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

Donlin Gold LLC partners Novagold Resources Inc. and Barrick Gold Corp. are more than 8,650 meters into a 20,000-meter drill program that will likely provide the final data needed for an optimized plan for a mine at the 39-million-ounce gold project in Southwest Alaska.

"After the 2021 drill season, we anticipate that, on the completion of the updated geologic model and, subject to a formal decision by the Donlin Gold LLC Board, we will turn our attention to the upcoming feasibility study with Barrick," Novagold Resources President and CEO Greg Lang informed shareholders in a letter included in the company's second quarter 2021 results.

As the partners close in on an updated feasibility study, Donlin Gold and its Alaska Native partners – Calista Corp. and The Kuskokwim Corp. – continue to make headway on obtaining the final state permits needed to develop a mining operation that matches the world-class deposit.

"During the second quarter, Donlin Gold, together with Calista and TKC, continued to provide support to state agencies in their efforts to advance remaining permits and approvals needed for the project," Lang added. "Several key permit decisions were made in support of the project in the quarter."

This includes Alaska's Department of Environmental Conservation Commissioner Jason Brune's decision to uphold a certification of reasonable assurance that the proposed Donlin Gold Mine will comply with state water quality standards. This decision, however, has been appealed to a higher court.

Drilling success

The four rigs turning at Donlin Gold have completed more than 28 of the 64 holes slated for drilling this year in the ACMA and Lewis areas of the world-class deposit. This drilling is focused on continuing to confirm geologic modeling concepts, validate mineralization continuity, and test for extensions of high-grade zones encountered with the roughly 23,400 meters of drilling completed in 85 holes last year.

Highlights from the 2020 drilling include:

• 45.9 meters averaging 5.03 grams per metric ton gold from 35.4 meters in hole DC20-1866.

• 41.9 meters averaging 11.61 g/t gold from a depth of 30.4 meters in DC20-1871.

• 7.7 meters averaging 18.4 g/t gold from 60.9 meters in DC20-1873.

• 4.2 meters averaging 80.6 g/t gold from 123.5 meters in DC20-1877.

• 22.1 meters averaging 4.7 g/t gold from 158.8 meters in hole DC20-1886.

• 33.9 meters averaging 6.5 g/t gold from 218.2 meters in hole DC20-1886.

• 6.9 meters averaging 43.1 g/t gold from 178.6 meters in hole DC20-1888.

"We are excited to be building upon a successful 2020 drill program which included significant higher-grade gold intersections indicative of the impressive nature of this deposit," said Lang.

No assay results have been reported from the 2021 drill program.

Reasonable assurance appeal

While assembling more detailed geological data for an optimized feasibility study and ultimately a construction decision for a world-class gold mine, Donlin Gold continues to work toward collecting the final state authorization needed, including water permits and right of way agreement for the 300-mile pipeline that will deliver natural gas to the proposed mine.

Following a six-year permitting process under the National Environmental Policy Act (NEPA), the U.S. Army Corps Engineers and Bureau of Land Management have already approved the federal permits needed to develop the mine proposed by Donlin Gold.

Part of the Alaska permitting process is the issuance of a certificate of reasonable assurance that the proposed mine approved by federal regulators will comply with the water quality standards, which was issued by DEC in 2018.

Earthjustice, a San Francisco-based law firm acting on behalf of the Orutsararmiut Native Council in Bethel, Alaska, challenged this certificate on the grounds that DEC cannot provide reasonable assurance a mine at Donlin will meet water quality standards for temperature, mercury, and protection of existing uses.

In April, Administrative Law Judge Kent Sullivan from the Alaska Office of Administrative Hearings, who heard the case, concluded DEC had not demonstrated with reasonable certainty that Alaska water quality standards would be met.

Judge Sullivan's decision was sent to the state for review and Alaska DEC Commissioner Jason Brune had 45 days to determine whether to accept the decision, return it to the administrative law judge to consider additional evidence, revise its enforcement action, or reject the finding.

In a 50-page response, Brune affirmed the state's position that there is reasonable assurance that the Donlin permits issued under the federal Clean Water Act would meet Alaska's standards for water temperature, mercury concentrations, and existing uses.

On June 28, Earthjustice appealed the DEC commissioner's decision in Alaska Superior Court.

In response to this expected appeal, Donlin Gold said it "strongly believes that the Commissioner's decision to uphold the 401 Certification validates the project stakeholders' commitment to advance the Donlin Gold project in a safe and environmentally responsible manner for the benefit of all Alaskans."

"Simply put, we will not operate the Donlin Gold project without demonstrated compliance with the State's water quality standards," Lang informed Novagold shareholders. "Throughout the multi-year permitting process, Donlin Gold engaged with all relevant parties to answer their questions and address their concerns. We look forward to continuing that practice."

Community engagement

Above and beyond answering stakeholder questions, Donlin Gold, Calista, and TKC have carried out a wide range of community engagement and support initiatives:

Novagold Resources Inc.

While collecting data for an optimized feasibility study for Donlin Gold, Barrick and Novagold continue to work toward obtaining the final state authorization needed to develop a world-class gold mine.

• Finalized shared value statements with two additional villages from the Yukon-Kuskokwim region for a total of seven shared value statements – Akiak, Sleetmute, Napaimute, Crooked Creek, Napaskiak, Nikolai, and Tuluksak – to date. These agreements include educational, environmental, and social initiatives to help support villages.

• Held the Lower Kuskokwim School District's annual College and Career fair, where more than 42 vendors and 100 students attended the virtual event held in April.

• Launched a Subsistence Community Advisory Committee which will strengthen the role of Donlin Gold in guiding subsistence activities within the Kuskokwim River drainage.

"As a company, we aspire to make a positive difference in the Alaskan communities in the Y-K region. That's why we give community members a chance to be heard," said Lang. "Through that exchange of ideas and approaches, we develop lasting solutions to improve the way of life in the communities."

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.

• Email: [email protected]
• Phone: (907) 726-1095
• https://www.linkedin.com/in/shane-lasley-ab073b12/