Novagold Resources Inc. · AMEX:NG
Novagold Resources — Swiss Mining Institute Conference 2021
34 slides from Novagold Resources's conference presentation, Mar 22, 2021
Slide 1: Swiss Mining Institute Conference
Swiss Mining Institute Conference TSX, NYSE American: NG | novagold.com | March 22-24, 2021
Slide 2: Cautionary Statements
Cautionary Statements REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation, including the United States Private Securi
Slide 3: Donlin Gold is a Tier-One Asset in a Tier-One Jurisdiction
NOVAGOLD: Donlin Gold is a Tier-One Asset1 in a Tier-One Jurisdiction2 Unique asset with strong, investor-friendly attributes SIZE: 39,000,000 gold ounces contained in measured and indicated mineral resources3 GRADE: 2.24 g/t4, more than double the world average grade5 EXPLORATION POTENTIAL: Endowme
Slide 4: COVID-19 Response
DONLIN GOLD: COVID-19 Response Keeping our workforce healthy and safe The following procedures, consistent with the State of Alaska’s health and safety rules, recommendations, and precautions, are designed to ensure the safety and well-being of the workforce as well as their families and local commu
Slide 5: COVID-19 Response (continued)
DONLIN GOLD: COVID-19 Response (continued) Continued active external affairs and community engagement during pandemic Providing a helping hand during COVID-19 and deepening partnerships: • Delivered food to every home in eight middle Kuskokwim villages • Donated thousands of pounds of food to shelte
Slide 6: NOVAGOLD: Sustainability
NOVAGOLD: Sustainability Committed to responsible mining, protection of human life, health, and the environment Building long-term, collaborative working relationships with Y-K communities based on respect for the values, the culture, and the language of the people in the Y-K region. • Committed to
Slide 7: Health, Safety, Training and Education
NOVAGOLD: Health, Safety, Training and Education Committed to the safety, health and welfare of our workforce and their families NOVAGOLD, Donlin Gold, and its partners are committed to providing an environment in which all our people make it home safely every day while empowering individuals and co
Slide 8: NOVAGOLD: Environment
NOVAGOLD: Environment Recognizing environmental management as a corporate priority NOVAGOLD supports a project development plan that considers full life-of-mine risks and opportunities – from exploration through to development, operations, and finally closure and reclamation. 2020 Achievements • Wor
Slide 9: Long-Term Native Corporation Partners
DONLIN GOLD: Long-Term Native Corporation Partners The Donlin Gold project location was specifically selected for its resource development potential • The Alaska Native Claims Settlement Act1 (ANSCA) of 1971 resolved Alaska Native land claims, allotting 44 million acres for land use to Native Corpor
Slide 10: Native Corporation partner quotes
“The Kuskokwim Corporation, TKC, has been involved every step of the way, in not only inviting Donlin Gold onto our land, but also in writing the permits, in environmental oversight, and really ensuring that this is the best possible project on our land to provide those opportunities for our shareho
Slide 11: Largest Gold Development Project in its Category
DONLIN GOLD: Largest Gold Development Project in its Category1 A resource more than four times the size of the peer group average 50.0 39.0 2 8.4 40.0 Donlin Gold2 Moz 39.0 M&I Gold Resource (millions of ounces) 30.0 Moz peer group average1 20.0 18.8 11.7 11.5 11.3 10.9 10.0 10.0 8.2 8.1 8.0 6.3 5.0
Slide 12: Double the Global Average Gold Grade
