Optimism abounds moving ahead at Donlin Gold mine
Barrick Mining Corp.'s departure from Donlin Gold has not dampened the spirits of the companies and people behind the world-class gold project in the Yukon-Kuskokwim region in Southwest Alaska. Instead, the restructured ownership of the Donlin Gold joint venture, as well as the Alaska Native owners of the land where the 45-million-ounce gold deposit is found, believe the major mining company's exit was a piv- otal moment that will usher in the development of a mine decades in the
making.
Having served as vice president of exploration for Placer Dome during the early exploration at Donlin, Van Nieuwenhuyse was convinced of the world-class gold potential at Donlin. Over the ensuing 28 years, Nova- gold proceeded to prove that poten- tial, outlining a deposit that would support a one-million-oz-per-year gold mine. Over the same span, the gold exploration company built a strong relationship with Calis- ta Corp., the Alaska Native Claims Settlement Act (ANCSA) regional corporation that owns the mineral rights to Donlin, and The Kuskokwim Corporation (TKC), which owns the surface lands at the 45-million-oz gold deposit. Barrick's involvement in Donlin Gold started as a byproduct of its 2006 buyout of Placer Dome, which owned a 30% stake in the project. Following the Placer Dome acquisi- tion, Barrick cut a deal with Novagold to buy an additional 20% interest and form a 50-50 joint venture to ad- vance the project toward production. While the JV advanced Donlin to the cusp of development, the part- ners never came to a consensus on building the mine. While Novagold was eager to advance the project to production, a milestone that would elevate the junior exploration compa- ny to a cash-generating gold produc- er, Barrick was never willing to fully commit to the Alaska gold project. "As a consequence of a rela- tionship or a fraught relationship with our then partner, we were at an impasse," Novagold Resources Chairman Thomas Kaplan informed investors and analysts during a June 25 call. After two decades of playing the long game at Donlin, Barrick decided to sell its 50% joint venture own- ership of the Alaska gold project to hedge fund billionaire John Paulson and Novagold for $1 billion in cash. "The Donlin agreement allows Barrick to exit the Donlin Gold Proj- ect at an attractive valuation, while allowing Novagold and Paulson to
"Completing the Donlin Gold transaction was a strategic achieve- ment, opening a new and exciting chapter in the development of this cost-effective, long-term open-pit project, in Alaska, a state that wel- comes responsible economic devel- opment," said Novagold Resources President Greg Lang. This exciting new chapter has been nearly three decades in the making for Novagold, which was founded by Rick Van Nieuwenhuyse in 1997.
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The Alaska Miner
Summer 2025
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