OTTAWA (Reuters) - A district court in Alaska has thrown out a NovaGold Resources lawsuit contesting Barrick Gold's behavior in developing the Donlin Creek gold project, the companies said on Thursday.

It marks the latest chapter in a rocky relationship between the two companies, which locked horns last year when Barrick, the world's No. 1 gold producer, launched an unsuccessful hostile bid to buy the junior miner.

NovaGold owns a 70 percent share of Donlin Creek, located 280 miles west of Anchorage, Alaska. Barrick, which inherited its stake when it took over gold miner Placer Dome in 2006, holds the remaining 30 percent.

NovaGold filed its suit in August 2006, alleging breach of contract and breach of fiduciary duty. It also sought judgment on Barrick's ability to meet the conditions required to earn an additional 40 percent stake in the project.

The court ruled against the allegations and said it was too early to assess whether Barrick can meet the requirements to boost its stake.

"We are satisfied that the Alaskan court found in Barrick's favor and has entirely dismissed NovaGold's series of allegations," Patrick Garver, Barrick's general counsel, said in a statement. "We vigorously disputed NovaGold's allegations that implied improper conduct by Barrick."

In granting Barrick's motion to dismiss, Judge Timothy Burgess said a ruling must await the November 2007 deadline for Barrick to meet the back-in requirements.

These include completion of a final, bankable feasibility study and a board decision on construction of a mine that will produce not less than 600,000 ounces of gold a year, NovaGold said.

"NovaGold's argument is essentially that (Barrick) can't make a positive production decision by November because they will not have the permits in place. And how can you make a positive production decision to build it if you don't have the permits in place?" Haywood Securities analyst Kerry Smith said in an interview.

Environmental approval and permitting for Donlin Creek will not start until after the November deadline, NovaGold said, and will likely not be completed for an additional two to three years.

"I've asked Barrick point blank: Does the agreement say that you have to have your permits in place? And they say no," Smith said. "There's dispute over the language in the agreement. NovaGold says no, they have to have their permits in place."

Barrick said it will continue working to complete the study and intends to present it to NovaGold by the deadline.

"I'm not a lawyer, but my take on it is that Barrick will be able to earn their interest and the courts will uphold that earn-in if it is appealed," Smith said.

Barrick shares rose 31 Canadian cents to C$35.55 on the Toronto Stock Exchange, and NovaGold stock added 12 Canadian cents to C$16.97.