DONLIN GOLD: Double the Global Average Gold Grade1 Among the world’s highest-grade known open-pit gold deposits 2.24 1.05 g/t g/t Donlin Gold average grade2 Global average grade1 While global average gold grades are declining, Donlin Gold’s grade provides resilience through commodity price cycles 1)
Slide 13: Positioned to be One of the World's Largest Gold Mines
DONLIN GOLD: Positioned to be One of the World’s Largest Gold Mines Positioned to become a million-ounce gold producer1 1.1 1.80 Moz/yr1 1.60 1.40 1.502 0.3 Projected Annual Gold Production (millions of ounces) Moz/yr3 1.20 1.00 0.80 Donlin Gold’s 27-year mine life North and South American gold- foc
Slide 14: The Largest Gold Project in a Safe Jurisdiction
DONLIN GOLD: The Largest Gold Project in a Safe Jurisdiction1 A comparison of the top five annual gold producing operations2 and the five largest development-stage gold projects3 ALASKA’S JURISDICTIONAL APPEAL 11.5Moz • Mineral potential Livengood 46.0Moz 1.4Moz Sukhoi Log • Established mining indus
Slide 15: Not All Ounces are The Same
DONLIN GOLD: Not All Ounces are The Same Global Gold Reserves1 Ranked by Favorability of Mining Jurisdiction2 Grades above scale3 50.0 Increasing Jurisdictional Risk2 5.0 45.0 4.5 P&P Grade (g/t Au) 40.0 4.0 Million Ounces of Gold Reserves (P&P) 35.0 3.5 P&P Reserve Grade (g/t Au) 30.0 3.0 25.0 2.5
Slide 16: Significant Value Upside with Higher Gold Prices
DONLIN GOLD: Significant Value Upside with Higher Gold Prices Donlin Gold NPV1 increases ~20x with ~2x increase in gold price 27.0B $2,500 19.2B $2,000 • Project return increases substantially with higher gold prices Gold Price (US$ per oz) 14.6B Net Present Value (NPV) (US$ in Billions) • Good payb
Slide 17: 2020 Drill Program
DONLIN GOLD: 2020 Drill Program Encouraging results to date advancing the unique value proposition1 • Mineralized intercepts continue to encounter grades higher than predicted by previous modeling • Drilling was completed as of September with 85 core holes encompassing 23,400 meters, with approximat
Slide 18: 2020 Permitting Update
DONLIN GOLD: 2020 Permitting Update Key federal permits for the project received and state permitting is well advanced FEDERAL PERMITTING Final Environmental Impact Statement (EIS) Joint Record of Decision (ROD) by the Corps and Bureau of Land Management Section 10/404 (wetlands) permit and BLM Offe
Slide 19: Project Catalysts
DONLIN GOLD: Project Catalysts Multi-generational sustainable economic opportunity • Report remaining drill assay results from 2020 drill program • Integrate the 2020 drill program results into the geologic model • To complete the model update, additional confirmation and extension drilling are plan
Slide 20: The Next Big Gold Discovery Could be at Donlin Gold
DONLIN GOLD: The Next Big Gold Discovery Could be at Donlin Gold Substantial exploration potential along the 8 km-long mineralized trend, located on less than 5% of Donlin Gold’s land position • From 2006 to 2011, M&I resources increased 135% (16.6Moz1 to 39.0Moz2) through a well-executed exploratio
Slide 21: Maintaining a Strong Treasury
NOVAGOLD: Maintaining a Strong Treasury A healthy treasury to advance Donlin Gold to the next stage of development $ 31-35M BUDGET anticipated 2021 expenditures $ 122M $ 75M disclosed on January 27, 20211 TREASURY cash and term deposit balance receivable from on November 30, 2020 Newmont in July 202
Slide 22: Strong Institutional Shareholder and Management Support
NOVAGOLD: Strong Institutional Shareholder and Management Support The 10 largest shareholders represent 63.5% of shares issued and outstanding1 Named Executive Officers’ ownership has increased to 2,689,100 shares2 since joining the company 36.5% all other shareholders 63.5% top 10 shareholders 25.7
Slide 23: Donlin Gold is a Tier-One Asset in a Tier-One Jurisdiction
