Name of the Project
Donlin gold project.

Location
Alaska, in the US.

Client
Donlin Gold, which is equally owned by Canada-based miners Barrick Gold Corp and NovaGold Resources, while the land is owned by the Calista Corporation  – a community organisation comprising the Kuskokwim Corporation (TKC) and Alaska Native corporation for the Yukon–Kuskokwim region – which owns the mineral rights.

Project Description
The Donlin gold (formerly Donlin Creek) project, as currently envisioned, will be one of only a handful of gold mines worldwide that produce more than one-million ounces of gold a year.

The 109 km² Donlin Creek property, which is part of the Kuskokwim gold belt, is one of the largest undeveloped gold resources in the world, containing estimated proven and probable reserves of about 504.8-million ounces of gold at a grade of 2.09 g/t, and measured and indicated resources of 541.3-million ounces, as well as inferred resources of 92.2-million ounces of gold.

The project is expected to be capable of producing 1.5-million ounces of gold a year in the first five years of operation, and an average of 1.1-million ounces of gold a year over its projected 27-year mine life.

The project is also being updated to include power generation, using natural gas delivered to the site through a 500 km pipeline from the Cook Inlet to the mine site.

Jobs To Be Created
Up to 3 000 jobs will be created during construction and up to 1 400
jobs during operation.

Value
Initial capital costs for the project in April 2009 were estimated at $4.5-billion. This has now been revised upwards to $6.7-billion.

Duration
Production is expected to begin in late 2017 or early 2018.

Latest Development
Donlin Gold plans to undertake an $8-million drilling programme to further optimise the project.

Donlin has compliant measured and indicated resources of 39-million ounces of gold at a grade of 2.2 g/t, making it one of the largest and highest-quality undeveloped gold deposits in the world.

After reviewing project parameters as outlined in a second updated feasibility study in 2011, the partners have concluded that the potential exists to enhance the project economics through a more cost-effective project execution plan that could substantially reduce upfront capital.

The companies have been focused on finding ways to capitalise on the flexibility inherent in Donlin’s unique characteristics of large, high-grade exploration upside.

The approved programme has been developed as a direct consequence of results achieved from a series of wide-ranging optimisation evaluations of the orebody, in parallel with completing the ongoing permitting activities, which are advancing as planned, the companies have reported.

The companies have stated “significant progress” while working through the final stages of permitting and completing these activities in the most efficient manner possible.

The project’s lead permitting agency, the US Army Corps of Engineers, is working with the cooperating agencies to complete the final environmental-impact statement (EIS) by addressing public comments received on the Donlin draft EIS.

As disclosed in their latest schedule, the Corps expects to receive the final EIS in early 2018.

Work also continues with state and federal agencies to advance all other required permits, including the Clean Water Act Sections 404 and 10 permit, integrated waste management permit, water discharge permit, air quality permit, dam safety approvals, water use permits and fish habitat permits, as well as the land and shoreline lease, and right-of-way approvals.

The latest updated feasibility study for the project envisions a 1.1-million-ounce-a-year project, with initial output averaging 1.5-million ounces of gold a year over an expected 27-year mine life.

The mineral resources are held in only 3 km of an 8 km gold mineralised trend, providing the owners with exceptional exploration opportunities.

Key Contracts and Suppliers
SRK Consulting (technical report) and AMEC Americas (lead feasibility study consultant).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Barrick Gold investor relations manager Joyce Davies, tel +1 416 307 7354, fax +1 416 861 0727 or email jdavies@barrick.com.
NovaGold Donlin Creek, tel +1 888 225 7590, fax +1 907 273 0201 or email info@donlincreek.com.
SRK Consulting, tel +1 907 677 3520, fax +1 907 677 3620 or email anchorage@srk.com.