Mine developers working on new plan
Written by Gordon Hoekstra
Citizen staff
Tuesday, 05 January 2010
NovaGold and Teck Cominco are considering a more aggressive program for 2010 on their Galore Creek project in northern B.C. so they can make a decision on constructing the mine, says partner NovaGold.
The Galore Creek deposit contains 8.9 billion pounds of copper, 7.3 million ounces of gold and 123 million ounces of silver in measured and indicated resources, making it one of the largest undeveloped copper-gold deposits in North America, says the company.
Given the continued strength of the copper and gold markets, NovaGold said it expects to release a new mine plan for the project in early 2010 that will include updated economics using higher copper and gold prices and an optimized project design.
NovaGold also has mine development projects in Alaska.
“We hold one of the best pipelines of gold and base metals mining projects in the Western world,” said NovaGold president and CEO Rick Van Nieuwenhuyse.
The Galore Creek project was put on hold in late 2007 when construction costs for the gold, copper and silver mine more than doubled to $5 billion.
The mine, which had been expected to be complete in 2012, was hailed by the B.C. mining community as a confidence booster as it was the first new major metal mine to start construction in a decade in the province.
It was also touted as having benefits throughout the North in terms of work and supplies, including for Prince George, considered a supply and service centre for northern mining operations.
There were 800 people in seven camps working on the project at the time when it was halted in November 2007.
Last year, Ottawa said it would contribute $130 million to a proposed $404-million power line in northwest B.C., considered a critical element in capitalizing on mining and green energy potential. Galore Creek is one of the mines that could benefit from the power line.
ghoekstra@pgcitizen.ca
