Name of the Project
Donlin Gold project.

Location
Alaska, in the US.

Project Owner/s
Precious metals company Novagold Resources and global investment management advisory firm Paulson Advisers.

Project Description
The project has the potential to become one of the largest gold-producing mines in the world, producing an estimated 1.5-million ounces a year of gold in the first five years of operation and about 1.1-million ounces a year over its 27-year life.

The project is expected to be a conventional openpit, truck-and-shovel operation.

Peak production rates are expected to reach 155-million tonnes a year. The mining equipment required includes large hydraulic shovels, front-end loaders, ultra-class haul trucks, rotary blast-hole drills, and various support equipment, including track and wheel dozers, graders, water trucks, and excavators.

The process plant will be fed with stockpiled low-grade ore for two additional years following the completion of mining. 

Donlin Gold is proposing to build a subterranean natural gas pipeline to serve as the energy source for on-site power generation. The 507 km, 356-mm-diameter steel pipeline would transport natural gas from the Cook Inlet region to the project site.

Potential Job Creation
Up to 3 000 jobs will be created during construction and up to 1 400 jobs during operation.

Net Present Value/Internal Rate of Return
According to the 2021 technical report, the project has an after-tax net present value, at a 5% discount rate, of $3.4-billion using a gold price of $1 500/oz, and internal rate of return of 9.2%, with a payback of 7.3 years.

Capital Expenditure
The total estimated initial capital cost to design and build the Donlin Gold project is $7.4-billion according to the National Instrument 43-101 Technical Report on the project, effective June 1, 2021, and the S-K 1300 Technical Report Summary effective November 30, 2021.

Planned Start/End Date
Not stated.

Latest Development
Engineering firm Fluor Corporation has been appointed to lead the bankable feasibility study (BFS), following a competitive bidding process involving several major engineering firms.

The BFS will follow an integrated approach that combines engineering, cost, scope and scheduling to produce an investment-grade study. 

Completion is targeted for 2027, with a detailed schedule and budget expected to be released in the coming months.

Fluor will be responsible for integrating major work packages and coordinating with specialist contractors covering key infrastructure and processing components, including the power plant, natural gas pipeline, pressure oxidation circuit and oxygen plant.

The company will also oversee the delivery of the overall engineering, cost and schedule framework, drawing on its experience in executing large-scale mining and infrastructure projects in challenging environments.

Requests for proposals for specialist contractors were issued in the fourth quarter of 2025 for the power plant, pipeline and pressure oxidation and oxygen plant scopes. These workstreams will be incorporated into the BFS.

In parallel, Donlin Gold management has started recruiting key personnel to build the owner’s project team while advancing site activities to support the next development phase.

Current work includes geotechnical drilling and materials assessments along the planned upriver port, and access road to inform detailed design and feasibility work.

Key Contracts, Suppliers and Consultants
SRK Consulting (technical report); AMEC Americas (lead feasibility study consultant); and Fluor (integrating major work packages and coordinating with specialist contractors covering key infrastructure and processing components, including the power plant, natural gas pipeline, pressure oxidation circuit and oxygen plant; delivery of the overall engineering, cost and schedule framework).

Contact Details for Project Information
NovaGold, tel +1 604 669 6227 or email info@novagold.com.
Paulson Advisers, Michael McKeon, email mmckeon@actumllc.com