NOVAGOLD Reports First Quarter 2020 Financial Results: Safety First: NOVAGOLD Implements Strong COVID-19 Precautionary Measures at Both its Offices and with Barrick Gold at Donlin Gold Initiates Project Optimization Drill Program, Receives Multiple State Permits and
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NOVAGOLD Reports First Quarter 2020 Financial Results:
Safety First: NOVAGOLD Implements Strong COVID-19 Precautionary Measures at Both its
Offices and with Barrick Gold at Donlin Gold
Initiates Project Optimization Drill Program, Receives Multiple State Permits and
Authorizations, and Maintains Strong Financial Position
In order to minimize the risk posed by COVID-19, NOVAGOLD implemented a wide-ranging set of policies at its
offices in Salt Lake City and Vancouver, and in conjunction with Barrick Gold Corp. (“Barrick”) at the Donlin Gold
LLC (“Donlin Gold”) office in Anchorage and project site, designed to ensure the safety and wellbeing of all
employees, contractors, and people associated with them.
Three drill rigs were mobilized at the Donlin Gold site for the project’s largest drill program in 12 years with 80
holes planned totaling 22,000 meters to be drilled in the ACMA and Lewis deposit areas, but as a result of travel
restrictions and other COVID-19 measures in the region, the drill program will be temporarily paused and go into
care and maintenance until it is safe for our employees and contractors to return to site .
Donlin Gold received the final State Right -of-Way (ROW) lease for the buried natural gas pipeline , the final
easements for the access road and fiber optic cable, as well as land leases, land use permits, and material site
authorizations for proposed transportation facilities on State lands .
NOVAGOLD continued to maintain a st rong treasury with $140. 7 million in cash and term deposits at the end of
the first quarter, with $75 million in additional receivables from Newmont expected in 2021 and more to follow ;
NOVAGOLD continues to execute on a conservative financial plan to advance the Donlin Gold project up the value
chain.
April 1, 2020 - Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company”)
(NYSE American, TSX: NG) today released its 2020 first quarter financial results and an update on its flagship Donlin
Gold project in Alaska, which NOVAGOLD owns equally with Barrick.
Details of the financial results for the quarter ended February 29, 2020 are presented in the consolidated financial
statements and quarterly report filed April 1, 2020 on Form 10-Q with the SEC that is available on the Company's
website at www.novagold.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov. All amounts are in U.S.
dollars unless otherwise stated and all resource and reserve estimates are shown on a 100% project basis.
In the first quarter 2020 and more recent global events, NOVAGOLD wanted to highlight the following
achievements and updates:
COVID-19
NOVAGOLD’s most important objective is to secure the health and safety of its employees, partners and
contractors. In that regard, to reduce risk, our office employees have been asked to work from home,
avoid all non-essential travel, adhere to good hygiene practices, and, if they must visit the office, engage
in social distancing. NOVAGOLD and its partner Barrick Gold, through Donlin Gold LLC, have
implemented a wide-ranging set of policies consistent with the State of Alaska’s requirements,
recommendations, and precautions for State activities and aimed at achieving the same objectives at
the project site including: screening all employees and contractors visiting the project site prior to their
departure and periodically during their stay; should any individual exhibit symptoms of illness, they will
be evaluated to determine if they need to be isolated and evacuated from site; implementation of more
frequent sanitization practices; regularly conducting safety meetings designed to address sound
hygiene and sanitization practices; and requesting all employees to monitor their health and consult the
health professionals if feeling any symptoms of illness.
In addition, Donlin Gold LLC has reached out to Calista Corporation (Calista) and The Kuskokwim
Corporation (TKC), Donlin Gold’s Native Corporation partners and owners of the project’s subsurface
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and surface rights, respectively, to offer help and assistance with COVID -19 related issues at this great
time of need.
While the 2020 Donlin Gold drill program preparations and work commenced in February, as a
precautionary measure and to align with the State of Alaska Department of Health and Social Services
recommendations, travels restrictions and other COVID-19 measures in the region, the drill program will
temporarily pause and the project site will go into care and maintenance until it is safe for our
employees and contractors to return to site.
