Step-out drilling expands high-grade system at Pebble

Vancouver Recent drilling by Northern Dynasty Minerals (NDM-V, NAK-Q) has extended a newly identified, high-grade porphyry system adjoining the company’s Pebble copper-gold deposit in Alaska.

The latest hole drilled east of the Pebble deposit intersected 721 metres grading 0.89% copper, 0.33 gram gold and 0.055% molybdenum, or 1.41% copper-equivalent. This includes 249 metres of 1.28% copper, 0.28 gram gold and 0.05% moly, or 1.74% copper-equivalent. The company notes that these results, combined with 12 previously drilled and reported holes, “indicate the new porphyry system hosts a substantial volume of mineralized material with excellent copper, gold and molybdenum grades.”

Results from the new system show grades well above those previously encountered at the main Pebble deposit, which hosts vast resources, with 3 billion tonnes in the measured and indicated category, and a further 1.1 billion tonnes classed as inferred. Higher-grade measured and indicated resources stand at 569 million tonnes grading 0.5 gram gold per tonne, 0.46% copper and 0.021% molybdenum, or 0.88% copper equivalent. Inferred resources add another 143 million tonnes of 0.56 gram gold, 0.4% copper and 0.02% moly, or 0.85% copper-equivalent. These resources are based on a cutoff grade of 0.7% copper-equivalent.

Northern Dynasty is carrying out a $44.7-million program at the Pebble project that includes drilling, and engineering, environmental and socio-economic studies. The results will be incorporated into a feasibility study expected to be in hand later this year, or in early 2006. This year’s work program will also include at least five more holes to further define the new porphyry system.

The Pebble project is situated about 95 km from tidewater on Cook Inlet. The company plans to apply for environmental permits next year. While some environmental groups are opposed to the project’s development, other Alaskans support the project. The company says its goal is to permit the optimum project “with full consideration to all socio-economic, environmental and economic factors.”