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HomeMy WebLinkAboutPebble Copper Project Misc 2004-Resource use must benefit everyone'When recently asked what our greatestfuturechallengewas-a fiscal plan,a gasline,the Alaska National Wildlife RefugeorprotectingthePermanentFund-I an-©swered,"Assuring each provides maximum benefits for all Alaskans,not simply a fa-vored few at a cost to the many.”This being mandated by our constitu- tion,such should be assured.Yet past prac- tice suggests it will not;i.e.,do any believe we've extracted "maximum benefits”for all from management of our oil,timber,fishery or mineral wealth?Only oil contributes any- thing to the Permanent Fund from which all . receive,if not maximum,at least some ben- efit in dividends.Fisheries,timber and oth-© er minerals contribute absolutely nothing. Instead,benefits flow to corporate owners, those obtaining jobs or holding limited en-try fishing permits,or municipalities glean-_.of prospering handsomely,I refused to sell - "at less than market value. ing property taxes. All Alaskans,however,share costs ofmanaging,enhancing,providing state ser-vices,maintaining required infrastructure,. mitigating environmental problems and en- 'forcing regulations pertaining thereto.In ev- ery case,save oil,these costs appear to far "exceed what the state receives from their.. development.Hence our so-called fiscal gap.. Too few Alaskans seem aware of this as it is obscured under oil wealth sluiced into the state budget to help balance the books. As aresult,oil subsidizes virtually all otherresourcedevelopment.While governor,I was branded a "ze-_ ro growth”advocate who would deny jobs for Alaskans by opposing projects failing to meet three criteria I felt necessary toas-__ sure healthy growth:Was it environmental- ly sound?Did most Alaskans want it?And could it pay its own way?I should have add- ed a fourth:Did it meet our constitution's mandate to manage resources for the peo-ple's maximum benefit? One example of a project failing to meet these criteria was a proposed petrochemi-. cal plant thaf would have created scores of AONW (2-1Fq-O"K ay , HAMMOND COMMENT high-paying jobs and provided the munic-. ipality in which it was to be located with property taxes.Problem was,to promote. it required we sell it some of our royal- ty oil at a discount so far beneath what we 'could receive in the open market that each -job would have cost Alaskans more than $240,000!Accordingly,despite howls of an- guish from those salivating over prospects Today Alaskais faced with three megaprojectsthatshouldberequiredtoconform'to all four criteria cited above:a gas pipe-_line;drilling in ANWR;and what could be the world's largest open pit gold mine north of ©Lake Iliamna,Alaska's largest body of pris-.to the Permanent Fund to increase individ- _ual dividends have instead gone into shor- tine fresh water and spawning grounds fortheworld's largest run ofwild red salmon.-'Regarding the latter:Tosay environ-mentalists and commercial and sportfish-ermen are apprehensive is a gross under- ° statement.Were someone to ask where in' Alaska I would least wish to see a project ofthisnature,I'd be hard--pressed to find one-less desirable.'Cost of providing and maintaining re-- quired infrastructure,state services,envi- 'ronmental studies and mitigation,plus moni- toring and enforcement of protective regula-tions,will no doubt be astronomical.Not on-' _lyshould these costs be absorbed by devel- opers,some profits should go into the state's -Permanent Fund to provide every Alaskan -' 'with a discernible benefit,just as does part of the state's oil wealth.Will it?Not as of now."1982, Alaska has spent billions of oil dollars subsidizing "uneconomic” -.development. -Our severance tax on gold is zero! Only if it can meet the above four crite- ria should a resource development project ° be encouraged.Unfortunately,Alaska has - made it almost impossible for other than oil to do so,And even oil falls short on thatfourthcount.-There are but two ways to assure compli- ance:Tax industry sufficiently to offset costs - otherwise imposed on all Alaskans,or ex- tract enough money from its employees to do so,By failing to impose and invest sever- -ance taxes in the Permanent Fund and elim- inating our income tax,Alaska does neither. Instead we sustain such development with oil money.Alaska has spent billions of oil dol-. lars subsidizing "uneconomic”development._And all Alaskans are paying for it,'To date,billions that could have gone in-- ing up programs that do not "pay their own_way.” The keystone of any plan designed to bridge the resultant "fiscal gap”between'recurrent income and recurrent costs must . remedy "the Alaska disconnect”:failure to extract enough from development to as-© sure it can stand on its own rather than be propped up by what could have been, -your dividend dollars,Certainly,those divi-. dend dollars should be tapped if necessary for essential state services,but selective- ly tapped,with those who glean most from _those services tapped the hardest, lB Jay Hammond was governor of Alaska from 1974 to ae [eh Conpe” Karl Reiche From:John Wood Sent:Thursday,December 09,2004 12:38 PM To:Bernie Smith;Karl Reiche Ce:Ron Miller Subject:RE:State Comments Baseline #2.pdf Thanks Bernie.Based on ND's latest press release,Mark R's presentation this morning at the NWMA convention,and discussion with Teck geologists,the size of the mineral endowment may have doubled.The highest grades are on land still 50%owned by TCAK,and they may choose to participate in the project.(The staff in Vancouver is trying to figure this out as we speak.)Or maybe it will be two -side by side mines.The grades are approaching 2%copper equivalent,although very deep.This throws an entirely different perspective on things,and the whole mining community is abuzz.It'll take years to figure out the extent and grade of mineralization in this one area alone,let alone all of the other prospective lands in the lease.Stay tuned! John From:Bernie Smith Sent:Wed 12/8/2004 1:27 PM To:Karl Reiche;John Wood Cc:Ron Miller Subject:FW:State Comments Baseline #2.pdf Looks like Fish &Game just added 5 years to the permits,which may be how long it will take to received finances and prove how much gold is really in the ground. eta Original Message----- From:Ed Fogels [mailto:ed_fogels@dnr.state.ak.us] Sent:Wednesday,December 08,2004 1:10 PM To:Bruce Jenkins Cc:Jeff Currier;Wayne Dolezal;Ella Ede;Angie Gerken;Jeanne Hanson;Joel Hard;Micheal G Mckinnon;Medrick Northrop;Bill Popp;Bernie Smith;Michael Smith;Bruce F Anders;Luke Boles;Stan Foo;Richard A Hughes;Charles J Ireys;Pete McGee;Micheal G Mckinnon;Robert S Means;Alvin G Ott;Bernie Smith;Thomas E Turner;Jim Vohden;Cindy Godsey;Phil Brna Subject:State Comments Baseline #2.pdf Bruce, Here are the State's latest round of comments on the baseline data collection program for the Pebble Project. Ed Ed Fogels Project Manager Alaska Department of Natural Resources Office of Project Management and Permitting 550 W.7th Avenue,Suite 900D Anchorage,AK 99501-3577 (907)269-8629 fax:(907)269-8930 |[eUble Cope Karl Reiche From:Bernie Smith Sent:Wednesday,December 08,2004 1:27 PM To:Karl Reiche;John Wood Ce:Ron Miller Subject:FW:State Comments Baseline #2.pdf ror .Aeobe State Comments Baseline #2.pdf...Looks like Fish &Game just added 5 years to the permits,which may be how long it will take to received finances and prove how much gold is really in the ground. -7---Original Message----- From:Ed Fogels [mailto:ed_fogels@dnr.state.ak.us] Sent:Wednesday,December 08,2004 1:10 PM To:Bruce Jenkins ; Cc:Jeff Currier;Wayne Dolezal;Ella Ede;Angie Gerken;Jeanne Hanson;Joel Hard;Micheal G Mckinnon;Medrick Northrop;Bill Popp;Bernie Smith;Michael Smith;Bruce F Anders;Luke Boles;Stan Foo;Richard A Hughes;Charles J Ireys;Pete McGee;Micheal G Mckinnon;Robert S Means;Alvin G Ott;Bernie Smith;Thomas E Turner;Jim Vohden;Cindy Godsey;Phil Brna Subject:State Comments Baseline #2.pdf Bruce, Here are the State's latest round of comments on the baseline data collection program for the Pebble Project. Ed Ed Fogels Project Manager Alaska Department of Natural Resources Office of Project Management and Permitting 550 W.7th Avenue,Suite 900D Anchorage,AK 99501-3577 (907)269-8629 fax:(907)269-8930 STENT OF ALLASIO,nnn con DEPARTMENT OF NATURAL RESOURCES 550 W 7"AVENUE SUITE 900D OFFICE OF PROJECT MANAGEMENT AND PERMITTING PH:(907)269-8629 FAX:(907)269-8930 December 8,2004 Bruce Jenkins Northern Dynasty Mines,Inc. 3201 C Street,Suite 604 Anchorage,AK 99503 Dear Mr.Jenkins: The State of Alaska Large Mine Team (LMT)has the following additional comments on the Pebble Gold Copper Project Draft Environmental Baseline Studies Proposed 2004 Study Plan.These comments are in addition to those submitted in our July 30,2004 letter,and are based mostly oninformationgatheredattheOctober25"-28"meetings at your offices. WATER MONITORING In general,we recommend that the surface and groundwater monitoring programs be expanded.We provide some specific suggestions below,but a through review of the data from this years monitoring will be important in determining exactly how much additional monitoring will be necessary.We understand that a data report should be forthcoming in January of next year. When you submit the January data report,we request large format maps showing sample sites and well locations. The groundwater regime on the west side of the proposed pit needs to be delineated,as does the bedrock area adjacent and west of the J area in order to determine flowpaths down valley through the bedrock as has been done for the alluvial material. At least one additional monitoring well should be installed on the northeast side of the proposed pit, in order to catch groundwater flows in that direction.However,modelling of the flow paths that will occur once the pit dewatering begins may alter the desired location of the monitoring well.In addition,the seeps in that vicinity in the Upper Talarik should continue to be monitored,and their sampling frequency revisited. Additional monitoring locations should be added in the J area in order to fill in the data gap. We have not been given a copy of your QA/QC plan for review yet.We recommend that this be submitted for agency review as soon as possible. "Develop,Conserve,and Enhance Natural Resources for Present and Future Alaskans.” Bruce Jenkins December 8,2004 Page 2 We recommend more frequent sampling of seeps.After reviewing the data from this year's monitoring,we should have a better idea of which seeps may be more important to monitor more frequently. We recommend that you present Piper diagrams in the data report that will be submitted to us in late Jan 2005.We would like to see the diagrams compare surface water chemistry with likely sources of groundwater,We think this could help give us a better indication of inter-basin transfer within the groundwater system.This mainly applies to the J area but also the pit area. GEOCHEMICAL CHARACTERIZATION &ARD/ML The Baseline Study Plan states that there is no mine rock characterization for the road or port.It may be prudent to conduct some characterization for potential quarry sites which may be used for road/port construction. Page 8-7,second paragraph:There is a reference to Table 8-1,which is not included. Page 8-7,second paragraph,and Figure 8-3:This paragraph references Figure 8-3 as showing the existing drillholes from which samples will be collected.Figure 8-3 is a bit confusing as it shows both existing and proposed