The Coast Guard says the Emily Jane struck an iceberg Friday morning 200 yards northwest of the Wrangell Narrows entrance buoy.
The boat took on water and sank.
The crew of the fishing boat Miss Barbara responded to a Coast Guard urgent bulletin and took the three people off the Emily Jane. The state ferry Taku also responded.
The Coast Guard Cutter Elderberry transported pollution and marine casualty investigators to the scene.
The Emily Jane sank with about 800 gallons of diesel fuel on board.
The owner has hired Alaska Commercial Divers to plug fuel vents and place boom around the vessel. Salvage operations will begin Saturday.
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