NOVAGOLD: Donlin Gold is a Tier-One Asset1 in a Tier-One Jurisdiction2 Unique asset with strong, investor-friendly attributes SIZE: 39,000,000 gold ounces contained in measured and indicated mineral resources3 GRADE: 2.24 g/t4, more than double the world average grade5 EXPLORATION POTENTIAL: Endowme
Slide 24: Appendix
APPENDIX
Slide 25: Project Highlights
DONLIN GOLD: Project Highlights Poised to be one of the largest gold producers in the world1 Reserves2: 33.9 Moz Au (505M tonnes grading 2.09 g/t) Resources2: 39.0 Moz M&I (541M tonnes grading 2.24 g/t, inclusive of reserves) and 6.0 Moz Inferred (92 M tonnes grading 2.02 g/t) Mine Life: ~27 years P
Slide 26: Promises Kept, Excellent Partnerships
NOVAGOLD: Promises Kept, Excellent Partnerships Track record of successfully translating company goals into shareholder value Culture of mutual respect between NOVAGOLD, Donlin Gold and people in remote villages and throughout Alaska • Well established partnership with Native Corporations • Employme
Slide 27: Calista and TKC Stakeholder Region
DONLIN GOLD: Calista and TKC Stakeholder Region Donlin Gold has been in partnership with Calista Corp. and The Kuskokwim Corporation since 1995 The 10 villages of The Kuskokwim Corporation Calista Corporation Region 27
Slide 28: Capital Expenditures
DONLIN GOLD: Capital Expenditures1 Well-positioned to share upfront costs with third parties Areas US$M2 Opportunities2 Mining 345 Leasing equipment ~$188M of $345M3 Site preparation/roads 236 Process facilities 1,326 Oxygen plant could be built by 3rd party ~$138M of $1,326M3 Tailings 120 Utilities
Slide 29: Expected to Provide Decades of Low-Cost Production
DONLIN GOLD: Expected to Provide Decades of Low-Cost Production Low operating cash costs and all-in sustaining costs1 First Five Years Life of Mine Costs applicable to sales (millions) $3,003 Costs applicable to sales (millions) $19,240 Cash Costs Per Ounce Cash Costs Per Ounce Open-pit mining 133 O
Slide 30: The Management Team
NOVAGOLD: The Management Team Industry leaders to bring Donlin Gold through permitting & beyond • Former President of Barrick Gold North America Gregory Lang • 35+ years experience building & operating major open-pit and underground mines (Goldstrike, Cortez, Turquoise Ridge, President and CEO Bald
Slide 31: A Diverse Board of Directors to Guide Donlin Gold
NOVAGOLD: A Diverse Board of Directors to Guide Donlin Gold Dr. Thomas Kaplan • Chairman and CEO of The Electrum Group LLC, a privately held natural resources investment management company that controls a Chairman diversified portfolio of precious and base metals assets • Former Executive Vice Presi
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation makes reference to certain non-GAAP measures. These measures are not recognized measures under US GAAP and do not have a standardized meaning prescribed by US GAAP and are therefore unlikely to be comparable to similar measure
Slide 33: Mineral Reserves & Mineral Resources
NOVAGOLD: Mineral Reserves & Mineral Resources Donlin Gold (100% basis)* Tonnage Grade Metal content * Mineral reserves and GOLD kt g/t Au koz Au resources are reported on a 100% basis. NOVAGOLD and Reserves1 Barrick each own 50% of the Donlin Gold project. Proven 7,683 2.32 573 Donlin Gold approxim
Slide 34: NOVAGOLD Resources Inc. contact
NOVAGOLD RESOURCES INC. Suite 1860 – 400 Burrard Street Mélanie Hennessey Vancouver, BC, Canada V6C 3A6 VP, Corporate Communications T: 604 669 6227 melanie.hennessey@novagold.com TF: 1 866 669 6227 F: 604 669 6272 Jason Mercier www.novagold.com Manager, Investor Relations info@novagold.com jason.me
NOVAGOLD Resources — Swiss Mining Institute Conference 2021 on 6ix