ALASKA & THE YUKON — Companies still high on Alaskan base metals

While most coveted gold, a handful of the companies that scoured Alaska’s countryside this past season were focused on base metals. Topping the list was Cominco (CLT-V), owner and operator of the Red Dog zinc mine in the state’s northwestern region.

In August, the major’s faith paid off with the discovery of an area of high-grade zinc mineralization just 6 miles north of the mine. Another 10 holes followed, eight of which met with success.

Preliminary results show grades similar to the material now being mined. Highlights include 240 ft. (starting 2,160 ft. down-hole) grading 20% zinc, 5% lead and 4 oz. silver per ton in hole 810, and 160 ft. (starting at 2,299 ft.) grading 18% zinc and 5% lead in hole 809.

Mineralization occurs as flat-lying zones in an area measuring 1,300 by 1,200 ft. and remains open to the northeast, northwest and southwest.

Drilling will resume as soon as weather permits, initially extending holes 816 and 817, as both had to be stopped short of reaching their mark.

At last report, Red Dog’s main deposit hosted proven and probable reserves of 47.6 million tonnes grading 19.2% zinc, 5.2% lead and 99 grams silver. Among other known surface deposits is Aqqaluk, where possible reserves stand at 72.9 million tonnes grading 13.6% zinc, 3.7% lead and 65 grams silver.

Among juniors, Rubicon Minerals (RMX-V) reported a discovery at its Palmer base metal project in southeastern Alaska. Dubbed RW, the zone is in a 5-mile-long corridor characterized by numerous showings.

Mineralization occurs in several forms, with the final hole, No. 14, piercing 156 ft. of stringer sulphides. Within that, 19.5 ft. (from 634.3 to 653.8 ft.) graded 1.28% zinc and 0.42% copper, plus minor silver and gold.

Also, surface crews discovered a high-grade zinc showing 2,400 ft. to the southeast. Known as UMP, it is believed to lie at the same stratigraphic position as RW and, in grab samples, runs up to 18.75% zinc and 0.28% copper.

Since acquiring the project in late 1997, Rubicon has drilled 14 holes (9,409 ft.). Of the 10 holes sunk this year, eight were focused on RW.

Drilling will resume next year in a program budgeted at US$2 million.

Grayd Resource (gyd) had a mixed year: more volcanogenic massive sulphide mineralization was discovered at its Dry Creek property, but not enough to keep Atna Resources (ATN-T) interested. Atna, whose past partnerships include Palmer, had an option to earn a 51% interest in that and the Anderson Mountain property (T.N.M., Oct. 18/99).

Nevertheless, the short partnership provided Grayd with another 12 holes in the DC North horizon and two in an alteration halo, immediately to the south. The former holes were spaced over 13,500 ft. of strike length and drilled to 1,000 ft. downdip; results from three are still pending.

Dry Creek and Anderson Mountain are two of several properties owned by, or under option to, Grayd. Both were acquired in 1996 from a private company based in Oregon, and both are underlain by Paleozoic-aged sedimentary rocks of the Yukon-Tanana Terrane.

In the meantime, results from surface and drill programs at the Caribou Dome property are encouraging for Atna. Two of the three holes drilled targeted possible extensions to the known deposit and returned up to 6.3% copper over 1 ft. (T.N.M., Oct. 11/99).

Situated in central Alaska, Caribou Dome hosts stratiform copper mineralization said to be geologically similar to the Kupferschiefer copper-shale deposits of Europe and the copper belt deposits of Zambia. Atna can earn a full interest in the property by spending US$1 million on exploration and paying US$115,000 in cash over four years.