NOVAGOLD's 2013 Drill Results at Galore Creek Identify Extensions
to Mineralization at Legacy Zone
-- 11,600-meter drill program confirmed significant
mineralization in areas within and adjacent to the Legacy zone
-- Results should provide sufficient basis to arrive at an
initial resource of the Legacy zone
-- The program planned for 2014 is focused on studies that could
add further value to Galore Creek
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 23, 2014) -
NOVAGOLD RESOURCES INC. (TSX:NG)(NYSEMKT:NG) announces the results
of the 2013 in-fill and exploration drilling program at its
50%-owned Galore Creek property, located in the Territory of the
Tahltan Nation in northwestern British Columbia, Canada. Galore
Creek is a large copper-gold-silver project held by a partnership
in which NOVAGOLD and Teck Resources Inc. ("Teck") each own a 50%
interest. The 2013 program was completed ahead of schedule and
below budget and confirmed significant mineralization at the
recently discovered Legacy zone. The program also identified areas
for potential resource growth.
The 2013 drill program focused on assessing the extent of the
Legacy mineralization and evaluating its impact on future mine and
project design. The objectives of the program were to:
- Increase the density of drilling in the Legacy zone to the
level required for the establishment of Inferred resources;
- Provide new drill data to increase resource model confidence;
and
- Explore possible extension of known mineralized zones:
Bountiful to the north, Legacy to the South, and potential
connection of these two zones.
Program Highlights
The most significant intersections from in-fill and exploration
drilling in the Legacy zone were as follows:
- GC13-0889 intersected 129 meters grading 0.72% copper, 0.17 g/t
gold and 7.2 g/t silver
- GC13-0890 intersected 117 meters grading 0.63% copper, 0.16 g/t
gold and 8.3 g/t silver
- GC13-0895 intersected 135 meters grading 1.50% copper, 0.34 g/t
gold and 13.2 g/t silver, and a further 84 meters grading 0.78%
copper, 0.10 g/t gold and 8.8 g/t silver
- GC13-0901 intersected 58 meters grading 0.87% copper, 0.20 g/t
gold and 12.6 g/t silver
"The 2013 drill program at Galore Creek produced excellent
results which exceeded our stated objectives," said Greg Lang,
NOVAGOLD's President and Chief Executive Officer. "With more than
11,600-meters drilled, the in-fill and exploration drilling
confirmed significant mineralization in areas within and adjacent
to the Legacy zone. The work was completed ahead of schedule and
under budget. I would like to congratulate all members of the team
on their hard work, enhanced safety practices and, most
importantly, zero lost-time injuries."
Mr. Lang further added: "If developed as envisioned in the
pre-feasibility study (PFS), Galore Creek is expected to become the
largest and lowest-cost copper mine in Canada, one of the most
mining friendly jurisdictions in the world. In 2014, along with
Teck, NOVAGOLD plans to carry out additional technical studies to
further enhance the value of this significant project. NOVAGOLD
continues to explore opportunities to monetize the value of its
share of Galore Creek and redeploy the proceeds towards advancement
of its flagship Donlin Gold project in Alaska. We believe that the
results of the 2013 drill campaign and the work we plan for 2014
should facilitate this process both from the standpoint of
marketability as well as value of Galore Creek."
In 2013, Galore Creek completed 22 in-fill and exploration drill
holes totaling 11,649-meters, 9,157-meters of which targeted the
Legacy Zone. An additional 2,492 meters of exploration drilling was
conducted to better understand geological features that could
influence the mineralization in Legacy, identify mineralization
trends, and explore possible extensions of known mineralized zones
adjacent to Legacy. All assay results from the program have been
received. From the 22 drill holes, 11 encountered 21 significant
mineralized intercepts, as shown and defined in Table 1. The 2013
program increased the drill density to a level required to support
an Inferred resource classification of the Legacy zone. As
illustrated in Figure 1 below, the 2013 results also demonstrated
that the copper mineralization may be extending beyond the initial
Legacy discovery in the direction of the Bountiful mineralization.
The mineralization remains open to the south, west, and at
depth.
To view Figure 1 please visit the following link:
http://media3.marketwire.com/docs/923775fig1.pdf
Drilling and Project Development to Date
NOVAGOLD published the Galore Creek PFS (as defined below) on
July 27, 2011. The study confirmed the technical and economic
viability of the project and identified opportunities to increase
mineral resources and extend the project's life. Throughout 2011
and 2012, resource and geotechnical drilling were carried out to
upgrade the classification of Inferred mineral resources and obtain
data to support further mine planning and engineering. An extensive
27,900-meter drilling campaign was completed in 2012. It confirmed
previously reported drill results and demonstrated the potential
for substantial extension of the mineralized area beyond the limits
of the current PFS pit. Notably, it led to the discovery of the
700-meter long mineralized zone located northeast of Bountiful and
adjacent to the eastern extents of the Central Pit called the
Legacy zone. Approximately 1,212 core holes and 311,181 meters have
been drilled in the project area since discovery.
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 Galore
Creek PFS, evaluated on a 100% basis, yielded a Net Present Value
("NPV7%") of C$837 million and C$137 million on pre-tax and
post-tax bases, 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.
Partnerships
NOVAGOLD hires locally whenever possible, collaborating with
communities to create training, employment and business
opportunities in the area. During the 2013 field program, ten local
Tahltan businesses provided a significant portion of the on-site
contract services.
2014 Outlook
NOVAGOLD and Teck have agreed to incorporate the 2012 and 2013
results into a capital efficient work plan that will advance the
Galore Creek project toward a new resource and reserve estimate for
next-level mine planning and design. As such, the 2014 work plan
includes technical studies in the areas of environmental and water
management, as well as site layout. Although the Legacy zone is
still open, no drill program is planned for 2014. Further guidance
on the 2014 budget will be provided in the fourth quarter results.
