Canadian Mining Journal

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GOLD: Donlin has key permits, NovaGold sells Galore Creek share



The Donlin gold project finally has all the major federal and state permits needed to move forward. (Image: NovaGold Resources)

ALASKA – Vancouver-based NovaGold Resources says the Donlin gold project 450 km northwest of Anchorage has received the record of decision and all the key federal and state permits needed to move forward. NovaGold and 50% partner Barrick Gold of Toronto are de-risking the project and updating the 2011 feasibility study.

At 1.1 million oz. of gold per year, Donlin has the potential to be a very large, high grade open pit gold mine. The measured and indicated resources are 541.3 million tonnes grading 2.24 g/t gold and containing more than 39.0 million oz. The proven and probable reserves (included in M&I) are 504.1 million tonnes grading 2.09 g/t and containing 33.8 million oz. of gold. There are also 92.2 million inferred tonnes at 2.02 g/t gold, containing 5.9 million oz.

NovaGold points to the exploration upside at Donlin. The property hosts a number of deposits, but the current resource estimate covers only 3 km of an 8-km long mineralized gold belt. There is also “moderate-to-high” potential for the known gold zones to extend beyond the pit shell.

NovaGold’s 50% option of the Galore Creek gold project has been sold to partner Newmont Mining, putting $200 million in the NovaGold treasury. There will be an additional payment of $75 million when construction is approved. Galore Creek is located 75 km northwest of the former Eskay Creek gold mine in British Columbia.

The Donlin gold project is described in detail at www.NovaGold.com.