That the Kinross feasibility study says the “high-grade, low-cost” Tetlin project should proceed is no surprise, given the push by Kinross and the billions at stake.

The owners expect to make $800 per ounce of gold, with the trucks starting to run 24 hours a day in two years, hauling about 10 million pounds a day.

It’s also no surprise that the companies say the project is a go, even though the state transportation analysis—which Gov. Mike Dunleavy agreed to under public pressure—hasn’t started.

The state hasn’t selected a consultant to perform the transportation analysis announced four months ago, so it’s obvious that the mine feasibility study ignores the unanswered safety questions raised by the project.

The Tetlin mine would operate for 4.5 years, but promoters have made it clear they want to look for other reserves to keep the trucks going long after that.

Any reliable feasibility study by Kinross and Contango would consider the costs and public safety questions raised by a project that is founded on 192 truck trips a day between Fairbanks and Tetlin.

And 384 truck trips a day between Fairbanks and Fort Knox, which is about one every four minutes all day, every day.

The working premise is that the trucks pulling two trailers from Tetlin would be broken down into single loads at a freight yard in Fairbanks. The capacity of certain bridges between Fairbanks and Fort Knox and state rules about load limits are said to be the key factors.

DOT Commissioner Ryan Anderson, who owes his job to Dunleavy and is a political supporter of the governor, has not provided a clear picture to the public. At first, the state said that no analysis was needed, with the transportation department acting like a business partner of the mine promoters.

A citizens group called Advocates for Safe Alaska Highways has been trying to fill the gap, doing the work that the Dunleavy administration should be doing. They are asking questions that need answers before the trucking plan becomes a reality.

Unfortunately, it appears the state transportation study is a Dunleavy campaign ploy to help him get past the November election.

As I wrote here in February, I suspect that Gov. Mike Dunleavy quietly gave Fort Knox and Contango a clear signal that the state would support the project and clear any obstacles.

Since the state owns part of the project through its $10 million investment in Contango, the Dunleavy administration should release the feasibility study to the public.

Before Dunleavy claims that he doesn’t have the feasibility study, he knows nothing about a feasibility study and it’s not feasible for him to do anything, rest assured that none of that is true.

All he has to do is pick up the phone. The $10 million the state has invested in Contango ORE gives the state a seat at the table.

On Thursday, Kinross and Contango ORE said their study concluded the project for 192 truck trips a day from Tetlin to Fairbanks is feasible and will be highly profitable.

“At Manh Choh in Alaska, we completed a feasibility study ahead of schedule, and are proceeding with a project that we expect will add approximately 640,000 lower-cost gold ounces to our production profile over its life of mine in one of the world’s best mining jurisdictions,” Kinross President and CEO J. Paul Rollinson said last week.

The ore from the Tetlin project is expected to contain 10 times more gold than the rocks processed now at Fort Knox, the company says. The new estimate of the Tetlin prospect shows an increase in the amount of gold per ton, which will help offset inflation, the promoters say.

“We are pleased to announce that we're proceeding with the execution of the Manh Choh project in Alaska. Manh Choh provides a robust growth project for Kinross, adding high-grade, and low-cost production to Fort Knox. The project returns remain attractive despite the impact of inflation,” Paul Tomory, Kinross executive vice president, told investors Thursday.

“Our preproduction capital investment of $190 million includes a higher than typical contingency to allow for the possibility of future inflation. The acquisition of permits is also progressing well. Earthworks and road construction will be the priority for the remainder of 2022, setting us up for a successful field season in 2023, and we expect to be in production during the second half of 2024.”

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