MINING NEWS: Drilling confirms Pebble East potential

2008 exploration will again focus on new discovery; five drills began turning Feb. 13 as geologists work to define resources

By Shane Lasley

Mining News

Final assay results from the 2007 drill program at the Pebble Project in Southwest Alaska are bearing out predictions about the copper-gold-molybdenum deposit made by Northern Dynasty Minerals Ltd. and Anglo American plc, co-owners of the project.

Samples from 157,000 feet taken from 36 drill holes offered enticing clues to the overall size, copper-gold-molybdenum grade distribution and geometry of the Pebble East deposit.

Sean Magee, a spokesman for the partnership formed by the two owners last fall, predicted in December that 2007 exploration and a resulting revised resource estimate would propel Pebble into a unique category as the largest deposit of its type in the world.

The exploration intersected long intervals of high-grade copper-gold-molybdenum mineralization consistently exceeding 1 percent copper equivalent, according to 2007 drill results released Feb. 19 by Northern Dynasty.

Among the most impressive intersects in the assay results:

Hole 7359 intersected 2,228 feet grading 1.42 percent copper equivalent, comprising 0.92 percent copper, 0.50 grams per metric ton gold and 0.035 percent molybdenum. Included in this intersection is a 451-foot interval grading 1.93 percent CuEQ (0.95 percent copper, 1.15 g/t gold and 0.051 percent molybdenum).

Hole 7374 intersected 2449 feet grading 1.19 percent CuEQ (0.61 percent copper, 0.42 g/t gold and 0.056 percent molybdenum). Included in this intersection is a 497 foot interval grading 1.67 percent CuEQ (0.83 percent copper, 0.77 g/t gold and 0.065 percent molybdenum).

Hole 7378 intersected 1846 feet grading 1.45 percent CuEQ (0.91 percent copper, 0.70 g/t gold and 0.021 percent molybdenum). Included in this intercept is a 366 foot interval grading 2.64 percent CuEQ (1.78 percent copper, 1.15 g/t gold and 0.033 percent molybdenum).

Northern Dynasty said five rigs resumed drilling at Pebble East Feb. 13; another seven drills are under contract to come on line by June.

The partnership must agree on a final budget for the 2008 drill season, but Magee told Mining News that spending this year should be similar in scope to the program executed in 2007. Exploration in 2008 will focus entirely on Pebble East, continuing to define its resource base by converting inferred resources to the measured and indicated category. Step-out drilling to the north and south where Pebble East is still open is also part of the plan, he said.

“The Pebble Partnership is thoroughly assessing Pebble East through drilling, engineering and environmental programs in order to integrate this important discovery into an overall pre-feasibility study that is optimal for a modern long-life mine,” Northern Dynasty said in a recent statement.