Replies to post #17750 on Traders Cooperative

[basserdan]

*** Gold/Copper related post (NovaGold) ***


NovaGold Announces Significant Increases to Mineral Resource Estimates

Thursday August 24, 8:45 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 24, 2006 -- NovaGold Resources Inc. (TSX:NG.TO - News)(AMEX:NG - News) -

- Gold: 14% Increase in total Measured and Indicated Resources to 20.6 million ounces

- Copper: 25% Increase in total Measured and Indicated Resources to 8.5 billion pounds

- Silver: 55% Increase in total Measured and Indicated Resources to 117.1 million ounces

- Further updates to come as results from the 80,000 meter Donlin Creek program and 25,000 meter Galore Creek program become available

NovaGold Resources Inc. has significantly increased its mineral resource estimates for total Measured and Indicated Resources in gold, silver and copper at its Donlin Creek and Galore Creek projects.

"The estimates released today provide further evidence of the value being created for NovaGold shareholders at the Company's world-class assets," said Rick Van Nieuwenhuyse, President and CEO of NovaGold. "We are continuing to build on our strong track record of resource growth. Barrick's hostile bid does not recognize NovaGold's solid growth record or the potential of our projects. This enhanced resource base provides further support for shareholders to reject the hostile Barrick bid."

SUMMARY

NovaGold's projects are located in the resource-rich region of Alaska and Western Canada, an area with a long history of mining, a stable political environment and a favourable investment climate that encourages resource development. NovaGold holds interests in several of the largest undeveloped gold and copper deposits in North America. Using updated economic parameters, NovaGold's total resource base is as follows:

 
 NovaGold Gold, Silver and Copper Resource Base(1) 
 ----------------------------------------------------------------------- 
 Project               Resource    Gold  Silver   Gold Equiv.(2)  Copper 
                       Category  (M ozs) (M ozs) (Gold + Silver)  (B lbs) 
                                                         (M ozs) 
 ----------------------------------------------------------------------- 
                       Measured 
 Donlin Creek       & Indicated    11.3       -           11.3         - 
 (70%)(3)              Inferred    11.6       -           11.6         - 
 ----------------------------------------------------------------------- 
 Galore Creek          Measured 
  (100%)(4)         & Indicated     7.4   117.1            9.2       8.5 
                       Inferred     2.0    35.7            2.6       2.4 
 Copper Canyon 
  (80%)(4)             Inferred     2.3    30.3            2.8       1.0 
 ----------------------------------------------------------------------- 
                       Measured 
 Nome Operations    & Indicated     1.9       -            1.9         - 
 (100%)(5)             Inferred     1.4       -            1.4         - 
 ----------------------------------------------------------------------- 
 Ambler (51%)(5)       Inferred     0.4    32.7            0.9       1.6 
 ----------------------------------------------------------------------- 
                       Measured 
 Total              & Indicated    20.6   117.1           22.4       8.5 
                       Inferred    17.7    98.7           19.3       5.0 
 ----------------------------------------------------------------------- 
 

Notes:
(1) Mineral resources that are not mineral reserves do not have demonstrated economic viability. Resource estimates are tabulated on criteria provided within this release for each project. Inferred Resources are in addition to Measured and Indicated Resources. See "Cautionary Note Concerning Resource Estimates".

(2) Calculation based on conversion of silver to gold equivalent using US$450/oz for gold and US$7/oz for silver.

(3) Previous tabulations have shown this interest at 30%. See "The Donlin Creek Project".

(4) Subject to earn-in agreements with Copper Canyon Resources Ltd. (Copper Canyon), and subsidiaries of Rio Tinto/Hudbay Minerals (Galore Creek) and Rio Tinto (Ambler).

(5) Nome Operations includes the Rock Creek, Big Hurrah, Saddle and Nome Gold deposits. These estimates include historical resources for Saddle, Nome Gold and Ambler that are not NI 43-101 compliant. Technical reports describing these resources can be found on SEDAR (www.sedar.com). See "Cautionary Note Concerning Resource Estimates".

DONLIN CREEK RESOURCE ESTIMATE

NovaGold has re-tabulated the January 2006 resource estimate for the Donlin Creek gold deposit located in Alaska using revised economic parameters at a 0.76 grams per tonne (g/t) gold cut-off grade constrained within a US$500/oz gold conceptual pit model. The 0.76 g/t gold cut-off grade is based on an assumed 60,000 tonnes-per-day mill processing rate and a gold price of US$500/oz. This re-tabulated estimate is meant to more accurately reflect current economic conditions, but does not include results from Barrick Gold Corporation's ("Barrick") current 80,000 meter drilling program. This estimate results in a significant increase in Measured, Indicated and Inferred Resources. Compared with the January 2006 reported resource, which used a 1.2 g/t gold cut-off grade (US$400/oz gold price) constrained within a US$450/oz gold conceptual pit, the Measured and Indicated Resource category increased by 9% to 16.1 million ounces of gold grading an average of 2.33 g/t gold. The Inferred Resource increased by 22% to 16.6 million ounces of gold grading 2.27 g/t gold.

