NovaGold gets approval for New Brunswick copper mine

A copper mining and processing operation at the Murray Brook mine of NovaGold Resources (TSE) in northern New Brunswick will proceed now that the environmental permits have been received, the company says.

The copper zone is estimated to contain more than 600,000 tons grading 2.5% copper. It is easily accessible by open pit because of the prior removal of three million tons of overlying gold enriched gossan. The gossan yielded 44,500 oz. gold and 316,000 oz. silver during the past three years. The company will use a rapid heap leach method, extracting the copper with sulphuric acid augmented by bio-leach (bacteriological) methods. Construction has started and first copper is expected in September.

Laboratory testing on bulk samples indicates an 80% copper recovery rate during a 90-day period. The technology has been used successfully in Chile during the last decade.

Using Kennecott Cone technology, the copper is precipitated on recycled domestic steel food cans producing a copper cement grading 80% copper. NovaGold’s president, Gerald McConnell, said that the project will operate on a seasonal basis (June to December). It will process 100,000 tons copper and produce 4.0 million lb. copper per year.

Projections indicate an initial capital cost of $560,000 (part of a $1.9-million bank loan), yielding $3 million net profit after debt repayment and taxes.

NovaGold has already pioneered a successful vat-leach gold process at Murray Brook. The same process will be used at NovaGold’s Pine Cove gold property at Baie Verte in Newfoundland. Reserves there are estimated at 1.8 million tons grading 0.10 oz. gold per ton.