NovaGold Resources Inc.

NovaGold Resources Inc.

January 10, 2005 11:19 ET

Copper Canyon Adds 2.8 Million Ounces Gold, 37 Million Ounces Silver and 1.1 Billion Pounds Copper to NovaGold's Galore Creek Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NOVAGOLD RESOURCES INC.

TSX, AMEX SYMBOL: NG

JANUARY 10, 2005 - 11:19 ET

Copper Canyon Adds 2.8 Million Ounces Gold, 37 Million
Ounces Silver and 1.1 Billion Pounds Copper to
NovaGold's Galore Creek Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2005) - NovaGold
Resources Inc. (TSX:NG) (AMEX:NG)

Highlights

- A significant new Inferred Category gold, silver and copper resource
has been defined on the Copper Canyon property located 5 kilometers east
of the main Central zone deposit at the Galore Creek Project in
Northwestern British Columbia.

- This new resource substantially expands the previously reported
resources for Galore Creek. The Copper Canyon deposit remains open to
expansion in all directions and at depth and further definition and
expansion drilling is planned in 2005.

- The independent resource estimate at Copper Canyon is the first of
three new target area resource estimates currently in progress for the
Galore Creek project. Initial resource estimates for the Junction and
West Fork deposits, and an update on the main Central/Southwest deposit
are anticipated to be completed during the remainder of the quarter.

2004 Drilling Defines New Gold, Silver and Copper Resource at Copper
Canyon

A significant new Inferred Category resource estimate completed by
independent engineering firm, Hatch Ltd. of Vancouver, B.C., Canada,
shows that the Copper Canyon target at the Galore Creek project in
Northwestern British Columbia contains over 2.86 million ounces of gold,
37.9 million ounces of silver and 1.16 billion pounds of copper at a
0.35% copper equivalent cut-off grade (CuEq)(1) (See Table 1 below).
Copper Equivalent grades are based both on long-term average metal
prices and estimated recoveries based on extensive metallurgical data
from the adjacent Galore Creek Central/SW deposit. The estimate utilized
a geologic model developed from the previously announced drilling at
Copper Canyon during 2004 by NovaGold and historic results which had
encountered significant widths of gold, silver and copper mineralization.



Table 1 : COPPER CANYON TARGET - INFERRED RESOURCE
---------------------------------------------------------------------
Million Million Million
Cutoff Size Grade lbs. Ozs Ozs
---------------------------------------------------------------------
Cu Au Ag CuEq
CuEq(%) M Tonnes (%) (g/t) (g/t) (%) Cu Au Ag
---------------------------------------------------------------------
0.35 164.8 0.35 0.54 7.15 0.74 1,160 2.86 37.91
---------------------------------------------------------------------
0.50 116.1 0.41 0.64 8.30 0.87 950 2.39 30.98
---------------------------------------------------------------------
0.70 63.0 0.50 0.86 10.21 1.11 625 1.73 20.68
---------------------------------------------------------------------
1.00 29.2 0.65 1.14 13.03 1.45 381 1.07 12.23
---------------------------------------------------------------------
1.30 15.6 0.83 1.32 15.70 1.72 258 0.66 7.87
---------------------------------------------------------------------
Note: (1) Copper equivalent calculations use metal prices of
US$375/oz for gold, US$5.50/oz for silver and US$0.90/lb for copper.
Copper equivalent calculations (CuEq%) reflect gross metal content
that have been adjusted for metallurgical recoveries based on the
following criteria: Copper Recovery equals (%Cu-0.06)/%Cu with a
minimum of 50% and Maximum of 95%; Gold Recovery equals
(Au g/t - 0.14)/Au g/t with a minimum of 30% and Maximum of 80%; and
Silver Recovery equals 80%.


NovaGold may acquire up to an 80% interest in the Copper Canyon property
under an option from Eagle Plains Resources (TSX VENTURE:EPL). The
property directly adjoins the main Galore Creek property and NovaGold is
exploring Copper Canyon as part of its overall Galore Creek project.

The results from the 2004 drilling at Copper Canyon, combined with the
earlier results, have defined a broad area of precious metal rich
mineralization at least 700 meters by 400 meters which is open to
expansion in all directions and at depth. The mineralization begins at
surface continuing to as much as 300 meters depth and occurs as a
roughly 100+ meter thick zone of disseminated chalcopyrite and pyrite
hosted within an intrusive porphyry complex.

The new resource estimate was based on a three-dimensional geologic and
mineralization model that integrates 6,850 meters (22,500 feet) of
drilling in 21 core holes with a total of 4,749 assays. Grades for the
block model were estimated using ordinary kriging procedures.
Mineralization was composited on 6 meter intervals with high-grade
samples capped based on lognormal probability plots. Due to the
relatively widespread spacing of the drilling at Copper Canyon all
resources in this estimate were classified as Inferred.

The drill program and sampling protocol were completed with oversight by
qualified person Scott Petsel, Senior Project Geologist for NovaGold. A
rigorous quality control and quality assurance protocol was utilized on
the project including blank and reference samples with each batch of
assays. All NovaGold drill samples were analyzed by fire assay at ALS
Chemex Labs in Vancouver, B.C., Canada. Database quality control and
quality assurance standards were overseen by Hatch Ltd. The independent
resource estimation by Hatch Ltd. was under the direction and oversight
of qualified persons Gary Giroux and Robert Morris, Hatch Ltd.,
Vancouver, B.C., Canada. A detailed 43-101 compliant technical report
will be completed on the resource estimate within 30 days.

