NOVAGOLD Announces the Receipt of Key State of Alaska Approvals for the Donlin Gold Project
NOVAGOLD NEWS RELEASE
NYSE AMERICAN. TSX:
NOVAGOLD Announces the Receipt of Key State of Alaska Approvals
for the Donlin Gold Project
February 6, 2020 - Vancouver, British Columbia - NOVAGOLD RESOURCES INC. (“NOVAGOLD” or the “Company’)
(NYSE American, TSX: NG) today announced that its flagship Donlin Gold project, which NOVAGOLD owns equally
with Barrick Gold Corp. (“Barrick”), received the final State Right-of-Way (ROW) authorization for the buried natural
gas pipeline, issued by the Alaska Department of Natural Resources (ADNR) on January 17, 2020. The ADNR also
issued final authorization of the easement, land leases, land use permits, and material site authorizations for the
proposed transportation facilities, and easement for the fiber optic cable on State lands on January 2,
2020. Additionally, ADNR denied an appeal and affirmed the Division of Mining, Land, and Water's original January
18, 2019 approval of Donlin Gold LLC’s Reclamation Plan and its accompanied permit.
“We are very pleased to see the issuance of key transportation and energy infrastructure approvals for Donlin Gold,”
said Greg Lang, President and CEO. “These final State land authorizations are important for the advancement of
Donlin Gold. These achievements would not have been possible without the dedication of the professionals at the
Alaska Department of Natural Resources to advance permits and approvals for the project in a transparent as well as
environmentally and socially responsible manner with strong adherence to governance best practices. We are proud
of the work supporting the issuance of these permits carried out by the teams at Donlin Gold, Barrick and
NOVAGOLD and appreciate the support and contributions from our Native Corporation partners, Calista Corporation
and The Kuskokwim Corporation.”
The receipt of the ROW authorization and other land leases and permits for the transportation and pipeline facilities
are the latest in a growing list of Donlin Gold's permitting approvals, including the jointly issued Federal Record of
Decision received in August 2018. A number of other key State permits have also been finalized for the project,
including the Alaska Pollutant Discharge Elimination System (APDES) water discharge permit, Prevention of
Significant Deterioration (PSD) major source air quality permit, waste management permit, Reclamation Plan
approval permit, and fish habitat permits for the mine site and transportation corridor.
A buried natural gas pipeline delivers environmental benefits, cost efficiency and capability to transport large
quantities of natural gas to power the remote project site. The proposed 316-mile pipeline would be 14 inches in
diameter, typically buried at three to six feet deep, providing a reliable natural gas supply regardless of weather or
season to support power generation at the Donlin Gold site.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company focused on the development of its 50%-owned Donlin Gold
project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in
the measured and indicated mineral resource categories, inclusive of proven and probable mineral reserves (541
million tonnes at an average grade of approximately 2.24 grams per tonne in the measured and indicated resource
categories on a 100% basis),' Donlin Gold is regarded to be one of the largest, highest-grade, and most prospective
known open pit gold deposits in the world. According to the Second Updated Feasibility Study (as defined below),
once in production, Donlin Gold is expected to produce an average of more than one million ounces per year over a
27-year mine life on a 100% basis. The Donlin Gold project has substantial exploration potential beyond the designed
footprint which currently covers 1.9 miles (3 km) of an approximately five-mile (8 km) long gold-bearing trend.
Current activities at Donlin Gold are focused on state permitting, optimization work, community outreach and
workforce development in preparation for the construction and operation of this project. With a strong balance
sheet, NOVAGOLD is well-positioned to fund its share of permitting and optimization advancement efforts at the
Donlin Gold project.
1 Donlin Gold data as per the Second Updated Feasibility Study (as defined herein). Donlin Gold measured resources of approximately 8 Mt
grading 2.52 g/t and indicated resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis. Mineral resources have been estimated
in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”).
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Scientific and Technical Information
Some scientific and technical information contained herein with respect to the Donlin Gold project is derived from the
“Donlin Creek Gold Project Alaska, USA NI 43-101 Technical Report on Second Updated Feasibility Study” prepared by
AMEC with an effective date of November 18, 2011, as amended January 20, 2012 (the “Second Updated Feasibility
Study”). Kirk Hanson, P.E., Technical Director, Open Pit Mining, North America, (AMEC, Reno), and Gordon Seibel, R.M.
SME, Principal Geologist, (AMEC, Reno) are the Qualified Persons responsible for the preparation of the independent
technical report, each of whom are independent “qualified persons” as defined by NI 43-101.
