The provincial government announced today that Teck Cominco Ltd. (TSX:TCK) and NovaGold Resources Inc. (TSX:NG) have received a permit to develop the Galore Creek copper and gold project in northwestern B.C.
Considered the largest undeveloped copper-gold deposit in North America, the project will create about 1,000 construction jobs and 500 full-time jobs once the mine is in operation.
Both NovaGold and Teck are working together to develop the mine, located roughly 150 kilometres northwest of Stewart, as a $2 billion joint venture. Teck has invested an initial $478 million to fund construction costs, while both companies will be responsible for funding their half of the remaining $1.5 billion.
Once operational, the mine is expected to produce 432 million pounds of copper, 341,000 ounces of gold and four million ounces of silver per year, for the first five years of production. With more than 540 million tonnes of reserves and about a billion tonnes of resources, the mine is expected to be productive for more than 20 years.
Teck's Class A share price range during the past week: between $54 and $56. 52-week high: $58.50; 52-week low: $34. NovaGold's share price range during the past week: between $15.20 and $16. 52-week high: $20.44; 52-week low: $14.62.