Q3 2014 FACT SHEET
ALASKA
Fairbanks
Nome
DONLIN GOLD
Anchorage
Bethel
Homer
Cash Position
Market Capital
176M
$1,295M
including term deposits:
as of May 31st, 2014
Kodiak
Juneau
GALORE CREEK
Sitka
Ketchikan
BRITISH
COLUMBIA
as of July 11th, 2014 based on 317.3 million
shares issued and outstanding
Vancouver
NOVAGOLD is a well-financed precious metals
company engaged in the development of
mineral properties in North America.
NYSE-MKT, TSX: NG
Our flagship asset, the 50%-owned Donlin Gold project in Alaska is the world’s largest
undeveloped gold deposit expected to produce approximately 1,500,000 ounces
annually in the first five full years and 1,100,000 ounces annually over a 27-year mine life,
as per the 2011 updated feasibility study. With approximately 34 million ounces of gold
(504.8 million tonnes at an average grade of approximately 2.1 grams per tonne) in the
proven and probable reserve categories,
Donlin Gold is in the top 1% of all gold
deposits. The project is located on private
1
land in Alaska. The mineral and land
owners are Calista Corporation and The
Kuskokwim Corporation (TKC), two Alaska
Native corporations.
Reserve &
Resource Base
Donlin Gold
39Moz
GOLD RESOURCE
Galore Creek
~9Blbs
COPPER RESOURCE
~8Moz
~136Moz
GOLD RESOURCE
SILVER RESOURCE
(1) Represents 100% of measured and indicated resources of which
NOVAGOLD owns 50%. Measured and indicated resources inclusive of
proven and probable reserves. See “Cautionary Note Concerning Reserve
and Resource Endnotes” and “Reserve and Resource Table” with footnotes at
www.novagold.com.
NOVAGOLD also owns 50% of the Galore
Creek copper-gold-silver project located
in northern British Columbia. The 2013
drilling program confirmed significant
mineralization at the recently discovered
Legacy zone and identified areas for
resource growth. According to the prefeasibility study (PFS), Galore Creek would
be the largest and lowest cost copper mine
in Canada. A capital efficient work plan
for 2014 builds upon the 2012 and 2013
results to advance the project toward nextlevel mine planning and design.
The Company is evaluating opportunities
to sell all or a portion of its interest in
Galore Creek. Proceeds from a sale would
be used to fund development of Donlin
Gold. In the meantime, NOVAGOLD
continues to bring the Galore Creek project
up the value chain on a reduced budget.
Solid Pure Gold Advantage
The Donlin Gold Project offers:
• Size – Largest gold project in development
• Grade – Among the highest grade large-scale openpit deposits
• Production Profile – Poised to be world’s largest
gold producer; one of only three >1Moz/year
• Exploration Potential – Excellent expansion
potential along strike and at depth
• Jurisdictional Safety – Located in Alaska, 2nd
largest gold producing state in the U.S.
NOVAGOLD RESOURCES INC. 789 W Pender St., Suite 720, Vancouver, BC V6C 1H2 T 604 669 6227 TF 1 866 669 6277 info@novagold.com www.novagold.com
Q3 2014 FACT SHEET
The Donlin Gold Project
The Largest Projected Gold Producer Among Existing Development Projects
1.60
1.50
1.20
1.10
.76
0.80
.60
.58
.34
DONLIN GOLD
USA
METATES
MEXICO
KIBALI
DRC
LIVENGOOD
USA
.33
TROP. EAST RAINY RIVER
AUSTRALIA
CANADA
0.40
.19
.13
AURORA
GUYANA
HAILE
USA
Projected Annual Gold Production
(millions of ounces)
DONLIN GOLD
1.5 Moz/year in first five full years 1)
1.1 Moz/year LOM 2)
ONLY THREE
PROJECTS IN
THE WORLD
ARE SLATED TO
PRODUCE
>1Moz/YEAR
0.00
Source: Donlin Gold data: Updated Feasibility Study. Measured and indicated resources are inclusive of proven and probable reserves. See “Cautionary Note Concerning Reserve & Resource Estimates” and
“Reserve & Resource Base” with footnotes in the appendix. RBC peer group data based on large, open pit, gold focused development projects. 1) Projected annual gold production during first five full
years of mine life; 2) Projected annual gold production during full life of mine.
