NOVAGOLD Reports Discovery of 700-Meter Legacy Zone at Galore Creek Drilling Extends Mineralization Substantially Beyond the Pit

NOVAGOLD Reports Discovery of 700-Meter Legacy Zone at Galore Creek Drilling 
Extends Mineralization Substantially Beyond the Pit Limits 
-- 27,900-Meter Drill Program Expected to Result in Increased
Resource and Will Support Future Mine Design  
-- Significant Intercepts, Including 86 Meters Grading 1.31% Cu and
0.46 g/t Au, Lead to the Discovery of the New Legacy Zone Adjacent to
Central Pit 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/25/13 -- NOVAGOLD
RESOURCES INC. (TSX:NG)(NYSE MKT:NG) announced the results of a
27,873-meter resource in-fill and geotechnical drilling program
conducted during 2012 on its 50%-owned Galore Creek project, a large
copper-gold-silver project located in the Territory of the Tahltan
Nation in northwestern British Columbia, Canada. The Galore Creek
property is held by a partnership in which NOVAGOLD and Teck
Resources Inc. ("Teck") each own a 50% interest. NOVAGOLD published
the Galore Creek Pre-Feasibility study (PFS) on July 27, 2011. The
2012 in-fill drilling campaign not only confirmed previously reported
drill results but, more importantly, demonstrated the potential for
substantial extension of the mineralized area beyond the limits of
the current PFS pit. Additionally, Galore Creek Mining Company
(GCMC), operator of the project, made a new discovery called the
Legacy zone, a 700-meter long mineralized zone, as currently defined
by drilling, that remains open in all directions and is located
adjacent to the Central Pit.  
The objectives of the 2012 drill program were to: 


 
1.  Upgrade Inferred resources to Measured and Indicated classification;
      
2.  Obtain geotechnical data to support future mine planning and
    engineering; and
      
3.  Support preparation of a new resource estimate for feasibility-level
    mine planning and design. 

 
GCMC completed 4,580 meters of geotechnical, hydrogeological, and
overburden drilling to support future mine planning and engineering.
In addition, a series of resource in-fill holes, totaling 23,293
meters, were completed within the Central Pit.  
Highlights include: 


 
--  Discovery of the new Legacy zone; which includes the following
    intercepts:
    
    GC12-0849 intersected 86 meters grading 1.31% copper, 0.46 g/t gold and
    6.0g/t silver
    GC12-0886 intersected 245 meters grading 0.83% copper, 0.15 g/t gold and
    7.2 g/t silver
    GC12-0877 intersected 101 meters grading 1.01% copper, 0.39 g/t gold and
    5.6 g/t silver
    GC12-0845 intersected 229 meters grading 0.55% copper, 0.17 g/t gold and
    7.2 g/t silver 
 
--  Multiple significant intersections from the Central Pit (including
    Bountiful zone) resource in-fill program:
    
    GC12-0847 intersected 122 meters grading 1.02% copper, 0.28 g/t gold and
    9.1 g/t silver
    GC12-0842 intersected 207 meters grading 0.84% copper, 0.21g/t gold and
    9.3 g/t silver
    GC12-0838 intersected 193 meters grading 0.59% copper, 0.18 g/t gold and
    5.8 g/t silver 

