Alaska Miner News In Brief

Alaska Miners Association

News In Brief

News in Brief is a feature of our monthly journal. The Alaska Miner welcomes information for inclusion in News in Brief. Send to: Alaska Miner, 3305 Arctic Blvd., #105, Anchorage, Alaska 99503. Deadline is the 9th of the month preceding publication.

Ruling on Mining Shutdown Initiatives - Judge Blankenship issued a permanent injunction that 07WATR cannot go on the ballot unless the State Supreme Court overturns his decision that this initiative is unconstitutional. Blankenship ruled previously that 07WTR was an unconstitutional appropriation of state resources which cannot be the subject of a ballot initiative. Additionally, the Council of Alaska Producers (CAP) has filed notice of appeal to the Alaska Supreme Court on 07WATR and 07WTR3. The appellant briefs are due April 25 and the appellate briefs due May 23. There will be no reply briefs. Oral arguments have been requested for June with a decision requested prior to July 10.

Mining Shutdown Initiatives - Steve Borell and Bob Hoekzema of AMA and various other people representing Alaskans Against the Mining Shutdown continue to speak to any group that invites them to discuss the initiatives and explain how they will impact existing large metal mines, future large metal mines, many existing small placer mines, and exploration. Following Steve Borell's talk to the Export Council, they passed a unanimous resolution opposing the anti-mining initiatives.

H.R. 2016, National Landscape Conservation System Act - seems to be moving but is dangerous. It combines all the various designations under this umbrella name and helps hide the fact that the one multiple use agency, BLM, is covered with numerous different conservation designations. This bill is not safe for the future and provides new opportunities for mischief. Today if a bill will impact a specific type of Conservation System Unit (CSU), it must specify that item or items and it gives opponents a chance to find it and fight it. However if this were to become law, all future bills would need to do is reference “components of the National Landscape Conservation System” and it could sneak through easier. For example, Areas of Critical Environmental Concern (ACECs) do not eliminate mining but make it more difficult with many more hoops. However, if NLCS were to pass, no one would know that ACECs are in there and would be able to argue that mining is allowed. Also, Wilderness Study Areas will be changed into full Wilderness bypassing the normal state-by-state Congressional vote.

U.S. Senate Mining Law Hearing - occurred March 12, 2008 and focused on Abandoned Mine Lands and Uranium Mining. Debbie Strhusacker was one of those testifying and she reportedly did an excellent job. Debbie and a couple of others were able to answer several very thorny questions. One concerned the impacts of a gross royalty (NSR) versus a net royalty as now used by both Nevada and Alaska. We are thankful that Senator Lisa Murkowski is on this committee.

Polar Bear ESA Listing - Congress of Racial Equality (CORE) Chairman Roy Innis is promising to sue the Bush Administration if it lists the polar bear as “threatened” under the Endangered Species Act because such a listing will drive up energy prices and hurt America's working poor more than any other element of society. Speaking this week at the 2008 International Conference on Climate Change in New York City, Innis said an ESA listing of the polar bear would give environmental extremists a powerful weapon with which to stop energy development in the Lower 48-from oil and natural gas production to construction of needed coal-fired and other power plants to even renewable fuels facilities. Innis said that this will “result in higher energy prices across the board which will disproportionately be borne by minorities. It will cause countless families in our country in winters ahead to choose between food on the table and fuel in the furnace.” Innis, a long-time civil-rights activist, said “energy is the master resource of modern society-with abundant, reliable, affordable energy, much is possible. Without it, hope, opportunity and progress are hobbled.”

USFS Mining Regulations - The Forest Service has proposed revising its regs for locatable mineral activities to: (1) address inefficiencies and problems identified by agency field managers; and (2) implement recommendations made by the National Academy of Sciences (NAS) in its 1999 report, “Hardrock Mining on Federal Lands.” The NAS report urged changes to the approval process for exploration, the process for modifying, suspending and terminating a plan of operations, and the process for adjusting reclamation bonds. FS is adding a new bonded notice category of operations which is intended to parallel the BLM's “notice” category of operations with the difference that BLM restricts a notice to exploration operations, whereas FS would allow any short-term low impact activities, including mining and reclamation where appropriate, under a bonded notice. The proposed rule retains most of the current environmental requirements. See 73 Fed. Reg. 15,694, (3/25/08). Comment deadline is May 27, 2008.

