In 1981, 1982, and 1983, the Bureau of Mines examined the potential for lode deposits of platinum-group metals (PGM) in the Goodnews Bay Ultramafic complex, Alaska. The complex consists of the Red Mountain, Suzie Mountain, and Smalls River Ultramafic bodies and displays concentric zoning of rock types similar to complexes in southeast Alaska, British Columbia, and the Ural Mountains in the U.S.S.R. Results of the study indicate that platinum is preferentially associated with chromite and magnetite in the dunite core of the complex, and palladium is preferentially associated with sulfide minerals in the outer clinopyroxene-rich zones. The most promising targets for PGM lode deposits are the chromite-rich dunite at the heads of Fox Gulch and Squirrel Creek and the iron-nickel and iron-copper sulfide-bearing magnetite clinopyroxenite and hornblende- rich rocks outward of the dunite core, also found in the Fox Gulch- Squirrel Creek area. Significant placer reserves are present in the unmined, deeply buried placer ground in the lower Salmon River Valley and also in tailings from previous dredging.