Vancouver —
The measured and indicated resource has increased 92% to 4.4 million contained ounces, while the inferred resource has jumped 161% to 6.2 million contained ounces.
“Donlin Creek’s assay results from last year exceed our expectations,” says NovaGold President Richard Van Nieuwenhuyse. “The deposit remains open, and we’re confident we will continue to expand the resource.”
The updated figures are based on re-logging and three-dimensional modelling using 87,571 metres of core samples in 361 holes, 13,323 metres of reverse-circulation samples from 117 drill holes, and 21,337 metres of surface trench samples.
Based on a gold price of US$250 per oz. and a cutoff grade of 3.5 grams gold per tonne, the measured and indicated resource is pegged at 26.9 million tonnes grading 5.06 grams gold per tonne, whereas the inferred portion is 36.8 million tonnes grading 5.22 grams gold.
Using a gold price of US$300 per oz. and a cutoff of 2.5 grams gold, the measured and indicated resource jumps to 52.7 million tonnes grading 4.03 grams gold, or 6.8 million contained ounces, while the inferred resource expands to 66.9 million tonnes grading 4.2 grams gold, or 9 million oz.
At a gold price of US$350 per oz. and a cutoff of 1.5 grams gold, the measured and indicated resource works out to 104 million tonnes grading 3 grams gold, or 10 million contained ounces, and the inferred figure rises to 129 million tonnes grading 3.11 grams gold, or 12.9 million oz.
Last year, NovaGold expanded the extent of the known resource. Of the 42 holes completed, 26 were offset holes that expanded the high-grade mineralization. The other 16 holes were infill holes that upgraded the inferred resource category to the measured and indicated category.
The higher-grade gold mineralization remains open at both the Acma and Lewis targets. Follow-up drilling is planned for the spring.
Engineering work is attempting to determine operating costs and provide data for a preliminary feasibility study. Metallurgical tests include bench-scale grinding, flotation, pressure-oxidation and bio-oxidation. Carbon-in-leach (CIL) cyanidation recovery tests indicate that 95-98% of the gold is contained in the finer-grained arsenopyrite mineralization. Gold recoveries are pegged at 90-95% using a conventional sulphide flotation concentration followed by pressure oxidation of the concentrate and CIL cyanidation for gold recovery.
The project is 19 km north of a commercial barge site on the Kuskokwim River, near the village of Crooked Creek. A government winter road connects the project to the barge site.
NovaGold stands to earn a 70% interest in the deposit by spending US$10 million on exploration and development within 10 years. However, the junior intends to complete these expenditures by the end of 2002 as part of the preliminary feasibility study.
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