THE NENANA DAILY NEWS
Application made April I. 1918, at the postoffice at Nenana, Alaska,
for entry as second class mail matter, under the Act of March 3, 1879.
“WHERE RAIL AND RIVER MEET”
Published Tuesday, Thursday and Saturday by the Nenana Printing
_Company, at First and B Streets. Nenana. Alaska.
R. G. Southworth — —_— — Editor and Manager
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MINING IN ALASKA IN 1920
The annua] report on mineral re
sources and production in Alaska
for 1920 is now in preparation
under the direction of Alfred H.
Brooks, of the United States geologi
cal survey, department. of the in
terior. Some of the important
features of this report relating to
mining development during the year j
are abstracted in the following
statement. Complete statistics of the
mineral production of Alaska can:
not be collected within less than j
four or five months after the close j
of the year, but meanwhile it ap- •
pears advisable to give prompt puj
lication to preliminary estimates |
which, based on past experience, are j
believed to be within five per cent
of the actual figures.
General Conditions
Mining in Alaska began in 1880
and up to the close of 1920 had
produced minerals to the value of,
?640,240,000, over half of which is .
to be credited to the last decade.
About 7o per cent of this minerax j
wealth has come from the small but
rich deposits termed “bonanzas”.
Such deposits can be profitably ex-'
ploited even under, the most adverse
conditions of isolation and trans- 1
portation, because they yield very
large returns on the capital ana
labor employed.
Bonanza mining, always the first
to be developed in a new land, is
a most powerful agency in attract
ing population, in forming commun
ities, and in establishing transporta
tion systems. Such mining will con
tinue, for the known bonanza de
posits in Alaska have been by no
means exhausted, and there is a
good prospect of finding others. A
stable and permanent mining in
dustry can not, however, be found
ed on the exploitation of only the
very rich ore bodies. Permanency
must be based on the development
of the larger deposits of lesser unit
value. Sush development depends
for its profits not so much on the
richness of the ore as on economies
made possible by the magnitude of i
the operations. Large mining oper- j
ations cannot be successful at places:
that are served only by the hap
hazard and expensive means of
transportation generally available on
the frontier. The passage from bo
nanza mining to a stable and per
manent industry has naturally taken
place in all mineral-bearing regions
and has long been under way in the
accessible coastal region of Alaska,
but the great mineral wealth of the
interior remains practically un
touched except by the bonanza min
er.
The minerals won from the large
low grade ore bodies of Alaska have
a total estimated value of $105,
000,000, most of it in gold, the re
mainder including the value of cop
per and other minerals.
The above estimaite includes the
output of (1) auriferous lodes,
whose gold and silver content is
valued at less than $250 a ton, (2)
copper ores containing an average
of not more than 3 per cent of
copper, (3) placers having a gold
content worth less than 75 cents
to the cubic yard, and (4) marble
and gypsum of Southeastern Alaska.
The output of the low-grade de
posits has come mainly from the
gold mines of Juneau, but it also
includes the product of some of the
larger copper mines of Ketchikan
and Prince William sound and a
large part of the gold recovered
by dredging in Seward peninsula.
All the low-grade deposits thus far
developed are at or near tidewater
and have therefore not had to bear
the high cost of land transportation,
which can be borne only by bonanza
deposits. Many mineral deposits of
low grade are known in Alaska, and
the prospect of finding others is
good.
The exploitation of large mineral
deposits of low grade yields only a
small profit per ton, but under nor
mal industrial conditions this dis
advantage is offset by the large ton
nage pioduced. Under the present
high operating costs and relatively
low market value of mineral pro
ducts the profits on certain opera
tions are entirely swept away, so
that during the last two years there
has been no great incentive to this
form of mining in Alaska, and but
few large mining ventures have been
undertaken.
lne long interdict on the use ot
the mineral fuels of Alaska has
greatly retarded all forms of mining
in the territory. It not only enhanc
ed the cost of all mining by pro
hibiting the use of local fuels, but
it made the industry lose the ad
vantage of the improvement in in
dustrial conditions that would cer
tainly have followed the develop
ment of coal and oil.