drillholes.Will samples be taken from all of the holes show on this figure? The State Team looks forward to reviewing the detailed Phase I and Phase II Geochemical Sampling plans.We will provide more input after our review of these documents. METEOROLOGY We have not had the opportunity to review the detailed work plan for meteorological data collection yet.We recommend that once this has been completed,you arrange a meeting with your consultants and the appropriate members of the Large Mine Team. COMMENTS FROM OFFICE OF HABITAT MANAGEMENT AND PERMITTING We attended the Baseline Environmental Team Agency Meetings hosted by Northern Dynasty Mines Inc.during the week of October 25,2004.Our review focused on the aquatic resource section of the baseline studies presentations.General comments are listed first,followed by some specific points relative to the 2004 field sampling: GENERAL COMMENTS (1)Perhaps the central issue to our office from a potential impact viewpoint and statutory responsibility is the effects or changes that would be predicted from development of the mine on aquatic resources (i.e.,changes to quality and quantity of water),Adequate field data must be collected to accurately predict changes in receiving waters to assess Bruce Jenkins December 8,2004 Page 3 (2) (3) the type and degree of change that might occur and to determine the need for water treatment and conditions on state and federal permits; We need to ensure that adequate baseline monitoring sites (i.e.,sites for baseline and long-term monitoring,both the number of sites and location)have been established and that similar methods and procedures for field data collection were used at those sites. Based on data presented to date,we cannot make these determinations;and Using the baseline data collected in combination with the mining plan for the property, there is a need to develop a closure plan for the project.The closure plan should address all aspects of project facilities including costs of closure. SPECIFIC COMMENTS (1) (2) (3) (4) (5) (6) (7) All streams along the proposed alignment of the road need to be surveyed for fish, particularly those not in the Catalog of Waters Important for Spawning,Rearing or Migration of Anadromous Fishes; We identified the need to submit nominations of anadromous fish streams that have been identified as additions or deletions in the Catalog of Waters Important for Spawning, Rearing or Migration of Anadromous Fishes; Long-term monitoring sites at selected streams along the proposed road alignment need to be established (as ore will be hauled on the road).This has not been possible due in part to the fact that the road alignment (or alternatives to a road)have not been decided; Periphyton samples have been combined to form a single composite sample.Thereby, information is not being obtained on the variability within sites for each sample time. The goal of assessing for microhabitats (i.e.,rocky,silty,woody,bedrock,macrophytes) does not appear to be obtainable under the current sampling protocol.We recommend revising the sampling protocol to fulfill the goal of assessing microhabitats and periphyton; We need to have an adequate number of monitoring wells to determine and assess the changes that may occur to waters in the South and North Fork Koktuli Rivers and upper Talarik Creek (e.g.,changes in water quality and quantity); It was our understanding based on discussions of surface and subsurface waters that there are highly permeable zones in the creek valleys.How will the tailing dam be designed to ensure that changes do not occur to waters that feed the aquatic systems in this area?; Surface water samples were collected once per month.We believe based on work with other projects that the number of surface water samples should be much higher to establish baseline conditions.To begin,continuous or higher frequencies of water quality measurements should be obtained before establishing the interval of water quality sampling.Sampling intervals may also be justified by references or similar work Bruce Jenkins December 8,2004 Page 4 (8) (9) (10) (11) (12) (13) (14) (15) (16) that identifies relationships between variables of interests.Of particular interests are the variations in water quality surrounding storm events (e.g.,prior,during,post); Use of rock from the pit to build portions of the project (roads,dams)was discussed. We would recommend that criteria be developed for what types of rock can be used for fill material (1.e.,it would have to be demonstrated that leachate from rock would not exceed water quality standards); We identified the fact that any telemetry studies on resources would have to be coordinated with and receive approval from the Alaska Department of Fish and Game; Flow rates in both permeable zones and bedrock are needed to assess project facilities such as the tailing dam.Whether permits are or are not required will be based on waters flowing from the impounded area to downstream receiving waters.To provide empirical evidence of flow rates,tracer experiments should be considered; Continuous measurements of surface water and groundwater temperature in the vicinity of the proposed mine site need to be recorded to document existing temperature regimes that can significantly influence fish egg development; Whitespotted Greenling (Hexagrammos stelleri)should be added to the list for fish tissue collections at the proposed port sites; Sediment sampling for trace elements should occur in the deepest locations of lakes and ponds being sampled; To determine the percentage of surface water contributed from every stream adjacent to and within the proposed mine site,base flow discharge measurements should be conducted during late winter.Discharge measurements need to be completed in each stream immediately upstream of each confluence; Although discussed,we do not know at this time what species and size class of fish have been selected for metals analyses to establish baseline conditions at the long term monitoring sites;and A conceptual approach to mitigation for the loss of resources should be developed; If you have any specific questions regarding the comments provided by OHMP,please contact Al Ott at (907)459-7279. COMMENTS FROM THE ALASKA DEPARTMENT OF FISH AND GAME At this time our comments center on fishery and water data requirements.We have been contacted by the wildlife consultants for the project and will be discussing terrestrial species studies with them during the coming months. Bruce Jenkins December 8,2004 Page 5 SURFACE WATER HYDROLOGY Of paramount concern is the need to gather sufficient data to be able to predict changes to water quality and quantity that could occur as a result of long-term mining operations.An assessment of the relative baseline hydrologic contribution of all hydrologic units within the study area to hydrologic characteristics downstream of the mine site area is needed.The draft study plan dated July 2,2004,indicates that 28 locations in the mine area will be selected to characterize surface water hydrology.During the October 25,2004,agency meeting we note that the number of sampling stations has been increased to forty (40)stations [11 continuous data loggers in streams operated by Northern Dynasty Minerals (NDM),3 continuous data loggers in streams operated by the U.S.Geological Survey (USGS),15 point discharge measurements in streams,and 11 point discharge measurements in seeps].The NDM stations are to be removed during the winter. Recommendations: 1.We recommend that as many years of continuous flow data are collected for instream flow analyses as practicable.Ideally,a minimum of 5 years of continuous flow records are desired. 2.Site-specific conditions permitting,all continuous gaging stations should be deployed year- round and not pulled in winter. 3.Point discharge measurements on tributaries should be of sufficient density and timing to allow the estimation of the separate contributions of each hydrologic unit within each project-affected watershed. 4.Data should be analyzed to provide long-term mean annual and mean monthly flows and estimates of their monthly duration. 5.Identify pending and existing water rights in the project affected area. Rationale: Instream flow requirements for fish depend in part on the seasonal presence or absence of the species of fish and their life phases.In order to estimate how changes in the flow regimes of project affected water bodies mean annual and mean monthly flows and estimates of their duration are needed.Because stream flow characteristics can vary greatly in seasonal timing,magnitude,and duration from year to year in a watershed,5 years is typically considered the minimum period of record;however,shorter periods can be agreed upon and used when field data are combined with synthetic data and mutually agreed-upon analyses.Because overwintering fish are typically the most sensitive to changes in water quantity,we recommend that instrumentation to monitor streamflow remain deployed in winter.According to Jim Buell,NDM fisheries consultant,many of the streams in the project area do not freeze in winter.Point measurements of tributaries to continuously monitored water bodies should be of a sufficient extent and density to estimate relative hydrologic contributions at scales relative to potential project impacts.Since we have not yet been provided data for review,we do not know if the sampling locations and seasonality currently being used will suffice,and we may recommend additional study locations and/or continuous year round monitoring be conducted in the future. INSTREAM FLOWS Bruce Jenkins 'December 8,2004 Page 6 Recommendations: 1.Inall water bodies that may be affected by the proposed mine and access road,a description by reach and habitat type of the use by all species and their life history stages (i.e.spawning, incubation,juvenile/adult rearing and over-wintering,adult and smolt migration)will be needed.We support the estimation of fish density by habitat type as proposed. 2.Combine habitat suitability for each life stage of all fish species with hydraulic estimates provided by the wetted perimeter analysis to allow refinement of instream flow needs. 3.Measurements of each cross section in the wetted perimeter study need to include bankfull discharge in order to estimate flows needed for habitat and channel maintenance. 