 
"Last year's exploration program yielded excellent drill results with
impressive widths and gold grades which have extended the
mineralization well beyond the current pit," said Greg Lang,
NOVAGOLD's President and Chief Executive Officer. "More importantly,
2012 drilling at Galore Creek led to the discovery of the new Legacy
zone located in close proximity to the projected pit. With these
positive drill results, we are now well positioned to update our
reserves and resources and further improve the overall economics of
this project as we pursue the sale of our share of this exceptional
asset. If developed as envisioned in the PFS, Galore Creek is
expected to become the largest and lowest-cost copper mine in Canada,
one of the last geo-politically safe jurisdictions where copper
miners can build new mines. This factor is particularly important
considering the critical challenges copper miners face today in
jurisdictions such as the Democratic Republic of Congo, Indonesia,
Argentina, Mongolia and Peru." 
The Galore Creek PFS outlined a large-scale open-pit mine with a
conventional 95,000-tonne-per-day milling and concentrating facility.
The PFS was based on Proven and Probable mineral reserves totaling
528 million tonnes grading 0.59% copper, 0.32 grams per tonne gold
and 6.02 grams per tonne silver. Measured and Indicated mineral
resources, exclusive of reserves totaled 287 million tonnes grading
0.33% copper, 0.27 grams per tonnes gold and 3.64 grams per tonne
silver and Inferred mineral resources totaled 347 million tonnes
grading 0.42% copper, 0.24 grams per tonne gold, and 4.28 grams per
tonne silver. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. The 2011 PFS, evaluated on a
100% basis, yielded a Net Present Value ("NPV7%") of $837 million and
$137 million on a pre-tax and post-tax basis, respectively using the
base case metal price assumptions of US$2.65/lb copper, US$1,100/oz
gold and US$18.50/oz silver and exchange rates of US$0.91 = Cdn$1.00.
In the current commodity price environment, assuming US$3.50/lb
copper, US$1,600/oz gold and US$30.00/oz silver and keeping the
exchange rate the same as in the PFS, the NPV7% of Galore Creek would
be assessed at $4,145 million and $2,383 million on a pre-tax and
post-tax basis, respectively. 
During 2012, a total of 46 resource in-fill drill holes totaling
23,293 meters were completed as part of the program and the Company
received all assay results. Thirty-one drill holes encountered 59
high-grade mineralized intervals with the significant intercepts
shown in Table 1 below. Drilling in 2012 supports the extension of,
and defines the northern limits of copper mineralization in the
Bountiful Zone (see Figure 1 below). Mineralization remains open at
depth within and adjacent to the Central Pit. Four drill holes were
abandoned prior to reaching their target depth.  
The newly discovered Legacy zone, a 700-meter long mineralized zone,
currently open in all directions and located approximately 300 meters
north east of Bountiful and adjacent to the Central Pit, will be the
focus of a 10,000 meter exploration drill program in 2013. NOVAGOLD's
50% share of Galore Creek's 2013 budget is $8 million which includes
updating the resource model with the latest 2012 drill results; as
well as drilling to further define the extent of the Legacy
mineralization, and assess its impact on future mine design. 
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/ng225i.pdf.  
Galore Creek model showing pit shapes, drill holes and changes to
wireframes defining mineralization based on 2012 drilling.  


