NOVAGOLD RESOURCES INC. (TSX:NG)(NYSE MKT:NG) announced the results
of a 27,873-meter resource in-fill and geotechnical drilling
program conducted during 2012 on its 50%-owned Galore Creek
project, a large copper-gold-silver project located in the
Territory of the Tahltan Nation in northwestern British Columbia,
Canada. The Galore Creek property is held by a partnership in which
NOVAGOLD and Teck Resources Inc. ("Teck") each own a 50% interest.
NOVAGOLD published the Galore Creek Pre-Feasibility study (PFS) on
July 27, 2011. The 2012 in-fill drilling campaign not only
confirmed previously reported drill results but, more importantly,
demonstrated the potential for substantial extension of the
mineralized area beyond the limits of the current PFS pit.
Additionally, Galore Creek Mining Company (GCMC), operator of the
project, made a new discovery called the Legacy zone, a 700-meter
long mineralized zone, as currently defined by drilling, that
remains open in all directions and is located adjacent to the
Central Pit.
The objectives of the 2012 drill program were to:
1. Upgrade Inferred resources to Measured and Indicated classification;
2. Obtain geotechnical data to support future mine planning and
engineering; and
3. Support preparation of a new resource estimate for feasibility-level
mine planning and design.
GCMC completed 4,580 meters of geotechnical, hydrogeological,
and overburden drilling to support future mine planning and
engineering. In addition, a series of resource in-fill holes,
totaling 23,293 meters, were completed within the Central Pit.
Highlights include:
-- Discovery of the new Legacy zone; which includes the following
intercepts:
GC12-0849 intersected 86 meters grading 1.31% copper, 0.46 g/t gold and
6.0g/t silver
GC12-0886 intersected 245 meters grading 0.83% copper, 0.15 g/t gold and
7.2 g/t silver
GC12-0877 intersected 101 meters grading 1.01% copper, 0.39 g/t gold and
5.6 g/t silver
GC12-0845 intersected 229 meters grading 0.55% copper, 0.17 g/t gold and
7.2 g/t silver
-- Multiple significant intersections from the Central Pit (including
Bountiful zone) resource in-fill program:
GC12-0847 intersected 122 meters grading 1.02% copper, 0.28 g/t gold and
9.1 g/t silver
GC12-0842 intersected 207 meters grading 0.84% copper, 0.21g/t gold and
9.3 g/t silver
GC12-0838 intersected 193 meters grading 0.59% copper, 0.18 g/t gold and
5.8 g/t silver
"Last year's exploration program yielded excellent drill results
with impressive widths and gold grades which have extended the
mineralization well beyond the current pit," said Greg Lang,
NOVAGOLD's President and Chief Executive Officer. "More
importantly, 2012 drilling at Galore Creek led to the discovery of
the new Legacy zone located in close proximity to the projected
pit. With these positive drill results, we are now well positioned
to update our reserves and resources and further improve the
overall economics of this project as we pursue the sale of our
share of this exceptional asset. If developed as envisioned in the
PFS, Galore Creek is expected to become the largest and lowest-cost
copper mine in Canada, one of the last geo-politically safe
jurisdictions where copper miners can build new mines. This factor
is particularly important considering the critical challenges
copper miners face today in jurisdictions such as the Democratic
Republic of Congo, Indonesia, Argentina, Mongolia and Peru."
The Galore Creek PFS outlined a large-scale open-pit mine with a
conventional 95,000-tonne-per-day milling and concentrating
facility. The PFS was based on Proven and Probable mineral reserves
totaling 528 million tonnes grading 0.59% copper, 0.32 grams per
tonne gold and 6.02 grams per tonne silver. Measured and Indicated
mineral resources, exclusive of reserves totaled 287 million tonnes
grading 0.33% copper, 0.27 grams per tonnes gold and 3.64 grams per
tonne silver and Inferred mineral resources totaled 347 million
tonnes grading 0.42% copper, 0.24 grams per tonne gold, and 4.28
grams per tonne silver. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. The 2011 PFS,
evaluated on a 100% basis, yielded a Net Present Value ("NPV7%") of
$837 million and $137 million on a pre-tax and post-tax basis,
respectively using the base case metal price assumptions of
US$2.65/lb copper, US$1,100/oz gold and US$18.50/oz silver and
exchange rates of US$0.91 = Cdn$1.00. In the current commodity
price environment, assuming US$3.50/lb copper, US$1,600/oz gold and
US$30.00/oz silver and keeping the exchange rate the same as in the
PFS, the NPV7% of Galore Creek would be assessed at $4,145 million
and $2,383 million on a pre-tax and post-tax basis,
respectively.
