VANCOUVER, British Columbia, June 22, 2017 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. (NYSE:NG) (TSX:NG) (“NOVAGOLD”) and its partner Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (“Barrick”) are pleased to announce that Donlin Gold LLC, the co-owned operating company which is advancing the Donlin Gold project in Alaska, has approved a drill program designed to further optimize the project.
After completing extensive analysis of the project’s parameters, Barrick and NOVAGOLD concluded that the potential exists to enhance the project economics through a more cost-effective project execution plan that could substantially reduce upfront capital. To this end and to support this effort, the partners have approved an $8-million budget (100% basis) for a drill program designed to collect geologic and geotechnical data this year.
The work of technical experts from Barrick and NOVAGOLD has been focused on ways to capitalize on the flexibility inherent in Donlin Gold’s unique characteristics of large size, superior grade and exceptional exploration upside. The approved program has been developed as a direct consequence of very encouraging results that were achieved from a series of wide-ranging optimization evaluations of the ore body resulting in an operationally sound and potentially financially attractive development approach. Meanwhile, the Donlin Gold team remains focused on completing the on-going permitting activities, which are advancing as planned.
“We are encouraged by the prospects to further optimize the Donlin Gold project, which has the potential to be the largest pure gold mine in the world –in one of the safest jurisdictions of the world. Donlin Gold is a unique asset, which provides Barrick stakeholders with significant optionality,” said Kelvin Dushnisky, President of Barrick. “This jointly-developed program is a reflection of our partnership approach as we work to advance Donlin Gold with financial discipline and with a strong focus on environmental and social responsibility.”
Greg Lang, NOVAGOLD’s President and Chief Executive Officer, added the following: “Donlin Gold’s size, grade, production profile, exploration potential, mine life, community support and jurisdictional safety render it a unique asset in the gold industry. Both partners envision Donlin Gold to be a pacesetter in the mining sector and are completely aligned in their objectives to optimize the project. As permitting activities approach their conclusion, we believe that the approved field work will reaffirm Donlin Gold’s status as the asset best positioned to capitalize on the resumption of the long-term bull market in gold.”
Permitting Activities
Barrick and NOVAGOLD are encouraged to see significant progress as they work through the final stages of permitting and completing these activities in the most efficient manner possible. The project’s lead permitting agency, the U.S. Army Corps of Engineers (the “Corps”), is working with the cooperating agencies to complete the final Environmental Impact Statement (EIS) by addressing public comments received on the Donlin Gold draft EIS. As disclosed in their latest schedule, the Corps anticipates the publication of the final EIS in early 2018. Work also continues with state and federal agencies to advance all other required permits, including the Clean Water Act Sections 404 and 10 permit, integrated waste management permit, water discharge permit, air quality permit, dam safety approvals, water use permits, and fish habitat permits, as well as the land and shoreline lease and right-of-way approvals.
About the Donlin Gold Project
The Donlin Gold project has 39,000,000 ounces of gold measured and indicated resources1 with a grade averaging 2.2 grams of gold per tonne (100% basis), making it one of the largest and highest-quality undeveloped gold deposits in the world, located in Alaska, the second largest gold-producing state in the United States. As per the Second Updated Feasibility Study (defined below), it is projected to average approximately 1,100,000 ounces of gold production per year (with initial production averaging 1,500,000 ounces per year) over an anticipated 27-year life. The mineral resources are encompassed in only three kilometers of an eight-kilometer gold mineralized trend, providing the owners with exceptional exploration opportunities. The project appreciates the strong support provided from its native corporation partners, as well as from the state government and its representatives.
Scientific and Technical Information
Scientific and technical information contained herein with respect to Donlin Gold is derived from the “Donlin Creek Gold Project Alaska, USA NI 43-101 Technical Report on Second Updated Feasibility Study” compiled by AMEC with an effective date of November 18, 2011, as amended January 20, 2012 (the “Second Updated Feasibility Study”). Kirk Hanson, P.E., Technical Director, Open Pit Mining, North America, (AMEC, Reno), and Gordon Seibel, R.M. SME, Principal Geologist, (AMEC, Reno) are the Qualified Persons responsible for the preparation of the independent technical report, each of whom are independent “qualified persons” as defined by NI 43-101.
Clifford Krall, P.E., who is the Mine Engineering Manager for NOVAGOLD and a “qualified person” under NI 43-101, has approved the scientific and technical information related to the Donlin Gold project contained in this press release.
1 Donlin Gold data as per the Second Updated Feasibility Study effective November 18, 2011, as amended January 20, 2012. Represents 100% of measured and indicated resources (541 million tonnes at an average grade of approximately 2.2 grams per tonnes) of which NOVAGOLD’s share represents 50%.