NOVAGOLD and Barrick advanced technical work on Donlin Gold:
The partners commenced the project’s drill program, encompassing 80-holes planned totaling
22,000-meters in the ACMA and Lewis resource areas, with the objective of validating recent geologic
and resource modeling concepts and testing potential extensions of high -grade zones focused on early-
life mining that have the potential to add value.
We continued to advance the multi-year site investigation program that commenced in mid-2019 as
part of the project’s dam safety certification application.
With key Federal and State permits in hand, Donlin Gold secured additional State permits:
In early January, the Alaska Department of Natural Resources (ADNR) Division of Mining, Land, and
Water (DMLW) issued the final land leases, land use permits, and material site authorizations for the
proposed transportation facilities on State lands and the final easements for the access road and fiber
optic cable.
On January 17, 2020, the ADNR issued the final State ROW lease for the buried natural gas pipeline to
provide fuel to power the remote project site.
Donlin Gold, together with Calista and TKC, continued their long-standing community engagement during the
quarter:
Donlin Gold worked with TKC, the State of Alaska and Alaska Native Tribal Health Consortium in an
initiative to upgrade, as well as improve health and safety standards, of water and sewer services in
Middle Kuskokwim area communities.
In a partnership with TKC, the Village of Crooked Creek, and the Napaimute Tribe, Donlin Gold funded
and provided technical data to extend and maintain the ice road on the Kuskokwim River - greatly
improving safety and access to nearby remote communities.
Donlin Gold delivered a project update with TKC CEO and President , Andrea Gusty, at the TKC Middle
Kuskokwim Gathering in Aniak, where 10 villages were represented.
Donlin Gold hosted and sponsored a regional basketball tournament in January at Bethel High School
where nine communities participated. Bethel is approximately 140 miles from Donlin Gold and is the
closest major town to the project.
President’s Message
Continuing to advance Donlin Gold in the climate of COVID -19
While many important milestones were achieved during the first quarter 2020, a great deal of that fine work is
overshadowed by the stark backdrop of the spread of COVID-19. That was particularly the case in the latter part of the
quarter when it became clear that the world, as we knew it, was changing.
NOVAGOLD treats all matters related to the health and safety of its employees with the utmost urgency and thus
addressed the challenges and the dangers posed by COVID-19 by immediately instituting specific operating and
social guidelines at both of its offices and, together with Barrick, at Donlin Gold. The key elements of the office
policies relate to strongly encouraging everyone to work from home and maintain rigid rules for s ocial distancing,
hygiene and travel restrictions.
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At Donlin Gold, Barrick and NOVAGOLD instituted a comprehensive set of testing for symptoms of COVID -19 prior to
traveling to the project site, as well as new health, hygiene and behavior guidelines implemented for those working
at the project site designed to protect individuals from contracting or spreading the virus. As an additional
precautionary measure and to align with the State of Alaska Department of Health and Social Services, travel
restrictions and other COVID-19 measures in the region, we will temporarily pause the drill program and reduce
activities to care and maintenance until it is safe for our employees and contractors to return to site. We are
committed to maintaining vigilance during this pandemic and continue to enforce all the appropriate guidelines to
ensure everyone’s safety and wellbeing.
Building Value for a Unique Asset
NOVAGOLD strongly believes that Donlin Gold is a one-of-a-kind asset, unique in our industry. There are several
reasons for that description. First, with approximately 39,000,000 ounces of gold in measured and indicated
mineral resources1, we believe it is nearly impossible for this endowment to be replicated given the scarcity of such
projects and the lack of new discoveries in the world. Second, its grade, averaging 2.24 grams per tonne1 is more than
twice the industry average grade2. Third, considering that its stated resources are contained in only three
kilometers of an eight-kilometer mineralized belt, and with only a small portion of the land package having been
explored, Donlin Gold could well command district-sized exploration potential. Fourth, its location in Alaska, with the
State’s history of support for responsible mining and mine development, provides the kind of jurisdictional safety
that is a key differentiator, especially during this era of political and economic fragility. And, of course, we are truly
blessed to have time-tested Native Corporation partners who share our vision of building value for their future
generations of stakeholders in this game-changing project.
