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Re: News Release - Monday, February 26, 2007
NovaGold Reports Further Results from 2006 Drill Campaign at
Donlin Creek
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February 26, 2007 - Vancouver, British Columbia - NovaGold Resources
Inc. (AMEX, TSX: NG) today announced that additional assay results from
the 2006 Donlin Creek infill drill program continue to demonstrate
continuity of the ore body. This drilling has resulted in a significant
increase in Measured and Indicated Resources for the project, further
confirming Donlin Creek's world-class potential.
Highlights
Drill core assay results have been received from Barrick Gold
Corporation ("Barrick") for an additional 61 infill holes drilled by
Barrick on the Donlin Creek property in 2006. Results have been
received for approximately 45,000 meters from the 2006 drill campaign.
Final assays are still pending from an additional approximately 37,000
meters of drilling. Final results are expected later in March 2007.
Highlights from the recently received assay results are listed below
(g/t = grams per tonne):
Drill highlights from the Acma area infill drilling include:
.. DC06-1129 with 13 mineralized intervals totaling 174 meters grading
3.07 g/t gold
.. DC06-1130 with 13 mineralized intervals totaling 214 meters grading
2.83 g/t gold
.. DC06-1131 with 12 mineralized intervals totaling 169 meters grading
4.23 g/t gold
.. DC06-1133 with 14 mineralized intervals totaling 257 meters grading
3.82 g/t gold
Drill highlights from the Lewis area infill drilling include:
.. DC06-1255 with 7 mineralized intervals totaling 109 meters grading
7.89 g/t gold
.. DC06-1283 with 13 mineralized intervals totaling 102 meters grading
4.10 g/t gold
.. DC06-1287 with 15 mineralized intervals totaling 126 meters grading
3.62 g/t gold
.. DC06-1376 with 12 mineralized intervals totaling 104 meters grading
3.46 g/t gold
Recent drilling outside the current resource pit has confirmed and
extended mineralization north of the Akivik zone. DC06-1369, collared
approximately 500 meters north of the resource pit, cut 36 meters
grading 3.68 g/t gold in five intervals. In addition, drilling has
shown that the Aurora, Acma, East Acma, Vortex, Lewis and South Lewis
deposits remain open to further expansion laterally and at depth (see
Figures 1 and 2).
Donlin Creek Additional 2006 Drill Results
Assay results provided by Barrick for 61 additional core holes continue
to show excellent property-wide results. Over 82,000 meters of infill
drilling was completed in 2006, targeting the conversion of Inferred
Resources to Measured and Indicated Resources. Assays from 135 of the
infill drill holes have been received by NovaGold, with the remaining
37,000 meters of assays expected by the end of March. An additional
10,000 meters of drilling, over and beyond the 82,000 meters of infill
drilling, were focused on geotechnical studies, metallurgical studies,
facilities condemnation and limestone resource definition, bringing the
total 2006 drilling to approximately 92,000 meters (Appendix 1 includes
all final drill results to date).
Though only very minor drilling was undertaken beyond the current
resource pit in 2006, the few holes drilled beyond the pit limits have
confirmed significant new mineralization in several areas. Drill hole
DC06-1369, 500 meters north of the Akivik zone, has intersected 36
meters grading 3.68 g/t gold in five intervals. Mineralization in the
drill hole is associated with a northeast-trending intrusive dike that
has been traced by limited drilling several kilometers north of the
resource pit.
Significant potential also exists in the East Acma area, where DH-1144
drilled early last summer intersected 164.7 meters grading 3.68 g/t
gold and extending well beyond the current pit limit at depth and to
the east of the main Acma deposit. This interval is particularly
significant because it potentially represents the discovery of a new
important structural intersection between the ore hosting intrusive
dikes and sills similar to the settings that host the main Acma and
Lewis deposits. Additionally, a geotech hole (DGT06-1158) drilled early
in the 2006 program in the south high-wall of the resource pit
encountered 15.5 meters grading 12.67 g/t gold. No follow-up drilling
has been done on any of these intercepts. The other major deposits that
host the majority of the resources at Donlin also remain open to
expansion laterally and at depth (see Figures 1 and 2).
The 2006 drill program and sampling protocol was managed by Barrick.
All drill samples were analyzed by fire assay at ALS Chemex Labs in
North Vancouver, B.C., Canada. Assay quality control and quality
assurance standards were overseen by Barrick. Kevin Francis, P.Geo.,
Resource Manager for NovaGold, and a Qualified Person as defined by
National Instrument 43-101, has reviewed the results of the 2006 drill
program disclosed by NovaGold and confirmed that all procedures,
protocols and methodologies used in the drill program conform to
industry standards.
Final 2006 Resource Update Targeted for Second Quarter 2007
Barrick has provided NovaGold with an initial interim resource model to
meet its year-end reporting requirements based on 39,000 meters of
drilling (out of the total 82,000 meters drilled on the project) from
the 2006 program. The updated drill results in the interim model are
primarily from the Acma area (western half of Figures 1 and 2) and have
increased the overall Measured and Indicated Resources for the project.