4.Clarify the spatial extent of the instream flow study. Rationale: We believe the Wetted Perimeter (WP)methodology provides a limited assessment of instream flow needs.The WP method assumes that flow (in a riffle)and habitat are directly related (Annear andConder,1984!)and uses the relationship derived from change in the wetted perimeter at a single cross-section with changes in discharge to assess instream flow needs.The method is best suited for riffle areas where food production and incubation are of primary interest and does not include a biological evaluation or assessment of flows needed for spawning and fish migration to access spawning or feeding areas. We recommend considering a more thorough examination of potential impacts to aquatic resources based on the timing and distribution of each species present during each life stage.We are particularly concerned with potential impacts to overwintering (juveniles and adults),summer rearing,and spawning areas,which a WP analysis alone may not adequately address.WP study results could be improved with the collection of site-specific habitat suitability criteria (HSC)that could be estimated from the proposed collection of fish density by habitat type.Combining HSC with detailed hydraulic information similar to what would be collected from a WP study allows refinement of instream flow needs to better meet resource and economic needs.Hydraulic estimates should be based on thorough cross sectional surveys that extend into the flood plain and allow the estimation of bankfull stage.We understand that this may be considerably more involved that a WP study,and we recommend meeting with our staff to discuss the practicability of collecting the HSC data. Lastly,the scope of inference of the WP analysis is not clear.At the agency meeting on October 27,2004,it was stated by Jason Kent of HDR that studies would be extended to the "area where 10%of the mean annual flow would be reduced on the Koktuli River”.Since baseline hydrologic conditions have not been assessed it is not clear how the WP study area will be defined. Other Recommendations We encourage consultation with the USGS and Alaska Department of Natural Resources (DNR) Water Resources Section on appropriate methodology and data needs for permitting requirements. We recommend that the USGS stream gages on the Upper Talarik,North Fork Koktuli and Koktuli }Annear,T.C.,and A.L,Conder.1984,Relative bias of several fisheries instream flow methods:North American Journal of Fisheries Management, v.4,p.531-$39. Bruce Jenkins December 8,2004 Page 7 Rivers be continued to provide a long-term index station to describe seasonal and long-term hydrologic characteristics and improve hydrologic predictions from nearby stations. Lastly,a finding of fact and conclusion of law or similar documentation should link certificates of appropriations or permits to any conditions prescribed under AS 46.15.080 (Criteria for issuance of permit)so that future appropriations take into account earlier conditions. If you have any specific questions regarding the comments provided by ADF&G,please contact Wayne Dolezal at (907)267-2333. Thank you for the opportunity to review the baseline study proposal.If you have any questions about our comments,please call me at 269-8629. Sincerely, /s/ Ed Fogels Project Manager e-Cc:Al Ott,ADNR OHMP Stan Foo,ADNR,Mining Justin Ireys,ADNR,Mining Jim Vohden,ADNR,Water Bill Jeffress,ADNR,OPMP Luke Boles,ADEC Tom Turner,ADEC Bruce Anders,AGO Wayne Dolezal,ADF&G Rich Hughes,ADCED Sam Means,ADNR,Lands Mike McKinnon,ADOT&PF Bernie Smith,AEA Medrick Northrop,ACOE Cindy Godsey,USEPA Phil Brna,USFWS Jeanne Hanson,NMFS Joel Hard,NPS Jeff Currier,LPB Bill Popp,KPB CONSE [MEM ADEE CONFIDENTIAL MEMO ||DATE:November 22,2004 | TO:Ron MillerKarlReiche Bernie Smi FROM:John Wo6 SUBJECT:ed erd Dynasty Minerals Press release November 2,2004 I have done some research and put together thoughts on alternate views to those detailed in this press release.I would characterize the attached "Preliminary Assessment”as the sort of project analysis that might be done internally by a company to justify additional project e "Prfipfinary Assessment Indicates Robust Economics for the Pebble-Gok#Copper-Molybdenum Project” expenditures.My comments: Consider the authors.The "independent qualified person”is locally known as a mill process engineer,while the other author is an "in-house qualified person”. As stated in the Preliminary Assessment,the estimates were based on the expertise of the engineers involved;there is no apparent expertise in mine economics or Alaskan conditions. The proposed mine is a low grade -high volume operation.Small changes in the input values tend to yield large swings in the end values. To place the proposed 100K -200K per day mill throughput rates and the ore grades (0.0027 %Cu,0.30 g/t Au,1.63 g/t Ag,8 million #moly/year production) into perspective,a brief internet search of some "world-class”mines shows: o Antimina -about 90,000 TPD mill throughput;grades of 1.2%cu and 1% zinc o Highland Valley -about 135,000 TPD mill throughput,.393%cu with gold values,7.3 million #moly/year. o Bingham Canyon -about 125,000 TPD mill throughput,.6%Cu,.35 g/t Au,3.16 g/t Ag. o Escondida Mine -about 127,000 TPD mill throughput o Grasberg Mine -about 200,000 TPD mill throughput Highland Valley and Bingham Canyon are long-life,low grade,porphyry copper deposits (similar to Pebble)located near low-cost power sources and transportation infrastructure.Highland Valley's copper grade is about 30% higher than Pebble's,while Bingham Canyon has twice the copper and twice the gold grades.Direct comparisons (between Highland Valley,Bingham Canyon and Pebble)need to be tempered by these facts. Project metallurgy and mill process pre-design has been based on drill core composite samples.A better way to do this is with a bulk sample,helping to eliminate mis-characterizations of the ore body.Overstatement of the metals recovery would yield less recovered metals with corresponding higher unitproductioncosts. e Treatment charges.More reasonable long-term treatment charges might be $80 - 90/dmt of copper concentrates and $.08 -.09/lb copper refining cost (vs. $57.50/dmt copper concentrates and $.058/lb copper used in the P.A.).Long term precious metals refining charges might be $6/oz for gold and $.40/oz for silver (vs.$3/oz gold and $.30/oz silver used in the P.A.).Treatment charges as presented in the preliminary assessment may be understated,with a corresponding overpayment for metals ($25 million +per year,depending on mill throughput). e The Preliminary Assessment assumes the State of Alaska will build the road and port for an estimated cost of $103 million.(By strange coincidence,this is exactly the same dollar amount as the bonds issued for the initial investment base of the DMTS Road and Port.)A quick check with ADOT consultants showed the current "all-in”reconnaissance level cost for the road to now be $156 million, with the Port costs another $50 million.ADOT industrial roads division indicated the decision about project investment is still under study and no commitments have been made to build the road and port.It would take ADOT between 6 and 8 years to complete the permitting,design and construction after a go-ahead decisionis made.e Power costs usedin the P.A.are presented to be 5.4 cents/KWH for 80 -100megawattsofpower.For comparison,Red Dog uses about 26 megs,generated with diesel generators,at an average cost of 9 cents/K WH.Fort Knox uses about 35 megawatts,purchased from Golden Valley off the grid,at a cost of 7.713 cents/K WH,plus a fuel surcharge.A more realistic cost of power for the Pebbleprojectmightbe10to11cents/K WH. --N,(Itis suggested that the above alternative views be plugged into the economicmodel to )see if the Pebble-Gold-Copper Molybdenum Project retains its "robust economics'o/Ne H:\ALLWOOD\USERDATAWPCipe2.doc,tenner \, en,oe ween Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment indicates KODUST ...rage Lory NORTHERN DYNASTY MINERALS LTD.:http://www.northerndynastyminerals.com/:NewsReleases Tue Nov 2,2004 : Preliminary Assessment Indicates Robust Economics For Pebble Gold-Coppe! Malybdenum Project November 2,2004,Vancouver,BC -Ronald W.Thiessen,President and CEO of Northern Dynasty Minerals Ltd.(TSX Venture-NDM;OTC.BB-NDMLEF)is pleased to announce the completion of a Preliminary Assessment of the Pebble gold-copper-molybdenum project locate: in southwestern Alaska.The Preliminary Assessment indicates excellent potential for a long life mine,having large-scale,low cost metal production.The full text of the Preliminary Assessmen willbe available for review at www.sedar.com. The Preliminary Assessment was prepared in order to quantify the Pebble project's costparametersandtoprovideguidancefortheon-going engineering work that will ultimately defin: the;optimal scale of production.Preliminary forecasts and estimates in the report were develop: to an order of magnitude level and are not based on systematic engineering studies.As is normal at this stage of a project,data is incomplete and estimates were developed based on th expertise of the engineers involved.The Preliminary Assessment was lead-authored by independent qualified person Derek Barratt,P.Eng.,and co-authored by Northern Dynasty's in- house qualified person Peter Beaudoin,P.Eng. The Preliminary Assessment indicates that the Pebble gold-copper-molybdenum porphyry deposit would be developed by conventional,large-scale,open pit mining methods.Four open - pit stages were designed using the block model established by Norwest Corporation for their February,2004 inferred mineral resource estimate of the Pebble deposit.The estimated inferre mineral resource is 2.74 billion tonnes grading 0.55%copper-equivalent (0.30 g/t Au,0.27%Ct and 0.015%Mo above a cut-off grade of 0.30%copper-equivalent ),containing 26.5 millionouncesofgoldand16.5 billion pounds of copper.Processing of mill feed from the open pit willproduceaflotationcoppersulphideconcentratewithgoldandsilvervaluesaswellasaseparamolybdenumsulphideconcentrate.Estimated metal recoveries of 88%for copper,76%for gol and silver,and 60%for molybdenum were utilized in the financial modeling.These estimates a baged upon on-going testwork by Northern Dynasty,and are in-line with other comparable larggold-copper porphyry mines.In the Preliminary Assessment,copper concentrate was estimate: to grade 28%copper,26.6 g/t gold,and 100 g/t silver,whereas molybdenum sulphide flotation concentrate was estimated to grade 50%molybdenum.In the Preliminary Assessment,copper corjcentrate was assumed to be transported to a storage/dewatering/port facility on tidewater viaconcentratepipeline.Molybdenum sulphide concentrate was also to be recovered,then packaged and shipped to market separately. The Preliminary Assessment examined three production rate scenarios:100,000 tonnes per da200,000 tonnes per day,and a phased expansion from 100,000 tonnes per day to 200,000tonnesperdayinyearsix.These analyses show that at the lowest production rate considered(Case 1 -100,000 tpd),the Pebble project has the scope to produce an annual average of 256millionpoundsofcopper,365,000 ounces of gold,8 million pounds of molybdenum,and 1.4millionouncesofsilverduringthefirsttenyearsofa62yearminelife.At the largest scalestudied(Case 2 -200,000 tpd),the project would produce an annual average of 470 millionpoundsofcopper,674,000 ounces of gold,15 million pounds of molybdenum,and 2.5 millionourjcesofsilverduringthefirsttenyearsofa31yearminelife.Key parameters for the three http://w ww.