Shares of Canada-based NovaGold (NG, Financial) rose during the fourth quarter, as the company made good progress on its Donlin Gold project in Alaska. The project, in which NovaGold is a 50/50 partner in a joint venture with Barrick Gold, is a very large open-pit mine with an estimated 39 million ounces of high-grade gold resources and a mine life of 27-plus years.4 As part of the US, Alaska is a favorable jurisdiction for mining; Donlin’s location in a remote area of southwest Alaska, however, means that development will require significant investments in infra-structure. Construction has not begun, but the company is in the final stages of an updated development plan for this signifi-cant deposit.
From First Eagle Investment (Trades, Portfolio)'s First Eagle Gold Fund fourth-quarter 2019 commentary.
