Northern Dynasty Minerals Ltd.

Northern Dynasty Minerals Ltd.

March 04, 2005 14:01 ET

Northern Dynasty Minerals Ltd.: Independent Resource Estimate Confirms Substantial Upgrade And Expansion Of Pebble Gold-Copper-Molybdenum Deposit


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTHERN DYNASTY MINERALS LTD.

TSX VENTURE SYMBOL: NDM
AMEX SYMBOL: NAK

MARCH 4, 2005 - 14:01 ET

Northern Dynasty Minerals Ltd.: Independent Resource
Estimate Confirms Substantial Upgrade And Expansion Of
Pebble Gold-Copper-Molybdenum Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2005) - Ronald W.
Thiessen, President and CEO of Northern Dynasty Minerals Ltd. (TSX
VENTURE:NDM)(AMEX:NAK) is pleased to report the results of a new
independent mineral resource estimate for the Pebble porphyry
gold-copper-molybdenum deposit in southwestern Alaska. The estimate was
prepared by Roscoe Postle Associates Inc., industry leading geological
and mining consultants, which have estimated that the Pebble deposit
contains:

- Measured and Indicated Resources of 3.0 billion tonnes containing 31.3
million ounces of gold, 18.8 billion pounds of copper and 993 million
pounds of molybdenum, with an additional Inferred Resource of 1.1
billion tonnes containing 10.8 million ounces of gold, 5.8 billion
pounds of copper and 361 million pounds of molybdenum using a 0.30%
copper-equivalent cut-off grade.

- Higher-grade Measured and Indicated Resources of 569 million tonnes
grading 0.50 grams gold per tonne, 0.46% copper, and 0.021% molybdenum,
or 0.88% copper-equivalent, with an additional Inferred Resource of 143
million tonnes grading 0.56 grams gold per tonne, 0.40% copper, and
0.020% molybdenum, or 0.85% copper-equivalent above a cut-off grade of
0.70% copper-equivalent.

Roscoe Postle's resource estimate is based upon drill core assay results
from 70,719 metres of drilling in 265 holes which were completed by
Northern Dynasty during 2003 and 2004, and 19,245 metres in 118 holes
completed by Teck Cominco American Incorporated up to 1997. The resource
estimate was completed under the direction of David W. Rennie, P. Eng.
of Roscoe Postle Associates Inc., and R. Mohan Srivastava, M.Sc.,
P.Geo., of FSS Canada Consultants Inc., independent Qualified Persons as
defined by Canadian regulatory policy NI 43-101. A technical report
detailing the resource estimate will be filed on www.sedar.com within 30
days. A summary of mineral resources for the Pebble deposit at various
cut-off grades is tabulated below, with further details provided in the
attached tables.



PEBBLE DEPOSIT MINERAL RESOURCES

Measured Plus Indicated Resources:
---------------------------------

--------------------------------------------------------------------
Cut-Off Size Grade Contained Metal
--------------------------------------------------------------------
Moly- Moly-
CuEQ Million Copper Gold bdenum CuEQ Copper Gold bdenum
% Tonnes % g/t % % B lbs M ozs M lbs
--------------------------------------------------------------------
0.30 3,026 0.28 0.32 0.015 0.56 18.8 31.3 993
--------------------------------------------------------------------
0.50 1,628 0.35 0.39 0.018 0.69 12.7 20.5 629
--------------------------------------------------------------------
0.70 569 0.46 0.50 0.021 0.88 5.8 9.1 265
--------------------------------------------------------------------

Inferred Resources:
------------------

--------------------------------------------------------------------
Cut-Off Size Grade Contained Metal
--------------------------------------------------------------------
Moly- Moly-
CuEQ Million Copper Gold bdenum CuEQ Copper Gold bdenum
% Tonnes % g/t % % B lbs M ozs M lbs
--------------------------------------------------------------------
0.30 1,130 0.24 0.30 0.014 0.50 5.9 10.8 361
--------------------------------------------------------------------
0.50 417 0.31 0.42 0.018 0.67 2.9 5.6 168
--------------------------------------------------------------------
0.70 143 0.40 0.56 0.020 0.85 1.3 2.6 62
--------------------------------------------------------------------

Note 1 By prescribed definition, "Mineral Resources" do not have
demonstrated economic viability.

Note 2 Copper equivalent calculations use metal prices of US$1.00/lb
for copper, US$400/oz for gold, and US$6.00/lb for
molybdenum. Copper equivalent has not been adjusted for
metallurgical recoveries. Adjustment factors to account for
differences in relative metallurgical recoveries for gold,
copper and molybdenum will depend upon the completion of
definitive metallurgical testing. CuEQ equals Cu % +
(Au g/t x 12.86/22.06) + (Mo% x 132.28/22.06).

