HARLAN GOLD PROPERTY East-Central Yukon Territory Executive Summary The Harlan Property, 100% owned by NovaGold Resources Inc., is located 150 kilometers north of the town of Ross River, within the Tintina Gold Belt. The property consists of 339 Yukon quartz mining claims covering 17,490 acres (7,098 hectares). The property is located 35 kilometers southeast of the Plata Airstrip and has winter road access from Yukon Highway 6, 60 kilometers to the southeast. NovaGold has identified two kilometric scale target areas with highly anomalous gold, bismuth, arsenic and antimony in surface rock and soil geochemical sampling on the property. The Harlan Project area was first identified in 1997 during a regional geochemical exploration program focused on bulk tonnage intrusive related and sediment hosted (Carlin-style) gold systems. Follow-up sampling on the Vortex Zone has identified a northwest trending gold-bismuth-arsenicantimony anomaly measuring 1600 m by 700 m that averages over 500 ppb gold in soil. Rock samples collected from this area returned values up to 6.5 g/t gold. Within this area is an intensely brecciated and clay altered core zone measuring 500 m by 300 m that contains gold in soil values up to 10.4 g/t Au and averages over 1 g/t in soil. This core zone is highly anomalous in gold, arsenic, and mercury. Mineralization within the Vortex Zone is associated with intense argillic and advanced argillic alteration and silicification with multi-episodic quartz stockwork veining and brecciation of Paleozoic Selwyn Basin sediments including locally calcareous chert pebble conglomerate, greywacke, siltstone, and shale. This sedimentary sequence has been intruded by the 90-110 million year old Tombstone Plutonic Suite, consisting of altered quartz-monzonitic to granitic rocks. This suite is also associated with the Pogo, Fort Knox and Brewery Creek deposits, all located within the Tintina Gold Belt. Numerous north-south, northwest, and northeast oriented structural zones are evident within the sedimentary sequence. These structures appear to have controlled emplacement of small dikes and sills as well as subsequent gold mineralization. A second kilometric scale target area, the West Porphyry Zone, occurs 1 kilometer west of the Vortex Zone. The 1500 by 500 meter West Porphyry Zone consists of a broad surface geochemical anomaly containing values to 2.5 g/t Au over 2.0m from rock channel sampling, and up to 230 ppb Au from silt sampling. Abundant mineralized northwest trending Tombstone Suite quartz porphyritic monzonite dikes returned values of about 1 g/t Au over 20.8 meters from channel sampling. Due to the wide-spaced nature of the traverse sampling all of the anomalous zones are open and expandable. A two-stage exploration program is envisioned for the year 2000 field season. The first stage exploration program would have the objective to prioritize final drill targets for drill testing. This objective would be met through a program of detailed geologic and structural mapping and additional surface sampling over areas of open high-level soil anomalies. Final drill targets would be prioritized based on integration of the detailed geologic and structural mapping, surface geochemistry, and regional geophysical data. The second stage program would have the objective of drill testing the highest-priority targets within the identified anomalies for their potential to develop a multi-million ounce bulk mineable gold system. This objective would be met by drilling a fence of 5-8 NQ core drill holes totalling ~1000 m (3000 ft) across the highest-priority targets. Introduction The Harlan Project, wholly owned by NovaGold Resources Inc, consists of 339 contiguous quartz mining claims, the CAM 1-8 Claims and HARLAN 1-331 Claims. This report is a summary of results obtained from the 1997 through 1999 field projects. Exploration consisted of a series of reconnaissance-style traverses involving rock, soil and silt sampling, leading to discovery and delineation of significant intrusive and sediment-hosted gold mineralization. No mechanised trenching and drilling has occurred on the property. The project has received a full 5 year Class III exploration permit, allowing for unlimited drilling and trenching of the property. Location and Access The Harlan Property is located in east-central Yukon 150 kilometers north of the town of Ross River. It is centred at 63o14’ N, 131o40’ W on NTS map sheets 1050/4 and 1050/5. The property is accessible by helicopter from the North Canol Road, Yukon Highway 6, 60 kilometers to the southeast, and from the Plata Airstrip 35 kilometers to the northwest. A winter road extends to the property from