NOVAGOLD Reports Fiscal Year 2020 Financial Results Donlin Gold Exceeds Modeled Expectations in Successful 2020 Drilling Program; Received Additional State Permits, with All COVID-19 Health and Safety Protocols Strictly in Check; and
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NOVAGOLD Reports Fiscal Year 2020 Financial Results
Donlin Gold Exceeds Modeled Expectations in Successful 2020 Drilling Program;
Received Additional State Permits, with All COVID-19
Health and Safety Protocols Strictly in Check; and
NOVAGOLD’s Cash Position Expected to be Enhanced Further within Six Months
The Donlin Gold project (“Donlin Gold” or the “project”) safely and successfully completed an 85-hole,
23,400-meter drill program, the largest such initiative by the partnership in 12 years, which yielded higher
drilled grade-thicknesses than predicted by previous modelling and is expected to improve interpretation
of gold mineralization controls. The program to date not only improves geologic interpretation, it also
provides encouragement for additional high-grade drill targets
To minimize the risk posed by COVID-19, NOVAGOLD, in conjunction with its joint-venture partner Barrick
Gold Corporation (“Barrick”), continued to enforce strict protocols to ensure the safety and well-being of all
its employees and contractors, resulting in zero COVID-19 cases on site and no Lost-Time Incidents
In January 2020, the Alaska Department of Natural Resources (ADNR’s) Division of Mining, Land and Water
(DMLW) issued the final Donlin Gold 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
NOVAGOLD continues to maintain a strong treasury with $1 21.9 million in cash and term deposits as of
November 30, 2020, plus receivables from Newmont Corp. amounting to $75 million due in July 2021 and
an additional $25 million to be paid by the end of July 2023
January 27, 2021 - Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) today released its 2020 year-end financial results and an update on its
Tier One1 gold development project Donlin Gold, which NOVAGOLD owns equally with Barrick.
Details of the financial results for the year ended November 30, 2020 are presented in the consolidated
financial statements and annual report filed January 27, 2021 on Form 10-K 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 mineral resource and mineral reserve estimates
are shown on a 100% project basis.
In 2020, NOVAGOLD achieved the following milestones:
NOVAGOLD and Barrick successfully completed the 2020 drill program at Donlin Gold:
The Donlin Gold team exceeded the work plan by completing a total of 85 core holes drilled in the
proposed ACMA and Lewis pit areas encompassing approximately 23,400 meters
With extensive communication and the application of health and safety protocols, there were zero
COVID-19 cases on site and no Lost-Time Incidents
With results released to the public from 16,680 meters or over 70% of the length drilled, the
assays continue to demonstrate higher grade-thicknesses than predicted by previous modeling
1 NOVAGOLD defines a Tier One gold development project as one with a projected production life of at least 10 years, annual projected
production of at least 500,000 ounces of gold, and average projected cash costs over the production life that are in the lower half of the
industry cost curve.
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Five of the top intervals highlighted in the January 19, 2021 Donlin Gold joint media release
include2:
DC20-1937 intersected 103.88 m grading 6.1 g/t gold, starting at 390.19 m drilled depth,
including a sub-interval of 22.15 m grading 12.5 g/t, starting at 459.17 m drilled depth;
DC20-1903 intersected 8.14 m grading 45.3 g/t gold, starting at 99.39 m drilled depth,
including a sub-interval of 6.84 m grading 52.1 g/t gold, starting at 99.39 m drilled depth;
DC20-1912 intersected 37.30 m grading 7.0 g/t gold, starting at 249.70 m drilled depth,
including a sub-interval of 3.30 m grading 24.5 g/t gold, starting at 251.70 m drilled depth;
DC20-1930 intersected 39.15 m grading 4.3 g/t gold, starting at 148.85 m drilled depth,
including a sub-interval of 5.60 m grading 12.5 g/t gold, starting at 182.40 m drilled depth;
and
DC20-1895 intersected 23.80 m grading 6.5 g/t gold, starting at 218.28 m drilled depth,
including a sub-interval of 7.12 m grading 12.7 g/t gold, starting at 220.28 m drilled depth.
Remaining assay results from the 2020 drill program are expected in the coming months.
Hands-On Solidarity:
Donlin Gold worked closely with its Alaska Native partners Calista Corporation (“Calista”) and The
Kuskokwim Corporation (TKC), along with other key representatives of the communities in the
Yukon-Kuskokwim (Y-K) region, to effectively respond to needs arising from the COVID-19
pandemic, as well as in other areas such as environmental management, training and education,
and cultural initiatives in the Y-K region as featured below:
COVID-19 – Established a partnership with Bethel Community Services Foundation to support
the YK Delta COVID-19 Response Fund and Covenant House Alaska for homeless and at-risk
youth services in Bethel. Supplies were provided to 766 families and meals served to 3,700
individuals in the Elders and Youth program. Donlin Gold donated thousands of pounds of
food to shelters when the Donlin Gold project camp temporarily closed in April due to
COVID-19 and delivered food to every home in eight middle Kuskokwim villages.