In the meantime, the Company will continue to evaluate
opportunities to monetize the value of the asset.
Table 1: Galore Creek Significant Drill Intervals |
|
Hole ID |
From (m) |
To (m) |
AI (m) |
Cu % |
Au g/t |
Ag g/t |
|
Area |
GC13-0889 |
134.03 |
229.00 |
94.97 |
0.48 |
0.10 |
6.3 |
|
Central North |
GC13-0891 |
10.30 |
51.60 |
41.30 |
0.59 |
0.09 |
5.2 |
|
Central North |
GC13-0898 |
36.79 |
140.50 |
103.71 |
0.58 |
0.15 |
6.2 |
|
Central North |
GC13-0898 |
149.65 |
177.50 |
27.85 |
0.41 |
0.20 |
7.4 |
|
Central North |
GC13-0904 |
267.00 |
322.40 |
55.40 |
0.66 |
0.09 |
7.8 |
|
Central North |
GC13-0904 |
348.00 |
368.00 |
20.00 |
0.38 |
0.12 |
8.2 |
|
Central North |
GC13-0889 |
366.95 |
496.00 |
129.05 |
0.72 |
0.17 |
7.2 |
|
Legacy |
GC13-0890 |
210.00 |
326.50 |
116.50 |
0.63 |
0.16 |
8.3 |
|
Legacy |
GC13-0890 |
502.00 |
592.00 |
90.00 |
0.56 |
0.16 |
5.3 |
|
Legacy |
GC13-0891 |
378.50 |
442.00 |
63.50 |
0.55 |
0.24 |
6.3 |
|
Legacy |
GC13-0893 |
186.00 |
277.00 |
91.00 |
0.38 |
0.07 |
2.4 |
|
Legacy |
GC13-0893 |
727.00 |
808.00 |
81.00 |
0.62 |
0.13 |
5.4 |
|
Legacy |
GC13-0895 |
304.00 |
439.35 |
135.35 |
1.50 |
0.34 |
13.2 |
|
Legacy |
GC13-0895 |
450.70 |
534.50 |
83.80 |
0.78 |
0.10 |
8.8 |
|
Legacy |
GC13-0897 |
450.00 |
495.00 |
45.00 |
0.36 |
0.12 |
3.6 |
|
Legacy |
GC13-0903 |
300.00 |
390.15 |
90.15 |
0.44 |
0.09 |
4.0 |
|
Legacy |
GC13-0903 |
399.30 |
459.00 |
59.70 |
0.50 |
0.22 |
4.0 |
|
Legacy |
GC13-0904 |
715.00 |
738.00 |
23.00 |
0.40 |
0.07 |
3.7 |
|
Legacy |
GC13-0901 |
380.00 |
404.00 |
24.00 |
0.63 |
0.18 |
8.0 |
|
Bountiful/Legacy |
GC13-0901 |
520.00 |
578.00 |
58.00 |
0.87 |
0.20 |
12.6 |
|
Bountiful/Legacy |
GC13-0902 |
596.50 |
622.50 |
26.00 |
0.35 |
0.07 |
3.7 |
|
Bountiful/Legacy |
Footnotes to Drill Interval Table: |
- AI = Continuous Assayed Interval (meters)
- Results are core intervals and not true
thickness.
- Significant interval defined as a minimum 20.0 meter Cu
interval with average grade greater than or equal to 0.35%
Cu.
- Mineralized cutoff grade of 0.20% Cu.
- Internal dilution up to eight continuous meters of less
than 0.20% Cu allowed.
- Intervals of less than 20m and/or weight average grade less
than 0.35% Cu, not reported.
- Some rounding errors may occur.
Quality Control
The drill program and sampling protocol were managed by
qualified persons employed by Galore Creek Mining Company. 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 97%. 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
Heather White, P. Eng., President at White Mining Consulting
Inc., and a consultant to NOVAGOLD, is a Qualified Person as
defined by National Instrument 43-101. Ms. White 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 39,000,000 ounces of gold in the Measured and
Indicated resourcees 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, highest quality, and most
prospective known gold deposits in the world. According to the
updated feasibility study (as defined below), once in production,
Donlin Gold should average approximately 1,500,000 ounces of gold
per year for the first five full years, followed by decades of more
than one million ounces of gold per year on a 100% basis. The
Donlin Gold project has substantial exploration potential beyond
the designed footprint which currently covers only three kilometers
of an approximately eight-kilometer long gold bearing trend.
Current activities at Donlin Gold are focused on permitting,
community outreach and workforce development in preparation for the
construction and operation of this top tier asset. The Donlin Gold
project commenced permitting in 2012, a clearly defined process
expected to take approximately 4 years. NOVAGOLD also owns 50% of
the Galore Creek copper-gold-silver project located in northern
British Columbia. According to the 2011 PFS, once in production,
Galore Creek is expected to be the largest copper mine in Canada, a
tier-one jurisdiction. 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 is well positioned to stay the course and take
Donlin Gold through permitting and up to a construction
decision.
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 the Project, 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, 2011, 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. Under SEC Industry Guide 7
standards, a "final" or "bankable" feasibility study is required to
report reserves.
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.
NOVAGOLD RESOURCES INC.Mélanie HennesseyVice President,
Corporate Communications604-669-6227 or 1-866-669-6227NOVAGOLD
RESOURCES INC.Erin O'TooleAnalyst, Investor Relations604-669-6227
or 1-866-669-6227www.novagold.com
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