UPDATE: Novagold Resources Shares Tumble on Doubts Over Donlin Creek Gold Project
Novagold Resources (NG.TO) plunged more than 23% on worries about the future of its flagship Donlin Creek gold project in Alaska, jointly owned with Barrick Gold Corp. (ABX.TO).
Barrick announced Thursday that a number of projects in its pipeline don't meet cost targets after announcing quarterly earnings dropped 35%, Canadian Press reported.
And the Donlin project is one of these, with Barrick saying it "no longer meets its investment criteria.
NovaGold reported net income of $94.2 million (or $0.34 per share) for the three months ended May 31, 2012. This compares to a net income of $24.6 million (or $0.11 per share) in the same period last year.
NG shares were down $1.29 to $4.16 on volume of 1.15 million.