NovaGold Finishes 2002 Drilling at Donlin.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 11, 2002 Novagold Resources NovaGold Resources Inc. (TSX: NG, (AMEX:NG)) is a leading exploration and development company with three of the world’s largest undeveloped gold and copper deposits located in Alaska and Western Canada. These projects include the 28. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :NVGLF)(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :NRI NRI Nomura Research Institute (Tokyo, Japan) NRI Non-Resident Indian NRI Natural Resources Institute NRI National Resources Inventory NRI Networked Readiness Index NRI Natural Resources Inventory NRI National Research Institute ): Highlights -- NovaGold has received a certificate of title from Placer Dome for the assignment of a 70% interest in the Donlin Creek exploration and mining lease agreement. Placer Dome will make an option decision on the project by mid-February. NovaGold and Placer Dome are jointly funding the current program during the decision period. -- Follow-up core results continue to intercept high-grade gold mineralization south and east of the Acma deposit and south of the Aurora and 400 Zones. A final comprehensive resource estimate will be completed jointly with Placer Dome in February or March upon receipt of the final assays from this season's drill program. -- Optimization metallurgical testwork is now underway with Hazen Labs and Newmont Mining Corporation's Metallurgical Services. Initial flotation optimization studies demonstrate improved recoveries using Newmont's patented N2TEC technology. NovaGold Receives Title to 70% Interest in the Donlin Creek Project NovaGold has received an assignment of title from Placer Dome Placer Dome was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada. Barrick has acquired 100% of the Placer Dome shares on January 20, 2006, and has integrated the company into its own. for a 70% interest in the Donlin Creek exploration and mining lease agreements with the underlying property owners Calista Corporation Calista Corporation (dʒɑlɪstɑ) is one of thirteen Alaska Native Regional Corporations created under the Alaska Native Claims Settlement Act of 1971 (ANCSA) in settlement of aboriginal land claims. Calista was incorporated in Alaska on June 12, 1972. and the Kuskokwim Corporation. NovaGold earned its 70% interest in the deposit by investing US$10 million in exploration and development of the Donlin Creek Project over the past 15 months. Placer Dome now has until mid-February 2003 to determine its future level of participation in the project (see previous NovaGold news release on November 26th 2002). Under any of the option scenarios, NovaGold shareholders should see considerable added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
2002 Drill Program Completed, Comprehensive Resource Estimate in Progress The last of the delineation core drilling at Donlin Creek has been completed for the 2002 drill program. The in-fill drilling to upgrade the new resource areas continues to return excellent results. The gold mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. intercepted during the fall program should add significant additional resource ounces to the previously released interim resource update. The drilling should also upgrade a significant portion of the new high-grade gold mineralization at the Akivik, Aurora Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. , 400, Acma and South Acma zones to the Measured and Indicated resource categories. Following the receipt of the final drill assay results in January a comprehensive resource estimate will be completed jointly with Placer Dome in February or March of 2003. Current results include very strong holes from the South Acma area including DC02-869 that intersected 5 significant zones including 19.9 meters grading 6.73 g/t, and DC02-870 with 4 significant zones including 62.0 meters grading 6.76 g/t gold. Results from the East Acma area included DR02-837 with 12.2 meters grading 6.75 g/t, DC02-878 with 16.3 meters grading 13.31 g/t, DC02-881 with 17.2 meters grading 6.21 g/t and DC02-882 with 31.4 meters grading 5.42 g/t gold. The results from both South and East Acma have significantly extended the known mineralization to depth and along the length of the system. During the 2002 program, NovaGold completed 347 drill holes (195 core holes and 152 rotary holes) for a total of 51,009 meters (167,352 feet). This includes 39,158 meters (128,472 feet) of core drilling and 11,851 meters (38,880 feet) of rotary drilling in 2002.
