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How do you protect yourselves from cost overruns or delays in project execution?
Mr. Williams: There are a number of ways to protect ourselves, including doing enough detailed work up front to de ne the scope of the project and eliminate gaps prior to a construction decision. Implementing lessons learned into the planning and design, developing a realistic and well-thought-out project execution plan, following the execution plan, and managing the scope are essential in reducing risks in project execution. Furthermore, it is important to develop and assemble the right project team, as well as have systems in place prior to commencing the work, and conducting a proper risk analysis – incorporating it into the planning process, monitoring it regularly and always being proactive.
How do you characterize exploration potential at Donlin Gold and Galore Creek?
Mr. Williams: The Donlin Gold deposit is open both along strike as well as at depth, and tremendous exploration upside exists – particularly along the eight-kilometer gold-bearing mineralized trend which we see north of the pit. We see Donlin Gold being in a district with exciting growth opportunity similar to the experience of the Carlin trend in Nevada. And that’s the beginning of the story, not the end. The current reserves and resources are contained within just three kilometers of the eight-kilometer district.
Galore Creek’s drilling program in 2012 exceeded our expectations and con rmed that the mine life should go beyond the current 18-year horizon. As a follow-up to 2012’s in- ll drill campaign, the 2013 program demonstrated an extension of the copper-gold mineralization into – as well as adjacent to – the Legacy zone.
What are the latest developments at Galore Creek?
Mr. Williams: In 2014, we incorporated the drill results from the 2012 and 2013 programs into a model and have advanced our understanding and con dence in the resource as we optimize mine planning and project design. Technical work evaluating di erent scenarios for an optimized mining, waste rock disposal, and water management plan at Galore Creek is continuing in 2015 with our partner, Teck Resources. Ongoing technical studies may further improve the value and marketability of the Galore Creek project.
As a mine builder, what do you see as Donlin Gold’s greatest attributes as a mine site?
Mr. Williams: It’s a long-life deposit. This is particularly signi cant for a remote site in which infrastructure is a large portion of the upfront costs. Knowing that once you’re in the game you’re going to be there for a while allows you to o set the cost of infrastructure over time. It also provides su cient time over the decades of operation to establish sustainable development in the region.
Then there’s the grade. Coupled with a long asset life, the high grade at Donlin Gold provides the opportunity to take advantage of the cyclical nature of the mining and commodity industries. The grade provides some downside protection during the commodity trough, and also provides the upside when you’re riding on the crest. We all know that both conditions will be experienced during the life of the asset. Similar to other high-grade, long-life deposits in the past, Donlin Gold has these attributes to weather the inevitable ups and downs.
Finally, we cannot forget Donlin Gold’s exploration potential. It’s not often that you have the opportunity to develop a world-class deposit of this size knowing that there is still great potential for nding more. Think of Escondida in Chile and the Carlin trend in Nevada. Once you’re there, you will likely be there for a long time. This is great for building a mine and a company, in part because the infrastructure requirements – and therefore cost – are similar regardless of whether we’re building a large-scale mine (like Donlin) or a much smaller project.
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