NovaGold Resources Inc.
AMEX : NG
TSX : NG

NovaGold Resources Inc.

October 02, 2007 09:07 ET

NovaGold Initiates Testing of Crushing Circuit at Rock Creek Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2007) - NovaGold Resources Inc. (TSX:NG)(AMEX:NG) today announced that it has started testing of the crushing circuit at its Rock Creek mine near Nome, Alaska.

"We have achieved significant progress at Rock Creek this summer," said Doug Nicholson, Vice President NovaGold Alaska and General Manager Alaska Gold Company. "We continue to develop the open pit and stockpile ore, with waste rock being used for construction of the tailings facility, roads and other facilities. The mill buildings are enclosed, all of our equipment is in place and we have begun testing of the processing circuits, focusing initially on the crushing system."

"The start of testing at Rock Creek is an important milestone as NovaGold transitions from explorer to producer," said Rick Van Nieuwenhuyse, President & CEO of NovaGold. "With first production by year end at an estimated 100,000 ounces of annual production when fully operational, NovaGold is well on the way to achieving its business plan of becoming a quality, North American, mid-tier gold and copper producer. With Rock Creek in production NovaGold expects to be operationally cash flow positive, generating cash flows of $25 to $30 million annually."

About the Rock Creek Project

The Rock Creek project is located 12 km (7 miles) from the town of Nome, Alaska on 5,700 hectares (14,000 acres) of patented private land owned 100% by NovaGold and 8,100 hectares (20,000 acres) of land owned by the Bering Straits and Sitnasuak Native Corporations. NovaGold has a mining lease with Bering Straits, the first mining lease for lode gold signed with a Native Corporation under the Alaska Native Claims Settlement Act, and a Surface Use Agreement with Sitnasuak.

Construction earthworks activities began on August 22, 2006, upon receipt of final permits and Board approval. First concrete pours occurred by year-end 2006. The Rock Creek mine will be developed as a 7,000 tonnes-per-day year-round conventional open-pit operation producing approximately 100,000 ounces of gold annually with total cash costs estimated at less than US$300 per ounce.

The project is accessed by state-maintained roads and benefits from the presence of the nearby town-site infrastructure and power. Simple mining and processing, modest capital costs and significant resource expansion potential makes Rock Creek an ideal project for NovaGold to transition from an exploration-stage company to a gold producer.

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 is rapidly moving to production at its 100%-owned Nome Operations in Alaska, which includes Rock Creek, Big Hurrah and Nome Gold. NovaGold and Teck Cominco have created a 50/50 partnership to build the Galore Creek copper-gold mine in northwestern British Columbia. NovaGold owns 70% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits, in a joint venture with Barrick Gold (30%). 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 anticipated construction and production and other milestones and NovaGold's future operating or financial performance, 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 uncertainties involved in litigation concerning permitting at the Rock Creek project; the need for cooperation of government agencies and native groups in the exploration and development of the Rock Creek property; and other risks and uncertainties disclosed in NovaGold's Annual Information Form for the year ended November 30, 2006, 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.

Contact Information

  • NovaGold Resources Inc.
    Greg Johnson, Vice President,
    Corporate Communications & Strategic Development
    (604) 669-6227 or 1-866-669-6227
    or
    NovaGold Resources Inc.
    Rhylin Bailie
    Manager, Corporate & Investor Relations
    (604) 669-6227 or 1-866-669-6227
    Email: info@novagold.net
    Website: www.novagold.net