During 2012, a total of 46 resource in-fill drill holes totaling
23,293 meters were completed as part of the program and the Company
received all assay results. Thirty-one drill holes encountered 59
high-grade mineralized intervals with the significant intercepts
shown in Table 1 below. Drilling in 2012 supports the extension of,
and defines the northern limits of copper mineralization in the
Bountiful Zone (see Figure 1 below). Mineralization remains open at
depth within and adjacent to the Central Pit. Four drill holes were
abandoned prior to reaching their target depth.
The newly discovered Legacy zone, a 700-meter long mineralized
zone, currently open in all directions and located approximately
300 meters north east of Bountiful and adjacent to the Central Pit,
will be the focus of a 10,000 meter exploration drill program in
2013. NOVAGOLD's 50% share of Galore Creek's 2013 budget is $8
million which includes updating the resource model with the latest
2012 drill results; as well as drilling to further define the
extent of the Legacy mineralization, and assess its impact on
future mine design.
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/ng225i.pdf.
Galore Creek model showing pit shapes, drill holes and changes
to wireframes defining mineralization based on 2012 drilling.
Table 1: Galore Creek Significant Drill Intervals
Hole ID From (m) To (m) Al (m) Cu % Au g/t Ag g/t Area
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0837 7.36 57.20 49.84 0.73 0.10 7.6 Legacy
GC12-0837 201.00 240.00 39.00 0.36 0.05 5.5 Legacy
GC12-0837 260.00 304.00 44.00 0.36 0.06 6.7 Legacy
GC12-0845 128.00 357.00 229.00 0.55 0.17 7.2 Legacy
GC12-0845 453.00 513.00 60.00 0.59 0.14 5.1 Legacy
GC12-0845 525.00 551.00 26.00 0.73 0.23 6.2 Legacy
GC12-0849 39.00 74.00 35.00 0.64 0.24 7.6 Legacy
GC12-0849 100.00 163.00 63.00 0.44 0.12 9.1 Legacy
GC12-0849 269.00 355.50 86.50 1.31 0.46 6.0 Legacy
GC12-0854 92.00 162.80 70.80 0.58 0.31 6.4 Legacy
GC12-0858 261.50 377.00 115.50 0.44 0.12 6.1 Legacy
GC12-0877 143.00 173.00 30.00 0.53 0.24 6.4 Legacy
GC12-0877 184.00 280.00 96.00 0.90 0.20 6.8 Legacy
GC12-0877 344.00 445.00 101.00 1.01 0.39 5.6 Legacy
GC12-0882 181.50 270.00 88.50 0.61 0.11 6.6 Legacy
GC12-0884 221.00 318.00 97.00 0.70 0.16 6.4 Legacy
GC12-0884 467.00 518.00 51.00 1.06 0.43 7.6 Legacy
GC12-0886 323.00 568.00 245.00 0.83 0.15 7.2 Legacy
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0838 322.00 515.16 193.16 0.59 0.18 5.8 Bountiful
GC12-0838 550.42 606.04 55.62 0.42 0.09 5.9 Bountiful