 
 Donlin Creek Mineral Resource Estimate (100% basis)(1)(2)(3) 
 ----------------------------------------------------------- 
 Resource                    Tonnes   Gold Grade      Ounces 
 Category                 (Millions)        (g/t)  (Millions) 
 ----------------------------------------------------------- 
  Measured(2)                  16.1         2.84         1.5 
  Indicated                   199.2         2.28        14.6 
 ----------------------------------------------------------- 
 Measured & Indicated(3)      215.3         2.33        16.1 
 Inferred(4)                  227.6         2.27        16.6 
 ----------------------------------------------------------- 
 

Notes:
(1) Based on drilling results reported in the January 2006 resource estimate and technical report. NovaGold currently holds a 70% interest in the project, subject to the right of Barrick to earn an additional 40% and Calista Corporation to acquire up to 15% of the total.

(2) Measured Resources reported in January 2006 using a 1.2 g/t gold cut-off grade.

(3) Measured & Indicated Resources reported at a 0.76 g/t gold cut-off grade within a US$500/oz gold conceptual pit.

(4) Inferred Resources are in addition to Measured and Indicated Resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. See "Cautionary Note Concerning Resource Estimates".

The estimate is based on a 3-D geologic and mineralization model that integrates 222,000 meters (728,000 feet) of drilling completed by Placer Dome and NovaGold. The most recent drill programs and sampling protocol were managed by Placer Dome. All drill samples were analyzed by fire assay at ALS Chemex Labs in North Vancouver, B.C., Canada. Assay quality control and quality assurance standards were overseen by Placer Dome. Kevin Francis, P.Geo, Resource Manager for NovaGold, is a Qualified Person as defined by National Instrument 43-101 (NI 43-101) and has validated the resource estimate and re-tabulation and confirmed that all procedures, protocols and methodology used in the estimation conform to industry standards. The resource estimate has been the subject of an NI 43-101 compliant technical report filed on SEDAR in January 2006.

Donlin Creek Updated Economic Assessment Underway

The information contained in this news release is the most recent available to NovaGold, and does not reflect the results of drilling conducted by Barrick in 2006. The Company believes Barrick, as holder of a 30% interest in Donlin Creek and manager of the project, may possess undisclosed information that is material to NovaGold's shareholders and the market for evaluating Donlin Creek's potential value. As an example, during a site visit in July 2006, senior management from NovaGold reviewed drilling results adjacent to the Acma deposit indicating a major new discovery with the potential for a significant positive impact to the Donlin Creek resource model. NovaGold has formally requested that Barrick provide all relevant information on the Donlin Creek project, as required under the Mining Venture Agreement ("the Agreement"), to allow dissemination of this information and give NovaGold's shareholders the ability to better evaluate Donlin Creek's potential value.

Given the lack of information publicly disclosed by Barrick, NovaGold has commissioned SRK Consulting to prepare a Preliminary Economic Assessment that will provide estimates of capital and operating costs at a production rate of 60,000 tonnes per day for an open-pit mine at Donlin Creek. Results of the study are expected shortly.

The Donlin Creek Project

NovaGold owns a 70% interest in the Donlin Creek deposit in a joint venture with Barrick. The deposit, located in southwestern Alaska, is one of the largest gold deposits in the world. As currently envisioned, Donlin Creek would be one of only a handful of gold mines worldwide that produce over 1 million ounces of gold per year, making it a true world-class asset. Under the terms of the Agreement, Barrick has a back-in option to potentially earn an additional 40% interest (bringing its total interest to 70%) in the joint venture by expending a minimum of US$32 million on the property, completing a bankable Feasibility Study (as defined in the Agreement available at www.sedar.com) and making a board decision by November 2007 to construct a mine with an anticipated production rate of not less than 600,000 ounces of gold or gold equivalent per year for the first five years of production.

NovaGold believes it will not be possible for Barrick to meet the terms and conditions of the Agreement to obtain an additional 40% interest in the Donlin Creek project. NovaGold believes Barrick launched its August 4, 2006 hostile take-over bid for all outstanding NovaGold shares ("Barrick Offer") in an attempt to salvage its ability to earn the additional 40% interest.

