Rock Creek

Nome Operations comprises three projects located near the town of Nome, Alaska: Rock Creek, Big Hurrah and Nome Gold. NovaGold holds title to patented mining claims covering approximately 6,360 hectares (15,700 acres), with additional lands leased from Alaskan Native corporations, including Bering Straits Native Corporation, Sitnasuak Native Corporation and Solomon Native Corporation, bringing NovaGold's total property position to more than 30,500 hectares (75,400 acres). With an original acquisition price in 1999 of just over US$5 million, Nome Operations has consistently contributed $1 to $3 million in annual cash flow from its sand-and-gravel and land business..

Recent Achievements

  • Maintained project infrastructure and investment
  • Completed significant improvements to water management systems and plant design

The Rock Creek mine would be the first open-pit "hardrock” mine on the Seward Peninsula, an area with significant historical production in excess of 10 million ounces from alluvial gold deposits. Rock Creek sits along the Bering Sea on the southern shore of the Seward Peninsula. Located only 12 Km (8 miles) from the town of Nome, Alaska, the project has brought significant benefits to Nome and surrounding communities through direct employment and training opportunities as well as service-related businesses. Nome has a relatively dry climate, easily accessible terrain and established infrastructure, with roads providing year-round access to the Rock Creek property.

The Rock Creek mine was designed as a 7,000 tonnes-per-day conventional open-pit year-round operation, expected to produce approximately 100,000 ounces of gold per year once in operation. Construction at Rock Creek commenced in the summer of 2006. Commissioning start-up and systems testing began in September 2008 but was subsequently suspended in November 2008 as a result of mechanical and electrical start-up issues coupled with the global financial crisis.

NovaGold placed the project on care and maintenance to protect the infrastructure and investment at the property and has worked diligently with engineers and regulators to remedy water management issues resulting from the suspension of operations. The Rock Creek team has made significant improvements to water management on site to ensure it continues to meet all permit requirements and environmental responsibilities. NovaGold is working with a team of industry experts to assess the development options at Rock Creek to determine the best way to bring value from this project, with a decision expected in Q4-2010

 

Project review underway