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Northern Dynasty Minerals Ltd T.NDM

Alternate Symbol(s):  NAK

Northern Dynasty Minerals Ltd. is a Canada-based mineral exploration and development company based in Vancouver. The Company’s principal business activity is the exploration of mineral properties. The Company’s principal asset, owned through its wholly owned subsidiary, Pebble Limited Partnership, is a 100% interest in a contiguous block of about 1,840 mineral claims in Southwest Alaska, including the Pebble deposit, located about 200 miles from Anchorage and 125 miles from Bristol Bay. The Pebble Partnership is the proponent of the Pebble Project. The deposit lies entirely within the Lake and Peninsula Borough, approximately 23,782 square miles of land. The deposit is a Copper-Gold-Molybdenum-Silver-Rhenium project. Its subsidiaries include 3537137 Canada Inc., Northern Dynasty Partnership, U5 Resources Inc., Pebble West Claims Corporation, and others.


TSX:NDM - Post by User

Post by bloomfield18on Feb 14, 2017 11:43pm
280 Views
Post# 25847039

2014 Resource Estimate has Different Metal Pricing

2014 Resource Estimate has Different Metal PricingThere are two values given for gold and copper pricing. There is the one on page 132, section 14.8 of the Dec 31, 2014 report, entitled "Reasonable Prospects Of Economic Extraction". Under the heading Pebble Deposit Conceptual Pit Parameters, gold is assigned a value of $1,540 an ounce, and copper $3.63 lb. Recovery is estimated at 89% and 72% respectively.

Then there are the values of $902 oz gold and $1.85 lb copper assigned on page 118, section 14.1, entitled Pebble Deposit Mineral Resource Estimate 2014. This assumes 100% metal recovery, which isn't possible.

Pricing valuation for the "Resource" is treated differently from "Economic Extraction". I'm not completely sure of the reason for the discrepancy. Perhaps the later recognizes the need to make profit, and may be related to differential metal recoveries, being 100% in the resource estimate, and substantially less in economic extraction. Then there is waste material to consider. That costs money as well. So, we have a theoretical resource estimate price, which everyone quotes, and an economic extraction price for gold and copper which is substantially higher.
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