Novagold tags the high grade at Donlin (September 18, 2001)

Vancouver — The first five holes in an on going drill program by Novagold Resources (NRI-T) have confirmed the high-grade nature of the Acma target on the 13-million-oz. Donlin Creek gold deposit in southwestern Alaska.

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.

Owing to the historically low gold price, 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.

The first five holes were spaced at 25-to-50 metre apart and all returned significant values. Highlights include:

• Hole 585 — 82.1 metres grading 3.4 grams gold from 11.9 metres down-hole and 26 metres grading 6.7 grams gold from 196 metres down-hole,
• Hole 586 — 107.3 metres grading 3.8 grams gold from 52.7 metres down-hole and 22 metres grading 6.7 grams gold from 244 metres down-hole,
• Hole 587 — 125.6 metres grading 4.9 grams gold from 46 metres down-hole and 24 metres grading 9.2 grams gold from 126 metres down-hole,
• Hole 588 — 10 metres grading 3.1 grams gold from 26 metres down-hole and 42 metres grading 1.8 grams gold from 62 metres down-hole,
• Hole 589 — 4 metres grading 8.5 grams gold from 23 metres down-hole and 36 metres grading 3.8 grams gold from 61 metres down-hole.

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.