Thursday, June 23, 2011

Mining PRs and the Ottotrans™, Part 42

Today's attempt to wade through the mining industry's purple prose and get to a grain or two of truth is based upon this morning's NR from Rick Van Alphabet and the guys at Nadagold (NG):

This is what they wrote:
Press Release Source: NovaGold Resources Inc. On Thursday June 23, 2011, 9:00 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 06/23/11) - NovaGold Resources Inc. (TSX:NG - News)(AMEX:NG - News) announces significant advancement towards completion of the prefeasibility study on its Galore Creek copper-gold-silver project ("Project") located in northwestern British Columbia. The study is being prepared by Galore Creek Mining Corporation ("GCMC"), owned equally by subsidiaries of NovaGold Resources Inc. ("NovaGold") and Teck Resources Limited ("Teck").
Completion of the prefeasibility study is expected by the end of July 2011 and AMEC Americas Limited, an independent supplier of engineering and project management services, is concurrently preparing a National Instrument 43-101 compliant technical report. Upon receipt of the technical report, NovaGold will announce the results and file it on SEDAR and EDGAR within 45 days of the announcement.
The partners have approved a $30.5-million budget to carry out further work on the Project during the remainder of 2011. Planned work includes infill drilling to convert inferred mineral resources to measured and indicated categories, geotechnical drilling on the tunnel alignment and geotechnical drilling to confirm open pit slopes in areas targeted for conversion of inferred mineral resources. GCMC will also complete further environmental and engineering work in preparation for feasibility level studies.
"Completion of the prefeasibility study will be an important milestone as we work with Teck to optimize the Galore Creek project," said Rick Van Nieuwenhuyse, President and CEO of NovaGold. "Galore Creek is one of the most significant copper-gold projects in the world. Its timely development is important for all stakeholders, including Federal and Provincial governments as well as First Nation communities of northwestern British Columbia."
During the second quarter of 2011, Teck completed its funding requirements of $373 million to earn its 50% interest in GCMC. The Project will move forward with Teck and NovaGold equally funding further Project development.

And this is what it means:

Press Release Source: NovaGold Resources Inc. On Thursday June 23, 2011, 9:00 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 06/23/11) - We cool dudes at NadaGold Resources Inc. (TSX:NG - News)(AMEX:NG - News) want to remind you all about what's happening at Galore Creek, because since the Kaplan guys sold oodles of shares earlier this year the stock is down about $5 to $9. So anyway, remember Galore Creek? Yeah that's right, the project we brought on board back in 2003 is now aggressively moving to a pre-feas stage! Wowsers, nobody can ever accuse us of dragging our heels, can they? Well in fact that's a bit wrong, because back in 2006 we already had a Full Bankable Feasibility Study done on Galore Creek that put the capex at U$1.8Bn....but then things got a bit smelly and we found out that the real cost of capex would be up to U$5Bn (yeah, five billion dollars) and so our JV partner Teck told us where we could stick our plans. So anyway, here we are nearly four freakin' years later and the new SparklySpangly Pre-Feas is nearly ready and we sure hope that you fall for our smoke'n'mirror exercise one more time, because so far you New York based sheep have been great to us.

Oh, and by the way, Teck has fulfilled its payment obligations on the JV now and so from today there's no more free ride on Galore Creek and we're going to have to burn your money on this dog that will never be a mine, new power line through the joint or not. 

Love and Kisses, Rick!

rick!

UPDATE: Message to Ian Bezek: "Widely respected?" You gotta be kidding dude...that's the last thing we'd want to be known as round these parts.