More gold at Donlin

Ongoing drilling by NovaGold Resources (NRI-T) has extended high-grade gold mineralization at the Donlin Creek project in southwestern Alaska.

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.

To date, 30 holes have been sunk in the core area, or Acma zone. All except nine were stepout holes. Highlights include:

– hole 599, which cut 12 metres grading 5.7 grams gold per tonne and 8.2 metres grading 5 grams;

– hole 600, which cut 13.4 metres grading 6.5 grams and 31.3 metres grading 15.2 grams;

– hole 604, which averaged 8.1 grams over 8.4 metres, 8.4 grams over 18.5 metres and 6.1 grams over 17.4 metres; and

– hole 605, which averaged 7.9 grams over 22 metres.

All of the above results are based on a cutoff grade of 3 grams per tonne. At a 1.5-gram cutoff, the intervals would be longer.

No results are available for the infill holes, but Novagold expects them to help bump up the core resource to the measured and inferred categories.

Drilling continues here and at the less-explored 400 Target, about 500 metres to the northwest. Gold mineralization in both 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.

Metallurgical work by Placer Dome (PDG-T) indicates that 89-95% of the gold can be recovered from the intrusive-hosted zones, with 76-78% retrievable from the sedimentary-hosted portion.

Novagold must spend US$12 million over 10 years to earn a 70% stake in the property from Placer. This includes the deposits and about 109 sq. km of surrounding ground.