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Thousands of People Keep Going Missing inside Alaska's Own Bermuda Triangle...
NovaGold Starts Gold Production at Rock Creek Mine in Nome, Alaska -
Friday September 19, 8:30 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 19, 2008 -- NovaGold Resources Inc. (Toronto:NG.TO - News)(NG - News) today announced that it has received regulatory authorizations and has begun production at its Rock Creek gold mine near Nome, Alaska. State regulators have approved the start of production, allowing NovaGold to begin fully processing ore and depositing inert tailings material into the Tailings Storage Facility. As part of the start up process under the regulatory authorization from the State of Alaska, NovaGold must complete a number of environmental and operational tasks over the next 15, 30 and 90 days to ensure compliance with environmental requirements for the mine.
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The Nome Operations team has been mining and stockpiling ore as part of the commissioning process, and has close to 450,000 tonnes of ore ready, representing approximately 2 months of full throughput. All components of the processing facility have been individually tested and commissioned. Production has begun on site and NovaGold anticipates ramping up throughput levels during the 4th Quarter of 2008.
Upon achieving full commercial production, the Rock Creek mine is expected to produce approximately 100,000 ounces of gold annually with life-of-mine cash costs estimated at approximately US$500 per ounce. At current metal prices, NovaGold anticipates generating $25 to $35 million in cash flow from Rock Creek on a yearly basis.
"We are very pleased with the start of gold operations in Nome for NovaGold," said Rick Van Nieuwenhuyse, President & CEO of NovaGold. "Achieving production at Rock Creek is a major step toward our long-term business plan of becoming a premier North American precious metals company. The Rock Creek construction and operations crews have worked closely with State and Federal regulators to assure that the project will meet its environmental guidelines even during challenging weather conditions. We believe that the extra time dedicated to commissioning and testing of the mill should facilitate a smooth Rock Creek mine ramp up to full production. The achievement of gold production and the resulting internally generated cash flow from the company's first mine is a major accomplishment for the entire NovaGold team."
The Rock Creek mine is a year-round, truck and shovel, conventional open-pit mining operation, designed to process 7,000 tonnes per day using a simple gravity, flotation and CIL recovery process. The Nome Operations, including the Rock Creek mine, has a proven and probable reserve of 510,000 ounces of gold, with 1.81 million ounces of measured and indicated resource and an additional inferred resource of 330,000 ounces of gold. NovaGold believes there is potential to expand production at the Nome operations and extend the mine life beyond 10 years. Exploration this year has focused on further evaluation of the potential to develop the Saddle, Big Hurrah and Nome Gold targets, where resources have already been identified. Drilling around the pit margin at Rock Creek has shown positive results with new gold mineralization identified from ongoing work.
About the Rock Creek Project
The Rock Creek mine is the first modern, open-pit "hardrock" mine on the Seward Peninsula. The 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. 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 costs and significant resource expansion potential makes Rock Creek an ideal project for NovaGold to transition from an exploration-development stage company to a gold producer.
About NovaGold
NovaGold is a precious metals company focused on exploration, development and mining, with mineral properties in Alaska and Western Canada. Production is scheduled for 2008 at the 100%-owned Nome Operations in Alaska, which includes the Rock Creek, Big Hurrah and Nome Gold deposits. NovaGold owns 50% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits, with Barrick Gold (50%). The Company also owns 50% of the Galore Creek copper-gold-silver project in British Columbia with Teck Cominco (50%). NovaGold has one of the largest resource bases of any junior or mid-tier level producing gold 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 the anticipated results of the Rock Creek mine, NovaGold's future operating or financial performance, and estimates of production, reserves and resources 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 environmental compliance and at the Rock Creek project; the need for cooperation of government agencies and native groups in the development and operation of the Rock Creek property; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in ore grades or recovery rates or cost increases, fluctuations in metal prices and currency exchange rates, 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. NovaGold's forward looking statements reflect the beliefs, opinions and projections on the date the statements are made. NovaGold assumes no obligation to update forward looking statements of management beliefs, opinions, projections, or other factors should they change.
Cautionary Note Concerning Reserve and Resource Estimates
This press release and other information released by NovaGold uses the terms "resources", "measured resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the "SEC") does not recognize them. Under United States 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Inferred resources are in addition to measured and indicated resources. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically.
National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained in this press release or released by NovaGold in the future, have been or will be prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. The requirements of NI 43-101 are 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 the SEC's standards.
