Alaskan gold mining interest grows with unexplored areas, high prices

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Interest in gold mining in Alaska has surged, as high prices for the metal and a relatively unexplored landscape are expected to shape exploration trends and lead to significant investments in the region, The Associated Press reported.

According to the United States Geological Survey, total expenditures in the state by mining companies have risen each year, as the exploration funding rose 84 percent or $178.9 million from 2006 to 2007. 

The USGS reported that although the exploration projects were conducted across the entire state, up to 55 percent of these were concentrated in the southwestern area of Alaska.

According to the AP, it is not clear to mining companies how much gold is in the state, as the geology of Alaska is still being learned.

David Szumigala, a senior minerals geologist for the state, told the news source that there is significant potential for gold deposits to be found all over Alaska. He noted that in the last 20 years up to 200 million ounces of the metal have been discovered and there is a chance that several hundred million more have yet to be unearthed.

The AP reported that recent projects have found significant deposits of the metal, but the total amount of gold at these sites is yet to be determined due to the nature of the landscape of the terrain.

“You’ve got to have quite a war chest of money to go out today and find something,” Steve Borell, executive director of the Alaska Miners Association, told the news source. “It’s not easy. The easy stuff has been found.”

Borell also noted that the areas where the exploration projects have arisen may lack the necessary resources and infrastructure that would help to expedite the process. This may change though, as mining companies are trying to capitalize on the current commodity prices trends.

According to Juneau Empire, mining companies are looking to reopen old mine sites, as this could help to eliminate some of the costs associated with beginning a completely new project. Engineers from several major firms are starting to examine the deposits that exist at these older mining areas and have begun to report findings to executives at these businesses. 

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