Vancouver —
The drilling was carried out on the newly discovered West Fork and Junction zones.
Highlights from West Fork include hole 479, which returned 11.3 metres (from 27.4 metres) grading 16.9% copper and 76.5 grams silver per tonne, including a 5.2-metre section of 27.3% copper and 163 grams silver (gold assays pending).
The West Fork zone contains semi-massive-to-massive bornite, chalcopyrite and magnetite mineralization. Three holes (two fanned from one collar and a 50-metre stepout) have so far been drilled on the high-grade, near-surface target.
Also, a second, flat-lying zone of copper mineralization was encountered at depth, beneath the near-surface high-grade zone. This deeper zone consists of disseminated bornite and chalcopyrite and averages 50 metres in thickness and measures 500 by 300 metres. It is laterally open in all directions.
At the Junction zone, NovaGold drilled five holes, one of which intersected three mineralized intervals: 24.4 metres (from 36.6 metres down-hole) grading 0.69% copper, 0.3 gram gold and 5.4 grams silver; 53 metres (from 94.5 metres) grading 1.2% copper, 0.26 gram gold and 8.8 grams silver; and 56.6 metres (from 155.6 metres) of 2.2% copper, 1.66 grams gold and 20 grams silver.
The three mineralized intervals give a composite 133.7 metres grading 1.6% copper, 0.9 gram gold and 12.9 grams silver.
None of the newly encountered mineralized zones has been factored into the resource calculation of 285.9 million tonnes grading 0.44 gram gold, 5.7 grams silver and 0.73% copper (indicated) and 98.8 million tonnes grading 0.37 gram gold, 4.8 grams silver and 0.54% copper (inferred).
The independent scoping study indicated potential for a 23-year mine life and a capital cost payback of 3.4 years, based on long-term metal prices. Annual production is pegged at 270,000 oz. gold, 1.8 million oz. silver and 200 million lbs. copper over the first five years. The total case cost is expected to be US15 per lb. copper when gold and silver values are factored in as credits.
NovaGold has 62.8 million shares outstanding and trades in the range of $8-8.25.
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