101 Chaired by Ramona
Monroe, Stoel Rives LLP and Alaska’s Strategic, Critical, and ‘Green’ Minerals Chaired
scheduled as an in-person event and will be Nov. 1-6 at the Dena’ina Center and the
by Tom Bundtzen and GIS course by Michelle Pearson. Technical Sessions AMA will have one track of Technical Sessions Tuesday, Nov. 2 - Thursday, Nov. 4: n Tuesday Morning: Geoscience Session n Tuesday Afternoon: Junior Exploration Updates n Wednesday Morning: AMA Policy Session n Wednesday Afternoon: Advanced Exploration Updates n Thursday Morning: ANCSA Session n Thursday Afternoon: Advanced Projects and Operating Mines Updates Core Shack and Prospectors Tent The Core Shack and
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AMA Convention 2021
Trade Show Trade Show booths are quickly filling up. If you were a vendor in 2019, reserve your spot now to secure your booth location! And, thank you to our sponsors for their generous support! Virtual Sessions After receiving such positive feedback, and worldwide attendance from the 2020 virtual event, AMA plans to incorporate a hybrid portion of the Convention so attendees can participate virtually in real-time. Please continue to check the
Photo by AMA AMA expects a full house for the Annual Convention, which will be an in-person event.
AMA website for up-to-date information regarding this
year’s convention (www.alaskaminers.org).
Donlin Gold is poised to be one of the largest, highest-grade, and most prospective open-pit gold deposits in the world. We believe that it can be developed responsibly – through a safe and healthy workplace, stewardship of the environment, and the preservation of traditional cultures.
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Summer 2021
The Alaska Miner
Biden plans to restore Roadless Rule in Southeast
The Biden Administration said in June it plans to restore part or all the Roadless Rule to limits development in Southeast Alaska’s Tongass Na- tional Forest. The rule, which limits logging, mining, and development in most of the nation’s largest national for- est, has been in place 20 years before being repealed by former president Donald Trump. The U.S. Department of Agricul- ture has said it will “repeal or re- place” the Trump administration’s action, as part of a broader environ- mental push by the administration of President Biden. The department will publish a new version of the rule in August. Alaska opposition has been swift and direct. “In Southeast Alaska, where the Tongass makes up the vast majority
of the land base, the one-size-fits- all Roadless Rule has restricted ac- cess needed for tourism, recreation, timber, mining, transportation, and the development of renewable ener- gy, said Sen. Lisa Murkowski. “Any action to repeal the final rule and reimpose the roadless rule will cost jobs, diminish income, keep energy prices high, and cripple the abili- ty of the communities in the region to develop a sustainable, year-round economy.” “There they go again: another misguided decision by the Biden ad- ministration that ignores the inter- ests of Alaska working families and reasonable access to our lands, and instead sells out Alaska to the agen- da of extreme environmental groups who have no interest in promoting economic opportunities in our state,” said Senator Dan Sullivan.
“This is a very sad day for the State of Alaska. Rolling back the hard- fought Roadless Rule exemption is not only a devastating attack on our state’s economy, but also shows a terrible disregard for Alaskans’ right to govern themselves,” said Con- gressman Don Young. Currently, 91% of the Tongass is either Wilderness, Wilderness Na- tional Monument, or Inventoried Roadless Areas — meaning only 9% of the Tongass is available for any kind of development. “The Forest Service has already conducted a thorough analysis and determined that an Alaska-specific exemption from a one-size-fits-all roadless rule was fully justified,” said Gov. Mike Dunleavy. “Narrow election results and political donations from environmental groups do not justify this federal agency’s policy flip-flop.”
“We protect the environment because this is the land where we grew up.” – Evan Polty Jr. Lead Mechanic, Donlin Gold Born in Pilot Station and Resident of Russian Mission
Respectful development for all generations.
