At Rock Creek, the highest priority is meeting environmental responsibilities, NovaGold said. The company is collaborating with engineers and regulators to complete a revised water management plan for the project and is also assessing the possibility of using wind co-generation for a portion of the project’s power needs, with a goal of reducing both environmental impact and operating costs.

A recent resource update for Rock Creek increased its resources by 24%, bringing total resources at NovaGold’s Nome Operations, including the Big Hurrah hardrock and Nome Gold alluvial gold deposits, to nearly 3 million oz, inclusive of reserves. An updated feasibility study is being completed as part of the project review, and NovaGold anticipates that a significant amount of the new resources will convert to reserves.

The Rock Creek mine is designed as a 7,000-mt/d conventional open-pit, yearround operation, expected to produce about 100,000 oz/y of gold. Since the decision to suspend start-up, the gold price has rallied and prices for fuel and other input materials have decreased. Currently, the company is considering whether to recommence start-up activities, bring in an operating partner or possibly sell the property.

At Donlin Creek in southwestern Alaska, NovaGold is completing a technical report on behalf of the operating company, Donlin Creek LLC, based on the recently completed feasibility study. The report will provide a detailed project description and outline the project economics. The project is expected to have a throughput design of 50,000 mt/d, using on-site diesel and wind cogeneration for power. At this capacity, Donlin Creek would operate for more than 20 years and potentially produce 1 million to 1.5 million oz/y of gold. The mine would be a high-tonnage, yeararound, open-pit operation. Permitting is expected to start in 2009, with a construction decision targeted for 2012.

At Galore Creek, NovaGold and Teck amended their partnership agreement in February 2009, whereby Teck will now fund 100% of Galore Creek costs until the aggregate amount contributed by Teck after November 1, 2008, together with funds previously contributed by Teck on optimization studies equals C$60 million. Both companies continue to hold 50% interests in the partnership, but during the period of Teck’s sole funding, Teck will have a casting vote on the partnership’s management committee with respect to the timing and nature of expenses to be funded. Following Teck’s $60-million contribution, all further costs at Galore will be funded by Teck and NovaGold in accordance with their respective partnership interests, and there will no longer be any casting vote for either party.

Current activity at Galore Creek is focused on improving road access to the project, with a goal of largely eliminating the need for helicopter support, and on maintaining and improving site infrastructure.