NovaGold upbeat on Copper Canyon

Vancouver — NovaGold Resources (NG-T) has intersected significant copper, gold and silver mineralization during an 8-hole, 2,700-metre drill program at the Galore Creek project in northwestern British Columbia.

Drilling focused on the Copper Canyon zone, where mineralization is near to surface and open in all directions, as well as at depth.

Highlights include hole 22, which cut 73.5 metres (from 155.5 metres) grading 0.87% copper, plus 1 gram gold and 20.1 grams silver per tonne, including 46 metres of 1.14% copper, 1.44 grams gold and 23.6 grams silver, and hole 23, which returned 274.4 metres (from 44 metres) of 0.74% copper, 0.76 gram gold and 12.9 grams silver.

Significant high-grade zones are present in broadly disseminated zones of copper-gold-silver mineralization. An area of mineralization measuring 700 by 400 metres has been outlined so far.

NovaGold has engaged engineering firm Hatch to conduct an independent resource estimate on Copper Canyon. The study will review this year’s drill results, as well as previous results.

Mineralization at Copper Canyon generally occurs as a 100-metre-thick zone of chalcopyrite and pyrite in a porphyry system.

NovaGold is earning up to an 80% interest in Copper Canyon from Eagle Plains Resources (EPL-V). In return, the junior has agreed to spend $3 million on exploration, issue 296,000 shares, pay $1.25 million, and complete a feasibility study.

The company recently closed a $20-million flow-through financing underwritten by Canaccord Capital and Salman Partners, as well as Dundee Securities. The offering was increased from its initial amount to 1.98 million flow-through shares priced $10.10 per share. Funds will be used to develop Galore Creek.

NovaGold has 65.5 million shares outstanding and trades at $8.50 per share.