NovaGold Resources go ahead with a gold prospect in southwest Alaska

Canada’s NovaGold Resources said it will go ahead with a gold prospect in southwest Alaska.

In a statement, NovaGold said an updated feasibility study shows that the total cost of the project is roughly $300 million less than an earlier projection, at about $6.7 billion.

The report also underscored the benefit of using natural gas instead of diesel for power generation, the company said. A pipeline would cost about $834 million.

Pending board approval, which could come next week, the permitting process could be initiated for the Donlin Gold project by April.

Donlin Gold LLC, which holds the project, is owned by subsidiaries of NovaGold and Canada-based Barrick Gold Corp.

The mine would average 1.5 million ounces of gold a year during its first five years of operation, and an average 1.1 million ounces over its projected 27-year life.

Average cash-cost during the first five years would be $409 an ounce, and an average $585 an ounce over the life of the project, NovaGold said.

The project, expected to be an open-pit mine, is about 155 miles northeast of Bethel, or 280 miles west of Anchorage. – BullionStreet

Tags: Gold, Gold mining, Gold mining companies, Gold mining industry, NovaGold Resources

Posted by admin on Dec 7 2011. Filed under Gold mining. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry