ALASKA — The Donlin Creek feasibility study puts contained gold in proven and probable reserves at 29.3 million oz. The project is a joint venture of Vancouver’s NovaGold and Toronto’s Barrick Gold. An additional 6.0 million oz is estimated to be in the measured and indicated resource plus another 4.0 million oz in the inferred category.
Donlin Creek will be one of only a few gold mines around the world capable of producing more than a million ounces per year. Annual gold production during the first five full years of production will be 1.6 million oz at a cash cost of US$394 per ounce. Average annual gold production will be 1.5 million oz in the first 12 years, and over the 21-year mine life, it will be 1.25 million oz.
Total cost of the project is estimated at US$4.48 billion. An open pit with a 53,500-t/d plant due to start up in 2015 will be built. Plans for the mill include crushing, grinding, flotation, pressure oxidation and CIL recovery. Infrastructure for the mine will include a port on the Kuskokwim River, a 123-km access road from the port to the mine, an airstrip, camp accommodations, tailings management area and both a turbine generator and wind power facilities to supply electricity.
The news release dated April 28, 2009, contains many more details of the plans. It is posted at www.NovaGold.com.