Novagold Resources Inc. · AMEX:NG
Novagold Resources — Investor Presentation (April 2011)
41 slides from Novagold Resources's investor presentation, April 2011
Slide 1: NovaGold Resources Inc. Corporate Presentation
NovaGold Resources Inc. Turning experience & opportunity into gold Corporate Presentation NYSE‐AMEX, TSX: NG April 2011
Slide 2: Forward-looking Statements
Forward‐looking Statements This presentation includes “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 regarding a
Slide 3: NovaGold Highlights
NovaGold Highlights • Two world‐class assets: Donlin Creek & Galore Creek • Two world‐class partners: Barrick & Teck • Low geopolitical risk, strong community relationships • Significant exploration upside • Great value due to pre‐production discount • Excellent liquidity with average 5.2M shares da
Slide 4: Low Geopolitical Risk
@ © @ | Low Geopolitical Risk Ambler 100% NovaGold Copper-zinc-gold-silver Exploration property Rock Creek 100% NovaGold 4 ye Port of Nome Constructed gold mine On care and maintenance Donlin Creek 50/50 with Barrick Gold 34 Mozs gold reserves Feasibility, pre pentane © Whitehorse Galore Creek 50/50
Slide 5: World-class Projects
World‐class Projects Donlin Creek & Galore Creek are in the top 3% of global gold deposits Global Gold Deposits 1% 2% World‐class Partners • Donlin Creek 50/50 with Barrick 22% • Galore Creek 50/50 with Teck • Senior operating partnerships in place Æ lower operating risk and higher 75% potential val
Slide 6: Providing Superior Leverage to Gold
Providing Superior Leverage to Gold 16.8M ounces Gold Reserves 6.2M ounces Gold M&I 94M ounces Silver M&I 6.0B pounds Copper M&I 4.3M ounces Gold Inferred 51M ounces Silver Inferred 2.7B pounds Copper Inferred • One of the largest resource bases of any junior or mid‐tier gold company • Exploring and
Slide 7: Comparative Gold Resources in the Americas
Comparative Gold Resources in the Americas 50 Intermediate Producers Millions of ozs Gold Resource 40 Junior 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 8: Enterprise Value per Ounce in the Americas
Enterprise Value per Ounce in the Americas Recent $900 Enterprise Value per Oz of Gold Resource Acquisitions $800 Avg $745 EV/oz $700 Intermediate Developers Junior Producers Producers $600 Avg $230 EV/oz Avg $355 EV/oz Avg $390 EV/oz $500 $400 $300 NG $200 $125 EV/oz $100 $0 Source: Intierra, Yahoo
Slide 9: Value of Gold Resource Per Dollar Invested
Value of Gold Resource Per Dollar Invested = Leverage $10 Gold only, not including value from copper and silver resources Value of Gold in US Dollars $8 $6 $4 $2 $0 Source: Intierra, Yahoo Finance, Morgan Stanley and company websites. TSX share price at April 12, 2011. Your dollar value of gold reso
Slide 10: Adding Value Through Resource Growth
Adding Value Through Resource Growth One of the industry’s best track records for resource growth Note: Reflects 50% ownership of Donlin Creek, 50% of Galore Creek, 100% of Ambler and 100% of Nome Operations. Resource estimate updates as of March 2010. Based on gold‐equivalent resources assuming a p
Slide 11: Donlin Creek
Donlin Creek 50/50 Partnership with Barrick Alaskan Native Partner: Calista 33.6M ozs Gold Proven & Probable 1 4.3M ozs Gold Measured & Indicated 1 4.4M ozs Gold Inferred 1 (1) At 100% basis. NovaGold owns 50%. See “Cautionary Note Concerning Reserve and Resource Estimates” 11 and “Reserve & Resourc
Slide 12: Donlin Creek
| Donlin Creek a Ss ae panne reales) a ne > a ~ Acma Déposit . A or s* s nt San
Slide 13: Donlin Creek Reserve Pit
Donlin Creek Reserve Pit P&P: 33.6 Mozs 468 Mt @ 2.2 g/t M&I: 4.2 Mozs 40 Mt @ 3.4 g/t Inf: 4.4 Mozs 58 Mt @ 2.4 g/t Open at depth and strike 13 1313
