Calvin Oh

Investing Like Buffett: Why NovaGold is a Buy

Keep in mind also, that Barrick is the other 50% partner on the project, which gives the project a higher probability of becoming a mine, because of the expertise in mine building and financial capacity that Barrick brings to the table.

Investing Like Buffett: Why NovaGold is a Buy

I don't know what it would cost. That is the concern that caused the precipitous decline in the stock price. This uncertainty is an opportunity for investors who have been wanting to establish a position or accumulate.

There were previous estimates that the costs to build a mine would be in the $2 billion area but now estimates are $4 billion plus. The exact numbers, I don't know since I am not a mine engineer. The pre-feasibility is due in Q-1 of 2009. We'll have a clearer picture when the study is released. If you're waiting for all the risk to be gone before taking a stab at NG then you should wait until the stock goes back above $20 or steer clear of the junior mining sector all together.

The costs to extract gold out of the world's oceans would be approximately $35,876 per gram.