NovaGold Resources Inc. April 20 announced that a pre-feasibility study is underway for the Galore Creek copper-gold-silver project in northern British Columbia. Galore Creek is owned equally by NovaGold and Teck Resources Ltd. and managed by the Galore Creek Mining Corp.
NovaGold said Galore Creek Mining has been reviewing a number of optimization scenarios for the Galore Creek project with the objective of expanding throughput, relocating the project facilities to allow for easier construction and future expansion, and reducing the risks associated with construction and operations. Based on these studies, the company has identified a preferred project design and initiated a pre-feasibility study for the project, with completion targeted for the first half of 2011. The pre-feasibility study will provide capital cost estimates using higher copper and gold prices than used in previous studies, as well as permitting, construction and production timelines.
Primary changes to the project include:
• Relocation of the tailings facility allowing for construction of a conventional tailings dam
• Relocation of the processing facilities allowing for future expansion
• Realignment of the tunnel and access road
• Potential increase of daily throughput to 90,000 metric tons per day
Current plans envision the ore being crushed in the valley and then conveyed through the tunnel and along the access road to the processing plant. From there, concentrate would be piped along the remainder of the access road to Hwy 37. A trade-off study will identify the best alternative for transport of concentrate to market. The project would use primarily electric power, with a powerline built along the access road to tie into the 287 kV transmission line that the British Columbia and Canadian governments have pledged to build. On April 15 the governments announced that the powerline project has entered the public review process for its Environmental Assessment Certificate.
Some components of the revised plan, such as the mill and tailings location, would require new permits or amendments to existing permits. The majority of permits required for road construction remain in good standing. NovaGold said Galore Creek may continue with road and bridge work as the project moves through the feasibility stage, with the objective of shortening the construction timeline and largely eliminating the need for helicopter support.