GALORE CREEK RESOURCE ESTIMATE

As part of the ongoing Feasibility Study at NovaGold's Galore Creek copper-gold deposit, an updated, independent, NI 43-101 compliant resource estimate using base case metals prices of US$450/oz for gold, US$7/oz for silver and US$1.25/lb for copper has been completed, increasing the metal content of the Measured and Indicated Resources for copper, gold and silver by 26%, 23% and 57%, respectively.

The updated Measured and Indicated Resource now totals 748.9 million tonnes grading 0.52% copper, 0.30 g/t gold and 4.9 g/t silver for a total metal content of 8.5 billion pounds of copper, 7.4 million ounces of gold and 117.1 million ounces of silver at a 0.25% copper-equivalent cut-off grade. The resource has been constrained within a conceptual pit based on metals prices approximately 50% greater than the Feasibility Study's base case metals prices and using recent estimates of mining, geotechnical and metallurgical parameters. The previously released Measured and Indicated Resource totaled 516.7 million tonnes grading 0.59% copper, 0.36 g/t gold and 4.5 g/t silver at a 0.35% copper-equivalent cut-off grade. The Galore Creek Feasibility Study is scheduled for completion in the second half of 2006.

The updated Inferred Resource, excluding the Copper Canyon project, now totals 300.1 million tonnes grading 0.37% copper, 0.21 g/t gold and 3.7 g/t silver for a total metal content of 2.4 billion pounds of copper, 2.0 million ounces of gold and 35.7 million ounces of silver at a 0.25% copper-equivalent cutoff grade. Significant additional Inferred Resources of 164.8 million tonnes grading 0.35% copper, 0.54 g/t gold and 7.2 g/t silver for a total metal content of 1.3 billion pounds of copper, 2.9 million ounces of gold and 37.9 million ounces of silver at a 0.35% copper-equivalent cut-off grade also exist at Copper Canyon, though these numbers have not been updated since the January 2005 release. The Inferred Resources for the Galore Creek project will be the focus of conversion and optimization during future exploration.

The summary tables below show resources at a copper-equivalent cut-off grade of 0.25% . Copper-equivalent grades are based both on long-term average metals prices and estimated recoveries based on extensive metallurgical data from the Galore Creek resource area (see Note 2 below). The copper-equivalent cutoff is comparable to a net smelter return of Cdn$3.82 per tonne calculated using estimates from the Preliminary Economic Assessment (October 2005). NovaGold has constrained resources to a conceptual open pit, the limits of which were determined using recent estimates of mining, geotechnical and metallurgical recovery parameters developed in the preparation of the Feasibility Study. Significant mineralized material exists beyond the current resource conceptual pit and is the focus of ongoing delineation drilling.

 
 Galore Creek Measured and Indicated Resources(1) 
 ----------------------------------------------------------------------- 
                                                  Pounds  Ounces  Ounces 
                 Size              Grade          (Bill-) (Mill-) (Mill-) 
                                                   (ions)  (ions)  (ions) 
 ----------------------------------------------------------------------- 
 Resource      Tonnes      Cu    Au    Ag CuEq(2)     Cu      Au      Ag 
 Category   (Millions)     (%) (g/t) (g/t)    (%) 
 ----------------------------------------------------------------------- 
  Measured      263.6    0.62  0.35   5.9   0.81     3.6     3.0    50.0 
 ----------------------------------------------------------------------- 
  Indicated     485.3    0.46  0.28   4.3   0.63     4.9     4.4    67.1 
 ----------------------------------------------------------------------- 
 Total M+I      748.9    0.52  0.30   4.9   0.69     8.5     7.4   117.1 
 ----------------------------------------------------------------------- 
  
  
  
 Galore Creek & Copper Canyon Inferred Resources(1) 
 ----------------------------------------------------------------------- 
                                                  Pounds  Ounces  Ounces 
                 Size              Grade          (Bill-) (Mill-) (Mill-) 
                                                   (ions)  (ions)  (ions) 
 ----------------------------------------------------------------------- 
 Property      Tonnes      Cu    Au    Ag CuEq(2)     Cu      Au      Ag 
            (Millions)     (%) (g/t) (g/t)    (%) 
 ----------------------------------------------------------------------- 
 Galore 
  Creek         300.1    0.37  0.21   3.7   0.51     2.4     2.0    35.7 
 ----------------------------------------------------------------------- 
 Copper 
  Canyon(3)     164.8    0.35  0.54   7.2   0.73     1.3     2.9    37.9 
 ----------------------------------------------------------------------- 
 Total 
  Inferred      464.9    0.37  0.33   4.9   0.59     3.7     4.9    73.6 
 ----------------------------------------------------------------------- 
 

Notes:
(1) The resource has been constrained within a conceptual pit using metals prices approximately 50% greater than the Feasibility Study base case metals prices and recent estimates of mining, geotechnical and metallurgical parameters. Mineral resources that are not mineral reserves do not have demonstrated economic viability. See "Cautionary Note Concerning Resource Estimates".

