Optimism abounds moving ahead at Donlin Gold mine
While Novagold and Paulson are committed to exploring this larger potential in the coming years, their initial focus is on upgrading and expanding the immediate deposit in preparation for mine development. Kaplan told investors that the new Donlin Gold partners are already working on assembling a team to complete the feasibility study, which will take the team to a construction decision. Novagold anticipates that it will take about two years to complete the new feasibility study for Donlin Gold. The potential for Donlin to deliver more than the 1.1 million oz per year previously considered is something Paulson indicated in April. "Enjoying excellent social license and formidable exploration upside potential to significantly expand its resources and production profile, Donlin Gold constitutes a superb opportunity for us to gain leverage to gold in the United States at an attractive valuation," he said upon announcing he was buying out Bar- rick's interest. — Shane Lasley, North of 60 Mining News
Corporate Affairs Thom Leonard said during a June 23 visit to the Donlin Gold project. Leonard's assessment of the Don- lin Gold project's potential impacts at both the regional and global levels is not hyperbole. The world-class deposit atDonlin encompasses 45 million oz of gold in 541.3 million metric tons of measured and indicated resources averaging 2.24 grams per metric ton (39 million oz) gold and 92.2 million metric tons of inferred resource averaging 2.02 g/t gold. "As one of the largest known undeveloped gold deposits globally, with approximately 39 million ounces in measured and indicated resources at a grade of 2.24 grams per tonne — more than twice the industry average — we believe Donlin Gold offers sig - nificant production and exploration upside potential," said Lang. There is ample geological evidence that the current resource represents less than half of the overall deposit. Geologists familiar with Donlin have estimated that an overall five-mile trend already detailed through map- ping, sampling, and geophysics hosts at least 100 million oz of gold.
pursue the development of the proj- ect," Barrick Mining President and CEO Mark Bristow said upon the April announcement of the sale. This changing of the guard marked a significant turning point for Nova - gold and the Donlin Gold mine. "This collaboration represents a major milestone in our ongoing com- mitment to unlock the full value of the Donlin Gold project," said Lang. "The personal involvement of John Paulson — one of the most respected and forward-thinking investors in the gold sector — underscores the exceptional quality of the Donlin Gold project." For Calista, TKC, and their Alas- ka Native shareholders, the renewed commitment to unlocking Donlin Gold's value represents a potential economic lift that could be a game changer for the Yukon-Kuskokwim region of Southwest Alaska that has been more than five decades in the making. "We now know this is a world- class deposit – it is going to shift the gold market, but also, just as important, perhaps more important, it is going to shift the economy of our region," Calista Vice President of
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
www.AlaskaMiners.org
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