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Power Line Good News for Galore Creek

By 250 News

Thursday, September 17, 2009 04:00 AM

Prince George, B.C.- News the federal and Provincial Government’s are making a financial commitment to build the Highway 37 Transmission line is very good news for Nova Gold.
Nova Gold, together with it’s partner Teck Cominco, own the Galore Creek mining project. 
 Initially, that project agreed to put up $150 million towards the construction of the power line with the Province putting in $250 million. But the mining project was put on hold when construction cost estimates went through the roof.
Since the fall of 2007 when the decision was made to re-examine the Galore Creek project, Nova Gold has been doing studies to see how the mine can be developed at an acceptable cost.  
Greg Johnson, Nova Gold’s Vice President of Strategic Development says the company still plans on building that mine “We have been doing optimization studies, and we believe the capital costs peaked in 2007/2008. Our partner, Teck Cominco has continued working on the road development and has completed some 48 kilometres, so we are more than half way there.  This is going to be a mine someday, but it is a matter of undertaking the needed work to optimize the mine’s operation.” 
Johnson says the final study, which could determine when they resume  work on the mine itself, could be complete early next year, but won’t say if they are prepared to put in the kind of money they had committed in the past to the power line. “We will look at that, certainly this (the $130 million in federal funding) is an asset, and if we get the green light on the other issues ( costs and long term metal pricing estimates) we will look at it.”
As of yesterday, gold was trading as high as $1,023.00 an ounce and copper was $3.00 a pound. When the mine was first planned copper prices were estimated to hit a peak of $1.50 a pound.
The Galore Creek Mine was expected to create up to 1,000 jobs during construction and 500 long term jobs during the life of the mine.

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Posted on Thursday, September 17, 2009 04:00 AM in News by 250 News

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Comments

Comment Posted by: CaringSoul on September 17 2009 8:01 AM
They can put the whole spin on how its going to help Northern communities but we all know what this is ACTUALLY for. MINING! Oh and talk about over kill on the number of posts for this subject alone on Opinion250! Makes one wonder why?
Comment Posted by: seamutt on September 17 2009 10:22 AM
So whats wrong with mining? Where do you think most of your stuff comes from.
Comment Posted by: Andyfreeze on September 17 2009 11:02 AM
Why do so many assume that mining is bad thing?
With today's technology and enviromental controls,it is a GOOD thing!
We need the jobs and we need the financial/economic spin-offs that come from viable,operating mines!
Nowhere is that more true than here in northern B.C.!
Forestry is unlikey to ever come back to what it used to be,so where do we go from here?
Those who are condeming mining as such, have not kept up with how much has changed in the industry!
Outdated thinking at best!
Comment Posted by: diplomat on September 17 2009 12:51 PM
Six and a half billion people on this Earth (and still increasing) need to be kept alive with modern technology. Modern technology requires all kinds of metals and minerals for the production of the chemicals and machinery to keep this up.

Those who think that all this can be done without having some negative impact on nature are living in a dream world.

Once mankind has died out or moved on to spoil another planet the Earth will heal itself in a period of a few ten thousand years and things will be back to normal again.

Comment Posted by: camoose on September 17 2009 6:18 PM
Nice subsity for the mining industry. Taxpayers seemingly have deep pockets. Free enterprise??
Comment Posted by: Denaljo on September 17 2009 7:06 PM
Corporate Welfare - does that make Gordo a Closet Commie???
Comment Posted by: camoose on September 17 2009 7:09 PM
Must do. Comrad Gordo has a nice ring to it.
Comment Posted by: Shellshadow on September 17 2009 8:00 PM
Yes mining is good! I bet that is what the people of Alberta were saying when they allowed the tar sands. Roflmao
Comment Posted by: Shellshadow on September 17 2009 9:22 PM
Yes mining is good! I bet that is what the people of Alberta were saying when they allowed the tar sands. Roflmao