The interim update shows an increase of 5 million ounces in Measured
and Indicated ounces for the project, representing a 34% increase over
the previous Placer Dome Inc. January 2006 Donlin Creek model. At the
Acma deposit, the Measured and Indicted Resources increased by over
50%. The Barrick interim resource model shows an overall decrease in
the Inferred ounces, with 5 million ounces being converted to the
Measured and Indicated category and 7 million ounces decreasing largely
due to more restrictive estimation methodology used by Barrick to
define Inferred Resources in comparison with those used by Placer Dome
in its January 2006 estimate.
The largest portion of the decreased Inferred ounces are in the Lewis
area (eastern half of Figures 1 and 2) where the vast majority of the
remaining 43,000 meters of 2006 drilling, which was not included in
this interim resource update, is located. NovaGold anticipates that
additional Measured and Indicated ounces along with Inferred ounces
will be added to the overall model from the final 2006 resource update,
which will include the results from the Lewis area. Initial results
from the drilling at Lewis are very encouraging and are highlighted in
Figures 1 and 2 and Appendix 1. NovaGold anticipates that the final
2006 drill assays and a complete 2006 resource estimate will be
released in the second quarter.
Figure 1 is a plan map showing grade thickness results for the 2006
drilling. Drill holes that were included in the interim resource are
shown as squares. The drill holes that were not included in the interim
resource are shown as circles. Those holes that are still pending assay
results are shown as green circles and historical drill holes are shown
as small gray circles. Appendix 1 provides details of the drill holes
shown in Figure 1. Figure 2 is a geologic section showing the main Acma
and Lewis area deposits and drill holes, highlighting the holes
completed in 2006 and those still pending assays. The section shows the
pit outlines and intrusive boundaries, and highlights that the deposits
remain open to further significant expansion with additional drilling.
The Donlin Creek Project
NovaGold owns a 70% interest in the Donlin Creek deposit in a joint
venture with Barrick (30%). The deposit, located in southwestern
Alaska, is one of the largest undeveloped gold resources in the world.
Under the terms of a back-in agreement, Barrick has an option to earn
an additional 40% interest in the joint venture (which would bring its
total to a 70% interest) by expending a minimum of US$32 million on the
property, completing a bankable feasibility study and making a board
decision by November 2007 to construct a mine with an anticipated
production rate of not less than 600,000 ounces of gold or gold
equivalent per year for the first five years of production. A bankable
feasibility study is a comprehensive analysis and assessment of a
project's economics that would be used by NovaGold to obtain project
financing.
NovaGold believes it will not be possible for Barrick to meet the terms
and conditions of the back-in agreement to obtain an additional 40%
interest in the Donlin Creek project. This is due to the fact that the
upcoming Feasibility Study will not be the final Feasibility Study for
the project and that construction can not begin on the project until
after completion of the permitting process. Barrick has admitted that
the Draft Environmental Impact Statement process will not begin until
later this fall and will not be completed for 2 to 3 years, well after
the required construction decision deadline this November. In recent
hearings before a US District Court in Alaska, NovaGold has submitted
that clarification of the contract terms should proceed on their own
merits and not wait until after the contract deadline in November 2007.
A ruling from the court is expected in the next few weeks, and should
determine whether the case will proceed to discovery and trial or wait
until after the contract deadline later this year.
About NovaGold
NovaGold Resources Inc. owns 70% of the Donlin Creek gold project in
Alaska, one of the world's largest gold deposits. The Company is
rapidly advancing toward production at its 100%-owned Galore Creek
copper-gold project in northwestern British Columbia, and expects to
achieve production in mid-2007 at its 100%-owned Nome Operations in
Alaska, which include Rock Creek, Big Hurrah and Nome Gold. 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 is well financed with no long-term debt, and 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 Regarding 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; and NovaGold's future production, operating and
capital costs, operating or financial performance and future share
prices, 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. Important factors that could
cause actual results to differ materially from NovaGold's expectations
include uncertainties involved in disputes and litigation, including
disputes and litigation concerning Barrick Gold Corporation and the
Donlin Creek property; 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 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 for Galore
Creek and other projects; and other risks and uncertainties disclosed
in NovaGold's Annual Information Form for the year ended November 30,
2005, 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 and filed with the appropriate regulatory agencies.
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Contacts
Greg Johnson
Vice President, Corporate Communications and Strategic Development
Don MacDonald, CA
Senior Vice President & CFO
Rhylin Bailie
Manager, Corporate & Investor Relations
604-669-6227 or 1-866-669-6227
Associated File:
http://www.novagold.net/i/pdf/NGPR26Feb07DonlinDrillUpdate.pdf
Link to a PDF version of this news release, including Figures 1 and 2
and Appendix 1.
1117 KB in size, approx. 3 minutes, 29 seconds to download at 56.6Kbps
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Copyright (c) 2007 NOVAGOLD RESOURCES INC. (TSX/AMEX:NG) All rights
reserved. For more information visit our website at
http://www.novagold.net/ or send mailto:info@novagold.net
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Message sent on Mon Feb 26, 2007 at 7:19:15 AM Pacific Time
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