ALASKA – Vancouver-based NOVAGOLD RESOURCES says a new study suggests its 70%-owned Donlin Creek gold project could have average annual production of 1.9 million oz of gold for the first seven years of operation. Thereafter, output would be 1.4 million oz annually. Cash costs are estimated at US$223/oz and US$276/oz, respectively, for those periods. The study was prepared by SRK CONSULTING, also of Vancouver.
Other highlights of the study included total construction costs of $2.02 billion, which would cover direct and indirect costs, a 15% contingency, a power line but not $113 million for permitting and exploration or $427 million in life of mine sustaining capital.
NovaGold and BARRICK GOLD of Toronto (which holds a 30% interest in the Donlin Creek project) are locked in an acrimonious takeover struggle. NovaGold is quick to say that the results of the SRK study are “not intended to represent the views of Barrick regarding development of the Donlin Creek project, and does not include any results from Barrick’s 2006 drilling campaign.”
NovaGold’s press release regarding this recent study may be read in its entirety at www.NovaGold.net.