GC12-0839 76.00 101.50 25.50 0.64 0.20 3.7 Bountiful
GC12-0839 143.00 187.00 44.00 0.47 0.22 4.0 Bountiful
GC12-0839 254.50 316.00 61.50 0.94 0.38 7.8 Bountiful
GC12-0843 56.00 134.00 78.00 0.35 0.07 5.3 Bountiful
GC12-0843 299.00 354.00 55.00 0.55 0.09 5.5 Bountiful
GC12-0843 452.00 480.00 28.00 0.60 0.14 6.4 Bountiful
GC12-0844 363.00 383.63 20.63 0.52 0.10 6.3 Bountiful
GC12-0844 453.90 489.00 35.10 0.81 0.30 12.3 Bountiful
GC12-0847 339.70 462.00 122.30 1.02 0.28 9.1 Bountiful
GC12-0847 528.50 685.70 157.20 0.42 0.23 4.7 Bountiful
GC12-0847 698.90 734.30 35.40 0.51 0.13 5.3 Bountiful
GC12-0851 28.10 79.00 50.90 2.40 0.17 14.3 Bountiful
GC12-0851 91.00 162.00 71.00 1.37 0.09 8.3 Bountiful
GC12-0851 234.00 299.00 65.00 0.56 0.15 6.1 Bountiful
GC12-0851 340.00 379.50 39.50 0.75 0.14 7.3 Bountiful
GC12-0851 534.00 584.90 50.90 0.38 0.12 7.1 Bountiful
GC12-0851 669.65 698.00 28.35 0.36 0.09 5.9 Bountiful
GC12-0856 119.50 185.00 65.50 0.43 0.06 4.7 Bountiful
GC12-0856 268.92 322.25 53.33 0.38 0.14 8.5 Bountiful
GC12-0862 24.00 48.20 24.20 0.36 0.13 2.9 Bountiful
GC12-0867 439.25 516.00 76.75 0.44 0.17 4.1 Bountiful
GC12-0869 183.00 223.54 40.54 0.62 0.12 5.8 Bountiful
GC12-0872 228.00 273.00 45.00 0.66 0.09 4.6 Bountiful
GC12-0873 107.00 225.00 118.00 0.56 0.10 4.9 Bountiful
GC12-0878 158.00 211.00 53.00 0.40 0.07 5.2 Bountiful
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0852a 34.00 57.50 23.50 1.95 0.51 11.1 Central - South
GC12-0868 24.00 82.80 58.80 2.86 1.22 10.5 Central - South
GC12-0868a 24.50 86.00 61.50 2.79 1.12 10.6 Central - South
GC12-0883 15.80 90.50 74.70 2.38 0.60 11.2 Central - South
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0840 485.00 661.00 176.00 0.50 0.21 3.7 Central - North
GC12-0842 33.00 240.00 207.00 0.84 0.21 9.3 Central - North
GC12-0842 256.00 289.02 33.02 0.45 3.47 9.3 Central - North
GC12-0850 77.50 107.50 30.00 0.37 0.42 1.9 Central - North
GC12-0852 270.00 383.00 113.00 0.91 0.14 10.0 Central - North
GC12-0857 5.00 26.00 21.00 0.60 0.11 5.2 Central - North
GC12-0857 87.94 124.00 36.06 1.83 0.18 21.1 Central - North
GC12-0857 197.00 243.27 46.27 0.62 0.09 9.8 Central - North
GC12-0883 320.00 356.20 36.20 0.35 0.11 4.8 Central - North
GC12-0883 407.63 460.00 52.37 0.68 0.20 8.5 Central - North
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Footnotes to Drill Interval Table:
1. AI = Continuous Assayed Interval (meters)
2. Results are core intervals and not true thickness.
3. Significant interval defined as a minimum 20.0 meter Cu interval with
average grade greater than 0.35% Cu.
