Vancouver — An updated resource estimate for the Donlin Creek gold deposit in Alaska has added 4 million oz., most of which are in the Akivik, 400 and Aurora target areas.
The new estimate shows nearly a 40% increase in inferred gold resources for joint-venture partners
The total inferred resource is now pegged at 132.6 million tonnes averaging 3.48 grams gold per tonne, or 14.8 million contained ounces, whereas the measured and indicated figures stands at 73.2 million tonnes of 3.51 grams gold, or 8.3 million oz.
Four diamond drill rigs will continue drilling into December in order to upgrade part of the new inferred resource to the measured and indicated category. NovaGold and Placer Dome will then undertake a comprehensive resource estimate.
Over the next three months, the partnerns intend to spend US$2.9 million upgrading the shallow gold mineralization at the Akivik, Aurora, 400, Acma and South Acma zones to a 50-by-50 metre infill drill-hole density.
NovaGold has already spent the required US$10 million on exploration to earn a 70% interest in Donlin Creek.
Now that NovaGold has vested its interest, Placer Dome has until mid-February to decide on one of its options, which are:
q to remain at a 30% interest and contribute at that level throughout development of the project;
q to convert to a non-contributing 5% net profits interest; or
q to exercise a back-in right to re-acquire an additional 40% interest in the project by completing certain conditions in the next five years.
The conditions include spending at least US$30 million on project development, completing a bankable feasibility study, and agreeing to build a mine that produces not fewer than 600,000 oz. gold per year.
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