Note 3 An Inferred Mineral Resource is that part of a mineral
resource for which quantity and grade can be estimated on the
basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade
continuity.

Note 4 A 0.30% CuEQ cut-off is considered to be comparable to that
used for porphyry deposit operations in the Americas, but
is subject to completion of a feasibility study.


Robert A. Dickinson, Northern Dynasty's Chairman commented, "We are
delighted with the success of our 2004 drilling program, which not only
upgraded a substantial portion of the Pebble deposit's mineral resources
to measured and indicated classifications, but significantly expanded
the overall size of the deposit, its contained metal, and perhaps most
importantly, its higher-grade resources. We have now commenced our 2005
program which is budgeted at US$36 million. The program will include
delineation drilling of the exciting new East Zone discovery located on
the eastern flank of the deposit, where substantial open-ended volumes
of higher-grade gold-copper-molybdenum mineralization have been
encountered." He went on to say, "Comprehensive engineering,
environmental, and socioeconomic programs, designed for the completion
of a feasibility study and permit applications for a large scale, long
life mining operation, have been ongoing for the past year and will
continue in parallel with the drill program."

The Pebble deposit is located in an area of gentle terrain and moderate
climate, only 95 km from tidewater in Cook Inlet. Deposit mineralization
occurs in a near-surface configuration with almost no internal waste
over a broad area measuring at least 3 kilometres east-west and 2
kilometres north-south. A recent Preliminary Assessment indicates that
the Pebble project could generate very attractive rates of return at
production rates of 100,000 to 200,000 tonnes per day over a 30 to 60
year mine life. The State of Alaska's Southwestern Transportation Plan
includes the development of a port and a 113 kilometre road from Cook
Inlet to the town of Iliamna, located some 25 km to the southeast of the
Pebble deposit. The Alaskan Department of Transportation Public
Facilities has commissioned engineering studies for the selected road
corridor and port site. Homer Electric Utility and Northern Dynasty are
jointly funding a feasibility study of a power development plan to
connect the deposit site to the State of Alaska's Railbelt electrical
grid.

Mark Rebagliati, P.Eng and Dr. Morris Beattie, P.Eng, are the Qualified
Persons for the Pebble Project and are supervising the quality control
and assurance program. Logging and sampling is completed in Northern
Dynasty's secure facility at Iliamna, Alaska. The NQ-size core is split
and samples are transported to the ALS Chemex laboratory in Fairbanks
for drying, weighing and crushing. Samples are shipped by airfreight to
the main ALS Chemex laboratory, North Vancouver, Canada (an ISO 9002
certified laboratory) for final preparation and analysis. Gold is
determined by 30 g Fire Assay (FA) fusion with an Atomic Absorption
Spectroscopy (AAS) finish. Copper and molybdenum assays are by four acid
digestion with an Inductively Coupled Plasma-Emission Spectroscopy
(ICP-ES) finish. All samples are also analyzed for 23 additional
elements by four acid digestion ICP-ES. Northern Dynasty includes
standards, duplicates and blanks in addition to the laboratory's
internal quality control work. Duplicate samples are analyzed by Acme
Analytical Laboratories of Vancouver, Canada.

Northern Dynasty has acquired an 80% interest in the entire Pebble
property from Teck Cominco American Inc., and has the right to acquire
the remaining 20% interest, held by a related party, for share
consideration equal to its independently appraised value. Valuations of
the 20% interest are currently being conducted by industry experts and
will be submitted to an independent committee of the board which will
make a purchase recommendation. Northern Dynasty expects to make a
decision on the purchase by March 14, 2005.

ON BEHALF OF THE BOARD OF DIRECTORS

Ronald W. Thiessen, President and CEO



TABLE 1
PEBBLE DEPOSIT - MEASURED MINERAL RESOURCES

--------------------------------------------------------------------
Cut-Off Size Grade Contained Metal
--------------------------------------------------------------------
Moly- Moly-
CuEQ Million Copper Gold bdenum CuEQ Copper Gold bdenum
% Tonnes % g/t % % B lbs M ozs M lbs
--------------------------------------------------------------------
0.30 711 0.33 0.36 0.016 0.63 5.1 8.1 256
--------------------------------------------------------------------
0.40 655 0.34 0.37 0.017 0.66 4.9 7.8 244
--------------------------------------------------------------------
0.50 525 0.37 0.40 0.018 0.70 4.3 6.7 207
--------------------------------------------------------------------
0.60 356 0.41 0.43 0.019 0.78 3.2 4.9 150
--------------------------------------------------------------------
0.70 214 0.47 0.47 0.021 0.87 2.2 3.3 97
--------------------------------------------------------------------


