Northern Dynasty hits higher-grades at Pebble

Vancouver – Drilling by Northern Dynasty Minerals (NDM-V) on the eastern section of the Pebble copper-gold-molybdenum project, in southwestern Alaska, has discovered a new zone of higher-grade mineralization.

A series of core holes placed on the east side of the deposit intersected an extensive zone of mineralization situated within the resource area and extending onto adjacent exploration ground. The East Zone, drilled over an area of 600 metres by 600 metres, is associated with an intense alteration zone underlying unmineralized and unaltered Tertiary units that thicken, up to 310 metres, towards the east. A number of the holes ended in mineralization which has been encountered up to at least 725 metres depth.

Results from the diamond drilling include:

• Hole 4149 Drilling intersected 302 metres (from 172 metres depth) grading 0.49 grams gold per tonne, 0.46% copper and 0.026% molybdenum, including a section of 236 metres of 0.54 grams gold, 0.51% copper and 0.027% molybdenum;
• Hole 4293 An intercept of 469 metres (from 248 metres) cut 0.59 grams gold, 0.43% copper and 0.026% moly, and included a higher grade portion of 0.86 grams gold, 0.61% copper and 0.02% moly over 164 metres;
• Hole 4300 A wide 417 metre intersection (from 303 metres) averaged 0.65 grams gold, 0.46% copper and 0.033% moly, and included an higher-grade section of 132 metres assaying 0.98 grams gold, 0.66% copper and 0.017% moly, a deeper section encompassing the bottom 93 metres of the hole returned 0.52 grams gold, 0.31% copper and 0.081% moly.

A noted trend of molybdenum enrichment to depth and to the east was observed. Extensive drilling on the East zone will be required to include any of this new mineralized material in the resource calculation.

Northern Dynasty recently released a positive preliminary assessment on Pebble (TNM, Nov. 12/04) and will be proceeding to feasibility stage on the porphyry mega-deposit. An inferred mineral resource at Pebble was calculated earlier this year, showing 2.74 billion tonnes grading 0.3 grams gold per tonne, 0.27% copper, and 0.015% molybdenum (giving a 0.55% copper equivalent). A key production parameter in the study is the remarkably low stripping ratio of 0.23:1 at Pebble, well below industry averages in large-scale open-pit operations.

Under its 2001 agreement, the company has exercised its option rights acquiring an 80% interest in the deposit from Teck Cominco (TEK-T) through the issuance of 1.77-million shares, representing the final payment of US$9.94-million. Northern Dynasty has also exercised its right to acquire 50% of the surrounding exploration lands from Teck Cominco who now have the option of forming a 50-50 joint venture on the peripheral ground, or to sell it to the company for US$4-million.

The option exercise by Northern Dynasty triggered a 90-day period for the company to elect whether it will acquire the 20% carried interest held by affiliated company Hunter Dickinson Group.

Northern Dynasty reports 45.1 million shares outstanding, as of its latest figures, giving the company a $300-million market capitalization at its recent trading level of $6.60 per share. London-based and AIM-listed Galahad Gold currently holds about a 35% interest in Northern Dynasty.