Donlin Gold Project Update

According to a recent update reported by Mining.com, Novagold Resources' Donlin Gold project in Alaska has seen a significant increase in its net present value, now projected to be $5.1 billion, up from the $3 billion previously estimated. This increase is largely due to higher commodity prices, despite a 25% rise in costs to $9.2 billion. The project's net present value was calculated based on a $2,100-per-oz. gold price and a 5% discount rate. As noted by Rabi Nizami, a mining analyst at National Bank Financial, the increased costs are largely offset by increased revenues. Donlin's owners are aiming to select a prime contractor during the first quarter to conduct a new feasibility study, with construction expected to begin in 2027 and commercial gold production starting in 2031.