Vancouver —
The project is located south of the company’s newly acquired Donlin Creek gold deposit. NovaGold, based in San Jose, Cal., picked up a 47.5% stake there in 1998.
The junior drilled 19 holes into the property and outlined an inferred resource of 32.8 million tonnes grading 0.9 gram gold per tonne, using a 0.5-gram-gold cutoff. With a cutoff grade of 0.75 gram gold, the resource came in at 16.6 million tonnes grading 1.3 grams. With a cutoff grade of 1 gram gold, it was 11.6 million tonnes averaging 1.4 grams gold.
The higher-grade sections are close to surface, and the preliminary pit design suggests a stripping ratio of about 1-to-1. Early metallurgical test work shows recoveries of 90% from cyanide leaching.
The mineralization occurs in the Mose target area as near-surface porphyry stockworks.
Under the deal, Cominco retains a 5% net profit interest in the property and gets the remaining 50% interest in the nearby Sleitat tin project. NovaGold keeps a 5% net profit interest in Sleitat.
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