The situation was relieved some
what by the coal-land leasing act
of 1913, but unfortunately this re
lief came at about the time when
unstable industrial conditions were
brought about by the war and by
the readjustments that followed
peace. In 1920 further help was
given by the passage of an oil
land leasing act, but it has been
passed too recently to affect the
Alaska mining industry.
As about 96 per cent of the value
of the mineral output of Alaska has
been taken from her gold and cop
per mines, the world-wide depres
sion in the mining of these two
metals, which continued through
1920, has been a staggering blow
to the prosperity of the territory.
About 60 per cent of the popula
tion of Alaska has heretofore been
directly or indirectly supported by
gold mining. With the relative de
crease in the value of gold the min
er and prospector has been forced
to leave the territory and the popu
lation has declihed. This decline,
however, must not be regarded as
an indication of the early exhaus
tion of the gold resources, for
Alaska contains enormous potential
reserves of gold and other minerals.
The depression of the mining in
dustry is only temporary; a change
for the better will come when gen
eral economic conditions become
more normal and water and land
transportation are cheaper and bet
ter. A lowering of freight rates,
the completion of the Government
railroad, and the building of a large
mileage of wagon roads are needed
to quicken the now stagnant minim
industry. Such changes will, how
' ever, take time, so that a genera
, immediate improvement can not b<
! expected.
Mineral Production, 1920
Though the mining industry o
Alaska as a whole suffered a seri
ous depression in 1920, yet th<
j value of the 'total mineral outpu
i was greater than in 1919. chiefli
; because of the great increase in th(
j production of copper, largely to b<
| credited to the four large coppei
['mines in the territory. The valu<
of the total mineral production ol
Alaska was $19,620,913 in 1919 anr
j about $22,070,000 in 1920. The our
j put of the gold placers has de
I creased, but that of the gold lodt
| mines has been maintained.
Value* in 1919 and 1920
1919 1920
'Gold . $9,426,032 $ 8,000,00'
I Copper 8,783,063 12,400,00C
! Silver . > 705,273 900,00C
! Platinum 73,663 80.00C
| Tin . 73.400 20,001
i Lead 72,822 142.00C
! Coal . 343,547 380.001
J Others 143,113 148.00C
, Total $19,620,913 $22,070,001!
Mining Event* of 1920
i One of the most encouraging
j features of the year’s mining was
the systematic development of a
| large auriferous lode in the Nixon
! Fork (McGrath) district in the up
per Kuskokwim valley. This ore
body gives promise of being valu
able, and if it so proves it will as
sure the beginning of a lode-mining
industry in this remote region. Au
riferous mineralization appears to
be rather widely distributed in the
Kuskokwim basin, .. region which
has been relatively little prospected.
The gold of this region occurs in
association with granite rocks, which
are intruded into limestone and
other little altered sedimentary
rocks. In general the strong miner
alization appears to be more local
ized than that in the schist areas of
the upper Yukon. Such conditions
are favorable to the occurrence of
commercial ore bodies.
The discovery of this lode and the
continued success of the ' Candle
creek dredge, near McGrath, has at
tracted attention to the Kuskokwim
basin, and there has consequently
been more prospecting in this pro
vince than in any other part of in
tend Alaska. Especially noteworthy
has been the considerable search and
tests for dredging ground in the
Kuskokwim and immediately ad
jacent region during the last two
years.
The enactment of the oil-leasing
law in February, 1920, together
with the world-wide search for pe
troleum, has again attracted public
attention to the oil in Alaska. There
has not yet been sufficient time to
drill under the new regime, but
more than half a million acres of
land has been staked on the as
sumption that it is oil bearing. The
evidence in hand indicates that
though a part of this land is well
worth drilling many locations, as
during all oil booms, will be found
worthless. There is, however, very
good prospect of developing produc
ing wells in Alaska.
Placer Mining
During 41 years Alaska has pro
duced gold to the value of 320 mil
lion dollars, of which 8221,042,000
is to be credited to her placer mines.
