NovaGold Reports Important Drill Results at the Bornite
Deposit on Its Recently Consolidated Ambler District, Alaska
Multiple Significant Intersections, Including 178
meters of 3.9% Copper in Step-out Drilling
November 10, 2011 - Vancouver, British Columbia -
NovaGold Resources Inc. ("NovaGold�� or the "Company��) (NYSE-AMEX, TSX:
NG) is pleased to announce results from its initial exploration drilling
program on the Bornite target located on the recently consolidated
180,000-hectare Upper Kobuk Mineral Property located in the Ambler mining
district of Northwest Alaska. This campaign not only confirmed previous drill
results by Kennecott Exploration Company and Kennecott Arctic Company
(collectively "Kennecott��), subsidiaries of
Rio Tinto, but also expanded the known extent of the mineralization. Bornite is
located approximately 26 kilometers southwest of the Arctic deposit which hosts
a high-grade copper and zinc mineral resource[1].
Verification drilling has encountered grades and thicknesses
similar to those reported by Kennecott, which explored the property during the
late 1950s and 1960s. Mineralization encountered showed very high-grade
chalcocite and bornite mineralization with cobalt and precious metal
mineralization surrounded by broad lower grade zones of chalcopyrite and distal
pyrite.
In 2011, NovaGold focused initial drilling on
verifying historical mineralized zones with a series of diamond drill holes
("DDHs��), designated as RC11-181 to 186, and then completed a series of
exploration holes, designated as RC11-187 to 194, to test possible extensions
of mineralization. The objectives of this program were twofold: 1) To complete
sufficient verification drilling to support estimation of a 43-101 compliant
mineral resource on the known area of mineralization; and 2) To further define
the exploration potential on the property by extending mineralization and
testing new target areas. The Company also carried out an initial deep
dipole/dipole Induced Polarization ("IP��) survey which showed highly promising results in defining stratigraphy
and mineralization.
Highlights of the NovaGold's 2011 campaign are as
follows:
- RC11-181 intersected 17.6
meters grading 8.4% copper. Overall the hole intersected four mineralized
intervals totaling 122.3 meters averaging 2.3% copper;
- RC11-182 intersected two
mineralized intervals totaling 93.2 meters averaging 2.1% copper including
18.9 meters grading 3.4% copper and 15.9 meters of 3.6% copper;
- RC11-183 intersected 6.8 meters
grading 24.5% copper within a mineralized interval totaling 26.3 meters
grading 6.7% copper; and
- RC11-184 intersected 5.5 meters
grading 28.5% copper within a mineralized interval totaling 31.9 meters
grading 5.4% copper.
Figure 1: Bornite Drill Hole Location Map
Initial exploration drilling was equally successful.
Most importantly, exploration drilling on the east and northeast sides of the
deposit encountered significant mineralization in DDH RC11-187 which drilled a
continuous interval of 178 meters grading 3.9% copper included a very
significant high-grade intersection of 34.7 meters grading 11.4% copper.
"DDH RC11-187 constitutes the best hole drilled
to date on Bornite,��� said Rick Van Nieuwenhuyse, President and Chief Executive Officer of
NovaGold. "The fact that it is a step-out, makes
it even more encouraging. While further work is necessary to assess the extent
of the Bornite deposit, these initial results continue to demonstrate the
exceptionally high-grade nature of this important and evolving mineral
district. Given the level of previous exploration in the district, we are
confident that we can continue to identify high-grade mineralization with
additional exploration drilling. Simply put, this project has the potential to
evolve into one of the richest and most valuable poly-metallic districts in the
world.��
Figure 2: Bornite Cross Section Map
Significant intercepts are shown in the table below. A total of 11 drill holes
were completed and the Company has received assays from the first five holes.
Summaries of all the holes and location maps are available on the Company's
website. The total meters drilled at Bornite are approximately 6,000 meters and
the Company expects results from an additional six holes by the end of the
year.