Coal to Liquid Fuel - The USAF team that developed the synthetic fuel blend that is now certified for use in the B-52 bomber received the FAA's 2007 Excellence in Aviation Research Award March 14 at Wright-Patterson AFB, Ohio. The annual award is bestowed “for research that results in more efficient or safer flying operations,” utilized the Fischer-Tropsch process. The USAF wants its entire inventory certified to use the fuel mix in 2011, seeing it as one means of reducing dependence on foreign sources of energy. The C-17 is nearing certification and on 3/19/08 a B-1B bomber first tested the synthetic mix, becoming the first supersonic aircraft to run on it.

H.R. 3560, Southeast Alaska Native Land Entitlement Finalization Act - The AMA sent a letter supporting this legislation that will allow Sealaska Corporation to finalize its land entitlement granted under ANCSA. Sealaska and the other Native Corporations were given the right to select lands near their villages and other areas where their respective peoples had lived. However, before Sealaska could complete their selections, various federal withdrawals that resulted from ANILCA occurred that greatly restricted their selections. The result was that there was not enough land available that would qualify for the Sealaska entitlement. This bill will allow some exchanges to correct this situation.

NPDES Primacy Work Group - Meeting #16 of this work group was held to review the current status of the process. Assuming HB-149 passes, DEC expects to submit the final application by May 1. The next steps are then: EPA completeness review by June 1; EPA final review and approval May to Oct 2008. Implementation schedule: Phase 1 Authority to DEC for [domestic, timber, seafood] Oct 2008; Phase II Authority to DEC for [federal facilities, stormwater, pre-treatment] Oct 2009; Phase III Authority to DEC for [mining] Oct 2010; Phase IV Authority to DEC for [oil & gas, cooling water intake & discharge, munitions] Oct 2009.

ProsperityAlaska.org - is a new nonprofit organization formed to promote employee involvement in critical business and industry public policy issues. It was founded in October 2007 to inform the state's broad employee population about issues that affect their livelihoods, and to provide them with tools to participate in the public process. ProsperityAlaska.org offers various educational resources, including on-site briefings and easy-to-use Web tools. For more information on ProsperityAlaska.org, visit its Web site at www.prosperityalaska.org.

Pebble - NDM announced an updated estimate in late February after including 157,000 ft of drilling from 36 holes in 2007. At 1.00% CuEQ cut-off: 1.5 B tonnes @ 1.32% CuEQ, containing 27 B lbs Cu, 24 M oz Au, 1.2 B lbs Mo. At 0.60% CuEQ cut-off: 3.9 B tonnes @ 0.99% CuEQ, containing 49 B lbs Cu, 45 M oz Au, 2.8 B lbs Mo.

Kensington - The USFS manager in charge of evaluating the next step in permitting of the modified paste system for tailings storage made a statement this week that appears this change will not require a new SEIS due in part to the fact that no new footprint is required.

Nixon Fork - St. Andrews Goldfields Ltd. Announced it lost C$103.9 million last year and has written down the value of its Nixon Fork Gold Mine in Alaska and the Eskay Creek exploration properties in BC. StAGF also holds a 42.3% equity interest in New Zealand-based gold explorer Glass Earth Gold Ltd and an 18% equity interest in Apollo Gold Corp. The company has placed Nixon Fork up for sale. Nixon Fork has been placed on care and maintenance.

Pure Nickel Inc. - announced that its Board of Directors has appointed David McPherson as CEO and President. McPherson was a director of Pure Nickel since it became public in March 2007 and has been interim CEO in the months since the passing of founder and former CEO, Jay Jaski.

Kinross & Full Metal Minerals - have signed a Letter of Intent to form an exploration alliance to explore for gold deposits in Alaska and Yukon. Alliance projects will be funded on a 50/50 basis for the first US$1M in initial project expenditures. Following completion of such initial work, Kinross would have an option to increase its ownership to 75% by completing a Feasibility Study in respect to each specific project. At any time following the initial expenditures, Kinross may terminate its earn-in right for a 2% NSR royalty. Full Metal will have the right to pursue any non-gold targets within the target areas on a 100% basis.