Yukon Highway 6. Sample Preparation and Assay Procedure All 1997 and 1998 samples were sent to Chemex Labs in North Vancouver. Soil sample preparation involved screening of a 100 gram sub-sample of –80 mesh material. Rock sample preparation consisted of crushing the sample to > 70% -10 mesh, followed by gold fire assaying of a 30 gram subsumable and 32-element ICP analysis of a 10 gram subsumable. ICP analysis was done using a standard aqua regia digestion of all elements except mercury. Samples taken in 1999 were sent to NAL Laboratories of Whitehorse for gold fire assay analysis, then sent to IPL Laboratories in Vancouver for 30-element ICP analysis. All rock, soil and silt sampling was quantifiably recorded in the field to ensure a high degree of quality control, and entered into standardized spreadsheet programs. Criteria for each sample included: sample type, width of chip sampling, lithology, alteration and mineralization, and “UTM” location. Property Exploration History The Harlan Project area was first identified by Viceroy Resources Inc. in 1997 during a regional geochemical sampling program focused on identifying new potential bulk tonnage intrusive related and sediment hosted gold systems. The return of widespread high gold values from reconnaissance soils and rock chip sampling indicated the potential for previously unrecognized sediment-hosted and intrusive related gold mineralization on the property. In 1998, further reconnaissance surface sampling was completed to further delineate the extent of mineralization. In 1999, NovaGold Resources Inc. acquired 100% interest in the property. NovaGold completed an exploration program in 1999 to compile the previous surface work and to develop an exploration strategy to advance the property. Sampling and prospecting was focused on the most prospective areas of the property to determine the style and intensity of alteration and the potential extent of the mineralization. Soil and rock sampling confirmed the results from previous sampling, as well as, defined some new areas for future follow-up. Regional Geology The Harlan Property is situated within the Selwyn Basin, a broad package of Paleozoic marine sediments that extend southeast from the Alaskan border to the Yukon-NWT border, north of the major northwest trending Tintina Fault. The Selwyn Basin consists of shallow shelf to off-shelf marine clastic and chemical sediments, as well as basinal clastic sediments derived from the Ancient North American Platform to the northeast. Several episodes of basin formation have occurred with deposition of chert and fine clastic sediments followed by periods of increased erosion and formation of sequences of higher-energy coarsely grained shallow-water sediments. Age of deposition ranges from Late PreCambrian to Triassic. The Selwyn Basin is comprised of numerous stratigraphic groups, including: the Hyland Group, consisting of coarse clastic “grits’ and shales formed during the late PreCambrian to early Cambrian Periods; the Ordovician to Early Devonian Road River Group, consisting of chert, shale, and siltstone; and the DevonoMississippian Earn Group, consisting of chert-pebble conglomerate, greywacke and shale. The sedimentary rocks of the Selwyn Basin have been intruded by the 90-110 million year old Mid-Cretaceous Tombstone Plutonic Suite, forming a southeast trending belt of intrusive rocks extending from Alaska to the Yukon-NWT border. These rocks vary in composition from dioritic to granitic, most commonly monzonitic to quartz-monzonitic with common porphyritic phases. These intrusives are closely associated with numerous gold deposits in the region, most notably the world class Pogo and Fort Knox deposits in Alaska. In the region of the Harlan Property, several west-northwest trending thrust faults, reactivated as dextral strike-slip faults, have caused imbrication of Selwyn Basin stratigraphy. Such “transpressional” faults are associated with fairly intense, locally overturned folding and comprise a broad deformation belt referred to as the “Gold River Fold Belt”. Stratigraphy is dominated by a southeast trending imbricated assemblage of Earn Group siliclastics with lesser Road River Group chert, siltstone, and limestone and Gull Lake Formation siliceous shale and siltstone that occur within a major northwest trending regional antiformal structure. Several Tombstone Suite quartz-monzonite to syenite stocks intrude this structural zone and occur within twenty kilometers of the property. This northwest trending regional antiformal structure also appears to be an important control to the highly elevated background levels of gold, arsenic, antimony and mercury in regional