Novagold Resources Inc. · AMEX:NG
Novagold Resources — Investor Presentation (March 2018)
37 slides from Novagold Resources's investor presentation, March 2018
Slide 1: The Gold Development Company of Choice
TSX, NYSE American: NG | novagold.com | March 2018 THE GOLD DEVELOPMENT COMPANY OF CHOICE
Slide 2: Cautionary Statements Regarding Forward-Looking 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: What Makes NOVAGOLD Unique?
WHAT MAKES NOVAGOLD UNIQUE? A DEVELOPMENT-STAGE COMPANY WITH TWO PROJECTS OF EXCEPTIONAL SCALE, QUALITY, AND JURISDICTIONAL SAFETY DONLIN GOLD 50/50 with Barrick Poised to be one of the largest gold producers in the world GALORE CREEK 50/50 with Teck Potential to be one of the largest and lowest cos
Slide 4: Donlin Gold: The Right Project
DONLIN GOLD: THE RIGHT PROJECT ARGUABLY THE MOST IMPORTANT DEVELOPMENT-STAGE GOLD PROJECT IN THE WORLD LONGEVITY 27-year mine life; strong leverage to gold price JURISDICTION Located in Alaska, one of the truly safe mining jurisdictions PARTNERSHIPS Strong partnerships with local stakeholders GROWTH
Slide 5: Development Projects the Size of Donlin Gold Are Scarce
DEVELOPMENT PROJECTS THE SIZE OF DONLIN GOLD ARE SCARCE A RESOURCE FOUR TIMES THE SIZE OF THE PEER GROUP AVERAGE 60 49.8 50 0.53 39 10 40 g/t 39.0 M&I Gold Resource (millions of ounces) Moz1 Moz 2.24 g/t 30 Donlin Gold1 Peer Group Average2 20 18.8 0.52 g/t 11.5 9.5 10 8.0 8.0 0.68 g/t 6.7 6.5 0.74 5
Slide 6: Quality Grade Double the Average Gold Deposit in the World
DONLIN GOLD: QUALITY GRADE DOUBLE THE AVERAGE GOLD DEPOSIT IN THE WORLD AMONG THE WORLD’S HIGHEST-GRADE OPEN PIT GOLD DEPOSITS Donlin Gold Average Grade1 World Average Grade2 2.24 g/t 1.13 g/t While industry average grades are declining, Donlin Gold’s grade provides resilience through commodity pric
Slide 7: Expected to Be One of the Industry's Top Producing Assets
DONLIN GOLD: EXPECTED TO BE ONE OF THE INDUSTRY’S TOP PRODUCING ASSETS POISED TO BECOME A MILLION OUNCE GOLD PRODUCER 1.60 1.40 1.501 1.20 Donlin Gold’s size, grade, and projected 1.1 Moz2 0.3 Moz Projected Annual Gold Production (millions of ounces) production profile Donlin Gold’s North and South
Slide 8: Large Gold Deposits Are Critical for Sustainability of Gold Industry
LARGE GOLD DEPOSITS ARE CRITICAL FOR THE SUSTAINABILITY OF THE GOLD INDUSTRY SUPPLY & DEMAND FORCES AT WORK BODE WELL FOR GOLD’S UPWARD TRAJECTORY SUPPLY DEMAND • New discoveries are increasingly rare • Time from discovery to production can be 20+ years due to lengthy permitting timelines • Remote m
Slide 9: Donlin Gold: Excellent Exploration Potential
DONLIN GOLD: EXCELLENT EXPLORATION POTENTIAL MULTIPLE DRILL PROSPECTS EXIST ALONG THE 8 KM GOLD MINERALIZED TREND The next big gold discovery may be at Donlin Gold: o Donlin Gold’s resource was defined with nearly 1,400 drill holes, totaling over 339,000 meters o From 2006 to 2011, M&I resources inc
Slide 10: Donlin Gold: 2017 Drill Program Highlights
DONLIN GOLD: 2017 DRILL PROGRAM HIGHLIGHTS EXCELLENT RESULTS - MINERALIZED INTERCEPTS ENCOUNTERED HIGHER GRADES THAN PREDICTED BY PREVIOUS MODELING o A total of 16 core holes were completed (7,040 m) and core samples assayed o Intercepted distinct significant high-grade zones in multiple areas o Int
Slide 11: Donlin Gold: Project Optimization Efforts
DONLIN GOLD: PROJECT OPTIMIZATION EFFORTS LAYING THE GROUNDWORK FOR 2018 AND BEYOND o Barrick and NOVAGOLD are focused on further improving project economics, reducing the owners’ initial capital expenditures and enhancing the project’s execution plan. The next steps include: • Integrating the resul
Slide 12: Private Land Designated for Mining
DONLIN GOLD: PRIVATE LAND DESIGNATED FOR MINING DEPOSIT LOCATION AND TOPOGRAPHY AMENABLE TO SITE DEVELOPMENT Lewis Deposit Acma Deposit 12
Slide 13: Barrick CEO quote on drill results
