Anchorage Daily News

The company hoping to build North America's largest gold mine in Alaska says new drilling indicates an even larger deposit at Pebble than previously thought.

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Already believed to contain 27 million ounces of gold and 16.5 billion pounds of copper, Pebble's girth could actually be much bigger, mining executives say, provided further investigation confirms this summer's exploration results. Samples from several holes drilled on the eastern flank of the deposit, located about 25 miles northwest of Iliamna, revealed very high grades of gold, copper and molybdenum, they said.

"This is a new system with the potential to significantly enhance the size and grade of the Pebble deposit," said Bruce Jenkins, a top manager of Northern Dynasty Minerals Ltd. of Vancouver, British Columbia.

"This is incredibly exciting," Jenkins said. "There could be a heck of a lot more mineral resource."

A decision on whether to develop the gold and copper prospect is several years away.

The Northern Dynasty announcement Wednesday comes amid a flurry of continued claim-staking in the Iliamna region that some have dubbed Alaska's second gold rush.

Officials with the Alaska Department of Natural Resources last year said prospectors around Pebble had staked more acres than any period since statehood in 1959. At the time they were referring to about 570 square miles. That number has since grown to about 1,000 square miles, said Kerwin Krause, state mineral properties manager.

Much of the staking is being done by Liberty Star Gold Corp. of Tucson, Ariz., Krause said.

The Arizona company acquired 476 mining claims this summer, bringing its total to 1,718 on about 421 square miles, according to Liberty Star's Web site. Company president Jim Briscoe could not be reached on Wednesday. A mining claim locks up the mineral rights to whoever stakes the land, Krause said.

The claim-staking has significantly widened the potential development arc around Pebble, which Northern Dynasty acquired in 2001 from Teck Cominco, a major mining company that operates the Red Dog lead and zinc mine near Kotzebue. Many of the newest claims lie near the southwest boundary of Lake Clark National Park.

Because Pebble is located between Lake Clark and Katmai National Parks, conservationists are working to stop any mine development. Environmentalists, some fishing groups, subsistence advocates and members of nearby communities are also worried that a potential mine could pollute local rivers.

Pebble is highly controversial because it straddles the headwaters of some of Alaska's biggest king and silver salmon runs, which draw anglers from around the world. They also support the Bristol Bay commercial salmon fishery and feed people who live in the isolated region.

Tim Bristol, director of Trout Unlimited's Alaska chapter, says the environmental risks associated with Pebble and related mining are perhaps greater than those posed by oil drilling in the Arctic National Wildlife Refuge.

"There may be more at stake. You look at the community values, you look at the fact that several industries are dependent on wild salmon, and you could say that it's one of the most pressing conservation challenges in the United States," Bristol said.

Scott Brennan, director of Alaskans for Responsible Mining, says not only has the amount of state land staked for mining doubled in the past year around Pebble, but the U.S. Bureau of Land Management is also proposing to open 3.6 million acres of federal land now closed to mining.

"We're simply encouraging Alaskans to examine the mining industry's track record and ask whether or not we should trust this industry with our greatest salmon runs," Brennan said.

Jenkins has described such talk as fear-mongering and has insisted that Northern Dynasty will not build a mine unless it can ensure that the region's fish runs will be protected.

Local reaction to the mine proposal seems to be "wait and see," he said.

"I'm really pleased with the community and stakeholder response," Jenkins said. "People are reserving judgment until the facts are on the table."

DNR officials have said it's hard to comment on Northern Dynasty's plans because they continue to evolve and the company has yet to apply for any major permits.

Daily News reporter Paula Dobbyn can be reached at pdobbyn@adn.com or 257-4317.