THE CANADIAN PRESS

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VANCOUVER - New drill results from Donlin Creek show the Alaska site "is truly one of the world's largest gold deposits with considerable potential to expand known resources," NovaGold Resources Inc. (TSX:NG) said Tuesday.

The Vancouver-based miner said its most recent assay results included drill holes with an average 130 metres of mineralization grading 3.58 grams per tonne gold after the completion of 32,000 metres of exploration development drilling during the year.

"We are particularly encouraged by the grades and widths of mineralization encountered at the East Acma and other target areas on the project," president and CEO Rick Van Nieuwenhuyse said in a release.

Donlin Creek is a 50-50 joint venture in southwestern Alaska with mining giant Barrick (TSX:ABX).

A complete feasibility study for the project is expected in the first quarter of next year. The partners expect the project will operate for more than 20 years and produce between one million and 1.5 million ounces of gold a year.

Shares in NovaGold were down five cents at $6.95 in afternoon trading on the TSX in a mildly lower day for gold stocks in general. Barrick shares were off $1.42, 3.5 per cent at $39.02.