Surging gold prices put focus on Alaska
Interest in gold mining in Alaska has surged, buoyed by high gold prices.
Even recreational enthusiasts can spend hours in back-breaking labour with nothing to show for it but some golden flakes.
For some, though, that's all it takes to keep them trying their luck.
"It's the thrill of finding that gold," said Bill Dunlevy, who has been prospecting for about 46 years and wears his greatest find, a 5-ounce nugget, as a necklace.
It's not clear how much gold there is yet to be found in Alaska. But what is known points to great potential across Alaska for a variety of metals, including gold, copper and platinum, said David Szumigala, a senior minerals geologist with the state.
Over the last 20 years or so, about 180 million ounces of gold have been discovered, he said, and there's likely potential for much more.
That prospect, combined with gold prices nearly quadruple what they were in 2005, about US$1720 ($2270) an ounce last week, is driving renewed interest in searching for gold in Alaska.
There's even a reality cable TV show, Discovery's Gold Rush, on the phenomenon.
The state reports that the number of smaller, family run operations, rose from about 350 in 2005 to 581 this year. The number of mining claims on state and federal lands is up over the last five years, and a recent state lease sale for gold in the shallow ocean waters off Nome generated US$9.3 million in bids, according to the state Department of Natural Resources.
At least two major mine projects are in the works in southwest Alaska, Pebble Mine and Donlin Gold, both considered among the world's largest undeveloped projects. The Pebble prospect, which faces stiff opposition for its proximity to a premier sockeye salmon fishery, claims 107 million ounces of gold. Donlin Gold has about 34 million ounces of proven and probable reserves.
Some existing mines, like Fort Knox near Fairbanks, have been able to take advantage of the market and extract gold from lower-grade ore.
One of the major challenges for a mine project in Alaska, aside from finding the gold, is developing it: It costs more here than in many other places, Szumigala said, noting that remote mining sites require infrastructure like roads and power lines to be built. Plus, work during winter months is limited.
Dreams of gold draw an increasing number of people to prospecting clubs, like the one Dunlevy helps lead in Anchorage. He estimates there are eight to 10 new members a month and he fields calls regularly from people from around the world, hoping to find enough gold to pay for their lifetime trip to Alaska.
The thrill of the hunt keeps him going; the 72-year-old and several others recently bought 12 claims.
He found his prized nugget in the early 1990s on his claim south of Anchorage. He said a jeweller offered him US$10,000 for it, and he was later offered US$20,000. He couldn't imagine what he'd be offered today; then again, he said he could never sell it.
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