The Alaska Department of Natural Resources approved a Miscellaneous Land Use Permit regarding the Pebble Project of Northern Dynasty Minerals Ltd. (TSX:NDM) (NYSE MKT:NAK) subsidiary Pebble Limited Partnership. The approval propelled shares of NDM, making it one of the biggest movers on the leading Canadian exchange Wednesday morning.
The permit confirms exploration activities on the project remain in compliance with state regulations, allowing the company to continue to move forward. To date, more than 1,800 holes have been bored at the property. Northern, through its wholly owned subsidiary, intends to advance the work program at Pebble to prepare for initiation of permitting under the Clean Water Act and National Environmental Policy Act.
Looking ahead at development at Pebble, the permit also includes a performance guaranty of $2 million related to any potential reclamation liability.
The project, which has been actively explored for over a decade, is considered by Northern to be “one of the greatest stores of mineral wealth ever discovered.” They’re not necessary exaggerating. The current resource estimate for the project includes an incredible 57 billion pounds of copper, 70 million ounces of gold, 344 million ounces of silver and 3.4 billion pounds of gold in the measured and indicated categories.
Shares of NDM are ahead 29.4% at $2.37 in Wednesday morning trading. After falling from a high of $4.46 in February, shares have essentially held their 200 day moving average and appear to be back on the climb.