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Title...11/16/2004 Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment indicates KODUST...rage 2 OLY production rate scenarios assessed are summarized in the tables below. Key Production Parameters Production P t Casel Case2 Case 3roductionFarameters100,000tpd |200,000tpd |100,000 to 200,000 tpd Milling Rate (Million Tonnes:Year}35 70 35 to 70 in year 6 Mine Life (Years)62 31 33 Resource Tonnage (Billion Tonnes)2.1 2.1 2.1 Stripping Ratio 0.23:1 0.23:1 0.23:1 1 CUEQ =Cu %+(Au git x 11.25/17.64)+(Mo %x 99.23/17.64) Production Summary -First Ten Years Production P t Case}Case2 Case3 |roduction +arameters 100,000 tpd |200,000tpd |100,000 to 200,000 tpdAverageGradeGold(gt)0.43 0.39 0.40 Copper (%)0.38 0.35 0.35 Silver (g't)1.64 1.47 L351 Molybdenum (%)0.018 0.017 0.017 Metal Recovery Gold (%)16 76 ? Copper (%)§$§8 8§ Silver (90)76 76 76 Molybdenum (°)au 60 60 Ayerage Annual Production Gold (ounces)365,000 674,000 314,000 |Copper (M lbs)256 470 357 Silver Qf ounces)L.4 2.5 1.9 .Molybdenum (M tbs)8 15 12 Cash Production Cost Cc Sb 0.24 0.19enofAu,Ag,Mo Credits opper (3.1b):,0.22 Notes:All currency amounts are in 2004 US dollars.Cash costs include on-site and off-site operating costs,including concentrate 'transportation,smelter charzes and credits. | | | | | http://www .northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=nowé.Title...11/16/2004 Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment Indicates KODUSL...rage 9 O01 y Production Summary -Life of Mine :Casel Case2 Case3ProductionParameters100,000tpd |200,000tpd |100,000 to 200,000 tpd Average Grade Gold (g't)0.33 0.33 0.33 Copper (%)0.30 0.30 0.30 Silver (g't)1.24 1.24 1.24 i Molybdenum (%)0.016 0.016 0.016 Métal Recovery Gold (%)76 76 76 Copper (%e)8S 88 88 Silver (%)16 76 76 |Molybdenum (%)60 60 & Average Annual Production Gold (ounces)276,000 543,000 510,000 Copper (M Ibs)199 392 368 Silver (M{ounces)1.1 2.1 19 Molybdenum (M Ibs)?14 13 Cakh ProductionCost =|.Copper (5.1b)0.42 0.29 0.30-Net of Au,Ag,Mo Credits Notes:All currency amounts are in 2004 US dollars.Cash costa include on-site and off-site operating costs,including concentrate transportation,smelter charges and credits. \ The Preliminary Assessment estimated the project's construction capital costs,sustaining capital,operating costs,and off-site charges (such as concentrate transportation and smelter/refining charges)as well as revenues all using 2004 US dollars.Capital and operatingcostestimatesforthethreeproductionscenariosexaminedweredevelopedfrominitialestimat by the major company which was the previous operator,as well as site specific data,current major equipment costs and reported costs at similar operating mines throughout the world.Capital cost estimates range from $1.0 billion for a 100,000 tpd facility (Case 1)to $1.5 billion fa200,000 tpd facility (Case 2).Life of mine sustaining capital estimates range from a total of$276 million for a 100,000 tpd project (Case 1)to a total of $197 million for a 200,000 tpd projer(Case 2).Operating cost estimates range from $5.06 per tonne milled for a 100,000 tpdproductionrate(Case 1)to $4.36 per tonne milled for a 200,000 tpd production rate (Case 2). http://www.northerndynastyminerals.com/ndm/N ewsReleases.asp?printVersion=now&_Title...11/16/2004 Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment Indicates KovUST...rage 4 OLY Capital Costs,Sustaining Capital,and Operating Costs Summary Area Casel Case2 Case 3 100,000 tpd 200,000 tpd 100,000 tpd te 200,000 tpd Capital Costs (Millions)Yr-1,-2 Yr5 Total Direct Capital Cost S$621 S$929 S$621 $308 S$929 Indirect Capital Costs S$205 $8 301 §205 S 96 $3 301 15%Contingency S 130 S$182 S$130 S32 5 182 Working Capital $S__44 S__88§S_44 S__44 $__88 i Total Construction Capital 51,000 $1,500 $1,000 $500 51,500 Sustaining Capital (Millions)Yr1-5 Yr 6-33 Total Life of Mine Expenditure S$276 $197 S$12 $213 S 225 Operating Costs (per tonne of mill feed)Yr 1-5 Yr 6-33 Average Mining S 1.06 $1.06 S 1.06 5 1.06 5 1.06 Milling S 2.00 5 1.51 3 2.00 $1.51 $1.56 Power S$1.00 S 1.00 S 1.00 5 1.00 5 1.00 Other S_1.00 S_0.79 5_L.00 $_0.39 5_0.80 Total Operating Costs 8 5.06 5 4.36 5 5.06 S 4.36 §4.42i [ |Notes:All curreney amounts are in 2004 US dollars.Capital costs in the above summary include road and port costs of $103 million.ForCase3,$500 million in construction capital is expended during operations year 5 for production expansion in year 6.A power cost of 53.4¢per kWh was estimated for the project. Offsite costs and realization charges related to transportation costs associated with the concentrates,and the treatment and refining charges affecting the net return from metal contained in the concentrates,were included into the financial model in the net smelter return (NSR)calculation.Costs,charges and payables used in the NSR analyses from the Preliminar Assessment are listed below. | Off-Site Costs ,Item Units Amount ;Concentrate Grade %Cu 28.00 Transportation S/wmt conc.61.28 |Smelter Treatment S'dmt conc.57.50 Copper Refining Charge $b Cu 0.058 Copper Unit Deduction Units or (%)1 Copper Payable %96.75 Gold Refining Charge Soz 3.00 Gold Deduction gt conc.1.0 Gold Payable %98.00 Silver Refining Charge Soz 0.30 Silver Payable %90.00 Molybdenum Payable %98.00 Molybdenum Freight Processing Sb 0.75 Insurance'Representation S'dmt cone.0.45 Notes:Swmt conc.=USS per wet metric tonne;S'dmt conc.=USS per dry metric tonne. http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=nowé&_Title...11/16/2004 Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment Indicates KoDUST...raged ory Financial models were developed on a pre-tax,100 percent equity financed basis for each of trthreeproductionratesassessed.For the Preliminary Assessment,long-term average metal prides were estimated to be $0.95/lb copper,$395/oz gold,$5.00/oz silver,and $5.00/ib molybdenum.In addition,for each production rate scenario,financial analyses were completedoverarangeofmetalprices.The tables below summarize the sensitivity of the internal rate ofreturn(IRR)and Net Present Value (NPV)to the variables of metal prices and the discount rate used for Cases 1,2 and 3.Although a capital cost of $103 million was estimated for constructic of the sea port and access road for the Pebble project,the financial analyses in this Preliminary, Assessment do not include these costs on the assumption that the State of Alaska will parallel thelimplementation of its Southwest Alaska Regional Transportation Plan with project development.The results of financial analyses for the three production rates under consideratic indicate that at the long-term average metal prices used in the Preliminary Assessment,the Pebble project could generate an IRR of between 15.3%and 20.3%,and an NPV,discounted ¢ 5%of between $1.047 billion and $2.091 billion.At recent metal prices of $1.25/lb Cu,$415/oz Au,$7.00/oz Ag,and $15/lb Mo,the IRR would increase to between 33.0%and 40.8%and theNPY,discounted at 5%,to between $3.511 billion and $5.972 billion. These financial analyses are preliminary in nature and are based entirely on inferredmineralresourceswhichareconsideredtoospeculativegeologicallytobecategorized émineralreservesandtohaveeconomicconsiderationsappliedtothem.There is no assurance that the operating and financial projections in the Preliminary Assessment wi be realized. Financial Analyses Using Varying Metal Prices -Case 1 (100,000 tpd) Metal Prices Copp Gold Sil Molybd aR NP oes weve seer0.ver olybdenum %iltion $illion $$/b $/oz $/oz $/b )6 )6 ) 0.85 350 5.00 5.00 10.1 2.242 0.462 0.95 395 §.00 5.00 15.3 4.073 1.047 1.00 350 5.00 6.00 15.9 4.367 1.123 1.00 400 5.00 6.00 18.0 5.148 :1.376 1.25 415 7.00 15.60 33.0 12.215 3.511 Notes:Alt currency amounts are in 2004 US dollars.Analyses are on a pre-tax,100%equity financed basis. http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Title...11/16/2004 Northern Dynasty Minerals Ltd.-News Releases -Preliminary Assessment Indicates Kobust...rage 0 OL ¥ Financial Analyses Using Varying Metal Prices -Case 2 (200,000 tpd) Metal Prices IRR NPV@ 0%NPV@ 5%Copper Gold Silver Molybdenum (%)Gillion $)(Billion $)$/lb $/oz $/oz $/b 0.85 350 5.00 5.00 14.4 3.297 1.189 0.95 395 5.00 5.00 20.3 §.128 2.091 1.00 350 5.00 6.00 21.0 5.422 2.219 1.00 400 5.00 6.00 23.3 6.203 2.607 1.25 415 7.00 15.00 40.8 13.271 5.972 Notes:All currency amounts are in 2004 US dollars.Analyses are on a pratax,100%equity financed basis. Financial Analyses Using Varying Metal Prices -Case 3 (100,000 to 200,000 tpd) Metal Prices IRR NPV@ 0%NPV@ 5%Copper Gold Silver Molybdenum (%)(Billion $)@illion $)$/b S/oz $/oz S/lb 0.85 350 5.00 5.00 12.5 3.144 0.948 0.95 395 5.00 5.00 17.7 4.974 1.757 1.00 350 5.00 6.00 18.3 5.269 1.872 1.00 400 5.00 6.00 203 6.049 2.219 1.25 415 7.00 15.00 35.3 13.116 5.234 Notes:All currency amounts are in 2004 US dollars.Analyses are on a pre-tax,100%equity financed basis. As previously announced,Northern Dynasty is systematically advancing its 2004 US $25 millio work programs.These programs involve the comprehensive collection of engineering,environmental and socio-economic data for completion of a Bankable Feasibility Study in 2005angtofulfilltherequirementsforanEnvironmentalImpactStatementaswellasapplicationsfoStateandFederalpermits.At site,a six rig drill program that commenced in April 2004 is currently being completed.This drill program is designed to systematically define a significantportionofthePebbledeposit's inferred mineral resources to measured and indicated categorie:and to determine the deposit's full lateral and depth extent.In addition,geotechnical drilling hastestedsitesfortailingsimpoundment,surface facilities and open pit mine design.Extensive lar,diameter core drilling has also been conducted to collect larger composite samples formetallurgicalandprocesstesting.A wide variety of activities associated with multi-disciplinaryenvironmentalandsocio-economic programs are also underway. Infrastructure requirements for the Pebble project are now quite well defined and significantprogresshasbeenmadeonspecificinfrastructuredevelopmentplans.Development of a minePebblewillrequiretheconstructionofan86mileroadtoconnecttheprojecttotidewateratCoInlgtandadeepseaportfacility.The State of Alaska's Southwest Regional Transportation PlaiincludestheconstructionoftransportationfacilitiesfromCookInlettothetownofIliamna,17milesfromthePebbleproject.Northern Dynasty and the State are in discussion to integrate thisedtoroftheState's plan with the Pebble project's potential development schedule.A recenttransportationcorridoranalysis,commissioned by the State's Department of Transportation anc http://mww.northerndynastyminerals.com/ndm/N.ewsReleases.asp?printVersion=now&_Title...11/16/2004 ' ' _Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment indicates opust...rage /O17 Public Facilities,identified a preferred road corridor and port option.Pretfeasibility level engineering studies for the port site and the road transportation corridor havnowbeencommissionedbytheState,with results expected to be reported in early 2005.Northern Dynasty's environmental consulting team is in the field collecting the necessary data froadandportpermitapplications.The State and Northern Dynasty plan to continue their co-operation under a Memorandum of Understanding to be negotiated in the coming months. A number of options for the provision of electric power to the project and neighbouring villageshavebeenidentifiedandarecurrentlybeingevaluated.These options include connection to theState's existing power transmission grid,either through a 41 mile submarine connection to theKenaiPeninsulaoranoverlandrouteonthewestsideofCookInlet.An alternative to a transmission grid connection would involve the establishment of new generation facilities closetheimineorportarea.Existing power costs for industrial consumers connected to the State'spowertransmissionsystemare$0.03 per kilowatt hour (kWh)north of Anchorage and $0.04 pekWhtothesouth.For the purposes of the financial analyses made in the Preliminary Assessment,a price of $0.054 per kWh has been utilized.In June 2004,Northern Dynasty issyed a "Request For Proposals"for the provision of power to the Pebble project and isexpectingtoreceiveresponsesbeforeyearend. 