NovaGold Resources (NG) Slammed; Barrick to Skip Large Investment in Donlin Project

July 26, 2012 10:02 AM EDT
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NovaGold Resources (AMEX: NG) is getting slammed Thursday morning, following negative news out of peer Barrick Gold (NYSE: ABX).

According to a release earlier, Barrick said the Donlin Gold project doesn't meet its investment criteria "primarily due to [its] large initial capital investment, and under our disciplined capital allocation framework we would not make a decision to construct them at this time." The company said Donlin does have large mineral resources and it will advance "permitting activities at reasonable costs which, in the case of Donlin Gold, will take a number of years."

Donlin is 50 percent owned by NovaGold. Shares are down 30 percent early.

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