We Caught a Fever

When you think of Alaska, what comes to mind? For some, it’s the mighty moose, the powerful grizzly bears, and the thought of salmon fishing. Others envision a rugged frontier, braving extreme weather conditions. And then there are those who dream of the northern lights, dancing across the sky over a vast, untamed land far from the lower-48. We had all these images in our minds until this year, when our journey to Fairbanks began. Now, our perception of Alaska is also glittered with the allure of gold mining. It seems we’ve caught a touch of gold fever ourselves.

If we were on the coast, immersed in the fishing industry, gold mining might just be a distant thought. But here in Fairbanks, gold is at the forefront of our minds. Every day, we guide our Gold Dredge 8 guests through the fascinating process of panning for gold, right beside a historic gold mining dredge. It’s hard not to think about gold when it’s such a big part of our daily lives. We’ve become quite the gold enthusiasts, constantly surrounded by this interesting metal. Admittedly, we think about gold. A lot.

Our constant thoughts about gold aren’t just because we work at Gold Dredge 8. It’s also because gold mining history is woven into the very fabric of Alaska. Understanding gold mining is essential to grasping Alaska’s history, as it ignited significant population growth, economic development, and the founding of key cities. Juneau, Fairbanks, Nome, Skagway, and Haines all owe their existence or significant development to gold discoveries. These cities, shaped by the gold rush, have become cultural and historical landmarks, each with its own unique story tied to the pursuit of gold.

It’s not just gold mining history which shapes Alaska. Gold mining continues to have a significant impact on Alaska’s economy today. It provides numerous jobs and generates substantial revenue. The industry supports around 4,700 direct jobs and 9,600 indirect jobs, contributing approximately $890 million in total payroll.

So, if you are interested in learning about gold mining, allow us to share the two basic types of mining which are still in use today, lode mining and placer mining.

Lode Mining

Lode mining, also known as hard rock mining, is a fascinating process that involves extracting gold from veins or lodes embedded in solid rock. This method requires miners to dig deep tunnels or create large open pits to reach the gold deposits. Often, the gold is found in quartz veins formed by hydrothermal processes. Miners use heavy machinery and explosives to break apart the rock and extract the ore, which is then processed to separate the gold from other minerals.

This picture was on display at Independence Mine

During our last excursion outside of Fairbanks, we visited the Independence Mine in the Talkeetna Mountains. This lode mine produced over 165,500 ounces of gold during its operational years and was the second-largest hard-rock gold mining operation in the state at its peak. The miners drilled and blasted to remove the gold-bearing quartz veins, then transported the ore to a mill where the gold was chemically separated from the quartz.

This picture shows Fort Knox Mine on the horizon. It is three miles away.

The grey is the top of the open mine.

Closer to home, about ten miles north of where we work, lies the Fort Knox Gold Mine, the largest lode mine in the Fairbanks mining district (Click this link to watch a video tour from YouTube). Owned and operated by Kinross Gold, this significant open-pit gold mine has been around since 1913 and continues to operate today. Over the years, it has changed owners but has become the largest gold producer in Alaska’s history, surpassing 7 million ounces of gold in 2016. Currently, Fort Knox Gold Mine produces approximately 800 ounces of gold per day. The mine uses chemical processes to separate the gold from the ore, and it’s not done yet! The owners recently invested $100 million in expansion, extending the mine’s life to 2027 and increasing its total production by about 1.5 million gold equivalent ounces.

This quartz rock has gold imbedded throughout. It is a little larger than a grapefruit and is for sale in the Gold Dredge 8 nugget room.

Placer Mining

Gold found by placer mining is gold separated from the original lode. Placer mining is all about separating gold from its original lode, focusing on extracting gold from loose sediments like sand and gravel found in riverbeds or streambeds. The key to this process lies in understanding one crucial aspect of gold: its incredible density and weight.

Have you ever held a clay brick in your hand? Most adults can easily pick up a brick, which weighs about 4.3 to 5 pounds (2 to 2.3 kilograms). Now, imagine a brick of the same size made of gold—it would weigh around 300 pounds (136 kilograms)! This stark difference highlights gold’s much higher density compared to clay, making even a small volume of gold incredibly heavy.

This density makes gold relatively easy to separate from rocks, gravel, and sand, especially when water is involved. Imagine taking a sediment mixture (gold pebbles, gravel, sand, etc.), putting it in a glass jar half-filled with water, and shaking it vigorously. The heavy gold sinks to the bottom of the jar, while the lighter materials remain suspended.

Placer miners use simple tools like pans, sluice boxes, and dredges to wash and separate the gold from lighter materials. Panning involves placing sediment in a pan and agitating it with water to separate the gold. Sluicing uses a sluice box to process larger amounts of sediment, with water flowing through the box and heavier gold particles settling into riffles. Dredging involves scooping up sediment and running it through an internal sluice box, depositing the remaining materials into tailings. All these methods rely on water to separate the gold from other materials.

This is an example of a rocker box (sluice box) used in the early 1900s by prospectors when placer mining. It can be seen during the Gold Dredge 8 tour.

When it comes to placer mining, the types of gold you might find can vary significantly. Ninety-eight percent of gold found is flake gold, while only 2% are nuggets, making nuggets quite rare. The scientific way to determine if you have a nugget is if it clanks in your pan when you drop it—LOL. Nuggets can range from small pea-sized pieces to larger, more substantial chunks and are often sold as collectibles, fetching 10% to 30% more than the price of gold. Exceptionally large or uniquely shaped nuggets can command even higher premiums, sometimes up to 50% or more above the spot price.

These are some of the nuggets obtained by placer miners in interior Alaska. They are available for purchase at the Gold Dredge 8 nugget room. Nuggets are worth more than their weight and each is professionally appraised. For example, a one-ounce nugget is valued more than one-ounce of gold flakes.

This is a 19oz gold nugget on display at Gold Dredge 8. Allen serves as "nugget watchman" when guests are present. They get to take a picture with the nugget. The nugget is valued over $75,000 because of its rarity.

On the other hand, flake or picker gold consists of smaller, flat pieces that can be as small as a grain of sand. While flake gold is valuable, it is generally less so per gram compared to nuggets because it is more common. Flake gold has a shiny, flat appearance and can be found in various sizes, from tiny specks to larger flakes. It is often found in the same environments as nuggets but is more commonly dispersed throughout the sediment, requiring careful panning or sluicing to collect. Flake gold is melted down and used in jewelry, electronics, and to make gold leaf.

Here is a good example of "picker" gold found using a pan. Terri panned these and wears them in a locket which serves as a cool-looking zipper pull!

When we first thought of Alaska, images of moose, grizzly bears, and the mesmerizing northern lights danced in our heads. Little did we know, we’d soon be struck with a semi-serious case of gold fever! From guiding guests at Gold Dredge 8 to exploring historic mines like Independence Mine, our days are often met with the precious metal. Who knows, you might be catching a touch of gold fever too!