Vancouver — Junior Novagold Resources (NRI-T) has closed its deal with Placer Dome (PDG-T) to earn a majority interest in the 13-million-oz. Donlin Creek gold deposit in southwestern Alaska.
“Donlin Creek is an important resource,” says Geoff Handley, Placer’s senior VP of exploration. “We are pleased to have finalized an agreement that will allow Placer Dome the option of participating in the future should the economics of the project prove suitable.”
Situated 480 km west of Anchorage, Donlin Creek hosts measured and indicated resources of 70.1 million tonnes grading 3.06 grams gold per tonne. The estimate is based on a cutoff grade of 1.5 grams gold and excludes an inferred resource of 66.2 million tonnes averaging 2.83 grams gold.
Owing to the historically low gold price, the company will focus on a higher-grade core of 18.8 million tonnes grading 5.2 grams gold. This portion is based on cutoff grade of 3.5 grams gold.
Novagold plans to launch a delineation drill program over the high-grade section next month.
Most of Donlin Creek’s resources are hosted by intrusive dykes and sills, plus high-grade stockworks in surrounding sedimentary rocks.
Gold mineralization is structurally controlled and occurs as disseminations and veinlets in association with fine-grained arsenopyrite.
Metallurgical work by Placer Dome indicates that 89-95% of the gold can be recovered from the intrusive-hosted zones and 76-78% from the sedimentary-hosted portion.
The Donlin Creek property covers 109 sq. km of private patented land which is under lease from the regional and village corporations of the lower Kuskokwim region.
Novagold must spend US$12 million over 10 years to earn a 70% stake in the ground.
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