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 cwithinNorthAmericaat1-800-667-2114 or review Northern Dynasty's Canadian public filings at www.sedar.com and Upublicfilingsatwww.sec.gov. ON BEHALF OF THE BOARD OF DIRECTORS Rot ald W.Thiessen Prasident and CEO Calitionary and Forward Looking Information Comments All information contained in this press release relating to the contents of the Preliminary Assessment,including but not limited to statements of the Pebble project's potential and information under the headings "Production Parameters,""Capital Costs,Sustaining Capital Costs,and Operating Costs,""Production Summary,""Off-site Costs,”and "Financial Analyses, are!"forward looking statements"within the definition of the United States Private Securities Litigation Reform Act of 1995.The information relating to the possible construction of a port, road,power generating facilities and power transmission facilities also constitutes such "forwar looking statements."The Preliminary Assessment was prepared to broadly quantify the Pebble project's capital and operating cost parameters and to provide guidance on the type and scale « future project engineering and development work that will be needed to ultimately define the project's likelihood of feasibility and optimal production rate.It was not prepared to be used as ¢ valuation of the Pebble project nor should it be considered to be a pre-feasibility study.The capital and operating cost estimates which were used have been developed only to anapproximateorderofmagnitudebasedongenerallyunderstoodcapitalcosttoproduction levelrelationshipsandtheyarenotbasedonanysystematicengineeringstudies,so the ultimate costs may vary widely from the amounts set out in the Preliminary Assessment.This couldmatelyandadverselyimpacttheprojectedeconomicsofthePebbleproject.As is normal atthisstageofaproject,data is incomplete and estimates were developed based solely on the http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Title...11/16/2004 | Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment Indicates KODUSL...rage 5 01 ¥ expertise of the individuals involved as well as the assessments of other persons who were involved with previous operators of the project.At this level of engineering,the criteria,method:and estimates are very preliminary and result in a high level of subjective judgment being corr The Preliminary Assessment uses only inferred mineral resources which areconsideredtoospeculativegeologicallytobecategorizedasmineralreservesandtohaveecdnomicconsiderationsappliedtothem.There can be no assurance that the operating and financial projections contained in the Preliminary Assessment will be realized. The following are the principal risk factors and uncertainties which,in management's opinion,alikelytomostdirectlyaffecttheconclusionsofthePreliminaryAssessmentandtheultimatefeasibilityofthePebbleproject.The mineralized material at the Pebble project is currentlycla$sified as an inferred resource and it is not a reserve.The mineralized material in the Preliminary Assessment is based only on the inferred resource model developed by NorwestCorporationinFebruary,2004.That model includes only assay information from drilling up to trendof2003.Considerable additional work,including in-fill drilling,additional process tests,and other engineering and geologic work will be required to determine if the mineralized material isaneconomicallyexploitablereserve.There can be no assurance that this mineralized materialcar|becomea reserve or that the amount may be converted to a reserve or the grade thereof.Final feasibility work has not been done to confirm the pit design,mining methods,andprocessingmethodsassumedinthePreliminaryAssessment.Final feasibility could determine that the assumed pit design,mining methods,and processing methods are not correct. Construction and operation of the mine and processing facilities depends on securing environmental and other permits on a timely basis.No permits have been applied for and there can be no assurance that required permits can be secured or secured on a timely basis.Data i: incomplete and cost estimates have been developed in part based on the expertise of the individuals participating in the preparation of the Preliminary Assessment and on costs at projects believed to be comparable,and not based on firm price quotes.Costs,including desig! procurement,construction,and on-going operating costs and metal recoveries could bemateriallydifferentfromthosecontainedinthePreliminaryAssessment.There can be no assurance that mining can be conducted at the rates and grades assumed in the Preliminary Assessment.The project requires the development of port facilities,roads and electrical generating and transmission facilities.Although Northern Dynasty believes that the State of Alaska favours the development of these facilities and may be willing to arrange financing for their development,there can be no assurance that these infrastructure facilities can be developed on a timely and cost-effective basis.Energy risks include the potential for significantincreasesinthecostoffuelandelectricity.The Preliminary Assessment assumes specified, long-term prices levels for gold,copper,silver and molybdenum.Prices for these commodities are|historically volatile,and Northern Dynasty has no contro!of or influence on those prices,all which are determined in international markets.There can be no assurance that the prices of these commodities will continue at current levels or that they will not decline below the prices assumed in the Preliminary Assessment.Prices for gold,copper,silver,and molybdenum have been below the price ranges assumed in Preliminary Assessment at times during the past ten years,and for extended periods of time.The project will require major financing,probably acombinationofdebtandequityfinancing.Interest rates are at historically low levels.There can be ho assurance that debt and/or equity financing will be available on acceptable terms.Asignificantincreaseincostsofcapitalcouldmateriallyandadverselyaffectthevalueandfeasibilityofconstructingtheproject.Other general risks include those ordinary to very largeconstructionprojectsincludingthegeneraluncertaintiesinherentinengineeringandconstructicconttheneedtocomplywithgenerallyincreasingenvironmentalobligations,andaccommodationoflocalandcommunityconcerns. | |http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?print Version=now&_Title...11/16/2004 Northern Dynasty Minerals Ltd.-News Keleases -Preliminary Assessment indicates Kobust...rage ¥OI ¥ No regulatory authority has approved or disapproved the information contained in this news release. This release includes certain statements that may be deemed "forward-looking statements".All statements in this release,other than statements of historicalfacts,that address future production,reserve potential,exploration drilling,exploitation activities and events or developments that the Company expects areforward-looking statements.Although the Company believes the expectations expressed in such forward-looking statements are based on reasonableassumptions,such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-locking statements.Factors that could cause actual results to differ materially from those in forward-looking statements include market prices,exploitation and exploration successes,continued availability of capital and financing,and general economic,market or business conditions.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in theforward-looking statements.For more information on the Company,Investors should review the Company's annual Form 20-F filing with the United States Securities and its home jurisdiction filings that are available at www.sedar.com.am-opyright ©2004 by Northern Dynasty Minerals Ltd.All rights reserved worldwide. For more information,send questions and comments to info@hdgold.com This page was created on Tue Nov 16,2004 at 10:16:10 AM Pacific Time. http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Title...11/16/2004 Northern Dynasty Minerals Ltd. 1020 ¢800 W Pender St. Vancouver BC Canada V6C 2V6 Tel 604 684-6365 Fax 604 684-8092 Toll Free 1 800 667-2114 http:/Iwww.northerndynasty.com May 3,2004 Bernie Smith "AIDEA/AEA 813 W.Northern Lights Blvd Anchorage,AK 99503 Dear Mr.Smith: RE:Pebble Project/State Power Planning Support Following-up on our phone conversation of Friday and the meeting that Brian Mountford and I had with Mike Menge in the Governor's Office last Thursday,we are pleased to have your ongoing support on our Power Planning Team,to facilitate and coordinate Northern Dynasty and the State of Alaska investigation of our power needs.In that regard we are inviting you to Vancouver for a meeting this week. The purpose of this meeting is to review progress and the pending release in a matter of days of solicitations for Letters of Interest (LOI's)from various parties who have already expressed interest and initiated discussions relative to providing power to the Pebble Project,with associated synergies for the local region,as well as potentially Railbelt consumers. While we recognize and appreciate the very short notice of our request,we hope that you will be able to come to Vancouver and participate in the meeting,as we understand from prior correspondence from Bill Jeffress and our meeting with Mike Menge that you are designated as the lead contact for the State on this effort.It is essential that the State of Alaska have a chance to review and provide input to the draft LOI's in order to be fully informed of developments that will have significant implications for the State of Alaska and its residents,and timing dictates that we are working to release the LOI's shortly.The State's contribution and feedback would be very much appreciated in that effort. Thank you for your consideration.If you have any questions,please call me at (604)684-6365,or David Parish at (907)463-2523. ! Wea of Corporate Affairs im Clark,Office of the Governor Mike Menge,Office of the Governor on Miller,AIDEA Ha BE ORUNTER ResponsibleDICKINSONMineralawINC.Development "LO The «. , awl Cows DEPARTMENT OF NATURAL RESOURCES 550 W 7"AVENUE SUITE 1660 OFFICE OF PROJECT MANAGEMENT AND PERMITTING PH:(907)269-7470 .FAX:(907)269-3891 EGEIVE MAR 25 2004 March 23,2004 AIDEA/AEA Mr.Bruce W.Jenkins Director Environmental/Government Affairs Northern Dynasty Mineral Ltd. 1020 -800 West Pender Street Vancouver,British Columbia Canada V6C 2V6 Re:Pebble Gold Copper Project Power Evaluation Work Group Dear Mr.Jenkins: Over the past several months a variety of State of Alaska agencies have met on a number of occasions with Northern Dynasty Minerals Ltd.representatives,including you,concerning potential development of the Pebble Gold Copper Project.The pro-active approach your company has taken to keep the local communities and state/federal agencies informed on the project is commendable. The State of Alaska and specifically the Department of Natural Resources,Office of Project Management and Permitting (OPMP)is likewise committed to working with resource developers and local communities to maintain open communications and identify specific environmental and technical baseline information necessary to objectively review and authorize resource development projects.: One issue that necessitates further clarification is the overall commitment of the State of Alaska to cooperate in identifying potential energy sources to meet the needs of the Pebble Gold Copper Project and villages in Southwestern Alaska.As with other resource development projects in Alaska,OPMP and the Alaska Industrial Development and Export Authority/Alaska Energy Authority (AIDEA/AEA)are willing to assist Northern Dynasty Minerals Ltd.with assembling a working group to identify existing electrical utilities,potential enterprise partnerships,stand alone power generation,and alternative power options.The proposed working group for the Pebble Gold Copper Project,under the lead of Mr.Bernie Smith of AIDEA/AEFA,does anticipate meeting with Northern Dynasty Minerals Ltd.representatives sometime during the middle to end of April 2004. We do want to reiterate that the current roles of OPMP and AIDEA/AEA are to assist the company with identifying electrical power options that you can consider in making project development decisions and at the present time not with any type of financial collaboration. "Develop,Conserve,and Enhance Natural Resources for Present and Future Alaskans.” Northern Dynasty Minerais vtd. March 23,2004 Page 2 If you have any questions or require additional information,please call me at (907)269-8429 or Mr. Ed Fogels (907)269-8629.; Respectfully, fill AGA - William R.Jeffress Director OPMP Cc:_B.Mountford,Vice President NDM T.Irwin,DNR Commissioner D.LeFebvre,DNR Deputy Com. B.Smith,AIDEA/AEA E.Fogels,DNR,OPMP s Northern Dynasty Minerals ]*-News Releases -Northern Dynasty npletes $22 Mill...Page 1 of 3 NORTHERN DYNASTY MINERALS LTD.:http:/Avwww.northerndynastyminerals.com/:News Releases Wed Mar 17,2004 Northern Dynasty Completes $22 Million Financing Engineering And Permitting Programs Commence ForA Major Mine Development At Pebble, Alaska March 17,2004,Vancouver,BC -Ronald W.Thiessen,President and CEO of Northern Dynasty Minerals Ltd.