NovaGold updates Galore Creek estimates

NovaGold Resources Inc. has filed with the Canadian securities regulators a National Instrument 43-101 technical report for the Galore Creek copper-gold-silver project and updated the resource estimate to reflect changes at the project.

As a result of the decision to suspend construction and to reassess the feasibility study and project economics, all of Galore Creek’s proven and probable reserves have been reclassified as measured and indicated resources as per the table below at a 0.21% copper-equivalent cutoff.

The current resource model was based on all data available through the 2006 season and constructed by Kevin Francis, P.Geo. The resource estimate is based on a 3D computer block model with copper, gold and silver block grades estimated into 25 meter x 25 meter x 15 meter high blocks using 5-meter-long drill hole composites. Prior to compositing the drill hole grades, high-grade outlier values were cut based on an analysis of cumulative probability plots.

The grade models were validated by visual and statistical methods and are deemed to be globally unbiased. The blocks were then classified into Measured, Indicated and Inferred Mineral Resource categories using the number of data and distance to data method. The resource has been constrained within a conceptual pit using US$1.55/lb of copper, US$650/oz of gold, and US$11/oz of silver and using recent estimates of mining, geotechnical and metallurgical parameters. No environmental, permitting, legal, title, taxation, sociopolitical, marketing or other issues are expected to materially affect the above estimates of mineral resources.