Contact:
Contacts:
NovaGold Resources Inc.
Greg Johnson
Vice President, Strategic Development
(604) 669-6227 or 1-866-669-6227
NovaGold Resources Inc.
Don MacDonald
Senior Vice President and CFO
(604) 669-6227 or 1-866-669-6227
Website: http://www.novagold.net
Source: NovaGold Resources Inc.
http://biz.yahoo.com/iw/080919/0435688.html
God Bless America
Andover samples 25.37 oz/t Au, 177 opt Ag at Kuy
2006-11-13 16:44 ET - News Release
Mr. Mike England reports
ANDOVER FINDS 25.37 OPT GOLD AND 177 OPT SILVER AT KUY PROPERTY, ALASKA
Recently received analyses of 12 composite grab samples collected by Alaska Earth Sciences personnel in September at Andover Ventures Inc.'s Kuy prospect in southwestern Alaska have returned some strikingly high gold results. Twelve samples collected at one-metre intervals along a 15-centimetre to 30-centimetre (six-inch-to-12-inch)-wide quartz vein cutting Tertiary volcanic rocks on the property reported grades ranging from 6.52 parts per million (6.5 grams per tonne or 0.19 ounce per ton) to 869 parts per million (869 grams per tonne or 27.4 ounces per ton) gold as summarized in the table below.
KUY PROSPECT QUARTZ VEIN SAMPLES*
Sample No. Distance Au Au Ag Ag Te Cu
along
strike
(metres) (ppm) (opt) (ppm) (opt) (ppm) (ppm)
322663 0-1 7.55 0.22 24.1 0.7 20 1,410
322664 1-2 122.5 3.58 446 13.01 340 1,070
322665 2-3 40.7 1.19 95 2.77 80 1,750
322666 3-4 12.15 0.35 37.5 1.09 30 1,170
322667 4-5 103.5 3.02 287 8.37 250 1,460
322668 5-6 6.98 0.2 28.6 0.83 20 365
322669 6-7 6.52 0.19 15.6 0.46 10 211
322670 7-8 6.73 0.2 22 0.64 20 843
322671 8-9 14.95 0.44 46.2 1.35 30 1,160
322672 9-10 262 7.65 712 20.77 460 2,270
322673 10-11 869 25.37 6,090 177.63 4,590 1,540
322674 11-12 159.5 4.66 328 9.57 220 1,570
Constantine drills 5.12 m of 10.86% zinc in RW zone
2006-10-23 06:15 ET - News Release
Mr. Garfield MacVeigh reports
CONSTANTINE INTERSECTS 10.86% ZINC OVER 5.12 METERS IN PALMER PROJECT DRILLING
Constantine Metal Resources Ltd. has released partial analytical results from the recently completed portion of the phase 1 drill program on its high-grade, polymetallic massive sulphide Palmer project near Haines, Alaska.
Two of the three holes completed intersected high-grade zinc values in the RW zone. Hole CMR06-01 intersected 5.12 metres grading 10.86 per cent zinc, 0.13 per cent lead, 0.23 per cent copper, 0.134 gram per tonne gold and 44.4 grams per tonne silver, while hole CMR06-02 contained 19.5 per cent zinc over 0.79 metre of which 0.37 metre was recovered. An underlying pyrite-sphalerite stringer zone in hole CMR06-02 assayed 1.02 per cent zinc over 16.61 metres. Hole CMR06-01 is located 60 metres north of the near-surface oxidized intersection in hole RMC98-03 and is the first hole to confirm the interpretation that the leached and oxidized near-surface mineralization represents high-grade sulphide mineralization. This highlights the potential of the RW and Main zones oxide elsewhere. Hole CMR06-02 is located an additional 50 metres north of hole CMR06-01, and establishes a minimum north-south extent of the RW zone oxide and sulphide mineralization on this section of 220 metres. The RW zone is now indicated over a total east-west extent of 800 metres and a 375-metre north-south distance. More drilling is required to determine the continuity of mineralization within this area and to expand on the extent of the mineralization that remains open.
Drill hole CMR06-02 tested for the stratigraphically lower and deeper Main zone horizon, and intersected two-metre-wide intervals of stringer mineralization and alteration that may represent this zone. Hole CMR06-03 tested the RW horizon 120 metres west of hole CMR06-01 and contained an interval of rhyolite hosted massive pyrite stringers within the RW horizon. Analytical results for the lower portion of hole CMR06-02 and all of hole CMR06-03 are pending.