(2) Copper-equivalent calculations use metals prices of US$450/oz for gold, US$7/oz for silver and US$1.25/lb for copper. Copper-equivalent calculations (CuEq%) reflect gross metal content that has been adjusted for metallurgical recoveries based on the metallurgical domain testwork completed by Hatch Ltd. Copper recovery is expressed as a formula unique to each metallurgical domain necessary to derive copper concentration grades of 28%, or 26% for the Southwest Zone. Gold and silver recoveries of each metallurgical domain are expressed as a proportion of copper recovery.

(3) Copper Canyon Inferred Resource on a 100% basis calculated using a 0.35% copper-equivalent cut-off grade, as previously stated in the technical report issued in January 2005.

The updated resource estimate was based on a 3-D geologic and mineralization model that integrated all exploration work on the project, including over 187,500 meters (615,000 feet) of drilling in 772 core holes. Block model metal grades were estimated with 5-meter-long drill hole composites using ordinary kriging methods. High-grade outlier values were capped prior to compositing based on a review of probability plots.

The 2005 drill program and sampling protocol was completed with oversight by Qualified Person Scott Petsel, Senior Project Geologist for NovaGold. A rigorous quality control and quality assurance protocol was used on the project, including blank and reference samples with each batch of assays. All NovaGold drill samples were analyzed by fire assay and ICP at ALS Chemex Labs in Vancouver, B.C., Canada. Database quality control and quality assurance standards were overseen by Hatch Ltd. The resource estimate and technical report for the project was completed under the oversight of Mike Lechner, RPG, of Resource Modeling Inc., who is a Qualified Person as defined by NI 43-101. An NI 43-101 compliant technical report of the resource estimate will be filed on SEDAR not less than three business days prior to the expiry of the Barrick Offer.

The Galore Creek Project

Located within the Stikine Gold Belt of northwestern British Columbia, Galore Creek is one of the largest undeveloped copper-gold projects worldwide. As envisioned, the Galore Creek deposit would be developed by conventional open-pit mining methods at a 65,000 tonnes-per-day processing rate over a minimum 20-year mine life.

NovaGold is earning a 100% interest in the Galore Creek project from subsidiaries of Rio Tinto and Hudbay Minerals. NovaGold has an option agreement with Copper Canyon Resources Ltd. on the adjoining Copper Canyon property, under which the Company is earning up to an 80% interest. NovaGold also has an option on the adjoining Grace property with Pioneer Metals Corporation, under which the Company is earning a 60% interest. The option agreement on the Grace property is the subject of litigation between NovaGold and Pioneer.

In February 2006, NovaGold entered into a comprehensive agreement with the Tahltan First Nations to support development of the Galore Creek project. The agreement demonstrates that large new mining projects such as Galore Creek can be developed with the active support of local First Nations communities if there is a long-term commitment to establish a cooperative and mutually beneficial working relationship.

ROCK CREEK AND BIG HURRAH RESOURCE ESTIMATES

The combined Indicated Resource for the Rock Creek and Big Hurrah deposits, included in NovaGold's Nome Operations, totals 677,000 ounces of gold. In addition, an Inferred Resource has been estimated to contain 100,000 ounces of gold.

The Rock Creek and Big Hurrah resource updates are based on NovaGold's most recent 3-D geologic and mineralization block model that integrates the results of exploration to date on the project. Mineral resources at Rock Creek were estimated by AMEC E&C Services Inc. (AMEC) and overseen by Dr. Harry Parker, P.Geo of AMEC. Mineral resources at Big Hurrah were estimated by Resource Modeling Inc. (RMI) and overseen by Mike Lechner, RPG of RMI. Both Dr. Parker and Mr. Lechner are Qualified Persons as defined by NI 43-101.

Resources at Rock Creek and Big Hurrah were tabulated at cut-off grades based on recent estimates of mining, geotechnical and metallurgical parameters. Reported mineral resources were constrained by conceptual pits prepared by RMI. Big Hurrah's higher cut-off grade reflects the need to transport ore to the Rock Creek mill.

The Rock Creek resource is based on data from 440 core and rotary holes totaling 38,000 meters (125,000 feet). The Big Hurrah resource is based on data from 273 core and rotary holes totaling 16,900 meters (55,600 feet).

