Novagold tags best hole yet

Vancouver — Impressive drill results keep pouring in from the Acma target on the 13-million-oz. Donlin Creek gold deposit in southwestern Alaska.

The latest assays tabled by Novagold Resources (NRI-T) include the hole 597, which returned 120 metres grading 7.6 grams gold per tonne from 8 metres down-hole. To date, the junior has completed 25 infill holes into the high-grade zone previously drilled by Placer Dome (PDG-T). Collared 25-to-50 metres apart, the results for the first 13 holes are in. The latest holes continue to show that the mineralization remains open to the east, south and west. Further highlights from the drilling include:

• Hole 590 — 12.3 metres grading 5.2 grams gold per tonne from 10.9 metres down-hole,
• Hole 591 — 10 metres grading 8.2 grams gold from 12 metres down-hole,
• Hole 593 — 28 metres grading 5.9 grams gold from 66 metres down-hole,
• Hole 594 — 8 metres grading 3.9 grams gold from 58 metres down-hole,
• Hole 595 — 22 metres grading 7.6 grams gold from 28 metres down-hole and 48 metres grading 6.9 grams gold from 106 metres down-hole,
• Hole 596 — 28 metres grading 7.9 grams gold from 2.3 metres down-hole.

Situated 480 km west of Anchorage, Donlin Creek hosts measured and indicated resources of 70.1 million tonnes grading 3.06 grams gold per tonne. The estimate is based on a cutoff grade of 1.5 grams gold and excludes 66.2 million tonnes, averaging 2.83 grams gold, that are classified as an inferred resource. Based on the low price of gold, the current drill program is focussing on a higher-grade core of 18.8 million tonnes grading 5.2 grams gold. This portion is based on cutoff grade of 3.5 grams gold.

Most of Donlin Creek’s resources are hosted by intrusive dykes and sills, plus high-grade stockworks in surrounding sedimentary rocks. Gold mineralization is structurally controlled and occurs as disseminations and veinlets in association with fine-grained arsenopyrite.

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

The Donlin Creek property covers 109 sq. km of private patented land under lease from the regional and village corporations of the lower Kuskokwim region. Novagold must spend US$12 million over 10 years to earn a 70% stake in that ground.