Vancouver — As Northern Dynasty Minerals (NDM-T, NAK-x) and Anglo American (AAUK-Q , AAL-l) move the Pebble copper-gold-molybdenum property in Alaska foward, the partners have released an updated resource estimate on the massive project.
Previously, the joint venture had provided two separate resource estimates for Pebble, 500 km southwest of Anchorage — one for the potentially open-pittable Pebble West area and one for the underground Pebble East area.
But with a comprehensive mine plan in mind, the partners, using a 476-hole database that included new 2008 drill results, have lumped the two areas together.
The latest estimate pegs measured and indicated resources at Pebble at 5.1 billion tonnes grading 0.43% copper, 0.35 gram gold per tonne and 0.0256% molybdenum. That translates to 48.5 billion lbs. copper, 57.2 million oz. gold and 2.9 billion lbs. moly at a 0.3% copper-equivalent cutoff.
In addition, the partners report inferred resources of 4 billion tonnes grading 0.27% copper, 0.29 gram gold and 0.022% moly for 23.7 billion lbs. copper, 36.9 million oz. gold and 1.9 billion lbs. moly.
Northern Dynasty president and CEO Ron Thiessen said in a statement: “A modern, long-life mine at Pebble could produce one-quarter of America’s domestic copper supply for fifty-plus years.”
By way of comparison, Freeport-McMoRan Copper & Gold’s (FCX-n) Grasberg mine complex in Indonesia holds the world’s largest recoverable gold reserves, weighing in at 2.8 billion tonnes grading 1.04% copper and 0.9 gram gold per tonne for 64 billion lbs. copper and 89 million oz. gold.
Northern Dynasty acquired Pebble from Teck Cominco (now Teck [TCK. B-T, TCK-n]) in 2001 and subsequently earned a 100% interest. Following drilling between 2002 and 2004, the company produced its first resource estimate for Pebble West. Then, in 2005, it discovered Pebble East.
With the mineralization ballooning in size, Northern Dynasty caught the attention of majors in 2007. First Rio Tinto (RTP-N, RIO-l) acquired a 19.8% stake in Northern Dynasty in January and then Anglo entered into a 50-50 joint venture agreement with Northern Dynasty that summer.
To earn its interest, Anglo must spend about US$1.4 billion on mine development at Pebble.
The first stage of the agreement stipulates that Anglo spend a minimum US$125 million on a prefeasibility study. Anglo must then commit US$275 million towards a feasibility study and mine development.
If it decides to go ahead with construction, Anglo would then be on the hook for up to US$1.4 billion in spending. Thereafter, the project goes forward on a 50-50 basis.
At this point, the partners are vying to have the mine production-ready in 2015.
On news of the updated resource, Northern Dynasty’s share price rose 8¢ to close at $3.04.
Be the first to comment on "Northern Dynasty, Anglo Update Pebble Resource"