Novagold Resources Inc. · AMEX:NG
Novagold Resources — Precious Metals Summit Beaver Creek 2021
33 slides from Novagold Resources's conference presentation, Sep 8, 2021
Slide 1: Precious Metals Summit Beaver Creek, CO
Precious Metals Summit Beaver Creek, CO TSX, NYSE American: NG | novagold.com | September 8-11, 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: NOVAGOLD: 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: NOVAGOLD: 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 5: DONLIN GOLD: COVID-19 Protocol Incorporates Increased Vigilance
DONLIN GOLD: COVID-19 Protocol Incorporates Increased Vigilance Continuing to keep our workforce healthy and safe at both work sites and home In August, Donlin Gold enhanced its Community and Workforce Protection Plan to ensure the safety and well-being of its workforce, their families, and local co
Slide 6: Largest Gold Development Project in its Category
DONLIN GOLD: Largest Gold Development Project in its Category1 A resource more than five times the size of the peer group average 50.0 39.02 7.7 40.0 Donlin Gold2 Moz 39.0 M&I Gold Resource (millions of ounces) 30.0 Moz peer group average1 20.0 11.7 11.5 11.3 10.9 10.0 10.0 8.2 8.1 8.0 6.3 5.0 4.6 4
Slide 7: 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 1.12 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 8: 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 1.60 Moz/yr1 1.40 0.3 Projected Annual Gold Production (millions of ounces) 1.502 1.20 Moz/yr3 1.00 0.80 Donlin Gold’s 27-year mine life North and South American gold- foc
Slide 9: 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 8km 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 exploration prog
Slide 10: One of the Largest Gold Projects in a Safe Jurisdiction
DONLIN GOLD: One of the Largest Gold Projects in a Safe Jurisdiction1 A comparison of the top three gold producing operations2 and the five largest development-stage gold projects3 ALASKA’S JURISDICTIONAL APPEAL 11.5Moz • Mineral potential Livengood 46.0Moz 1.2Moz Sukhoi Log • Established mining ind
Slide 11: Alaska Native Corporation Partnerships Elevate the Project
DONLIN GOLD: Alaska Native Corporation Partnerships Elevate the Project Land valuable for resource potential was selected by regional Alaska Native Corporations under ANCSA and resource development companies were invited by the Native Corporations to explore Donlin Gold has Life-of-Mine agreements w
Slide 12: A True 50:50 Partnership with Barrick Gold
DONLIN GOLD: A True 50:50 Partnership with Barrick Gold Taking the Donlin Gold project up the value chain together since 2001 How does the Donlin Gold LLC partnership work? Donlin has been a great journey for me personally, because the whole • Donlin Gold LLC is owned 50:50 by Barrick Gold and NOVAG
Slide 13: 2021 Drill Program
DONLIN GOLD: 2021 Drill Program Results from initial 2021 assays validate consistent approach to bringing Donlin Gold up the value chain • Initial results reported September 2, 2021 support mineral resources, with significant new high-grade intercepts, and are consistent with 2020 results • Assays d
Slide 14: 2021 Drill Program
DONLIN GOLD: 2021 Drill Program The ACMA and Lewis deposits are open at depth and along strike, where drilling is sparse Longitudinal Section View of the ACMA and Lewis Deposits A’ A’ A Lewis Pit ACMA Pit Lewis Pit ACMA Pit A Divide Area Pit design is the Mineral Reserve pit from the 2021 Technical
Slide 15: 2021 Drill Program
DONLIN GOLD: 2021 Drill Program 15
Slide 16: Barrick and NOVAGOLD Optimizing Mine Design at Donlin Gold
Barrick and NOVAGOLD Optimizing Mine Design at Donlin Gold “The 2021 drill program is validating our geologic modeling concepts; in particular with regards to demonstrating the controls over mineralization in the different parts of the deposits. This improved understanding is a necessary step toward
Slide 17: Permitting Update