The phase 1 drilling program started in early August, concurrent with the completion of the company's IPO and listing on the TSX Venture Exchange and was terminated on Sept. 14, 2006. Only 829 metres of the planned 2,400-metre phase 1 drill program was completed prior to terminating the program prematurely due to poor drill productivity.
Surface geology and soil sampling were completed over selected parts of the property to establish and refine additional drill targets. Some of this work was directed to identifying lower elevation targets that will allow an extended drill season in 2007. After receipt of all analytical results, the company will further report on the geological interpretation and potential for the various zones within the Palmer project area. The 2006 drilling has confirmed the presence of potentially ore grade mineralization indicated in prior drilling and outcrop, and continues to outline the significance of the Glacier Creek prospect -- one of several high-quality prospects on the Palmer property.
The company is currently reviewing other precious and base metal projects in Canada and Alaska.
Samples of drill core were cut by a diamond-blade rock saw, with half of the cut core placed in individual sealed polyurethane bags and half placed back in the original core box for permanent storage. Samples were shipped by air freight in sealed woven plastic bags to ALS-Chemex laboratories, North Vancouver. ALS Chemex laboratories operate according to the guidelines set out in ISO/IEC Guide 25. Gold was determined by fire-assay fusion of a 30-gram subsample with atomic absorption spectroscopy (AAS). Various metals, including silver, gold, copper, lead and zinc, were analyzed by inductively-coupled plasma (ICP) atomic emission spectroscopy, following multiacid digestion. The elements copper, lead and zinc were determined by ore grade assay for samples that returned values over 10,000 parts per million by ICP analysis.
Andover intersects sulphides at Big Pig
2006-10-12 07:16 ET - News Release
Mr. Mike England reports
NOME DRILL PROGRAM UPDATE
Andover Ventures Inc. has completed four step-out HQ core holes at the Big Pig target on its Bulk gold project north of Nome, Alaska. Two of the holes intersected sulphide mineralization consistent with mineralization encountered in a vertical core hole drilled in year 2000 by a previous exploration company which assayed 0.5 gram per tonne gold over 48 feet (14.6 metres) from a depth of 10 to 58 feet (three to 17.6 metres).
Andover core hole 06BGDH-5, located approximately 200 feet (61 metres) northeast of the year 2000 hole, intersected about 40.5 feet (12.3 metres) of disseminated sulphide mineralization (pyrite plus/minus arsenopyrite plus/minus stibnite) from approximately 23 feet to 63.5 feet (seven to 19.4 metres). The sulphides occur disseminated in schist, meta-granite, altered brecciated carbonate and within and along thin quartz plus/minus feldspar plus/minus carbonate veinlets. The hole was stopped at 73.5 feet (22.4 metres) when a barren marble horizon was encountered.
Andover core hole 06BGDH-8 also intersected similar sulphide mineralization from approximately 169.5 feet to 188.8 feet (51.6 to 57.5 metres). 06BGDH-8 was drilled vertically about 100 feet (30.5 metres) to the northwest of hole 06BG-DH-5 to test for a northwest dip to the zone. Due to subfreezing weather conditions, the hole was stopped at 188.8 feet (57.5 metres) while still in mineralization.
Vertical hole 06BGDH-6 was collared about 200 feet (61 metres) to the southeast of the year 2000 hole and 06BGDH-7 was drilled vertically about 100 feet (30.5 metres) southeast of 06BGDH-5. Both holes were terminated at 19 feet (5.8 metres) and 29 feet (8.8 metres) respectively when only a barren marble horizon believed to be stratigraphically below the mineralization was encountered.
From this drilling combined with the year 2000 core hole, the Big Pig target appears possibly to be a northwesterly dipping, stratiform zone that is open in three directions. Samples are presently being cut and will be shipped to ALS Chemex Labs in Fairbanks for analysis preparation and then to North Vancouver for analysis.
Drilling on the property has now been suspended for the season due to weather conditions, but is intended to be resumed next spring or early summer after review of this year's work.
Marvin Mitchell, PEng, director of Andover Ventures and qualified person as defined by National Instrument 43-101, has approved the information contained in this release and is the qualified person for the project.
