NovaGold (TSE:NG), Barrick Gold (TSE:ABX) Consider Natural Gas Pipeline at Donlin Creek

NovaGold (TSE:NG) (Amex:NG), co-owner of the Donline Creek project with Barrick Gold (TSE:ABX) (NYSE:ABX), announced they are launching a feasibility study revision to determine whether or not to supply the project with power from a natural gas pipeline at Donlin Creek.

The feasibility study last year was performed with the idea of using wind and diesel as the power source for the project, which would cost $394 an ounce.

The latest study shows using natural gas could lower operational costs, which account for about 25 percent of all costs for the project.

"A natural gas pipeline has the potential to significantly improve operating costs and reduce operating risk," said Rick Van Nieuwenhuyse, President & CEO of NovaGold. "We look forward to working with Barrick and our Alaskan Native partners to advance the Donlin Creek project through permitting and toward a construction decision."

The pipeline studies and feasibility revision will take approximately 12 to 18 months to complete.