NovaGold: Advancing Rock Creek

Developers of the Rock Creek gold deposit near Nome plan to spend $5 million in 2004 to develop the hard rock deposit, with the ultimate goal of gold production starting in 2006.

Vancouver, British Columbia-based NovaGold Resources anticipates releasing a new resource number and geological model later in March, based on last year's 30,000-foot drill program exploration work.

The permit process should begin in the second half of 2004, following completion of a feasibility study, according to a company update released March 1.

Crews are gathering background monitoring data for groundwater and surface water, Doug Nicholson, vice president and general manager, told Mining News on March 5, shortly before a weekend company meeting to discuss projects.

Initial tailings dam design and review of water balance and rock characterization studies have also begun, he said.

"We'll do a bulk sample this summer and depending on what we see this weekend (during the company meeting), we'll have more drilling this summer," he said.

Current scoping of Rock Creek has identified a potential gold mine that would produce more than 100,000 ounces per year with a total cash cost of about $200 per ounce of gold.

Year-round operation anticipated

NovaGold anticipates a year-round mine and milling operation, producing about 5,000 tons of material to process a day, with a 4:1 strip ratio, Nicholson said. Overall recovery with a gravity floatation plant is projected at 96 percent.

Past exploration has identified a gold resource containing more than 1 million ounces of gold at Rock Creek and the adjacent Saddle deposit. Both deposits are open along strike and down dip; further drilling will likely increase the size of both deposits, the company's website said.

NovaGold has hired John Odden as the chief geologist for Rock Creek and the company's Nome Gold project, Nicholson said. "He will be involved in planning our project this summer."

Odden formerly worked as a geologist for several years at the Fairbanks-area Fort Knox gold mine and as the project manager for the neighboring Gil deposit.

Additionally, the Alaska Department of Transportation has allocated and approved $5 million in funds in 2004 for construction of the Glacier Creek by-pass road, a three-mile route that will improve access from the community of Nome to the Rock Creek area.

"With two crew changes a day at 30 to 40 people and support staff and vendors coming in and out, that will greatly enhance our ability to access the mine," he said.