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NovaGold Increases Gold Reserve at Donlin Creek

Written By Luke Burgess

Posted March 22, 2010

NovaGold Resources Inc. (AMEX: NG) reported an update on the reserve and resource estimate for its Donlin Creek gold project. Donlin Creek is owned equally by NovaGold and Barrick Gold (NYSE: ABX). 

The updated reserve/resource estimate for Donlin Creek incorporates the results from 62 new drill holes totaling 25,094 meters for a total of 1,740 drill holes totaling 370,000 meters. These results increased in-situ gold reserves by 4.3 million ounces to 33.6 million ounces of gold. NovaGold’s 50% interest totals 16.8 million ounces of gold reserves, with an additional 2.1 million ounces of measured and indicated gold resources and 2.2 million ounces of inferred gold resources.

As per National Instrument 43-101, the Donlin Creek reserve/resource estimates are as follows:


The new reserve estimate represents a 15% increase over the 29.3 million ounce reserve estimate contained in a 2009 feasibility study. The increase in reserves is expected to extend the mine life from 21 years to 25 years at the feasibility production rate.

Luke Burgess
Editor, Wealth Daily