NovaGold drilling hits new zones at Galore Creek

Vancouver – Targeting of new areas on the Galore Creek copper-gold-silver project has given NovaGold Resources (NG-T) exceptionally high, bonanza-grade copper-silver values in drill intercepts.

The first round of drill testing on West Fork and Junction, new zones at Galore Creek, cut significant near surface zones of copper and silver mineralization.At the West Fork zone, about 700 metres south of the Southwest deposit, results from this latest drilling include:

• Hole GC04-479 A near surface intersection of 11.3 metres (from 27.4 metres) averaged 16.9% copper and 76.5 grams silver per tonne, including a 5.2 metre section grading 27.3% copper and 163 grams silver, gold assays are pending.

The West Fork zone that was intersected in the drilling contained semi-massive to massive bornite, chalcopyrite and magnetite mineralization.

Three holes (two fanned from one collar and a 50 metre step-out) have so far been drilled on the high-grade, near surface target, all of which hit the mineralized zone.

Additionally, a second, flat-lying zone of copper mineralization was encountered at depth, beneath the near-surface high-grade zone. This deeper zone consists of disseminated bornite and chalcopyrite and averages about 50 metres in thickness and is presently 500 metres by 300 metres, remaining laterally open in all directions.

The other new target tested in this latest drill campaign is the Junction zone, situated about 1.2 km. west of the main Central Deposit at Galore Creek. Some historic drilling had tested this target, outlining a mineralized zone of 1 km. by 500 metres. NovaGold punched five holes on Junction with results so far received only from the initial hole:

• Hole GC04-465 The core hole intersected three mineralized intervals, a 24.4 metre section (from 36.6 metres) cut 0.69% copper, 0.3 grams gold and 5.4 grams silver, followed by a 53 metre interval (from 94.5 metres) grading 1.2% copper, 0.26 grams gold and 8.8 grams silver, with a third zone of 56.6 metres (from 155.6 metres) averaging 2.2% copper, 1.66 grams gold and 20 grams silver.

The three mineralized intervals give a composite 133.7 metres of 1.6% copper, 0.9 grams gold and 12.9 grams silver.

These latest high-grade intercepts coupled with previously announced intersections from the Copper Canyon and Gap zones (TNM, August 27/04) gives NovaGold optimism on significantly expanding its high-grade resource at Galore Creek. None of these newly encountered mineralized zones have been factored in the recent resource calculation for the Preliminary Economic Assessment. Future addition of this material could considerably enhance the project economics.

Novagold reports 62.8 million shares outstanding and the issue has seen trading values rising up to the $8.00-$8.25 per share range.