All of these attributes clearly render Donlin Gold unique. Consequently, any value-enhancing work that we undertake
on the property should be value-accretive to the owners. In 2017, Donlin Gold carried out a drill program that
encountered distinct significant high-grade intercepts within the reserve pit and high grades identified outside the
planned pit boundaries. With a history of growth through drilling, these results are indeed indicative of the
exceptionally strong resource potential that exists. In 2019, Donlin Gold commenced a multi-year site investigation
program required to collect additional geotechnical information to advance the engineering work on the tailings
facility and other water retention and diversion structures from a feasibility level study to a final construction
package, as required for the project’s dam safety certificate application to ADNR. The safety of the tailings facility
constitutes one of Donlin Gold’s most important priorities as the partners continue to ensure that the work is done to
the highest standards and according to best design practices.
The partners have mobilized three drill rigs at the Donlin Gold site for the project’s largest drill program in 12 years,
with 80-holes totaling 22,000-meters planned in the ACMA and Lewis deposit areas to validate recent geologic and
resource modeling concepts, and test potential extensions of high-grade zones focused on early life mining that have
potential to add value. The program will provide the necessary data needed for the owners to decide on the next
steps to update the Donlin Gold feasibility study and initiate the engineering work necessary to advance the project
design from feasibility level to basic, then detailed, engineering before reaching a construction decision. As a
precautionary measure and as a result of travel restrictions and other COVID -19 measures, the owners have decided
to temporarily pause the drill program. The project site will go into care and maintenance and the drill program will
resume once it is safe for our employees and contractors to return to site.
Early in 2020, NOVAGOLD reached a number of milestones with the issuance of key transportation and energy
infrastructure approvals for the Donlin Gold project including the final state land authorizations and the final state
ROW lease for the buried natural gas pipeline to provide fuel to power the remote project site. The receipt of the
ROW lease and other land leases and permits for the transportation facilities are the most recent among the last few
key permits needed to proceed with activities at Donlin Gold. With federal permitting complete and state permitting
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 and inclusive of mineral reserves. Mineral
resources have been estimated in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
2 2019 average gold grade of open -pit and underground deposits with gold as primary commodit y and over 1 Moz in measured and indicated
resources is 1.05 g/t, sourced from S&P Global Market Intelligence.
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progressing, the focus is on the drill program to advance and integrate scoping-level optimization work into a study
that will serve as the basis for an updated project development plan.
Given the significant advancement of all permitting activities and substantial amount of project de- risking that the
owners have undertaken over the years, the timeline for the development of Donlin Gold resides in the hands of the
partnership. NOVAGOLD is working with Barrick’s management and technical team to advance the project in a
financially disciplined manner with a strong focus on engineering excellence, environmental stewardship, a strong
safety culture and continued community engagement.
Strong upside and well-protected downside
It is well known that the value of Donlin Gold is highly leveraged to the price of gold. What few people realize,
however, is the fact that NOVAGOLD’s value in a downside scenario is also exceptionally well protected. In the
Chairman’s Q&A section of our 2019 Annual Report, which was written around the New Year , we address
NOVAGOLD’s positioning in terms of its downside protections. The following excerpt discusses the potential
concerns our employees, shareholders, contractors, partners and communities may have regarding the economic
security of the Company as we continue to focus on responding to the COVID-19 global health crisis:
14. Do you still see NOVAGOLD as well -positioned in terms of its downside protections, or is the gold
market past the need for that?
One should never be past thinking in terms of downside protection. Indeed, as a seasoned player in the natural
resources space who strongly believes in the notion that if an investor has covered the downside the upside will
take care of itself, let me actually highlight the downside protections we’ve put in place for NOVAGOLD’s owners in
order to ensure that your company, effectively an unexpiring warrant without time decay, is positioned to prosper.
