Novagold Resources Inc. · AMEX:NG
Novagold Resources — Global Hunter Securities Conference (July 2011)
32 slides from Novagold Resources's conference presentation, Jul 19, 2011
Slide 1: NovaGold Resources Inc. – Turning experience & opportunity into gold
NovaGold Resources Inc. Turning experience & opportunity into gold Global Hunter Securities Conference NYSE‐AMEX, TSX: NG July 19, 2011
Slide 2: Forward-looking Statements
Forward‐looking Statements This presentation includes certain “forward‐looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, statements rel
Slide 3: NovaGold Resources Inc.
NovaGold Resources Inc. • Three world‐class assets: Donlin Gold, Galore Creek & Ambler • Two world‐class partners: Barrick & Teck • Development opportunity for two large scale mines • Low geopolitical risk, strong community relationships • Excellent liquidity with average 4.3M shares daily 1 • Super
Slide 4: World-Class Gold and Copper
World‐Class Gold and Copper 16.8M ounces Gold Reserves 6.2M ounces Gold M&I 6.0B pounds Copper M&I 94M ounces Silver M&I 4.4M ounces Gold Inferred 2.8B pounds Copper Inferred 53M ounces Silver Inferred • One of the largest reserve/resource bases of any junior or intermediate company • Located in pol
Slide 5: Donlin Gold
50/50 Partnership with Barrick Donlin Gold Alaska Native Group: Calista, TKC 33.6M ozs Gold Proven & Probable 1 4.3Mozs Gold Measured & Indicated 1 4.4Mozs Gold Inferred 1 • Open pit, 2.2 g/t, ~25 year mine life • Finalizing feasibility study, preparing for permitting • Significant exploration upsid
Slide 6: Donlin Gold Exploration Upside
Donlin Gold Exploration Upside 3km pit within 8km district Numerous exploration targets Located entirely on private land selected for mining 6 6
Slide 7: Donlin Gold: Comparison of Undeveloped Gold Projects in the Americas
Donlin Gold Comparison of Undeveloped Gold Projects in the Americas 45 Donlin Creek: 2.2 g/t gold, open pit Millions of ozs of Gold Resources 40 35 Proven & Probable Reserves 1 Measured & Indicated Resources 30 Inferred Resources 25 20 15 10 5 0 Donlin Creek Detour Lake Metates Angostura Livengood M
Slide 8: Donlin Gold Update
Donlin Gold Update • 50/50 partnership with Barrick • Expertise to advance project, underscores quality of project • Excellent relationship with Alaska Native partners and regulators • Continued proactive community engagement to ensure public support and social license to operate • Estimated 1.3 Moz
Slide 9: Galore Creek
50/50 Partnership with Teck Galore Creek First Nation Group: Tahltan 8.9Blbs Copper 3.5B lbs Copper Measured & Indicated 1 Inferred 1 7.3M 3.3M ozs Gold ozs Gold Measured & Indicated 1 Inferred 1 123M 61M ozs Silver ozs Silver Measured & Indicated 1 Inferred 1 • Open pit and conventional flotation,
Slide 10: Galore Creek: Comparison of Undeveloped Copper-Gold Projects
Galore Creek Comparison of Undeveloped Copper‐Gold Projects in the Americas 20 20 Billions of lbs of Copper Resource 55 Blbs Cu M&I 55 Mozs Au M&I Gold M&I Resource Millions of ozs of Gold Resource 26 Blbs Cu Inf 20 Mozs Au Inf Gold Inferred Resource Copper M&I Resource Galore Creek: Copper Inferred
Slide 11: Galore Creek Update
Galore Creek Update • 50/50 partnership with Teck • Participation agreement with Tahltan Nation 9 Teck completed $373 million earn‐in in June 9 Partners approved $30.5 million budget for remainder of 2011 for geotechnical and resource conversion drilling, engineering and environmental work to prepar
Slide 12: Ambler
NovaGold owns 100% Ambler Alaskan Native Partner: NANA 1.5B lbs Copper 940M lbs Copper Measured & Indicated 1 Inferred 1 2.2B lbs Zinc 1.3B lbs Zinc Measured & Indicated 1 Inferred 1 0.5M ozs Gold 0.3M ozs Gold Measured & Indicated 1 Inferred 1 32M ozs Silver 19M ozs Silver Measured & Indicated 1 In
Slide 13: Ambler Preliminary Economic Assessment
Ambler Preliminary Economic Assessment • High‐grade base metals property; Company controls large land position Æ exploration potential • Indicated resources: 16.8 million tonnes averaging 4.1% Cu and 6.0% Zn • Inferred resources: 12.1 million tonnes averaging 3.5% Cu and 4.9% Zn 9 Base case1: Pre‐ta
Slide 14: Ambler Preliminary Economic Assessment – Underground mining operation
Ambler Preliminary Economic Assessment 9 Underground mining operation • 25‐year mine life • Up to 4,000 tpd throughput 9 Three marketable concentrates • Copper with gold byproduct (86.8% copper) • Lead with silver and gold byproducts (68.1% lead) • Zinc with silver byproduct (81.1% zinc) 9 Average a
Slide 15: Ambler: Comparison of Global VMS Copper-Zinc-Gold-Silver Projects
Ambler Comparison of Global VMS Copper‐Zinc‐Gold‐Silver Projects 4,000 3,500 Millions of lbs of Copper‐Equiv Resource Thousands of ozs of Gold‐Equiv Resource Gold‐Equiv M&I Resource 3,500 Gold‐Equiv Inferred Resource 3,000 Ambler: Copper‐Equiv M&I Resource Copper‐Equiv Inferred Resource 3,000 4% Cu,
