Placer Dome hikes Donlin Creek estimates

Patricia Jones, Petroleum News contributing writer

Placer Dome has boosted its gold resource estimates for its Donlin Creek joint venture in western Alaska, while advancing it to a pre-feasibility stage project.

The Vancouver-based company, through its subsidiary, Placer Dome U.S., said April 9 that the measured and indicated gold resource at the project totals 11.1 million ounces, a 62 percent increase over its original estimate in December.

Another 14.3 million ounces of gold are included in the inferred resource category, bringing the total to 25.4 million ounces. Those estimates are based on an economic mine cutoff of 1.5 grams or .044 ounces of gold per ton of rock.

Average grade of Donlin Creek is three grams, or .08 ounces of gold per ton of rock, richer than the .025 ounces per ton grade average at the start-up of Fort Knox, Alaska’s largest gold mine.

Donlin Creek is a joint venture owned 30 percent by Placer Dome and 70 percent by NovaGold Resources, although Placer Dome is raising its stake to 70 percent. To do so, Placer Dome must spend $30 million, complete a bankable feasibility study and make a decision to build a mine producing at least 600,000 ounces by Nov. 14, 2007, to earn its additional interest. A complete pre-feasibility study is expected by late 2003. Studies are under way on detailed pit designs, mill process work and the layout of site facilities.

On-going environmental monitoring is also being conducted in anticipation of future permitting requirements.