 
 Rock Creek - Mineral Resources at a 0.60 g/t gold cut-off grade(1) 
 ----------------------------------------------------------------- 
 Resource Category           Tonnes          Grade          Ounces 
                          (Millions)      Gold g/t      (Thousands) 
 ----------------------------------------------------------------- 
 Indicated                      9.6           1.31             404 
 ----------------------------------------------------------------- 
 Inferred(2)                    1.4           0.96              44 
 ----------------------------------------------------------------- 
  
  
 Big Hurrah - Mineral Resources at a 1.0 g/t gold cut-off grade(1) 
 ----------------------------------------------------------------- 
 Resource Category           Tonnes          Grade          Ounces 
                          (Millions)      Gold g/t      (Thousands) 
 ----------------------------------------------------------------- 
 Indicated                      1.8           4.61             273 
 ----------------------------------------------------------------- 
 Inferred(2)                    0.6           3.05              56 
 -----------------------------------------------------------------

Notes:
(1) Within US$500/oz conceptual pit.

(2) Inferred Mineral Resources are in addition to Indicated Mineral Resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. See "Cautionary Note Concerning Resource Estimates".

The most recent drill programs and sampling protocol at Rock Creek and Big Hurrah were managed by NovaGold. Accuracy has been monitored by inserted standards, blanks and check assays. An NI 43-101 compliant technical report of the resource estimate will be filed on SEDAR not less than three business days prior to the expiry of the Barrick Offer.

The Rock Creek/Big Hurrah Project

Rock Creek will be NovaGold's first exploration project to achieve commercial operation, with gold production targeted for mid-2007. Mine construction began on August 22, 2006 upon receipt of final construction permits from the State of Alaska and Federal Regulators and approval for the start of construction by NovaGold's Board of Directors. The mine is expected to produce an average of 100,000 ounces of gold per year from a conventional open-pit year-round mining operation. 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 the Bering Straits Native Corporation, 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 the Sitnasuak Native Corporation.

The Rock Creek project is accessed by state-maintained roads and benefits from the presence of 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. The State of Alaska recently completed construction of the Glacier Creek by-pass road, a 3-mile access route that improves access from the community of Nome to beyond the Rock Creek project area. This road upgrade benefits the Rock Creek project and supports future exploration in the Nome mining district, and was completed as part of the State of Alaska's Roads to Resources initiative.

ABOUT NOVAGOLD

NovaGold Resources Inc. owns a 70% interest in the Donlin Creek gold project in Alaska, one of the world's largest gold deposits. The Company is rapidly advancing toward production at its 100%-owned Galore Creek copper-gold project in northwestern British Columbia, and expects to achieve production in mid-2007 at its 100%-owned Nome Operations in Alaska, which include Rock Creek, Big Hurrah and Nome Gold. 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 is well financed with no long-term debt, and has one of the largest 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: [e-mail].

MORE INFORMATION AND WHERE TO FIND IT

On August 14, 2006 NovaGold filed its Directors' Circular and its recommendation statement in which the NovaGold Board of Directors recommended that shareholders reject the August 4, 2006 hostile offer from Barrick Gold Corporation (TSX:ABX.TO - News)(NYSE:ABX - News). The Circular describes the reasons for the Board's recommendation that shareholders reject the Barrick Offer. Investors and shareholders are strongly advised to read the Directors' Circular and recommendation statement, as well as any amendments and supplements to those documents, because they contain important information. Investors and shareholders may obtain a copy of the Directors' Circular at www.sedar.com or the recommendation statement from the United States Securities and Exchange Commission at www.sec.gov. Free copies of these documents can also be obtained by directing a request to NovaGold at Suite 2300, 200 Granville Street, Vancouver, British Columbia, Canada V6C 1S4, telephone [phone], Attn: Corporate Secretary. More information is available online at www.novagold.net or by e-mail at [e-mail].

http://biz.yahoo.com/iw/060824/0157064.html

[basserdan]

*** Gold/Copper related post (NovaGold) ***


NovaGold Files Lawsuit Claiming Barrick has Violated U.S. Securities Laws

Friday August 25, 7:56 am ET

NovaGold Alleges Barrick Misstates Ownership of Donlin Creek

Seeks Temporary Suspension of Hostile Offer

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 25, 2006 -- NovaGold Resources Inc. (TSX:NG.TO - News)(AMEX:NG - News) announced today that it has filed a lawsuit against Barrick Gold Corporation (TSX:ABX.TO - News)(NYSE:ABX - News) ("Barrick") in the United States District Court for the District of Alaska. The lawsuit alleges that Barrick has violated United States securities laws by making material misstatements with respect to Barrick's interest in NovaGold's Donlin Creek project in Alaska. NovaGold currently holds a 70% interest in the venture through its subsidiary NovaGold Alaska; Barrick holds a 30% interest through its subsidiary Placer Dome U.S. Inc.