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Summer 2021
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January 2021
The Alaska Miner
Alaska sues Administration over federal land orders
FROM THE OFFICE OF GOV. MIKE DUNLEAVY On the 63rd anniversary of the signing of the Alaska Statehood Act, Gov. Mike Dunleavy announced that the State of Alaska is suing the U.S. Department of the Inte- rior for illegally and unjustifiably extending decades-long restrictions on nearly 28 million acres of federal land in Alaska. The action by Secretary Haaland blocks State land se - lections and Alaska Native Vietnam Veteran allotments. “This is a methodical effort by the Biden administra - tion — more than just bureaucratic foot-dragging — to frustrate ANILCA and the Statehood land entitlement and leave these lands locked up as de facto parks,” Dunleavy said. “They are consciously ignoring and going around ap- propriate processes to hold things in perpetual limbo. It has needed to be challenged for a long time and it needs to be challenged now more than ever due to these new delays — and I am challenging it. The intent of ANILCA matters, these unnecessary withdrawals need to be lifted, and we need to finally move this process forward. This is another federal attempt to deny Alaska the full realization as a State promised under our Statehood Compact, and it should not stand.” These withdrawals have prevented the State from exer- cising its Statehood right to claim valuable lands or assess the natural resources on these lands, and blocked Alaska Native Vietnam War veterans from selecting land allot- ments. Under a 1971 federal law, the Secretary was allowed to issue temporary land withdrawals to restrict the use of fed- eral land in Alaska to allow the Department of Interior time to determine how federal lands should be used in the state. These withdrawals also effectively prevented the transfer of temporarily withdrawn lands to the State under the Alaska Statehood Act. Many of these 1970s-era orders have nev- er been lifted even though the reasons for the withdrawals have been satisfied for decades. Under 16 such orders, about 28 million acres of land have sat under outdated restric- tions, all the while with the federal government proposing that the withdrawals be lifted but never doing so. In 2006, the Bureau of Land Management reported to Congress that these temporary withdrawals could be lifted on over nearly all these areas without affecting the pub -
lic interest. Following that report, BLM has completed numerous, multi-year re- views and land-use plans, each recommending that the withdrawals be lift- ed. In January of this year, then-Interior Secretary Da- vid Bernhardt issued orders based on these extensive analyses to finally lift these 16 land withdrawals from about 28 million acres. Shortly after assuming office, however, President Biden’s new Interior Secre-
MIKE DUNLEAVY
tary, Deb Haaland, announced she was unilaterally repeal - ing Secretary Bernhardt’s actions from taking affect for at least two years, claiming that the Department needed to conduct even more analyses of environmental, endangered species, historical preservation, and military land use laws – analyses that the BLM, itself, said it had already com- pleted or were unnecessary. “This announcement follows the Biden administra- tion’s already well-established pattern of assuming ex- cessive administrative authority, rehashing completed ac- tions, and even defying settled law to advance the policy goals of anti-development activists and political donors in the lower 48 rather than the everyday Alaskans that ben- efit from multiple use of public lands,” said Corri Feige, Commissioner of the Department of Natural Resources. “Any reasonable grounds for withdrawing this land expired long ago, and this renewed delay is entirely un- justified. Interior’s final decision in January to end those withdrawals was both appropriate and long overdue,” said Attorney General Treg Taylor. “The decision by the Biden administration to further delay the effective date of actions lifting these restrictions is a punch in the gut to Alaskans, an affront to common sense, and a violation of law.” The state’s lawsuit asks the federal district court in Alaska to prevent the Department of the Interior from continuing to delay the January 2021 orders and to direct the Department to lift these 16 obsolete withdrawals im- mediately.
“This is a methodical effort by the Biden administration — more than just bureaucratic foot-dragging — to frustrate ANILCA and the Statehood land entitlement and leave these lands locked up as de facto parks,”
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SUPPORT FAIR PROCESSES FOR ALASKA PERMITTING
Northern Star sets golden records at its Pogo Mine Photo Courtesy Northern Star Resources Northern Star’s Pogo Mine is expected to produce upwards of 250,000 ounces of gold over the next year and 300,000 ounces in the year to follow.