Brett drills 104 m of 0.24% tin at Sleitat Mountain
2006-10-05 10:12 ET - News Release
Mr. Thomas Hasek reports
BRETT'S ALASKA TIN DRILLING YIELDS ENCOURAGING INTERCEPTS
Brett Resources Inc. has released the results of the core drilling project completed in August at its Sleitat Mountain project in southeast Alaska. The five planned BTW (core diameter of 42 millimetres) holes all reached their target depths. All but one encountered substantial thickness of better than 0.2 per cent tin, including:
-104 metres of 0.24 per cent Sn and 6.48 grams Ag; and
-66 metres of 0.29 per cent Sn and 14.10 grams Ag.
http://www.brettresources.com
Andover plans to drill Big Pig target in Alaska
2006-10-02 10:05 ET - News Release
Mr. Michael England reports
ANDOVER FIELD UPDATE
Andover Ventures Inc. has now completed four short HQ core holes on the Dripping gold zone of its bulk gold project in the Nome mining district of Alaska. Samples from the drilling are being shipped to ALS Chemex labs in Fairbanks, Ala., for analysis. The track-mounted drill is being moved to the next target area of the property today.
The next target for drilling is a northeast-trending, 450-metre-long, gold-arsenic-antimony soil anomaly known as the Big Pig target zone. The only core hole drilled in the anomaly was drilled in year 2000 and encountered 48 feet (14.6 metres) of 0.5 gram per tonne (g/t) gold from 12 to 60 feet. Geologic interpretation suggests the possible existence of a large, strataform, bulk-minable body (deposit). Two to four holes are planned to step out from the previous drilled hole to further test the model.
Following completion of drilling at the Big Pig target, Andover plans to walk the drill to the northeast-trending, Dorothy Creek target. The Dorothy Creek target is a 1,000-plus-metre-long, gold-arsenic-antimony soil anomaly with soils up to over one gram per tonne.
The bulk gold project is road accessible from Nome, Ala., and is north of Nova Gold Resources' one-million-ounce Rock Creek lode gold deposit.
The company is expecting the first assay results in the near term from the recently completed drill program with Full Metal Minerals on the Kamishak property (see Stockwatch news Sept. 14, 2006).
The Kamishak property is located 20 kilometres west of Tidewater, 440 kilometres southwest of Anchorage and approximately 80 kilometres south of Northern Dynasty's Pebble deposit. The primary target is an intrusive-related breccia pipe with iron-oxide-hosted copper-gold mineralization. A previous operator completed 17 shallow core holes in the early 1990s in one of the two breccia zones.
Marvin Mitchell, PEng, director of Andover Ventures, and qualified person as defined by National Instrument 43-101, has approved the information contained in this release and is the qualified person for the project.
ANDOVER FIELD UPDATE
September 14, 2006
SEPTEMBER 14th, 2006, VANCOUVER, B.C. � ANDOVER VENTURES INC. (the "Company") (AOX-TSX:V) is pleased to announce it has begun mobilization of a track-mounted core drill to its Bulk Gold property approximately 38 Km north of Nome, Alaska. Drilling is expected to commence within the next several days.
The Bulk Gold property, acquired from Altar Resources Alaska, has seven identified target areas. Initially, approximately 600 meters of HQ core diameter drilling is planned and will focus on testing two targets, the Dripping Gold zone and the Dorothy Creek zone. The Dripping Gold zone is a 450-meter long trend containing anomalous soil samples up to 5.3 g/t gold. Grab samples of silicified, arsenopyrite bearing metagranite float have returned up to 4.5 g/t gold. The host rocks are Paleozoic schist and carbonate and Mesozoic metagranite. The Dorothy Creek zone contains anomalous soil up to over 1 g/t gold and is over 1000 meters long. Host rocks are also Paleozoic schist and carbonate and Mesozoic metagranite.
The Bulk Gold property is road accessible from the city of Nome, Alaska, which has daily passenger and freight air service from Anchorage and Fairbanks. Nova Gold Resources� 1M-ounce lode gold deposit at Rock Creek is 12 Km north of Nome and approximately 16 Km from Bulk Gold.
Marvin Mitchell, P.Eng, director of Andover Ventures Inc and qualified person as defined by National Instrument 43-101, has approved the information contained in this release and will be the Q.P. for the project.
Andover Ventures, with its experienced management team, is committed to increasing shareholder value by acquiring and exploring quality mineral properties in Alaska.