TABLE 2
PEBBLE DEPOSIT - INDICATED MINERAL RESOURCES

--------------------------------------------------------------------
Cut-Off Size Grade Contained Metal
--------------------------------------------------------------------
Moly- Moly-
CuEQ Million Copper Gold bdenum CuEQ Copper Gold bdenum
% Tonnes % g/t % % B lbs M ozs M lbs
--------------------------------------------------------------------
0.30 2,320 0.27 0.31 0.014 0.54 13.7 23.2 736
--------------------------------------------------------------------
0.40 1,760 0.30 0.34 0.016 0.59 11.6 19.2 611
--------------------------------------------------------------------
0.50 1,100 0.35 0.39 0.017 0.68 8.4 13.9 423
--------------------------------------------------------------------
0.60 615 0.40 0.45 0.020 0.79 5.5 8.9 270
--------------------------------------------------------------------
0.70 356 0.46 0.51 0.021 0.89 3.6 5.9 167
--------------------------------------------------------------------


TABLE 3
PEBBLE DEPOSIT - MEASURED PLUS INDICATED MINERAL RESOURCES

--------------------------------------------------------------------
Cut-Off Size Grade Contained Metal
--------------------------------------------------------------------
Moly- Moly-
CuEQ Million Copper Gold bdenum CuEQ Copper Gold bdenum
% Tonnes % g/t % % B lbs M ozs M lbs
--------------------------------------------------------------------
0.30 3,026 0.28 0.32 0.015 0.56 18.8 31.3 993
--------------------------------------------------------------------
0.40 2,413 0.31 0.35 0.016 0.61 16.5 27.0 855
--------------------------------------------------------------------
0.50 1,628 0.35 0.39 0.018 0.69 12.7 20.5 629
--------------------------------------------------------------------
0.60 970 0.41 0.45 0.020 0.78 8.7 13.8 420
--------------------------------------------------------------------
0.70 569 0.46 0.50 0.021 0.88 5.8 9.1 265
--------------------------------------------------------------------


TABLE 4
PEBBLE DEPOSIT - INFERRED MINERAL RESOURCES

--------------------------------------------------------------------
Cut-Off Size Grade Contained Metal
--------------------------------------------------------------------
Moly- Moly-
CuEQ Million Copper Gold bdenum CuEQ Copper Gold bdenum
% Tonnes % g/t % % B lbs M ozs M lbs
--------------------------------------------------------------------
0.30 1,130 0.24 0.30 0.014 0.50 5.9 10.8 361
--------------------------------------------------------------------
0.40 756 0.27 0.34 0.017 0.57 4.5 8.2 278
--------------------------------------------------------------------
0.50 417 0.31 0.42 0.018 0.67 2.9 5.6 168
--------------------------------------------------------------------
0.60 226 0.36 0.49 0.020 0.77 1.8 3.6 101
--------------------------------------------------------------------
0.70 143 0.40 0.56 0.020 0.85 1.3 2.6 62
--------------------------------------------------------------------

Note 1 By prescribed definition, "Mineral Resources" do not have
demonstrated economic viability.

Note 2 Copper equivalent calculations use metal prices of US$1.00/lb
for copper, US$400/oz for gold, and US$6.00/lb for molybdenum.
Copper equivalent has not been adjusted for metallurgical
recoveries. Adjustment factors to account for differences in
relative metallurgical recoveries for gold, copper and
molybdenum will depend upon the completion of definitive
metallurgical testing. CuEQ equals Cu % +
(Au g/t x 12.86/22.06) + (Mo% x 132.28/22.06).

Note 3 An Inferred Mineral Resource is that part of a mineral
resource for which quantity and grade can be estimated on the
basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade
continuity.

Note 4 A 0.30% CuEQ cut-off is considered to be comparable to that
used for porphyry deposit operations in the Americas, but is
subject to completion of a feasibility study.


Forward Looking and other Cautionary Information

This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address estimated resource
quantities, grades and contained metals, possible future mining,
exploration and development activities, are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements should not be in any way construed as guarantees of future
performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include market prices for metals, the conclusions of detailed
feasibility and technical analyses, lower than expected grades and
quantities of resources, mining rates and recovery rates and the lack of
availability of necessary capital, which may not be available to the
Company on terms acceptable to it or at all. The Company is subject to
the specific risks inherent in the mining business as well as general
economic and business conditions. For more information on the Company,
Investors should review the Company's annual Form 20-F filing with the
United States Securities Commission and its home jurisdiction filings
that are available at www.sedar.com.