stream silt samples in the district. Property Geology A thick sequence of Earn Group locally calcareous chert-pebble conglomerate, sandstone and greywacke underlie the Harlan Property, with lesser shale to siltstone members. Several roughly southeast trending units of Road River Group shale to siltstone, and graphitic argillite units extend across the property and appear to be thrust over locally intensely altered Earn Group formation rocks. In the central part of the property called the Vortex Zone, these Earn Group coarse clastic sedimentary rocks have undergone strong argillic and advanced argillic alteration and display multi-episodic fine quartz vein and stockwork development. Southeast trending, moderately south dipping thrust faults have been mapped within Earn and Road River Group stratigraphy in the area. A suite of altered late-stage Tombstone Suite quartz-feldspar porphyritic dikes extends across the central property area. These extend primarily ESE, but also map other lineation orientations, largely in the Vortex Zone area. These dikes have intruded the graphitic argillite unit within the “West Porphyry Zone” up to three kilometers west of the central Vortex area. Dikes display variable intensities of argillic and phyllic alteration and localized silicification. An area of abundant feldspar porphyritic rubblecrop in a wooded area south of the Vortex Zone indicates the presence of a monzonitic stock. Mineralization A roughly ten square kilometer area of anomalous surface geochemistry has been identified on the Harlan Property. Within this broadly anomalous area two kilometric-scale target areas have been identified on the Harlan Property that contain highly anomalous gold, bismuth, arsenic, antimony and mercury in rock and soil geochemical samples. Vortex Zone The Vortex Zone consists of a SE trending, moderately SW dipping package of Earn Group chert-pebble conglomerate with lesser sandstone, greywacke, and shale. The area was first identified based on follow-up of anomalous regional stream silt geochemistry. An intial reconnaissance soil traverse over Vortex Zone returned a value of 771 ppb Au over a 1,400 meter wide area. This interval, open to the southeast, included a value of 10.4 g/t Au. Additional sampling has since led to delineation of an open northwest trending gold-bismuth-arsenicantimony-mercury anomaly measuring 1600 by 700 meters averaging over 500 ppb gold in soil. Rock sampling has returned values to 4.64 g/t Au from quartz-arsenopyrite stockwork veined altered sediments and to 6.5 g/t Au from quartz-bismuth stockwork veined altered sediments. The coarse clastic sediments within the Vortex Zone have undergone strong argillic and advanced alteration with abundant multi-episodic quartz vein and stockwork development. A welldeveloped pyrite and arsenopyrite sulfide “boxwork” occurs across the zone. This intense alteration area has been strongly weathered resulting in a yellowish to light green color to the rocks due to arsenic and antimony oxides. This sedimentary sequence has been intruded by a series of altered Tombstone Suite porphyritic monzonite dikes and sills. Numerous north-south, north-west, and north-east oriented structural zones are evident within the sedimentary sequence. These structures appear to have controlled the emplacement of the small intrusive dikes and sills and were an important focus for later gold mineralization. Results from all sampled intrusive material average over 200 ppb gold with the highest returned value 2.5 g/t Au over 2 meters width. The south-central portion of the Vortex Zone hosts an intensely brecciated and clay altered zone measuring 500 m by 300 m that contains gold in soil values up to 10.4 g/t Au and averages over 1 g/t in soil. Rocks within the breccia zone contain both altered dike and sedimentary clasts and are highly anomalous in gold, arsenic, and mercury. Due to the wide spaced nature of the traverse sampling on the Vortex Zone all of the anomalous zones are open and expandable. West Porphyry Zone A second kilometric scale target area, the West Porphyry Zone, occurs one kilometer west of the western limit of surface exposure of the Vortex Zone. The West Porphyry Zone, is a less welldefined area of anomalous gold, arsenic, antimony and bismuth geochemistry measuring 1500 by 500 meters in stream sediment and rock chip sampling. The area has abundant alteration within quartz feldspar porphyry dikes and has returned values to 1 g/t Au over 20 meters. This area has returned numerous rock chips values of over 1 g/t Au in altered porphyry dikes and stream silts up to 230 ppb Au. Poor exposure due to glacial cover has limited sampling to primarily along