Under mining company’s first major asset outside of Australia. “While the Pogo operation is cur- rently our only asset in North Ameri- ca, it is a very good one to have,” said Luke Creagh, Northern Star Resourc- es’ chief operating officer of the Pogo Mine and Yandal operation in Austra- lia. Realizing Pogo’s full potential, however, was beleaguered by a rash of COVID-19 cases that swept through the camp at the remote Alaska mine during 2020. Despite the coronavirus setbacks at this mine half a world away from cor-
porate headquarters, Creagh said Pogo continued to be cashflow-positive af - ter funding its own exploration and growth capital. An accomplishment he is quick to attribute to the Alaskans working at and supporting the mine. “I would like to extend a massive thank you and recognize the efforts of our workforce and business part- ners over in Alaska,” he said during Northern Star’s Investor Day pre- sentation on July 22. “Like so many others around the world, they worked diligently and responsibly through the coronavirus pandemic to continue operations and have set Pogo up for
Aussie company’s Alaska mine yields 60,968 ounces in Q2 BY SHANE LASLEY, NORTH OF 60 MINING NEWS Northern Star Resources Ltd.’s late 2018 acquisition of the Pogo gold mine in Alaska’s Goodpaster Mining Dis- trict was celebrated as both good news for the future of the underground gold mine and the rapidly expanding Down
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continued success going forward.” The Pogo operations COO said this diligence resulted in North- ern Star’s Alaska asset producing 209,647 oz of gold during the Aus- tralian company’s fiscal year 2021, which ended on June 30. He is particularly encouraged by Pogo’s strong finish to Northern Star’s fiscal year. Roughly 240,000 metric tons of ore averaging 9.1 grams per metric ton gold was mined and processed at Pogo last quarter, both records for the mine. As a result, Pogo pro- duced 60,968 oz of gold, the highest quarterly output since Northern Star acquired the operation. At this pace, the Alaska mine would easily meet Northern Star’s higher gold production guidance for FY 2022, as the Australian compa - ny continues to increase production and drive down costs over the com- ing two years. With a mill expansion antici- pated to be completed by Septem- ber, Northern Star’s Pogo Mine is expected to produce upwards of 250,000 ounces of gold over the next year and 300,000 ounces in the year to follow. Northern Star forecasts Pogo will produce 220,000 to 250,000 ounces of gold at all-in sustaining costs of around $1,300 (U.S.) per ounce of gold during fiscal year 2022, which got underway on July 1. To spur these improved produc- tion metrics, Northern Star is in- vesting roughly $55 million (U.S.) in growth capital to increase the mill processing capacity at Pogo, which is scheduled for completion by September; accelerate under- ground development to access more ore to feed into the higher capacity mill; and improve both surface and underground infrastructure to sup- port the company’s growth vision for the mine. These improvements also set Pogo up to produce 300,000 oz in FY23. As of the end of March, Pogo hosted 12.86 million metric tons of indicated resource averaging 9.5 grams per metric ton (3.95 million oz) gold, plus 10.03 million metric tons of inferred resource averaging 9.1 g/t (2.95 million oz) gold. Of these resources, 5.85 million metric tons 8 g/t (1.5 million oz) gold has been elevated to reserve status.
