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Re: News Release - Thursday, March 29, 2007
NovaGold Exercises Option to Purchase Mining Claims at Galore
Creek
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March 29, 2007 - Vancouver, British Columbia - NovaGold Resources Inc.
(AMEX, TSX: NG) today announced that it has exercised its option to
purchase 100% of the mining claims of the main Galore Creek copper-gold
deposit in northwestern British Columbia.
Under the Galore Creek Option Agreement dated July 31, 2003 (the
"Agreement") between NovaGold and subsidiaries of Rio Tinto and HudBay
Minerals, NovaGold has an option to purchase Stikine Copper Limited,
which is the owner of the core mineral claims that contain all of the
company's Proven and Probable Reserves in the Galore Creek area of the
Liard Mining Division in the Province of British Columbia. All of
NovaGold's financial earn-in requirements under the Agreement have been
satisfied. The exercise of the option is expected to close within 90
days, at which point all of Stikine Copper's assets will be owned 100%
by NovaGold.
"Exercising this option further strengthens NovaGold's land position at
the Galore Creek deposit and brings us one step closer to construction
of this world-class project," said Rick Van Nieuwenhuyse, President and
CEO of NovaGold. "We continue to meet our targets and remain on task,
and the Company continues very active discussions with a number of
potential joint venture partners for the project. The Galore Creek
construction team is ready to begin construction with Board approval
once initial financing is in place and the necessary permits have been
received, which are anticipated in the second quarter of 2007."
About the Galore Creek Project
Located in northwestern British Columbia, Galore Creek is one of the
largest undeveloped copper-gold projects in the world. As envisioned,
the Galore Creek deposit would be developed as an open-pit mine at a
65,000 tonnes-per-day processing rate over a minimum 20-year mine life.
Management anticipates the project will create up to 1,000 jobs during
the construction phase and approximately 500 full-time jobs during
operation.
In February 2006, NovaGold entered into a comprehensive agreement with
the Tahltan First Nation to support development of the Galore Creek
project. The agreement supports the Tahltan Nation's principles of
environmental stewardship, economic sustainability and
self-determination and ensures collaboration throughout the
Environmental Assessment review and the permitting process.
NovaGold initiated the British Columbia environmental assessment
process in February 2004 and worked closely with regulators to complete
the baseline studies and detailed project description required to
define the terms of reference for the environmental assessment
application. After a complete public and government review process,
NovaGold received the Provincial Environmental Assessment Certificate
for Galore Creek in February 2007, an important step toward issuance of
the various permits and authorizations required to construct and
operate the mine. The Galore Creek Construction team, comprising 37
individuals with decades of industry experience, is making final
preparations to begin construction. NovaGold anticipates receipt of
permits in the second quarter of 2007, and plans to begin construction
immediately upon receipt of permits, with financing in place and Board
of Directors approval.
Galore Creek construction has been planned in two Phases. Phase 1
construction will focus on providing access to the Galore Creek Valley.
Significant activities during Phase 1 include the construction of mine
access roads, bridges, access tunnels, concentrate and diesel pipelines
and an approximately 130-kilometer long power transmission line from
Bob Quinn to the Galore Creek Valley. Phase 1 construction is
anticipated to take 24 months, with access to the Galore Creek Valley
in the second half of 2009. Phase 2 construction will focus on mine
facilities and earthworks, including construction of mine
infrastructure, a tailings dam, open pit stripping and process plant
facilities. Mine production start-up is anticipated to begin in
mid-2012 after 3 months of commissioning.
NovaGold has an option agreement with Copper Canyon Resources Ltd. on
the adjoining Copper Canyon property, under which the Company is
earning up to an 80% interest. NovaGold also has an option on the
adjoining Grace properties with Pioneer Metals Corporation, under which
the Company is earning a 60% interest. This option agreement is
currently the subject of litigation between NovaGold and Pioneer.
About NovaGold
NovaGold is a gold and copper company engaged in the exploration and
development of mineral properties in Alaska and Western Canada. The
Company owns 70% of the Donlin Creek gold project in Alaska and 100% of
the Galore Creek copper-gold project in British Columbia, which are
among the world's largest gold and copper-gold deposits, respectively.
The Company is rapidly moving to production at its 100%-owned Nome
Operations in Alaska, which includes 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 has one of the largest reserve and 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, statements regarding
potential mineralization and exploration results, construction and
production timing and cost estimates, anticipated permitting results
and timing and future plans, actions, objectives and achievements of
NovaGold, are forward-looking statements. 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 fluctuations in gold,
copper and other commodity prices and currency exchange rates;
uncertainty of estimates of capital and operating costs, production
estimates and estimated economic return; uncertainties involved in
disputes and litigation, including disputes and litigation concerning
Pioneer Metals and the Galore Creek and Grace properties; the need to
obtain additional financing to develop properties and uncertainty as to
the availability and terms of future financings; the need for
cooperation of government agencies and First Nations groups in the
exploration, permitting and development of NovaGold's properties; the
possibility of adverse developments in the financial markets generally;
the possibility of delay in permitting, exploration, development or
construction programs and uncertainties as to permit and approval
requirements and meeting project milestones; and other risks and
uncertainties disclosed under the heading "Caution Regarding
Forward-Looking Statements" and elsewhere in NovaGold's Annual
Information Form for the year ended November 30, 2006, filed with the
Canadian securities regulatory authorities, in NovaGold's annual report
on Form 40-F filed with the United States Securities and Exchange
Commission and in 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/NGPR29Mar07GaloreCreekOption.pdf
Link to a PDF version of this news release.
30 KB in size, approx. 6 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
Message sent on Thu Mar 29, 2007 at 11:10:31 AM Pacific Time
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