NovaGold receives encouraging Donlin Creek results
NovaGold Resources Inc (2) NRI
Shares issued 23,561,158 Oct 16 close $1.70
Wed 17 Oct 2001 News Release
Mr. Rick Van Nieuwenhuyse reports
NovaGold Resources has reported on the continued success of the continuing
drilling at the Donlin Creek gold deposit in Alaska.
Highlights
All 25 drill holes have intersected significant intervals of ore-grade gold
mineralization. Hole DC01-607 intersected the widest zone of high-grade to
date with 69 metres (226 feet) grading 14.2 (g/t) grams per tonne (0.41
ounce per ton) including 24.4 metres (80 feet) grading 30.4 g/t (0.89 ounce
per ton). Within this interval an 8.4-metre (27.6 feet) intersection ran
58.0 g/t (1.69 ounces per ton) with the lowest grade sample in that
interval returning 29.2 g/t (0.85 ounce per ton) and the highest returning
91.1 g/t (2.66 ounces per ton).
Results from the 2001 drilling program to date average 17.2 metres (56.2
feet) grading 6.9 g/t (0.20 ounce per ton) gold in 64 intersections. These
results indicate that NovaGold is on target to exceed the objective to
define a higher quality resource of +5 million ounces of gold with grades
of +5 g/t (0.15 ounce per ton) at Donlin Creek.
Drilling continues at Donlin with the goal to expand the higher grade
zones. Additional assay results will follow in the weeks ahead.
A top-tier engineering firm soon to be chosen to complete an economic
scoping study and new resource estimate for the higher grade portion of the
Donlin Creek deposit.
A prefeasibility study anticipated to begin in the spring of 2002.
Excellent results continue -- higher grade zones expanded and resource
quality upgraded
The company is extremely encouraged by the results of its offset and infill
drilling at Donlin Creek. The results continue to expand the higher grade
mineralization on the Acma target (see Table 1 below). NovaGold has drilled
37 holes totalling 6,100 metres (20,100 feet). Assay results from the first
25 drill holes on the Acma target have now been released, and all have
intercepted significant high-grade mineralization. These outstanding
results to date demonstrate the continuity and consistency of the higher
grade zones at Donlin.
The intersection from hole DC01-607 represents a down dip test of the wide
zones of ore-grade mineralization encountered in hole DC01-586 which
included 31.3 metres at 5.7 g/t (103 feet at 0.17 ounce per ton), 16 metres
at 6.3 g/t (52.5 feet at 0.18 ounce per ton) and 22 metres at 6.7 g/t (72.2
ft at 0.19 ounce per ton). These drill holes are the most western and most
southern holes in the Acma target. High-grade mineralization remains open
in that direction. The Acma zone also remains open to the east where holes
are planned to offset the high-grade zones encountered in hole DC01-600.
Of the 25 drill holes now released, 15 are offset holes that expand the
known higher grade mineralization beyond the current resource area. The
other 10 drill holes are infill holes that will upgrade inferred category
resources to the higher measured and indicated category resources.
Further resource expansion targeted
Excellent potential exists to continue to expand the higher grade Acma zone
down dip to the west and to the south and east between the two areas of
denser drilling. The remainder of the drill program at Acma will focus on
drill holes targeted to tie the western and eastern higher grade parts of
Acma together.
New drilling has also been initiated at the 400 target area located 500
metres to the north and west of the Acma target. High-level gold-in-soil
anomalies at the 400 target indicate the potential to define a new higher
grade resource area. One drill is now completing several step-out holes on
the 400 target area where a few very widely spaced drill holes with higher
grade intercepts have yet to be offset.
Economic scoping study and new higher grade resource estimate to be
completed
The company is reviewing a select group of independent engineering firms to
complete a comprehensive economic scoping study and new resource estimate
on the higher grade core zone of the Donlin Creek deposit. This will
further refine the economic operating parametres for the deposit.
Additional engineering studies are anticipated to be initiated as part of
the prefeasibility study to begin in the spring of 2002.
NovaGold's current in-house preliminary economic model for the higher grade
resource indicates unit operating costs of less than $22.00 (U.S.) per
tonne of ore may be achievable (including mining, ore treatment,
administration and reclamation). This would result in a total unit
operating cost of less than $150 (U.S.) per ounce of gold and a total cost
including capital investment of less than $195 (U.S.) per ounce of gold.
New drill results table
Weighted average of 64 drill intersections within 25 drill holes: 17.2
metres (56.2 feet) grading 6.9 g/t (0.20 ounce per ton) gold or $62 (U.S.)
per tonne at $280 (U.S.) per gold ounce.
TABLE 1
Donlin Creek
Drill Holes DC01-606 to DC01-609
Significant Intercepts
Interval Length Au
DHID (m) (m) g/t
DC01-606 0.0-15.6 15.6 3.8
DC01-607 41.7-47.0 5.3 11.0
And 72.0-141 69.0 14.2
Incl. 107.0-131.4 24.4 30.4
Incl. 123.0-131.4 8.4 58.0
And 151.0-157.0 6.0 4.7
DC01-608 21.8-28.7 6.8 4.5
And 41.1-50.4 9.3 8.1
And 181.5-185.5 4.0 7.0
And 198.9-208.8 9.9 4.9
DC01-609(a) 52.0-75.0 23.0 7.1
And 123.0-141.1 18.1 6.4
(a) Additional assays still pending.
Drill hole location maps, a representative cross section and a table of all
results to date are available on the projects section of NovaGold's Web
site at: novagold.net.
Sampling protocol
All of the reported mineralized intervals above are calculated using a 3.0
g/t cutoff grade. These higher grade zones occur within substantially wider
mineralized intervals using a 1.5 g/t cutoff grade.
The sampling protocol and quality control procedures are the same as those
established by Placer Dome Inc. on all previous drilling. The drill program
and sampling protocol are managed by NovaGold with oversight provided by
qualified person, Phil St. George, vice-president of exploration and
project manager for NovaGold Resources.
Donlin Creek gold resource estimate
The Donlin Creek gold deposit has the potential to define a gold resource
of over 13 million ounces of gold in the measured, indicated and inferred
categories using a 1.5 g/t cutoff grade. The current total potential higher
grade resource is 5.5 million ounces of gold grading 5.1 g/t at a 3.5 g/t
gold cutoff grade. This comprises a measured and indicated resource
estimated to contain 3.1 million ounces of gold grading 5.2 g/t with an
additional inferred resource of 2.4 million ounces grading 5.0 g/t gold.
These resources were estimated by Placer Dome in 2000 and do not include
results from the 2001 drill program.
Donlin Creek project summary
The Donlin Creek gold deposit is located in southwestern Alaska on 109
square kilometres (42 square miles) of private patented land. The project
is 19 kilometres (12 miles) north of a commercial barge site on the
Kuskokwim River in the village of Crooked Creek, Alaska. A State of Alaska
designated winter road connects the project to the barge site. The project
has an all-season exploration camp for up to 75 people with an adjacent
1,500-metre (5,000 feet) runway that is directly serviced by commercial
aircraft as large as the C-130 Hercules freighter.
NovaGold will earn a 70-per-cent interest in the deposit by expending
$10-million (U.S.) in exploration and development expenditures within 10
years. NovaGold currently intends to fast-track development of the project
and to complete these expenditures by the end of 2002 as part of the
prefeasibility and feasibility development work.
(c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com |