4. Cutoff grade of 0.2% Cu.
5. Internal dilution up to eight continuous meters of less than 0.2% Cu.
6. Intervals of less than 20m and/or less than 0.35% Cu, not reported.
7. Some rounding errors may occur.
Quality Control
The drill program and sampling protocol were managed by
qualified persons employed by GCMC. The diamond drill holes were
typically collared using HQ diameter drill core and reduced to NQ
diameter during the drilling process. Samples were collected using
a 0.5-meter minimum length and three-meter maximum length with
2.5-meters being the average sample length. Drill core recovery
averaged 95%. Three quality control samples (one blank, one
standard and one duplicate) were inserted into each batch of 20
samples. The drill core was sawn, with half sent to ALS Minerals in
Terrace for sample preparation and the sample pulps forwarded to
ALS Minerals' North Vancouver facility for analysis. ALS Minerals
is certified as ISO 9001:2008 and accredited to ISO / IEC
17025:2005 from the Standards Council of Canada.
Qualified Person
Erin Workman, Director of Technical Services for NovaCopper
Inc., and a consultant to NOVAGOLD, is a Qualified Person as
defined by National Instrument 43-101. Ms. Workman has reviewed the
results of the drill program and confirmed that all procedures,
protocols and methodologies used in the drill program conform to
industry standards and approves the disclosure contained
herein.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company engaged in
the exploration and development of mineral properties in North
America. Its flagship asset is the 50%-owned Donlin Gold project in
Alaska, one of the safest jurisdictions in the world. With
approximately 39 million ounces(1) of gold in the Measured and
Indicated resource categories (541 million tonnes at an average
grade of approximately 2.2 grams per tonne), Donlin Gold is
regarded to be one of the largest, and most prospective known gold
deposits in the world. According to the updated Feasibility Study,
once in production, Donlin Gold should average approximately 1.5
million ounces of gold per year for the first five years, followed
by decades of more than one million ounces per year. The Donlin
Gold project has substantial exploration potential beyond the
designed footprint which currently covers only three kilometers of
an approximately eight-kilometer strike length of the property.
Permitting is underway for the Donlin Gold project, a clearly
defined process expected to take 3-4 years. NOVAGOLD also owns 50%
of the Galore Creek copper-gold-silver project located in northern
British Columbia. According to the 2011 Pre-Feasibility Study,
Galore Creek is expected to be the largest copper mine in Canada, a
tier-one jurisdiction, when it is put into production. NOVAGOLD is
currently evaluating opportunities to sell all or a portion of its
interest in Galore Creek and would apply the proceeds toward the
development of Donlin Gold. NOVAGOLD has a strong track record of
forging collaborative partnerships, both with local communities and
with major mining companies.
Please note: As part of the rebranding, NOVAGOLD has converted
its primary domain to .com from .net, therefore, our website can
now be accessed at www.NOVAGOLD.com and all email formats within
NOVAGOLD are now firstname.lastname@NOVAGOLD.com. Please update
your contacts accordingly.
Scientific and Technical Information
Certain scientific and technical information contained herein
with respect to Galore Creek is derived from the technical report
entitled "Galore Creek Project British Columbia NI 43-101 Technical
Report on Pre-Feasibility Study" dated effective July 27, 2011. The
Qualified Persons responsible for the preparation of the
independent technical report are Robert Gill, P.Eng., Principal
Consultant and Study Manager (AMEC Americas Limited), Greg Kulla,
P. Geo., Principal Geologist (AMEC Americas Limited), Gregory
Wortman, P. Eng., Technical Director Process (AMEC Americas
Limited), Jay Melnyk, P. Eng. (AMEC Americas Limited), and Dana
Rogers, P.E., Principal Tunnelling Engineer (Lemley International),
each of whom are independent "qualified persons" as defined by NI
43-101.
