Alaska Gold. A real story (III)
By Eric Prendeville. Elemetal – Anchorage , Alaska
Before we dig into the modern-day Alaska gold mining industry, let’s distinguish two general categories of mining: hard rock (lode) mining and placer mining. Hard rock mining involves extracting minerals from deposits in veins (lodes) formed in cracks and between layers of rock. This type of mining involves open pits and underground tunnels. Placer on the other hand, is a deposit of sand or gravel in the bed of a river or lake, containing particles of valuable minerals. Placer mining is the process of extracting these minerals typically by means of sluice boxes or dredges, usually on a stream or a bench (dried up stream). This type of mining is generally less expensive and it is usually more economically viable to operate on a smaller scale compared with hard rock mining.
Alaska produced 948,547 ounces of gold in 2014 with a gross production value of $1.20 billion according to the Department of Natural Resources (DNR). Hard rock mining operations were responsible for 907,415 of these ounces, while placer mines reported 41,132 ounces. The Alaska Miner’s Association estimates actual placer production to be about 83,000 ounces with a gross production value of $105 million. The previous year was a mile marker, yielding just over one million ounces, the first time since the early 20th century gold rush, over a century ago. In terms of gold production by state, Alaska is second only to Nevada.
Although hard rock mining operations have contributed the lion’s share of total gold production, Alaska’s placer mining operations play a significant role in the industry. DNR permitted 646 placer mines in 2013 and 295 of them are estimated to have been operational. Most of the large placer mines in the entire U.S. are found in Alaska, among many smaller placer mines. Because silver is inherent in the composition of most placer it also contributes to the state’s silver production.
While gold is an important part of Alaska’s mining industry, it is just one of many minerals mined in the state, which includes zinc, silver, lead, copper and coal. According to the Division of Geological & Geophysical Surveys (a division of DNR), gross value of all minerals produced in 2014 was $3.28 billion, with Zinc ranking as the top mineral of the state, contributing $1.40 billion in value. Gold was not far behind contributing $1.20 billion, as previously mentioned. In 2014 Alaska was responsible for 70% of the zinc mined in the U.S., and approximately 5% globally. Total production value of minerals for 2013 was $3.42 billion, down slightly from $3.44 billion in the previous year. The state’s mining industry represents an export value of $1.6 billion, 31% of the state’s total exports.