Partners work Donlin

Vancouver — A US$11-million exploration program is under way at the Donlin Creek gold project, near the community of Crooked Creek in southwestern Alaska.

The advanced project is held 70% by NovaGold Resources (NG-T) and 30% by Placer Dome (PDG-T). The gold giant can boost its interest to 70% by spending US$32 million on exploration, completing a bankable feasibility study, and deciding (on or before November 2007) to build a mine capable of producing at least 600,000 oz. gold annually.

At last report, Donlin Creek hosted a measured and indicated resource equivalent to 11 million oz. gold, plus 14.3 million oz. in the inferred category.

This year’s program will include at least 20,000 metres of drilling aimed at increasing and upgrading existing resources. Engineering studies are planned to bring capital and operating cost estimates to a prefeasibility level of confidence. Baseline environmental data are being gathered for permitting purposes.

Once this year’s program is complete, the data will be used to complete a prefeasibility study; environmental permit applications will then be made. The partners envision a daily mining rate of 30,000 tonnes, plus annual gold production of at least 1 million oz.

The proposed mine is 19 km north of a commercial barge site on the Kuskokwim River, on land leased from two native corporations.

Donlin Creek is one of several large gold deposits being explored in Alaska’s Kuskokwim mineral belt, the arcuate extension of the prospective Tintina gold belt that stretches across eastern Alaska into neighbouring Yukon.

In addition to its flagship Donlin Creek project, NovaGold has other projects in Alaska, including the Ambler deposit, 180 miles from the producing Red Dog zinc mine, and three development-stage gold projects near Nome.

The company also has rights to earn 80% of the Galore Creek project in northwestern British Columbia. Galore Creek is one of the largest undeveloped gold-copper deposits in North America.