assessment today of the NovaGold news. Here are some relevant quotes of Roulston’s opinion: “While the Galore Creek project is burdened with rising costs, the long-term projections for metal prices presently being used to evaluate the project seem out-of-step with reality. The feasibility study used a copper price of $1.25 and a gold price of $450 for the life of the project………NovaGold and its major company partner have indicated that they continue to see long-term value in Galore Creek and will maintain the project on care and maintenance and expect to resume development at some time in the future……..Clearly, it would have been nice to get out of all those stocks last week. At present prices, they represent good value. There is likely to be further volatility through the year end. Further selling, exacerbated by tax loss selling, will be countered by investors who are taking advantage of the low share prices in relation to the long-term value in those companies” (meaning NoveGold, Copper Fox and Romios).
Mr. Roulston is of the opinion that “Long-term metal prices, denominated in US dollars, must be adjusted to account for the decline in the value of the dollar. As that recognition sinks in, projects like Galore Creek will be seen in a new light.” He concludes that “Those deposits that have been delineated will take on increasing importance as it becomes apparaent that the mining industry has limited options in terms of expanding metal production”.
All wise words, in my opinion. We will hold our position in NG, and will continue exercising our NG warrants to acquire more NG shares.