 
Table 1: Galore Creek Significant Drill Intervals                           
                                                                            
Hole ID      From (m)   To (m)   Al (m)   Cu % Au g/t Ag g/t Area           
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0837        7.36    57.20    49.84   0.73   0.10    7.6 Legacy         
GC12-0837      201.00   240.00    39.00   0.36   0.05    5.5 Legacy         
GC12-0837      260.00   304.00    44.00   0.36   0.06    6.7 Legacy         
GC12-0845      128.00   357.00   229.00   0.55   0.17    7.2 Legacy         
GC12-0845      453.00   513.00    60.00   0.59   0.14    5.1 Legacy         
GC12-0845      525.00   551.00    26.00   0.73   0.23    6.2 Legacy         
GC12-0849       39.00    74.00    35.00   0.64   0.24    7.6 Legacy         
GC12-0849      100.00   163.00    63.00   0.44   0.12    9.1 Legacy         
GC12-0849      269.00   355.50    86.50   1.31   0.46    6.0 Legacy         
GC12-0854       92.00   162.80    70.80   0.58   0.31    6.4 Legacy         
GC12-0858      261.50   377.00   115.50   0.44   0.12    6.1 Legacy         
GC12-0877      143.00   173.00    30.00   0.53   0.24    6.4 Legacy         
GC12-0877      184.00   280.00    96.00   0.90   0.20    6.8 Legacy         
GC12-0877      344.00   445.00   101.00   1.01   0.39    5.6 Legacy         
GC12-0882      181.50   270.00    88.50   0.61   0.11    6.6 Legacy         
GC12-0884      221.00   318.00    97.00   0.70   0.16    6.4 Legacy         
GC12-0884      467.00   518.00    51.00   1.06   0.43    7.6 Legacy         
GC12-0886      323.00   568.00   245.00   0.83   0.15    7.2 Legacy         
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0838      322.00   515.16   193.16   0.59   0.18    5.8 Bountiful      
GC12-0838      550.42   606.04    55.62   0.42   0.09    5.9 Bountiful      
GC12-0839       76.00   101.50    25.50   0.64   0.20    3.7 Bountiful      
GC12-0839      143.00   187.00    44.00   0.47   0.22    4.0 Bountiful      
GC12-0839      254.50   316.00    61.50   0.94   0.38    7.8 Bountiful      
GC12-0843       56.00   134.00    78.00   0.35   0.07    5.3 Bountiful      
GC12-0843      299.00   354.00    55.00   0.55   0.09    5.5 Bountiful      
GC12-0843      452.00   480.00    28.00   0.60   0.14    6.4 Bountiful      
GC12-0844      363.00   383.63    20.63   0.52   0.10    6.3 Bountiful      
GC12-0844      453.90   489.00    35.10   0.81   0.30   12.3 Bountiful      
GC12-0847      339.70   462.00   122.30   1.02   0.28    9.1 Bountiful      
GC12-0847      528.50   685.70   157.20   0.42   0.23    4.7 Bountiful      
GC12-0847      698.90   734.30    35.40   0.51   0.13    5.3 Bountiful      
GC12-0851       28.10    79.00    50.90   2.40   0.17   14.3 Bountiful      
GC12-0851       91.00   162.00    71.00   1.37   0.09    8.3 Bountiful      
GC12-0851      234.00   299.00    65.00   0.56   0.15    6.1 Bountiful      
GC12-0851      340.00   379.50    39.50   0.75   0.14    7.3 Bountiful      
GC12-0851      534.00   584.90    50.90   0.38   0.12    7.1 Bountiful      
GC12-0851      669.65   698.00    28.35   0.36   0.09    5.9 Bountiful      
GC12-0856      119.50   185.00    65.50   0.43   0.06    4.7 Bountiful      
GC12-0856      268.92   322.25    53.33   0.38   0.14    8.5 Bountiful      
GC12-0862       24.00    48.20    24.20   0.36   0.13    2.9 Bountiful      
GC12-0867      439.25   516.00    76.75   0.44   0.17    4.1 Bountiful      
GC12-0869      183.00   223.54    40.54   0.62   0.12    5.8 Bountiful      
GC12-0872      228.00   273.00    45.00   0.66   0.09    4.6 Bountiful      
GC12-0873      107.00   225.00   118.00   0.56   0.10    4.9 Bountiful      
GC12-0878      158.00   211.00    53.00   0.40   0.07    5.2 Bountiful      
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0852a      34.00    57.50    23.50   1.95   0.51   11.1 Central - South
GC12-0868       24.00    82.80    58.80   2.86   1.22   10.5 Central - South
GC12-0868a      24.50    86.00    61.50   2.79   1.12   10.6 Central - South
GC12-0883       15.80    90.50    74.70   2.38   0.60   11.2 Central - South
----------------------------------------------------------------------------
----------------------------------------------------------------------------
GC12-0840      485.00   661.00   176.00   0.50   0.21    3.7 Central - North
GC12-0842       33.00   240.00   207.00   0.84   0.21    9.3 Central - North
GC12-0842      256.00   289.02    33.02   0.45   3.47    9.3 Central - North
GC12-0850       77.50   107.50    30.00   0.37   0.42    1.9 Central - North
GC12-0852      270.00   383.00   113.00   0.91   0.14   10.0 Central - North
GC12-0857        5.00    26.00    21.00   0.60   0.11    5.2 Central - North
GC12-0857       87.94   124.00    36.06   1.83   0.18   21.1 Central - North
GC12-0857      197.00   243.27    46.27   0.62   0.09    9.8 Central - North
GC12-0883      320.00   356.20    36.20   0.35   0.11    4.8 Central - North
GC12-0883      407.63   460.00    52.37   0.68   0.20    8.5 Central - North
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Footnotes to Drill Interval Table:                                          
 
1.  AI = Continuous Assayed Interval (meters) 
2.  Results are core intervals and not true thickness. 
3.  Significant interval defined as a minimum 20.0 meter Cu interval with
    average grade greater than 0.35% Cu. 
4.  Cutoff grade of 0.2% Cu. 
5.  Internal dilution up to eight continuous meters of less than 0.2% Cu. 
6.  Intervals of less than 20m and/or less than 0.35% Cu, not reported. 
7.  Some rounding errors may occur. 

