BRITISH COLUMBIA - Having fought off the takeover intentions of Barrick Gold, NOVAGOLD RESOURCES of Vancouver has announced that it is forming a partnership with Vancouver-based TECK COMINCO for the development of the Galore Creek gold mine in the northwestern part of the province. The project will be equally owned by the partners.
To earn its 50% interest in the Galore Creek partnership, Teck Cominco will fund approximately US$478 million in construction costs, with each company responsible for its pro rata share of funding thereafter. In addition, NovaGold will receive up to US$50 million of preferential distributions once Galore Creek is fully operational, if the project exceeds certain agreed upon minimum revenues in the first year of commercial production.
Galore Creek is expected to produce 432 million lb of copper, 341,000 oz of gold and 4 million ounces of silver annually for the first five years of production, transitioning NovaGold to a mid-tier producer and significantly increasing Teck Cominco's annual production. With over 540 million t of reserves and approximately 1 billion t of resources, there remains considerable potential to increase annual production and extend Galore Creeks life beyond 20 years.
Visit www.NovaGold.com for detailed information about Galore Creek.