Full Metal Minerals - announced that its first Phase 2008 of exploration for its Alaska and Yukon properties will include a minimum of eight drill programs totaling 28,200 meters, for a minimum overall budget of US$17 million with at least $5.2 million funded by JV partners. Most of the spending will be at the Fortymile Property; Freeport-McMoRan will test multiple Cu-Au-Mo targets at the Pebble South Property; other drilling at Moore Creek, CJ, etc.

Gold Crest Mines - has signed two separate term sheets with Newmont North America Exploration under which the parties propose two joint ventures to explore Gold Crest's AKO and Luna claim groups in SW Alaska. Newmont can earn a 51% interest in the properties by spending $3,000,000 including a minimum of 3,000 m of drilling before 12/31/11. Newmont has the option to increase its interest under either joint venture to 70% by completing an additional $6,000,000 in work including at least 3,000 m of additional drilling before 12/31/08.

Agrium - announced it will not move forward with coal gasification for its Nikiski fertilizer plant and that the plant will be mothballed. Agrium stated the coal technology being considered was proven to work but is simply too expensive at this time.

Mat-Su Borough Gravel Mining Ordinance - The Final Draft (2/19/08) of a new ordinance went to the Assembly on March 4. This draft restricts mining to not closer than 4 ft. above the water table, unless the operator jumps through numerous requirements including: monitoring wells, analysis of the water for 18 different metals and constituents, mapping of water flow, hydraulic gradient, list of potential sources of contamination within ½ mile, min $1 million liability insurance, etc. Yet no one has defined what the problem is that needs to be corrected. However, the “Friends of Mat-Su” believe this is needed.

State Energy Coordinator - Governor Palin has named Steven Haagenson as energy coordinator and executive director of Alaska Energy Authority. Haagenson retired as president and chief executive officer of Golden Valley Electric Association in 2007. As energy coordinator, Haagenson will lead the state's efforts in developing a strategic energy plan. He has been chair of the Fairbanks Cost of Energy Taskforce which has developed a strategic business plan addressing fuels for electric generation, heating and transportation.

Ken Pohle - has taken a position with the Trust Land Office working to identify and develop the mineral potential within Trust land holdings along with oversight of construction projects on Trust land. Congratulations Ken!

Jim Mallory - is the new General Manager for NovaGold at Rock Creek near Nome. Jim comes to Nome after 26 years with Placer Dome in various capacities. Welcome and congratula-tions, Jim!

Kevin Trophy - The AMA Juneau Branch Chairman and chief engineer for Coeur Alaska at Kensington has taken a job with Silver Standard in Vancouver, B.C. Congratulations Kevin and thanks for your time as Juneau Branch Chairman.

Keith Marshall (former GM at Greens Creek) - Palabora Mining's managing director Keith Marshall left the company at the end of February to join Ivanhoe Mining. He is replaced by Matt Gili. Rio is sending Marshall to the Oyu Toigoi project in Mongolia, one of the largest undeveloped copper projects in the world. Gili is currently the general manager of operations at Palabora, responsible for the underground and concentrator operations. Miningmx, 2/13/08.

Grand Canyon Watersheds Protection Act of 2008 - sponsored by Rep. Raul Grijalva (D-AZ), would withdraw more than 1 million acres of public lands near the Grand Canyon. The Sierra Club and other environmental organizations have also filed suit to block exploratory drilling near Grand Canyon National Park. Also, AZ Gov. Janet Napolitano has asked President Bush to issue an executive order blocking exploration in the area. Grijalva said he moved to block mining efforts until environmental and health issues are resolved.