Slide 16: Ambler District – Exploration Potential
Ambler District – Exploration Potential 16
Slide 17: Ambler Update
Ambler Update 9 Preliminary Economic Assessment to establish economics 9 Operations established at camp 9 Two drill rigs operating – 10,000 metres through season 9 Wardrop retained to commence engineering studies ¾ Agreement with NANA Regional Corporation for collaborative exploration and developmen
Slide 18: NovaGold Value Drivers
NovaGold Value Drivers • Galore Creek • Complete pre‐feasibility study, end of July 2011 • Exploration to increase M&I resources • GCMC Board decision on next steps to advance project • Donlin Gold • Complete feasibility revision, H2‐2011 • Donlin Gold Board decision to advance to permitting • Amble
Slide 19: 2011 Second Quarter Financials
2011 Second Quarter Financials Quarter ended Highlights May 31, 2011 Cash $111.6M Working capital $108.0M Total assets $790.0M • Liquidity position remains strong • Sufficient cash to fund current commitments 19
Slide 20: Comparative Gold Resources in the Americas
Comparative Gold Resources in the Americas Intermediate 50 Producers Junior Millions of ozs Gold Resource 40 Developers Producers 30 20 10 0 Proven & Probable Measured & Indicated Inferred Source: Intierra and company websites. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Res
Slide 21: Enterprise Value per Ounce in the Americas
Enterprise Value per Ounce in the Americas Recent Acquisitions $800 Avg $745 EV/oz Intermediate $700 Developers Junior Producers Producers $600 Avg $150 EV/oz Avg $330 EV/oz Avg $390 EV/oz $500 $400 $300 NG $200 $120 EV/oz $100 $0 21
Slide 22: Value of Gold Resource Per Dollar Invested
Value of Gold Resource Per Dollar Invested = Leverage Gold only, not including value from $10 copper and silver resources Value of Gold in US Dollars $8 $6 $4 $2 $0 Source: Intierra, Morgan Stanley and Company websites. TSX share price at May 20, 2011. Calculated using $1200/oz gold. Your dollar 22
Slide 23: Why NovaGold?
Why NovaGold? Superior Value Superior Leverage • Large, high‐quality projects • Safe geopolitical locations • Senior operating partners • Strong community relationships • Experienced management team • Continued resource growth ¾ NovaGold = Exposure to gold and copper Two metals with strong fundament
Slide 24: Appendix
Hie, NovaGold Appendix
Slide 25: Share Capitalization
Share Capitalization Issued and Options Warrants Fully diluted 1 outstanding outstanding 238.1M 11.8M 41.8M 291.7M 1) As of May 27, 2011. Fully diluted number excludes convertible notes. 25
Slide 26: Sustainability Commitments
Sustainability Commitments • NovaGold publishes annual, comprehensive sustainability reports • NovaGold supports the UN Global Compact • NovaGold supports the International Council on Mining & Metals Sustainability Principles 1. Ethical business practices and sound corporate governance 2. Sustainabl
Slide 27: Management & Board
Management & Board Management Team Board of Directors • Rick Van Nieuwenhuyse – President & CEO • Gerald McConnell, QC – Chairman • Gil Leathley – Senior VP & COO • Marc Faber • Elaine Sanders – VP & CFO • Tony Giardini, CA • Kevin Francis – VP Resources • Igor Levental • Sacha Iley – VP Human Resou
Slide 28: Reserve & Resource Base
Reserve & Resource Base NovaGold Resources Inc. and i 7 7 and ‘ces for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at May 20, 2011 Reserves Property Reserve Tn Situ Grade Total Contained Metal NovaGoid Share Net After Earn-Ins % Ownership Category Aug/t | Aga/t | cu% | zn% | Pb%
Slide 29: Reserve & Resource Base – Footnotes
Reserve & Resource Base – Footnotes Notes 1. These resource estimates have been prepared in accordance with National Instrument 43‐101 and the Canadian Institute of Mining and Metallurgy Resource Classification System, unless otherwise noted. 2. See numbered footnotes below on resource information.
Slide 30: Cautionary Note Concerning Reserve & Resource Estimates
Cautionary Note Concerning Reserve & Resource Estimates This presentation uses the terms “proven reserves”, “probable reserves”, “measured”, “indicated” and “inferred” resources. United States investors are advised that, while these terms are recognized and required by Canadian securities laws, the
Slide 31: Analyst Coverage
Analyst Coverage Dahlman Rose RBC Capital Markets Adam Graf Stephen Walker 212‐702‐4504 416‐842‐4120 J.P. Morgan Wellington West Capital Markets John Bridges Paolo Lostritto 212‐622‐6430 416‐640‐4951 McNicoll, Lewis, Vlak Imaru Casanova 212‐542‐5869 31
Slide 32: Contact NovaGold
Contact NovaGold NovaGold Resources Inc. Suite 2300 – 200 Granville St Vancouver, BC Canada V6C 1S4 1‐866‐669‐6227 www.novagold.net info@novagold.net Ariadna Peretz Investor Relations ariadna.peretz@novagold.net 32
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