(TSX Venture:NDM;OTCBB:NDMLF)is pleased to announce that Northern Dynasty has completed the $22 million,non-brokered,private placement financing that was announced on February 11,2004.The financing was for 2.75 million units at Cdn$8.00 per unit with each unit consisting of a share and one half warrant.Each whole warrant is exercisable within one year to acquire one further common share at Cdn$9.00. Proceeds of the financing will be used to rapidly advance the Pebble Project,located in southwestern Alaska,USA towards a major mine development.Northern Dynasty is committed to engineer,permit,construct and operate a long life,large-scale,open pit,gold- copper-molybdenum mine at the site.A recent independent resource estimate by Norwest Corporation established the Pebble deposit as the largest gold deposit,and at the same time,the second largest copper deposit in North America.Pebble contains 26.5 million ounces of gold,16.5 billion pounds of copper and 900 million pounds of molybdenum within an Inferred Mineral Resource of 2.74 billion tonnes grading 0.55%copper-equivalent (0.30 grams gold per tonne,0.27%copper and 0.015%molybdenum above a cut-off grade of0.30%copper-equivalent).Furthermore,substantial near surface,higher-grade starter - resources have been identified within the deposit that can be mined with almost no waste removal.Higher-grade resources facilitate rapid recovery of capital costs during the early years of a large scale mining operation.Current evaluations of the optimum milling capacity for the Pebble Project range from 90,000 to 200,000 tonnes per day. Northern Dynasty has commenced collecting the engineering and environmental data for completion of a Bankable Feasibility Study as well as the submission of an Environmental Impact Statement (EIS)for permits to construct and operate a mine and related infrastructure.Field engineering data collection and multi-rig core drilling to establish measured and indicated resources as well as holes for geotechnical,metallurgical and hydrological design will commence this month.Currently,the most immediate areas of necessary expertise for project development are well covered by a spectrum of in-house engineers and scientists in conjunction with top level consultants. With regard to infrastructure development,the State of Alaska has accelerated its program for the construction of "Roads to Resources"relative to the Pebble Project.An existing Alaskan Department of Transport study to investigate alternative road and port sites has recently been amended to provide the necessary facilities in line with Northern Dynasty's proposed development schedule.The exhaustive alternative analysis underway will lead to detailed engineering studies of the best port site and road corridor selection.All engineering work will be completed with sufficient accuracy for input into the EIS document and permit application for the Pebble Project. In addition,under the direction of Governor Frank Murkowski,a working group has been http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Ti...3/17/2004 _Northern Dynasty Minerals]-News Releases -Northern Dynasty _apletes $22 Mill...Page 2 of 3 convened to evaluate the demand for and the benefits of a regional energy system (i.e.fuel supplies,power stations and transmission lines).The terms of technical reference,funding protocol and timetable under which the power needs of Southwest Alaska and the Pebble Project can be quantified,will be defined by this working group in the coming weeks. Included in the evaluations will be potential improvements and benefits to the Railbelt power system. For further details on Northern Dynasty Minerals Ltd.please visit Northern Dynasty's website at www.northerndynasty.com or contact Investor Services at 604-684-6365 or within North America at 1-800-667-2114. ON BEHALF OF THE BOARD OF DIRECTORS Ronald W.Thiessen President and CEO For more information on the Pebble Project please contact the following persons at 604-684-6365 or 1-800-667-2114: Brian Mountford,P.Eng.-Project Director -Engineering Bruce Jenkins --Director of Environment,Permitting and Socio-Economic Planning No regulatory authority has approved or disapproved the information contained in this news release. 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 future production,reserve potential,exploration drilling,exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions,such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.Factors that could cause actual results to differ materially from those in forward-looking statements include market prices,exploitation and exploration successes,continued availability of capital and financing,and general economic,market or business conditions.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company,Investors should review the Company's home jurisdiction filings that are available at www.sedar.com. No regulatory authority has approved or disapproved the information contained in this news release. 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 future production,reserve potential,exploration drilling,exploitation activities and events or developments that the Company expects are forward-looking statements.Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions,such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.Factors that could cause actual results to differ materially from those in forward-looking statements http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Ti...3/17/2004 Northern Dynasty Minerals I *'-News Releases -Northern Dynasty npletes $22 Mill...Page 3 of 3 include market prices,exploitation and exploration successes,continued availability of capital and financing,and general economic,market or business conditions.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.For more information on the Company,Investors should review the Company's annual Form 20-F filing with the United States Securities and its home jurisdiction filings that are available at www.sedar.com. Copyright ©2004 by Northern Dynasty Minerals Ltd.All rights reserved worldwide. For more information,send questions and comments to info@hdgold.com This page was created on Wed Mar 17,2004 at 10:38:02 AM Pacific Time. http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Ti..,3/17/2004 Karl Reiche From:Ron Miller Sent:Tuesday,February 24,2004 11:41 AM To:Bernie Smith;Karl Reiche Subject:RE:Pebble Copper Agency Meeting Karl- Bernie should be able to cover this for AIDEA.Ron From:Bernie Smith Sent:Tuesday,February 24,2004 11:38 AM To:Karl Reiche;Ron Miller Subject:FW:Pebble Copper Agency Meeting FYI Page 1 of 1 From:Ed Fogels [mailto:ed_fogels@dnr.state.ak.us] Sent:Monday,February 23,2004 3:56 PM To:Luke Boles;Charlie Cobb;Stan Foo;Rich H Harris;Charles J Ireys;Cameron M Leonard;Pete McGee;Steve McGroarty;Alvin G Ott;Jim Vohden;Jeff Currier;Ricky S Fredericksen;Bruce Jenkins;Micheal G Mckinnon;Brian Moutford;David Parish;Cindy Godsey;Leroy Phillips;Judith E Bittner;William R Jeffress;Richard A Lefebvre;Don J Perrin;John Wood;Bernie Smith; marvsmith.|pboro@starband.net;jstaser@denali.gov;Wayne Dolezal;Dan Easton;Douglas S Vincent-Lang;ymorgan@denali.gov;bpopp@borough.kenai.ak.us;jbrown@borough.kenai.ak.us;Albert H CloughSubject:Pebble Copper Agency Meeting There will be an agency meeting to discuss permitting and baseline data collection for the Pebble Copper Project on Thursday March 11,from 9:00 to 12:00.The meeting will be at the Downtown Marriott Hotel (7th &I Streets),in the Skagway/Valdez Room,from 9:00 am to 2:00 pm. I will try to send out an agenda before the meeting. Thanks, Ed Fogels Ed Fogels Project Manager Alaska Department of Natural Resources Office of Project Management and Permitting 550 W.7th Avenue,Suite 9300D Anchorage,AK 99501-3577 (907)269-8629 fax:(907)269-8930 2/24/2004 Page 1 of 1 Karl Reiche From:Bernie Smith Sent:|Monday,February 23,2004 10:12 AM To:Karl Reiche Subject:FW:Project Reimbursement Agreements From:jclwood [mailto:jclwood @alaska.net] Sent:Saturday,February 21,2004 9:26 AM To:Bernie Smith;kriche@aidea.org;Ron Miller Ce:John Wood Subject:Project Reimbursement Agreements Good morning folks! Bernie,|was too tied up yesterday afternoon to comment after your explanation of your conversation with David Parrish.As | recall,you said that he said that what the ND folks wanted was for AIDEA to go out and obtain the funding to do,and then perform a power feasibility study for the potential western Alaska grid that would supply power to Pebble and Donlin and 77.One of the ways the Authority has handled this kind of request in the past,and we used to do this a lot 5 to 10 years ago,was to execute a "Reimbursement Agreement"with the client and then perform the feasibility study.(We would contract the actual study out to a consultant who we would manage.)If the results of the feasibility study are positive and the project moves ahead,the cost of the study is rolled into the project investment base that AIDEA finances.If the study does not find for feasiblity,or AIDEA decides not to participate,then the client reimburses AIDEA for its costs.This has worked well in the past,although the clients will grumble a bit when we dont find for feasibility and we send them the bill for the study costs. John 2/23/2004 Page 1 of 1 Karl Reiche From:Bernie Smith Sent:Monday,February 23,2004 10:12 AM To:Karl Reiche Subject:FW:Project Reimbursement Agreements From:Bernie Smith Sent:Monday,February 23,2004 9:20 AM To:Ron Miller;'jclwood';'kriche@aidea.org' Ce:John Wood Subject:RE:Project Reimbursement Agreements |totally agree,if ND wants money for a feasibility study they should go to the legislators or the Denali Commission or the Feds for the funds. From:Ron Miller Sent:Saturday,February 21,2004 9:40 PM To:jclwood;Bernie Smith;kriche@aidea.org Ce:John Wood Subject:RE:Project Reimbursement Agreements We aren't fronting the costs for any power feasability study and it isn't our responsibility to find grant funding for ND.Parish is on their payroll so he should do it.If Denali Commission wants to fund this,they can run the money through us like the Donlin project. Ron 2/23/2004 MASIN Money -US NUIVILI Kecent StOCK INCWS:Investing rage 1 ord MSM Home }My MSN |Hotmail |Shopping |Maney |Peogle&Chat Web Search:Go Home Investing Banking |Planning |Taxes |Maney Plus Help AVRTS S|2X Investing Home Portfolio.Markets Stocks Funds Insight Brokers CNBC TV Quote,Chart,News _-_Back to Recent News SESS Snapshot ce ee A i JSC THE OTT"we Northern Dynasty arranges $22 million financingChartsFebruary11,2004 09:01:00 AM ET Key Developments Recent News VANCOUVER,Feb.11 /PRNewswire-FirstCall/-Ronald W.Thiessen, President and CEO of Northern Dynasty Minerals Ltd.