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British Columbia exploration boom may not lead to new mines

A drilling rig operator works at the Iskut project in west-central British Columbia. The Iskut is one of about a dozen exploration or mining projects near rivers that run through or near Southeast Alaska. (Photo courtesy Seabridge Gold)
A drilling rig operator works at the Iskut project in west-central British Columbia. The Iskut is one of about a dozen exploration or mining projects near rivers that run through or near Southeast Alaska. (Photo courtesy Seabridge Gold)

The Golden Triangle describes a mineral-rich region of northwest British Columbia. Its mines and exploration projects are in the watersheds of salmon-rich rivers that enter the ocean in or near southern Southeast Alaska.

Exploration companies say they’re finding more and higher-grade ore that could lead to new gold mines. But more drilling doesn’t necessarily mean more development.

“In the northwest corner of British Columbia lies a geologic formation known as the Stikine Terrain, which holds some of the richest gold ore bodies in the world,” begins a YouTube video by iResource Media, which covers the mining industry. “This area is so rich, in fact, that they call it the Golden Triangle.”

It and similar reports describe two active mines and close to a dozen exploration projects in the area. They’re upstream from the Stikine or Unuk Rivers, which flow through southern Southeast Alaska. Or they’re in the headwaters of the Naas River, which empties into the ocean just south of the Alaska border.

One of the newer drill projects is the Iskut, owned by Seabridge Gold. Spokesman Brent Murphy said the company is in its second year of exploration.

“We had some success last year where we found some evidence of gold mineralization, and now we want to go out and see if we can find the origin and source of that gold so that we can develop a potential resource,” he said.

The project includes the closed Johnny Mountain Mine. Seabridge has removed and cleaned up abandoned fuel tanks and other contamination that project left behind.

Murphy said it looks promising. But that doesn’t mean it will become a mine.

“It’s way too early to even speculate. We are just in the very early stages of exploration,” he said.

Seabridge also owns the Kerr Sulphurets Mitchell project, which it’s been pursuing since the early 2000s. In recent years it’s been granted key permits needed for construction. The company is actively seeking investors.

KSM, as it’s known, is the largest project in B.C.’s Golden Triangle. Murphy said the company has located new deposits of valuable minerals.

“What we’ve found over the last three to four years is we’re definitely hitting higher copper grades and gold grades,” he said.

About a dozen mines or exploration projects are in what's called the Golden Triangle in west-central British Columbia. Some are new, while others are old mines under exploration as the price of gold roses. (Map courtesy Aben Resources and its Forrest Kerr project)
About a dozen mines or exploration projects are in what’s called the Golden Triangle in west-central British Columbia. Some are new, while others are old mines under exploration as the price of gold rises. (Map courtesy Aben Resources and its Forrest Kerr project)

Iskut and KSM are but two of the exploration projects claiming to have found valuable metals in the Golden Triangle. Calls to other companies were not returned. But all are clearly taking advantage of regional upgrades and the lucrative trend in the industry.

A key factor is the rising price of gold, which has been hovering around $1,300 per ounce. That’s more than twice the value of a dozen years ago.

Another factor is infrastructure. New pavement, hydroprojects and power lines have been developed with support from the British Columbia government. And a deep-water port has been developed at Stewart, the anchorage nearest to the Golden Triangle mines.

“There’s a lot of exploration work taking place and that kind of waxes and wanes,” said Kyle Moselle, large mine project manager for Alaska’s Department of Natural Resources.

He and a state biologist toured some of the Golden Triangle sites last fall and saw evidence of increased activity. The improved business climate is leading to more drilling, but that’s it.

“Does that mean that there’s a flood of mine projects coming? I don’t think so. I’ve never seen exploration work be an indication of actual mines being developed or proposed,” he said.

The number of projects makes it difficult for environmental, fisheries, tribal and government mine critics.

They say pollution from digging and milling could end up in transboundary rivers, threatening salmon and other fisheries.

