borej

Yes, the costs of a mine are high and Novagold has chosen to develop one in a very high cost area.

I know a helicopter pilot that flies equipment into Novagold and he has been told the declining US dollar is the main reason for the shut down. Apparently Novagold has mostly US interests and with the remoteness of the area and the declining US dollar a decision was made to shut it down for now. Also, winter is setting in with the associated costs faced when operating in the mountains. This area is next to Alaska and far more remote than NOT's location.

From what I can see NOT has relatively gentle terrain (much lower road costs), a diamond mine within 70km and a smelter not too far away, a very high grade nickel deposit including attractive platinum and palladium values, high copper values, and gold (68m of 9 g/ton in hole #5).

When it becomes a mine doesn't really matter. A find of this caliber is rare and the majors are not going to let it get away.