Novagold Resources Inc. · AMEX:NG
Novagold Resources — Investor Presentation (November 2020)
32 slides from Novagold Resources's investor presentation, Nov 12, 2020
Slide 1: NOVAGOLD Corporate Presentation
NOVAGOLD Corporate Presentation TSX, NYSE American: NG | novagold.com | November 12, 2020
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: 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: 39,007,000 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: 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: Largest Gold Development Project in its Category
DONLIN GOLD: Largest Gold Development Project in its Category1 A resource more than four times the size of the peer group average 50.0 2 8.5 40.0 39.0 Donlin Gold2 Moz 39.0 M&I Gold Resource (millions of ounces) 30.0 Moz peer group average1 20.0 18.8 11.7 11.5 11.4 10.2 10.0 8.2 8.0 6.5 5.6 5.3 5.0
Slide 6: Double the Industry Average Grade
DONLIN GOLD: Double the Industry Average Grade1 Among the world’s highest-grade known open-pit gold deposits 2.24 1.05 g/t g/t Donlin Gold average grade2 World average grade1 While industry average grades are declining, Donlin Gold’s grade provides resilience through commodity price cycles 1) 2019 a
Slide 7: 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 1.60 Moz/yr1 1.40 0.3 1.502 Projected Annual Gold Production (millions of ounces) 1.20 Moz/yr3 1.00 0.80 Donlin Gold’s 27-year mine life North and South American gold- focused
Slide 8: One of the Few Large Gold Projects in a Safe Jurisdiction
DONLIN GOLD: One of the Few Large Gold Projects in a Safe Jurisdiction Top 10 gold producing operations comparison1 just three operations produced >1Moz in 2019 globally 39.0Moz 2 Donlin Gold 29.8Moz Olimpiada 29.3Moz 14.4Moz Kazzinc Carlin 48.2Moz 44.2Moz Lihir Island 21.1Moz Muruntau Cortez 25.0Mo
Slide 9: 2020 Drill Program Update
DONLIN GOLD: 2020 Drill Program Update Encouraging initial results 1 – further advancing the unique value proposition • Validating recent geologic and resource modeling concepts and testing for extensions of high-grade zones in both intrusive (igneous) and sedimentary rocks • Assay results show high
Slide 10: 2020 Drill Program Update Continued
DONLIN GOLD: 2020 Drill Program Update Continued Initial drill assays exceed modeled expectations with significant distinct high-grade intervals intercepted in multiple areas, including intervals near surface Ten of the Top Assay Intervals1 Hole From (Meters) To (Meters) Length (Meters) Au Grade (g/
Slide 11: With Only 5% of Area Claims Explored, There's Room to Grow
DONLIN GOLD: With Only 5% of Area Claims Explored, There’s Room to Grow Future exploration potential along the 8 km-long mineralized trend 11
Slide 12: 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 8 km-long 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 exploratio
Slide 13: Federal Permitting Completed and Update on State Permitting
DONLIN GOLD: Federal Permitting Completed and Update on State Permitting 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 Corps and Bureau of Land Management Section
Slide 14: Better Together
DONLIN GOLD: Building Value for the Future Generations of Stakeholders HEALTH & SAFETY EDUCATION & ENVIRONMENTAL TRAINING STEWARDSHIP STAKEHOLDER CORPORATE ENGAGEMENT GOVERNANCE Better Together 14
Slide 15: Long-Term Native Corporation Partners
DONLIN GOLD: Long-Term Native Corporation Partners The Donlin Gold project location was specifically selected for its resource development potential • The Alaska Native Claims Settlement Act1 (ANSCA) of 1971 resolved Alaska Native land claims, allotting 44 million acres for land use to Native Corpor
Slide 16: Providing a Helping Hand and Deepening Partnerships
DONLIN GOLD: Providing a Helping Hand and Deepening Partnerships Focused on our long-term strategy of delivering value for all stakeholders Continued extensive external affairs and community engagement • Donlin Gold is working with TKC, the State of Alaska and Alaska Native Tribal Health Consortium
Slide 17: Long-Term Community Investment
