NovaGold raises $2.75 million for work on N.S. gold property

Another gold exploration company in Nova Scotia appears to be headed for an underground exploration program.

Soon-to-be-listed (on the tse) NovaGold Resources Inc. says a $6.6-million program is recommended in a recent geological report on its Fifteen Mile Stream property, located north of Sheet Harbour, N.S.

The program, designed to test a gold bearing zone, called the Plenty zone, at depths below 165 ft, could start in September. Its approval will hinge, however, on the results of a 30,000-ft drill program and a $1.1-million surface pit sampling program currently underway.

This work will test the zone down to the 150-ft level.

The work is justified on the results from a total of 41 drill holes totalling 16,000 ft put down on the 32-claim property since 1985. The latest drill program was completed in March.

They confirm the presence of a gold bearing zone of quartz carbonate veins i n a sequence of Ordivician greywackes and slates. The zone strikes for a distance of 2,000 ft.

Some of the better drill intersections include a 33-ft section grading 0.14 oz gold per ton and a 22-ft section averaging 0.164 oz gold per ton.

The property is readily accessible by a 16-mile gravel road and a rural power line extends to within two miles of the ground.

NovaGold acquired a 100% interest in the property in 1984.

The company holds several other properties in the Lake Charlotte and Liscomb River areas, both in Halifax Cty.

This brings the total number of underground exploration projects recommended or under way by publicly-traded companies looking for minable reserves of gold in the province to five. The others include: Seabright Resource’s Beaver Dam mine, Acadia Mineral Ventures’ Mooseland property, Coxheath Gold Holdings’ Tangier property and Northumberland Mines’ Cochrane Hill property.