Table 1:
Bornite Significant Drill Intervals
|
Depth from
|
To
|
Core interval meters
|
core intervalfeet
|
Cu
%
|
Co
%
|
Au
gpt
|
Ag
gpt
|
Cu
% meters
|
DDH
RC11-181
|
264.3
|
300.6
|
36.3
|
119.1
|
4.36
|
-
|
-
|
-
|
|
including
|
*283.0
|
300.6
|
17.6
|
57.7
|
8.35
|
0.09
|
0.09
|
8.8
|
|
|
372.8
|
388.0
|
15.2
|
50.0
|
1.58
|
-
|
-
|
-
|
|
|
410.4
|
454.0
|
43.6
|
143.0
|
1.01
|
-
|
-
|
-
|
|
|
536.1
|
563.3
|
27.2
|
89.1
|
1.87
|
-
|
-
|
-
|
|
4
intervals
|
|
|
122.3
|
401.2
|
2.27
|
-
|
-
|
-
|
277.1
|
DDH
RC11-182
|
168.6
|
245.9
|
77.3
|
253.6
|
1.85
|
-
|
-
|
-
|
|
including
|
*212.0
|
230.9
|
18.9
|
62.0
|
3.43
|
-
|
-
|
-
|
|
|
270.7
|
286.5
|
15.9
|
52.0
|
3.57
|
-
|
-
|
-
|
|
2
intervals
|
|
|
93.2
|
305.6
|
2.14
|
-
|
-
|
-
|
199.3
|
DDH
RC11-183
|
304.2
|
330.5
|
26.3
|
86.3
|
6.73
|
-
|
-
|
-
|
|
including
|
*323.7
|
330.5
|
6.8
|
22.1
|
24.47
|
0.14
|
0.57
|
21.0
|
|
1
interval
|
|
|
26.3
|
86.3
|
6.73
|
-
|
-
|
-
|
177.2
|
DDH
RC11-184
|
302.3
|
334.2
|
31.9
|
104.7
|
5.41
|
-
|
-
|
-
|
|
including
|
*328.7
|
334.2
|
5.5
|
18.0
|
28.50
|
0.44
|
0.44
|
30.9
|
|
1
interval
|
|
|
31.9
|
104.7
|
5.41
|
-
|
-
|
-
|
173.1
|
DDH
RC11-185 and 186
|
results pending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DDH
RC11-187**
|
408.0
|
586.0
|
178.0
|
584.1
|
3.89
|
-
|
-
|
-
|
|
including
|
*458.7
|
493.4
|
34.7
|
113.8
|
11.38
|
0.10
|
0.16
|
5.4
|
|
1
interval
|
|
|
178.0
|
584.1
|
3.89
|
-
|
-
|
-
|
692.5
|
DDH
RC11-188 to 194
|
results pending
|
|
|
|
|
|
|
|
Footnotes to Drill Interval Table:
1. Results are core intervals and not true thickness. Mineralization is
believed to be generally tabular and shallow dipping.
2. Significant interval defined as a minimum 20.0% x-meter Cu interval.
3. Cutoff grade of 0.5% Cu.
4. Internal dilution up to six continuous meters of <0.5% Cu.
5. Intervals of <0.1g/t Au, <0.05% Co and <5.0 g/t Ag not reported.
6. Significant quantities of Au, Ag, and Co are reported in high-grade
intervals.
7. Some rounding errors may occur.
8. Intervals >3.0% Cu are highlighted.
* Internal higher grade interval.
** Three samples totalling 2.39 meters are capped at 40.0% Cu pending
additional analyses of the 40.0% overlimits.
The Ambler district consists of two contemporaneous
and adjacent mineralized belts, the Devonian Ambler poly-metallic Volcanogenic
Massive Sulfide ("VMS��) belt hosting the
Arctic deposit and the Devonian Bornite carbonate-hosted copper-cobalt belt
hosting the Bornite deposit. Previous work in the district has focused on the
Arctic deposit which lies approximately 26 kilometers to the northeast of the
Bornite deposit. NovaGold announced the completion of a Preliminary Economic
Assessment ("PEA��) on the Arctic deposit in a press release dated April 14, 2011
indicating robust project economics.
Quality Control
The drill program and sampling protocol were managed
by qualified persons employed by NovaGold. The diamond drill holes were
typically collared at HQ diameter drill core and reduced to NQ diameter during
the drilling process. Samples were collected using a 0.5-meter minimum length,
three-meter maximum length and 1.5-meter 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 Chemex in Fairbanks for sample preparation and
the sample pulps forwarded to ALS's North Vancouver facility for analysis. ALS
Minerals in North Vancouver, B.C., Canada, is a facility certified as ISO
9001:2008 and accredited to ISO / IEC 17025:2005 from the Standards Council of
Canada.
Qualified Person
Heather Brown, P.Geo, GIS Database Geologist for
NovaGold, and a Qualified Person as defined by National Instrument 43-101, 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.
About NovaGold
NovaGold is a precious metals company engaged in the
exploration and development of mineral properties in Alaska, U.S.A. and British
Columbia, Canada. The Company is focused on advancing its two core properties,
Donlin Gold and Galore Creek, with the objective of becoming a low-cost
million-ounce-a-year gold producer, and offers superior leverage to gold and
copper with one of the largest reserve/resource bases of any junior or mid-tier
gold company. NovaGold has a strong track record of expanding deposits through
exploration success and forging collaborative partnerships, both with local
communities and with major mining companies. The Donlin Gold project in Alaska,
one of the world's largest known undeveloped gold deposits, is held by a
limited liability company owned equally by wholly-owned subsidiaries of
NovaGold and Barrick Gold Corporation. The Galore Creek project in British
Columbia, a large copper-gold-silver deposit, is held by a partnership owned
equally by wholly-owned subsidiaries of NovaGold and Teck Resources Limited.
NovaGold also owns a 100% interest in the high-grade Ambler
copper-zinc-gold-silver deposit in northern Alaska and has other earlier-stage
exploration properties. NovaGold trades on the TSX and NYSE-AMEX under the
symbol NG. More information is available at www.novagold.net or by emailing
info@novagold.net.
NovaGold Contact
Neil MacRae
Director, Investor Relations
neil.macrae@novagold.net
604-669-6227 or 1-866-669-6227
# # #
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain
"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, statements relating to NovaGold's future operating or financial
performance, 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; 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 NANA for the continued exploration and development
of the Ambler, Bornite and ANCSA lands; 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 the capital and
operating costs estimated in the preliminary economic assessment; 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,
2010, 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.
[1] See NovaGold release of April14, 2011
"NovaGold Completes Preliminary Economic Assessment for Ambler Project.��
info@novagold.net Toll free: 1-866-669-6227 www.novagold.net