MINING NEWS: NovaGold reviews Donlin drill results

152,000 feet of drilling confirm Donlin Creek as world-class deposit; mineralization runs deeper than previously suspected

Shane Lasley

Mining News

NovaGold Resources reported results Dec. 18 from 152,000 meters of drilling completed in 2006 and 2007 at the Donlin Creek gold deposit in western Alaska. The exploration averaged 67 meters of mineralization per hole, grading 3.61 grams, or 1.273 ounces, of gold per metric ton.

The Vancouver, B.C.-based junior mining company said it expects much of the inferred resources at the project to be converted to measured and indicated resources and included in a new resource estimate expected in the first half of 2008.

The 82,000 meters and 70,000 meters drilled in 2006 and 2007, respectively, were managed by NovaGold’s 50-50 Donlin Creek joint-venture partner Barrick Gold Corp. and were focused primarily on in-fill drilling to complete a feasibility study for the project. The assay results from the 2006 and 2007 drilling averaged 67 meters of mineralization per hole at 3.61 grams, or about 1.27 ounces of gold per metric ton.

“Few ore bodies of this size and quality exist in the world,” said Rick Van Nieuwenhuyse, president and CEO of NovaGold, “and these drill results further confirm the potential of the Donlin Creek project. We look forward to advancing this world-class gold project to production under our new 50-50 agreement with Barrick.”

Drill hole DH-1144, drilled early in 2006, at the East Acma target area intersected 198 meters of mineralization at 3.65 g/t, or 1.29 ounces per metric ton, of gold and extended well beyond the current pit limit depth. Follow-up drilling at East Acma in 2007 encountered the two best intersects ever encountered at Donlin. DH-1556 intersected 299 meters of mineralization at 5.26 g/t, or 1.86 oz/t, of gold. DH-1564 was drilled in the same area and intersected 308 meters of mineralization averaging 4.60 g/t, or 1.62 oz/t of gold.

Deeper drilling at Acma and Lewis also showed that mineralization runs up to 260 meters deeper than previously thought.

NovaGold also said the Donlin Creek deposit appears to be open to expansion both laterally and at depth.

Over the next few weeks, technical teams from NovaGold and partner Barrick Gold Corp. will work to assess the project’s manpower requirements and develop a detailed project schedule and work plan for mine planning activities, NovaGold said.

In addition, the teams will review the geologic and gold grade models in detail to prepare the new resource estimate.