WOW on your NDM.
This is the excitement of course.
++++++++++++++++++++++++++++++++++++++++++++++
Northern Dynasty Minerals Ltd (C-NDM) - News Release
Northern Dynasty receives Pebble results
Northern Dynasty Minerals Ltd NDM
Shares issued 18,058,723 Jan 20 2004 close $ 7.40
Wednesday January 21 2004 News Release
Mr. Ronald Thiessen reports
NORTHERN DYNASTY'S PEBBLE GOLD-COPPER DEPOSIT ESTABLISHED AS ONE OF THE
WORLD'S RARE BEHEMOTHS HOSTING RESOURCES OF 26.5 MILLION OUNCES OF GOLD AND
16.5 BILLION POUNDS OF COPPER
Northern Dynasty Minerals has received the results of a new independent
mineral resource estimate for the Pebble porphyry gold-copper-molybdenum
deposit in southwestern Alaska. The estimate was completed by the
internationally recognized minerals industry consulting firm, Norwest
Corporation (Norwest). Its work establishes Pebble as the largest deposit of
contained gold resources in North America. It also establishes Pebble as the
second largest deposit of contained copper resources in North America (Source:
Metals Economics Group, December, 2003).
Norwest has estimated that the Pebble deposit contains 26.5 million ounces of
gold and 16.5 billion pounds of copper within an inferred mineral resource of
2.74 billion tonnes grading 0.55 per cent copper-equivalent (0.30 gram gold
per tonne, 0.27 per cent copper and 0.015 per cent molybdenum above a cutoff
grade of 0.30 per cent copper-equivalent). Importantly, the Norwest estimate
has significantly expanded the higher grade resources to 435 million tonnes of
0.49 gram per tonne gold, 0.42 per cent copper and 0.021 per cent molybdenum,
or 0.84 per cent copper-equivalent above a cutoff grade of 0.70 per cent
copper-equivalent. These higher grade resources will facilitate rapid recovery
of capital costs during the early years of a large-scale mining operation.
Norwest's estimate is based on drill core assay results from 19,948 metres of
drilling in 59 holes completed by Northern Dynasty during 2003 and 18,353
metres in 110 holes by Cominco American Incorporated to 1997. The resource
estimate was completed under the direction of John Nilsson, PEng, project
manager for Norwest Corporation, an independent qualified person as defined by
National Instrument 43-101. Norwest is one of the largest privately held
engineering service companies in North America and employs a highly
experienced team working in all facets of the mining industry. Norwest was
chosen to complete the independent resource estimate at Pebble because of its
extensive bulk tonnage mining experience and its work on numerous North
American projects in Alaska, British Columbia, Yukon and the Northwest
Territories. A technical report detailing the resource estimate will be filed
on SEDAR within 30 days. The specific breakdown of inferred mineral resources
for the Pebble deposit above varying cutoff grades is tabulated below:
PEBBLE DEPOSIT INFERRED
MINERAL RESOURCES(1)
Cutoff Size Grade
Molyb
CuEQ(2) Million Copper Gold denum
per cent tonnes per cent
0.30 2,737 0.27 0.30 0.015
0.40 2,232 0.30 0.33 0.016
0.50 1,573 0.32 0.37 0.017
0.60 883 0.37 0.43 0.019
0.70 435 0.42 0.49 0.021
0.80 208 0.48 0.55 0.023
Contained metal
CuEQ(2) Copper Gold
g/t per cent
0.55 16.5 26.5
0.60 14.5 23.8
0.66 11.3 18.8
0.74 7.1 12.1
0.84 4.0 6.8
0.95 2.2 3.7
Note 1: Mineral resources do not have demonstrated economic viability. An
inferred mineral resource is that part of a mineral resource for which
quantity and grade can be estimated on the basis of geological evidence and
limited sampling and reasonably assumed, but not verified, geological and
grade continuity.
Note 2: Copper and gold equivalent calculations use metal prices of 80 U.S.
cents per pound for copper, $350 (U.S.) per ounce for gold and $4.50 (U.S.)
per pound for molybdenum. The contained gold and copper represent estimated
contained metal in the ground and have not been adjusted for metallurgical
recoveries. Adjustment factors to account for differences in relative
metallurgical recoveries for gold, copper and molybdenum will depend upon the
completion of definitive metallurgical testing.
