Northern Dynasty Minerals has received an
NI 43-101 compliant preliminary assess-
ment (PA) from Wardrop of the potential for
development of the Pebble copper-gold-
molybdenum project in southwest Alaska.
Northern Dynasty reported the PA on its
own behalf and, specifically, not on behalf
of the Pebble Partnership, which includes
Anglo American. Anglo American has a
right to earn a 50% interest the project.
Regarding environmental and socioeco-
nomic issues, the Northern Dynasty state-
ment notes that, since 2004, comprehen-
sive baseline studies have been undertaken
in the Pebble project area, including along
the transportation corridor to Cook Inlet, the
marine environment in the area of the port
site, and throughout the broader Bristol Bay
region. "These studies have cost more than
$150 million to date and resulted in an
environmental and socioeconomic database
whose comprehensiveness and depth is
unprecedented in Alaska," Northern
Dynasty states. "The aggregated findings
and analyses of these studies, along with
the Pebble Partnership's ongoing, long-
term engagement with project stakeholders
and federal and state regulators, are signif-
icant corporate assets as it prepares the
Pebble project for permitting."
The Northern Dynasty statement does
not specifically address the concerted and
well-publicized campaign of opposition to
the project, which includes participation
by environmental, fishing and some
Alaska-native groups, as well as more than
50 jewelers, including Tiffany, Zale Corp.
and Jostens, who have pledged to boycott
gold from the project.
The Pebble PA outlines three mine
development scenarios for 25, 45 and 78
years of mine life. The processing rate is
projected at a nominal 200,000 mt/d, and
initial capital development costs are estimated at $4.7 billion, excluding capital
costs associated with outsourced power
and road and port infrastructure. Cash
costs for the 45-year reference case are
estimated at $0.11 per lb of copper, net of
byproduct credits.
The PA outlines an open-pit operation,
with an initial mine life of 25 years and the
potential to develop underground block
cave operations at a mining rate of
150,000-mt/d beyond 25 years. The concentrator would employ conventional
crush-grind-float technology and equipment to produce a copper-gold concentrate
containing 26% copper and 18 g/mt gold,
a 52% molybdenum concentrate, and gold
doré. The PA anticipates construction of a
molybdenum autoclave plant offshore to
treat the molybdenum concentrate, thereby realizing enhanced value through
improved pricing for rhenium and additional copper recovery.
As featured in Womp 2011 Vol 03 - www.womp-int.com