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Coeur Alaska partners up with Renewable Juneau
Coeur Alaska has committed $52,000 to support the Juneau Carbon Offset Fund (JCOF), a special project of Renewable Juneau. Coeur Alaska’s donation is a two-part commitment — $35,000 is dedicated to support Juneau’s transition to efficient hy - dro-powered home heating system — and $17,000 is reserved for cov- ering the costs necessary for JCOF to become a certified carbon offset proj - ect, which is a key goal of Renewable Juneau. JCOF is Alaska’s only locally tar - geted carbon offset initiative. Juneau businesses, residents, and visitors are invited to offset their carbon footprint by either purchas- ing carbon offsets from the Fund’s web store or by donating to the Fund. Revenue raised is used to help quali- fied Juneau lower-income households
save money while eliminating heat- ing oil emissions. The Fund replaces oil-based heating systems with high efficiency heat pumps powered by re - newable electricity generated by hy- dropower. Coeur Alaska will be joining nearly a dozen southeast Alaska busi- nesses who are committed to cleaner energy by partnering with the Fund. Coeur Alaska’s Kensington Mine is a hard rock gold mine located on the east side of the Lynn Canal approx- imately 45 miles north-northwest of Juneau. The mine and associated milling facilities can only be accessed via the water, and a crew boat makes trips twice per day to transport staff and contractors to the site. $35,000 from Coeur Alaska will offset annual emissions produced by the daily boat transportation carrying workers to and from the mine site.
“When we learned about the Ju- neau Carbon Offset Fund, we were excited to partner with Renewable Juneau to help the community reduce emissions,” said Mark Kiessling, Gen- eral Manager of the Kensington Mine. “We have over 34 years in the com- munity working with our neighbors to protect our health and the environ- ment and look forward to the impact we can make through this initiative.” JCOF has explored becoming a cer - tified carbon offset project before, but the cost has been prohibitive for the nonprofit which is staffed completely by volunteers. To make certification a reality, Coeur Alaska donated an addition- al $17,000 for Renewable Juneau to pursue official carbon offset project status. Certification adds credibility to the offsets and provides assurance
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Coeur Alaska’s donation will help support Juneau’s transition to efficient hydro-powered home heating and help cover the costs necessary for JCOF to become a certified carbon offset project.
Photo Courtesy Coeur Alaska
that offsets are high quality, accurate, provide a positive environmental im- pact, permanent, and only claimed by a single entity. Certification can draw larger corporate donors who are seek- ing verified carbon credits. When certi - fied, JCOF can also be marketed through global carbon offset registries. “Coeur Alaska’s attention to envi- ronmental protection has been evident through their thoughtful research, on- site sustainability and energy efficien - cy projects, and now through its com- mitment to the Juneau Carbon Offset Fund,” said Andy Romanoff, Renewable Juneau Board Member, project lead for the Juneau Carbon Offset Fund, and newly hired Executive Director of Alas- ka Heat Smart. ” We are thankful for Coeur Alaska’s generous donation and look forward to our continued partnership to reduce Ju- neau’s emissions.” Coeur Alaska, Inc. is a wholly owned subsidiary of Coeur Mining, Inc., a U.S.-based, well-diversified, grow - ing precious metals producer with five wholly owned operations: the Palmare- jo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Com- pany has interests in several precious metals exploration projects throughout North America. Renewable Juneau is a local nonprofit dedicated to advocating for and educat- ing about increasing the use of Juneau’s abundant renewable energy resources. Through conducting free educational public workshops, engaging with local, state, and federal energy policies, op- erating the Juneau Carbon Offset Fund, and maintaining an active social media presence, we aim to help Alaska’s cap- ital city meet its goal of 80% renewable energy by 2045.