“We are very encouraged by the latest drill results at Donlin Gold, some of which encompassed areas where relatively little drilling had been previously done. The results are further evidence of the significant potential of this deposit. We look forward to continuing to collaborate closely with our
Slide 14: Significant Value Upside with Higher Gold Prices
DONLIN GOLD: SIGNIFICANT VALUE UPSIDE WITH HIGHER GOLD PRICES NPV5 INCREASES ~20X WITH ~2X INCREASE IN GOLD PRICE Net Present Value (NPV) (US$ in Billions) NPV at 0% NPV at 5% $27.0B $2,500 $19.2B • Project has a positive return that increases $2,000 substantially with higher gold prices $14.6B • Go
Slide 15: Life of Mine Agreements with Alaska Native Corporations
DONLIN GOLD: LIFE OF MINE AGREEMENTS WITH ALASKA NATIVE CORPORATIONS TIME-HONORED RELATIONSHIPS WITH STAKEHOLDERS o Donlin Gold is located on private land specifically selected for its resource development potential • ANCSA1 established 40 years ago; resolved Alaska Native land claims • Lands valuab
Slide 16: Community support quotes
Maver Carey President & CEO, The Kuskokwim Corporation “As a mine that focuses on environmental responsibility, meaningful dialogue with communities, job opportunities, and economic stimulus for one of the poorest regions in the entire state, Donlin Gold has TKC’s full support.” “Ultimately, economi
Slide 17: Leverage in a Place Where You Can Keep the Rewards
DONLIN GOLD: LEVERAGE IN A PLACE WHERE YOU CAN KEEP THE REWARDS AT A TIME OF EXTREME GEOPOLITICAL UNCERTAINTY, ALASKA IS WELCOMING NEW RESPONSIBLE DEVELOPMENT DONLIN GOLD is a very rare >30 million ounce deposit located in Alaska – a safe jurisdiction and the second largest gold producing U.S. state
Slide 18: Project Permitting Is on Track
DONLIN GOLD: PROJECT PERMITTING IS ON TRACK THE CORPS EXPECTS TO PUBLISH THE FINAL ENVIRONMENTAL IMPACT STATEMENT IN EARLY 2018 DEVELOPMENT TIMELINE: 16 years ̴6 4-6 27+ years 1.5 ENVIRONMENTAL STUDIES Moz/year first five full years1 EXPLORATION & ENGINEERING & CONSTRUCTION PERMITTING OPERATION 1.1
Slide 19: A Thorough, Transparent, and Established Environmental Review Process
DONLIN GOLD: A THOROUGH, TRANSPARENT, AND ESTABLISHED ENVIRONMENTAL REVIEW PROCESS SUPPORTING THE CORPS IN COMPLETING THE FINAL STEPS IN EIS PROCESS WHILE WORKING WITH ALASKA TO SECURE STATE PERMITS National Environmental Policy Act (NEPA) review nearing completion – supports agency decision- making
Slide 20: Donlin Gold: Upcoming Catalysts
DONLIN GOLD: UPCOMING CATALYSTS NEXT STEPS IN DONLIN GOLD’S DEVELOPMENT Integrate drill program results into resource model Determine best path forward based on updated study & prevailing market conditions Solidify execution plan Constructi on technical construction decision financing permitting opt
Slide 21: Galore Creek: A Significant Copper-Gold-Silver Asset
GALORE CREEK: A SIGNIFICANT COPPER-GOLD-SILVER ASSET MEASURED & INDICATED RESOURCES1 COPPER 9 Blbs1 Grade: 0.50% Potential to be one of the largest, highest-quality, GOLD 8 Moz1 Grade: 0.31g/t lowest-cost copper producers in Canada. SILVER 136 Moz1 Grade: 5.21g/t 1) Galore Creek project estimates as
Slide 22: Galore Creek: Significant Upside Potential with Higher Copper Prices
GALORE CREEK: SIGNIFICANT UPSIDE POTENTIAL WITH HIGHER COPPER PRICES PROJECT HAS POSITIVE RETURNS THAT INCREASE SIGNIFICANTLY WITH RISING COPPER PRICES Net Present Value (NPV) (US$ in Billions) NPV at 5% NPV at 7% $3.5B $4.00 $3.1B $3.75 $2.6B $3.50 A significant copper-gold-silver asset in Canada:
Slide 23: Clear Focus and Strong Funding to Execute on All Fronts
CLEAR FOCUS AND STRONG FUNDING TO EXECUTE ON ALL FRONTS SUFFICIENT CASH ON HAND TO PROGRESS DONLIN GOLD THROUGH PERMITTING ($ MILLIONS) 2018 Budget $ 14M Donlin Gold ($9M permitting, $5M optimization work) 28.0M $ 3M Galore Creek $ 11M G&A, working capital and other 24.7M Yearly Average Annual Spend
Slide 24: Top Institutional Shareholders
