Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** NovaGold (NG) Sitting on Two Elephants ***

>>>NovaGold certainly has a couple of great properties. I didn't notice this tidbit until I checked out the Yahoo board:

"In addition to the infill results, new mineralization has been encountered in areas of rotary condemnation drilling along the east side of the current drill limits in an area known as the Far East zone located 4 kilometers east of the Acma deposit. DR05-996 encountered 4.6 meters grading 18.07 g/t Au and DR05-998 cut 2 mineralized intervals totaling 21.3 meters grading 3.71 g/t Au."

Perhaps there's so much gold around DC that it's just hard to find a good place to put stuff. <G><<<
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Hi Jay,
They surely do have a lot going for them.... <vbg>


NovaGold Sitting on Two Elephants

By Michael J. DesLauriers
27 Sep 2005 at 09:16 AM EDT

DENVER (ResourceInvestor.com) – NovaGold Resources [TSX:NG; AMEX:NG] is fortunate enough to be sitting on two of North America’s largest undeveloped deposits. One wonders for how long? With a production profile that increases in a straight line from about 100,000 ounces starting late next year up to over 1 million (gold equivalent) in five years time, the company seems like a probable takeover target.

One possible scenario has Placer Dome [TSX:PDG; NYSE:PDG] taking NG out for Donlin Creek and then selling off all of the company’s other assets, making the net acquisition cost vastly more appealing.

Resource Investor got the chance to interview President and CEO Rick Van Nieuwenhuyse after his presentation today and discuss some points of interest for investors.

Van Nieuwenhuyse is convinced the stock is cheap and can generate the most value for shareholders if left to its own devices. He put together a very compelling presentation comparing NG to a host of other companies at various stages of development and making NovaGold appear comparatively cheap right down the line.

Van Nieuwenhuyse voiced his opinion to RI saying, “I think NovaGold is bound for a revaluation here because we are putting Rock Creek into production. It’s our smallest asset but it is the asset that will start the chain of events towards becoming a producer. We’re on track to do that next year, the barges are loaded up and have all the equipment and supplies on them and will be delivered to Nome in about three weeks. We expect to get our permits in the first quarter of 2006, roughly a nine-month construction timeline so by the end of year we should be able to pour our first ounce of gold. First full year of production 2007, roughly 100,000 ounces annual production and exploration upside in the district is big as well, we’ve got about a 200,000 resource at a little over 5 grams there, so district exploration will continue the mine life there.”

So perhaps production will be the catalyst for higher multiples.

Some analysts have raised concerns over the remoteness and technical challenges at the company’s Galore Creek project. Van Nieuwenhuyse, however, is confident that these obstacles can be overcome and the company is expanding its team to ensure that things run smoothly. The native and first nations stakeholders in the company’s various projects are being included and looked after in just about every way possible and are therefore unlikely to become a negative factor as NG advances to production.

With regard to NovaGold’s recent acquisition of shares in US Gold [OTCBB:USGL], Van Nieuwenhuyse insists that the coincidental timing with Rob McEwen’s takeover of the company was indeed nothing more than coincidence, and that NG was taking a stake because of its interest in Cortez geologically. The company would like to take an active role in the exploration side of things there pending McEwen’s agreement.

All in all, despite the need for further dilution as things progress, NG would appear to be in pretty good shape. With a rising gold price, an unparalleled resource base, an exciting production profile and the obvious potential for the company to get swallowed up, the upside from current levels could be quite meaningful if everything goes as planned.

Shares in NovaGold closed Monday at C$9.38 on the TSX, up 8 cents on above average volume.

http://www.resourceinvestor.com/pebble.asp?relid=13183
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Click on the link below to hear/view the NovaGold's 9-27-05 audio/slideshow presentation at the 2005 Denver Gold Forum

http://events.onlinebroadcasting.com/denvergold/092605/frameset.php?file=nova&co=nova&player....

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The complete roster of DGF presenters is shown below with the archived audio/slideshow presentations becoming available the day after their appearance.

http://events.onlinebroadcasting.com/denvergold/092605/index.php?mode=1&sel_date=1