“It’s hard to really prioritize which are the most important ones, which are the ones that might go ahead and which are the ones that could have effects down here in Alaska,” said Chris Zimmer, Alaska campaign director for Rivers Without Borders.

He’s tracked transboundary mines and exploration projects for years.

He’s encouraged by political changes in the federal and provincial governments. They continue to support development, but appear to be putting more emphasis on environmental protections. But he said those are long overdue.

“As I look at that, all that does is put us back to where we basically should have been 10 years ago. Fix the flaws in the B.C. assessment process over there. It’s definitely not a magic bullet and not the best way to address our concerns downstream,” he said.

Climate change is also making it easier to explore for gold and other rare minerals.

Warming global temperatures are melting back ice fields and glaciers in the Golden Triangle, allowing easier access to once hidden ore.

Celebration 2018 brings 45 dance groups to Juneau

The Taku Kwan Dancers from Atlin, British Columbia, perform at Celebration on June 10, 2016. They're returning this year. (Photo by Ed Schoenfeld/CoastAlaska News)
The Taku Kwan Dancers from Atlin, British Columbia, perform June 10, 2016, at Celebration. They’re returning this year. (Photo by Ed Schoenfeld/CoastAlaska News)

Dance groups, artists, canoe paddlers and traditional food experts are gearing up for Celebration 2018, Southeast Alaska’s largest Native cultural gathering, held June 6-9 at Centennial Hall and nearby sites in Alaska’s capital city.

Celebration has happened every other year since 1982. Each Celebration has a theme. For 2018, it’s “Respect: Weigh Your Words.”

It can be hard to fully describe Celebration.

You can talk about its expected 2,000 or so dancers and 5,000 participants. Or the language, the oral traditions and the regalia. But that just doesn’t fully capture the experience.

Sealaska Heritage Institute president Rosita Worl describes one year’s grand exit, when all the groups danced out of the performance hall.

“It was like we were one people, one being, and we were all dancing,” she said. “It reminded me of a swarm of fish coming in. But everybody was kind of in unison, it was like we were part of a whole spiritual essence.”

Celebration 2018 lists 45 dance groups from Southeast and other parts of Alaska, the Yukon, British Columbia, the Pacific Northwest and California.

Every Celebration has a lead dance group representing a clan.

This year it has two: The Shangukeidí, or the Thunderbirds, and the Lukaax.ádi, or the Sockeye.

They’re from Haines and Klukwan, or the Chilkat and Chilkoot areas.

Worl said they will dance together, with clan songs from each.

The entrance song, owned by the Shangukeidí Clan, is “The Thunderbird Trade Song.” The grand exit will feature “The G̱unanaa Trade Song, one the Lukaax̱.ádi Clan bartered for with inland Athabaskan tribes.

Not all dance groups are made up of members of the same clan. Others are community, school or multi-tribal-based.

Celebration coordinator Carmaleeda Estrada said she’s enjoyed the growth of the youth groups.

Two younger cousins from Angoon formed their own dance troupe and will be part of their second Celebration this year.

“We would never have thought to start our own dance group,” she said. “So to be able to see people even younger than me taking that initiative, we have young girls in our group who are still in elementary school and they’re writing songs, they’re writing Tlingit songs. And so, just to see that from my own community is really inspirational. It really raises the bar.”

Canoes from around Southeast Alaska are formally greeted at the Douglas Boat Harbor on June 8, 2016, just before that year's Celebration. This year's canoes are scheduled to arrive June 5 between 2 and 3:30 p.m. (Photo by Ed Schoenfeld/CoastAlaska News)
Canoes from around Southeast Alaska are formally greeted at the Douglas Boat Harbor on June 8, 2016, just before that year’s Celebration. This year’s canoes are scheduled to arrive between 2 and 3:30 p.m June 5. They’re organized by the One People Canoe Society. (Photo by Ed Schoenfeld/CoastAlaska News)

Regalia, such as clan hats, vests, and button blankets, is worn by most dancers.

That’s changing, Worl said.

“Before we would only allow traditional regalia,” she said. “But we kept saying, if our culture’s going to evolve, then we have to let it and support that. So now you’re seeing a lot more Native fashion wear.”

