Alaska placer mines yield 297,900 oz., best year since ’42

Placer and lode mines in the state of Alaska collectively turned out 297,900 oz. gold in 1989, the highest amount produced since 1942. The precious yellow metal was also the most valuable mineral commodity produced last year, accounting for 39% of the state’s total mineral production revenues. About 83% of the gold was produced from the state’s 217 placer mines, with the remainder from five lode mines. Despite the increase in production, gold values were about the same as in 1988 because of lower bullion prices.

According to Summary of Alaska’s Mineral Industry in 1989, a new report released by the Department of Natural Resources and other state agencies, Alaska’s mineral industry experienced generally positive growth during 1989.

“Overall value of mineral production increased 27% from US$232 million in 1988 to US$294.9 million in 1989, mainly due to production of metal concentrates from the Greens Creek mine near Juneau,” says Jamie Parsons, director of the division of business development. He also notes mineral exploration expenditures slightly exceeded the high level established in 1988, totalling an estimated US$45.9 million.

Zinc and silver each accounted for about 11.5% of Alaska’s total mineral production revenues, while lead accounted for 3.1%. Overall metallic mineral production accounted for 65% of total mineral values, reversing a 25-year period dominated by nonmetallic materials such as coal, sand and gravel, stone, peat and jade.

Total values of Alaska’s mineral industry in 1989, which includes exploration and development expenditures and mineral production, amounted to US$472.5 million in 1989, compared with US$552.6 million in 1988. The 14% decrease was attributed to a drop in development activities brought about by the completion of both the Greens Creek and Red Dog mine projects.