Novagold Resources Inc. · AMEX:NG
Novagold Resources — Investor Presentation (September 2022)
33 slides from Novagold Resources's investor presentation, Sep 13, 2022
Slide 1: 2022 September Corporate Presentation
2022 September Corporate Presentation TSX, NYSE American: NG | novagold.com
Slide 2: Cautionary statements
Cautionary statements REGARDING FORWARD-LOOKING STATEMENTS Forward-looking statements are based on a number of material assumptions, including but not limited to the following, which This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forw
Slide 3: Excellent initial 2022 drill program results
DONLIN GOLD Excellent initial 2022 drill program results More High-grade Gold Intercepts Coupled with Important Grade Continuity Top five intervals based on drilled grade-thickness1 Drilled Date Grade Hole ID From To Thickness Reported (g/t Au) (m) DC22-2040 7/28/2022 232.95 285.22 52.27 14.63 DC22-
Slide 4: Strong partnership alignment
DONLIN GOLD Strong partnership alignment 50:50 joint venture partnership “Our orebody knowledge of Donlin in Alaska continues to grow. The 2021 drill campaign finished strongly with high-grade intercepts and some of the best drill results for an open pit gold project industry wide. We began 2022 und
Slide 5: 2022 drill program
DONLIN GOLD 2022 drill program ACMA and Lewis deposits open at depth Longitudinal section view of the ACMA and Lewis deposits • Significant exploration potential remains near the ACMA and Lewis deposits and the balance of the Donlin Gold land position 5 NOVAGOLD | September 2022 Corporate Presentati
Slide 6: The next big gold discovery could be at Donlin Gold
DONLIN GOLD The next big gold discovery could be at Donlin Gold Significant potential to expand current resource along strike ▪ From 2006 to 2011, M&I Far Side resources increased 135% (16.6Moz1 to 39.0Moz2) Queen ▪ Gold resource defined with Snow Quartz Ophir approximately 1,400 drillholes Dome tot
Slide 7: 2022 drill program: largest budget in more than a decade
DONLIN GOLD 2022 drill program: largest budget in more than a decade 2022 drill program $34M (approx. 42,380m of core drilling) • Grid drilling (mineralization continuity and geologic structural controls in three areas of the deposit) • In-pit and below pit exploration • Waste Rock Facility condemna
Slide 8: Decades of government and stakeholder engagement
DONLIN GOLD Decades of government and stakeholder engagement Working together since 2001 to take the Donlin Gold project up the value chain ▪ The Donlin Gold project lands are owned by the Alaska Native Corporations (Calista Corporation and The Kuskokwim Corporation - TKC) and were selected specific
Slide 9: Permitting update
DONLIN GOLD Permitting update Key federal permits for the project received and state permitting is well-advanced Q2 progress update: Federal permitting completed State permitting completed ▪ Alaska Department of Environmental Conservation (ADEC) Division of Water upheld the 401 Certification of the
Slide 10: Maintaining a strong treasury
NOVAGOLD Maintaining a strong treasury Largest planned spending for Donlin Gold in over a decade Due from Newmont $142M cash and term deposit balance on May 31, 2022 in July 20231 $142M $25M Treasury $0 $50 $100 $150 $200 US$ (millions) 2022 Budget: Donlin Gold project expenditures $30M Corporate G&
Slide 11: Sustainability performance
NOVAGOLD Sustainability performance 11 NOVAGOLD | September 2022 Corporate Presentation
Slide 12: Community
Community Mutually beneficial community investments to achieve broader goals 2022 Donlin Gold “In It for the Long Haul” backhaul project ▪ Fifth annual backhaul project collecting, removing, and safely disposing household hazardous and electronic waste from remote villages throughout the Y-K region
Slide 13: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than contained in measured double the world average Only 5% of 489 sq km land and indicated mi
Slide 14: What does it mean to be unique?
What does it mean to be unique? When we speak about Donlin, we often ask this simple question of our audience: “What other development-stage asset in the industry compares in its combination of enormous size, high grade for an open-pit (and hence low all-in cash costs), truly superb exploration upsi
Slide 15: 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 40.0 39.0Moz Donlin Gold2 M&I gold resource (millions of ounces) 30.0 20.0 10.9 11.3 11.5 11.7 10.0 8.0 8.1 8.2 10.0 6.3 7.7Moz Peer group average1 3.9 4.2 4.6 5.0 3.