DONLIN GOLD: Long-Term Community Investment Native Corporations chose Donlin Gold project land for its valuable resource potential • Donlin Gold, in partnership with 28 regional partners, sponsored the Backhaul Project to remove hazardous waste from 10 villages in September • In addition, large appl
Slide 18: Partnered with Experienced Industry Leader Focused on Enhancing Value
DONLIN GOLD: Partnered with Experienced Industry Leader Focused on Enhancing Value Barrick is committed to advancing Donlin Gold as it rises in order of priority Barrick Gold Q3 2020 presentation1: 1) The intercepts represented in Barrick Gold’s Q3 2020 presentation November 5, 2020 show some of the
Slide 19: Project Catalysts
DONLIN GOLD: Project Catalysts Multi-generational sustainable economic opportunity • Complete drill program • Report drill assay results • Incorporate drill data into the latest model • The partners will determine the next steps to update the Donlin Gold feasibility study and initiate the engineerin
Slide 20: Maintaining a Strong Treasury
NOVAGOLD: Maintaining a Strong Treasury A healthy treasury to advance Donlin Gold to the next stage of development T R E A S U R Y P L A N N E D S P E N D I N G $126 cash and term deposit M $31 anticipated 2020 expenditures M balance on August 31, 2020 disclosed on January 22, 20202 G A L O R E C R
Slide 21: Leverage Where it Counts…and That You Can Keep
DONLIN GOLD: Leverage Where it Counts…and That You Can Keep Net Present Value (NPV) (US$ in Billions) NPV at 0% NPV at 5% 27.0B $2,500 19.2B $2,000 14.6B Donlin Gold NPV1 Gold Price (US$ per oz) $1,700 increases ~20x with ~2x $1,500 11.6B increase in gold price 8.2B $1,300 $0.0 $5.0 $10.0 $15.0 $20.
Slide 22: Strong Institutional Shareholder and Management Support
NOVAGOLD: Strong Institutional Shareholder and Management Support o The 10 largest shareholders represent 58.5% of shares issued and outstanding1 o Named Executive Officers’ share ownership has increased to 2,476,8622 since joining the Company 25.7% Electrum Strategic Resources LP & affiliates 7.5%
Slide 23: 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: 39,007,000 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 24: Appendix
Appendix
Slide 25: Top Recent Investor Questions & Answers
NOVAGOLD: Top Recent Investor Questions & Answers Topic Answer Donlin Gold Feasibility Donlin Gold was considered technically and economically feasible in the 2012 Second Updated Feasibility Study (FSU2). With 39 million ounces of contained gold in measured and indicated mineral resources inclusive
Slide 26: 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 27: A Board of Directors to Guide Donlin Gold Through Permitting
NOVAGOLD: A Board of Directors to Guide Donlin Gold Through Permitting 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 metals assets • Former Executive
Slide 28: Excellent 2017 Drill Program – Highlights
DONLIN GOLD: Excellent 2017 Drill Program – Highlights 2017 drill program of 16 core holes totaling 7,040 meters completed; high-grade zones encountered in multiple areas; data included in geologic modeling exercise Top Five Significant Intervals1 DC17-1821 130.5 meters grading 5.93 g/t gold, starti
Slide 29: Expected to Provide Decades of Low-Cost Production
DONLIN GOLD: Expected to Provide Decades of Low-Cost Production Low operating cash costs and all-in sustaining costs1 First Five Years Life of Mine Costs applicable to sales (millions) $3,003 Costs applicable to sales (millions) $19,240 Cash Costs Per Ounce Cash Costs Per Ounce Open-pit mining 133 O
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation makes reference to certain non-GAAP measures. These measures are not recognized measures under US GAAP and do not have a standardized meaning prescribed by US GAAP and are therefore unlikely to be comparable to similar measure
Slide 31: Mineral Reserves & Mineral Resources
NOVAGOLD: Mineral Reserves & Mineral Resources Donlin Gold (100% basis)* Tonnage Grade Metal content * Mineral reserves and resources are reported on a GOLD kt g/t Au koz Au 100% basis. NOVAGOLD and Barrick each own 50% of the Reserves(1) Donlin Gold project. Proven 7,683 2.32 573 Donlin Gold approx
Slide 32: NOVAGOLD Resources Inc. Contact
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
NOVAGOLD Resources — Investor Presentation (November 2020) on 6ix