Northern Dynasty cuts porphyry in Alaska

Vancouver — Northern Dynasty Minerals (NDM-V) reports that it has discovered new porphyry-style copper mineralization 12 km southwest of the Pebble deposit in southwestern Alaska.

Northern Dynasty’s chief geological consultant and Qualified Person, C. Mark Rebagliati, reported that “classic porphyry-style copper-molybdenum mineralization” has been encountered in drill hole number 34. The hole was completed to a depth of 680 ft. and is associated with an Induced polarization/chargeability geophysical anomaly that measures 3.3- by-1.0 km.

Last month, Northern Dynasty kicked off a “wildcat” diamond drilling program with the goal of identifying new porphyry deposits within the 89 sq. km sulphide system that extends 21 km southwest of the Pebble deposit.

The company reports that it will continue to complete it’s initial program of reconnaissance drilling designed to locate new deposits within the Pebble porphyry district. At the same time it will apply for the required permits for a phase-2 grid style, delineation drilling program of the new discovery. Assay results from the wildcat program are still pending.

The Pebble property consists of 1,215 Alaska State mineral claims, comprising 25,787 ha. located about 380 km from Anchorage and 95 kilometres from tidewater at Cook Inlet. Northern Dynasty has acquired 80% of the option rights granted by Teck Cominco (TEK-T) through an assignment from Hunter Dickinson Group. The assigned options enable Northern Dynasty to explore the vast Pebble mineralized system for more than two years prior to exercising its option to purchase a 100% interest in the known Pebble deposit, free from any underlying royalty. Northern Dynasty can acquire 100% interest in the 36 claims hosting the Pebble deposit by paying Teck Cominco US$10 million in shares or cash prior to November 30, 2003, and by purchasing Hunter Dickinson’s 20% interest by issuing shares. The junior also has the right to earn a 50% interest in the surrounding “Exploration Lands” from Teck Cominco by completing 18,182 metres of drilling prior to November 30, 2004. Once Northern Dynasty is vested in the Exploration Lands, Teck Cominco has a right to form a 50-50 joint venture or sell its remaining interest for US$4 million in Northern Dyanasty shares or cash and granting a 5% Net Profits Interest.

The Pebble porphyry copper-gold deposit hosts 6.6 billion pounds of copper and in excess of 10 million ounces of gold within an estimated inferred mineral resource of one billion tonnes grading 0.3% copper and 0.34 gram gold per tonne. The deposit hosts a higher-grade core zone of 54 million tonnes grading 0.54% copper and 0.46 gram gold.