Northern Dynasty discovers large porphyry system at Pebble

Vancouver A major porphyry system was discovered by Northern Dynasty Minerals (NDM-V, NAK-X) while drilling its wholly owned Pebble copper-gold project in southwestern Alaska.

Core-hole 5327 returned an impressive 2,916-ft. intersection grading 0.87% copper, 0.7 gram gold, and 0.028% molybdenum, or 1.45% copper-equivalent. This intercept includes 605 ft. of 0.9% copper, 1.06 grams gold and 0.013% moly, or 1.6% copper-equivalent, and 290 ft. of 1.08% copper, 1.3 grams gold and 0.029% moly, or 2% copper-equivalent.

The discovery was made while drilling the eastern flank of the Pebble deposit, with the mid-point of the intercept situated about 2,000 ft. east of the advanced deposit. The discovery hole entered the new mineralized system at a vertical depth of 1,500 ft. below surface.

The discovery area is referred to as the East Stock, and at present, its boundaries to the east, south, north, and at depth, are unknown. Based on the alteration and mineralization patterns, however, the company predicts that the minimum expected diameter of the East Stock could be twice the known size, i.e., at least 5,000 ft. across.

The company says the discovery has the potential to “significantly enhance the size and overall grade of the Pebble deposit,” which hosts resources in the measured, indicated and inferred categories totaling 4.2 billion tonnes.

In March of this year, the company reported that the higher-grade portion of the deposit hosted measured and indicated resources of 569 million tonnes grading 0.5 gram gold, 0.46% copper and 0.021% moly, or 0.88% copper-equivalent, plus an inferred resource of 143 million tonnes grading 0.56 gram gold, 0.4% copper and 0.02% moly, or 0.85% copper-equivalent, based on a cutoff grade of 0.7% copper-equivalent.

Northern Dynasty plans to spend about $44.7 million on drilling, engineering, environmental and socio-economic studies to advance the project to feasibility by the end of this year. In 2006, the company plans to prepare and submit environmental permit applications for a large-scale mining operation to produce copper, gold and molybdenum.

Northern Dynasty has 72.6 million shares outstanding (81 million fully diluted) and trades at about $5.26 per share.