Newmont Mining Corp has come to agreements to acquire a 50% interest in the Galore Creek Partnership (GCP) from NOVAGOLD Resources, and to form a partnership with Teck Resources, who owns the remaining stake. Galore Creek, located in British Columbia, Canada, is one of the largest undeveloped copper-gold projects with resources previously reported by Teck of 8 Moz of gold and 9,000 Mlb of copper.
The NOVAGOLD agreement encompasses a staged and contingent investment of $275 million, with an initial payment of $100 million; a payment of $75 million on the earlier of PFS completion or three years from closing; and a payment of $25 million on the earlier of completing a feasibility study or five years from closing. A final $75 million payment would be contingent on a final decision to develop the project.
“Galore Creek holds the potential to support decades of profitable copper and gold production in a favourable mining jurisdiction, in line with our strategy to create long-term value for our stakeholders,” said Gary Goldberg, President and Chief Executive Officer. “Partnering with Teck allows us to bring both organizations’ considerable technical, financial and sustainability strengths to bear in evaluating and refining development plans for Galore Creek, and to build on the strong relationships Teck has established with the Tahltan First Nation and British Columbia.”
Galore Creek is located within the territory of the Tahltan Nation in northwest BC, some 150 km northwest of Stewart. In addition to size, Galore Creek is also a remarkably high quality porphyry deposit with grades of 0.50% Cu, 0.30 g/t Au, and 5.20 g/t Ag. When compared to other North American copper deposits, Galore Creek has one of the highest copper grades.
Newmont and Teck will define the scope, budget, and timeline for prefeasibility studies over the next several months and expect the studies to be completed over three to four years with an annual budget of $10 to $15 million (50% basis). GCP will be governed by a Management Committee comprised of leaders from Newmont and Teck and managed by a GCP study director and team, supported by Newmont and Teck subject matter experts.
Over the last five years, Newmont has built nine new mines and expansions on four continents – on or ahead of schedule and at or below budget.
