With gold prices remaining high – and forecast to remain that way for some time – some of the world’s largest undeveloped gold resources are now on the path to commercialization.
The Assay has researched the state of a number of world-class projects and can provide an update on the progress of some of these game-changing developments.
Donlin Gold Project
In Alaska, Donlin Gold joint venture partners, Barrick Gold (TSX: ABX) and NovaGold Resources (TSX: NG), are investing in what is considered the world’s largest precious metals exploration budgets in many years to advance the massive 39Moz @ 2.24g/t resource.
With a US$60M budget, the 2022 exploration work is supporting the companies’ modelling concepts and strategic mine planning work with the project in the feasibility study stage.
Current activities at Donlin are focused on the drill programme, optimization efforts, community outreach, and advancing the remaining state permitting actions.
Malina Gold Project
In Western Australia, a new Prefeasibility Study (PFS) on DeGrey Mining’s (ASX: DEG) Malina Gold Project (aka as Hemi) has put the project firmly on the path to development.
The PFS results included the release of a Maiden Hemi JORC Probable Ore Reserve of 5.1Moz @ 1.5g/t Au and surmized that Hemi in production will be in the top five Australian gold mines and a top three global undeveloped gold development project.
De Grey managing director and CEO, Glenn Jardine, said the PFS has confirmed the Mallina Gold Project is a globally significant Tier 1 project and presents a potentially commercially viable development opportunity, with significant upside.
“We have been targeting material improvements in annual gold production rate, grade, mine life, confidence levels, and project economics from last year’s scoping study.
“Total production has increased by nearly 50% from the scoping study to 6.4Moz with the annual gold production rate increasing by around 25% to 540,000oz per year over the first ten years.
“The increased production has been achieved at increased levels of JORC Measured and Indicated Resources within the production profile averaging close to 90% over the first ten years of production compared with 70% in the scoping study.
“Today, we also announce the maiden Hemi JORC Probable Reserve of 5.1Moz @ 1.5g/t Au, one of the largest and highest-grade maiden reserves in recent decades. The maiden Hemi Reserve leverages off the Hemi Mineral Resource update announced in May this year of 8.5Moz @ 1.2g/t Au of which 5.8Moz @ 1.3g/t Au are of JORC Indicated classification.
Valentine Gold Project
Marathon Gold Corporation (TSX: MOZ) has made a formal decision to proceed to construction of the Valentine Gold Project in the central region of Newfoundland and Labrador.
The decision was made following the recent successful completion of the project’s provincial and federal environmental assessments, an updated cost to complete assessment, and an evaluation of the overall investment merits of the project.
“Valentine is one of Canada’s best undeveloped gold deposits located in one of the world’s best mining jurisdictions,” president and CEO, Matt Manson, said.
“This is a project blessed by its location, by the simplicity of its design and operation, by the strong support of its stakeholders and community partners, and by its rich endowment of gold mineralization. After more than three years of environmental assessment we have now been approved by the regulators to move forward with its development.
“The company’s decision to proceed with construction of the Valentine Gold Project considers the impact of almost two years of market inflation on the project’s costs, as well as a necessarily cautious approach to project management, contingency, and scheduling.
“We currently assess that the project’s construction cost to complete, including early works being carried out in the fourth quarter of 2022, will be in the range of C$470 to C$490M.
“However, we are also recognizing the potential value of the project as it continues to grow. The future addition of the new Berry Deposit, which forms the centre of our ongoing mine planning, offers an extension to the project’s mine life and an improved gold production profile, even as we manage the increased cost-of-entry to the business.
