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NovaGold reports second-quarter loss of $7.1-million

Gold bars.

HO/Reuters

NovaGold Resources Inc. reported a $7.1-million second-quarter loss attributable to shareholders on Wednesday, about half the comparable loss a year earlier due to gains on the sale of gold mining claims near Nome, Alaska.

The company recorded a gain of $16.1-million on sale of the assets for the quarter ended May 31. There wasn't a comparable amount in the second quarter of fiscal 2010.

NovaGold said its loss for the quarter amounted to three cents per share compared with a loss of $15.8-million or seven cents per share a year ago.

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Revenue for the development stage company totalled $766,000, up from $192,000 in the second quarter of 2010.

NovaGold has several projects under development including the Galore Creek gold project with Teck Resources Ltd. and the Donlin Creek property in Alaska, which it shares with Barrick Gold Corp. .

Development of Galore Creek was suspended in November 2007 amid spiralling costs. NovaGold said it expects to release a pre-feasibility study on the project later this month. The report will set capital and operating cost estimates and outline permitting and construction requirements.

NovaGold shares closed up 26 cents at $9.89 Wednesday on the Toronto Stock Exchange.

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