March 28, 2024

NovaGold hopes to make Galore decision soon

VANCOUVER – NovaGold Resources Inc. (TSX:NG) is considering a new plan for its Galore Creek project in B.C. that would increase production and extend the life of the proposed mine by several years.

The company, which shares the project with Teck Resources Ltd. (TSX:TCK.B), said Monday its enhanced plan would increase the amount of ore to be mined and the could see the addition of a second mill.

Development of Galore Creek, a 50-50 joint venture with Teck, was suspended in November 2007 amid spiralling costs.

NovaGold expects to the enhanced plan will be complete next month when the partners on the project will decide whether or not to go ahead with the a feasibility study and obtaining the required permits.

A pre-feasibility report earlier this year put the cost at building the mine at $ 5.2 billion.

However production from the project in northern B.C. is still years away even if the companies decide to go ahead with the project.

NovaGold estimates that obtaining the necessary permits for the project will take roughly two years and construction will take about four years.

Local news from metronews.ca/vancouver

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