Teck Resources is drilling at new zinc discoveries in Northwest Alaska; construction of access road planned this winter

Teck Resources is in advanced exploration on what could be two significant new zinc projects near the existing Red Dog Mine in northwest Alaska.

Red Dog, operated by Canada-based Teck, is the world’s largest zinc mine. NANA Regional Corp. of Kotebue, the regional Alaska Native development corporation, is the land and mineral rights owner.

The new discoveries are Aktigiruq and Anarraaq, on state lands about 10 miles north of the existing mine. Teck has two drilling rigs and soon three at work on exploration drilling this summer and plans to begin construction of an access road in January as well as surface pads to support further work including an exploration adit that will allow underground drilling, said Chris Stannell, Teck’s public relations manager, in an email.

Exploration so far at Aktigiruq shows an estimated resource of 80 to 150 million metric tons at 16 percent to 18 percent zinc, a grade roughly comparable to the nearby Red Dog Mine, Teck told investors in a presentation earlier this year.

Anarraaq is less further along in exploration and has resources estimated so far at 19.4 million metric tons at 14.4 percent zinc, the company said.

Further exploration will expand these resources.

The new developments would be underground mines, which Is different from Red Dog, which is a surface mine. The deposit at Anarraaq is 400 meters to 1,000 meters below the surface.

The new projects are likely to require several years of exploration and planning and would rely on existing infrastructure at the Red Dog Mine, particularly the mill and a 60-,mile road to a port on the Chukchi Sea, from which Red Dog’s zinc and lead concentrates are now shipped seasonally.

“The Aktigiruq and Anarraaq Exploration program would be focused on extending Red Dog’s mine life and in turn continuing the social and economic benefits that the mine contributes to the region,” said Stannell.

The mine is a major employer in mostly Inupiat villages of Northwest Alaska and also provides revenues for schools and other services in the regional municipality, the Northwest Arctic Borough.

The mine also pays mineral royalties to NANA Regional Corp. and, under terms of the Alaska Native Claims Settlement Act 70 percent of the royalties are paid to other Alaska Native regional and village corporations.

Existing zinc and lead reserves at Red Dog are sufficient to operate until 2031, but Teck’s new projects could extend the useful life of support facilities like the mill.

Because the new deposits are on state-owned lands the royalties will be paid to state instead of to NANA, and mining license taxes, a form of production tax, will also be paid to the state.

However, it is presumed that revenues would also be paid to the Northwest Arctic Borough under a Payment-in-Lieu-of-Tax, or PILT, arrangement, just as at the Red Dog Mine.

“Additional resource definition is required to build the business case for extending Red Dog’s mine life with resources from Aktigiruq and Anarraaq, and the exploration program will advance this work,” Stannell said.

“Additional drilling is also planned for geotechnical investigations of sites for road construction as well as of options for underground access for exploration activities,” he said in the email. State and federal authorizations are still pending for the road and other facilities, he said.

The Red Dog Mine began production in 1989 and operates year-around, although lead and zinc concentrates are shipped in summer and fall when ice conditions in the Chukchi Sea allow navigation.

The region has potential for other discoveries in addition to Red Dog and the Teck’s new projects, Aktigiruq and Anarraaq. Another smaller deposit, Su-Lik, is east of the existing mine and is being jointly explored by Teck and Solitario Zinc Corp.

Geologists feel northwest Alaska could eventually become a ‘zinc belt,” hosting several producing zinc and lead mines.