This year’s Celebration will continue the relatively new tradition of a runway-style fashion show.

For the first time, the models will have a formal model training session.

Another new event is a seal oil contest, to be judged by taste and other factors.

Estrada said such contests will be more visible than in previous years.

“We would do that off to the side in the elders’ room and it wasn’t as prominent as it’s going to be this year,” she said. “Not only are we adding the seal oil competition to that, so now there’s three food categories, but we’re also moving that to the main stage.”

Celebration also includes a juried art show, a youth art show, a regalia care workshop, a Native artists market and the ever-popular toddler
regalia revue.

But the action isn’t all on stage. Estrada thinks back to Celebrations she attended as a child.

“You remember running around with your cousins and you don’t really realize how important and how lucky you are and what a profound event you’re at. But those things are just as fun, being able to reconnect with family and friends from all over,” she said.

Editor’s note: 360 North is under contract with Sealaska Heritage Institute to produce television and online video coverage of Celebration.

Transboundary mine meeting includes State Department, B.C. reps

The state has identified eight transboundary watersheds feeding Southeast Alaska rivers. (Map by Alaska Department of natural Resources.)
The state has identified eight transboundary watersheds feeding Southeast Alaska rivers. A June 1 meeting will update concerned parties about efforts to protect fisheries. (Courtesy Alaska Department of Natural Resources.)

Alaskans concerned about possible impacts of British Columbia mines on cross-border rivers will get an update during a June 1 meeting in Juneau.

Lt. Gov. Byron Mallott will host the third annual transboundary mining meeting.

Mallott aide Albert Kookesh said officials from the federal, state and British Columbia governments will attend. So will tribal, industrial, environmental, fisheries and other leaders.

He said this year’s meeting will allow more time for discussion than previous gatherings.

“This is a chance for stakeholders, people who are interested in those types of transboundary issues, to come and talk to the powers that be, if you want to say it that way,” he said.

Much has changed since the previous meeting.

More mineral-exploration companies have announced discoveries of gold-bearing ore. A new coalition has taken control of British Columbia’s provincial government. And the U.S. State Department has become involved in the controversy.

Kookesh, a former Alaska lawmaker, said the State Department’s presence is new. He said officials will discuss results of a gap analysis.

“Essentially, that means, where are those areas that aren’t being really actively covered now by the transboundary groups in Alaska and Canada? And there’s a gap analysis being done by the State Department that says, ‘Here’s where we think there are areas of concern that we have to follow up on,'” he said.

Two mines on transboundary rivers, the Red Chris and Brucejack, are producing and processing ore. And other exploration projects, including the Kerr-Sulphurets-Mitchell or KSM project, have accumulated necessary permits and are seeking investors.

Tribal and government groups are already sampling water from rivers with watersheds including mine and exploration sites. Concerns focus on possible pollution that could damage salmon and other wild fish runs.

The meeting will be from 10:30 a.m. to 3:30 p.m. June 1 at the Vocational Training and Resource Center on Hospital Drive in Juneau. It’s open to the public, but will not be teleconferenced.

Ferries fully funded in operating budget

Undeneath the Matanuska.
Propellers shine as the Matanuska awaits repairs in 2014. It will get new engines and drive systems this year. That’s one change in the fully funded schedule for the next budget year. (Photo by Heather Bryant/KTOO)

The Alaska Marine Highway System got what it asked for in the Legislature’s operating budget.

Lawmakers OK’d the system’s request in their spending plan for the next fiscal year, which begins July 1.

General Manager Capt. John Falvey said despite a small decrease in funding, the total time in service for ships will actually increase by eight weeks.

“That gives us about 345.9 weeks, a little bit more, technically, than last year because of different ship configurations. Some ships are more expensive or not than others to run. So, it gives us a nice mix for the upcoming year,” he said.

The full ferry operating budget for next year is about $140 million.

The marine highway faced a shutdown in April due to a lack of money. A little-known budget provision – some called it a dirty trick – diverted ferry funding to cover Medicaid program shortfalls.

