‹ Minerals

A big deposit moves forward

November 02, 2014

Novagold’s Donlin gold project in Alaska is slated to be the second largest gold producer in the world.

The Donlin gold project:

Located in South-Western Alaska, Donlin Gold is one of the largest known undeveloped gold deposits in the world, with probable reserves estimated at 33.8 million ounces of gold. Based on exploration results, the Donlin Gold project will be an environmentally sound, open-pit gold mine. Located about 10 miles from Crooked Creek Village, the project would process approximately 59,000 short tons of ore per day. The Donlin Gold project would provide up to 3,000 jobs during construction, which is estimated to take three to four years. Between 800 and 1,400 jobs are projected throughout the estimated 27+ year operational phase. Infrastructure plans call for a power generation plant, water treatment plant, access roads, housing, two ports, a natural gas pipeline and an airstrip. The mine is estimated to produce on average 1.3 million ounces of gold annually during operation.

The proposed Donlin Gold mine would require an average load of 157 megawatts. To provide the amount of power required to operate the mine at peak capacity, a 14-inch, 312-mile-long buried pipeline to transport natural gas from the Cook Inlet. This pipeline would cost close to $1B.

Novagold Resources Inc. (ticker NG on TSX) trades at $2.77 per share and has a market cap of $878M.



This project has good community support, particularly from Calista, the key Alaska native corporation in the area. The project is very large and would provide many employment opportunities for people living in the region.