Barrick has repeatedly stated that it will earn a 70% interest (reducing NovaGold's stake to 30%) by satisfying contractual back-in requirements on or before November 12, 2007. The lawsuit alleges that these statements are false and that Barrick cannot satisfy those requirements. The lawsuit seeks a temporary restraining order suspending Barrick's unsolicited tender offer to acquire NovaGold pending an accelerated judgment by the court regarding what actions are necessary for Barrick to satisfy those requirements. NovaGold is asking the court to order that the requirements include certain milestones (such as completion of an environmental impact statement, a bankable feasibility study and a construction decision by Placer Dome U.S.'s board) that NovaGold believes cannot be met by the contractual deadline of November 12, 2007.

"We believe it is critical that NovaGold's shareholders be provided with full and accurate information regarding Barrick's tender offer. We also believe that Barrick's hostile offer is an attempt to circumvent the outcome that NovaGold will retain its 70% interest in the Donlin Creek project when Barrick fails to meet its contractual milestones," said Rick Van Nieuwenhuyse, NovaGold's President and CEO. "We are confident that the court will find in NovaGold's favour and that Barrick will be required to acknowledge NovaGold's 70% interest in Donlin Creek. We look forward to a prompt determination of the issue so that the tender offer can proceed on a fair basis."

ABOUT NOVAGOLD

NovaGold Resources Inc. owns 70% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits. The Company is rapidly advancing toward production at its 100%-owned Galore Creek copper-gold project in northwestern British Columbia, and expects to achieve production in mid-2007 at its 100%-owned Nome Operations in Alaska, which include Rock Creek, Big Hurrah and Nome Gold. 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 is well financed with no long-term debt, and has one of the largest 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: [e-mail].

MORE INFORMATION AND WHERE TO FIND IT

On August 14, 2006 NovaGold filed its Directors' Circular and its recommendation statement in which the NovaGold Board of Directors recommended that shareholders reject the August 4, 2006 hostile offer from Barrick Gold Corporation (TSX:ABX.TO - News)(NYSE:ABX - News). The Circular describes the reasons for the Board's recommendation that shareholders reject the Barrick Offer. Investors and shareholders are strongly advised to read the Directors' Circular and recommendation statement, as well as any amendments and supplements to those documents, because they contain important information. Investors and shareholders may obtain a copy of the Directors' Circular at www.sedar.com or the recommendation statement from the United States Securities and Exchange Commission at www.sec.gov. Free copies of these documents can also be obtained by directing a request to NovaGold at Suite 2300, 200 Granville Street, Vancouver, British Columbia, Canada V6C 1S4, telephone [phone], Attn: Corporate Secretary. More information is available online at: www.novagold.net or by e-mail at: [e-mail].

http://biz.yahoo.com/iw/060825/0157370.html

[basserdan]

*** Gold/Copper related post (NovaGold) ***


NovaGold Follows Established Process to Obtain Surface Lease for Galore Creek Project

Tuesday September 5, 7:58 am ET

Surface Lease at Barrick's Eskay Creek Mine Supports NovaGold's Position

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 5, 2006 -- NovaGold Resources Inc. (TSX:NG.TO - News)(AMEX:NG - News) today reiterated the validity of the process it is following to obtain surface rights in British Columbia, countering statements by Barrick Gold Corporation (TSX:ABX.TO - News)(NYSE:ABX - News) concerning NovaGold's ability to develop its Galore Creek project in a timely manner.

In Barrick Gold Corporation's ("Barrick") Circular dated August 4, 2006 related to its hostile take-over bid for NovaGold, Barrick asserted that NovaGold's plan for developing Galore Creek would be impeded by Pioneer Metals Corporation ("Pioneer"), which holds the subsurface mineral rights at the Grace property adjacent to Galore Creek. On June 21, 2006, NovaGold filed an application with the British Columbia government to obtain a surface lease over the Grace property. NovaGold intends to build a tailings and waste rock storage facility over a portion of the Grace property to facilitate operations at Galore Creek. While the Barrick Circular states "it is highly unlikely that such permits and surface rights could be obtained by NovaGold if the granting of the permits and surface rights was opposed by Pioneer", the facts and historical precedent do not support Barrick's contention.

"Based in part on Barrick's own experience at their Eskay Creek mine in northwestern British Columbia, we believe that Barrick's interpretation of surface lease claims is inaccurate," said Rick Van Nieuwenhuyse, President and CEO of NovaGold. "In 1994, surface rights were granted at Eskay Creek for waste rock and tailings facilities under nearly identical circumstances. Based on the same legislation and process used at Eskay Creek, we expect to obtain surface rights for facilities at our Galore Creek project."