Climate Change? - The Alliance for Energy and Economic Growth (AEEG) held a series of state “climate change dialogues” during March to raise awareness concerning the impacts of various climate proposals currently being considered in Congress. These meetings, held in Manchester, NH; Fargo, ND; Billings, MT; and Columbus, OH were meant to stimulate a national dialogue by raising the difficult questions that are not currently getting the attention they deserve on Capitol Hill. Topics included: 1) a real-world assessment of our current and projected energy needs; 2) what energy technologies and resources will be available to substitute for fossil fuels if Congress and EPA restrict utilization of those resources; 3) the significant economic impact of such actions on businesses, consumers and workers in that state; and 4) the critical need to develop legislation that will harmonize the development and availability of technology with any mandated emission reductions in order to avoid economic disruptions.

Coal Bed Methane Effluent Limitation Guidelines - EPA is soliciting information to be used to develop effluent limitations guidelines (ELG) for coal bed methane (CBM) development. The information request was in the Federal Register 1/25/08. The comment deadline was 3/25/08. EPA will publish a second notice with another opportunity for comments in spring 2008. EPA hopes to distribute a questionnaire to selected CBM operators in August.

National Water Program Strategy: Response to Climate Change - EPA is seeking public comment on a draft strategy that describes the potential effects of climate change on clean water, drinking water, and ocean protection programs and outlines EPA actions to respond to these effects. This focuses on actions designed to help managers adapt their water programs in response to a changing climate; establish links between climate research and water programs; and improve education for water program professionals on potential climate change impacts. Comment deadline is May 27, 2008. Info at http://www.epa.gov/water/climatechange. Comment to: Attn: National Water program Draft Climate Change Strategy, Office of Water, EPA, 1200 Pennsylvania Ave. NW, Mail Code 4101M, Washington, DC 20460 or Water_Climate_Change@epa.gov.

Earthworks - the national, focused, anti-mining environmental group, now has a contest to name their email distribution newsletter. One name suggested was “Consume - but Do Not Produce”.

CERCLA Lawsuit - On 3/12/08 Earthjustice filed a citizen suit against the EPA and U.S. DOT for failure to promulgate regulations on financial assurance under Section 108(b) of the Comprehensive Emergency Response, Compensation and Liability Act (CERCLA). Earthjustice filed the complaint on behalf of the Sierra Club, Great Basin Resource Watch, Amigos Bravos and the Idaho Conservation League. Earthjustice claims that EPA and DOT had a nondiscretionary duty to promulgate and implement financial assurance requirements under Section 108(b) for those “facilities involved with the production, treatment, transportation, storage or disposal of hazardous substances.” Earthjustice also claims that EPA and DOT violated Section 706(1) of the Administrative Procedure Act, arguing that they “unlawfully withheld or unreasonable delayed” agency action by not promulgating or implementing these regulations. The complaint singles out the mining industry, among others, as having “inadequate or no requirements to provide financial assurances…that are intended to ensure that such facilities will be financially responsible for remediation of releases of hazardous substances.”

Alaska Coal Regulations - DNR has published proposed revisions to its Alaska Coal Mining regulations regarding 11AAC90. This is the second public review of these proposed regulations. DNR issued its original notice on these proposed revisions on March 18, 2007, and subsequently extended the comment period to April 20, 2007. Because substantial changes were made in the proposed regulations based on comments received and an additional review by the DNR, the Regs are again out for comment. For a copy of the proposed regulations go to www.dnr.state.ak.us/mlw/hottopics. Write to: Division of Mining, Land and Water, 550 W. 7th Avenue, Suite 1070, Anchorage, AK 99501-3579, dnrmlw@dnr.state.ak.us or FAX 907-269-8904. Comment deadline no later than 5pm, Friday, May 23, 2008.

Pebble Partnership - John Shively has been named CEO of the Pebble Partnership. This is good news for the project and for the entire mineral industry in Alaska. Upon hearing this news on April 2, Steve Borell forwarded the announcement to a list of many exploration managers around Alaska and elsewhere. He received comments back from many stating their agreement that this was indeed great news. At the RDC breakfast on April 3, John Shively, the current president of RDC, began the meeting and he got only a couple of words said when everyone stood up and started clapping. Congratulations John and NDM and Anglo American!

Redcorp Ventures - Neil Jones has been appointed as Vice President, Human Resources. He will be responsible for human resource, organization development, organizing and implementing the rotational work schedules, travel logistics and community and First Nation relations policies for Tulsequah Chief. He has been in HR issues, most recently as HR Supt at Eskay Creek.

