Valdez Creek Division

"Cambior now holds a 49% interest in the Valdez Creek Placer, having acquired American Barrick's 23.125% interest in May 1990. At the same time, the company assumed the management of the operation and received environmental permits to divert the river. Plans are underway to divert the Valdez River in order to continue mining the deposit upstream, and to construct a new, higher capacity wash plant (by 60%) closer to the operations. Mining operations, which were suspended in October 1989 pending higher gold prices, resumed in August 1990. The mine is expected to produce 10000 ounces of gold in 1990and more than 80 000 ounces in 1991.IntroductionThe Valdez Creek Placer is located in the Valdez Creek mining district of Alaska on the western flank of the Clearwater mountain range, about 150 miles northeast of Anchorage by air (Fig. I) . The mine is accessible by air or by road.The mine is situated at an elevation of about 3000 ft and is isolated from towns and villages. Consequently, the mine site contains the facilities necessary to house and feed 135 people at any given time. The Valdez Creek Placer has 159 employees, including 130hourly and 29 salaried employees. The hourly employees are divided into three rotating teams. The daily schedule consists of two shifts of 12 hours, and each team works 14 days followed by seven days off, resulting in a weekly rotation of teams.The salaried employees work normal hours for ten consecutive days followed by four days off. A weekly rotation ensures continuity of services and management.Gold was first discovered at Valdez Creek in 1903, when a team of four men led by Peter Monahan left the village of Valdez to explore the area up the Susitna River, to the east of Mount McKinley. They discovered gold at the mouth of a creek that they immediately named Valdez Creek, in honour of their native town. In 1904, they discovered the Tammany Channel to the right of Valdez Creek. This was the beginning of a long period of mining in the area which continued until the beginning of World War II .In 1980, the Denali Mining Co. was formed. Geophysical work and drilling carried out through 1980 and 1981 led to the discovery of Channel A, a second channel which is older than the Tammany Channel. In 1983, Denali Mining optioned its claims to Camindex to explore, develop and mine the Valdez Creek property. A joint venture agreement was signed among Camindex, Talcorp, BCP Alaska (Barrick), Sum Resources (Cambior), Norfran and WGM to form Valdez Creek Mining Co., Inc., and production began in 1984. Valdez Creek Mining Co., Inc. (VCMC) was subsequently restructured and in 1989 was held by the following three companies: Camindex Mines Ltd. - 51070; Cambior Inc. - 25.875%; and American Barrick - 23.125%.VCMC is managed by a committee of the partners. Decisions made by the committee are subject to a 70% majority vote. Cambior receives its share of production in kind, and contributes in the same proportion to the expenses of the joint venture (VCMC)."