Permitting Advancing
Aug., 2012
Permitting began for Donlin Gold in mid-2012 with the submission of a Plan of Operations
and a Clean Water Act Section 404 permit application to the U.S. Army Corps of Engineers
(the “Corps”), the lead permitting agency.
Permitting in Alaska is a clearly defined environmental review process which is
coordinated under the National Environmental Policy Act (NEPA) and involves the
preparation of an Environmental Impact Statement (EIS). Information on the Donlin Gold
EIS is available at www.donlingoldeis.com, maintained by the Corps.
Dec. 14, 2012
Submit Initial Permit
Applications
Notice of Intent to prepare EIS
The public scoping phase of permitting was completed on schedule and our focus is now
centered on the completion of the Preliminary Draft EIS. Donlin Gold and the permitting
agencies are also working on other major permits, such as air quality, water discharge and
usage, gas pipeline, wetlands and dam safety. We remain on track and expect that the
Draft EIS will be released in 2015.
Dec. 14, 2012 – Mar. 29, 2013
Scoping: Meetings
& Comments
Mar. 29, 2013 – in progress
Draft EIS
“Since 1995, Donlin Gold has worked constructively in our region
and I know our partnership will benefit our shareholders for
many generations. Today’s agreement sets the basis for a long
and productive relationship that with construction of the mine
will provide jobs and financial value to the shareholders in our 10
villages.”
Public Review of
Draft EIS:
Meetings & Comments
– Comments from Maver Carey, President & CEO of TKC, on the recently
updated Surface Use Agreement between Donlin Gold LLC and TKC
Final EIS
Record of Decision
789 W Pender St., Suite 720, Vancouver, BC V6C 1H2 T 604 669 6227 TF 1 866 669 6277 info@novagold.com www.novagold.com
Q3 2014 FACT SHEET
Exploration Upside Offers Room to Grow
The potential for adding to reserves at Donlin Gold is considered excellent, both within
the proposed mine area, along strike, at depth, and throughout the property. The future
mine is situated in a three kilometer segment of a mineralized belt that is eight kilometers
long, all current reserves and resources are contained in the Donlin Gold pits.
Snow
Quartz
Dome
Ophir
Lewis
ACMA
Donlin Gold Pits
39.0 Moz M&I Resource
6.0 Moz Inf Resource
See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Table” with footnotes at www.novagold.com
Extraordinary Leverage to Gold
NPV Increases ~20x with ~2x Increase in Gold Price
$27.0B
NPV at 5%
NPV at 0%
25,000
NPV (US$ millions)
The leverage to higher gold prices Donlin Gold enjoys is
exceptional. If put into production in accordance with the 2011
updated feasibility study, the project would be among the world’s
most significant low-operating-cost and long-lived gold mines
with an average all-in sustaining cost of US$7351 per ounce over
its projected 27-year mine life. At current gold prices the project
has a positive return and this return jumps to double digits with
higher gold prices.