Background

Pioneer holds subsurface mineral rights on the Grace property subject to an option granted to NovaGold. The British Columbia government owns the surface, and has the sole and exclusive right to grant surface rights to third parties.

Barrick's Eskay Creek mine, located near the Galore Creek project, is an example of a mine owner successfully obtaining a surface lease for a tailings site over the objection of the holder of the subsurface mineral rights. The summary below outlines the process through which a surface lease for waste rock disposal was granted at the Eskay Creek mine, and the parallel procedures being used by NovaGold for the Galore Creek project.

 
 ------------------------------------------------------------------------ 
 Barrick's Eskay Creek mine          NovaGold's Galore Creek project 
 ------------------------------------------------------------------------ 
 - Prime Resources Group Inc.        - NovaGold requires an area to 
   ("Prime") required an area to       dispose of waste rock and 
   dispose of waste rock and           tailings. 
   tailings.(1) 
 ------------------------------------------------------------------------ 
 - The area chosen had an existing   - The area chosen has an existing 
   subsurface mining lease held by     subsurface mineral claim held by 
   Tagish Resources ("Tagish").        Pioneer, which is under option by 
                                       NovaGold. 
 ------------------------------------------------------------------------ 
 - Prime applied for a license of    - On June 21, 2006, NovaGold applied 
   occupation in August 1993.          for a surface lease through the 
                                       British Columbia concurrent 
                                       permitting process, which allows 
                                       the appropriate government 
                                       agencies to process the 
                                       application prior to issuing the 
                                       Environmental Assessment 
                                       certificate. 
 ------------------------------------------------------------------------ 
 - Tagish objected to the            - On June 29, 2006, Pioneer formally 
   disposition of the surface          requested that the British 
   rights by the government on         Columbia government revoke 
   September 23, 1993, stating that    NovaGold's permit to work on the 
   this disposition could "impede      Grace claims. 
   the proper and orderly            - On July 13, 2006, the British 
   exploration and development by      Columbia Ministry of Energy and 
   Tagish" on its mining claims.       Mines wrote a response to Pioneer 
                                       stating that NovaGold's permits 
                                       for the 2006 work program would 
                                       remain in good standing. 
 ------------------------------------------------------------------------ 
 - On December 22, 1993, the         - As part of British Columbia's 
   Ministry of Energy, Land and        Mines Act permitting requirements, 
   Parks offered Prime a license of    the land under any structures or 
   occupation for condemnation         waste dumps must be "sterilized" 
   drilling and geotechnical           through condemnation drilling 
   evaluation purposes, stating        before a permit will be granted, 
   that an offer of a surface lease    to prove that surface development 
   would be dependent on the           will not preclude the ability to 
   drilling results.                   extract economic mineralization 
 - The Ministry established clear      from the area. 
   guidelines for the drill program, 
   requiring "at least 4 
   condemnation diamond drill holes 
   ... at least 100 metres in length 
   to firmly test the area for 
   potential mineralization at or 
   near the surface." In a separate 
   letter, the Ministry stated that 
   the "purpose of the drilling is 
   to confirm what, if any, 
   potential mineralization 
   development could conceivably be 
   sterilized by the proposal for 
   waste rock disposal ..." 
 ------------------------------------------------------------------------ 
 - Prime drilled five holes on the   - To comply with the sterilization 
   claim in 1994 and discovered no     procedures, NovaGold conducted a 
   economic mineralization.            condemnation drill program in 
                                       2006, drilling a total of six 
                                       holes totaling 1,785 meters (5,855 
                                       feet) in the area proposed for the 
                                       tailings dam. The condemnation 
                                       program showed no economic 
                                       mineralization in the area.(2) 
 ------------------------------------------------------------------------ 
 - A surface lease was granted to    - There have been no significant 
   Prime by the British Columbia       changes to the British Columbia 
   Government on December 24, 1994     legislation since Prime acquired 
   for waste rock disposal at the      its surface lease in 1994. 
   Eskay Creek mine.                 - NovaGold submitted all surface 
                                       lease applications, including the 
                                       condemnation drilling information, 
                                       to the British Columbia government 
                                       on June 21, 2006, and expects to 
                                       have a surface lease granted 
                                       within 60 days of the issuance of 
                                       the Environmental Assessment 
                                       Certificate. 
 ------------------------------------------------------------------------ 
 Notes: 
 (1) Prime Resources Group Inc., the original developer of the Eskay 
     Creek Mine, was acquired by Homestake Canada Inc. in 1999, which was 
     subsequently acquired by Barrick in 2001. 
 (2) Previously, NovaGold completed two years of exploration drilling on 
     the Grace claims with cooperation and input from Pioneer's 
     exploration staff, including Pioneer's VP Exploration. The 16 
     exploration and 19 geotechnical drillholes, totaling over 3,925 
     meters (12,885 feet), showed no significant mineralization below the 
     area proposed to be used for tailings storage. 
 

