Mining News: News Nuggets: Novagold balance sheet healthy; junior focuses on permitting Donlin Gold Mine
Novagold Resources Inc. Jan. 28 reported year-end 2015 financial results and provided project updates for its 50 percent-owned Donlin Gold and Galore Creek projects. Novagold’s highlight for the year was the publishing of a draft environmental impact statement for the Donlin Gold project. “Our most important achievement in 2015 was the publication of the Donlin Gold draft EIS, a major milestone in the permitting process for the project,” said Novagold President and CEO Greg Lang. “Novagold and its joint-venture partner Barrick Gold are particularly gratified with the professionalism of all the parties involved in the process and the level of constructive engagement of the Native corporations, local communities, various levels of government and non-governmental organizations. We are all working together to achieve an important common goal of permitting this world-class project.” The November release of this environmental document by the U.S. Army Corps of Engineers triggered a five-month comment period, which runs through April 30, for the plan to develop this 39-million-ounce gold project in western Alaska. A series of meetings to accept public input on the Donlin Gold draft EIS are scheduled during the comment period. Six of these meetings have been held over the past two weeks and the balance are scheduled to be held before the end of March. Work at the Galore Creek copper-gold project, which is equally co-owned by Novagold and Teck Resources Ltd., primarily focused on the continued optimization of the integrated mining, waste rock and water management concepts. For the year ended Nov. 30, 2015, Novagold reported US$31.7 million in loss from operations, or US$6.3 million less than the US$38 million in 2014. The company reported lower general and administrative expenses and smaller investments in both the Donlin Gold and Galore Creek project in 2015 compared with the previous year. Novagold reported a net loss of US$32 million for 2015, or about US10 cents per share, compared with US$40.5 million, or US13 cents per share, in 2014. Novagold said it ended its year with US$127 million in cash and term deposits, which the company says is enough to complete permitting of Donlin Gold, fund activities at Galore Creek and fulfill other current obligations In 2016, Novagold expect to spend roughly US$25 million, including US$9 million to fund its half of expenditures at the Donlin Gold project, US$1 million at the Galore Creek project, US$1 million for our share of joint Donlin Gold studies with Barrick, US$12 million for general and administrative costs and US$2 million for working capital and other corporate purposes. During the year ahead, Novagold said it will focus on: advancing the Donlin Gold project toward a construction-production decision; advancing Galore Creek mine planning and project design; maintaining an effective corporate social responsibility program; and evaluating opportunities to monetize the value of Galore Creek.
- Shane Lasley