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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In each issue of The Alaska Miner, we profile someone active in Alaska Mining and the Alaska Miners Associa- tion. This issue we focus on Deryl Box, long-time active AMA member who passed away this summer. We asked Kenny Gerondale of Construction Machinery Industrial to reflect on Deryl’s many contributions as well as the challenges this year has provided. Faces of Mining
Deryl Box Construction Machinery Industrial
“Deryl started with CMI about 30 years ago working out of our Juneau branch,” owner Kenny Gerondale said. “He worked for us a few years and then left CMI. But he stayed in the industry, working in Utah and California. He even- tually came back to work for CMI about 10 years ago. “He came back as our sales manager in Fairbanks. Through it all, he has always been involved in our mining business.” Deryl was a fixture at AMA conventions and Fairbanks events, always with a big smile and a ready story. “He was always extremely active in AMA. And in Fair - banks he was very involved with small placer miners. He was a leader in our work with placer miners and hosted meetings for the small miners in our facility in Fairbanks. “CMI has always been involved with the big mines, but we never overlook our smaller miners.” CMI has established a Memorial Fund in Deryl’s honor. See Page 18 for more information. Construction Machinery Industrial is one of the larg- est retailers in Alaska, providing heavy equipment to ma - jor Alaska industries, including mining. Today it operates branches in Anchorage, Fairbanks, Juneau and Ketchikan, with 110 employees serving customers statewide. CMI’s history has always been entwined with mining in Alaska, Gerondale said. “My grandfather came up here in the 1930s. He was a contractor and helped support the mining industry back then. My dad ran a concrete supply company and I worked for him, running heavy equipment and working in a gravel operation, which is a form of mining,” Gerondale said. “We started CMI in 1985. We later sold it to a Native group, and then bought it back in 2002. We have always focused on supporting the mining industry, from the smallest placer miners to the large mines. We try to offer the best products and support that we can.” Working with miners is good for business, he said, add- ing that mines operate 24/7, while there can be wide fluc - tuations in other Alaska industries. “Even when there’s a downturn, the mines are still working 365 days, 24 hours a day and they still need prod-
ucts and support,” Gerondale said. CMI faced significant challenges during the last 18 months of the pandemic. “This goes for most Alas - ka equipment dealers,” he said. “There were no prod- uct support people from the manufacturers. With COVID, they could not come to Alas - ka. The big corporations
would not approve travel. “The mines and oil patch were still working 24/7. Last year, the price of basic products (minerals, gold, lead, zinc, silver) went up. Consequently, every miner wanted to in - crease production by maintaining their equipment and buying new equipment. Last year, CMI had to deliver more new large mining equipment and equipment to small min - ers than in any year before. As long as we could get deliv - ery, we had to do it 100% ourselves, without help from the manufacturers. “Normally when you deliver a multi-million dollar shovel, mining truck or drill, the manufacturer sends a support team.” CMI ensured miners got what they needed, filling in the roles manufacturers normally perform. “It was a good year for sales but the stress on people, including guys like Deryl, was a lot higher than before. We provided a lot of the product support on our own,” Geron- dale said. “Also understand, we had to get techs into mines, like underground mines in Juneau. Guys had to quarantine 10 days in a hotel before they could go to the mine site. It’s a lot more than just testing. The mines all have different protocols with no two the same. “At the same time, we had to follow State of Alaska protocols in our work. We were one of the first to have an approved protocol to fly anywhere in Alaska. We have been able to get people in and out of remote locations in an emergency. Luckily, we’ve only had to make a couple of those trips, but we’ve done everything we had to do to prepare for and operate in a COVID year.” Local ownership is a powerful asset for CMI. “Decisions are made in Alaska and that is key, whether it’s a financial decision on support for a mine or a safety decision. They’re all made in Alaska,” Gerondale said. Alaska miners, like all Alaskans, are eager to be past the pandemic, Gerondale added. “People are begging to get back to some kind of nor- malcy, whether it’s going to dinner or conducting mining exploration.”
CONTINUED on PAGE 19
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Photos Courtesy Construction Machinery Industrial
Deryl Box was a fixture at AMA conventions and Fairbanks events, always with a big smile and a ready story.
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In Memoriam: Deryl Box
Photos by AMA
The late Deryl Box (left) with State Sen. Click Bishop at a previous AMA Convention.
alaska mining
Construction Machinery Industrial, LLC remains deeply saddened with the recent passing of Deryl Box. Deryl worked for CMI for many years and was very well-known in the Fairbanks community. He was a great person, a team player, a friend and a mentor to many of us here at CMI as well as his customers. Many of Deryl’s friends and custom- ers reached out offering help and an ac - count was set up that went toward the Deryl A. Box Benefit Memorial Fund. We appreciate everybody’s thought- fulness and kind words!