ON BEHALF OF THE BOARD
Signed "Michael England"
Michael England, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-683-3995
Facsimile: 1-604-683-3988
Contact: Michael England
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
Andover begins KUY work; waits for Kamishak assays
2006-09-13 11:25 ET - News Release
Mr. Michael England reports
ANDOVER FIELD UPDATE
Andover Ventures Inc. is providing an update on its work programs currently under way in Alaska.
Work has commenced on the recently acquired KUY property (as reported in Stockwatch on Aug. 24, 2006), located eight kilometres to the west of the Kamishak property. Two 1.5-mile (2.4-kilometre) induced polarization lines have been completed over a gold-bearing breccia pipe target (historic grab samples assay up to 71 grams per tonne gold). A large IP anomaly was detected. The KUY property is an epithermal gold-silver target, and located southwest of the village of Kokhanok in rocks of the Talkeetna arc. These samples are historic in nature, have not been verified by Andover Ventures and should not be relied upon.
At the Kamishak property, that Andover is jointly exploring with Full Metal Minerals Ltd., it was decided to expand the work program and drilling is now complete. A five hole, 2,925-foot (892-metre) core drilling program has now been completed. The drill holes confirmed the presence of porphyry-style copper-gold mineralization and alteration. Historic drilling encountered wide zones of mineralization up to 75 meters containing greater than 0.35 per cent copper and greater than one gram per tonne gold, plus narrower zones of greater than 1 per cent copper and 12 grams per tonne gold. Surface grab samples taken in 2004 and 2005 assayed up to 14 grams per tonne gold and 0.3 per cent copper.
A total of 502 NQ core samples were collected for gold and multielement geochemistry. Core samples were sawed, with one-half placed in plastic bags and shipped to the ALS-Chemex Laboratories facility in Fairbanks, Alaska. A quality assurance and quality control program is in place and blanks or standards were inserted nominally every 10 samples. Assays are pending.
The qualified person, as defined by NI 43-101, for both these projects is consulting geologist and Andover director Dr. David Hedderly-Smith, PhD, CPG.
Andover Acquires Prominent Land Position in Alaska
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2006) - ANDOVER VENTURES INC. (the "Company") (TSX VENTURE:AOX) is pleased to announce that it has entered into an Exploration Agreement with Option to Lease with the Bristol Bay Native Corporation (BBNC), an Alaska Native Regional Corporation. The agreement will allow Andover to acquire a 100% interest in mineral rights at five individual properties covering approximately 18,000 hectares in the Iliamna Lake area of southwest Alaska and hosting various styles of mineralization. The Properties, a combination of private lands owned by BBNC, and claims staked on state-owned lands, are in the general vicinity, and in a similar geological setting, as the Pebble Project, a major porphyry copper-gold-molybdenum deposit being developed by Northern Dynasty Mines Ltd.
The KUY Property is an epithermal gold-silver target, is located southwest of the village of Kokhanok in rocks of the Talkeetna Arc. Gold-silver telluride mineralization has been discovered at the site. Historic grab samples, collected during the 1980's by previous operators, of vuggy quartz veins hosted by dacite breccia are reported to contain up to 56 oz/ton gold and 163 oz/ton silver, along with anomalous copper, lead, and zinc. The majority of work at KUY was conducted in the late 1970's and early 1980's. Ground magnetics, VLF, and IP have been used successfully to locate mineralization, alteration zones, and fault zones. Soil sampling identified anomalous gold, silver, copper, lead, and zinc. A limited 1,200-foot drilling program failed to intercept high-grade mineralization. The property geology indicates that a caldera rim-related epithermal system or a porphyry system may be present. The prospect is located on or near the lower Jurassic Talkeetna Formation, which has been shown to be chemically and temporally analogous to the Hazelton Formation in British Columbia, which hosts the Eskay Deposit.
The Fog Lake Property is located east of KUY, is a copper-gold target, near the Kamishak Property currently being drilled by Andover. Exploration work in the early 1970's identified a 700-meter long multi-element soil geochemical anomaly at this site. Of the 130 soil samples in the anomalous zone, 49 contained between 100 and 18,800 ppb gold and 65 contained between 70 and 3,200 ppm copper. The zone is also anomalous in zinc, lead and silver. There is no rock exposure at the strongest portions of the soil anomaly. However, in Fog Creek, narrow massive chalcopyrite veinlets are exposed in the creek bed. The exposed mineralization does not seem significant enough to account for the strong, broad soil geochemical anomaly. No drilling has taken place, but trenches were excavated at the soil anomaly. Fractured bedrock contained anomalous metal values. Mineralization may be related to a buried porphyry system, or an epithermal system.
