North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Novagold Resources Inc. April 4 released its first-quarter financial results and updates for its 50 percent-owned Donlin Gold project in Alaska and its 50 percent-owned Galore Creek copper-gold-silver project in British Columbia.

At Donlin Gold, the U.S. Army Corps of Engineers continues to collect public comments on the draft environmental impact statement for the gold project.

Meetings to collect comments on the draft EIS were held in Anchorage and in communities across the Yukon-Kuskokwim region where Donlin is located.

The Corps will continue to accept written comments on the draft EIS until the close of the comment period, expected to be at the end of April, at which point the proposed document will be reviewed and responded to in a final EIS, expected in 2017.

Donlin Gold LLC - equally owned by subsidiaries of Novagold and Barrick Gold Corp. - is also advancing other major permit applications and approvals.

Public comment opportunities were provided for the project's Public Notice CWA Section 404 permit application, which will facilitate a Section 404 permit decision following the publication of the final EIS. BLM also provided opportunities for public comment on the proposed right of way for the proposed 300-mile natural gas pipeline.

Donlin Gold responded to an initial State of Alaska review of the project's integrated waste management permit application and reclamation plan, as well as its major source air quality permit application.

Donlin Gold also worked to finalize its water discharge permit application for state submittal.

At Galore Creek, Novagold continued to work with project partner Teck Resources Ltd. on technical studies in project mine planning and design, as well as waste rock and water management.

The initial phase of a generalized tunneling practice study is also well underway to evaluate access and material handling.

"We anticipate that, when the copper markets turn, these efforts will further enhance the value and marketability of this major project.

As we continue to assess the attractiveness of Galore Creek as a Tier 1 copper asset in a rare safe jurisdiction for the miners of the metal, we feel even more strongly that Galore Creek will realize material value for our shareholders," said Novagold President and CEO Greg Lang.

At Feb. 29, Novagold had US$116.94 million in cash and term deposits, a decrease of US$9.8 million from the end of the prior quarter.

The decrease was primarily related to US$7.7 million used in operating activities for administrative costs, withholding taxes on vested performance share units and working capital changes, US$1.9 million to fund Donlin Gold and US$200,000 to fund Galore Creek.

In 2016, Novagold expects to spend roughly $25 million, including US$9 million to fund its share of expenditures at Donlin Gold; US$1 million at Galore Creek; US$1 million for its share of a joint Donlin Gold studies with Barrick; US$12 million for general and administrative costs; and US$2 million for working capital and other corporate purposes.

"With $117 million in cash and term deposits at the end of the first quarter, we have more than sufficient capital to advance Donlin Gold through permitting to a construction decision and beyond," Lang said.

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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