Clifford Krall, P.E., who is the Mine Engineering Manager for NOVAGOLD and a “qualified person” under NI 43-101, has
approved and verified the scientific and technical information related to the Donlin Gold project contained in this
press release.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
Jason Mercier
Manager, Investor Relations
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This press release 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 Securities Litigation Reform Act of 1995. Forward-looking statements are
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frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar
expressions, or statements that events, conditions, or results “will”, “may”, “could”, “would” or “should” occur or be achieved. Forward-looking statements
are necessarily based on several opinions, estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the
date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results,
activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. All statements,
other than statements of historical fact, included herein are forward-looking statements. These forward-looking statements include statements regarding
the potential development and construction of Donlin Gold; perceived merit of properties; potential benefits of a buried natural gas pipeline; the
advancement of optimization studies at Donlin Gold; potential opportunities to enhance or maximize the value of Donlin Gold; sufficiency of funds for the
Company to advance Donlin Gold without additional financing; the timing and likelihood of permits; the expectation regarding issuance of the dam
safety certifications; opportunities to reduce capital outlays and improve project economics; mine life and production estimates at Donlin Gold; the
exploration potential of Donlin Gold; mineral reserve and resource estimates; work programs; capital expenditures; timelines; strategic plans; and benefits
of the Donlin Gold project and market prices for precious metals. In addition, any statements that refer to expectations, intentions, projections or other
characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are not historical facts but instead
represent NOVAGOLD’s management expectations, estimates and projections regarding future events or circumstances on the date the statements are
made.
Important factors that could cause actual results to differ materially from expectations include the need to obtain additional permits and governmental
approvals; the timing and likelihood of permits; the need for additional financing to explore and develop properties and availability of financing in the debt
and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need
for continued cooperation between NOVAGOLD and Barrick Gold Corp. for the continued exploration, development and eventual construction of the Donlin
Gold property; the need for cooperation of government agencies and native groups in the development and operation of properties; risks of construction and
mining projects such as accidents, equipment breakdowns, bad weather, natural disasters, climate change, non-compliance with environmental and permit
requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases, which could include significant
increases in estimated capital and operating costs; fluctuations in metal prices and currency exchange rates; whether a positive construction decision will be
made regarding Donlin Gold; and other risks and uncertainties disclosed in reports and documents filed by NOVAGOLD with applicable securities regulatory
authorities from time to time. The forward-looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on the date the
statements are made. NOVAGOLD assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should
they change, except as required by law.
Cautionary Note to United States Investors
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S.
securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been prepared in accordance with Canadian
National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM)—CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (“CIM Definition Standards”). NI 43-
101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and
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NOVAGOLD NEWS RELEASE
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technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States
Securities and Exchange Commission (SEC) Industry Guide 7 (“SEC Industry Guide 7”), and resource and reserve information contained herein may not be
comparable to similar information disclosed by U.S. companies. NOVAGOLD’s disclosure concerning Reserve & Resource Estimates remains consistent with
NI 43-101. Under SEC Industry Guide 7, mineralization may not be classified as a "reserve” unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time the reserve determination is made. SEC Industry Guide 7 normally does not permit the
inclusion of information concerning "measured mineral resources”, "indicated mineral resources” or "inferred mineral resources” or other descriptions of the
amount of mineralization in mineral deposits that do not constitute "reserves” under SEC Industry Guide 7 in documents filed with the SEC. Investors should
also understand that "inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and
legal feasibility. Under Canadian rules, estimated "inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare
cases. Disclosure of "contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to
report mineralization that does not constitute "reserves” under SEC Industry Guide 7 as in-place tonnage and grade without reference to unit measures. The
requirements of NI 43-101 for identification of reserves” are also not the same as those of SEC Industry Guide 7, and reserves reported by NOVAGOLD in
compliance with NI 43-101 may not qualify as "reserves” under SEC Industry Guide 7. Donlin Gold does not have known reserves, as defined under SEC
Industry Guide 7. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies
that report in accordance with SEC Industry Guide 7.
On October 31, 2018, the SEC adopted a final rule (“New Final Rule”) that will replace SEC Industry Guide 7 with new disclosure requirements that are more
closely aligned with current industry and global regulatory practices and standards, including NI 43-101. Companies must comply with the New Final Rule
for the company’s first fiscal year beginning on or after January 1, 2021, which for NOVAGOLD would be the fiscal year beginning December 1, 2021. The
New Final Rule provides that SEC Industry Guide 7 will remain effective until all registrants are required to comply with the New Final Rule, at which time
SEC Industry Guide 7 will be rescinded. While early voluntary compliance with the New Final Rule is permitted, NOVAGOLD has not elected to comply with
the New Final Rule at this time.
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