Engineering & Mining Journal

JUN 2018

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Page 13 of 115

REGIONAL NEWS - U.S. & CANADA 12 E&MJ • JUNE 2018 Barrick Gold will acquire 19.9% of Midas Gold for more than $38 million. Midas Gold's Stibnite gold project in Ida- ho offers the company a strong invest- ment opportunity with low geopolitical risk, potential for production of more than 300,000 ounces per year (oz/y) of gold, and exploration upside, said Barrick Pres- ident Kelvin Dushnisky. "We are also impressed with the em- phasis that Midas Gold has placed on building partnerships with local commu- nities and share their strong commitment to environmental stewardship," Dushni- sky said. "We look forward to working with the Midas Gold team to explore opportu- nities to enhance the value of the project for all partners." Part of the transaction is expected to close on or about May 15, and as long as Barrick maintains a minimum of 10% ownership in Midas Gold, it will be grant- ed the right to appoint one director to Mi - das Gold board; a right to participate in future Midas Gold equity issuances; and a right of first refusal with respect to gold concentrates. In addition, Midas Gold will be increasing the number of directors on its board from seven to eight and will be appointing an independent director to fill that position. Midas Gold said it will use the pro- ceeds to advance its Stibnite gold project through to completion of a feasibility study and permitting of the project for redevel- opment and restoration. During the past five years, the company has conducted ex- tensive, multiyear environmental baseline programs to determine and define existing environmental conditions at this brown- fields site, while reaching out to communi- ties of interest for their views and perspec- tives regarding a future for the Stibnite gold project site and the local area. "With our detailed plan for site resto- ration and protection of the environment, a large, long-life and low-cost operation, and a comprehensive proposal for the clo- sure and reclamation of the site, Midas Gold is positioned to complete the critical milestones of feasibility study and per- mitting," said Stephen Quin, president and CEO of Midas Gold. "Barrick shares Midas Gold's vision for the restoration of the site and focus on community en- gagement. We believe Barrick's extensive expertise and its core values, focused on environmental sustainability, make us natural partners." Midas Gold has focused on the reme- diation and repair of the historical dis- turbance at the site during the construc- tion and operating periods, incorporating concurrent reclamation and minimizing new disturbance. Midas Gold's goal is to protect the environment and provide stable and secure features that will serve as the foundation for a long-term produc- tive and naturally sustainable ecosystem that incorporates permanent fish passage through the area for the first time since the 1930s. Final EIS Filed for Donlin Gold Project NovaGold Resources reported in late April that the U.S. Army Corps of Engineers (Corps), the lead federal permitting agency on the Environmental Impact Statement (EIS) for the Donlin gold project in south- west Alaska, has filed the final EIS notice of availability for the project. The Donlin project is based on one of the world's most prospective known gold deposits, with ap- proximately 39 million ounces (oz) of gold in measured and indicated resources, in- clusive of proven and probable reserves. Donlin Gold LLC is an Alaska-based company owned equally by subsidiaries of NovaGold and Barrick Gold. With a 27-year mine life, current planning calls for production of 1.1 million oz per year (oz/y) of gold and does not include the project's exceptional exploration poten- tial. The planned pits occupy only 3 kilo- meters (km) of an 8-km mineralized belt that could further extend the mine life. The next steps in the permitting pro- cess will include the Corps preparing a Re- cord of Decision, documenting the process used to determine whether or not to issue a wetlands permit. Prior to a decision to issue the permit, the Corps must send the draft permit to the state of Alaska, which must certify that the approved activities comply with state water-quality standards. Other key federal and state permits and approvals are anticipated to be finalized throughout the remainder of 2018. In addition to permitting, Donlin Gold is advancing project optimization efforts, including incorporating data from the 2017 drill program and identifying ideas for potential reduction of initial capital expenditures. Once the optimization ef- forts and financial analyses are complet- ed, the owners will evaluate the path for- ward for the project. Premier Targets 8 Years From Cove Premier Gold Mines has reported the re- sults of a preliminary economic assess- ment (PEA) of its 100% owned Cove proj- ect 32 miles south of Battle Mountain, Nevada. Production from an underground mining operation is estimated at 92,000 ounces per year (oz/y) of gold over a mine Midas Gold has focused on the remediation and repair of the historical disturbance at the Stibnite site during the construction and operating periods, incorporating concurrent reclamation and minimizing new disturbances. Barrick Purchases Stake in Midas Gold

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