EXPLORATION 1998 — NovaGold plans programs

NovaGold Resources’ (NRI-T) wholly owned subsidiary, Murray Brook Resources, has begun a 6,000-ft. diamond drilling program at the Murray Brook massive

sulphide deposit in northeastern New Brunswick.

The objective of the program is to explore extensions, at depth, of high-grade copper zones, where previous near-surface drilling intersected 3 to 12% copper over widths of 5 to 46 ft.

Four diamond-drill holes have been completed, all of which have intersected massive sulphides to a maximum vertical depth of 600 ft. Results are pending.

Meanwhile, NovaGold has entered into an option agreement with Consolidated Magna Ventures (CMV-V) to acquire that company’s interest in the 12,765-ha Koala lead-zinc property in central Chihuahua state, Mexico, where Magna has delineated a coincident lead-zinc geochemical and geophysical anomaly over a strike length of 2.5 km.

The Koala property consists of three claim blocks, dubbed Koala I, Koala II and Koala III. The deal gives NovaGold the right to earn a 51% interest in Koala II and Koala III and a 25.9% interest in Koala I by spending a total of US$3 million on exploration of the claims.

Under the deal, Magna will receive 100,000 units of NovaGold, with each unit consisting of one share and one share purchase warrant exercisable at $1.25 per share for two years.

The first phase of exploration is budgeted at US$340,000, and will comprise geophysical surveys and diamond drilling. NovaGold has also committed to introducing private placements for working capital for Magna at a minimum of $150,000.

Rick Van Nieuwenhuyse became NovaGold’s president in the new year, with Gerald McConnell retaining the positions of chairman and chief executive officer. Van Nieuwenhuyse, who is also president of affiliated company Etruscan Resources, was formerly vice-president exploration (Africa-Eurasia) for Placer Dome’s exploration subsidiary.

NovaGold also reports that its California Lake drill program in New Brunswick was terminated after completing one barren hole.