Novagold Resources Inc. · AMEX:NG
Novagold Resources — Investor Presentation (November 2010)
38 slides from Novagold Resources's investor presentation, November 2010
Slide 1: NovaGold Resources Inc. Corporate Presentation
NovaGold Resources Inc. Turning experience & opportunity into gold Corporate Presentation NYSE‐AMEX, TSX: NG November 2010
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 equal world‐class partners: Barrick & Teck • Low geopolitical risk • Significant exploration upside • Great value due to pre‐production discount • Superior leverage to strong gold market 3 3
Slide 4: Low Geopolitical Risk
@ © @ | Low Geopolitical Risk Ambler 100% NovaGold Copper-zinc-gold-silver Exploration property Rock Creek 100% NovaGold @ Port of Nome Constructed gold mine On care and maintenance © Fairbanks Donlin Creek Port of Bethel 50/50 with Barrick Gold 34 Mozs gold reserves Feasibility, pre-permitting me A
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 Gold 22% • Galore Creek 50/50 with Teck Resources • Senior operating partnerships in place 75% Æ lower operating risk and highe
Slide 6: Providing Superior Leverage to Gold
Providing Superior Leverage to Gold 17.3M ounces Gold Reserves 8.2M ounces Gold M&I 94M ounces Silver M&I 6.0B pounds Copper M&I 4.5M 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 Mid‐Tier 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 “Reserve
Slide 8: Enterprise Value per Ounce in the Americas
Enterprise Value per Ounce in the Americas Mid‐tier Producers Avg $405 EV/oz 500 400 Developers Junior Producers Avg $170 EV/oz Avg $305 EV/oz 300 200 NG $105 EV/oz 100 0 Source: Intierra and company websites. Share price on TSX at November 3, 2010. Note: Reflects 50% ownership of Donlin Creek, 50%
Slide 9: Value of Gold Resource Per Dollar Invested
Value of Gold Resource Per Dollar Invested = Leverage $12 Gold only, not including value from Value of Gold in US Dollars $10 copper and silver resources $8 $6 $4 $2 $0 Source: Intierra resource numbers and TSX share price at November 3, 2010. Calculated using $1200/oz gold. Your dollar value of gol
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 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 & Resource Table” with footnotes. 11
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 40 Donlin Creek: 2.2 g/t gold, open pit Millions of ozs of Gold Resources 35 30 Inferred Resources Measured & Indicated Resources 1 25 20 15 10 5 0 Mine Donlin Detour Metates Angostura Livengood Canadian Aurora Haile Creek 2 Malart
Slide 16: Donlin Creek Access & Facilities
Donlin Creek Access & Facilities Proposed Infrastructure for the Donlin Creek Mine 16 Based on April 2009 technical report available at www.novagold.net. 16
Slide 17: Donlin Creek Proposed Site Layout
Donlin Creek Proposed Site Layout Compact footprint, large land package for expansion Located entirely on private Alaskan Native land designated for mining 17Based on April 2009 technical report available at www.novagold.net. 1717
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 Natural Gas Pipeline
Donlin Creek Natural Gas Pipeline • Reduction to operating costs • Operating costs currently $394/oz for first 5 years, $467/oz LOM • Power accounts for 25% of operating costs • Significant cost reduction using natural gas vs diesel • Additional cost reduction opportunities • Reduced environmental f
Slide 20: Donlin Creek Value Drivers
Donlin Creek Value Drivers • Future resource expansion potential • Community engagement and consultation for project permitting • Finalize natural gas pipeline studies • Feasibility revision by mid‐2011 • Updated capital and operating costs • Expect to file permit applications by end of 2011 → Advan
Slide 21: Galore Creek
Galore Creek 50/50 Partnership with Teck 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 owns 50%. Includes 60% of Cop
Slide 22: 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 39 Mozs Au M&I Gold M&I Resource Millions of ozs of Gold Resource 26 Mlbs Cu Inf 11 Mozs Au Inf Gold Inferred Resource Copper M&I Resource Galore Creek: Copper Inferred
Slide 23: Galore Creek Optimized Development Plan
Galore Creek Optimized Development Plan Km 40 23 2323
Slide 24: Galore Creek Value Drivers
Galore Creek Value Drivers 9 Project redesigned and re‐engineered • Teck funding 100% of expenditures, $18M remaining to complete buy‐in 1 • Pre‐feasibility completed by mid‐2011 • Higher throughput, higher metal prices • Capital and operating cost estimates • Permitting, construction and production
Slide 25: Project Financing
Project Financing • Approx $173 million in cash and cash equivalents 1 Æ financed 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 to finance • Maximize value
Slide 26: Share Capitalization
Share Capitalization Issued and Options Warrants Fully diluted 1 outstanding outstanding 225.5M 12.0M 49.3M 286.8M • Major shareholders include: • Electrum Strategic Resources – 23.0% • Paulson & Company – 9.0% • Tradewinds Global Investors – 6.7% • Soros Fund Management – 5.7% • Aletheia Research &
Slide 27: Ambler
Ambler NovaGold owns 100% 1.5B lbs Copper 937M 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 Inferred 1 27(1) See “Cautionar
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
Ambler • Multiple promising targets on property • Arctic deposit most advanced • 30Mt very high‐grade VMS deposit: 4% copper, 6% zinc 0.8 g/t gold, 60 g/t silver 1 • 8% Cu equivalent • Project objectives • Continued community engagement • Exploration • Environmental baseline studies • Engineering an
Slide 30: Ambler District Geology
Ambler District Geology Smucker Sunshine Shugnak Arctic BT Sun 30 3030
Slide 31: Value Drivers
Value Drivers • Galore Creek pre‐feasibility study, mid‐2011 • Gold, copper and silver reserves • Capital costs, production estimates, construction timeline • Advance to feasibility and permitting • Donlin Creek feasibility revision, mid‐2011 • Updated capital costs • Updated operating costs • Updat
Slide 32: Why NovaGold?
Why NovaGold? Superior Value Superior Leverage • Large, high‐quality projects • Safe geopolitical locations • Senior operating partners • Experienced management team • Well financed • Strong sustainability commitments • Continued resource growth • Exposure to gold, silver and copper • NovaGold = Sup
Slide 33: 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 34: Management Team
Management Team • Rick Van Nieuwenhuyse – President & CEO • Elaine Sanders – VP Finance, Interim CFO • Gil Leathley – Senior Advisor to the President • Kevin Francis – VP Technical Services • Sacha Iley – VP Human Resources • Joe Piekenbrock – VP Exploration • Rhylin Bailie – Director Investor Relat
Slide 35: 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 35
Slide 36: 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 June 1, 2010 Reserves Property Reserve Tonnes In Situ Grade Total Contained Metal NovaGold Share Net After E
Slide 37: 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 38: 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
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