NovaGold Resources Inc. (TSX:NG) reported the results for the second quarter of 2012, and announced the approval of the Updated Feasibility Study of the Donlin Gold project, one of the largest and highest grade open-pit gold projects in the world, allowing the company to file permit applications and commence operations.
As quoted in the press release:
Other Significant Highlights:
- Completed the spin-out of the newly-formed public entity NovaCopper Inc., which owns the Upper Kobuk Mineral Project located in the Ambler district in Alaska, one of the richest and most-prospective copper-dominant polymetallic districts in the world
- Implemented divestiture of the Rock Creek project to further simplify NovaGold’s asset structure and focus on Donlin Gold
- Initiated the process of divestiture of NovaGold’s share of the Galore Creek project where the exploration program is on track and on budget, with an updated resource statement expected later in 2012
- Maintained strong cash balance with approximately $300 million, sufficient to take Donlin Gold through permitting and satisfy all pending financial obligations
An exerpt of the Presiden’t message quoted from the press release:
The Company completed the spin-out to its shareholders of the Upper Kobuk Mineral Project located in the highly prospective Ambler district, as a distribution of shares of NovaCopper Inc., a separate TSX and NYSE-MKT listed company (trading under the symbol NCQ) led by Rick Van Nieuwenhuyse, the Founder and former Chief Executive Officer of NovaGold. Rick’s team discovered Donlin Gold and Galore Creek and we are looking forward to another discovery in the Ambler district. NovaGold’s shareholders are now well positioned to crystallize value from their interest in this significant asset. NovaGold, on the other hand, can now focus most of its attention on the advancement of its flagship Donlin Gold project.