VANCOUVER NOVAGOLD RESOURCES raised $20 million from the sale of flow-through shares, the company announced at the end of October. Each share was priced at $10.10, a much higher price that usually associated with such underwritings. The gross proceeds will be used to advance the Galore Creek gold/copper project in the Stikine Gold Belt of British Columbia.
NovaGold says Galore Creek is one of the largest and highest-grade alkalic intrusive-related gold/silver/copper deposits in North America. The company says it has a resource of 385 million tonnes containing 5.2 million oz of gold, 67.3 million oz of silver, and 5.8 billion lb of copperthe equivalent of a 20-million-oz gold deposit. Average grades are 1.6 g/t Au equivalent or 1.0% Cu equivalent.
The preliminary economic assessment for Galore Creek indicated the potential to recover at least 2.4 million oz of gold, 32.3 million oz of silver plus 3.3 billion lb of copper during a 23-year mine life.
NovaGold is earning a 100% interest in the property from subsidiaries of Rio Tinto and Anglo American. It is also seeking an 80% interest in two adjoining properties. NovaGold has held community meetings concerning Galore Creek and received support for its plans. The pre-feasibility study is due by mid-2005. The preliminary economic assessment report has been filed with SEDAR and may be accessed from www.NovaGold.net by following links in the Galore Creek project section.