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Skagway Ore TerminalSkagway Ore TerminalSkagway Ore Terminal

Information SheetInformation SheetInformation Sheet April 2008

AIDEA

The Alaska Industrial Development and Export Authority (AIDEA) is a public corporation of the State of Alaska whose mission is to provide various means of financing to support economic development.

Skagway Ore Terminal Description Skagway Ore Terminal (SOT) is constructed to off-load, store and load bulk mine products onto ore ships. The

terminal includes:

A 6.7 acre industrial waterfront lot leased by AIDEA. Five acres are either asphalt-covered or concrete pad.

On an adjacent .37 acre lot, AIDEA owns a fueling facility and tank farm consisting of four 30,000 gallon storage

tanks and two 10,000 gallon day tanks.

A 100,000 SF 16” thick, 150’ x 720’ concrete Concentrate Storage Building floor surrounded by containment

walls.

Auxiliary buildings including an office, shop, laboratory, electrical and wash buildings.

Enclosed materials-handling loadout conveyors and a ship loader capable of sustained mineral concentrate

loadout of about 900 tons per hour.

The ship-loader sits on the adjacent 40-foot draft Ore dock which is owned by the White Pass and Yukon Route.

Pier access accommodates vessels in the 35,000 DWT class. Water depth at berth is approximately 42.5 feet.

Pier access is coordinated by Cruise Line Agencies of Alaska.

Skagway Ore Terminal

Operational Details

Prospective Users will enter into a Terminal Use Agreement with AIDEA.

AIDEA has entered into a User Agreement with

Sherwood Copper. Sherwood has contracted with a Facility Operator.

Additional Users will contract with the Operator di-

rectly for their respective operations and mainte-nance activities.

If there are multiple Users, the Operator will prorate

the charges among the Users.

AIDEA has the right to use the ore dock for loading

of ore ships subject to White Pass’ priority right to dock tour ships.

The Authority continues active discussions with

other mining companies for potential use of the Skagway Ore Terminal.

CONTACT: James Hemsath, PE, PMP Deputy Director - Development 813 West Northern Lights Blvd.

Anchorage, Alaska 99503 PHONE: (907) 771-3040

Email: jhemsath@aidea.org

Skagway Ore Terminal Background

1968: SOT constructed.

1983: Major user ceased operations due to economic conditions. 1986: Curragh Resources began using SOT for storage and trans-shipment of con-centrates mined at Faro Mine in Yukon Territory. 1990: AIDEA purchased SOT. 1993: Curragh Resources suspended operations at SOT.

1995: Anvil Range re-opened mothballed Faro mine operations, shipping concentrates through SOT until spring of 1997. Mining was suspended and has not recommenced. In 2003, due to advanced corrosion, AIDEA demol-ished CSB structure.

January 2007: AIDEA executed seven-year User Agreement with Sherwood and began constructing new Concentrate Storage Building and support struc-tures. New structures easily expandable to handle mine products of addi-tional users.

October 2007 milestone: For the first time in ten years, mineral concentrates were loaded and shipped from the reactivated Skagway Ore Terminal.

Skagway Ore Terminal

Alaska Industrial Development and Export Authority - Financing Alaska’s Future

Conveyor System and Ship Loader at the Ore Dock

October 2007 Loadout

User Fees Include:

Facility use charge;

Start-up costs;

Building costs;

Reimbursement agreement costs;

A portion of future required capital improvements;

In addition to the above fees, user will pay SOT Op-

erator costs and other third party costs while using SOT. In addition to charges by the SOT Operator for its services, the SOT Operator will pass through to all users all operating and maintenance costs (O&M). This will include reimbursement of any costs incurred by AIDEA in connection with O&M.