|
Donlin Creek Donlin Creek is one of the world's largest undeveloped gold deposits, owned and operated by Donlin Creek LLC ("DCLLC”), which is owned equally by NovaGold and Barrick Gold U.S. Inc. Based on the 2009 project feasibility study, Donlin Creek is expected to be one of just a handful of gold mines worldwide that produces more than one million ounces of gold annually, making it a true world-class asset. Based on the current 33.6 million ounce gold reserves, the anticipated mine life is approximately 25 years with a mill throughput of 53,500 tonnes per day. Comparison of Undeveloped Gold Projects in the Americas Source: Metals Economics Group, company websites and NovaGold. Includes projects listed with primary metal as gold. (1) Measured & Indicated Resources includes Proven & Probable Reserves. (2) Represents 100% of Donlin Creek reserves and resources, of which NovaGold owns a 50% interest.Recent Achievements
Project Objectives
The 2009 feasibility study estimated total cash costs for the first full 5 years of operation at US$394/oz using a combination of wind and diesel power. DCLLC has since completed preliminary optimization studies to evaluate the potential of bringing a source of natural gas to the project by building a pipeline from the Cook Inlet to the mine site. Using natural gas rather than diesel to generate on-site power could result in a reduction of power costs, which represent approximately 25% of the projected total operating costs at Donlin Creek. The capital cost of the pipeline could be partially offset by cost savings from elimination of the wind cogeneration facility, the potential for a shorter access road and a significant reduction in requirements for diesel storage, with some additional cost reduction opportunities. The potential impact of the pipeline option on capital and operating costs will be addressed in a revision to the project feasibility study. The pipeline studies and feasibility study revision will likely take 12 to 18 months, positioning the project to file permit applications by the end of 2011. In 2009, NovaGold was the co-recipient of the Thayer Lindsley Award for its role in the discovery of the Donlin Creek deposit. Since acquiring an interest in the Donlin Creek project in 2001, exploration activities have more than tripled the size of the project's resource base. The current reserve/resource is contained within only a small portion of the overall property and NovaGold believes there is considerable potential to expand the gold resource at Donlin Creek. Numerous other targets have been identified along the 8-Km-long (5 mile) mineralized trend. Defined by surface sampling and widespread historical drill holes containing significant gold values, these targets remain highly prospective for future discovery. The 32,600 hectare (80,600 acre) property includes both Alaska state claims and private land leased for mining from two Alaskan Native corporations: Calista Corporation (subsurface rights) and The Kuskokwim Corporation (surface rights). Donlin Creek is proud to maintain a high local hire rate at the project, with the majority of contractors and employees coming from local communities. DCLLC works with Calista through its subsidiary, Chiulista Camp Services, to develop the regional workforce, providing training opportunities that encourage community members to develop new skills and advance to senior positions at site. DCLLC will continue to work closely with regulators, its Alaskan Native partners and local communities to ensure all stakeholders are informed and engaged as the project advances. |
|