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Summer 2021
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FACES, CONTINUED from PAGE 16
Despite the challenges, the future remains positive for Alaska mining, he said. “The fact remains that Alaska is still a storehouse of natural resources. You have to look out 50 or 60 years. We are entering a time with more gov- ernment restrictions. It’s such a polit- ical issue, but the fact remains that car and heavy equipment manufacturing is down, waiting for the production of electric switches to catch up,” Geron- dale said. This climate makes support for the industry more important, he said. “It’s easy to be concerned. It is a timing issue. Our company and oth- ers involved in mining have to be here and support mining. You can’t be a carpetbagger!” Taking the long-term view as well as focusing on Alaska’s strengths, in- cluding the strong collaboration of AMA members is critical, he said. “First of all, I am optimistic about the future. Not so much about the State of Alaska DOT type of work, with our budget issues. But I am optimis- tic about mining and about continuing operations in the oil industry.” CMI has been a strong advocate and investor in mining and engineering education in Alaska, as an investment in Alaska’s future. “At the convention, CMI has always been a strong supporter of mining ed- ucation. When we can travel again to the mining convention, CMI will al- ways support students in geology and mining at UAF, paying for their travel and hotel rooms for the convention,” Gerondale said. “These kids who go to mining school in Fairbanks will stay in Alaska and stay in the industry. We have to do a better job at the grassroots lev- el helping these kids in college and in local school districts. That is a cost of doing business. We have to get more of the general business community in Alaska to understand what mining does for us.” The economic ripple ef- fect is key, too. “When an Alaska mine has work done, they contract, buy and spend money in Alaska. “We need the business community in Alaska to understand mining and understand the ripple effect.”
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WE PROMISED ALASKANS WE WOULD TAKE CARE OF THE LAND. After mining was completed at True North mine near Fairbanks, Kinross spent six years remediating the 149-acre worksite. Then we monitored the area for several more years to ensure long-term stability. Today, where men and women once went to work, you can play with your family, walk, bike and hike, including five miles of pre-existing trails that have been re-established. At Kinross Fort Knox, we honor our commitments.
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NovaGold receives $75M from Newmont Corporation
NovaGold has received $75 million from Newmont Corporation as per the 2018 Share Purchase Agreement in which NovaGold agreed to sell its 50% interest in the Galore Creek project in British Columbia, Canada. Under the terms of the July 2018 Agreement, total consideration pay- able by Newmont was up to $275 mil- lion. NovaGold received $100 million upon closing and $75 million in July. The remaining amounts related to the 2018 sale of the GCP are payable as follows: $25 million upon the earlier of: completion of a project feasibility study prepared by or for GCP, or five (5) years from the closing date on July 27, 2023; and, $75 million contingent upon con- struction approval of the Galore Creek project. The latest payment from Newmont will increase NovaGold’s cash posi- tion by $75 million, which consisted of approximately $108 million of cash and term deposits as of May 31, 2021. As a result of the successful sale of the Galore Creek project, NovaGold materially increased its treasury to greater than $150 million, providing the Company with a strong finan - cial foundation to advance the Donlin Gold project owned in 50/50 partner- ship with Barrick Gold. The Company expects its existing financial resources and future incom - ing payments to be sufficient to exe - cute on its business plan without re- sorting to raising more capital until a construction decision on Donlin Gold is made. All amounts are in U.S. dollars. NovaGold is a precious metals com- pany focused on the development of the Donlin Gold project, owned 50/50 with Barrick Gold Corporation, in Alaska, one of the safest mining juris- dictions in the world. With approximately 39 million ounces of gold in the measured and indicated mineral resource categories, inclusive of proven and probable min- eral reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne in the measured and indicated resource categories on a 100
Photo Courtesy Donlin Gold Donlin Gold is expected to produce an average of more than 1 million ounces per year over a 27-year mine life.
