Prospects look fine for platinum near Ketchikan
CONTRACTS: Capital starting to flow in for a look at Union Bay site.
adn.com
By SARANA SCHELL
Anchorage Daily News
(Published: May 23, 2003)
One of the world's largest platinum producers has signed on to prospect in Southeast Alaska
this summer for the metal nearly twice as precious as gold.
Vancouver, British Columbia-based Freegold Ventures staked more than 6,000 acres in the
Union Bay area 35 miles northwest of Ketchikan in 2000, said Freegold consultant Curt
Freeman. Drill tests the following year were interesting enough to attract partners.
First came Pacific North West Capital, which shares offices and its chief executive, Harry Barr,
with Freegold. Both companies are traded on the Toronto Stock Exchange.
The Lonmin Group, which calls itself the third-largest primary producer of platinum group
metals in the world, officially joined the venture Wednesday. The producer committed
$815,000 to the project this summer after a year of contract negotiations, Barr said.
Future investment will hinge on the results of this year's prospecting.
If Lonmin signs on for another year, Barr said, the contract requires at least $1 million from
the producer.
Pacific North West Capital, which is operating the exploration phase, hired Fairbanks geologic
consulting company Avalon Development Corp. to manage the prospecting.
At the average pace for mining exploration, a study to peg the profitability of development is
three to five years out, Barr said. If the numbers point to go, first production could take
another five years.
Platinum is popular in jewelry and as an effective pollution reducer in car exhausts.
A troy ounce of platinum was $663 on the New York Mercantile on Thursday; gold was $368.
Freegold also is exploring for gold in Interior Alaska's Fairbanks and Goodpaster districts, in
Idaho and in Ontario.
Daily News reporter Sarana Schell can be reached at sschell@adn.com. |
