Denver — To fund exploration on its recently acquired Donlin Creek gold deposit, in southwestern Alaska, NovaGold Resources (NRI-T) has liquidated several non-core assets.
The company sold commercial real estate in Nome, Alaska, and a 70% interest in the Pine Cove gold property in Newfoundland for a total of $1.8 million. Further sales, of land and gravel, are expected to generate $4 million in revenue.
The Pine Cove property, near Baie Verte, was sold to New Island Resources (NIS-V), which owns the remaining 30% stake. In exchange, New Island received 1 million shares valued at 25 each. The transaction is expected to close by the end of April.
NovaGold optioned a 70% interest in the 13-million-oz. Donlin Creek gold deposit from Placer Dome (PDG-T) for US$12 million. The deposit hosts a measured and indicated resource of 70.1 million tonnes grading 3.1 grams gold per tonne, based on a cutoff grade of 1.5 grams per tonne. Inferred resources total another 66.2 million tonnes grading 2.8 grams gold. Using a 3.5-gram cutoff, the measured and indicated resource falls to 18.8 million tonnes of 5.2 grams gold, or 3.1 million oz.
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