percent basis), Donlin Gold is regarded to be one of the largest, highest-grade, and most prospective known open pit gold deposits in the world. Donlin Gold is expected to produce an average of more than 1 million ounces per year over a 27-year mine life. The Donlin Gold project has sub- stantial exploration potential beyond the designed footprint which cur- rently covers three kilometers of an approximately eight-kilometer-long gold-bearing trend. Current activities at Donlin Gold are focused on State permitting, opti- mization work, and community out- reach. Donlin Gold is a committed part- ner to the Alaska Native commu- nities both surrounding the project and within the State as a whole. An important factor that distinguishes Donlin Gold from most other mining assets in Alaska is that the project is
located on private land that was se- lected by Calista Corporation (“Calis- ta”) and The Kuskokwim Corporation (“TKC”) at the direction of the Yu- kon-Kuskokwim region Elders and was designated for mining activities five decades ago. Donlin Gold has entered into life- of-mine agreements with Calista, which owns the subsurface miner- al rights, and TKC, a collection of 10 village corporations, which owns the surface land rights and is committed to providing employment opportu- nities, scholarships, and preferential contract considerations to Calista and TKC shareholders. These agreements include a revenue-sharing struc- ture established by the Alaska Native Claims Settlement Act of 1971 which resolved Alaska Native land claims, allotting 44 million acres of land for use by Alaska Native Corporations.
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Mark Huffington retires from Kinross Fort Knox Photo Courtesy Mark Huffington Mark Huffington receives the 2016 AMA Volunteer of the Year Award for his many years of support and work on AMA conventions, presented by Lorali Simon and Deantha Skibinski.
Mark Huffington, a long-time AMA member and convention chairman of the past several Fairbanks spring AMA conventions, has retired from his role at Kinross Fort Knox Mine in Fairbanks. “On July 9, an integral member of the Fort Knox Environmental Team will retire, taking with him incredible knowledge, wisdom, and dedication to the company,” Kinross said in a release. “Mark Huffington has served as the Environmental Superintendent at Fort Knox since 2011 where he has worked diligently to ensure that Fort Knox maintains its exemplary environmental compliance record. During the last ten years, the site has seen many positive projects and expansions that were in no small way a result of Mark’s diligence. In addition, Mark was a very active member of the Alaska Miners Associa- tion. He donated countless hours of his own time spearheading the AMA Spring Convention for the past ten years that a huge success. Mark took great pride
in showing visitors Fort Knox. He never turned down a chance to lead a tour and to educate the community about min- ing. Mark also donated his excellent photography skills, taking pictures at many company events. “Mark will be missed and we wish him the best in his retirement!” At AMA, Mark’s contributions were seemingly endless. He generously pho - tographed each Annual Convention in Anchorage, and Biennial Conven- tions, providing hundreds of images which have appeared in past issues of the Alaska Miner magazine and Min- ers Journal. He provided much personal time in Chairing the Fairbanks Conven - tion Committee, coordinating all efforts to ensure successful events that helped get mining’s story out to the public and helped fundraise to bolster AMA’s ef- forts year-round. For the past two years, he served as the Fairbanks Branch Chair and delegate to AMA’s Executive Com- mittee, and in particular helped guide
AMA efforts and policy throughout the COVID-19 pandemic. Mark’s constant and significant contributions to AMA earned him AMA’s Volunteer of the Year Award, presented at the Annual Con- vention banquet in 2016. “When it comes to an organization like AMA, we all know it is those who donate their time, talent, and treasure who are responsible for our successes. Mark exemplifies that. He was really the jack-of-all-trades volunteer: he could run a committee and account for deliv- erables, he could fundraise, he contrib- uted to technical comments submitted to regulatory agencies, and connected AMA to the community. Plus, and I hope this will make him laugh when he reads it, he was an excellent shoulder to cry on or person to vent to when tensions ran high! I will really miss working on all things AMA with Mark,” said Executive Director Deantha Skibinski. In a previous profile in The Alaska Miner, Mark spoke eloquently about his
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