Nixon Fork Mine
Nixon Fork is an underground gold mine located about 35 miles northeast of McGrath. Once closed down, a final decision about re-starting operations is expected at the end of 2010.
Overview
Nixon Fork Mine is a small underground gold mine located approximately 35 miles northeast of McGrath, Alaska (click here for map). Once shuttered as a result of bankruptcy, the Nixon Fork mine is a former high-grade gold mine, which has produced approximately 145,000 ounces at a production average of over 42 grams per ton (1.4 ounce per ton) . To date, over US$100 Million has been spent on the mine, Mill, and underground infrastructure.
Property Description
The Nixon Fork property consists of 95 unpatented federal claims, 15 federal placer claims and 48 state mining claims. Thirty-three of the federal claims are located on land selected by Doyon Ltd. through the Alaska Native Claims Settlement Act. Forty-four of the state claims are "at-risk" claims that overlay the federal claims on BLM land. These will become active only if the federal claims are abandoned and the State of Alaska is conveyed title to the underlying land.
Property History
Lode mining occurred on the Nixon Fork claims intermittently from 1918 through 1964. In 1994, Nevada Goldfields, Inc., a wholly-owned subsidiary of Consolidated Nevada Goldfields Corporation (CNGC), developed the current mine consisting of underground workings, conventional gravity separation and flotation circuits, and a lined tailings facility. Nixon Fork operated from 1995 until June 25, 1999, when Real Del Monte Mining Corporation, the successor to CNGC, filed for bankruptcy. The property and all of its surface facilities and equipment returned to the original owners, Ted Almasy and Margaret Mespelt. Since then, the mine has been mothballed, until, with elevated gold prices, St. Andrew Goldfields made the determination that the project was economically feasible.
St. Andrew Goldfields, Ltd., a Canadian mining company headquartered in Oakville Ontario, leased the property from Mespelt & Almasy Mining, LLC. In 2005, the company, through its wholly-owned subsidiary Mystery Creek Resources, Inc. (MCRI) decided to seek re-authorization of existing state and federal permits and, with minor changes to the original mine operating plan, re-open the mine. In December of 2008, Pacific North West Capital Corp. announced an agreement to purchase a 100% interest in Mystery Creek Resources, Inc. (MCR), a wholly owned Alaskan subsidiary of St Andrews Goldfields Ltd. In July of 2009, Pacific North West Capital Corp (Mystery Resources) sold Nixon Fork Gold mine and transferred majority ownership to Fire River Gold Corp (FAU). Nixon Fork Gold Mine is a fully permitted and bonded mine, which FAU plans to put back into production within the next 18 months.
Type of Deposit & Resource
The Nixon Fork deposit consists of at least five identified mineralized zones: the Crystal Garnet, Mystery, J5A, High Grade/Rec and the Southern Cross. Mineralization is vein and skarn type - resulting from the intrusion of quartz monzonite stocks into surrounding Paleozoic sedimentary rocks. Disseminated and vein-hosted gold and copper occur within the stocks as well. Primary sulfides in the deposit include chalcopyrite (copper-iron sulfide), pyrrhotite (iron sulfide), arsenopyrite (iron-arsenic sulfide), minor sphalerite (zinc-iron sulfide) and molybdenite (molybdenum sulfide). Native gold, bismuth, silver and copper oxides are also present.
Past Production
Nevada Goldfields processed both oxide and sulfide gold ore; gold recovery averaged about 83.5% for the oxide ores and 90% recovery for the sulfide ores. Total gold production was 165,150 ounces. Of the 134,902 tons of waste rock mined, approximately 35% was backfilled underground; the rest was hauled to the surface and stored. Previous production averaged over 40 grams per ton and additional of copper and silver. In 2007, limited production resulted in recovery of 6,775 ounces of gold and 78,644 pounds of copper.
Current Status
The fully permitted and bonded mine includes a 200+ tpd flotation plant with a gravity gold separation circuit. In 2008, a complete CIL gold leaching circuit was designed and purchased and is approximately 60% installed. The mine also includes a fleet of mining vehicles, a self-contained diesel power plant, maintenance facilities, drilling equipment, an 85 person camp, office facilities and a 1.2 km long landing strip.
In 2010, the company has plans for a Re-evaluation Program, which includes an Underground Exploration Update, Surface Exploration Update, and a Re-Evaluation of Tailings Pond. Under the 2010 Re-evaluation Program, the company began a $1.25M evaluation of the project to confirm the status of the geological work, confirm both the gold grade from the tailings pond, and further metallurgical assessment through test-work in 2009. The company plans to make a final decision about re-starting operations by the end of 2010.
last modified Mar 26, 2010 05:14 PM
