NovaGold and Teck Resources have approved a $30.5 million budget to carry out further work in 2011 on their jointly-owned Galore Creek project in Northern B.C.
Planned work includes drilling to establish mineral resources, and environmental and engineering work.
NovaGold said it has also made significant progress on a pre-feasibility study on the mine, expected to be ready before the end of 2011.
"Completion of the pre-feasibility 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," he said.
The prefeasibility study is considered a key step in deciding whether to move forward with the project, which was put on hold in 2007 when construction cost estimates more than doubled to $5 billion.
Since then a new mine plan has been created that relocates a mining waste pond and production plant, and increases production capacity.
The new prefeasibility report will produce data based on the new mine plan. The data will include cost estimates; production details for copper, gold and silver, and an outline on permitting and construction requirements.
Depending on the results of the pre-feasibility study, the Galore Creek project may advance directly into permitting and feasibility, the partners have said.
The previous project had received regulatory approval from the B.C. and federal government, however some components of the revised mining plan would require new permits or amendments to existing permits.
The Galore Creek mine, which had been expected to be complete in 2012, had been hailed by the B.C. mining community as a confidence booster as it was the first new major metal mine to start construction in a decade in the province.
Although it is located in Northwest B.C., it was also touted as having benefits for Prince George, considered a supply and service centre for northern mining operations.
