A significant copper-gold-silver asset in Canada, the kind of project you can build a company around.
Galore Creek is located in the traditional territory of the Tahltan Nation in northwestern British Columbia, Canada, approximately 150 kilometers northwest of Stewart. The project is owned by the Galore Creek Partnership in which a wholly-owned subsidiary of NOVAGOLD and Teck Resources Ltd. ("Teck”) are equal partners. All aspects of the project are overseen by Galore Creek Mining Corporation (GCMC), a jointly controlled operating company. Galore Creek is an asset a company can be built around, and has the potential to be one of the largest, highest-quality, lowest-cost copper producers in Canada – one of the few safe jurisdictions remaining for copper miners.
SIZE: 9Blbs copper ; 8Moz gold ; 136Moz silver
As per the 2011 Galore Creek prefeasibility study, with measured and indicated resources (inclusive of proven and probable reserves) of 9 billion pounds of copper, 8 million ounces of gold, and 136 million ounces of silver, Galore Creek would be a very meaningful asset to any large company.
GRADE: 0.50% copper ; 0.30g/t gold ; 5.20g/t silver
In addition to size, Galore Creek is also a remarkably high quality porphyry deposit with grades of 0.50 percent copper, 0.30 grams per tonne gold, and 5.20 grams per tonne silver. When compared to other North American copper deposits, Galore Creek has one of the highest copper grades.
PRODUCTION PROFILE: 6Blbs copper ; 4Moz gold ; 66Moz silver
The prefeasibility study provides for mining and processing facilities with throughput averaging 82,000 tonnes of ore per day, and nominal 95,000 tonne-per-day capacity. The project is forecast to produce 6.2 billion pounds of copper, 4.0 million ounces of gold and 65.8 million ounces of silver over an approximate 18-year mine life. With cash costs expected to average $0.80 per pound of copper at Base Case metal price assumptions, Galore Creek has the potential to be both the largest and the lowest-cost copper mine in Canada.
The prospects for further discoveries at Galore Creek are promising, both within the current deposit and on multiple identified targets in the Galore Valley. Our latest discovery is the Legacy zone – a 700-meter-long mineralized zone adjacent to the central pit that remains open to the south, to the west, and at depth. An 11,649-meter drilling program was completed in 2013 to better understand geological features that could influence the mineralization in Legacy, identify mineral trends, and explore possible extensions of known mineralized zones adjacent to this discovery. Since then, there has not been additional drilling. The focus has been on advancing technical studies.
Located in Canada, Galore Creek is situated in one of the few safe jurisdictions for copper miners – a not insignificant consideration when one sees the challenges copper miners are facing in regions outside of North America.
As a result of the decision in 2012 to focus on the Donlin Gold project, NOVAGOLD began evaluating opportunities to sell all or part of our interest in the Galore Creek project, the proceeds from which would be used to fund development of Donlin Gold. Though it’s a great asset – strong copper grades, significant gold and silver content, growing resources, considerable exploration upside – developing two major mining projects simultaneously could spread our resources too thin. In the meantime, we continue to advance the project on a reduced budget.
Source: Galore Creek Property NI 43-101 Technical Report entitled "Galore Creek Project British Columbia NI 43-101 Technical Report on Pre-Feasibility Study” effective September 12, 2011. A copy of the Galore Creek Technical Report is available here as well as at www.sedar.com or www.sec.gov.
- Represents 100% of measured and indicated resources of which NOVAGOLD’s share is 50%.Measured and indicated resources inclusive of proven and probable reserves.
- Cash costs net of by-product credits. Base Price Case utilizes metal prices of US$2.65/lb copper, US$1,100/oz gold and US$18.50/oz silver and a foreign exchange rate of 1.11 CAD/USD.