NovaGold tests 400 zone

The five latest holes by NovaGold Resources (NRI-T) on the Donlin Creek gold deposit in Alaska, have all cut high-grade gold mineralization.

Three holes tested the high-grade Acma zone and two were collared on the less-explored 400 Target, about 500 metres to the northwest.

At Acma, hole DC01-609 cut 25 metres (from 50 metres below surface) grading 6.8 grams gold per tonne, 20.1 metres (from 121 m) of 5.9 grams and 8 metres (from 161 m) of 7.4 grams gold.

Hole DC01-611 returned 27.9 metres (from 7.1 m) grading 4.2 grams, 3 metres (from 84 m) of 9.8 grams and 117.5 metres (from 106.5 m) of 5.2 grams.

Hole DC01-613 intersected 52 metres (from 5 m) of 6.1 grams gold. Further assay results from the hole are pending.

NovaGold says there is excellent potential to expand the Acma zone down dip to the south, west, and east. Two drill rigs are currently testing open areas of the Acma zone.

Results are also in from the first two holes on the 400 zone.

Hole DC01-610 encountered 26.2 metres (from 26 m) grading 5.5 grams and 4 metres (from 89 m) of 6.2 grams.

Hole DC01-612 returned some higher grade, but narrower, intervals, such as 2 metres (from 26 m) running 15.8 grams and 1 metre (from 55.1 m) of 16 grams.

Assay results from four other holes on the 400 zone are expected in early November.

Situated 480 km west of Anchorage, Donlin Creek hosts a resource of 70.1 million tonnes grading 3.06 grams gold per tonne. Efforts are currently focused on a high-grade core, where 18.8 million tonnes grading 5.2 grams gold have been outlined.

Gold mineralization in both the Acma and 400 areas is structurally controlled and occurs as disseminations and veinlets in association with fine-grained arsenopyrite. Most of Donlin Creek’s resources are hosted by intrusive dykes and sills, plus high-grade stockworks in surrounding sedimentary rocks.

Previous metallurgical work by Placer Dome (PDG-T) indicates gold recovery rates between 89 and 95% for gold in the intrusive-hosted zones. The sedimentary-hosted portion yielded rates around 76 to 78%.

NovaGold intends to soon begin an updated resource estimate and economic scoping study, at Donlin Creek deposit. As well engineering studies are planned. The studies are part of a prefeasibility study slated to begin in the spring of 2002.

An in-house preliminary economic model for the higher-grade resource at Donlin Creek indicates the possibility of unit operating costs (including mining, ore treatment, administration and reclamation) of less than US$22 per tonne of ore. Total unit operating cost are pegged at less than US$150 per oz. of gold and a total cost including capital investment at less than US$195 per oz.

Novagold can earn a 70% stake in Donlin Creek from Placer by spending US$12 million over 10 years. This includes the deposits and about 109 sq. km of surrounding ground.