ALASKA – One of North America’s largest undeveloped gold deposits just keeps shining more brightly. NOVAGOLD RESOURCES of Vancouver (which holds 70% and PLACER DOME U.S. 30%) says this year’s drilling program has confirmed the geologic model and grades of the Donlin Creek project in the southwestern area of the state. An updated resource estimate is underway. An earlier estimate put contained gold at 11.0 million oz in the measured and indicated resources categories, plus 14.3 million oz in the inferred category.
The US$14-million 2005 program included 27,000 metres of drilling, pre-feasibility design and baseline environmental data collection. Four drill holes are of particular interest, NovaGold reports. Hole DC05-1033 intersected four mineralized intervals totalling 90.0 metres grading 6.4 g/t Au, including 70.0 metres grading 7.4 g/t Au. Hole DC05-1063 cut seven intervals totalling 103.4 metres at 6.7 g/t Au including intervals of 12.0 metres at 16.3 g/t Au and 20.7 metres of 7.9 g/t Au. Hole DC05-1065 cut nine intervals totalling 258.2 metres grading 5.0 g/t Au, including intervals of 25.0 metres at 10.2 g/t Au, 29.7 metres of 7.1 g/t Au, and 65.9 metres of 5.8 g/t Au. Hole DC05-1018 cut eight intervals totalling 277.5 metres averaging 3.59 g/t Au, including intervals of 64.7 metres grading 5.4 g/t Au and 28.3 metres of 5.9 g/t Au. High grade mineralization remains open at depth within the Acma and Lewis deposits.
In order for Placer Dome to earn an additional 40% interest in the project from NovaGold, Placer Dome must spend US$32 million toward project development, complete a bankable feasibility study, and make a positive decision to construct a mine to produce not less than 600,000 oz of gold per year on or before November 2007. During the development period NovaGold is not required to contribute any additional funding until Placer Dome invests at least US$32 million.
More details and maps of the Donlin Creek project are available at www.NovaGold.net.