More metallurgy at Donlin

Vancouver Ahead of a planned US$3-million drill program slated for August, junior NovaGold Resources (NRI-T) has begun additional metallurgical test work on the Donlin Creek gold deposit in southwestern Alaska.

Reno, Nevada-based McClelland Labs has conducted a review of the metallurgical testwork completed by Placer Dome (PDG-T) and will be making recommendations for further work. Previous work by Placer included bench-scale grinding, flotation, pressure oxidation, and carbon-in-leach (CIL) cyanidation testwork on both intrusive and sedimentary Donlin Creek ores. Results showed that 95-98% of the gold is contained in the finer grained arsenopyrite. Gold recoveries came in at greater than 90% for both intrusive and sedimentary ores by sulfide flotation concentration followed by oxidation (pressure oxidation or bio-oxidation) of the concentrate and CIL cyanidation. Combined Bio-oxidation-CIL cyanidation gold recoveries tallied 90-94% with only 25% total oxidation of sulfides. According to Novagold this may indicate potential to integrate low-cost bulk processing of the material grading 1.5-to-3.5 grams gold per tonne, dramatically increasing the economics of the project.

Earlier this year, the California-based company agreed to acquire a 70% interest in the multi-million-ounce deposit from Placer. NovaGold agreed to pay US$12 million over 10 years for the 109-sq.-km property. Placer can retain a 30% interest or dilute to a net profits interest. It also retains a back-in right to regain control of the property.

Mineralization, which stretches over 6 km, is structurally controlled and related to an intrusive. Gold occurs within dykes and sills, as well as in high-grade stockwork veins in the surrounding sedimentary rocks.

The high-grade resource stands at 33.5 million tonnes grading 5.1 grams gold per tonne, equivalent to 5.5 million oz., based on a 3.5-gram cutoff. Nearly 60% of the resource falls within the measured and indicated category, with the remainder in the inferred category.

A first phase of delineation and offset drilling comprising 15,000 metres of drilling is anticipated to begin in late August. Detailed engineering and pre-feasibility studies are expected to follow in early 2002.

Although Donlin Creek contains significant gold, its remote location, 500 km west of Anchorage, is problematic. All men and materials must be flown in or brought by barge up the Kuskokwim River.