According to a press release a law firm is currently investigating possible fraud claims against NovaGold Resources, Inc. (AMEX: NG) on behalf of NovaGold Resources, Inc. (AMEX: NG) investors who purchased the above securities during the period between October 25, 2006 and November 23, 2007.

According to the press between October 25, 2006 and November 23, 2007 NovaGold Resources, Inc. (AMEX: NG) and its officers falsely portrayed NovaGold as a rapidly growing company on the verge of moving from a mid-tier exploration and development company to a mid-tier gold and copper production company by issuing a series of materially false and misleading statements regarding the costs, progress and viability of its multi-billion dollar Galore Creek project. According to the investigation On October 25, 2006 NovaGold issued a press release touting the results of a feasibility study performed by Hatch Ltd. (Hatch) that purportedly confirmed the economic viability of the Galore Creek project and the study estimated the capital costs for the Galore Creek project to be 2.2 billion Canadian Dollars. The Hatch Feasibility Study enabled NovaGold to successfully fend off a hostile takeover bid by mining giant Barrick Gold by maintaining the average closing price of NovaGolds shares above Barrick Golds US$16 per share tender offer and NovaGolds CEO Rick Van Nieuwenhuyse assured shareholders that at US$16, NovaGold shares are better than money in the bank, so the investigation. The investigation agues that Hatch Feasibility Study also allowed NovaGold to raise hundreds of millions of dollars in an April 2007 secondary offering, thus providing a strong motive for the potential defendants to misrepresent the Hatch Feasibility Study as a bankable study and between October 25, 2006 and November 23, 2007 NovaGold regularly and systematically assured the investing public that the construction of the Galore Creek project was on schedule and on budget.
But then on November 26, 2007, NovaGold shocked investors when it announced that it would suspend activities at Galore Creek based on the results of an updated feasibility study, which estimated the capital costs for the Galore Creek project to be $5 billion Canadian Dollars - approximately 127 percent greater than Hatch had estimated in October 2006 and as a result of this news, the NovaGolds shares declined US$10.76 per share, or more than 53 percent, to close on November 26, 2007 at US$9.48 per share, on unusually heavy trading volume, so the investigation.