NovaGold eyes more gold at Donlin (February 10, 2003)

NovaGold Resources (NRI-T) expects the final round of 2002 drilling on the Donlin Creek project in Alaska to expand current resources and boost five high-grade zones to the status of measured and indicated resource.

The resources will be incorporated into a prefeasibility study, to be followed by a final, comprehensive resource estimate.

Highlights from the infill drilling on the South Acma zone include hole 870, which returned 20 metres (at a down-hole depth of 386 metres) grading 5.3 grams gold per tonne, as well as 56 metres (at 300 metres down-hole) running 7.36 grams gold.

Hole 887, collared on the Acma East zone, cut 16.3 metres (at 155.8 metres down-hole) grading 13.3 grams gold. The holes significantly extend the depth and strike length of the zones.

Drilling on the Akivik zone was highlighted by hole 887, which yielded 19.2 metres (at 10.8 metres down-hole) grading 8.8 grams, and Hole 941, which returned 18.2 metres (at 155.8 metres down-hole) grading 9.2 grams, plus 25 metres (at 120 metres) grading 7.3 grams. Hole 921 returned up to 13 grams over 3.7 metres (at 117.7 metres).

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 of 4-22 metres. Hole 911 cut 22.7 metres (at 59.1 metres down-hole) of 6.06 grams gold, plus 6 metres (at 248 metres down-hole) of 9.3 grams gold.

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

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

NovaGold owns a 70% stake in Donlin Creek, with the remainder held by Placer Dome (PDG-T), which has certain back-in rights.

The major will have to provide a decision by the middle of the month on whether it will continue with its 30% interest or exercise an option to take back 40% of the property by spending US$30 million, completing a feasibility study, and undertaking to go into production at a minimum rate of 600,000 oz. annually.

Late last year, the partners boosted the inferred resource 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 are in the Akivik, 400 and Aurora zones.