TOP INSTITUTIONAL SHAREHOLDERS 52% OF SHARES ISSUED & OUTSTANDING HELD BY SIX LARGEST SHAREHOLDERS2 Electrum Strategic 26.3% Resources LP & affiliates Fidelity Management & 7.5% Research Company 6.8% Paulson & Co. Inc. $ 1.3 Market Cap1 B 5.4% Van Eck Associates Corporation 3.3% The Baupost Group, L
Slide 25: The NOVAGOLD Opportunity
THE NOVAGOLD OPPORTUNITY SAFE GEO-POLITICAL STRONG BALANCE SHEET ENVIRONMENT $84M cash + term deposits Alaska and British Columbia, as of November 30, 2017 top-rated mining jurisdictions TOP TIER ASSETS ACCOMPLISHED Donlin Gold – large, high-grade deposit well LEADERSHIP TEAM advanced in permitting;
Slide 26: Appendix
APPENDIX
Slide 27: Donlin Gold: Project Highlights
DONLIN GOLD: PROJECT HIGHLIGHTS POISED TO BE ONE OF THE LARGEST GOLD PRODUCERS IN THE WORLD Reserves: 33.9 Moz Au (505M tonnes grading 2.09 g/t)1 Resources: 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)1 Mine Life: ~27 years Pr
Slide 28: Galore Creek: Project Highlights
GALORE CREEK: PROJECT HIGHLIGHTS POTENTIAL TO BE ONE OF CANADA'S LARGEST COPPER MINES Reserves: 6.8 Blb Cu; 5.5 Moz Au; 102 Moz Ag (528M tonnes grading 0.59% Cu, 0.32 g/t Au, 6.02 g/t Ag)1 Resources: 8.9 Blb Cu; 8.0 Moz Au; 136 Moz Ag (815M tonnes grading 0.50% Cu, 0.31 g/t Au, 5.21 g/t Ag, inclusiv
Slide 29: Donlin Gold: Other Permit Applications
DONLIN GOLD: OTHER PERMIT APPLICATIONS NEARLY 100 PERMITS ARE REQUIRED Major federal permits or reviews o CWA Section 404/RHA Section 10 (USACE) o Rights of Way (BLM) o Pipeline Special Permit (PHMSA) – Public Notice Complete o PSD Air Quality Permit Review (EPA) – Completed, Permit Issued o EFH Con
Slide 30: Alaska's Mining Industry
ALASKA’S MINING INDUSTRY MINING IS A GROWING FORCE IN ALASKA’S ECONOMY WITH SIX PRODUCING MINES AND NINE ADVANCED EXPLORATION PROJECTS Producing Mines: Fort Knox Kinross Gold Corp Red Dog Teck Resources Limited Greens Creek Hecla Mining Company Kensington Coeur Mining Inc Pogo Sumitomo Metal Mining
Slide 31: Expected to Provide Three Decades of Low Cost Production
DONLIN GOLD: EXPECTED TO PROVIDE THREE DECADES OF LOW COST PRODUCTION LOW OPERATING CASH COSTS AND ALL-IN SUSTAINING COSTS FIRST FIVE YEARS LIFE OF MINE Cash Costs1 Per Ounce Cash Costs1 Per Ounce Open-pit mining2 133 Open-pit mining2 270 Processing 208 Processing 257 G&A, royalties, land & other3 7
Slide 32: NOVAGOLD: Company History Highlights
NOVAGOLD: COMPANY HISTORY HIGHLIGHTS THE GOLD DEVELOPMENT COMPANY FOR THE 21ST CENTURY o 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 o 1998 Rick Van Nieuwen
Slide 33: NOVAGOLD: The Board of Directors
NOVAGOLD: THE BOARD OF DIRECTORS INDUSTRY LEADERS TO BRING DONLIN GOLD THROUGH PERMITTING & BEYOND Dr. Thomas Kaplan • Chairman and CEO of The Electrum Group LLC, a privately held natural resources investment management Chairman company that controls a diversified portfolio of precious and base meta
Slide 34: 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, President and CEO Cortez, Turquoise Ridge, Bald
Slide 35: NOVAGOLD: Reserve/Resource Table
NOVAGOLD: RESERVE/RESOURCE TABLE Donlin Gold* Tonnage (100%) Grade (100%) Metal (100%) NOVAGOLD Share (50% ) GOLD Mt g/t Au koz Au koz Au Reserves1 Proven 7.7 2.32 573 286 Probable 497.1 2.08 33,276 16,638 P&P 504.8 2.09 33,849 16,924 Resources3, inclusive of Reserves Measured 7.7 2.52 626 313 Indic
Slide 36: NOVAGOLD: Reserve/Resource Table (Con't)
NOVAGOLD: RESERVE/RESOURCE TABLE (CON’T) Notes: a. These reserve and resource estimates have been prepared in accordance with NI 43-101 and the CIM Definition Standard, unless otherwise noted. b. See numbered footnotes below on resource information. c. Rounding and significant figures may result in
Slide 37: Contact Us
CONTACT US NOVAGOLD RESOURCES INC. Suite 720 – 789 West Pender Street Vancouver, BC Canada V6C 1H2 T 604 669 6227 TF 1 866 669 6227 F 604 669 6272 www.novagold.com info@novagold.com Mélanie Hennessey Erin O’Toole VP, Corporate Communications Senior Stakeholder Relations Specialist melanie.hennessey@
NOVAGOLD Resources — Investor Presentation (March 2018) on 6ix