 
Quality Control 
The drill program and sampling protocol were managed by qualified
persons employed by GCMC. The diamond drill holes were typically
collared using HQ diameter drill core and reduced to NQ diameter
during the drilling process. Samples were collected using a 0.5-meter
minimum length and three-meter maximum length with 2.5-meters being
the average sample length. Drill core recovery averaged 95%. Three
quality control samples (one blank, one standard and one duplicate)
were inserted into each batch of 20 samples. The drill core was sawn,
with half sent to ALS Minerals in Terrace for sample preparation and
the sample pulps forwarded to ALS Minerals' North Vancouver facility
for analysis. ALS Minerals is certified as ISO 9001:2008 and
accredited to ISO / IEC 17025:2005 from the Standards Council of
Canada.  
Qualified Person 
Erin Workman, Director of Technical Services for NovaCopper Inc., and
a consultant to NOVAGOLD, is a Qualified Person as defined by
National Instrument 43-101. Ms. Workman has reviewed the results of
the drill program and confirmed that all procedures, protocols and
methodologies used in the drill program conform to industry standards
and approves the disclosure contained herein.  
About NOVAGOLD  
NOVAGOLD is a well-financed precious metals company engaged in the
exploration and development of mineral properties in North America.
Its flagship asset is the 50%-owned Donlin Gold project in Alaska,
one of the safest jurisdictions in the world. With approximately 39
million ounces(1) of gold in the Measured and Indicated resource
categories (541 million tonnes at an average grade of approximately
2.2 grams per tonne), Donlin Gold is regarded to be one of the
largest, and most prospective known gold deposits in the world.
According to the updated Feasibility Study, once in production,
Donlin Gold should average approximately 1.5 million ounces of gold
per year for the first five years, followed by decades of more than
one million ounces per year. The Donlin Gold project has substantial
exploration potential beyond the designed footprint which currently
covers only three kilometers of an approximately eight-kilometer
strike length of the property. Permitting is underway for the Donlin
Gold project, a clearly defined process expected to take 3-4 years.
NOVAGOLD also owns 50% of the Galore Creek copper-gold-silver project
located in northern British Columbia. According to the 2011
Pre-Feasibility Study, Galore Creek is expected to be the largest
copper mine in Canada, a tier-one jurisdiction, when it is put into
production. NOVAGOLD is currently evaluating opportunities to sell
all or a portion of its interest in Galore Creek and would apply the
proceeds toward the development of Donlin Gold. NOVAGOLD has a strong
track record of forging collaborative partnerships, both with local
communities and with major mining companies. 
Please note: As part of the rebranding, NOVAGOLD has converted its
primary domain to .com from .net, therefore, our website can now be
accessed at www.NOVAGOLD.com and all email formats within NOVAGOLD
are now firstname.lastname@NOVAGOLD.com. Please update your contacts
accordingly. 
Scientific and Technical Information 
Certain scientific and technical information contained herein with
respect to Galore Creek is derived from the technical report entitled
"Galore Creek Project British Columbia NI 43-101 Technical Report on
Pre-Feasibility Study" dated effective July 27, 2011. The Qualified
Persons responsible for the preparation of the independent technical
report are Robert Gill, P.Eng., Principal Consultant and Study
Manager (AMEC Americas Limited), Greg Kulla, P. Geo., Principal
Geologist (AMEC Americas Limited), Gregory Wortman, P. Eng.,
Technical Director Process (AMEC Americas Limited), Jay Melnyk, P.
Eng. (AMEC Americas Limited), and Dana Rogers, P.E., Principal
Tunnelling Engineer (Lemley International), each of whom are
independent "qualified persons" as defined by NI 43-101.  
Scientific and technical information contained herein with respect to
Donlin Gold is derived from the "Donlin Creek Gold Project Alaska,
USA NI 43-101 Technical Report on Second Updated Feasibility Study"
compiled by AMEC. Kirk Hanson, P.E., Technical Director, Open Pit
Mining, North America, (AMEC, Reno), Gordon Seibel, R.M. SME,
Principal Geologist, (AMEC, Reno), Tony Lipiec, P.Eng. Manager
Process Engineering (AMEC, Vancouver) are the Qualified Persons
responsible for the preparation of the independent technical report,
each of whom are independent "qualified persons" as defined by NI
43-101. 
Cautionary Note Regarding Forward-Looking Statements 
This press release includes certain "forward-looking information" and
"forward-looking statements" (collectively "forward-looking
statements") within the meaning of applicable securities legislation,
including the United States Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical fact,
included herein including, without limitation, the timing of
permitting and potential development of Donlin Gold, statements
relating to NOVAGOLD's future operating and financial performance,
outlook, and the potential sale of all or part of NOVAGOLD's interest
in Galore Creek are forward-looking statements. Forward-looking
statements are frequently, but not always, identified by words such
as "expects", "anticipates", "believes", "intends", "estimates",