The Kemuk Property is centered on a large, strong magnetic anomaly that was identified and drilled in the 1950's by Humble Oil Company in an exploration program designed to discover iron ore. Magnetite in gabbroic rocks was discovered in what is suggested by airborne magnetic surveys to be a large intrusive body. Relogging and sampling of the drill core identified zones of anomalous platinum. The zones are quite broad, with core lengths up to 51 feet with platinum ranging between 30 ppb and 105 ppb.
The Chilikat Property is comprised of two non-contiguous blocks of state mining claims covering 2330 hectares each. The claims cover coincident magnetic and radiometric geophysical anomalies, and gold - copper stream sediment anomalies. The target is located within the northeast-trending Mulchatna fault system, at the intersection with a northwest-trending structure along which are located a series of volcanogenic, vein-hosted, and porphyry deposits. The northeast - trending Mulchatna fault system is parallel to the Lake Clark fault system, upon which the Pebble deposit is situated. The underlying strata are volcanic and sedimentary rocks of the Talkeetna Arc, and are intruded by syndepositional and later intrusive rocks. Very little prior exploration has been conducted in this area.
The Samuelsen Property is a 2330 hectare block of claims staked on anomalous heavy mineral pan concentrate stream sediment geochemical anomalies. Visible gold grains are present in panned concentrate samples collected by the United States Geological Survey in 2004. Radiometric and magnetic anomalies documented from prior government airborne surveys are present.
President Mike England states, "This package of properties, along with projects that may be generated, gives Andover a prominent land position in a highly prospective, under-explored region that is currently a global focus of mineral exploration activity."
To acquire these 100% owned properties, Andover has agreed to a seven year exploration agreement with the option to lease or purchase the lands in the event of a major mineral discovery. The exploration agreement calls for total minimum exploration expenditures of US$4.15 million, and option payments to BBNC totaling US$875,000 (US$90,000 first year). Additionally, Andover will make annual scholarship donations to the Bristol Bay Native Corporation Education Foundation that, over the seven year life of the agreement, will total $240,000. Any of the claims that are, or become, subject to the agreement may be purchased outright by Andover during the option period for $5 million, subject to an NSR royalty. Andover has the option to lease other minerals lands owned by BBNC. Leases are subject to annual cash payments and an NSR royalty on production. Base metal royalties, after an optional buy-down payment, will be 1%. Precious metal royalties are on a sliding scale tied to the price of gold (see below). After an optional buy-down payment, the royalty will range between 2% and 3%.
--------------------------------------------------------Price of Gold Production Royalty--------------------------------------------------------Less than $300.00 2.00% of NSR--------------------------------------------------------Equal to or greater than $300.00but less than $400.00 3.00% of NSR--------------------------------------------------------Equal to or greater than $400.00but less than $500.00 4.00% of NSR--------------------------------------------------------Equal to or greater than $500.00 5.00% of NSR--------------------------------------------------------
The samples disclosed in this news release are historic in nature, have not been verified by Andover Ventures and should not be relied upon. The Company will prepare a 43-101 report on all the properties in the near future.
The qualified person, as defined by National Instrument 43-101, for this project will be consulting geologist Dr. David Hedderly-Smith, PhD, CPG.
Marvin Mitchell, P.Eng, director of Andover Ventures Inc and qualified person as defined by National Instrument 43-101, has approved the information contained in this release.
A finders fee of 150,000 shares will be payable to Full Metal Minerals upon TSX Venture Exchange approval and a further 150,000 shares upon receipt of a feasibility study, should that happen, on the properties contained in this agreement.
The company also wishes to announce it is increasing it's previously announced financing on August 11, 2006 at $0.50 to $850,000 from $750,000 to help facilitate this acquisition.
The company has granted incentive stock options to directors, officers, employees and consultants to purchase up to 150,000 shares in the capital stock of the company. The options are exercisable at a price of 50 cents per share and expire on Aug. 24, 2011.
Andover Ventures is currently drilling the Kamishak copper-gold Prospect in southwest Alaska. Initial results are anticipated by mid-September.
ON BEHALF OF THE BOARD
Michael England, President
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
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