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NovaGold boosts mineral estimates: gold by 14%, copper 25%, silver 55%
From the Associated Press
Thursday, August 24, 2006
VANCOUVER, British Columbia -- NovaGold Resources Inc., the target of a hostile takeover bid from Barrick Gold Corp., increased its mineral resource estimates Thursday based on results from a drilling program at its Donlin Creek and Galore Creek projects.
The Vancouver miner said its gold measured and indicated resources had been raised by 14 percent to 20.6 million ounces, while copper was up 25 percent to 8.5 billion pounds and silver rose 55 percent to 117.1 million ounces.
"The estimates released today provide further evidence of the value being created for NovaGold shareholders at the company's world-class assets," stated CEO Rick Van Nieuwenhuyse.
"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."
NovaGold has urged shareholders to reject Barrick's $1.5 billion offer and filed a lawsuit against the gold giant, claiming Barrick misused confidential information belonging to NovaGold when it made a competing bid for Pioneer Metals Corp.
Pioneer owns rights on a property adjacent to NovaGold's Galore Creek project in B.C.
Barrick has dismissed the lawsuit, calling it "unfounded" and saying its offer reflects full and fair value to NovaGold's shareholders.
NovaGold owns a 70 percent interest in the Donlin Creek project in Alaska, considered one of the world's largest gold deposits.