NovaGold Resources Inc. (TSX:T.NG, Stock Forum) said an updated feasibility study has been approved by the board of directors for the Donlin Gold project located in Alaska.
Donlin Gold is owned equally by a wholly-owned subsidiary of NovaGold and a wholly-owned subsidiary of Barrick Gold Corp. (TSX:T.ABX, Stock Forum).
According to the press release, Donlin Gold has approximately 39 million ounces of gold with a grade of 2.2 grams per a tonne in the measured and indicated resource categories.
Once in operation, it is expected to produce approximately 1,500,000 ounces of gold per year in the first five full years of production and, assuming no expansion, is expected to average well over 1,000,000 ounces per year over its present 27-year life.
The Donlin Gold Board has also given authorization to file permit applications, which is expected to be underway shortly
As part of the plan to focus solely on Donlin Gold, NovaGold also plans to sell its Rock Creek project and its share of the Galore Creek project.
NovaGold is a precious metals company focused on exploration and development of mineral properties in North America.
On Thursday, Donlin Gold was trading for $5.41 a share. The company has a market cap of $1.5 billion, based on $279.5 million shares outstanding. The 52-week high and low was $12 and $5 respectively.