(TSX Venture: Research NDM;OTCBB:NDMLF)is pleased to announce that Northern Dynasty -has arranged a private placement financing of 2.75 million units atCompanyReportCdn$8.00 per unit with each unit consisting of a share and one half SEC Filings warrant.Each whole warrant is exercisable for one year from closing of ;the financing to acquire one further common share at Cdn$9.00.Advisor FYI Galahad Gold PLC,a publicly traded United Kingdom based Stock Rating corporation that is currently an insider of Northern Dynasty,will Earnings Estimates purchase approximately one half of the placement. Analyst Ratings The offering is subject to execution of definitive agreements and TSX Financial Results Venture Exchange acceptance,which is expected in the ordinary course.The common shares in the units and the shares issuable on exercise of the warrants will be subject to a four month resaleOwnershiprestrictedperiod. Community Insider Trading Proceeds of the financing will be used to rapidly advance the Guided Research Company's Pebble project,located in southwestern Alaska,USA,towards completionofafinal feasibility study for a large-scale,open pit,gold-copper-molybdenum mine.A recent independent resourceestimatebyJohnNillson,P.Eng.,of Norwest Corporation,established Research Wizard Find Stocks ihePebble-depositasthelargestGold and at the same time,the Stock Screener second largest copper deposit in North America.At a 0.30%copper Power Searches equivalent cut-off,the inferred mineral resource is estimated to be 2.7 billion tonnes grading 0.27%copper,0.30 g/t gold and 0.015% Top Rated Stocks molybdenum containing 16.5 billion pounds of copper and 26.5 million ounces of gold (see News Release January 21,2004).Northern Related Links Dynasty is planning a major in-fill drilling program for 2004, E-mail &Alerts concurrently with detailed engineering and environmental/permitting IPO Center studies. Message Boards For further details on Northern Dynasty Minerals Ltd.and its Pebble Capital Gains Analysis Project please visit Northern Dynasty's website at www.northemdynasty.com or contact Investor Services at 604-684- 6365 or within North America at 1-800-667-2114.pe MOte es os Cool Features ON BEHALF OF THE BOARD OF DIRECTORS Save on Auto Insurance "Ronald W.Thiessen"Get free quotes Ronald W.Thiessen -President and CEO CG>Mk € Wark http://news.moneycentral.msn.com/ticker/article.asp?Feed=PR&Date=200402 11 &ID=3381495&Symbol...2/13/2004 MSN Money -US:NDMLE Recent Stock News:Investing Page Z ot 2 No regulatory authority has approved or disapproved the information «contained in this news release. These materials are not an offer of securities for sale in the United States.The securities offered have not been,and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent such registration or an exemption from registration. 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 future production,reserve potential,exploration drilling,exploitation activities and events or developments that the Company expects are forward-iooking statements.Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions,such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.Factors that could cause actual results to differ materially from those in forward-looking statements include market prices,exploitation and exploration successes,continued availability of capital and financing,and general economic,market or business conditions.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.For more information on the Company,Investors should review the Company's home jurisdiction filings that are available at www.sedar.com. ©2004 PRNewswire Back to Recent News Try MSN Internet Software for FREE! MSN Home |MyMSN |Hotrgil |Shopping |Money|People&Chat |Search Help 2064 Microsoft Corporation.All rights reserved.Terms of Use Advertise TRUSTe Approved Privacy Stafernent GelNetWise Anti-Spam Policy http://news.moneycentral.msn.com/ticker/article.asp?Feed=PR&Date=200402 11 &ID=3381495&Symbol...2/13/2004 Page |of 1 Karl Reiche From:John Wood Sent:Friday,February 06,2004 3:01 PM To:Ron Miller Ce:Karl Reiche Subject:Pebble Copper/Donlin geographical info Good afternoon Ron! Here's the info you asked for: e Road miles from Pebble to Iniskin Bay -82 miles.No estimated costs yet,but $1 million per mile is a good yardstick to start with. e Air miles from Pebble Copper deposit to: ©lliamna -17 o Dillingham-127 o Iniskin Bay -66 o Williamsport -59 ©Donlin deposit -180 e Air miles from Donlin deposit to: o Bethel--145 e Air miles from "Beluga”to: ©Williamsport -135 Let me know if you need anything else. John 2/6/2004 ,Northern Dynasty Minerals Ltd.-News Releases -Wed Jan 21,2004 Page 1 of 4 NORTHERN DYNASTY MINERALS LTD.:http:/Avwww.northerndynastyminerals.com/:News Releases Wed Jan 21,2004 Northern Dynasty's Pebble Gold-Copper Deposit Established As One Of The World's Rare Behemoths Hosting Resources Of 26.5 Million Ounces Of Gold And 16.5 Billion Pounds Of Copper Ronald W.Thiessen,President and CEO of Northern Dynasty Minerals Ltd.(TSX Venture: NDM;OTCBB:NDMLF)is pleased to report the results of a new independent mineral resource estimate for the Pebble porphyry gold-copper-molybdenum deposit in southwestern Alaska.The estimate was completed by the internationally recognized minerals industry consulting firm,Norwest Corporation (Norwest).Their work establishes Pebble as the largest deposit of contained gold resources in North America.It also establishes Pebble as the second largest deposit of contained copper resources in North America (Source:Metals Economics Group,December 2003). Norwest has estimated that the Pebble deposit contains 26.5 million ounces of gold and 16.5 billion pounds of copper within an Inferred Mineral Resource of 2.74 billion tonnes grading 0.55%copper-equivalent (0.30 grams gold per tonne,0.27%copper and 0.015% molybdenum above a cut-off grade of 0.30%copper-equivalent).Importantly,the Norwest estimate has significantly expanded the higher grade resources to 435 million tonnes of 0.49 grams gold per tonne,0.42%copper and 0.021%molybdenum,or 0.84%copper- equivalent above a cut-off grade of 0.70%copper-equivalent.These higher-grade resources will facilitate rapid recovery of capital costs during the early years of a large scale mining operation.. Norwest's estimate is based on drill core assay results from 19,948 metres of drilling in 59 holes completed by Northern Dynasty during 2003 and 18,353 metres in 110 holes by Cominco American Incorporated to 1997.The resource estimate was completed under the direction of John Nilsson,P.Eng.,Project Manager for Norwest Corporation,an independent Qualified Person as defined by National Instrument 43-101.Norwest is one of the largest privately held engineering service companies in North America and employs a highly experienced team working in all facets of the mining industry.Norwest was chosen to complete the independent resource estimate at Pebble because of their extensive bulk tonnage mining experience and their work on numerous North American projects in Alaska, British Columbia,Yukon and the Northwest Territories.A technical report detailing the resource estimate will be filed on SEDAR within 30 days.The specific breakdown of Inferred Mineral Resources for the Pebble deposit above varying cut-off grades is tabulated below: http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Ti...1/21/2004 _Northern Dynasty Minerals Ltd.-News Releases -Wed Jan 21,2004 Page 2 of 4 PEBBLE DEPOSIT INFERRED MINERAL RESOURCES' Cut-on Size Grade Contained Metal CuEQ?Million Copper .Gold Moly CuEQ?Copper Gold %Tonnes %ga %%Bibs M 02 0.30 2,437 0.27 0.30 0.015 0.55 16.5 26.5 0.40 2,232 0.30 0.33 0.016 0.60 44.5 23.3 0.50 1,573 0.32 0.37 0.017 0.65 47.3 18.3 0.60 883 0.3f 0.43 0.013 0.74 v1 121 6.70 435 0.42 0.49 0.024 0.84 4.0 6.8 0.80 208 0.48 0.55 0.023 0.95 2.2 3f Note 1 Mineral resources do not have demonstrated economic viability.An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed,but not verified,geological and grade continuity. Note 2 Copper and gold equivalent calculations use metal prices of US$0.80/Ib for copper, US$350/oz for gold,and US$4.50/lb for molybdenum.The contained gold and copper represent estimated contained metal in the ground and have not been adjusted for metallurgical recoveries.Adjustment factors to account for differences in relative metallurgical recoveries for gold,copper and molybdenum will depend upon the completion of definitive metallurgical testing. CuEQ =Cu %+(Au g/t x 11.25/17.64)+(Mo %x 99.23/17.64) AuEQ =Au g/t +(Cu %x 17.64/11.25)+(Mo %x 99.23/11.25) Bob Dickinson,Co-Chairman said "Our drilling in 2003,has exceeded our expectations and massively increased the previous estimate of Inferred Resources at Pebble.When comparing the world's giant gold-copper porphyry deposits in terms of contained gold resources,Pebble and Telfer share second ranking,only behind the huge Grasberg deposit.We plan to develop a major mine in the shortest possible time frame." All gold and copper companies in the world are benefiting from the recent increase in commodity prices but not all global producers are gaining the same advantage.This is,in part,because miners operating outside of the United States are being negatively affected by the reciprocal rise in the value of their own currency in comparison to the US dollar. With its Alaskan location,Northern Dynasty's Pebble project will receive the full benefit of strengthening gold and copper prices and is highly leveraged to profit from further price increases. Immediate plans for Pebble are,to develop the drill parameters for definition of measured and indicated resources,complete a preliminary Sizing Study that will facilitate the start of environmental base line measurements for the permitting process,and collect engineering data for specific mine,mill and infrastructure design.This work has commenced. Pebble has an excellent configuration for very low cost open-pit mining.The mineralization is very continuous with almost no internal waste and is persistent over a broad area measuring at least 3 kilometres E-W by 2 kilometres N-S.Mineralization begins right at the bedrock surface which is covered only by a thin veneer of gravel ranging from 5 to 25 metres thick,indicating the deposit will have an unusually low stripping ratio.The deposit is open to the south,west and to the east under thickening Tertiary cover.Currently,the http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Ti...1/21/2004 _Northern Dynasty Minerals Ltd.