stream courses. Exposed dikes display variable intensities of clay and sericite alteration along with localized silicification. Intense alteration has locally caused complete decrepitation of the intrusives to coarse, clay rich sand. The only soil traverse completed across the area indicated mixed glacial cover of 1-2 meters that will require sampling with a soil power auger to get a representative geochemical sample. This West Porphyry area is completely open and will require further work to determine the nature and extent of mineralization. Conclusions The Harlan Project is located within a broad package of mid-Paleozoic Selwyn Basin sediments intruded by a Late Cretaceous Tombstone Suite stock and abundant late-stage porphyritic monzonite dikes. Two major kilometric-scale targets have been delineated: the Vortex Zone and West Porphyry Zone, although mineralization is not limited to these features. The Vortex Zone is the most clearly defined and consists of a strongly argillic and advanced argillic altered Earn Group chert-pebble conglomerate and altered porphyritic dikes. The zone has an open 1600 by 700 meter >500 ppb gold geochemical anomaly consisting of strongly anomalous arsenic, antimony, and bismuth. Within this, an area of intense brecciation has a geochemical signature measuring 500 by 300 meters averaging greater than 1.0 g/t Au in soils. The West Porphyry Zone, is a less well-defined area of anomalous gold, arsenic, antimony and bismuth geochemistry measuring 1500 by 500 meters. The area has abundant alteration within quartz feldspar porphyry dikes and has returned values to 1 g/t Au over 20 meters. This area is completely open and will require further work to determine the nature and extent of mineralization. Recommendations A two-stage exploration program is envisioned for the year 2000 field season. The first stage exploration program would have the objective to prioritize final drill targets for drill testing. The stage 1 objective would be met through a program of detailed geologic and structural mapping and additional surface sampling over areas of open high-level soil anomalies. Final drill targets would be prioritized based on integration of the detailed geologic mapping, surface geochemistry and regional geophysics. This part of the first stage program would last approximately two weeks beginning in mid-June. Total cost for the first stage program would be approximately C$100,000. The second stage program would have the objective of drill testing the highest-priority targets within the identified anomalies for their potential to develop a multi-million ounce bulk mineable gold system. This objective would be met by drilling a fence of 5-8 NQ core drill holes totaling ~1000 m (3000 ft) across the highest-priority targets. This second stage program would begin in early July and last approximately 40 days. Total cost for the second stage program would be approximately C$400,000. Favorable results in the second stage program could be followed-up with additional drilling in August. Estimated expenditures for the staged exploration program are summarized as follows: First Stage Program: Compilation/Planning/Mapping/target prioritization work: Supplies and Geochemistry: Helicopter costs (Hughes 500D) at $1000/hour: Field Room/Board support 3 people for 10 days: Total for First Stage Program: $36,500 $10,000 $50,000 $3,500 C$100,000 Second Stage Program: All inclusive drilling costs (3000 ft), ~$37/foot: (includes footage, geochemistry, fuel and supplies) Helicopter costs (Hughes 500D) at $1000/hour: (3-hour minimum per day for 40 days) Personnel 3 staff for 40 days at $1,000/day: Logistics/Expediting: Room/Board support 7 people for 40 days: Project Administration: 10% Contingency: Total for Second Stage Program: $110,000 $120,000 $40,000 $20,000 $30,000 $40,000 $40,000 C$400,000 References Gordey, S.P. and Anderson, R.G. 1993: Evolution of the Northern Cordilleran Miogeosyncline, Nahanni Map Area (105I), Yukon and Northwest Territories; Geological Survey of Canada, Memoir 428. Roots, C.F. Abbott, J.G. Cecile, M.P. Gordey, S.P. 1995: Bedrock Geology of the Lansing Range Map Area (105N), East Half, Hess Mountains, Yukon; Exploration and Geological Services, Yukon Region; and Indian and Northern Affairs Canada. Schulze, C. 1997: Yukon Regional Project, 1997 Progress Report; In-house report, Viceroy Exploration (Canada), Inc. Schulze, C. 1998: 1997 Geological and Geochemical Assessment Report on the Cam 1-8 and Harlan 1-108 Claims, Viceroy Exploration (Canada), Inc. Schulze, C. 1999: 1998 Geological and Geochemical Assessment Report on the Harlan Property; In-house report, Viceroy Exploration (Canada), Inc.