Operations Commence at Manh Choh Gold Mine
A CAT 6030 shovel loads a 777 CAT 85-ton haul truck at Manh Choh mine.
Contango ORE
Operations have started at the Manh Choh gold mine near Tok. A commencement ceremony was held August 29 to mark the official start of activity.
Another Year Before Production
In attendance at the ceremony were Governor Mike Dunleavy, members of the Tetlin Tribal Council and Tribal Chief Michael Sam, and representatives of the companies developing the project, Kinross Gold Corporation and Contango ORE.
Manh Choh is located on Tetlin tribal lands. Texas-based Contango is a 30 percent partner in the joint venture, while a subsidiary of Ontario-based Kinross is 70 percent owner and manager. Kinross also operates Alaska’s largest gold mine, Fort Knox, on the outskirts of Fairbanks.
“The construction phase has been achieved on budget and on schedule,” says Rick Van Nieuwenhuyse, president and CEO of Contango. “At this point, mining operations primarily consist of pre-stripping activities, with any ore encountered to be stockpiled for later transport by road haul trucks to the Fort Knox mill for processing.”
Although operations have begun, Manh Choh is not yet in the production phase, which is still a year away.
Van Nieuwenhuyse explains, “Mill modification activities continue at the Fort Knox mill with an emphasis on completing outdoor activities before winter arrives. The project continues to be on track to achieve commercial production in [late] 2024.”
Manh Choh is expected to operate for more than four years, extracting at least 1.2 million ounces of recoverable gold.
Meanwhile, Contango has initiated surface drilling to explore at its 100-percent owned Lucky Shot project near Hatcher Pass. “We will complete as much surface drilling as we can safely accomplish from this single drill pad on top of Box Mountain before winter weather conditions shut us down,” Van Nieuwenhuyse says. “Future drilling of approximately 12,000 meters (39,000 feet) from underground at Lucky Shot is expected to be undertaken in 2024.”
Lucky Shot and the nearby Coleman and War Baby mines in the Willow Creek valley produced gold from the 1920s through the ‘40s.
Making History
The track of oil and gas development in Alaska shows the footprints of bold companies and hard-working individuals who shaped the industry in the past and continue to innovate today. The May 2024 issue of Alaska Business explores that history while looking forward to new product development, the energy transition for the fishing fleet, and the ethics of AI tools in business.