Donlin Gold Project In Alaska Gets Major Federal Permits
(Kitco News) - The giant Donlin gold project in southwesternAlaska has received major permits from the federal government, owners BarrickGold Corp. (NYSE, TSX: ABX)and NovaGold Resources Inc. (TSX, NYSE American: NG)announced in a joint statement.
Company officials say this marks the end of amulti-year federal environmental review.
A “record of decision” (ROD) was issued by theU.S. Army Corps of Engineers and U.S. Bureau of Land Management. The Corpsissued a combined permit under the Clean Water Act and Rivers and Harbors Act,while the BLM issued an “offer to lease” for a right-of-way for portions of anatural-gas pipeline that would cross federal lands, the companies said.
However, the project still needs a number ofindividual and state permits, according to a report in the Anchorage DailyNews, the state’s largest newspaper. The newspaper also reported oppositionfrom a number of groups.
Still, the Barrick-NovaGold announcement on Mondaycharacterized the ROD and permits as a significant milestone for the project.
“As one of the largest undeveloped gold depositsin the world, Donlin Gold represents exceptional optionality within ourportfolio,” said Rob Krcmarov, executive vice president for exploration andgrowth with Barrick. “Now, with key permits in hand, we can concentrate onfurther exploring ways of reducing initial capital and unlocking the value ofthis asset for all of our partners, in keeping with our deep commitment tocommunity engagement and environmental stewardship.”
Greg Lang, NovaGold president and chief executiveofficer, added that the effort involved cooperation from some Alaska Nativecorporations.
“The ROD is a very detailed document, which servesas the foundation for issuance of the federal permits required for us to builda technically, environmentally, and financially responsible, as well as asocially sustainable, operation,” he said.
Donlin Gold said the company anticipates providingfurther details in the fourth quarter on future plans for updating a 2011feasibility study.
The project has some 39 million ounces of goldgrading 2.24 grams per tonne in the measured and indicated resource categories,the companies said. This makes it one of the largest and highest-gradeundeveloped open-pit gold projects in the world.
Officials said a prior study showed that DonlinGold has the potential to produce an average of more than 1 million ounces peryear over a 27-year mine life, with “substantial exploration potential beyondthe designed mine footprint.”
By Allen SykoraFor Kitco News
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