Northern Dynasty Minerals Ltd. on Jan. 24 announced the first resource estimate in a newly discovered ore deposit east of the minerals deposit in which the company initially was working. Combining resources of the previously known Pebble West deposit with the new estimates of resources in the new Pebble East deposit gives a new total of 65.6 million ounces of gold and 50.6 billion pounds of copper.

Bob Dickinson, board chairman of Northern Dynasty Ltd., said the combined Pebble West and Pebble East deposits "rank among the largest copper, gold and molybdenum accumulations in the world."

The new combined resource estimate compares with 42.1 million ounces of gold and 24.7 billion pounds of copper previously estimated for the Pebble West ore deposit. The estimates for Pebble West include both "inferred" resources and "measured and indicated" resources, the latter based on more detailed drilling data.

The numbers for both Pebble West and Pebble East are based on a 0.3 percent copper equivalent cutoff grade. Northern Dynasty's Jan. 24 press release contains resource estimates for 0.3, 0.6, 0.7 and 1 percent copper equivalent cutoff grade. Copper equivalent is a measure of the ore grade that combines both the gold and copper values.

The final feasibility study of the mine will determine the actual ore cutoff grade for ore to be mined, said Bruce Jenkins, Northern Dynasty's chief operations officer.

For example, in the deeper Pebble East deposit costs may be higher and a higher grade of ore, such as 1 percent, may be required. That could lower the metal resources that could be mined.

Meanwhile, Pebble's reserves could get even bigger. Jenkins said the company plans to bring in heavy drill rigs in March that are capable of drilling deeper in both the east and west ore zones.

Geologists have not determined the lower limits of either ore body, Jenkins said. The heavy rigs will enable to company to test the quality of ore below the sections that have been reached so far by test drilling, he said. The company has budgeted $20 million for its 2006 drilling program.

Current estimates of the Pebble East area are based on drill core assay results from 68,500 feet of drilling in 22 holes recently completed by the company.

Meanwhile, an ongoing feasibility study launched in 2004 on the Pebble West site, which the company originally expected to be completed by early this year, will continue in parallel with the Pebble East drilling program, Northern Dynasty said in its press release.

"At this point, expectations are that the project will integrate production from high-volume, low-cost, open-pit and underground mines," the company press release said.

The company said recently the Pebble East find has led the company to push back applying for mining state and federal permits until 2007 while further drilling and assay work in Pebble East is conducted.

As drilling activities and planning efforts at the mine site are expanding, Northern Dynasty officials are assessing facilities at Kenai Peninsula ports that could serve as jumping off sites for supplies and material if and when mine construction actually begins.

Jenkins said the company has been meeting with a variety of interest groups, including the Kenai Peninsula Borough, the cities of Homer and Kenai, and the borough of Kodiak as part of its corporate outreach program, giving officials and interested parties there an update on the timing of the project.

Among the issues being discussed are the latest estimates of the volumes, types and quantities of materials that might be expected to move over dock facilities in Homer and Kenai, and the layout of future port facilities at Williamsport.

"In a nutshell, we are defining the need for port space, volumes of material, duration of shipping containers (time on dock)," he said. "We are hearing positive and enthusiastic statements about using existing facilities on the Kenai Peninsula."

Jenkins said the company also is interested in hearing about peninsula fabrication facilities.

"All this is being factored into the feasibility study," he said.