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XMFSinchiruna (26.55)

NovaGold's CEO comments on recent price drop!



November 30, 2007 – Comments (2)

NovaGold is my personal screaming buy of the week!  I think anything under $10 is dirt cheap for this stock!

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#1) On January 03, 2008 at 10:48 AM, XMFSinchiruna (26.55) wrote:

When I posted the above note, NG had fallen from near $20 to about $9.  In the ensuing weaks, it was beaten down to truly ridiculous levels, bottoming out with the clearest bottom I've ever witnessed.  I bought in HUGE in this company at $6, and a week later it's back up to $10 (1/3/08).  Some reading this might think the opporunity has passed, but what I wrote weeks ago remains just as true today... NG is a terrific value near $10 as well.  It's going back to $20, as the deal which fell apart because the project was considered too expensive will be reconsidered shortly in the context of a new set of realities for spot gold.  The project metrics with Teck Cominco were calculated based upon $650 gold, and it failed to impress by a narrow margin... this project becomes considerably more attractive with gld sustained over $800, and especially over $900 where it will soon be!  Buy buy buy... and especially if market players are able to bat this one down once again... if it retreats to $9 or less.... back up the truck... this one's going to the moon!  Easy double.

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#2) On January 18, 2008 at 3:14 PM, XMFSinchiruna (26.55) wrote:

As I predicted above, Teck Cominco has just announced that they will be re-evaluating their decision to halt the Galore Creek project.  (See Reuters article below)  If this were not being announced right in the middle of all this market turmoil, NG would be right back up into the high teens already.  Expect this one to get back over $20 as soon as the dust settles.

OTTAWA, Jan 16 (Reuters) - NovaGold Resources and Teck Cominco said on Wednesday they hoped a new management team conducting an "aggressive" review of their shelved Galore Creek project would find a way to modify construction plans to improve financial results.

NovaGold and Teck have appointed Pol Guzman as the new project president and Gary Ward as project director. They will head a study of development plans for the project, hurt by soaring costs and up to two years of extra required construction work.

In November the companies pulled the plug on Galore Creek, considered one of the world's biggest undeveloped copper and gold projects, as cost estimates ballooned as high as C$5 billion, from initial estimates of about C$2.2 billion.

The time and labor needed to build a tailings dam and water diversion structures were also underestimated. Production at the remote mine in northwestern British Columbia had been slated to start by 2012.

The companies said on Wednesday they will maintain existing infrastructure so that development work can resume as soon as a "modified construction approach" is identified and approved.

"The appointment of two professionals with the breadth of experience that Pol and Gary bring to Galore Creek demonstrates clearly that both NovaGold and Teck Cominco remain fully committed to unlocking the potential of the Galore Creek resource as rapidly as possible," said Teck Cominco President Don Lindsay in a statement.

Because the companies have decided to reassess the project's feasibility study and economics, all of Galore Creek's proven and probable reserves have been reclassified as measured and indicated resources.

Guzman replaces Doug Brown, who returns to his post as vice-president of business development for NovaGold.

Shares in Teck stock dropped C$1.35 to C$32.30 on the Toronto Stock Exchange on Wednesday amid broad declines in the mining sector while NovaGold shares were off 36 Canadian cents at C$10.29.

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