NovaGold delivers further results from Galore Creek

Vancouver – Having recently tabled a positive scoping study on its wholly owned Galore Creek copper-gold-silver project in northwestern British Columbia, NovaGold (NG-T) confirmed additional mineralized zones in the area through drilling.

Two initial holes from this year’s drilling at the Copper Canyon project, under option from Eagle Plains Resources (EPL-V), delivered significant mineralized intercepts. Results were:

• Hole CC04-022 Intersected 73.5 metres (from 155.5 metres) grading 0.87% copper, 1.01 grams gold per tonne and 20.1 grams silver per tonne (or a copper equivalent of 1.66%);
• Hole CC04-023 An intercept of 172.4 metres (from 44 metres) averaged 0.88% copper, 0.77 grams gold and 14.2 grams silver (or a copper equivalent of 1.48%), including 33.5 metres of 2.16% copper, 1.77 grams gold and 23.8 grams silver (3.44% copper equiv.); further down hole a second mineralized intersection of 102 metres (from 271 metres) was encountered assaying 0.47% copper, 0.73 grams gold and 10.4 grams silver (1% copper equiv.).

Copper Canyon is within 5 km. and adjoins the Galore Creek project towards the east. In late-2003, NovaGold, through now wholly owned subsidiary SpectrumGold, acquired an option to earn 80% in the project from Eagle Plains. A 60% interest will be earned through $3 million in exploration expenditures over four years, payments of $250,000 and an issuance of 400,000 shares of SpectrumGold (now 296,300 shares of NovaGold). An additional 20% interest will be earned for a payment of $1 million and completion of a feasibility study by 2011.

Drilling by NovaGold on the newly discovered Bountiful zone, adjacent to the main Galore Creek Central deposit, also intersected significant copper-gold values. Results included:

• Hole GC04-448 An deep intersection of 159.7 metres (from 396 metres) cut 0.56% copper, 0.15 grams gold and 4.4 grams silver (copper equiv. grade of 0.69%);
• Hole GC04-450 Over 112 metres of copper-gold-silver mineralization was intersected in three intervals to a depth of 524 metres. The composite averaged 1.29% copper, 0.19 grams gold and 12.1 grams silver (1.52% copper equiv.).

Both of the holes were ended in mineralization.

NovaGold has also been seeing success in IP geophysical surveys adjacent to known deposits at Galore Creek.

Earlier in August, the company released the results of an independent scoping study that outlined strong potential economics for development of the Galore Creek deposit. The report reviewed potential for a 23 year mine life along with a fairly quick mine capital cost payback of 3.4 years using long-term metal prices. Annual projected production at Galore Creek is estimated at 270,000 oz. gold, 1.8 million oz. silver and 200 million pounds of copper over the initial five years of operation. Economics appear positive with estimated total cash costs foreseen at US$0.15 per pound of copper, when gold and silver values are factored as credits.

The latest figures show Novagold with 62.8 million shares outstanding. Investors took notice of the results, rallying the issue up to the $7.23 per share level, at presstime, on strong volume.