NovaGold eyes more gold at Donlin (January 30, 2003)

NovaGold Resources (NRI-T) expects the final round of 2002 drilling on the Donlin Creek gold project in Alaska to expand current resources, and boost part of the new high-grade material in the Akivik, Aurora, 400, Acma and South Acma zones to the measured and indicated status.

NovaGold plans to incorporate the new resources in the new modeled pit outlines that will be employed in a prefeasibility study slated for completion by mid-year. A final comprehensive resource estimate is expected in March.

The in-fill drilling aimed close the drill hole density in new resource areas to a minimum 50-50-metre spacing.

Highlights from drilling on the South Acma area include hole 870, which returned 7 significant zones (between 74 and 481 metres below surface), including 20 metres (from 386 m) grading 5.3 grams gold and 56 metres (from 300 m) running 7.36 grams gold per tonne.

Hole 887, collared on Acma East, cut 3 significant zones including 16.3 metres (from 155.8 m) of 13.3 grams gold.

NovaGold reports that the holes significantly extended the depth and strike length of the zones.

Drilling on the Akivik target was highlighted by hole 887, which yielded 19.2 metres (from10.8 m) grading 8.8 grams and Hole 941 with 18.2 meters (from 155.8 m) grading 9.2 grams plus 25 metres (from 120 m) of 7.3 grams. Hole 921 returned up to 13 grams over 3.7 metres (from 117.7 m). The remaining holes returned between 3 and 10 grams gold over slightly smaller intervals.

Eight holes collared on the 400 zone returned between 3.5 and 11.1 grams gold over widths from 4 to 22 metres. Hole 911 encountered three intervals, including 22.7 metres (from 59.1 m) of 6.06 grams gold, and 6 metres (from 248 m) 9.3 grams gold.

NovaGold also tabled results for 12 holes on the Aurora discovery. Gold values typically fall between 3-7 grams gold over widths between 1 and 18 metres. Hole 961 returned several intervals, with the best running 6.8 grams over 18 metres (from 98 m).

Overall in 2002, NovaGold sank 195 core holes totalling 39,158 metres and 152 rotary holes for 11,851 metres.

Denver-based Hazen Labs has begun studies aimed at optimizing Newmont Metallurgical Services’ patented N2TEC flotation process, which showed very encouraging results last year. Hazen will undertake additional ore characterization and act to refine bench-scale batch conventional flotation, N2TEC flotation, pressure oxidation and cyanidation test work. So far, tests confirm an improvement of overall gold recovery via process optimization.

NovaGold plans to utilize the improved recovery projections and process flowsheet in Donlin’s prefeasibility study and will determine the parameters for subsequent continuous pilot-plant work in the feasibility stage.

NovaGold owns a 70% stake in Donlin Creek, though Placer Dome (PDG-T) has until mid-February to decide on one of its options, which are:

to remain at a 30% interest and contribute at that level throughout development of the project;

• to convert to a non-contributing 5% net profits interest; or
• to exercise a back-in right to re-acquire an additional 40% interest in the project by completing certain conditions in the next five years.

The conditions include spending at least US$30 million on project development, completing a bankable feasibility study, and agreeing to build a mine that produces not fewer than 600,000 oz. gold per year.

Late last year, the partners boosted Donlin’s inferred resource by nearly 40% to 132.6 million tonnes averaging 3.48 grams gold per tonne, or 14.8 million contained ounces. Most of the added resources comes from the Akivik, 400 and Aurora target areas. Measured and indicated figures stand at 73.2 million tonnes of 3.51 grams gold, or 8.3 million oz.