Teuton Resources Corporation

Current Presentations

May 2007

Teck Cominco, NovaGold Resources begin US$2 billion joint venture to build a world-class copper-gold mine at Galore Creek in Northwestern BC

The Galore Creek Mine will be located 160 kilometres northwest of Stewart, BC along a mineral-rich belt of rock that trends northwest in the Stewart Region (see map below). The mine is expected to be in production by 2012. With 540 million tonnes of reserves and about 1 billion tonnes of resources, the open pit mine is forecast to have at least a 20-year lifespan. In its first five years, annual production at Galore Creek is expected to yield 432 million pounds of copper, 341,000 ounces of gold, and 4 million ounces of silver. The mine will have a processing rate of 65,000 tonnes/day. Once complete, Galore Creek will rank as one of the largest copper-gold mines in the world. The project is expected to create 1000 construction jobs and 500 full-time jobs and has the support of the local Tahltan First Nation.

Under the terms of the Teck Cominco-NovaGold agreement announced May 23, 2007, Teck Cominco is committed to spend about US$478 million in construction costs in order to earn a 50% interest in the mine, with each company responsible for its pro rata share of costs thereafter. In addition, Teck Cominco has agreed to cooperate in arranging NovaGold’s US$500 million of project-related debt financing. Details of the agreement are available on NovaGold’s website. Teck Cominco Chief Executive Don Lindsay anticipates his company will spend about $1.5 billion on the project over time. “We’ve been looking at opportunities all over the world to invest. And there are a number of them that have been shown to us,” he said, “Here in British Columbia is one of the very best opportunities that we could find.”

The Galore Creek project is widely seen as an indication that the current BC Government is friendly toward the mining industry. Since coming to office in 2001, Gordon Campbell’s BC Liberals have worked hard to reinvigorate the mining industry in the province. The BC Government has streamlined the environmental regulatory process and developed an online mineral tenure staking system. They have also moved forward on aboriginal land claims. It would seem the Provincial Government’s efforts are starting to payoff, as mineral exploration spending in the province hit an all-time high of C$265 million in 2006. Also, BC’s share of exploration spending nationally rose from 6% in 1999 to 18% in 2006. Premier Gordon Campbell’s presence at the May 23 Galore Creek news conference was symbolic of his government’s support of the mining industry.

The Galore Creek project is likely to spur greater interest in the mineral-rich Stewart Region of BC. Phase 1 of the project, which is already underway, involves building the necessary supporting infrastructure, such as roads and power transmission lines. In July 2007, NovaGold announced that 25 kilometres of road had been constructed with an additional 25 kilometres of right-of-way cleared for road construction. In addition, construction of the first permanent bridge to cross the Iskut River is almost complete (cf. NovaGold’s July 16, 2007 press release). The bridge will provide a road link between the Galore Creek area and Highway 37. Such key pieces of infrastructure improve the economic feasibility of mine development and mineral exploration throughout the region.

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