Untitled Document
Northern
Dynasty: Alaska’s Pebble Project has Potential to Become One
of America’s Leading Metals Producers
July 21, 2020
- Northern Dynasty Minerals Ltd. (TSX:NDM)(NYSE
American:NAK) ("Northern Dynasty" or the "Company") reports that
its 100%-owned US-based subsidiary Pebble Limited Partnership (the
"Pebble Partnership") released a public statement today commenting
on future production potential from the proposed Pebble mine
project, noting it is poised to become one of the leading metals
producers in the United States.
The Pebble Partnership release
states:
"With a Final Environmental Impact Statement
(EIS) and Record of Decision (ROD) for the proposed Pebble
copper-gold-molybdenum mine project in southwest Alaska expected
this summer, Pebble Partnership CEO Tom Collier noted it appears
more and more likely that Alaska could become home to another
significant metals producer.
"The lead federal regulator for the Pebble
Project, the U.S. Army Corps of Engineers (USACE), has signaled its
intent to publish a Final EIS on July 24 and a ROD shortly
thereafter. Pebble's Collier said the Draft EIS published by the
USACE last year, and subsequent contributions from the U.S.
Environmental Protection Agency, U.S. Fish & Wildlife Service,
the State of Alaska, tribal entities and other cooperating
agencies, point toward a positive outcome for the federal
permitting process.
"'We have reason to believe that Pebble will be
judged to be a project of merit, and will receive its key federal
permits under the Clean Water
Act and River & Harbors
Act this summer,' he said. "The next steps facing the
company and the project will be to secure a major funding partner
and acquire the state permits necessary to take Pebble into
production.'
"State permitting for Pebble is expected to take
2 - 3 years to complete, followed by a four-year construction
phase. Once operating, Pebble will be among the leading metals
producers in the United States. As described in the Project
Description1, each year during
20 years of production the proposed Pebble mine would produce
mineral concentrates containing, on average:
318 million lb copper;
362,000 oz gold;
14 million lb molybdenum; and
1.8 million oz of silver.
"Collier said Pebble has the potential to be the
third largest copper producer in the United States (producing ~12%
of US output annually) and the fourth largest gold producer
(producing ~6% of US output each year). It also contains rhenium, a
relatively rare element used in jet engines and high-octane fuels,
and palladium, a precious metal employed in fuel cells and
catalytic convertors, among other applications.
"Depending on prevailing market prices, about
60% and 30% of the annual value of production at Pebble will be
derived from copper and gold respectively, with the balance coming
from other metals.
"'There's absolutely no doubt there is growing
domestic and international market demand for the metal commodities
Pebble will produce,' Collier said. ‘Whether it's surging
demand for copper to facilitate the US and global transition to a
low carbon future, the increasing demand for gold we're seeing in
the current economic climate or the other strategic metals our mine
will produce, the world needs Pebble.'
"America's transition away from fossil fuels and
toward clean and renewable sources of power will be particularly
copper-intensive, as will the requirement for smart grid technology
to make the nation's energy transmission and distribution system
more efficient. Electric and hybrid-electric cars, solar and wind
power installations, as well as the energy infrastructure required
to enable these technologies, will all require substantially more
copper than the transportation and energy systems they
replace.
"The US currently imports 35% of its annual
copper needs from foreign producers, as well as 82% of its rhenium,
68% of its silver and 32% of its palladium. For copper and many
other strategic metals, America's import reliance is expected to
grow in future as domestic demand rises faster than
supply.
"'It in the United States' best interest to
develop reliable and long-term domestic sources of mineral
commodities like copper, gold, molybdenum, silver, rhenium and
palladium - strategic metals that are critical to the country's
economic, energy, military and industrial future,' Collier
said.
"'It is equally important to source these
minerals from jurisdictions that are known to be leaders in
environmental protection, in conserving healthy fish and wildlife
populations, as well as in environmental justice and human rights.
That description fits Alaska to a tee, and is one more reason why
Pebble is poised to become one of America's leading metals
producers.'"
Stephen Hodgson, PEng, Vice President
Engineering for Northern Dynasty reviewed and approved the
technical information in this news release.
About Northern Dynasty
Minerals Ltd.
Northern Dynasty is a mineral exploration and
development company based in Vancouver, Canada. Northern Dynasty's
principal asset, owned through its wholly owned Alaska-based U.S.
subsidiary, Pebble Limited Partnership ("PLP"), is a 100% interest
in a contiguous block of 2,402 mineral claims in southwest Alaska,
including the Pebble deposit. PLP is the proponent of the Pebble
Project, an initiative to develop one of the world's most important
mineral resources.
For further details on Northern Dynasty and the
Pebble Project, please visit the Company's website at
www.northerndynastyminerals.com or contact Investor services at
(604) 684-6365 or within North America at 1-800-667-2114. Review
Canadian public filings at www.sedar.com and US public filings at
www.sec.gov.
Ronald W. Thiessen
President & CEO
US Media
Contact:
Dan Gagnier
Gagnier Communications
(646) 569-5897
Forward Looking
Information and other Cautionary Factors
This release includes certain statements that
may be deemed "forward-looking statements". All statements in this
release, other than statements of historical facts, that address
exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking
statements. Although the Company believes the expectations
expressed in its forward-looking statements are based on reasonable
assumptions, such statements should not be in any way construed as
guarantees of the ultimate size, quality or commercial feasibility
of the Pebble Project, that the Pebble Project will secure all
required government permits, or of the Company's future
performance.
Assumptions used by NDM to develop
forward-looking statements include the assumptions that (i) the
Pebble Project will obtain all required environmental and other
permits and all land use and other licenses without undue delay,
(ii) studies for the development of the Pebble Project will be
positive, (iii) NDM will be able to establish the commercial
feasibility of the Pebble Project, and (iv) NDM will be able to
secure the financing required to develop the Pebble Project. The
likelihood of future mining at the Pebble Project is subject to a
large number of risks and will require achievement of a number of
technical, economic and legal objectives, including (i) obtaining
necessary mining and construction permits, licenses and approvals
without undue delay, including without delay due to third party
opposition or changes in government policies, (ii) the completion
of feasibility studies demonstrating the Pebble Project mineral
reserves that can be economically mined, (iii) completion of all
necessary engineering for mining and processing facilities, and
(iv) receipt by NDM of significant additional financing to fund
these objectives as well as funding mine construction, which
financing may not be available to NDM on acceptable terms or on any
terms at all. The Company is also subject to the specific risks
inherent in the mining business as well as general economic and
business conditions, as well as risks relating to the uncertainties
with respect to the effects of COVID-19.
The National Environment Policy Act EIS process
requires a comprehensive "alternatives assessment" be undertaken to
consider a broad range of development alternatives, the final
project design and operating parameters for the Pebble Project and
associated infrastructure may vary significantly from that
currently being advanced. As a result, the Company will continue to
consider various development options and no final project design
has been selected at this time.
For more information on the Company, Investors
should review the Company's filings with the United States
Securities and Exchange Commission and its home jurisdiction
filings that are available at www.sedar.com.
1 See
https://pebbleprojecteis.com/