As a pure play on a federally permitted mining project – on Native Corporation land already designated for
mining – we believe Donlin Gold will constitute the largest single pure gold mine in the world, in one of the few
parts of the world where mining is welcomed and the rule of law isn’t a novelty. The projec t has tremendous
support at the local, state, and federal levels.
And we have a well-managed, tier-one partner in Barrick Gold. Moreover, as of February 29, 2020, NOVAGOLD
had a balance sheet that, between cash on hand and receivables, was approximately $241 million, with maybe
more to come. With federal permitting behind us, and Galore Creek monetized, NOVAGOLD’s current obligated
burn rate is nominal at a time when we are flush with cash.
What this means is that, were the gold price to go down before they revive in full, and should we face challenging
times, we simply could not go out of business under any reasonable scenario. While I don’t believe that the
fundamentals of gold, or the industry, require a washout to set the stag e for gold’s next big move higher, these
head fakes do happen. Shakeouts before a blistering move upward are classic chart patterns. Think of a V -bottom
and you may recall a few. This is assuredly not a scenario our shareholders should fear – the Electrum team having
been in that movie several times over the years and knowing well from firsthand experience how to position our
portfolio companies in order to identify opportunity in market displacements.
We have thus deliberately positioned NOVAGOLD in such a manner that we likely would not need to raise capital,
even if the resumption of the gold bull market is delayed by a temporary downturn in gold price – including a
sharp one. If anything, under certain circumstances, the company might determine that its shares are worth more
than the metal itself and buy some back. Put differently, an investor can expect that, when gold is acknowledged
to have put in its bottom, we will not have diluted our fully intact optionality on our reserve base. For an investor,
these robust downside protections provide a true differentiator.
Dedication to strong partnerships with stakeholders
NOVAGOLD and our project partners are committed to enhancing and engaging in community relationships to
preserve traditional ways of life and support economic development for the benefit of Calista and TKC shareholders
and the Y-K region. One partnership that speaks directly to the health and safety of our employees and our
communities is recent assistance with construction of an ice road on the Kuskokwim River, which acts as a highway
connecting these remote villages to one another. In partnership with TKC, the Village of Crooked Creek, and
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Napaimute Tribe, Donlin Gold was the lead sponsor of a project to construct and maintain the upper portions of an
ice road on the Kuskokwim River from Crooked Creek to Sleetmute and provided technical data to assist the
roadbuilder, including aerial photographs and ice measurements along the river . For the first time, the road extended
as far north as Sleetmute, greatly improving safety and access to nearby communities for residents in remote
locations, creating economic opportunity for local trade, and increased community contact for sport, social activities
and academics. In many of these communities, difficulty with air travel in winter can lead to life- threatening scenarios
and isolation from other communities, family and friends. Through Donlin Gold, NOVAGOLD is proud to have played
a part in bringing this safety lifeline to communities in the Middle Kuskokwim. Upon its completion in February, the
Kuskokwim ice road was a record length of 355 miles long running from just south of Bethel to Sleetmute.
Also having a positive impact on communities farther from the project, Donlin Gold was invited to host and sponsor
a regional basketball tournament in January at Bethel High School where nine villages participated. Bethel is
approximately 140 miles from Donlin Gold, is the closest major town to the project, and is a significant port and
regional hub in southwestern Alaska. Additionally, Donlin Gold is working with TKC, the State of Alaska and Alaska
Native Tribal Health Consortium on a health initiative to upgrade, as well as improve health and safety standards of
water and sewer services in Middle Kuskokwim area communities. As part of its ongoing community engagement,
Donlin Gold attended and gave a presentation with TKC’s CEO and President, Andrea Gusty, at the TKC Middle
Kuskokwim Gathering in Aniak where 10 villages were represented.
In January, Pete Kaiser, 2019 Iditarod Champion and Donlin Gold -sponsored musher, won the Kuskokwim 300
regional dog mushing race. In addition, Donlin Gold sponsored four Iron Dog teams for the annual snowmobile race
in February. These popular events are an important part of the culture and way of life in remote south western Alaska.