Information for US Persons Concerning Estimates of Measured, Indicated
and Inferred Resources

This news release also uses the terms "measured resources", 'indicated
resources' and 'inferred resources'. Northern Dynasty Minerals Ltd.
advises investors that although these terms are recognized and required
by Canadian regulations (under National Instrument 43-101 Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize them. Investors are cautioned not to
assume that any part or all of the mineral deposits in these categories
will ever be converted into reserves. In addition, 'inferred resources'
have a great amount of uncertainty as to their existence, and economic
and legal feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of Inferred Mineral Resources may not
form the basis of feasibility or pre-feasibility studies, or economic
studies except for Preliminary Assessment as defined under 43-101.
Investors are cautioned not to assume that part or all of an inferred
resource exists, or is economically or legally mineable

Other Cautionary and Risk Factors

The information relating to the possible construction of a port, road,
power generating facilities and power transmission facilities also
constitutes such "forward looking statements." The referred to
Preliminary Assessment was prepared to broadly quantify the Pebble
project's capital and operating cost parameters and to provide guidance
on the type and scale of future project engineering and development work
that will be needed to ultimately define the project's likelihood of
feasibility and optimal production rate. It was not prepared to be used
as a valuation of the Pebble project nor should it be considered to be a
pre-feasibility study. The capital and operating cost estimates which
were used have been developed only to an approximate order of magnitude
based on generally understood capital cost to production level
relationships and they are not based on any systematic engineering
studies, so the ultimate costs may vary widely from the amounts set out
in the Preliminary Assessment. This could materially adversely impact
the projected economics of the Pebble project. As is normal at this
stage of a project, data in some areas of the Preliminary Assessment was
incomplete and estimates were developed based solely on the expertise of
the individuals involved as well as the assessments of other persons who
were involved with previous operators of the project. At this level of
engineering, the criteria, methods and estimates are very preliminary
and result in a high level of subjective judgment being employed. The
Preliminary Assessment used only inferred mineral resources, which are
considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There can be no assurance that the potential results contained
in the Preliminary Assessment will be realized.

The following are the principal risk factors and uncertainties which, in
management's opinion, are likely to most directly affect the ultimate
feasibility of the Pebble project. The mineralized material at the
Pebble project is currently classified as measured, indicated and
inferred resources which are not a reserve. Considerable additional
work, including additional process tests and other engineering and
geologic work will be required to determine if any part of the
mineralized material is an economically exploitable reserve. There can
be no assurance that this mineralized material can become a reserve or
the amount that may be converted to a reserve or the grade thereof.
Feasibility work has not been done to confirm the pit design, mining
methods and processing methods. Final feasibility could determine that
the assumed pit design, mining methods and processing methods are not
correct. Construction and operation of the mine and processing
facilities depends on securing environmental and other permits on a
timely basis. No permits have been applied for and there can be no
assurance that required permits can be secured or secured on a timely
basis. Costs, including design, procurement, construction and on-going
operating costs and metal recoveries could be materially different from
those currently believed to be reasonable. There can be no assurance
that mining can be conducted at the rates and grades assumed in the
Preliminary Assessment. The project requires the development of port
facilities, roads and electrical transmission facilities.
Although the Company believes that the State of Alaska favors the
development of these facilities there can be no assurance that these
infrastructure facilities can be developed on a timely and
cost-effective basis. There can be no assurance that the State of Alaska
will implement its Southwest Transportation plan or that the power
feasibility study being conducted in conjunction with Homer Electric
Utility will result in a connection to the Alaska transmission grid at
acceptable costs or terms. Energy risks include the potential for
significant increases in the cost of fuel and electricity. The
Preliminary Assessment assumes specified, long-term prices levels for
gold, copper, silver and molybdenum. Prices for these commodities are
historically volatile, and the Company has no control of or influence on
those prices, all of which are determined in international markets.
There can be no assurance that the prices of these commodities will
continue at current levels or that they will not decline below the
prices assumed in the Preliminary Assessment. Prices for gold, copper,
silver, and molybdenum have been below the price ranges assumed in
Preliminary Assessment at times during the past ten years, and for
extended periods of time. The project will require major financing,
probably a combination of debt and equity financing. Interest rates are
at historically low levels. There can be no assurance that debt and/or
equity financing will be available on acceptable terms. A significant
increase in costs of capital could materially adversely affect the value
and feasibility of constructing the project. Other general risks include
those ordinary to very large construction projects including the general
uncertainties inherent in engineering and construction cost, the need to
comply with generally increasing environmental obligations, and
accommodation of local and community concerns.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Northern Dynasty Minerals Ltd.
    Investor Services
    (604) 684-6365 or within North America: 1-800-667-2114
    (604) 684-8092 (FAX)
    www.northerndynasty.com
    Neither the TSX Venture Exchange nor any other regulatory authority
    accepts responsibility for the adequacy or accuracy of this release.