Copper equivalent equals Cu per cent + (Au g/t x 11.25/17.64) + (Mo per cent x
99.23/17.64).
Gold equivalent equals Au g/t + (Cu per cent x 17.64/11.25) + (Mo per cent x
99.23/11.25).
Bob Dickinson, co-chairman, said: "Our drilling in 2003, has exceeded our
expectations and massively increased the previous estimate of inferred
resources at Pebble. When comparing the world's giant gold-copper porphyry
deposits in terms of contained gold resources, Pebble and Telfer share second
ranking, only behind the huge Grasberg deposit. We plan to develop a major
mine in the shortest possible time frame."
All gold and copper companies in the world are benefiting from the recent
increase in commodity prices but not all global producers are gaining the same
advantage. This is, in part, because miners operating outside of the United
States are being negatively affected by the reciprocal rise in the value of
their own currency in comparison to the United States dollar. With its Alaskan
location, Northern Dynasty's Pebble project will receive the full benefit of
strengthening gold and copper prices and is highly leveraged to profit from
further price increases.
Immediate plans for Pebble are: to develop the drill parameters for definition
of measured and indicated resources, complete a preliminary sizing study that
will facilitate the start of environmental base line measurements for the
permitting process, and collect engineering data for specific mine, mill and
infrastructure design. This work has commenced.
Pebble has an excellent configuration for very low cost open-pit mining. The
mineralization is very continuous with almost no internal waste and is
persistent over a broad area measuring at least three kilometres east-west by
two kilometres north-south. Mineralization begins right at the bedrock surface
which is covered only by a thin veneer of gravel ranging from five to 25
metres thick, indicating the deposit will have an unusually low stripping
ratio. The deposit is open to the south, west and to the east under thickening
tertiary cover. Currently, the deposit averages 350 metres thick and is open
to depth.
Northern Dynasty has substantiated that the Pebble deposit constitutes about 5
per cent of a much larger hydrothermal sulphide system covered by the
property. This mineral-rich terrain is outlined by an 89-square-kilometre
IP/chargeability anomaly, measuring 21 kilometres in length and up to nine
kilometres in width. The United States Geological Survey has listed the Pebble
mineralized system as the most extensive in the world. Large-scale porphyry
systems commonly host multiple deposits and Northern Dynasty's first pass
exploration program in 2002 made several new discoveries indicating
substantial potential for additional gold, copper and molybdenum resources
within this giant mineralized system (see news in Stockwatch July 15, 2002,
and Oct. 15, 2002).
Pebble is favourably located in southwestern Alaska in a region of low rolling
hills with an average elevation of only 350 metres above sea level. The
project is situated only 132 kilometres from tidewater along a proposed level
road route to a year-round deep-sea port on Cook Inlet. The town of Iliamna,
Alaska, 25 kilometres from the project, has an airport with two 1,500-metre
paved runways that serve three daily scheduled flights from Anchorage. The
district also enjoys a more favourable winter climate than much of the
north-central United States.
Drill hole location maps, an outline of the Pebble deposit and a complete
tabulation of assays from Northern Dynasty's drill programs to date may all be
found on Northern Dynasty's Web site at www.northerndynasty.com.
Mark Rebagliati, PEng, is the qualified person for Pebble and is supervising
the quality control and quality assurance program. Logging and sampling are
completed in Northern Dynasty's secure facility at Iliamna. The NQ-size core
is mechanically split and samples are transported to the SGS Mineral Services
laboratory in Fairbanks, Alaska, for sample preparation. Sample pulps are
shipped by airfreight to SGS Canada Inc., in Toronto, Ont. (an
ISO-9002-certified laboratory) for analyses. Gold is determined by fire assay
(FA) fusion with an atomic absorption spectroscopy (AAS) finish. For results
greater than 2,000 ppb gold, samples are reanalyzed by one-assay-ton FA fusion
with a gravimetric finish. Copper assays are conducted with sodium peroxide
fusion and inductively coupled plasma-emission spectroscopy (ICP-ES) finish.
All samples are analyzed for copper and molybdenum, and 31 additional elements
by aqua regia digestion (ICP-ES). Northern Dynasty includes standards and
duplicates in addition to the laboratory's internal quality control work.
(c) Copyright 2004 Canjex Publishing Ltd. stockwatch.com |