Slide 16: Positioned to become a million-ounce gold producer
DONLIN GOLD Positioned to become a million-ounce gold producer1 Anticipated to be one of the highest gold producers in the industry Donlin Gold’s 1.20 1.101 27-year mine life Projected annual gold production (millions of ounces) 1.00 1.1 Moz/yr1 0.80 0.60 0.50 0.39 0.40 0.36 0.37 0.30 0.32 0.28 0.29
Slide 17: 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 g/t While global average gold grades are declining, Donlin 1.12 Gold’s grade g/t provides resilience through commodity price cycles Global average grade1 Donlin Gold average grade2 See
Slide 18: Great leverage in a place where you can keep the fruits of your leverage
DONLIN GOLD Great leverage in a place where you can keep the fruits of your leverage Comparing the top three gold producing operations2 and five largest gold development projects3 Donlin Gold Muruntau Livengood Olimpiada Projects/ M&I* Grade (g/t) Operations Sukhoi Log Gold development projects: Don
Slide 19: Alaska Native Corporation partnerships elevate the project
DONLIN GOLD Alaska Native Corporation partnerships elevate the project Donlin Gold has life-of-mine agreements with Alaska Native Corporations Calista and TKC Land valuable for resource potential was selected by regional Alaska Native Corporations, and resource development companies were invited by
Slide 20: Promises kept, excellent partnerships
NOVAGOLD Promises kept, excellent partnerships Track record of converting company goals into shareholder value Successful strategic repositioning as a Aligned on project strategy and timeline with Steady advancement of Donlin Gold up the value chain pure gold play Barrick Gold ▪ 2012: Spin-out of 10
Slide 21: Significant value upside with higher gold prices
DONLIN GOLD Significant value upside with higher gold prices $35.0 31.6B $30.0 ▪ Project return increases Net Present Value (NPV) (US$ in Billions) substantially with higher gold prices1 $25.0 22.5B ▪ Good payback at a broad range of gold $20.0 17.5B prices ▪ Long mine life offers $15.0 13.1B high l
Slide 22: Strong institutional shareholder and management support
NOVAGOLD Strong institutional shareholder and management support The 10 largest shareholders represent 65.8% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million shares2 since joining the company 35.2% 65.8% all other top 10 shareholders shareholders 1.4 25.4
Slide 23: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than contained in measured double the world average Only 5% of 489 sq km land and indicated mi
Slide 24: Appendix
Appendix 24 NOVAGOLD | September 2022 Corporate Presentation
Slide 25: Mineral reserves
Mineral reserves Attributable to Donlin Gold Tonnage Grade Metal Content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Reserves1 and on a 50% basis. Proven 7,683 2.32 573 287 NOVAGOLD and Barrick each own 50% of the Probable 497,128 2.08 3
Slide 26: Mineral resources
Mineral resources Attributable to Donlin Gold Tonnage Grade Metal content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Resources2, exclusive of Reserves and on a 50% basis. NOVAGOLD and Barrick Measured 869 2.23 62 31 each own 50% of the
Slide 27: Donlin Gold
Donlin Gold S-K 1300 Technical Report – Donlin Gold Project, Alaska, USA dated November 30, 2021 (100% basis) Key Financial Economic & Production Data LOM Operating Costs Initial capital costs $7.4B Area $/t Processed $/t Mined $/oz Au Sustaining capital costs over LOM (27 years) $1.7B Mine operatio
Slide 28: Management
Management ▪ Former President of Barrick Gold North America Gregory Lang ▪ 40+ years experience building & operating major open-pit and underground mines (Goldstrike, Cortez, President and CEO Turquoise Ridge, Bald Mountain) ▪ Diverse experience in mine operations, project development and evaluation
Slide 29: Board of directors
Board of directors Dr. Thomas ▪ Chairman and CEO of The Electrum Group LLC, a privately ▪ Chairman of Glencore plc, and director of Trilogy Metals and held natural resources investment management company Kalidas Dundee Precious Metals Inc. Kaplan that controls a diversified portfolio of precious and
Slide 30: Endnotes
Endnotes 1. Forecast includes $30 million to Donlin Gold, $13 million to NOVAGOLD G&A and $3 million for withholding taxes on PSUs and other working capital. This presentation may also contain future- SLIDE 3 – Excellent initial 2022 drill program results oriented financial information (“FOFI”) and
Slide 31: Endnotes
Endnotes SLIDE 15 - Largest gold development project in its category SLIDE 20 - Promises kept, excellent partnerships 1. Peer group data based on company documents, public filings and websites as of February 2022. 1. As per the media release titled “NovaGold Shareholders Overwhelmingly Approve the N
Slide 32: Endnotes
Endnotes SLIDES 24 & 25 - Mineral reserves and Mineral resources Reserve and Mineral Resource estimates shown above remain unchanged from the 2011 estimates contained in the prior technical report. See “Cautionary Note Concerning Reserve & Resource 1. Mineral Reserves are reported within the pre-fea
Slide 33: TSX, NYSE American: NG | novagold.com
TSX, NYSE American: NG | novagold.com NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C 3A6 melanie.hennessey@novagold.com T: 604 669 6227 TF: 1 866 669 6227 F: 604 669 6272 E: info@novagold.com 33 NOVAGOLD | September 2022
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