Slide 14: Donlin Creek Exploration Upside
Donlin Creek Exploration Upside 3km pit within 8km district Numerous exploration targets identified 14 1414
Slide 15: Comparison of Undeveloped Gold Projects in the Americas
Donlin Creek 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 Livengood Angostura
Slide 16: Donlin Creek Proposed Site Layout
Donlin Creek Proposed Site Layout Located entirely on private Alaskan Native land Upper contact designated for mining water pond Waste rock facility Lewis deposit Contact Freshwater water pond reservoir Ore ACMA stockpile deposit Tailings storage facility Compact footprint, large land package for ex
Slide 17: Donlin Creek Natural Gas Pipeline
Donlin Creek Natural Gas Pipeline • Reduction to operating costs • Operating costs currently $394/oz for first 5 years, $467/oz LOM (diesel base case) • Power accounts for 25% of operating costs • Significant operating cost reduction using natural gas vs diesel • Additional cost reduction opportunit
Slide 18: Donlin Creek: One of the World's Largest Undeveloped Gold Deposits
Donlin Creek: One of the World’s Largest Undeveloped Gold Deposits 1 Reserves & Resources 2 33.6 Million ozs P&P 4.3 Million ozs M&I 4.4 Million ozs Inferred Anticipated Mine Life 25 years Production (ozs/year) 2 Years 1‐5: 1.6 Million ozs/year (53,500 tpd throughput) Life of Mine: 1.3 Million ozs/y
Slide 19: Donlin Creek Value Drivers
Donlin Creek Value Drivers • Future reserve and resource expansion potential • Community engagement and consultation for project permitting • Feasibility revision in second half of 2011 • Updated capital and operating costs • Updated reserves/resources and cash flow estimates • File permit applicati
Slide 20: Galore Creek
Galore Creek 50/50 Partnership with Teck First Nation Partner: Tahltan 8.9B lbs Copper 3.5B lbs Copper Measured & Indicated 1 Inferred 1 7.3M ozs Gold 3.3M ozs Gold Measured & Indicated 1 Inferred 1 123M ozs Silver 61M ozs Silver Measured & Indicated 1 Inferred 1 (1) At 100% basis, of which NovaGold
Slide 21: Comparison of Undeveloped Copper-Gold Projects in the Americas
Galore Creek Comparison of Undeveloped Copper‐Gold Projects in the Americas 20 20 Billions of lbs of Copper Resource 55 Mlbs Cu M&I 45 Mozs Au M&I Gold M&I Resource Millions of ozs of Gold Resource 26 Mlbs Cu Inf 14 Mozs Au Inf Gold Inferred Resource Copper M&I Resource Galore Creek: Copper Inferred
Slide 22: Galore Creek Optimized Development Plan
Galore Creek Optimized Development Plan Km 40 Based on preliminary studies for the Galore Creek pre‐feasibility study. This diagram is for illustrative purposes only and does not accurately represent the location of the access road, tunnel alignment and facilities layout. 22 2222
Slide 23: Galore Creek Value Drivers
Galore Creek Value Drivers • Pre‐feasibility in Q2‐2011 • Copper, silver and additional gold reserves to NovaGold • Higher throughput, higher metal prices • Production and cash flow estimates • Capital and operating cost estimates • Permitting, construction and production timelines • Advance info fe
Slide 24: Project Financing
Project Financing • Approximately $129 million in cash and cash equivalents 1 • Existing obligations covered for next couple of years • Supportive shareholders with access to capital • Galore Creek and Donlin Creek are large, long‐lived projects with strong production and cash flow potential • How t
Slide 25: 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 0.4M ozs Gold 0.3M ozs Gold Measured & Indicated 1 Inferred 1 32M ozs Silver 19M ozs Silver Measured & Indicated 1 In
Slide 26: Ambler Preliminary Economic Assessment
