Calista renegotiates Donlin gold mine lease

Posted: Tuesday, March 09, 2010

ANCHORAGE - Developers of the proposed Donlin Creek gold mine in southwest Alaska have renegotiated a lease with the Calista Native corporation.

The Anchorage Daily News reports Calista has agreed to lease additional acreage to the mining partners and extend the lease beyond 2031. In return Calista will get an 8 percent royalty from profits, starting at $500,000 this year.

Developers have not yet applied for permits for the mine that could produce more than 1 million ounces of gold a year.

Donlin is a partnership of British Columbia-based NovaGold and Ontario-based Barrick Gold.

The companies are evaluating the possibility of building a 320-miles natural gas pipeline to power the mine.

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