The property contains a measured indicated and inferred resource of nearly 1 million oz. in two deposits. The Rock Creek deposit consists of 8.2 million tonnes grading 2.7 grams gold per tonne (or 736,000 contained ounces), whereas the Saddle deposit contains 3.6 million tonnes grading 2.2 grams (260,000 ounces).
The first phase will consist of 3,200 metres of reverse-circulation work. NovaGold intends to upgrade the resource by drilling over a spacing of 30 by 90 metres and to revise the average grade to 3 grams gold per tonne.
The second phase, amounting to 5,600 metres, will include further infilling of the resource on 30-metre-by-45-metre spacing.
The company expects to spend US$700,000 on the program, plus US$300,000 on core drilling for purposes of metallurgical testing.
NovaGold already has completed a series of bench and pilot-scale metallurgical tests. Recoveries from vein material, containing pyrite and arsenopyrite, averaged 91% using cyanide, though 37% of the gold reported to a gravity concentrate.
NovaGold is funding the program with proceeds from the sale of land in the Fairbanks district, which netted the company US$1.3 million.
According to a preliminary scoping study, the property could produce 110,000 oz. gold annually at US$153 per oz., based on a gold price of US$300 per oz.
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