New Target Resources Support Expansion of Galore Creek Preliminary
Economic Assessment Base Case

The new inferred resource estimate for the Copper Canyon deposit is the
first of three new target area resources underway for the Galore Creek
project and demonstrates the continued potential to expand the known
resources at Galore Creek. The Preliminary Economic Assessment completed
in August, 2004 by independent engineering firm Hatch Ltd., did not
include any mineralization from Copper Canyon, West Fork, or Junction
target areas, all of which are anticipated to contain significant
additional resources based on 2004 drill results. In addition to this
new resource at the Copper Canyon target new resource estimates from the
Junction, West Fork and main Central/Southwest deposits are anticipated
to be completed during the remainder of the first quarter.

The definition of these new resources at Galore Creek are significant in
that they support the expansion of the project parameters beyond the
base case presented in the August 2004 Preliminary Economic Assessment
study. The base case in that study showed that at a production level of
30,000 tonnes per day or 11 million tonnes per year, the Galore Creek
project has the potential in the first 5 years of production to average
270,000 ounces gold, 1.8 million ounces silver and 200 million lbs
copper annually at an average total co-product cash cost of $125/oz for
gold and $0.49/lb copper which is in the lower quartile of producer
costs. Based on the criteria presented in the study, each additional
year of higher-grade throughput averaging 1 g/t gold and 1% copper adds
US$175 million in annual operating cash flow using long term metal
prices of $375/oz gold, $5.50/oz Silver and $0.90/lb copper increasing
to over US$250 million in annual cash flow at recent prices of $425/oz
gold, $6.50/oz silver and $1.35/lb copper. The company is very
encouraged with results to date from Galore Creek and believe that
continued work in 2005 will positively impact the rate of return for the
project.

2005 Galore Creek Exploration and Development Program

Planning is currently underway for an expanded exploration and
development program at Galore Creek in 2005. The exploration program is
targeted to begin late-May continuing through fall with an increase to 8
core drills on site and a minimum of 50,000 meters (165,000 feet) of
drilling in preparation for a Feasibility Study in 2006.

As part of the current work on the project, Hatch Ltd. has been retained
to complete a Pre-Feasibility level study on Galore Creek that
integrates the new resources from West Fork, Junction, Copper Canyon
along with an updated main Central/Southwest deposit resource. The study
will look at increased yearly production levels for the project and will
refine estimates for capital and operating costs, as well as look in
more detail at site layout, metallurgy, resource optimization
scheduling, and development timelines. The results of this work will be
available in the second half of 2005 and will guide the Feasibility
level engineering programs for the project.

Work will concurrently proceed with further environmental studies for
the Galore Creek Environmental Assessment Report which is being
completed by RTEC the joint company comprised of Rescan Environmental
Services and the Tahltan Nation Development Corporation.

About the Galore Creek Project

The Galore Creek Project is located in Northwestern British Columbia
west of the Cassiar Highway and 150 kilometers northeast of the
tidewater shipping port of Stewart, British Columbia. NovaGold has an
option to acquire a 100% interest in the Galore Creek gold-silver-copper
project from subsidiaries of Rio Tinto plc and Anglo American plc.

NovaGold has an option agreement with Eagle Plains Resources Ltd. on the
adjoining Copper Canyon property under which NovaGold may acquire up to
an 80% interest. NovaGold also has an option on the adjoining Grace
property with Pioneer Metals Inc. under which NovaGold may acquire a 60%
interest in the Grace claims. NovaGold has also staked claims in the
surrounding area which it controls 100%. Including its claims staked in
the surrounding area which it controls 100%, NovaGold controls 42,385
hectares or 104,735 acres in the district.

About NovaGold

NovaGold is a precious metals company focused on the exploration and
development of high quality mineral properties in Alaska and Western
Canada. NovaGold is advancing four of the largest undeveloped resources
in North America: the Galore Creek gold-silver-copper project, the
Donlin Creek project in partnership with Placer Dome, the Ambler project
in partnership with subsidiaries of Rio Tinto and the Company's Nome,
Alaska Operations. NovaGold has 65.7 million shares outstanding, is well
financed with no long-term debt, and one of the largest resource bases
of any exploration or development stage precious metals company. More
information is available online at: www.novagold.net

Forward Looking Statements: This press release contains forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Forward looking statements are statements
that are not historical facts and are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements,
including, risks related to exploration stage of the Company's projects;
market fluctuations in prices for securities of exploration stage
companies; uncertainties about the availability of additional financing;
uncertainties related to fluctuations in gold prices and other risks and
uncertainties described in the Company's registration statement on Form
40-F and Reports on Form 6-K filed with the Securities and Exchange
Commission. Although we believe the expectations reflected in our
forward looking statements are reasonable, results may vary, and we
cannot guarantee future results, levels of activity, performance or
achievements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    NovaGold Resources Inc.
    Greg Johnson, Vice President,
    Corporate Communications and Strategic Development
    (604) 669-6227 or Toll Free 1-866-669-6227
    Email: Greg.Johnson@NovaGold.net
    or
    NovaGold Resources Inc.
    Don MacDonald, CA
    Senior VP & CFO
    (604) 669-6227 or Toll Free 1-866-669-6227
    Email: Don.MacDonald@NovaGold.net