"potential", "possible", and similar expressions, or statements that
events, conditions, or results "will", "may", "could", or "should"
occur or be achieved. These forward-looking statements may include
statements regarding perceived merit of properties; exploration
results and budgets; mineral reserves and resource estimates; work
programs; capital expenditures; timelines; strategic plans;
completion of transactions; market prices for precious and base
metals; intended use of proceeds; or other statements that are not
statements of fact. 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 the uncertainties
involving the need for additional financing to explore and develop
properties and availability of financing in the debt and capital
markets; uncertainties involved in the interpretation of drilling
results and geological tests and the estimation of reserves and
resources; the need for continued cooperation with Barrick Gold
Corporation and Teck Resources Limited for the continued exploration
and development of the Donlin Gold and Galore Creek properties; the
need for cooperation of government agencies and native groups in the
development and operation of properties; the need to obtain permits
and governmental approvals; risks of construction and mining projects
such as accidents, equipment breakdowns, bad weather, non-compliance
with environmental and permit requirements, unanticipated variation
in geological structures, ore grades or recovery rates; unexpected
cost increases, which could include significant increases in
estimated capital and operating costs; fluctuations in metal prices
and currency exchange rates; and other risk and uncertainties
disclosed in NOVAGOLD's Annual Information Form for the year-ended
November 30, 2012, 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. NOVAGOLD's forward-looking
statements reflect the beliefs, opinions and projections on the date
the statements are made. NOVAGOLD assumes no obligation to update the
forward-looking statements of beliefs, opinions, projections, or
other factors, should they change, except as required by law. 
Cautionary Note to United States Investors 
This press release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ
from the requirements of U.S. securities laws. Unless otherwise
indicated, all resource and reserve estimates included in this press
release have been prepared in accordance with National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and
the Canadian Institute of Mining, Metallurgy, and Petroleum
Definition Standards on Mineral Resources and Mineral Reserves. NI
43-101 is a rule developed by the Canadian Securities Administrators
which establishes standards for all public disclosure an issuer makes
of scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United States Securities and Exchange
Commission ("SEC"), and resource and reserve information contained
herein may not be comparable to similar information disclosed by U.S.
companies.  
In particular, and without limiting the generality of the foregoing,
the term "resource" does not equate to the term "reserves". Under
U.S. standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization could
be economically and legally produced or extracted at the time the
reserve determination is made. The SEC's disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute "reserves"
by U.S. standards in documents filed with the SEC. Investors are
cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves. U.S. investors
should also understand that "inferred mineral resources" have a great
amount of uncertainty as to their existence and great uncertainty as
to their economic and legal feasibility. It cannot be assumed that
all or any part of an "inferred mineral resource" will ever be
upgraded to a higher category. Under Canadian rules, estimated
"inferred mineral resources" may not form the basis of feasibility or
pre-feasibility studies except in rare cases. Investors are cautioned
not to assume that all or any part of an "inferred mineral resource"
exists or is economically or legally mineable. Disclosure of
"contained ounces" in a resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits issuers
to report mineralization that does not constitute "reserves" by SEC
standards as in-place tonnage and grade without reference to unit
measures. The requirements of NI 43-101 for identification of
"reserves" are also not the same as those of the SEC, and reserves
reported by NOVAGOLD in compliance with NI 43-101 may not qualify as
"reserves" under SEC standards. Accordingly, information concerning
mineral deposits set forth herein may not be comparable with
information made public by companies that report in accordance with
U.S. standards. 
(1) Measured and indicated resources of 0.63 million ounces and 38.38
million ounces respectively (541 million tonnes at an average grade
of approximately 2.2 grams per tonne) are inclusive of 0.57 million
ounces proven and 33.28 million ounces probable reserves (504.8
million tonnes at an average grade of approximately2.09 grams per
tonne).
Contacts:
NOVAGOLD RESOURCES INC.
Mélanie Hennessey
Vice President, Corporate Communications
604-669-6227 or 1-866-669-6227 
NOVAGOLD RESOURCES INC
Erin O'Toole
Analyst, Investor Relations
604-669-6227 or 1-866-669-6227
www.novagold.com
 
 
Press spacebar to pause and continue. Press esc to stop.