"In our view, it is clear that the Government of British Columbia has a process whereby it grants surface rights over subsurface mining claims to third parties. Barrick's own corporate history demonstrates that process, and shows that the holder of underlying mineral rights is in no position to block the granting of a surface lease for the development of a large mining project that will have significant benefits for the people and province of British Columbia. As part of the concurrent permitting process, NovaGold has applied to the British Columbia government for a surface lease. In light of the thorough exploration and condemnation drilling carried out on the area underlying the proposed tailings and waste rock facility, we believe there is no impediment to our plan for development of the Galore Creek project," added Van Nieuwenhuyse.

About the Galore Creek Project

NovaGold initiated the British Columbia environmental assessment process in February 2004, and has worked closely with regulators to complete the baseline studies and detailed project description required to define the terms of reference for the environmental assessment application. NovaGold submitted the environmental assessment application on June 26, 2006, thereby initiating the 180-day environmental assessment review for the Galore Creek project. The Company has held public consultation meetings and generally received broad community support. Public review and comment opened July 10th and will close on September 8, 2006. Provincial regulators have indicated that NovaGold should expect to receive the Environmental Assessment Certificate in the first quarter of 2007, with construction able to begin in the second quarter of 2007.

In February 2006, NovaGold entered into a comprehensive agreement with the Tahltan First Nations to support development of the Galore Creek project. The agreement demonstrates that large new mining projects such as Galore Creek can be developed with the active support of local First Nations communities if there is a long-term commitment to establish a cooperative and mutually beneficial working relationship.

Located in northwestern British Columbia, Galore Creek is one of the largest undeveloped copper-gold projects worldwide. As envisioned, the Galore Creek deposit would be developed by conventional open-pit mining methods at a 65,000 tonnes-per-day processing rate over a minimum 20-year mine life.

NovaGold is earning a 100% interest in the Galore Creek project from subsidiaries of Rio Tinto and Hudbay Minerals. NovaGold has an option agreement with Copper Canyon Resources Ltd. on the adjoining Copper Canyon property, under which the Company is earning up to an 80% interest. NovaGold also has an option on the adjoining Grace property with Pioneer Metals Corporation, under which the Company is earning a 60% interest. The option agreement on the Grace property is the subject of litigation between NovaGold and Pioneer.

About NovaGold

NovaGold Resources Inc. owns 70% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits. The Company is rapidly advancing toward production at its 100%-owned Galore Creek copper-gold project in northwestern British Columbia, and expects to achieve production in mid-2007 at its 100%-owned Nome Operations in Alaska, which include Rock Creek, Big Hurrah and Nome Gold. 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 is well financed with no long-term debt, and has one of the largest 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: [e-mail].

About Barrick's Unsolicited Take-Over Bid for NovaGold

On August 14, 2006 NovaGold filed its Directors' Circular and its recommendation statement in which the NovaGold Board of Directors recommended that shareholders reject the August 4, 2006 hostile offer from Barrick Gold Corporation (TSX:ABX.TO - News)(NYSE:ABX - News). The Circular describes the reasons for the Board's recommendation that shareholders reject the Barrick Offer. Investors and shareholders are strongly advised to read the Directors' Circular and recommendation statement, as well as any amendments and supplements to those documents, because they contain important information. Investors and shareholders may obtain a copy of the Directors' Circular at www.sedar.com or the recommendation statement from the United States Securities and Exchange Commission at www.sec.gov. Free copies of these documents can also be obtained by directing a request to NovaGold at Suite 2300, 200 Granville Street, Vancouver, British Columbia, Canada V6C 1S4, telephone [phone], Attn: Corporate Secretary. More information is available online at: www.novagold.net or by e-mail at: [e-mail].

Contact:
Contacts:
NovaGold Resources Inc. - Investors
Greg Johnson, Vice President,
Corporate Communications and Strategic Development
[phone] or Toll Free: 1-866-669-6227

NovaGold Resources Inc. - Investors
Don MacDonald, CA
Senior Vice President & CFO
[phone] or Toll Free: 1-866-669-6227
[e-mail]
http://www.novagold.net

Innisfree M&A Incorporated - Investors
Mike Brinn
[phone]

Lute and Company - Media
John Lute
[phone]

Joele Frank, Wilkinson Brimmer Katcher - Media
Matt Sherman / Jamie Moser
[phone]

http://biz.yahoo.com/iw/060905/0159744.html