Scientific and technical information contained herein with
respect to Donlin Gold is derived from the "Donlin Creek Gold
Project Alaska, USA NI 43-101 Technical Report on Second Updated
Feasibility Study" compiled by AMEC. Kirk Hanson, P.E., Technical
Director, Open Pit Mining, North America, (AMEC, Reno), Gordon
Seibel, R.M. SME, Principal Geologist, (AMEC, Reno), Tony Lipiec,
P.Eng. Manager Process Engineering (AMEC, Vancouver) are the
Qualified Persons responsible for the preparation of the
independent technical report, each of whom are independent
"qualified persons" as defined by NI 43-101.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
securities legislation, including the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, included herein including,
without limitation, the timing of permitting and potential
development of Donlin Gold, statements relating to NOVAGOLD's
future operating and financial performance, outlook, and the
potential sale of all or part of NOVAGOLD's interest in Galore
Creek are forward-looking statements. Forward-looking statements
are frequently, but not always, identified by words such as
"expects", "anticipates", "believes", "intends", "estimates",
"potential", "possible", and similar expressions, or statements
that events, conditions, or results "will", "may", "could", or
"should" occur or be achieved. These forward-looking statements may
include statements regarding perceived merit of properties;
exploration results and budgets; mineral reserves and resource
estimates; work programs; capital expenditures; timelines;
strategic plans; completion of transactions; market prices for
precious and base metals; intended use of proceeds; or other
statements that are not statements of fact. Forward-looking
statements involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements.
Important factors that could cause actual results to differ
materially from NOVAGOLD's expectations include the uncertainties
involving the need for additional financing to explore and develop
properties and availability of financing in the debt and capital
markets; uncertainties involved in the interpretation of drilling
results and geological tests and the estimation of reserves and
resources; the need for continued cooperation with Barrick Gold
Corporation and Teck Resources Limited for the continued
exploration and development of the Donlin Gold and Galore Creek
properties; the need for cooperation of government agencies and
native groups in the development and operation of properties; the
need to obtain permits and governmental approvals; risks of
construction and mining projects such as accidents, equipment
breakdowns, bad weather, non-compliance with environmental and
permit requirements, unanticipated variation in geological
structures, ore grades or recovery rates; unexpected cost
increases, which could include significant increases in estimated
capital and operating costs; fluctuations in metal prices and
currency exchange rates; and other risk and uncertainties disclosed
in NOVAGOLD's Annual Information Form for the year-ended November
30, 2012, filed with the Canadian securities regulatory
authorities, and NOVAGOLD's annual report on Form 40-F filed with
the United States Securities and Exchange Commission and in other
NOVAGOLD reports and documents filed with applicable securities
regulatory authorities from time to time. NOVAGOLD's
forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made. NOVAGOLD assumes
no obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except
as required by law.
Cautionary Note to United States Investors
This press release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which
differ from the requirements of U.S. securities laws. Unless
otherwise indicated, all resource and reserve estimates included in
this press release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. Canadian standards, including NI
43-101, differ significantly from the requirements of the United
States Securities and Exchange Commission ("SEC"), and resource and
reserve information contained herein may not be comparable to
similar information disclosed by U.S. companies.
In particular, and without limiting the generality of the
foregoing, the term "resource" does not equate to the term
"reserves". Under U.S. standards, mineralization may not be
classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. The
SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves" by U.S. standards in documents
filed with the SEC. Investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be
converted into reserves. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. Disclosure of "contained ounces"
in a resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit measures.
The requirements of NI 43-101 for identification of "reserves" are
also not the same as those of the SEC, and reserves reported by
NOVAGOLD in compliance with NI 43-101 may not qualify as "reserves"
under SEC standards. Accordingly, information concerning mineral
deposits set forth herein may not be comparable with information
made public by companies that report in accordance with U.S.
standards.
(1) Measured and indicated resources of 0.63 million ounces and
38.38 million ounces respectively (541 million tonnes at an average
grade of approximately 2.2 grams per tonne) are inclusive of 0.57
million ounces proven and 33.28 million ounces probable reserves
(504.8 million tonnes at an average grade of approximately2.09
grams per tonne).
Contacts: NOVAGOLD RESOURCES INC. Mélanie Hennessey Vice
President, Corporate Communications 604-669-6227 or 1-866-669-6227
NOVAGOLD RESOURCES INC Erin O'Toole Analyst, Investor Relations
604-669-6227 or 1-866-669-6227 www.novagold.com
NovaGold Resources (TSX:NG)
Historical Stock Chart
From Apr 2024 to May 2024
NovaGold Resources (TSX:NG)
Historical Stock Chart
From May 2023 to May 2024