With permitting nearly complete, partners carry out optimization drilling
If this year’s US$8 million drill program is any indication, Barrick Gold Corp. and Novagold Resources Inc. are getting serious about building “the largest pure gold mine in the world” at their Donlin Gold project in Southwest Alaska.
“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,” said Novagold President and CEO Greg Lang. “Both partners envision Donlin Gold to be a pacesetter in the mining sector and are completely aligned in their objectives to optimize the project.”
This will be the first significant field program at the 40-million-ounce gold project since Donlin Gold LLC – equally owned by subsidiaries of Novagold Resources Inc. and Barrick Gold Corp. – completed a feasibility study in 2011 and submitted the project for permitting the following year.
The Donlin Gold mine project outlined in the feasibility study is projected to average roughly 1.5 million ounces annually during the first five years of operation and 1.1 million oz annually over a projected 27-year mine-life.
At US$1,200/oz. gold, the base case price used in the study, this operation is calculated to generate after-tax cash flow averaging US$949.5 million annually for the first five years and US$500.7 million annually over the life of the mine.
For the rest of this article: http://www.petroleumnews.com/pntruncate/372095686.shtml