Newmont plans program for McQuesten

The Canadian exploration arm of Newmont Mining (NEM-N) is teaming up with NovaGold (NRI-T) to explore the McQuesten property in the Yukon’s Keno Hill mining district.

McQuesten hosts two zones that have yielded up to 3.74 grams gold per tonne over 18.3 metres in drilling and up to 4.94 grams over 9.2 metres in trenching. Mineralization is hosted by calcareous metasedimentary and intrusive rocks. Both zones remain open along strike, and several geophysical anomalies outside the known mineralized system remain untested.

Through an existing agreement with Eagle Plains Resources (EPL-V), NovaGold can earn a 70% interest in the property by spending $1 million on exploration, of which 60% has already been covered. Newmont can earn 51% of NovaGold’s interest by paying $200,000 and spending $3.75 million on exploration over five years.

In related news, NovaGold has begun a 3,200-metre drill program at its Rock Creek property near Nome, Alaska. Holes will be collared in an area where up to 6.28 grams gold over 12.2 metres was returned in earlier drilling.

Meanwhile, NovaGold has moved its headquarters to San Jose, Calif., as part of an effort to market, through the Internet, gravels from its Alaskan operation. The gravels contain an internally estimated 2 million oz. alluvial gold.