-News Releases -Wed Jan 21,2004 Page 3 of 4 deposit averages 350 metres thick and is open to depth. Northern Dynasty has substantiated that the Pebble deposit constitutes about 5 percent of a much larger hydrothermal sulphide system covered by the property.This mineral rich terrain is outlined by an 89 square kilometre IP/chargeability anomaly,measuring 21 kilometres in length and up to 9 kilometres in width.The United States Geological Survey has listed the Pebble mineralized system as the most extensive in the world.Large-scale porphyry systems commonly host multiple deposits and Northern Dynasty's first pass exploration program in 2002 made several new discoveries indicating substantial potential for additional gold,copper and molybdenum resources within this giant mineralized system (see News Releases dated July 15,2002 and October 15,2002). Pebble is favourably located in southwestern Alaska in a region of low rolling hills with an average elevation of only 350 metres above sea level.The project is situated only 132 kilometres from tidewater along a proposed level road route to a year round deep-sea port on Cook Inlet.The town of Iliamna,25 kilometres from the project,has an airport with two 1500--metre paved runways that serve 3 daily scheduled flights from Anchorage.The district also enjoys a more favourable winter climate than much of the north-central United States. Drill hole location maps,an outline of the Pebble deposit,and a complete tabulation of assays from Northern Dynasty's drill programs to date may all be found on Northern Dynasty's website at www.northerndynasty.com. Mark Rebagliati,P.Eng.,is the Qualified Person for Pebble and is supervising the quality contro!and quality assurance program.Logging and sampling is completed in Northern Dynasty's secure facility at lliamna,Alaska.The NQ-size core is mechanically split and samples are transported to the SGS Mineral Services laboratory in Fairbanks for sample preparation.Sample pulps are shipped by airfreight to SGS Canada Inc.,Toronto,Canada (an ISO 9002 certified laboratory)for analyses.Gold is determined by Fire Assay (FA) fusion with an Atomic Absorption Spectroscopy (AAS)finish.For results greater than 2,000 ppb gold,samples are re-analyzed by one-assay--ton FA fusion with a gravimetric finish. Copper assays are conducted with sodium peroxide fusion and Inductively Coupled Plasma-Emission Spectroscopy (ICP-ES)finish.All samples are analyzed for Cu and Mo, and 31 additional elements by aqua regia digestion (ICP-ES).Northern Dynasty includes standards and duplicates in addition to the laboratory's internal quality control work. Northern Dynasty is a Hunter Dickinson managed mine-development company focused on the creation of significant value through the exploration and development of the most extensive gold-copper district in the world.Only five percent of the district hosts the 2.74 billion tonne Pebble gold-copper-molybdenum open pit deposit,which contains inferred mineral resources of 26.5 million ounces of gold and 16.5 billion pounds of copper. Northern Dynasty hold options to acquire from Teck Cominco and Hunter Dickinson Group Inc.a 100%interest (subject to no underlying royalty or back-in rights)in the "Resource Lands"which host the Pebble deposit.Northern Dynasty is also earning a minimum 50% interest in the extensive surrounding "Exploration Lands". Accompanying Maps and Figures Interactive Mapof Pebble Deposit 2003 Assay Results-Resouces Lands http://www.northerndynastyminerals.com/ndm/NewsReleases.asp?printVersion=now&_Ti...1/21/2004 .Northern Dynasty Minerals Ltd.-News Releases -Wed Jan 21,2004 Page 4 of 4 2003 Assay Results Exploration Lands ON BEHALF OF THE BOARD OF DIRECTORS Ronald W.Thiessen President and CEO No regulatory authority has approved or disapproved the information contained in this news release. 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 future production,reserve potential,exploration drilling,exploitation activities and events or developments that theCompanyexpectsareforward-looking statements.Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions,such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.Factors that could cause actual results to differ materially from those in forward-looking statements include market prices,exploitation and exploration successes,continued availability of capital and financing,and general economic,market or business conditions.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.For more information on the Company,Investors should review the Company's annual Form 20-F filing with the United States Securities and its home jurisdiction filings that are available at www.sedar.com. Copyright ©2004 by Northern Dynasty Minerals Ltd.All rights reserved worldwide. For more information,send questions and comments to info@hdgold.com This page was created on Wed Jan 21,2004 at 8:56:06 AM Pacific Time. http://www.northerndynastyminerals.com/ndm/N ewsReleases.asp?printVersion=now&._Ti...1/21/2004 Northern Dynasty Minerals L'*?Home Page -Wed Oct 22,2003 Page 1 of 2 WHAT'S NEW Thu Sep 25,2003 :News Releases :Northern Dynasty Drilling Continues To Intersect E...(more...) @..Northern Dynasty has acquired th rights to purchase 100%of the Pebble gold-copper porphyry deposit, with an Inferred Mineral Resource containing 13.2 million ounces of gold and 6.8 billion pounds of copper.'Your Email Fri Aug 22,2003 :Media Coverage :Lawrence Roulston Provides Me aainen Comments on NDM's Lates...(more...) Subscribe . Tue Aug 19,2003 :News Releases :Northern Dynasty Drilling @.A recent independent resource ; Proving Higher-Grade Gol...(more...)estimate has shown that the Pebt TSXVEN:NDM deposit compares favorably with someLast425TueAug5,2003 :News Releases :Northern Dynasty Closes $5 of the world's largest mines $cng 10.48 Million Financing Gold-...(more...) : Volume 93900 Tue Jul 15,2003 :News Releases :Northern Dynasty Shareholders @..|mportantly,this resource estimat: Day High 4.25 Approve $5 Million F...(more...)also shows high-grade resources Day Low 4.05 available for early payback of Date 10-22-2003 NEW!-Northern Dynasty Minerals on Business construction capital. Time =13:10 Television (October 22/03) 15 minute delay @.The Hunter Dickinson manageme OTCBB:NDMLF NEW!-CLICK HERE TO VIEW THE LATEST INTERACTIVE DRILL MAP FROM THE 2003 DRILL team which operates Northern Dynasty has turned two other gold- Last 3.28 PROGRAM(September 25/03)copper porphyry projects into huge wi $Chg +0.17 for shareholders. Volume 416900 The World-Class Pebble Deposit e ;"a: ;Day High 3.28 A recently completed independent resource estimate,aa An aggressive 2003 drilling progr: Day Low 3.08 based on 93 drill holes in the Pebble deposit,establishes it 4.°°oeey to expand and devel:Date 40-22-2003 as one of the world's largest gold and copper resources,the substantial gold-copper resources Time 13:14 containing 13 million ounces of gold and 6.8 billion pounds *hroughout the district. 15 minute delay of copper.In gold-equivalent terms,this represents 31 million ounces!This inferred mineral resource estimate, prepared by Snowden Mining Industry Consultants Inc.of West Perth,Australia,has also revealed that the Pebble deposit contains significantly more higher-grade resources than previously thought.The 271 million tonnes of 0.86% copper equivalent within the deposit will play an important role in the payback of capital costs during the initial years of mine production. The Pebble deposit is well located in southwestern Alaska near infrastructure and year-round ice-free tidewater on the Pacific Ocean.The deposit occurs near surface in an area of gentle topography and low elevations,making it well suited for low cost open pit mining at a very low strip ratio. Preliminary test work by Cominco indicates good metallurgical characteristics. New Discoveries Within A Giant Mineral District Though the billion tonne Pebble deposit is enormous in its own right,it is a small part of the world's most extensive sulphide systems as listed by the United States Geological Survey,extending more than 89 square kilometres.The Pebble system is comparable to the world's most significant porphy districts,all of which contain multiple large-scale deposits.Last year,Northern Dynasty began to tes the tremendous potential of the Pebble district for additional large scale deposits with a 68 hole drilli program.This program was a resounding success --yielding four exciting new discoveries.These are: 38 DepositAnewgold-copper-molybdenum porphyry deposit,traced for more than 1 kilometer,with grades up http://www.northerndynastyminerals.com/ndm/Home.asp 10/22/2003 Northern Dynasty Minerals L**Home Page -Wed Oct 22,2003 Page 2 of 2 0.70%copper equivalent over 149 metres. 37 Deposit A gold-copper skarn zone grading up to 1.00 gram per tonne gold and 0.40%copper over 79 metre 25 Zone A high-grade gold zone,with intercepts up to 29 grams per tonne gold over 6 metres. 52 Zone Asecond new copper porphyry intersected in several wide-spaced drill holes. The 2003 Program -Building Further Value A major,multi-rig drilling program has commenced and is focused on delineating additional higher- grade resources within and adjacent to the Pebble deposit.Detailed logging of the core from the Pebble deposit in 2002 revealed several areas with excellent potential to host significant additional volumes of higher-grade material,and testing of these areas is a key aspect of the current program. The 2003 program will also seek to determine the full depth and lateral extent of the Pebble deposit Results to date have been very positive,with numerous drill holes returning excellent grade gold- copper mineralization.These new holes are confirming that the high-grade mineralization is continuous,that it is open to extension,that new higher-grade areas exist,and that the Pebble deposit has an excellent configuration for very low cost,open pit mining.Step-out holes have return high-grade gold-copper mineralization outside of the current boundary of the deposit,opening up dramatic extension possibilities.Stay tuned for more results! Another Company-Making Project From A Major Hunter Dickinson acquired the Pebble project from Cominco (now Teck Cominco)in much the same way that Novagold Resources obtained the Donlin Creek gold project from Placer Dome,or Canico Resource Corp.acquired the Onca-Puma nickel project from Inco.In all cases,these exceptional projects were controlled by major mining companies that were not able,for a variety of reasons,to sustain the momentum required to advance the project within their large organizations.Cominco's exploration and development focus was on zinc,for which they are the world's largest producer,anc therefore the Pebble gold-copper project was not a high priority.After two years of negotiation,Hun Dickinson was able to secure favourable option agreements on the Pebble property,immediately pr to a significant upturn in metal prices and the merger of Cominco with Teck Corporation.These agreements were assigned to Northern Dynasty,giving it control of the entire Pebble district,throug its ability to purchase a 100%interest in the billion tonne Pebble deposit (the "Resource Lands”)wit no underlying royalties or back-in rights,by paying Teck Cominco US$10 million in shares or cash prior to November 30,2004 and by purchasing Hunter Dickinson Group Inc.'s 20%interest at its independently appraised value.Northern Dynasty also has the rights to earn a minimum 50%intere in the surrounding "Exploration Lands”by exercising the "Resource Lands"options and by completi 60,000 ft of drilling (43,106 ft completed to date)prior to November 30,2004. Legal Disclaimer Northern Dynasty Minerals Ltd. 1020 -800 West Pender Street Vancouver,British Columbia Canada,V6C 2V6 Phone:604)684-6365 Facsimile:(604)684-8092 Toll Free:1-800-667-2114SSNSS http://www.northerndynastyminerals.com/ndm/Home.asp 10/22/2003