Ambler Preliminary Economic Assessment • High‐grade base metals property in a big district 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 • Base case1: Pre‐tax NPV8% of $718 mill
Slide 27: Ambler Preliminary Economic Assessment
Ambler Preliminary Economic Assessment • Underground mining operation • 25‐year mine life • Up to 4,000 tpd throughput • Three concentrates • Copper with gold byproduct (86.8% copper) • Lead with silver and gold byproducts (68.1% lead) • Zinc with silver byproduct (81.1% zinc) • Average annual payab
Slide 28: 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 29: Ambler District Geology
Ambler District Geology Sunshine Shugnak Arctic BT 29 29
Slide 30: NovaGold Value Drivers
NovaGold Value Drivers • Galore Creek pre‐feasibility study, Q2‐2011 • Copper, silver and additional gold reserves • Capital costs, production estimates, construction timeline • Advance to feasibility and permitting 1 • Donlin Creek feasibility revision, second half of 2011 • Updated capital costs •
Slide 31: Share Capitalization
Share Capitalization Issued and Options Warrants Fully diluted 1 outstanding outstanding 233.4M 11.7M 42.2M 287.4M • Major shareholders include 2: • Electrum Strategic Resources – 22.3% • Paulson & Company – 8.7% • Soros Fund Management – 5.5% • Aletheia Research & Management – 5.2% • Tradewinds Glo
Slide 32: Why NovaGold?
Why NovaGold? Superior Value Superior Leverage • Large, high‐quality projects • Safe geopolitical locations • Senior operating partners • Strong community relationships • Experienced management team • Well financed • Continued resource growth • Exposure to gold, silver and copper • NovaGold = Superi
Slide 33: Appendix
Appendix
Slide 34: Sustainability Commitments
Sustainability Commitments • NovaGold has published its first sustainability report and is establishing a process for data collection and more robust reporting metrics • NovaGold supports the UN Global Compact • NovaGold supports the International Council on Mining & Metals Sustainability Principles
Slide 35: Management Team
Management Team • Rick Van Nieuwenhuyse – President & CEO • Gil Leathley – Senior VP & COO • Elaine Sanders – VP & CFO • Kevin Francis – VP Technical Services • Sacha Iley – VP Human Resources • Greg Martin – VP Business Development & Treasurer • Joe Piekenbrock – VP Exploration • Ron Rimelman – VP
Slide 36: Board of Directors
Board of Directors • Gerald McConnell, QC – Chairman • Marc Faber • Tony Giardini, CA • Igor Levental • Kalidas Madhavpeddi • Clynton Nauman • James Philip, CA • Rick Van Nieuwenhuyse 36
Slide 37: Reserve & Resource Base
Reserve & Resource Base NovaGold Resources Inc. Proven and Probable Reserves, Measured, Indicated and Inferred Resources for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at April 14, 2011 Reserves Property Reserve Tonnes In Situ Grade Total Contained Metal NovaGold Share Net After
Slide 38: Reserve & Resource Base – Footnotes
Reserve & Resource Base – Footnotes Notes 1. These reserve and resource estimates have been prepared in accordance with NI 43‐101 and the CIM Definition Standards. See “Cautionary Note Concerning Reserve & Resource Estimates”. 2. See numbered footnotes below on reserve and resource information. Rese
Slide 39: 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 40: Analyst Coverage
Analyst Coverage Beacon Rock Research McNicoll, Lewis, Vlak Mike Niehuser Imaru Casanova 503‐307‐3188 212‐542‐5869 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 40
Slide 41: 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 Rhylin Bailie Director, Communications & Investor Relations rhylin.bailie@novagold.net 41
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