TORONTO (miningweekly.com) – The owners of the Pebble copper/gold/molybdenum project, in Alaska, have approved a $59-million budget and work plan for the asset this year, with the potential for spending to increase to $70-million.

Diversified global miner Anglo American owns 50% of the project and Vancouver-based Northern Dynasty Minerals holds the balance.

The companies plan to complete a prefeasibility study on the asset, and will also be making preparations to begin permitting the mine in 2010.

"The primary focus of the Pebble partnership team in 2009 will be to produce the optimal project design, from an environmental, social and economic perspective," said Northern Dynasty president and CEO Ron Thiessen.

Pending the outcome of engineering trade-off studies currently under way, the partnership board will meet in August to finalise the prefeasibility study schedule and authorise additional programme expenditures this year.

"Not only does Pebble Partnership expect to finalise a prefeasibility study, it will also be preparing to enter the State and Federal permitting process under the National Environmental Policy Act in 2010,” Thiessen said.

The budget for 2009 includes a site investigation programme to undertake resource drilling and support environmental studies, an engineering programme to finalise trade-off studies ahead of completing the prefeasibility study, and an ongoing environmental study programme, a public affairs programme and corporate and administrative costs.

These approved expenditures are expected to be supplemented by additional engineering and site investigation activities in the latter half of 2009, including geotechnical and metallurgical drilling. Additional programme details will not be known until a supplemental budget is authorised.

To maintain its 50% interest in the Pebble partnership, Anglo American must make staged cash investments totalling $1,425-billion, to advance the project.

In April 208, the companies named John Shively as CEO of the Pebble partnership, and most of the other senior posts have since been filled.

The partnership has also assembled a growing team to prepare the prefeasibility study, including 20 senior engineers and technical specialists (many consulting from Anglo American), assisted by 58 engineering firms and specialised consultancies from around the world.

"Pebble has the potential to become a modern, long-life mine that could produce up to one-quarter of America's domestic copper supply for more than 50 years, as well as substantial volumes of gold, molybdenum and other metals," Thiessen said in a statement on Thursday.

"A project of this stature requires a first-class development team that's committed to setting new standards for environmental and social performance, and that's exactly what the Pebble Partnership represents."

According to a December 2008 estimate, the Pebble project contains resources of 5,1-billion tons in the measured and indicated categories, grading 0,77% copper-equivalent, and containing 48-billion pounds of copper, 57-million ounces of gold and 2,9-billion pounds of molybdenum.

The project also has inferred mineral resources of 4-billion tons, grading 0,55% copper equivalent and containing 24-billion pounds of copper, 37-million ounces of gold and 1,9-billion pounds of molybdenum.

The resources were calculated at a 0,3% copper-equivalent cutoff.