NovaGold Resources Inc. says its updated feasibility study shows a reduction in previously anticipated capital costs, and underscores the benefit of using natural gas instead of diesel for power generation.
Pending board approval, the permitting process could be initiated early next year.
NovaGold says the Donlin Gold project has a projected 27-year life and proven and probable reserves of 33.8 million ounces. NovaGold says its confident further discoveries will be made, which would add to the mine's life.
The estimated startup capital costs for the project are $6.7 billion, including $834 million for a natural gas pipeline. The total cost is about $300 million less than NovaGold earlier expected.