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Gold/Mining/Energy : NOVAGOLD RESOURCES INC. (TSE:NRI; OTC BB: NVGLF) -- Ignore unavailable to you. Want to Upgrade?

To: AH who wrote (6)	11/7/2001 10:52:07 PM
From: AH	Read Replies (1) \| Respond to of 137

NovaGold receives additional Donlin Acma assay results NovaGold Resources Inc (2) NRI Shares issued 23,561,158 Nov 6 close $1.83 Wed 7 Nov 2001 News Release Mr. Rick Van Nieuwenhuyse reports NovaGold Resources has released the continued successful results from the Donlin Creek gold deposit in Alaska. Highlights include: assay results received for seven additional drill holes from the 2001 Donlin Creek drill program in Alaska. Drill hole DC01-615 intersected 28.4 metres (93.1 feet) grading 6.1 grams per tonne (0.21 ounces per ton) and hole DC01-619 intersected 22 metres (72.2 feet) grading 10.7 g/t (0.31 of an ounce per ton); weighted average of 88 drill intersections within 35 drill holes from the 2001 first phase drill program is 17.4 metres (57 feet) grading 6.7 g/t (0.2 of an ounce per ton) gold; and AMEC/MRDI and NovaGold have begun work on a comprehensive economic scoping study and updated resource estimate for the higher-grade portion of the Donlin Creek deposit. Improving resource quality and expanding higher-grade zones The company is extremely encouraged with the results from the first 35 offset and infill drill holes at Donlin Creek. The results have expanded the higher-grade mineralization on the Acma target and show potential for other nearby targets like the 400 Zone that have only been tested by limited wide-spaced drill holes. NovaGold has drilled 42 holes totalling 7,300 metres (24,000 feet). Results are still pending on the final six drill holes. The intersections from holes DC01-615, DC01-617 and DC01-619 represent a significant down-dip extension of the higher-grade Acma zone to the southwest where the mineralization remains open. An extensive area to the southwest below alluvial cover remains untested, as does the area between the Acma target and the 400 Zone. These open areas will be tested during the spring 2002 prefeasibility drill program to determine the ultimate pit boundaries. The results from the initial drilling at the nearby 400 Zone located 500 metres west of Acma have also been very encouraging. The six drill holes at the 400 Zone all intersected promising near-surface gold mineralization. Hole DC01-620 intersected 20.4 metres grading 4.9 g/t (66.8 feet at 0.14 of an ounce per ton). This hole was a down-dip test of the mineralization in DC01-610 that intersected 26.2 metres 5.5 g/t (86.1 feet at 0.16 of an ounce per ton). The holes were targeted on high-level gold in soils and demonstrate the potential to develop new higher-grade resources outside of the Acma zone. Of the 42 drill holes completed in the 2001 program, 26 are offset holes that expand the known higher-grade mineralization beyond the current resource area. The other 16 drill holes are infill holes that will upgrade inferred category resources to the higher measured and indicated category resources. Final assay results from the remaining six drill holes will be reported over the next two to three weeks as they become available. New higher-grade resource estimate and economic scoping study in progress AMEC/MRDI personnel have joined the NovaGold technical team on site to review the geologic model, and begin the quality assurance and quality control phase of the resource evaluation. Integration of the final assay results and geologic data into a revised 3-D geologic model will proceed over the next few of months. This new 3-D geologic model will provide the framework for the updated higher-grade resource estimate and economic scoping study. NovaGold's current in-house preliminary economic model for the higher-grade resource indicates unit operating costs of less than $22 (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 88 drill intersections within 35 drill holes: 17.4 metres (57 feet) grading 6.7 g/t (0.2 of an ounce per ton) gold or $60 (U.S.) per tonne at $280 (U.S.) per gold ounce. DONLIN CREEK DRILL HOLES SIGNIFICANT INTERCEPTS HOLES DC01-613 TO DC01-620 Interval Length Gold Target (m) (m) (g/t) area DC01-613 5.0-57.0 52.0 6.1 Acma and 153.0-162.0 9.0 4.2 and 214.0-222.0 8.1 7.1 DC01-614 15.5-18.7 3.2 6.6 400 Zone DC01-615 62.9-68.0 5.1 15.7 Acma and 104.0-132.4 28.4 7.1 DC01-617 60.0-69.2 9.2 3.3 Acma and 100.0-145.8 45.8 4.2 incl. 132.0-145.8 13.8 8.2 DC01-618 26.0-36.0 10.0 5.1 400 Zone DC01-619* 26.0-34.4 8.4 6.6 Acma and 97.5-119.5 22.0 10.7 DC01-620 18.7-39.0 20.4 4.9 400 Zone *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 www.novagold.net/s/Projects.asp?PropertyInfoID=880. Sampling protocol All of the reported mineralized intervals above are calculated using a three-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 including the use of standards and check assays are the same as those established by Placer Dome 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 consists of 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 five g/t gold. These resources were estimated by Placer Dome in 2000 and do not include results from the 2001 drill program. Metallurgical testwork and mineralogical examination demonstrate that gold recoveries in excess of 90 per cent are achievable from representative intrusive and sedimentary ore-grade material. 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-foot) 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