NovaGold Reports Significant Advancement Progress on Galore Creek Prefeasibility Study

NovaGold Resources NG announces significant advancement towards completion of the prefeasibility study on its Galore Creek copper-gold-silver project located in northwestern British Columbia. The study is being prepared by Galore Creek Mining Corporation, owned equally by subsidiaries of NovaGold Resources and Teck Resources Limited. Completion of the prefeasibility study is expected by the end of July 2011 and AMEC Americas Limited, an independent supplier of engineering and project management services, is concurrently preparing a National Instrument 43-101 compliant technical report. Upon receipt of the technical report, NovaGold will announce the results and file it on SEDAR and EDGAR within 45 days of the announcement. The partners have approved a $30.5-million budget to carry out further work on the Project during the remainder of 2011. Planned work includes infill drilling to convert inferred mineral resources to measured and indicated categories, geotechnical drilling on the tunnel alignment and geotechnical drilling to confirm open pit slopes in areas targeted for conversion of inferred mineral resources. GCMC will also complete further environmental and engineering work in preparation for feasibility level studies. "Completion of the prefeasibility study will be an important milestone as we work with Teck to optimize the Galore Creek project," said Rick Van Nieuwenhuyse, President and CEO of NovaGold. "Galore Creek is one of the most significant copper-gold projects in the world. Its timely development is important for all stakeholders, including Federal and Provincial governments as well as First Nation communities of northwestern British Columbia." During the second quarter of 2011, Teck completed its funding requirements of $373 million to earn its 50% interest in GCMC. The Project will move forward with Teck and NovaGold equally funding further Project development.