Mining in Alaska: Golden Investment Opportunities

Alaska’s mining industry: US$542 million in wages in 2020

Currently, although Alaska's mining sector is comparatively small, it still represents a major source of revenue and job creation for the state.

In 2019, for instance, the global mining industry spent an estimated US$162 million on exploration and US$225 million on development in Alaska. In the same year, the mining industry contributed US$37 million in local government revenue as well as US$112 million in state government revenue.

In 2020, Alaska's mining industry provided 9,600 direct and indirect jobs. The mining industry also includes some of Alaska's highest-paying jobs and provides year-round employment to residents of more than 90 communities. In the same year, the mining industry paid roughly US$542 million. With that said, there is considerable international interest in the region.

Alaska: A Favorable mining jurisdiction

According to the Fraser Institute's Annual Survey of Mining Companies, Alaska is currently one of the most attractive regions in the world for mining investment.

The reason for this is twofold.

First is Alaska's considerable mineral wealth. Alaska is home to an immense volume of untapped resources, from rare earths to precious metals. Its many sites and deposits have the potential to generate considerable revenue for governments, mining companies and local communities.

Secondly, government policy in the region is also a positive for investors. With a well-defined permitting framework, Alaska offers the investor an attractive jurisdiction to invest in.

Gold in Alaska: How to invest

Aside from the gold-producing mines in Alaska, the most significant investment opportunities in the state are represented through exploration companies. Some of these top projects generating investment opportunities and worldwide interest are:

• Golden Summit: Identified as a promising mineral site by Vancouver-based exploration and development company Freegold Ventures (TSX:FVL,OTCQX:FGOVF), the Golden Summit project is situated just 30 miles outside of Fairbanks. It currently hosts a pit-constrained gold resource of 1,363,000 ounces in the indicated category and 1,584,000 ounces in the inferred category at a grade of 0.69 grams per tonne (g/t) gold using a 0.3 g/t cut off. A major drill program was completed during 2021 and a substantial number of assay results are pending. In addition, an updated mineral resource estimate is expected late in 2022.

Freegold Ventures has also optioned its Shorty Creek project to South32 (ASX:S32,OTC Pink:SHTLF); Shorty Creek is an underexplored copper, gold and tungsten porphyry project near Livengood. During 2021, a 3,400 meter drill program was also completed with assays still pending.

• Livengood: 70 miles north of Fairbanks is International Tower Hill Mines’ (TSX:ITH,NYSEAMERICAN:THM) Livengood gold project, which contains an indicated resource 13 million ounces of gold.

• Manh Choh: Another project in development by Kinross, the Manh Choh project is a joint venture between Kinross and Contango ORE (NYSEAMERICAN:CTGO), with a planned commencement date of 2024.

• The Upper Kobuk mineral projects: Currently under exploration by Amber Metals, a 50/50 joint partnership between Trilogy Metals (TSX:TMQ,NYSEAMERICAN:TMQ) and South32, this region contains known deposits of gold, silver, zinc, lead and high-grade copper.

Takeaway

For investors interested in the mining industry, few states can compare to the untapped potential Alaska has to offer. Whether you’re looking to invest in exploration, development or production, there’s no shortage of options available when it comes to investing in Alaska’s rapidly growing mining industry, especially when it comes to gold.

This INNSpired article is sponsored by Freegold Ventures (TSX:FVL,OTCQX:FGOVF). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Freegold Venturesin order to help investors learn more about the company. Freegold Venturesis a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Freegold Ventures and seek advice from a qualified investment advisor.