New Donlin Creek Summary Drill Results and Sample Protocol
DHID Interval Length Gold Length Gold Type Area
(m) (m) (g/t) (ft) (oz/t)
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DR02-837 70.1 to 82.3 12.2 6.75 40.0 0.20 rotary East Acma
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DC02-869 106.1 to 126.0 19.9 6.73 65.3 0.20 Core South Acma
179.0 to 194.0 15.0 4.08 49.2 0.12 Core
211.7 to 250.0 38.3 3.92 125.6 0.11 Core
256.0 to 263.6 7.6 4.07 24.9 0.12 Core
286.8 to 329.6 42.8 3.83 140.5 0.11 Core
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DC02-870 74.0 to 80.1 6.1 6.40 20.1 0.19 Core South Acma
181.3 to 254.0 72.7 2.94 238.5 0.09 Core
296.0 to 358.0 62.0 6.76 203.4 0.20 Core
386.0 to 406.0 20.0 5.32 65.6 0.16 Core
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DC02-872 238.0 to 246.0 8.0 4.39 26.3 0.13 Core South Acma
254.0 to 260.0 6.0 4.85 19.7 0.14 Core
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DC02-874 10.0 to 16.0 6.0 3.33 19.7 0.10 Core East Acma
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DC02-875 377.0 to 405.7 28.7 4.89 94.2 0.14 Core South
Aurora
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DC02-878(a)52.0 to 56.0 4.0 5.64 13.1 0.16 Core East Acma
155.8 to 172.0 16.3 13.31 53.3 0.39 Core
218.0 to 226.4 8.4 3.96 27.7 0.12 Core
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DC02-879 6.5 to 9.0 2.5 5.84 8.2 0.17 Core South 400
46.0 to 48.0 2.0 6.91 6.6 0.20 Core
95.0 to 107.0 12.0 3.19 39.4 0.09 Core
183.0 to 189.0 6.0 4.99 19.7 0.15 Core
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DC02-881(a)104.0 to 121.2 17.2 6.21 56.43 0.18 Core East Acma
134.4 to 138.0 3.6 4.32 11.81 0.13 Core
164.0 to 168.0 4.0 10.32 13.12 0.30 Core
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DC02-882 85.5 to 116.9 31.4 5.42 103.02 0.16 Core East Acma
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DC02-887(a) 27.5 to 30.1 2.6 7.28 8.56 0.21 Core North of
Acma
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DC02-888(a) 14.9 to 19.0 4.1 5.08 13.29 0.15 Core North of
Acma
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DC02-889(a) 69.0 to 71.0 2.0 9.46 6.56 0.28 Core North of
Acma
83.9 to 88.6 4.7 11.11 15.35 0.32 Core
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DC02-890 61.5 to 73.0 11.5 3.17 37.83 0.09 Core North
Aurora
104.0 to 108.1 4.1 3.61 13.29 0.11 Core
153.0 to 155.0 2.0 9.63 6.56 0.28 Core
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DC02-891(a) 57.6 to 61.0 3.4 4.27 11.09 0.12 Core North
Aurora
114.0 to 115.2 1.2 31.85 3.94 0.93 Core
125.0 to 128.0 3.0 3.84 9.84 0.11 Core
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DC02-892(a) 40.2 to 47.0 6.8 3.13 22.18 0.09 Core North
Aurora
50.0 to 54.0 4.0 6.53 13.12 0.19 Core
137.0 to 149.0 12.0 3.55 39.37 0.10 Core
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DC02-893 107.7 to 115.0 7.3 2.95 23.85 0.09 Core North
Aurora
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The drill program and sampling protocol are managed by NovaGold with oversight provided by Phil St. George, Vice President of Exploration and Project Manager for NovaGold Resources. Database quality control and quality assurance standards are overseen by independent engineering firm AMEC AMEC African Methodist Episcopal Church AMEC Agent Mediated Electronic Commerce AMEC Arctic Military Environmental Cooperation AMEC Advanced Micro-Fabrication Equipment Inc AMEC Association of Media Evaluation Companies E&C Services Limited of Vancouver. All drill samples were analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. by fire assay at ALS Als (äls), Ger. Alsen, island, 121 sq mi (313 sq km), Sønderjylland co., S Denmark, in the Lille Bælt, separated from the mainland by the narrow Alensund. Chemex Labs in Vancouver, B.C., Canada. Drill holes marked with an 'a' (a) indicate some final assays are still pending. Drill hole location maps showing the Donlin Creek target areas are available for download on the NovaGold website at the following link: http://www.novagold.net/s/Projects.asp?PropertyInfoID=880 Optimizing Metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. Studies in Progress, Excellent Initial Results Received Since 1996 a series of comprehensive metallurgical test programs have been completed on the Donlin Creek deposit by Placer Dome Technical Services and several independent laboratories. These programs have demonstrated that gold recoveries in excess of 90% are achievable using conventional sulfide sulfide, chemical compound containing sulfur and one other element or sulfur and a radical. Sulfides may be salts or esters of hydrogen sulfide, H2S, or may be formed directly, e.g., by heating a metal with sulfur. flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. concentration followed by oxidation oxidation /ox·i·da·tion/ (ok?si-da´shun) the act of oxidizing or state of being oxidized.ox·idative ox·i·da·tion n. 1. The combination of a substance with oxygen. 