For reasons already stated there
was less placer mining in 1920 than
in 1919, and the outlook under
present economic conditions for a
revival of the industry as a whole
is not hopeful. There were 406 sum
mer mines in operation in 1919,
employing 2177 miners, and in 1920
there were 370, with 1830 miners.
The number of winter mines oper
ated in 1919 was 88, employing
613 miners; and in 1920 there were
only 36 mines and 125 miners. The
1919 output from both summer and
winter mines was $4,970,000 and
the , 1920 output $3,630,000, a de
crease of $1,340,000. The decline
in production was greatest in the
more isolated districts. The decline
in output in the Yukon basin, for
: example, was over a million dol
■ lars.
I j Gold dredging has declined re
' latively less than other forms of
! placer mining, partly because some
of the dredges are working very
rich ground, partly because the in
vestments in this form of industry
are so large that many companies
continue operations even with Very
small profits. In 1919 there were 28
dredges operated in Alaska, which
produced gold worth about $1,360,
000. In 1920 there were 22 in oper
ation and their production about
$1,020,000. The relative efficiency
of gold dredging compared with
other methods of placer mining is
illustrated by the fact that in 1920
about 300 men, or IG per cent of
the total placer miners employed m
Alaska, produced $1,020,000, or 28
per cent of the total placer gold
mined. '
In 1920 there were 17 gold
dredges operated in the Seward
peninsula, two in the Iditaarod and
Fairbanks districts, and one in the
Alt. McKinley (McGrath) district.
Improvements are being made in
the Cache creek dredge, in the Yent
na district, and this will probably
be operated in 1921. Plans are also
being made for installing two dredg
es in the Innoko district, and for the
exploitation of other dredging areas
in the Kuskokwim region. Owing to
the present high operating costs
most dredging companies will con
sider only placers whose gold con
tent is 75 cents or more per cubic
yard. The average recovery of the
dredges in Seward peninsula in 1919
was only 52 cents to the cubic yard
and he extensive reserves of dredg
ing ground in the peninsula are con
sequently now attracting little at
IL II livMl.
Y ukon
District
Circle .
Fairbanks
Fortymile
Hot Sprinps
Iditarod
Innoko
Koyukuk
Marshall
Ruby
Tolovana
All Others .
Basin Output
1919
$135,000 $
730.000
41,000
100.000
725.000
140.000
110.000
100.000
165.000
525.000
139.000
1920
; 5o,ooo
500,000
40.000
45.000
500.000
100.000
60.000
80,000
75,000
200,000
75*000
Total
$2,910,000 $1,725,000
Gold Lode Mining
It is estimated that 15 gold lode
mines and five prospects were op
erated in Alaska in 1920, producing
about 3,270,000 tons of ore, from
which $4, 300,000 worth of (gold and
106,000 ounces of silver were re
covered. The output in 1919 was
3,202,573 tons of ore, containing
gold to the value of $4,392,237 and
108,091 ounces of silver. Seven of
the gold mines operated in 1920
were in Southeastern Alaska, five in
the Willow creek district, two at
Fairbanks and one in the Copper
river region. The prospects, which
made only a very small output, are
in Kenai and Seward peninsula and
in the Fairbanks district. The de
velopments and promising discover
ies made in the upper Kuskokwim
and Sitka districts, as well as the
preparation for larger operations in
the Willow creek district, have been
noted above. Two small lode mines
land several prospects produced a
little gold in the Fairbanks district
in 1920. Most of the owners of
auriferous lodes in this district have
deferred all development work until
completion of the railroad lowers
operating costs.
Eight copper mines were in op
eration in Alaska in 1920 and pro
duced about 330,000 tons of ore,
from which 71,000,000 pounds of
copper, 710,000 ounces of silver
and $12,000 worth of gold were re
covered. This .brings the total cop
per production of Alaska during 20
years of mining up to 616,000,000
pounds; but much more than half
of this is the output of the last
decade. In 1920, as in past years,
the only mines that made a large
output of copper were those con
trolled by the Kennecott Copper
corporation, one on Prince William
sound, and three in the Kotsina
Chitina district.
