Acma grows again

The Acma target on the 13-million-oz. Donlin Creek deposit in southwestern Alaska continues to provide positive results for operator NovaGold Resources (NRI-T).

The latest assay results include:

• Hole DC01-613 – 52 metres (from 5 metres below surface) grading 6.1 grams gold per tonne, 9 metres (from 153 m) of 4.2 grams, and 8.1 metres (from 214 m) of 7.1 grams;
• Hole DC01-615 – 5.1 metres (from 62.9 m) grading 15.7 grams and 28.4 metres (from 104 m) of 7.1 grams;
• Hole DC01-617 – 9.2 metres (from 60 m) of 3.3 grams and 45.8 metres (from 100 m) of 4.2 grams gold, including 13.8 metres (from 132 m) of 8.2 grams; and
• Hole DC01-619(a) — 8.4 metres (from 26 m) of 6.6 grams and 22 metres (from 97.5 m) of 10.7 grams.

Holes 615, 617 and 619 represent a significant down-dip extension of the higher-grade Acma zone to the southwest. The zone remains open and an extensive alluvial-covered area to the southwest remains untested. Also untested is the area between Acma and the 400 Zone, 500 metres to the west. Both of the areas will be tested during the spring 2002 prefeasibility drill program, which is aimed at establishing ultimate pit boundaries.

Results are also in for three more holes on the 400 Zone. Hole DC01-614 cut 3.2 metres (from 15.5 m) grading 6.6 grams gold; hole DC01-618 returned 10 metres (from 26 m) of 5.1 grams gold and hole DC01-620 yielded 20.4 metres (from 18.7 m) of 4.9 grams gold. All six holes sunk on the 400 Zone so far have cut promising near surface gold mineralization.

So far during the 2001 drilling campaign at Donlin Creek, Novagold has drilled 42 holes totalling 7,300 metres. Final assay results from six remaining holes are pending.

The company along with Toronto-based engineering firm AMEC and MRDI have begun a comprehensive economic scoping study and updated resource estimate for the higher-grade portion of the Donlin Creek Deposit.

At last report, Donlin Creek’s measured and indicated resource stood at 70.1 million tonnes grading 3.06 grams gold per tonne, based on a cutoff grade of 1.5 grams. Another 66.2 million tonnes averaging 2.83 grams are classified as inferred resources. Current efforts are focused on a high-grade core, where 18.8 million tonnes grading 5.2 grams gold have been outlined. This portion is based on cutoff grade of 3.5 grams gold.

An in-house preliminary economic model for the higher-grade resource indicates unit operating costs of less than US$22 per tonne of ore may be achievable (including mining, ore treatment, administration and reclamation). Total unit operating costs are estimated at less than US$150 per oz. and total cash costs are pegged at less than US$195 per oz.

Gold mineralization in both zones is structurally controlled and occurs as disseminations and veinlets in association with fine-grained arsenopyrite. Most of Donlin Creek’s resources are hosted by intrusive dykes and sills, plus high-grade stockworks in surrounding sedimentary rocks.

Previous metallurgical work by Placer Dome (PDG-T) indicates gold recovery rates between 89 and 95% for gold in the intrusive-hosted zones. The sedimentary-hosted portion yielded rates around 76 to 78%.

A prefeasibility study is slated to begin in the spring of 2002.

Novagold can earn a 70% stake in Donlin Creek from Placer by spending US$12 million over 10 years. This includes the deposits and about 109 sq. km of surrounding ground.