NovaGold delivers Galore Creek values

Vancouver — NovaGold (NG-T) has tabled a positive scoping study of its Galore Creek copper-gold-silver project in northwestern British Columbia, while confirming additional mineralization through drilling.

Meanwhile, two initial holes from this year’s drilling at the Copper Canyon project, under option from Eagle Plains Resources (EPL-V), delivered significant mineralized intercepts. (Copper Canyon is within 5 km of Galore Creek and adjoins it toward the east.)

Highlights from the Copper Canyon drilling include the following:

— hole 022 — 73.5 metres (from 155.5 metres) grading 0.87% copper, 1.01 grams gold and 20.1 grams silver per tonne (or 1.66% copper-equivalent);

— hole 023 — 172.4 metres (from 44 metres) averaging 0.88% copper, 0.77 gram gold and 14.2 grams silver (or 1.48% copper-equivalent), including 33.5 metres of 2.16% copper, 1.77 grams gold and 23.8 grams silver (or 3.44% copper-equivalent).

Farther down-hole, a second mineralized intersection of 102 metres (from 271 metres) graded 0.47% copper, 0.73 gram gold and 10.4 grams silver (1% copper-equivalent).

NovaGold, through subsidiary SpectrumGold, acquired an option to earn 80% in the Copper Canyon project from Eagle Plains in late 2003. A 60% interest will be earned in return for spending $3 million on exploration over four years, payments of $250,000, and an issuance of 400,000 shares of SpectrumGold (now 296,300 shares of NovaGold). An additional 20% interest will be earned for a payment of $1 million and completion of a feasibility study by 2011.

Drilling by NovaGold on the newly discovered Bountiful zone, adjacent to the main Galore Creek Central deposit, also intersected significant copper-gold values, with hole 448 returning 159.7 metres (from 396 metres) of 0.56% copper, 0.15 gram gold and 4.4 grams silver (0.69% copper-equivalent. Another highlight was hole 450, which cut 112 metres in three intervals to a depth of 524 metres. The composite averaged 1.29% copper, 0.19 gram gold and 12.1 grams silver (1.52% copper-equivalent). Both holes ended in mineralization.

The company recently released results from an independent scoping study that outlined strong potential economics for development of the Galore Creek deposit. The report reviewed potential for a 23-year mine life along with a fairly quick mine capital cost payback of 3.4 years using long-term metal prices.

Annual projected production at Galore Creek is estimated at 270,000 oz. gold, 1.8 million oz. silver and 200 million lbs. copper over the initial five years of operation. Economics appear positive, with estimated total cash costs pegged at US15 per lb. copper, when gold and silver values are factored as credits.

The latest figures show NovaGold with 62.8 million shares outstanding. Shares were trading at $7.23 at presstime.