NovaGold cuts higher grades at Rock Creek

The first six holes of an ongoing 30-hole infill drill program on the Rock Creek property, in western Alaska, have returned better-than-expected grades for California-based NovaGold Resources (NRI-T).

The deposit, situated near Nome, on the Seward Peninsula, contains a measured, indicated and inferred resource of nearly 1 million oz. in two deposits.

The drilling program focused on two zones: Rock Creek and Saddle. The Rock Creek zone hosts 8.2 million tonnes grading 2.7 grams gold per tonne, equivalent to 736,000 contained ounces, whereas Saddle contains 3.6 million tonnes grading 2.2 grams, or 260,000 oz.

As part of a first-phase program consisting of 3,200 metres of reverse-circulation drilling, NovaGold intends to upgrade the resource by drilling over a 30-by-90-metre spacing. In doing so, the company hopes to revise the average grade to 3 grams gold per tonne.

Highlights from the first six holes are as follows:

– Hole 1 — 4.6 metres grading 2 grams gold per tonne;

– Hole 2 — 30.5 metres of 2.7 grams gold;

– Hole 3 — two zones grading 3 grams gold over 27.4 metres from a down-hole depth of 16.8 metres, and 8.4 grams gold over 7.6 metres from 62.5 metres down-hole;

– Hole 4 — two zones grading 4.1 grams gold over 4.6 metres from 9.1 metres down-hole, and 1 gram gold over 7.6 metres from 16.8 metres down-hole.

– Hole 5 — four zones, including up to 1.1 grams gold over 15.2 metres from 7.6 metres down-hole, and 4.3 grams gold over 6.1 metres from 59.4 metres down-hole; and

– Hole 6 — three zones grading 3.1 grams gold over 1.5 metre from 7.6 metres down-hole, 1.5 grams gold over 12.2 metres from 24.4 metres down-hole, and 4.8 grams gold over 4.6 metres from 51.8 metres down-hole.

Once the current program is complete, the company will launch a 5,600-metre drill program.

NovaGold already has completed a series of bench and pilot-scale metallurgical tests. Recoveries from vein material containing pyrite and arsenopyrite averaged 91% using cyanide, though 37% of the gold reported to a gravity concentrate.

According to a preliminary scoping study, the property could produce 110,000 oz. gold annually at US$153 per oz., based on a gold price of US$300 per oz.