2. of the concentrate and cyanidation for gold recovery. These metallurgical studies have included bench-scale grinding grinding, process by which surface material is removed from an object, usually metal, by the abrasive action of a rotating wheel or a moving belt that contains abrasive grains. , flotation, pressure oxidation, bio-oxidation and carbon-in-leach (CIL (Common Intermediate Language) The ECMA version of the Microsoft Intermediate Language (MSIL). See CLI. 1. (project) CIL - Component Integration Laboratories. 2. (language) CIL - Common Intermediate Language. ) cyanidation recovery. As part of the independent Preliminary Economic Assessment Study released March 2002, AMEC E&C Services Limited of Vancouver reviewed the previous metallurgical programs and identified a number of opportunities to enhance the overall gold recoveries through process optimization Process optimization is the practice of making changes or adjustments to a process, to get results. Optimization is the use of specific techniques to determine the most cost effective and efficient solution to a problem or design for a process. . These include optimizing the grind 1. GRIND - GRaphical INterpretive Display. A graphics input language for the PDP-9. ["GRIND: A Language and Translator for Computer Graphics", A.P. Conn, Dartmouth, June 1969]. 2. size, flotation recovery, and leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. recovering processes - particularly for the sediment hosted mineralization. Based on the recommendations by AMEC, NovaGold has engaged Hazen Labs and Newmont Mining Newmont Mining Corporation NYSE: NEM, based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in, Nevada, Indonesia, Australia/New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Corporation's Metallurgical Services both of Denver, Colorado to complete a series of additional metallurgical studies to look at process optimization. These programs will consist of additional ore characterization and refinement of bench-scale batch flotation and pressure oxidation and cyanidation test work. The results of these tests will define the recovery projections and process flow-sheet for the Pre-Feasibility Study and for subsequent continuous pilot-plant work in the Feasibility stage. Initial results from Newmont Metallurgical Services, using their patented N2TEC flotation process flotation process, in mineral treatment and mining, process for concentrating the metal-bearing mineral in an ore. Crude ore is ground to a fine powder and mixed with water, frothing reagents, and collecting reagents. are very encouraging with recoveries from intrusive material averaging 96% and sediment hosted ore averaging 90%. These flotation recoveries confirm the results of previous studies by Placer Dome and represent an improvement over the average figures used in the March 2002 Preliminary Economic Assessment Study. Hazen Labs is currently completing other flotation optimization studies in parallel with the work being completed by Newmont. The results of these studies will be evaluated in January to develop an optimal process flow-sheet and recoveries to be used in the Pre-Feasibility Study due mid-year. About NovaGold A diversified natural resource company, NovaGold acquires and develops precious metal deposits in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . NovaGold has over $20 million in cash, no debt, and one of the largest unhedged gold resource bases of any gold exploration company. The Company generates cash flow to fund exploration and development from its construction aggregate, gold royalties and land development operations in Nome, Alaska Nome is a city located on the southern Seward Peninsula coast of Norton Sound in the Nome Census Area of the U.S. state of Alaska. According to 2005 Census Bureau estimates, the city population was 3,590. . Shares of NovaGold are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (symbol NRI). The Company's shares also trade on the US OTC Market Noun 1. OTC market - a stock exchange where securities transactions are made via telephone and computer rather than on the floor of an exchange over-the-counter market (symbol NVGLF). Annual and quarterly financial reports, news releases and other information are available online at: www.novagold.net . |
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