- Complete mine plan update using higher copper and gold prices and optimized project design
- Initiate pre-feasibility study, completion targeted for first half of 2011
- Maintain and improve existing infrastructure and access road
- Continue community engagement and dialogue with regulators as the project advances toward permitting
NovaGold and Teck have completed a number of optimization studies with the objective of expanding throughput, relocating the project facilities to allow for easier construction and future expansion, and reducing the risks associated with construction and operations. Significant changes to the original design include: increasing throughput to potentially 90,000 tonnes per day, a 40% increase from the original design; realigning the tunnel and access road; relocating the tailings facility to allow for construction of a conventional tailings dam; and relocating the processing facilities to allow for future expansion.
GCMC has initiated a pre-feasibility study for the project that will provide updated capital cost estimates as well as a permitting and construction timeline, with completion targeted for the first half of 2011. Completion of the pre-feasibility study is also expected to add reserves to NovaGold's portfolio, increasing the value of the Galore Creek project for NovaGold's shareholders. Some components of the revised plan, such as the mill and tailings location, would require amendments to existing permits. The majority of permits required for road construction remain in good standing and road work has continued during the 2008 and 2009 summer seasons, establishing access to Km 40 of the proposed 90-Km road. GCMC will continue with road work as the project moves through the feasibility stage, with the objective of shortening the construction timeline and largely eliminating the need for helicopter support.
The Galore Creek property comprises 118,900 hectares (298,840 acres) of British Columbia mineral claims located within Tahltan Nation traditional territory. Since NovaGold initiated work on the Galore Creek project in 2003 the project has received a high level of support from local communities, First Nation groups and the British Columbia Government. In February 2006, NovaGold entered into a comprehensive Participation Agreement with the Tahltan Nation, ensuring collaboration between both parties for mine planning, mine operation and environmental protection. GCMC, NovaGold and Teck continue to work closely with the Tahltan Nation, and nearly 65% of project employees and contractors are Tahltan members. Under the terms of the Galore Creek partnership agreement, Teck is funding all costs until it completes its financial earn-in for the project. As a result, NovaGold expects to have no funding obligations in 2010 for the Galore Creek project