A balance sheet with integrity
A unique feature and benefit of being a NOVAGOLD shareholder is not only owning a piece of one of the rarest assets
in the world but also a Company with a strong balance sheet and projected expenses that are comfortably within
means and which has not needed to go back to the market in more than eight years. In 2020, we are projecting
expenses of $31 million. With approximately $140.7 million in cash and term deposits as of February 29, 2020, the
management team can focus entirely on moving Donlin Gold forward without the distraction of needing to raise
additional capital. In addition to a strong balance sheet, we expect to receive an additional $ 75 million from
Newmont in 2021 and another $25 million in 2023, or a further $75 million contingent payment on top of that which
we would receive if and when the Galore Creek project owners approve a construction plan. Based on these
commitments and projected needs, the Company believes it has sufficient funds to advance Donlin Gold without the
need to raise capital until markets, and indeed the rest of the world, are considerably healthier and a construction
decision is made.
In periods of turmoil, we believe companies like NOVAGOLD present an investment opportunity that stand above
most others. As a pure play on one of the world’s largest and highest-grade known open-pit gold deposits - now
federally permitted for development in a geo-politically safe jurisdiction with well-established support for
responsible mining – we believe NOVAGOLD is an incredible value proposition, now more than it has been in years ,
particularly in light of its exceptional leverage to the price of gold and great downside protection . As global gold
production reaches “peak gold”, we believe Donlin Gold’s scarcity value can only get better as the industry depletes
its established reserves and begins to seek out replacement in a world where major discoveries have become near ly
extinct.
I wish to thank the experienced team of professionals at NOVAGOLD, Donlin Gold, and Barrick for their steadfast
dedication to advancing the project. We are also thankful to our Native Corporation partners, Calista and TKC. Their
strong support and commitment to Donlin Gold have been the foundation of our success. T he permitting
achievements this quarter 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 best practices. To our Board of Directors, I
wish to thank all of you for your continued counsel and adherence to best governance practices which have truly set
the Company apart in the junior development space.
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To our shareholders, having come to know many of you, I thank you all for your unwavering support, engagement,
patience, and dedication. It is not during times of good fortune when you learn who your friends are but in times of
difficulty. Our shareholders have understood and supported NOVAGOLD’s investment thesis and have shown
remarkable steadfastness as we continued to deliver on our strategy. For that and much more, we are truly grateful to
you.
We at NOVAGOLD pledge to remain true to our promise to build on Donlin Gold’s unparalleled value an d growth
propositions, and to remain true to our principles to do it right and continue to make our shareholders proud. As we
begin a new quarter during a challenging era, please know that we wish all of our stakeholders, who we sincerely
consider to be our friends and family, a safe and healthy future.
Sincerely,
Gregory A. Lang
President & CEO
Financial Results
in thousands of U.S. dollars, except for per share amounts
Three months ended
February 29, 2020
$
Three months ended
February 28, 2019
$
General and administrative expense (1) 4,714 4,340
Share of losses – Donlin Gold 1,568 1,323
Total operating expenses 6,282 5,663
Loss from operations (6,282) (5,663)
Interest expense on promissory note (1,760) (1,798)
Accretion of notes receivables 824 795
Other income 887 700
Income tax expense (264) (357)
Net loss (6,595) (6,323)
Loss per share, basic and diluted (0.02) (0.02)
At
February 29, 2020
$
At
November 30, 2019
$
Cash and term deposits 140,699 148,549
Total assets 239,816 245,835
Total liabilities 108,803 107,881
(1) Includes share-based compensation expense of $1,761 and $1,531 for the first quarter-ended February 29, 2020 and quarter-ended February
28, 2019, respectively.
For the first quarter ended February 29, 2020, NOVAGOLD’s share of Donlin Gold losses increased from $1.3 million in
2019 to $1.6 million in 2020 due to preparations for the drill program.
General and administrative costs in 2020 increased by $0.4 million from 2019, primarily due to higher share-based
compensation and regulatory costs.
Liquidity and Capital Resources
In the first three months of 2020, total cash, cash equivalents and term deposits decreased by $7.9 million of which
$3.5 million was used in operating activities for administrative costs and working capital changes, $2.6 million was
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used to fund Donlin Gold and $1.7 million related to withholding taxes paid on vested performance share units.
