As Northern Dynasty Mines Inc. proceeds apace toward what company officials hope will be construction of North America's largest open pit mine, another mining company with claims to three times the territory held by NDI is gearing up for another season of test-hole drilling in the Pebble porphyry northwest of Lake Iliamna.
Liberty Star Gold Corp., headquartered in Tucson, Ariz., staked its claim to 237 square miles (153,000 acres) bordering the Pebble gold-copper-molybdenum deposit surrounding an ancient caldera. If the doughnut-shaped deposit zone is thought of like the face of a clock, Northern Dynasty controls the three o'clock to six o'clock quadrant. Liberty Star claims the rest.
Like Northern Dynasty, Liberty Star is a "junior mining company," that is, a firm that does not operate mines but which accumulates capital to establish and prospect claims in anticipation of a future working mine. Typically, junior mining companies demonstrate the likely viability of a prospect and then partner with or sell out to a "major mining company" with experience at actually running mining operations.
Liberty Star calls its venture the "Big Chunk Gold Project." Recently discovered deposits within Northern Dynasty's claim indicate the entire caldera will contain additional deposits. Liberty believes many of those yet-to-be found deposits will occur within its claim area.
Liberty's Big Chunk claims were staked following research by the company's geologic team. According to information on Liberty's Web site, the company conducted a large-scale aeromagnetic survey covering 1,408 square miles, as well as preparing a detailed GIS computer data map.
Once that information is analyzed, further exploratory work will be planned, the company said, along with geochemical surveys and geological mapping, some of which will be done with satellite imagery. Targets will be identified, evaluated and drilled later in the field season, the company said.
"From the above-described work, we expect to locate one or more thinly-covered, large, disseminated porphyry copper-gold-molybdenum mineral zones similar to the Pebble deposit," the company said.
Often described as a doughnut, the caldera might better be thought of as a raisin bagel, Liberty officials say. Mineral deposits within the zone, the raisins, should be distributed randomly.
Liberty Star, created in early 2004, holds the largest position in what is thought to be the largest such porphyry in the world. Phil St. George, the company's vice president of exploration who works out of Eagle River, says he is familiar with the region.
"We have a lot of low-lying ground without any rocks," he said in an interview Thursday. "We have to determine what is under the moss mat and vegetation, but we are enthusiastic that we will find something. We have sniffs of deposits out there that we will follow up on this year."
Liberty Star has not yet engaged with state departments (Nature Resources, Transportation or Environment Conservation) to the degree that NDI has, but NDI is much further along in the process that could one day lead to a working mine, St. George said.
"We assume Northern Dynasty will keep putting the word out to the state that a road would be good for the area," he said. "As soon as we find something, we will join them in that effort."
St. George also noted NDI's ongoing efforts to establish an open dialogue with residents of the mining district, which also happens to be the Bristol Bay Watershed. Many residents fear a mine will disrupt subsistence, sport and commercial fisheries and cultural lifestyles, even as mining may bring new jobs and wealth to the region. St. George said he considers such communication important for Liberty, as well.
"We will start getting involved in that process," he said. "We will hire a communications person" and begin "education on the impacts and benefits of a mine. There is no question the region will be impacted, but we think it can be done without harming the fisheries."