But Gov. Bill Walker replaced that money in a supplemental budget request, which the Legislature approved.

Next year’s sailings are similar to this year’s.

The ferry Matanuska tied up this month for a full engine-and-drive-system replacement. The work will continue through half or more of the next budget year.

Falvey said its Prince Rupert sailings are being covered by the similar ferry Malaspina.

“Everything else pretty much remains the same. The Kennicott and the Columbia, they’ll also be running. So I’ll say it’s pretty much the same except the Matanuska is out of the picture,” he said.

The Legislature’s capital budget for next year also includes money for ferry overhauls, certifications and terminal and dock work. That’s mostly paid for with federal funds.

The capital budget also provides $250,000 in operational funding for the Inter-Island Ferry Authority. That’s a separate, nonprofit system linking Prince of Wales Island with Ketchikan.

Former Unalaska mayor to run state ferry system

The ferry Malaspina sails out of Juneau's Auke Bay terminal in 2012. It's one of 10 active vessels in the Alaska Marine Highway fleet. The system's new executive director, Shirly Marquardt, will begin work June 1.
The ferry Malaspina sails out of Juneau’s Auke Bay terminal in 2012. It’s one of 10 active vessels in the Alaska Marine Highway fleet. The system’s new executive director, Shirley Marquardt, will begin work June 1. (Photo by Ed Schoenfeld/CoastAlaska News)

The Alaska Marine Highway has a new top official.

State Transportation Commissioner Marc Luiken on Tuesday appointed Shirley Marquardt as executive director of the ferry system.

Marquardt served as mayor of Unalaska, the ferry system’s westernmost port. She represented her region on the state’s Marine Transportation Advisory Board for more than a decade. She’s also worked for seafood processors and a barge line.

Shirley Marquardt was named executive director of the Alaska Marine Highway System May 15. (Photo courtesy State of Alaska)

Marquardt will oversee an initiative to change the system from a state agency to a public corporation. She said that’s part of what attracted her to the job.

“It’s such a different way to look at operating the ferry system, but clearly what we’ve been doing in the past almost 20 years is not working real well,” she said.

The executive director’s job is new. It replaces the deputy commissioner of marine transportation, which has been open for about a year.

Marine Transportation Advisory Board Chairman Robert Venables said Marquardt will bring business experience to the system, as well as what’s called the Ferry Reform Project.

“She really understands the maritime industry and she understands the community importance of the marine transportation mission of the Alaska Marine Highway System. And so, she’s very well rounded and I think she’s going to bring a great depth of expertise and executive decision making,” he said.

Venables said transportation officials discussed the new hire with the advisory board Monday. He said support was unanimous.

Marquardt will begin her job in early June. She’ll move to Ketchikan from Anchorage, where she’s been the governor’s director of boards and commissions.

General Manager Capt. John Falvey will continue to oversee marine highway operations, as he has for more than a decade.

“He will continue to be the ferry whisperer. That’s his bailiwick. That’s his wheelhouse,” she said.

The marine highway system has reduced service and dropped vessels in recent years as budgets have become tighter.

Its 10 ferries serve 35 communities from Bellingham, Washington, to Unalaska-Dutch Harbor.

Legislature resurrects Juneau Access Project, sort of

A sign at the end of Glacier Highway in October 2016. The Juneau Access Improvements Project extension would begin here.
A sign at the end of Glacier Highway in October 2016. The Juneau Access Improvements Project extension would begin here. (Photo by Andrew Kitchenman/KTOO)

The Legislature passed a spending bill that funds several projects throughout Southeast Alaska.

For decades, backers have pushed for a closer connection to Haines and Skagway, which have road links to the mainland highway system.

Gov. Bill Walker halted the Juneau Access Project two years ago, saying it was among a group of large projects that Alaska could no longer afford.

Juneau Sen. Dennis Egan, a Democrat, said that was a mistake.