Effects of exchange rate changes also decreased cash by $0.1 million.
Net cash used in operating activities in 2020 increased by $0.3 million from 2019, primarily due to lower interest
income and higher regulatory fees partially offset by changes in working capital. Funding of Donlin Gold increased by
$1.7 million due to the preparations for the commencement of fieldwork in March 2020.
NOVAGOLD had $140.7 million in cash and term deposits as of February 29, 2020. The Company’s cash and term
deposits are believed to be sufficient to advance Donlin Gold and meet our other financial obligations. Additional
capital will be necessary if a decision to commence engineering and construction is reached for the Donlin Gold
project. The term deposits are denominated in U.S. dollars and are held at Canadian chartered banks.
2020 Outlook
We anticipate spending approximately $31 million in 2020, which includes $20 million to fund our share of
expenditures at the Donlin Gold project, the majority earmarked for the drill program with the balance for permitting
and community engagement, and $11 million for general and administrative costs.
NOVAGOLD’s primary goals in 2020 are to continue to advance the Donlin Gold project toward a
construction/production decision; maintain a healthy balance sheet; and continue an effective corporate social
responsibility program.
Minimizing risk of COVID-19 Exposure
NOVAGOLD’s most important objective is to secure the health and safety of its employees, partners, and contractors.
As so many other companies have done, in recognition of the major threat posed by COVID -19, the Company has
implemented a wide-ranging set of policies at its offices in Salt Lake City and Vancouver, as well with its partner
Barrick at the Donlin Gold office in Anchorage and Donlin Gold site, designed to ensure the safety and well- being of
all employees, contractors, partners, and the people associated with them. In that regard, to reduce risk, our office
employees have been asked to work from home, avoid all non-essential travel, adhere to good hygiene practices,
and, if they must visit the office, engage in social distancing.
NOVAGOLD and its partner Barrick through Donlin Gold have implemented a wide-ranging set of policies consistent
with the State of Alaska’s requirements, recommendations, and precautions for State activities and aimed at
achieving the same objectives at the Donlin Gold project site:
Screening all employees and contractors visiting the Donlin Gold project site prior to their departure for
site and periodically during their stay. Should any individual exhibit any symptoms of illness , they will be
evaluated to determine if they need to be isolated and evacuated from site;
Implementing more frequent sanitization practices;
Regularly conducting safety meetings designed to address sound hygiene and sanitization practices;
and
Requesting all employees to monitor their health and consult health professionals if feeling any
symptoms of illness.
In addition, Donlin Gold has reached out to Calista and TKC, Donlin Gold’s Native Corporation partners and owners of
the project’s subsurface and surface rights, respectively, to offer help and assistance with COVID-19 related issues at
this great time of need.
NOVAGOLD 2019 Annual Report
Investors are reminded that NOVAGOLD’s 2019 annual report has been mailed in hard copy to those shareholders
who have requested it and is also available online without charge in interactive form https://bit.ly/38QsvHI as well as
downloadable PDF https://bit.ly/32Sr1vz. Investors interested in Dr. Thomas Kaplan’s thoughts on gold
(https://bit.ly/2PPQG2i) or in NOVAGOLD’s achievements in 2019 and goals for 2020 from our President and CEO,
Greg Lang (https://bit.ly/2wCiNv9), can find them in the Company’s full annual report on NOVAGOLD’s website.
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If you wish to receive a hard copy, please send the request to [email protected] or call Investor Relations at +1-866-
669-6227.
Conference Call & Webcast Details
NOVAGOLD’s conference call and webcast to discuss these results will take place April 2, 2020 at 8:00 am PT (11:00
am ET). The webcast and conference call-in details are provided below.
Webcast: www.novagold.com/investors/events/
North American callers: 1-800-319-4610
International callers: 1-604-638-5340
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),3 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 three kilometers of an approximately eight-kilometer 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.
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
3 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 and inclusive of mineral reserves. Mineral
resources have been estimated in accordance with NI 43-101.