Miscellaneous Metals
Carry a Complete Line of
GENERAL MERCHANDISE
NOTHING BUT THE VERY BEST BRANDS—LIPTON AND
RIDGEWAY’S TEAS, PRIDES AND TEAGARDEN PRESERVES
CRAWFORD’S ORANGE JELLY AND MARMALADES.
HARDWARE AND MEN’S FURNISHINGS OF HIGHEST GRADE
SUNKIST ORANGES AND LEMONS—DELICIOUS APPLES
_California Glazed Fruit*—Candies and Nut» of all Kind*
FOWLER & MORRIS
j Fn 1920 Alaska mines produced !
jabout 887,000 ounces of silver; ini
j 1919, 188,034 ounces. The lead |
production increased from .riG4 tons
jin 1919 to about 880 tons in 1920.
The increased output of silver was
j largely won from the copper ores,
but this increase, like the increase
in the production of lead, was in i
: part won from galena ores mined
jin a small way at several localities. |
The largest shipment of galena ore
was made by a small mine in the I
Kantishna district.
About 31 tons of stream tin con
centrates were mined in Alaska in
1920, compared with 86 tons in j
1919. Most of this tin was mined
in the A ork district, at the west
end of Seward peninsula, where one
dredge and several small operators 1
were working on placer tin de
posits. Several ions of stream tin
were also recovered from gold-placer
mining operations in the Hot .Springs
land Ruby districts, but this was not1
shipped. A total of 35 tons of the
s'irtam tin was shipped from Alaska |
in 1920, but a considerable part of I
this was mined in previous years. I
'I he gobl placers of the south- ;
eastern part of Seward peninsula,!
from the Chistochina (Slate creek)'
district, and from some other dis- I
tricts, continued to yield some plati- !
num in 1920. The Salt Chuck lode I
| mine, in the Ketchikan district, al
so continued to produce platinum
and palladium, as well as copper,
in 1920.
Work was continued at the Parks '
quicksilver mine, on lower Kusko
kuim river, in 1920, and some cin
nabar ore was shipped. A small
shipment of cinnabar ore was also
made from a prospect in the same
district.
The coal production in Alaska in
1920 was about 68,000 tons and in
1919 it was 60,674 tons.
rile Chilkat Oil company con
tinued to produce and refine petrol
eum in the Katalla field in 1920,,
and brought in two new wells.
The- production of marble con
tinued in the Ketchikan district on
about the same scale as in previous
years. The gypsum mine, in the
Sitka district, which was Hooded in
1919, was pumped out in 1920 and
production was resumed. The Alaska '
Sulphur company completed its min- j
ing and reduction plant on Akun j
island, in the eastern part of the i
Aleutian chain, late in the summer |
of 1920. A shipment of garnet sand,
to he used as an abrasive, was made
from Nome in 1920. It was mined
in the beach sands of lmuruk basin,
a tidal estuary about 60 miles
north of Nome.
Must File Notices
Holders of claims must file notices
setting forth that they claim exemp
tion under the bill just approved.
Dominic Grilli was an outgoing
passenger on yesterday's train for
the end of steel, headed for the
Mills residency, where he will work
with the Kalisoff outfit.
I
r.s. McDonald
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Nenana Iifloo No. 17
MEETS AT UNION HALL
FIRST AND THIRD MONDAY
AT 8:00 P. M.
Visiting Members Always
Welcome.
Frank Rourke, Martin Nash,
Secretary. President.
Department of the Interior
Alaskan Engineering Commission
NOTICE
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change without notice:
LEAVE NENANA for Healy on
Monday, Wednesday, Thursday and
Saturday at 8 a. m. 0
Returning: leaves I^ealy at 1 p. m.
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NENANA LODGE No. 1193
L. 0. 0. M.
MEETS AT MOOSE HALL <
Fourth and B Streets
SECOND AND FOURTH MONDAY
At 8:00 P.M. '1
ILEX FOWLER, ALF EKELANU v
Secretary Dictator.