86 MINERALS YEARBOOK, 1967 
 
Creek; however, production underruns occurring at Chicken Creek made further
dredging at that location economically unfeasible. Accordingly dredging operations
at Chicken have been discontinued and the dredge was put in dry-dock. Operating
plans for 1968 include continuation of the dredging program at Hogatza."
The Chicken shutdown left Alaska dredging with only one major operation.
Both the Hogatza and Chicken boats were considered medium-sized dredges.

 In addition to the two USSR & M operations, other small dredges worked
on the Seward Peninsula (Council), at Otter and Flat Creeks (Iditarod), and
on Gaines Creek (Innoko). Flat Creek Placers on Willow and Flat Creeks, Prince
Creek Mining Co. (Iditarod), Collinsville area (Yentna), Marvel Creek Mining
Co. (Aniak), and Minalaska, Inc. (Innoko), all had nonfloat operations. 
 Activity and interest in offshore placer deposits continued strong throughout
1967. At yearend well over 1,000 prospecting permits, covering more than
2.5 million acres were in force. Interest centered in Norton Sound, particularly
in the Nome offshore deposits. Here Shell Oil Co. continued testing in areas
covered by its own permits and also in areas covered by permits granted to
Nome Gold Coast, Inc. Other areas that drew interest included Bluff-Daniels
Creek, the west end of the Seward Peninsula, the Kotzebue section, Juneau
and Ketchikan in southeastern Alaska, Goodnews Bay, Valdez Bay, and waters
off Unga Island near the tip of the Alaska Peninsula. Unga was the scene
of a little-known gold lode operation with appreciable production around
the turn of the century. 
 The Bureau of Mines operated its research vessel Virginia City off the coast
of Nome during the summer months in conjunction with the heavy metals program
of the Department of the Interior. The U.S. Geological Survey also participated
in the Nome research. One of the major aims of the Bureau's work was the
testing and developing of equipment and techniques for coring and sampling
offshore deposits. The Bureau reported that some gold had been found in each
of 49 holes drilled in Nome tests. No claim of economic concentrations in
the area sampled was made. Further work in the Nome area was scheduled for
the Virginia City in the 1968 field season. 
 Notwithstanding the lack of lode gold production in the year, there was
limited activity in gold lodes. In the Chandalar district, 200 miles north
of the Arctic Circle, Chandalar Gold Mining and Milling Co. (CGM & M)
went ahead with plans for building a mill to treat the high-grade deposits
of the district. It was expected that the mill would be operational in late
1969 and in full operation in 1970. CGM & M held the~ property under
a sub-lease from Little Squaw Mining Co., a subsidiary of Grandview Mines
and Metaline Mining and Leasing Co. Little Squaw and principals of CGM &
M had been active in the Chandalar district for a number of years. 
 The office of Minerals Exploration (OME), of the Geological Survey, contracted
to participate in exploration of the Hard Luck Claims in the Palmer district
near Anchorage. The claims were said to have placer showings of gold and
platinum. Exploration by trenching, test-pitting, ground sluicing, or churn
drilling was authorized. Terms and conditions of OME participation were as
setup in standard OME contracts. A second OME contract was approved on a
gold-platinum placer prospect in the Bethel district. Geophysical anomalies
occurring at the Chagvan prospect north of Cape Newenham were to be churn
drilled. Work was to be done near the mouth of the Salmon River below ground
then being worked by Goodnews Bay Mining Co. 
 
 Iron Ore.—No developments of any significance occurred in the State's
iron resources in 1967. United States Steel Corp. reported holding or assessment
work cnly on its large low-grade magnetite deposits at Klukwan in the Haines
area at the head of Lynn Canal. Assessment work only was likewise reported
for the magnetite at Union Bay on the Cleveland Peninsula. Both deposits
were in southeastern Alaska. 
 Utah Construction & Mining Co. reported the Mt. Andrew and the Poorman
properties as inactive. Both were on the Kasaan Peninsula, Prince of Wales
Island in southeartern Alaska. 
 Pan American Petroleum Corp., a subsidiary of Standard Oil Co. of Indiana,
reported as inactive its large low-grade iron deposits near Chenik Mountain
in the Iliamna area at the head of the Alaska Peninsula. Bonanza Gold, Inc.
was reported