30,000
$19.2B
20,000
$14.2B
15,000
$11.6B
10,000
$6.2B
SOURCE: updated feasibility study. All dollar figures are in USD and reflect after-tax net present value (at a 0% and
5% discount rates) of the Donlin Gold project as of 1/1/2014. At a 5% discount rate, the net present value is $547m
at $1,200 gold; $4,581m at $1700 gold; $6,722m at $2,000 gold; and $10,243m at $2,500 gold. Project development
costs prior to 1/1/2014 are treated as sunk costs. See “Cautionary Note Concerning Reserve & Resource Estimates” and
“Reserve & Resource Table” with footnotes at www.novagold.com
5,000
0
$1,200
$1,500
$1,700
$2,000
$2,500
Gold Price (US$)
Galore Creek
2012-2013
• Completed a 27,900-meter drilling campaign in 2012 which led to the discovery of
the Legacy zone, a new 700-meter long mineralized zone adjacent to the Central Pit
• Completed the 2013 in-fill and exploration drill program under budget, exceeding
objectives with 11,600 meters drilled
• Confirmed significant mineralization at the Legacy zone
• Identified areas for potential resource growth
2014 activities
• Execute capital efficient work plan incorporating 2012 and 2013 drill results to
advance the project toward next-level mine planning and design
- Technical studies:
Water and waste management
Site layout
789 W Pender St., Suite 720, Vancouver, BC V6C 1H2 T 604 669 6227 TF 1 866 669 6277 info@novagold.com www.novagold.com
Q3 2014 FACT SHEET
Strong Cash Position
70%
120
Interest & other1
Galore Creek
Reduction
100
US$ (millions)
NOVAGOLD maintains a strong balance sheet with over US$176
million in cash and term deposits at May 31, 2014. Approximately
US$16 million of convertible notes remain outstanding and are
due in May 2015. Our budget for 2014 is approximately US$30
million, about US$100 million dollars less than our expenditures in
2012. We believe that our cash balance is sufficient to fulfill all of
the Company’s current financial obligations including funding the
advancement of Donlin Gold through permitting and support of
ongoing activities at Galore Creek.
Reduced Costs
140
80
23%
60
Reduction
40
Donlin Gold
G&A and Misc.
DiscOps
1) The Notes mature on May 1, 2015.
2) 2014 anticipated budget expenditure
disclosed on February 11, 2014.
20
0
2012 Actual
2013 Actual
2014 Budget2
Board of Directors
NOVAGOLD believes in:
▶▶ Conserving natural resources and the environment
▶▶ Sharing the benefits of economic activity; and
▶▶ Enhancing the well-being of people in local communities
Thomas Kaplan, Chairman, NOVAGOLD;
Chairman & CIO, The Electrum Group LLC
Sharon Dowdall, Corporate Director
Marc Faber, Managing Director, Marc
Faber Ltd
Gregory Lang, President & CEO
NOVAGOLD is committed to
Gillyeard Leathley, COO & Director of
Sunward Resources
corporate social responsibility
Igor Levental, President, The Electrum
Group LLC
and to “doing it right” from the
Kalidas Madhavpeddi, President, Azteca
Consulting LLC
very beginning. Procedures
Gerald McConnell, CEO, Namibia Rare
Earths Inc.
and policies the Company
put in place in its early years
are the foundation on which
NOVAGOLD operates today. The
Company continues to ensure
all of its projects are developed
Clynton Nauman, CEO, Alexco Resource
Corp.
Rick Van Nieuwenhuyse, President & CEO,
NovaCopper Inc.
Anthony Walsh, Corporate Director
Senior Management
Greg Lang, President & CEO
to the highest environmental,
David Deisley, EVP & General Counsel
social and economic standards.
David Ottewell, VP & CFO
How we do business is just as
Mélanie Hennessey, VP Corporate
Communications
important as what we do.
Ron Rimelman, VP Environment,
Health, Safety & Sustainability
Richard Williams, VP Engineering &
Development
www.novagold.com
Analyst Coverage
Adam Graf, Cowen Securities
John Bridges, J.P. Morgan
Heather White, a consultant to the company and a qualified person under NI43-101, has approved the scientific and technical information in the Fact Sheet. All statements, other than statements of
historical fact, set forth herein including, without limitation, statements relating to Donlin Gold’s and Galore Creek’s future operating or financial performance, are forward-looking statements within the
meaning of applicable securities laws. These forward-looking statements are set forth in the information pertaining to the anticipated production capacity at Donlin Gold and Galore Creek, expectations
as to the sale of the Galore Creek Project or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. See “Cautionary Note Regarding
Forward-Looking Statements” at www.novagold.com.
Stephen Walker, RBC Capital Markets
789 W Pender St., Suite 720, Vancouver, BC V6C 1H2 T 604 669 6227 TF 1 866 669 6277 info@novagold.com www.novagold.com