NovaGold Hosts
Quarterly Call and Webcast Today
July 24, 2008 -
Vancouver, British Columbia - NovaGold Resources Inc. (AMEX, TSX: NG) will host a
conference call and webcast today at 11 am PST (2 pm EST) to discuss its
quarterly results and provide an update on its portfolio of projects, along
with a Q&A for analysts and fund managers.
Toll-free 1-800-952-4972
or webcast at www.novagold.net
During the conference call,
NovaGold’s President & CEO will review progress at NovaGold’s core
projects and discuss significant milestones anticipated over the next 12
months. The Company has a number of important advancements anticipated in the
months ahead, including the start of ramp-up of gold production this summer at
the Rock Creek mine. In addition, NovaGold and Teck Cominco expect to announce
the new go-forward project plan for the Galore Creek copper-gold project this
fall and to complete an updated feasibility for the project next year. In June,
NovaGold and Barrick announced the go-forward plan for the Donlin Creek gold
project with the feasibility study targeted for Q1-2009.
With NovaGold’s current
portfolio of projects, the Company would produce potentially more than 1
million ounces of gold, 4 million ounces of silver and 200 million pounds of
copper annually with Nome Operations, Donlin Creek and Galore Creek all in
production, giving the Company an exceptional long-term production growth
profile.
Rock Creek
NovaGold is working
closely with mine regulators to finalize its storm water management plan and to
complete final repairs to the water recycle pond. Final authorization for the
start of production ramp-up is anticipated shortly. A 3-month ramp-up period is
expected to bring the project to commercial levels of production, with a
production target of approximately 100,000 ounces of gold on an annualized
basis. Exploration work is ongoing at Rock Creek, with the objective to convert
existing resources into mineable reserves and significantly expand the mine
life of the project.
Achievement of gold
production at Rock Creek is a major milestone for the Company. Cash flow from
Rock Creek and a related line of credit is anticipated to be able to cover a
substantial portion of the Company’s finance needs for its development work
at the Donlin Creek and Galore Creek projects over the next couple of years.
Donlin Creek
In June, NovaGold
and Barrick Gold announced a go-forward development plan for the Donlin Creek
project with an expected throughput design of approximately 50,000 tonnes per
day. As currently envisioned, Donlin Creek would be one of the largest gold
mines in the world, operating for 25 to 30 years and producing potentially 1 to
1.5 million ounces of gold annually. The Donlin Creek LLC plans to complete and
approve a feasibility study by Q1-2009, allowing for the start of permitting in
early 2009 with construction targeted for 2012. The feasibility study will
provide updated economics and cost estimates for the project based on onsite
diesel and wind cogeneration and the revised project design. The feasibility
study would allow for the conversion of the in-pit measured and indicated
resources for the project to proven and probable reserves.
Exploration is ongoing at
Donlin Creek, with the focus of identifying additional high-grade/high-quality
ores that can increase the net present value of the project and reduce the
capital payback period. Drilling completed to date in 2008 demon strates that
mineralization continues approximately 500 meters to the east of the current
pit-constrained resource in the East Acma area. The 2008 holes are intercepting
mineralization below and beyond the current pit limit and highlight the
potential to increase the Donlin Creek resource base with additional infill
drilling. Work is also in progress at the Dome target area north of the main
Donlin resource to evaluate the potential for conventional CIL amenable
resources that could be processed in the first few years of production.
Galore Creek
The Galore Creek
project is managed by the Galore Creek Mining Corporation, an independent
entity controlled equally by NovaGold and Teck Cominco. Under the ownership
agreement, Teck Cominco is paying 100% of the costs associated with engineering
and optimization work on the project. NovaGold and Teck Cominco are currently
splitting costs one-third/two-thirds, respectively, to maintain the
infrastructure built during 2007.
The Galore Creek Mining
Corporation continues to evaluate and optimize alternate approaches to the
Galore Creek project design and expects to announce a preferred project design
in the fall of 2008. Optimization work has been very encouraging, showing
potential for increased production throughput and reduced project costs. The
new feasibility study, scheduled for 2009, will update cost estimates for the
project and may allow for the recommencement of construction.
About NovaGold
NovaGold is a precious
metals company engaged in the exploration and development of mineral properties
in Alaska and Western Canada. Production is scheduled for 2008 at the
100%-owned Nome Operations in Alaska, which includes the Rock Creek, Big Hurrah
and Nome Gold deposits. NovaGold owns 50% of the Donlin Creek gold project in
Alaska, one of the world’s largest gold deposits, with Barrick Gold (50%).
The Company also owns 50% of the Galore Creek copper-gold-silver project in British
Columbia with Teck Cominco (50%). Also in Alaska, NovaGold is earning a 51%
interest as manager of the high-grade Ambler copper-zinc-silver-gold project in
partnership with Rio Tinto. NovaGold has one of the largest resource bases of
any exploration or development-stage precious metals company. NovaGold trades
on the TSX and AMEX under the symbol NG. More information is available online
at www.novagold.net or by e-mail at info@novagold.net.
Cautionary Note
Concerning Forward-Looking Statements
This press release includes certain “forward-looking statements”
within the meaning of the United States Private Securities Litigation Reform
Act of 1995. All statements, other than statements of historical fact, included
herein including, without limitation; anticipated dates for receipt of permits
and approvals, construction and production, and other milestones; anticipated
results of drilling programs, feasibility studies and other analyses;
anticipated availability and terms of future financing; estimated timing and
amounts of future expenditures, and NovaGold’s future production, operating
and capital costs, operating or financial performance, are forward-looking
statements. Information concerning mineral reserve and resource estimates also
may be deemed to be forward-looking statements in that it reflects a prediction
of the mineralization that would be encountered if a mineral deposit were
developed and mined. 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. NovaGold’s forward-looking statements are based on the
beliefs, expectations and opinions of management on the date the statements are
made, and NovaGold does not assume any obligation to update forward-looking
statements if circumstances or management’s beliefs, expectations or opinions
should change except as required by law. For the reasons set forth above,
investors should not place undue reliance on forward-looking statements.
Important factors that could cause actual results to differ materially from
NovaGold’s expectations include uncertainties involved in disputes and
litigation; fluctuations in gold, copper and other commodity prices and
currency exchange rates; uncertainties relating to interpretation of drill
results and the geology, continuity and grade of mineral deposits; uncertainty
of estimates of capital and operating costs, recovery rates, production
estimates and estimated economic return; the need for cooperation of government
agencies and native groups in the exploration and development of properties and
the issuance of required permits; the possible effects of Alaska’s proposed “Clean
Water” initiatives; the need to obtain additional financing to develop
properties and uncertainty as to the availability and terms of future
financing; the possibility of delay in exploration or development programs or
in construction projects and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and other
governmental approvals; and other risks and uncertainties disclosed in
NovaGold’s Annual Information Form for the year ended November 30, 2007,
filed with the Canadian securities regulatory authorities, NovaGold’s annual
report on Form 40-F filed with the United States Securities and Exchange
Commission, and other information released by NovaGold from time to time and
filed with the appropriate regulatory agencies.
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Contacts
Greg Johnson
Vice President, Corporate Communications & Strategic Development
Rhylin Bailie
Manager, Corporate & Investor Relations
604-669-6227 or
1-866-669-6227
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