Pebble Mine - Discovery and Exploration History

Discovery and Exploration History

Cominco Alaska Exploration (CAE) began investigations in the area in 1986. Early work focused on color anomalies visible from aircraft. Discovery of the Pebble West (originally named Pebble Beach) deposit occurred during the first drilling campaign in 1988. CAE continued drilling and other work through 1992, resulting in a calculated resource of 3 million tonnes of copper metal and 11 million ounces of gold contained in 1000 million tonnes of ore. After 1992 little further work was done on the project for nearly a decade.

In 2001, Northern Dynasty Minerals, Ltd. optioned the property from Teck Cominco (the successor company to CAE's parent company), and began, in 2002, an extensive exploration program that is still in progress in 2011.

By 2004, Northern Dynasty had expanded the known resources at Pebble West to include 4,100 million tonnes of ore. Engineering, environmental, and socio-economic studies aimed at designing a mine commenced.

In 2005, Northern Dynasty discovered the Pebble East deposit. Also that year, Northern Dynasty acquired 100% ownership of the Pebble mining claims.

In 2007, Northern Dynasty anticipated completing a prefeasibility study in late 2008, a feasibility study in 2011, and commencing production in 2015. Northern Dynasty expected to have invested about $225 million in the project by years end, with about $85 million of that in environmental and socio-economic studies.

In 2008, 140 million dollars was budgeted for project expenditures, and approximately 150,000 feet (46,000 m) of additional drilling was completed.

In 2009, 70 million dollars were budgeted for the project, in order to complete a preliminary feasibility study, or "prefeasability" study, and to prepare the project for permitting.

In 2010, 73 million dollars were budgeted to continue engineering efforts towards a prefeasibility report, environmental studies, and various administrative and community-relations work. Applications for development and operations permits are not planned until after 2010.

For 2011, 91 million dollars are budgeted for the Pebble Project. The objective is to complete a prefeasibility study, leading to permit applications in 2012. Environmental and engineering studies (including 45,000 feet (14,000 m) of drilling) to support mine design decisions and to provide a complete environmental baseline are the core efforts.