Mitsubishi Corporation - has announced that it has made market purchases of 8,296,108 shares of Northern Dynasty, about 9% of the 92,026,000 Northern Dynasty shares outstanding.

Barrick - The National Governors Association (NGA) has given Barrick Gold one of two annual Public-Private Partnership Awards. Barrick was nominated by South Dakota Gov. Mike Rounds for its partnership with the South Dakota Science and Technology Authority. The partnership helped the state secure the National Science Foundation's Deep Underground Science and Engineering Laboratory (DUSEL) at the Homestake Mine in Lead, S.D. Congratulations Barrick.

The Pebble Fund - The Pebble Partnership has established The Pebble Fund for Sustainable Bristol Bay Fisheries & Communities. TPF will start with an initial commitment of $5 million to support community-led initiatives that enhance the health of Bristol Bay fisheries and contribute to a sustainable economic future for the region. TPF will operate independently from The Pebble Partnership as a part of the Alaska Community Foundation, an independent, non-profit charitable organization that provides financial management and administrative services for funds established for philanthropic and community investment purposes. TPF will be managed by an independent advisory board of stakeholders from local communities, regional institutions, Native organizations and local fisheries interests.

Charlton Heston, 84 - Legendary actor, patriot and personal friend of the late president Ronald Reagan, passed away on April 5. Heston served as a Pacific Legal Foundation trustee for a period in the early 1990s.

Climate Change or PR? - Former VP Al Gore and a nonprofit climate group have begun what they say will be a three-year $300 million advertising blitz to recruit 10 million advocates to seek laws and policies that can cut greenhouse gases. The campaign was introduced in a “60 Minutes” appearance by Gore. The first ad, posted online at wecansolveit.org compares the challenge of fighting global warming to the invasion of Normandy and the civil rights movement. That ad was to start 4/2/08 according to the Alliance for Climate Protection, a group created by Gore in 2006. It will be followed by ads tailored to particular audiences and media, including the Internet. New York Times, 3/31/08.

North American Tungsten Corp. Ltd. - says China's largest nonferrous metals producer, Hunan Nonferrous Metals Corp., will acquire just under 10% of the company. Infomine, 3/6/08.

Tahera - Tiffany & Co. said its fourth-quarter earnings fell almost 16%, hurt partly by loans made to insolvent Canadian miner Tahera Diamond Corp., but adjusted results beat analyst expectations on strong international results. Mineinfo, 3/25/08.

TOOL BIN

BLM Alaska's Spatial Data Management System (SDMS) - website is back on the Internet. SDMS allows you to view, query and download BLM Lands and Resources geospatial information from one common interface. There are 36 data layers available as well as access to BLM documents such as Master Title Plats, Survey Plats, and Case Abstract reports. A link to SDMS is available through http://akgeology.info or through http://sdms.ak.blm.gov or through BLM Alaska's external website under the Resources menu. Training Courses are available by contacting Linda McClelland@blm.gov or by calling 907-271-4652.

Tongass Land and Resource Management Plan - The final EIS on this plan amendment and the record of decision have been issued and are available from the USFS in Juneau or Ketchikan.

GPR 2008-1, Western Fortymile District - DGGS on 1/28/08 released airborne geophysical data and maps for two survey areas of the BLM-funded ~250 sqmi western Fortymile mining district survey; the survey area is in the Eagle and Tanacross quadrangle and focuses on federal land. This digital publication contains final processed line, gridded, and vector data, and all published maps.

Eastern Part of the Styx River Survey & Part of the NE Lime Hills and NW Tyonek Quads - DGGS on 1/28/08 released data for about 180 sqmi of the 708 sqmi Styx River survey area in the northeastern Lime Hills and northwestern Tyonek quadrangles. Acquisition of survey data was temporarily suspended for several months at the request of DGGS when the opportunity to acquire additional data due to the monetary contribution by Anglo American Exploration came along. It was decided that acquiring significantly more data was worth delaying release of the larger dataset for several months. Most of the survey was funded by the Alaska State Legislature.