Novagold Resources Inc. · AMEX:NG
Novagold Resources — Investor Presentation (June 2011)
33 slides from Novagold Resources's investor presentation, June 2011
Slide 1: NovaGold Resources Inc. Corporate Presentation
NovaGold Resources Inc. Turning experience & opportunity into gold Corporate Presentation NYSE‐AMEX, TSX: NG June 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 • High‐quality copper asset with Ambler project • Low geopolitical risk, strong community relationships • Significant exploration upside • Great value due to pre‐production discount •
Slide 4: World-class Projects
World‐class Projects Donlin Creek Galore Creek • Donlin Creek and > 20 Moz 10–20 Moz Galore Creek are in 1% 2% top 3% of global gold deposits • Located in North 1–10 Moz America 22% • NovaGold holds 50% < 1 Moz interest 75% • Senior partnerships in place 4 Source: Metals Economics Group.
Slide 5: Providing Superior Leverage
Providing Superior Leverage 16.8M ounces Gold Reserves 6.2M ounces Gold M&I 94M ounces Silver M&I 6.0B pounds Copper M&I 4.8M ounces Gold Inferred 58M ounces Silver Inferred 2.9B pounds Copper Inferred • One of the largest reserve/resource bases of any junior or intermediate gold company • Located i
Slide 6: Comparative Gold Resources in the Americas
Comparative Gold Resources in the Americas Intermediate 50 Producers Junior Millions of ozs Gold Resource 40 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 7: Enterprise Value per Ounce in the Americas
Enterprise Value per Ounce in the Americas Recent $900 Acquisitions $800 Avg $745 EV/oz Intermediate $700 Developers Junior Producers Producers Avg $165 EV/oz Avg $285 EV/oz Avg $360 EV/oz $600 $500 $400 $300 NG $200 $125 EV/oz $100 $0 Source: Intierra, Morgan Stanley and company websites. Share pri
Slide 8: Value of Gold Resource Per Dollar Invested
Value of Gold Resource Per Dollar Invested = Leverage Gold only, not including value from $10 copper and silver resources Value of Gold in US Dollars $8 $6 $4 $2 $0 Source: Intierra, Morgan Stanley and Company websites. TSX share price at May 20, 2011. Calculated using $1200/oz gold. Your dollar 8 v
Slide 9: 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 Copper Canyon and 100% of Ambler. Resource estimate updates as of May 2010. Based 9 on gold‐equivalent resources assuming a pri
Slide 10: Donlin Creek
50/50 Partnership with Barrick Donlin Creek Alaska Native Group: Calista, TKC 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” 10 and “Reserve & Resou
Slide 11: 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 Angostura Livengood
Slide 12: Donlin Creek Exploration Upside
Donlin Creek Exploration Upside 3km pit within 8km district Numerous exploration targets Located entirely on private land selected for mining 12 12
Slide 13: Adding Value at Donlin Creek
Adding Value at Donlin Creek • 50/50 partnership with Barrick • Expertise to advance project, underscores quality of resource • Excellent relationship with Alaska Native partners and regulators • Continued proactive community engagement helps ensure public support and social license to operate • Est
Slide 14: Galore Creek
50/50 Partnership with Teck Galore Creek First Nation Group: 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 o
Slide 15: 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 Blbs Cu M&I 55 Mozs Au M&I Gold M&I Resource Millions of ozs of Gold Resource 26 Blbs Cu Inf 20 Mozs Au Inf Gold Inferred Resource Copper M&I Resource Galore Creek: Copper Inferred
Slide 16: Adding Value at Galore Creek
Adding Value at Galore Creek • 50/50 partnership with Teck • Excellent relationship with Tahltan Nation • Future resource expansion potential • Significant value from copper and silver • Pre‐feasibility end of Q2‐2011 • Higher throughput, higher metal prices • Production and cash flow estimates • Ca
Slide 17: 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 0.5M ozs Gold 0.3M ozs Gold Measured & Indicated 1 Inferred 1 32M ozs Silver 19M ozs Silver Measured & Indicated 1 In
Slide 18: 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 19: Ambler District – Exploration Potential
Ambler District – Exploration Potential 19
Slide 20: Arctic Deposit: Preliminary Economic Assessment
Arctic Deposit: Preliminary Economic Assessment • Base case1: Pre‐tax NPV8% of US$718 million, IRR of 30% • Current metal prices2: Pre‐tax NPV8% of US$2.2 billion, IRR of 59% • Startup capital US$262 million, sustaining capital US$167 million • Operating cost US$99.32/t milled, cash cost US$0.89/lb
Slide 21: Adding Value at Ambler
Adding Value at Ambler 9 Preliminary Economic Assessment to establish economics • Agreement with NANA Regional Corporation for collaborative exploration and development of the district • Discussions with State regarding infrastructure and access • Exploration and resource expansion • Advance project
Slide 22: NovaGold Value Drivers
NovaGold Value Drivers • Galore Creek • Complete pre‐feasibility study, end of Q2‐2011 • GCMC Board decision on next steps to advance project • Donlin Creek • Complete feasibility revision, H2‐2011 • Donlin Creek LLC Board decision to advance to permitting • Ambler • 10,000 meters of drilling • Engi
Slide 23: 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 24: Appendix
Hie, NovaGold Appendix
Slide 25: Share Capitalization
Share Capitalization Issued and Options Warrants Fully diluted 1 outstanding outstanding 238.1M 11.8M 41.8M 291.7M 1) As of May 27, 2011. Fully diluted number excludes convertible notes. 25
Slide 26: Sustainability Commitments
Sustainability Commitments • NovaGold publishes annual, comprehensive sustainability reports • NovaGold supports the UN Global Compact • NovaGold supports the International Council on Mining & Metals Sustainability Principles 1. Ethical business practices and sound corporate governance 2. Sustainabl
Slide 27: Management Team
Management Team • Rick Van Nieuwenhuyse – President & CEO • Gil Leathley – Senior VP & COO • Elaine Sanders – VP Finance & CFO • Kevin Francis – VP Resources • Sacha Iley – VP Human Resources • Greg Martin – VP Business Development & Treasurer • Joe Piekenbrock – VP Exploration • Ron Rimelman – VP E
Slide 28: 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 28
Slide 29: 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 May 20, 2011 Reserves Property Reserve Tonnes In Situ Grade Total Contained Metal NovaGold Share Net After E
Slide 30: 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 31: 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 32: Analyst Coverage
Analyst Coverage 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 McNicoll, Lewis, Vlak Imaru Casanova 212‐542‐5869 32
Slide 33: 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 33
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