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NovaGold on its way to sell Galore Creek stake

Canadian miner NovaGold Resources Inc. (TSX:NG) said today that it has begun the process of trying to sell its 50% stake in the Galore Creek copper-gold project in British Columbia, in order  to fully focus on its flagship Donlin gold project in Alaska, in a stament announcing its poor Q4 results.

The Vancouver-based company shares were down 1.26% this morning, after Nova Gold said it lost $38 million, or 16 cent per share, during the fourth quarter of 2011, widening a loss of $21.5 million, or 12 cents per share, during the year-earlier period.

The loss included an impairment charge on the Galore Creek project  (in the image) of $8.3 million related to equipment and $2.7 million in compensation costs related to a corporate reorganization.

Revenues for the quarter ended Nov. 30 fell to $111 million from $172 million in the 2010 period.

For the full year, the company’s loss narrowed to $153 million, or 65 cents%, from $203.5 million, or 95 cents per share, in 2010. That included a non-cash asset impairment charge of $116.4 million related to its Rock Creek project.

Full year revenues slipped to $401 million from $599 million in 2010.

The other 50% of Galore Creek is held by Canadian miner Teck Resources. Galore could become the largest copper mine in Canada, and one of the lowest-cost mines on an operating basis.

The project is forecast to produce 6.2 billion pounds of copper, 4.0 million ounces of gold and 65.8 million ounces of silver over an approximate 18-year mine life.

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