“Everybody you talk to in the Railbelt, especially, says, ‘Why can’t you drive to the capital?” Well, unlike Honolulu, we could make a way to drive to Juneau,” he said.

Egan and other state senators put a little more than $20 million in the capital budget.

It’s money Walker reallocated to other projects in the same general area.

So rather than new spending, it’s shifted back.

First Things First Foundation executive director Denny DeWitt points to a recent survey suggesting more than half of capital city residents support the project. Fewer than 40 percent of respondents opposed it.

“It’s not the whole package, but it will continue moving the process through the decision-making process,” he said. “Hopefully what we’ve done in terms of looking at what Juneau wants in its transportation policies, hopefully it will have some impact on elected officials.”

Opponents say the project would damage the ocean and shore where the approximately 50-mile road would be built.

Travelers also would still have to take a short ferry ride to connect to the mainland road system.

The governor could possibly veto the reappropriation.

Diesel generators in the Kake Powerhouse provide electricity to the town’s residents. The Gunnuk Creek hydroproject would replace about two-thirds of the power. (Photo courtesy Inside Passage Electric Authority)

The Legislature’s capital budget funds a hydropower project near Kake, a small Southeast city dependent on diesel generators.

Inside Passage Electrical Cooperative CEO Jodi Mitchell said it plans to build at Gunnuk Creek.

“The project will actually provide an estimated two-thirds of the current Kake load,” she said. “At times, we’ll be able to turn the diesels off, which is kind of the gold standard for hydro.”

Close to $4 million is appropriated to the project. The nonprofit also hopes to win a $3 million federal grant, Mitchell said, which would complete the funding.

But if it doesn’t, the cooperative could take out a loan.

Gunnuk Creek is the second of at least four hydroprojects planned for Hoonah, Kake and Angoon.

Mitchell said each one will lower rates – and pollution – in all communities the cooperative serves.

“I really am excited to find out when all these projects are done how much of our load is covered by renewable energy,” she said.

Young salmon are raised in concrete raceways at Blind Slough about 17 miles south of Petersburg. (Alexis Kenyon/KFSK)
Young salmon are raised in concrete raceways at the Crystal Lake Hatchery about 17 miles south of Petersburg. Funding in the capital budget will repair parts of the hatchery. (Alexis Kenyon/KFSK)

Another project in the capital budget would upgrade the king and coho salmon hatchery at Crystal Lake, near Petersburg, which Southern Southeast Regional Aquaculture Association runs.

Production Manager Bill Gass said in an interview earlier this year the $1.5 million will replace raceways that have been leaking for several years.

“The danger now is that we’re afraid that this leak could turn into a catastrophic failure, at which point we could lose the whole thing,” he said. “It buys us continued time to operate,” he said.

The budget also includes $5 million to help dispose of lead-contaminated soil from an old junkyard in Wrangell. The state plans to store it locally, but leaders want it shipped south.

Other Southeast Alaska capital project funding includes:

  • Operating funds for Inter-Island Ferry Authority – $250,000
  • Ketchikan cruise ship berths expansion – $3 million
  • Ketchikan Houghtaling Elementary School roof – $2.4 million
  • Ketchikan Pioneer Home structural upgrade – $1.25 million
  • Craig Middle School gym floor replacement – $418,000
  • Craig Elementary School door and flooring replacement – $111,000
  • Craig Middle School siding and windows – $119,000
  • Wrangell junkyard contaminated site cleanup – $5 million
  • Petersburg Middle/High School entry renovation – $30,000
  • Petersburg Middle/High School underground storage tank replacement -$115,000
  • Crescent Boat Harbor improvements, Sitka – $5 million
  • Hoonah central boiler replacement – $183,000
  • Rebuild tender dock at Icy Strait Point tourist attraction in Hoonah to accommodate more ships – $1.1 million
  • Juneau Court Plaza Building exterior improvements – $1 million
  • Alaska Office Building roof – $900,000

Editor’s note: An earlier version of this report incorrectly reported several Southeast cities would receive matching funds for boat harbor replacement or improvement. Only one project, in Sitka, was funded.

 

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