The World’s Biggest Copper-Gold Deposit [NDM;NAK]

August 13th, 2007

Northern Dynasty Minerals [TSX-Venture: NDM; AMEX: NAK] is an exploration company that discovered one of the worlds biggest copper-gold deposits in Alaska. The discovery was made 380 kilometres from Anchorage and is named Pebble Project and comprises of over 22,582 hectares. Teck Cominco must be dumb founded! How did they let this slip through their hands and sell it off?

On February 20, 2007 NDM confirmed some big drilling finds and now has a more accurate estimation of the resources contained within the property.

@ 0.60% copper equivalent cut-off estimated inferred resources are:

• 42.6 billion pounds of copper.
• 39.6 million ounces of gold.
• 2.7 billion pounds of molybdenum.

When a small exploration company makes a find this big, there are many problems that must be overcome and the financial burden to build a large scale mine is not cheap. For this reason, many start-ups are often acquired by larger mining companies. In this case, NDM was able to create a joint venture with another company that does have the money, Anglo American. Anglo American must make a stagged cash investment of $1.425 billion.

Often the larger company that comes into any joint venture is given control. In the case of Northern Dynasty Minerals, the joint venture with Anglo American is a true 50:50!

Peter Grandich, an investing professional, has even gone as far as to say that NDM may be worth up to $25 a share. Time will tell. Not bad for a company to go from under $0.36 a share in 2002 to over $13.50 in 2007 with lots of further upside potential! I’m sure NDM has some happy shareholder’s! My guess is another company will buy NDM out.

Currently the stock price is $13.50 [TSX-Venture: NDM] and $12.70 [AMEX: NAK]. You can also purchase $7.50 Feb 2008 Call Options for $5.80.

Entry Filed under: Mining, Investing