Het is druk aan Novagold front. November belooft een spannende maand te worden.
AP
NovaGold Completes Feasibility Study
Wednesday October 25, 7:36 pm ET
NovaGold Resources Completes Feasibility Study for Galore Creek Project
VANCOUVER, British Columbia (AP) -- NovaGold Resources Inc., the target of a hostile takeover bid by Barrick Gold Corp., estimated Wednesday that its Galore Creek gold and copper project will cost $1.8 billion to build.
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"The feasibility study confirms that Galore Creek is one of the world's largest undeveloped copper-gold-silver projects with one of the lowest cash costs in the industry," NovaGold president and CEO Rick Van Nieuwenhuyse said in a statement.
In its feasibility study, the company said the project in northwestern British Columbia has proved and probable reserves of 6.6 billion pounds of copper, 5.3 million ounces of gold and 92.6 million ounces of silver.
Average production for the open-pit mine was estimated at 23.7 million tons per year for 22 years, with estimated average annual production of 262 million pounds of copper, 165,000 ounces of gold and 2.7 million ounces of silver.
NovaGold chief operating officer Peter Harris said that, based on the provincial and federal permitting schedule, the project is on target to receive permits in the second quarter of 2007.
Harris said construction will begin as soon as the company gets board approval and the necessary permits.
The company estimated it would take about 18 months for Phase 1 of the project including the mine access road, power transmission line and an access tunnel.
Phase 2, which will focus on the mine infrastructure, was estimated to take another two years.
The company hoped mine production start up could begin in early 2011 after three months of commissioning.
However Pioneer Metals Corp., which has agreed to a friendly takeover by Barrick, has said it plans to oppose a surface lease application by NovaGold where it wants to build a tailings and waste storage area on its Grace property.
Pioneer has claimed the application interferes with its rights to conduct proper exploration and exploitation of the Grace property claims.
NovaGold advised shareholders to sit tight after Barrick increased its hostile takeover bid to $1.7 billion on Tuesday.
Barrick raised its offer to $16 in cash per share, up from $14.50, and extended the bid for a fourth time to Nov. 7. The previous offer was to have expired this week.
NovaGold has resisted Barrick's advances, accusing the Toronto-based company of trying to snatch the company for less than its true value.
In addition to Galore Creek, NovaGold owns a 70 percent interest in Donlin Creek project in Alaska, which has been described as one of the largest undeveloped gold resources in the world. Barrick holds the other 30 percent.
Barrick has said the acquisition of NovaGold would help solidify its growth pipeline through the full ownership of Placer Dome and Donlin Creek.