Novagold's (NG.TO) preliminary study on its Galore Creek copper-gold-silver project in British Columbia has raised concerns among analysts about increased cost projections and delays. The project, jointly owned by Novagold and Teck Resources (TCKb.TO), could become one of the largest copper mines in North America, but the prefeasibility study indicates that building the mine will cost $5.2 billion, or about 20 percent more than some prior estimates. The study, released earlier this week, also indicates that commercial production from the project is unlikely to begin before late 2017, or early 2018. "We have adjusted our model for the increased capex and the later production start date," said Dahlman Rose & Co analyst Adam Graf in a note to clients. "We had previously modeled for production to ramp up in 2016."
NovaGold Resources Inc. (NovaGold) is a precious metals company engaged in the exploration and development of mineral properties situated principally in Alaska, the United States of America and British Columbia, Canada. Shares of NG fell by 1.29% or $-0.128/share to $9.82. In the past year, the shares have traded as low as $5.98 and as high as $16.90. On average, 3585600 shares of NG exchange hands on a given day and today's volume is recorded at 183094.
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