Gold output rises to $2.3B amid new production At a value of roughly $2.3 billion, gold dethroned zinc as the most valuable metal produced in Alaska during 2024. While zinc had a strong year both in terms of tons produced and total production value, the galvanizing metal was surpassed by gold due to rising prices and production of the precious metal. Thanks in large part to a surge in gold production value, the U.S. Geological Survey (USGS) calculates that the total value of non-fuel minerals produced in Alaska last year — gold, zinc, silver, lead, and sand and gravel products — at $4.7 billion. When you add in the coal produced for in-state power plants, the total value of all the materials extracted at Alaska mining operations during 2024 comes in at around $4.8 billion. This is a roughly 13% increase over the $4.25 billion of mined commodities produced in the 49th State during 2023. However, due to likely drops in production from the Red Dog zinc mine beginning this year, Alaska’s mine production value has likely reached its apex until a new source of ore for the world-class operation in Northwest Alaska becomes available or the next generation of mines comes online. During his State of the State address, Alaska Gov. Mike Dunleavy pointed to one such project that could contribute to Alaska’s mine production value by the end of the decade. “The Graphite One deposit, the largest in North America, north of Nome, continues to move ahead with support from a Defense Department grant,” he said. “Construction could begin in that project by 2027 and the mine could be producing as early as 2029.” In addition to being on Gov. Dunleavy’s radar, the Graphite Creek project being advanced by Graphite One Inc. fits within the domestic critical mineral priorities outlined in the “Unleashing American Energy” and “Unleashing Alaska’s Extraordinary Resource Potential” executive orders signed by President Donald Trump on his first day back in the Oval Office. The Alaska-centric executive order follows up on a commitment made by the President two days after being elected. “During my second term, we will continue the fight for Alaska like never before,” he said during the Nov. 8 address to Alaskans. “We will maximize Alaska’s mining potential.” That potential includes more than 100 mineral projects in various stages of exploration, evaluation, and permitting, according to Dave (Zoom) Szumigala, a mineral resources geologist at the Alaska Division of Geological & Geophysical Surveys (DGGS). Zoom told attendees of the AME Roundup mining convention held in Vancouver, British Columbia, in January, that more than $200 million was invested into exploration and other activities needed to advance these projects closer to production during 2024. While not all the projects in the Alaska mineral production pipeline will make it across the finish line, and others are likely decades away from production, there are plenty of extraordinary mineral projects ready to be unleashed over the coming years. In the meantime, Alaska’s eight hardrock metal mines, one energy fuel mine, 150 placer gold mines, as well as numerous sand, gravel, and rock quarries contributed to a banner year in 2024. At the cusp of 1 million ounces of gold The opening of the Manh Choh Mine, increased production at Pogo, and climbing precious metals prices combined to push the value of gold produced in Alaska to about $2.3 billion in 2024, a 64% surge over the $1.4 billion of the precious metal produced in the state during 2023. Alaska’s hardrock and placer mines produced approximately 959,000 ounces of gold during 2024, which is roughly 32% higher than the 728,000 ounces produced in 2023. The rest of the boost to Alaska gold production values comes from an equally impressive surge in gold prices from an average of $1,943/oz in 2023 to an average of $2,407/oz in 2024. With gold prices continuing to climb to above $2,800/oz and $3,000/ oz level prices in the forecast for later this year, the surge in Alaska’s gold production value is expected to continue into 2025. The forecasted continued strength in gold price is expected to be augmented by further rises in ounces produced in Alaska this year. The largest addition of the ounces of gold produced in the state this year is expected to come from Manh Choh, a mine about 200 miles southeast of Fairbanks that came online in mid2024. Being operated under a joint venture between Kinross Gold Corp. (70%) and Contango ORE Inc. (30%), Manh Choh is a satellite mine that delivers high-grade ore to the Kinross Alaska mill at the Fort Knox Mine about 20 miles north of Fairbanks for processing. A total of 139,000 ounces of gold and 54,380 ounces of silver were recovered from three batches of ore processed during the second half of 2024. The gold recovered from Manh Choh ore is expected to climb to about THE LINK: MARCH 2025 32 Value of Alaska’s mines soars to nearly $5B in ‘24
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