DONLIN GOLD: 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 Army Corps of Engineers and Bureau of Land Management Section 10/404 (wetlands)
Slide 18: Investing in Camp Improvements
DONLIN GOLD: Investing in Camp Improvements Upgraded facilities and equipment at site Donlin Gold has made significant improvements at camp • Mobile equipment purchases: Telehandler, water truck, 5yd. Dump truck, F150 pickup, and 2 Polaris side-by-sides • Larger kitchen facility • New recreation are
Slide 19: NOVAGOLD: 2020 Sustainability Performance
NOVAGOLD: 2020 Sustainability Performance Community engagement 2020: 320 community interactions Through collaborative ESG efforts, Governance engagement 2020: reached out to ~92% shareholders NOVAGOLD and the Donlin Gold project are committed to responsible mining — positively impacting people and t
Slide 20: Project Catalysts
DONLIN GOLD: Project Catalysts 2021 Drill Program Expected to be Final Confirmation Before Shift of Focus to a New Feasibility Study • Complete the geologic model update with additional 2021 confirmation and extension drilling, focusing on the continuity and structural controls of the higher-grade m
Slide 21: Significant Value Upside with Higher Gold Prices
DONLIN GOLD: Significant Value Upside with Higher Gold Prices Donlin Gold NPV5% increases by greater than $8 billion with $1,000/oz increase in gold price1 31.6B $2,500 22.5B $2,000 • Project return increases substantially with higher gold prices Gold Price (US$ per oz) 17.5B • Good payback at a bro
Slide 22: NOVAGOLD: 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 BUDGET anticipated 2021 expenditures 108M $ 75M $25M disclosed on January 27, 20211 $ TREASURY $108M cash and term deposit balance on May 31, 2021 receivable from plus $
Slide 23: Strong Institutional Shareholder and Management Support
NOVAGOLD: Strong Institutional Shareholder and Management Support The 10 largest shareholders represent 64.5% of shares issued and outstanding1 Named Executive Officers’ ownership has increased to 2,698,074 shares2 since joining the company 35.5% all other shareholders 64.5% top 10 shareholders 25.7
Slide 24: NOVAGOLD: 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 25: APPENDIX
APPENDIX
Slide 26: NOVAGOLD: 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 27: NOVAGOLD: 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 28: NOVAGOLD: Company History Highlights
NOVAGOLD: Company History Highlights The Gold Development Company for the 21st Century 1984 Incorporated in Nova Scotia – Gerald McConnell as CEO leads exploration company initially focused on gold properties in Nova Scotia, later exploration expands throughout the Americas 1998 Rick Van Nieuwenhuys
Slide 29: Long-Term Alaska Native Corporation Partners
DONLIN GOLD: Long-Term Alaska Native Corporation Partners Donlin Gold is being developed on private land that was selected by Calista and TKC at the direction of Y-K Elders in the 1970s • Donlin Gold LLC strongly supports the Alaska Native Claims Settlement Act1 (ANCSA) obligation to manage Calista
Slide 30: 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 31: Expected to Provide Decades of Low-Cost Production
DONLIN GOLD: Expected to Provide Decades of Low-Cost Production Operating costs and sustaining capital costs1,2 First Five Years Life of Mine Operating costs ($millions)1,2 Operating costs ($millions)1,2 Open-pit mining 1,546 Open-pit mining 8,430 Processing 1,334 Processing 6,916 G&A 335 G&A 1,762
Slide 32: NOVAGOLD: Mineral Reserves & Mineral Resources
NOVAGOLD: Mineral Reserves & Mineral Resources Donlin Gold (100% basis)* Tonnage Grade Metal content GOLD kt g/t Au koz Au * Mineral reserves and resources are reported on a Reserves1 100% basis. NOVAGOLD and Barrick each own 50% of the Proven 7,683 2.32 573 Donlin Gold project. Probable 497,128 2.0
Slide 33: NOVAGOLD Resources Inc.
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
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