Environmental – Worked with TKC, the State of Alaska and the Alaska Native Tribal Health
Consortium on an initiative to upgrade and improve health and safety standards of water and
sewer services in middle Kuskokwim area communities. Collaborated with 28 community
partners on the Donlin Gold Backhaul Hazardous Waste Removal project and worked with key
local groups to collect and remove 45,000 pounds of household hazardous materials.
Training & Education – Hosted two virtual Alaska Resource Education camps for Y-K and
Doyon students, while Donlin Gold Scholarships were awarded to students selected by Calista
and TKC to improve access to education in the region. Calista has awarded a total of 225
scholarships funded by Donlin Gold, with 158 students attending schools in Alaska and 67
going out of State, with more than 10 villages in the Y-K region represented.
2 Drill intercepts originally disclosed in the January 19, 2021 media release “Donlin Gold 2020 Q4 Drilling Program Assay Results Continue
to Exceed Modeled Projections While Partners Deliver a Safe and COVID-Free Year” https://www.novagold.com/_resources/news/2021-01-
19.pdf. Significant intervals represent drilled intervals and not necessarily true thickness of mineralization. Mineralized intervals meet or
exceed 3 meters in length above 1 g/t. A maximum of 4 meters of continuous dilution (< 1 g/t) is permitted. g/t = grams per tonne; m =
meters.
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Cultural Initiatives – Strengthened sponsorship of the First Alaskans Institute at the 2020
Elders & Youth statewide conference and the Alaska Federation of Natives (AFN) annual
convention, in addition to providing online activities and programs for youth and Elders.
A total of 80% of Donlin Gold direct hires for the 2020 drill program were Alaska Natives.
As part of Donlin Gold’s ongoing community engagement efforts, Friendship Agreements were
approved and signed by six communities (Crooked Creek, Sleetmute, Nikolai, Akiak, Napaskiak,
and Akiachak) in the project’s region. These agreements with Donlin Gold expand upon the long-
term relationships already established with these communities and address specific community
needs such as water, sewer, and landfill projects; the ice road that connects remote villages in the
Y-K region; salmon studies; and suicide prevention programs.
With key Federal and State permits in hand, Donlin Gold advanced additional State permits:
In January 2020, the Alaska Department of Natural Resources (ADNR’s) 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.
In November 2020, ADNR issued for public comment Donlin Gold’s 12 applications for water
rights authorizations for the mine site and transportation facilities.
President’s Message
A Memorable Year for All – and for Donlin Gold
This year, let’s begin my President’s Message with expressions of gratitude to our shareholders, stakeholders,
and partners. For if ever there was a year to count one’s blessings, it surely was 2020. Faced with a host of
obstacles, we overcame them all and ended the year better positioned than ever. This feat could not have
been accomplished so successfully, however, were it not for the steadfastness of NOVAGOLD’s owners,
employees, board of directors, and Donlin Gold’s employees and contractors, as well as the exemplary
collaborative engagement we enjoy with our Native Corporation partners, Calista and TKC, and Donlin Gold’s
co-owner, Barrick. From the bottom of my heart, thank you – we could not have done it without you.
Discipline, focus, and professionalism really paid off for NOVAGOLD and Donlin Gold in 2020. Despite
numerous challenges, Donlin Gold successfully completed a comprehensive drill program – the largest of its
kind in 12 years – at a time of unprecedented impediments caused by the COVID-19 pandemic. In addition to
our successes with the project, we managed to provide much needed support to the surrounding communities
in the Y-K region in Alaska. With health and safety as the top priority, everyone pulled in the same
direction. As a result, there were zero COVID-19 cases on site and no Lost-Time Incidents. We are immensely
proud of that record. Those of us working remotely did not skip a beat either. To the contrary, we endeavored
to stay connected and increased touch points with our key stakeholders, shareholders, and investors to
maintain momentum and share progress on our stated strategy of advancing up the value chain one of the
largest and highest grade known open pit gold deposits in the world, Donlin Gold, in one of the world’s safest
mining jurisdictions, Alaska.
We shall get to the significance of the excellent drill results shortly – and yes, we are overjoyed with them. That
for which we are most thankful, however, is where we are located and with whom we are partnered. As our
Chairman is accustomed to saying as an investor: It is all about location, location, location. And as one who
spent a great deal of his career running and assessing mines in many parts of the world, from the vantage
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point of a miner who’s “been there, done that”, I can tell you that he is right. We are blessed to be in Alaska. So,
let’s begin there.
Social License and Stakeholder Engagement in an Era of Pandemic
As so many mining jurisdictions are becoming riskier due to myriad forms of distress – from socio-economic
pressures to unreliable governments – we feel enormously fortunate to be located in what is, after Nevada, the
second-largest gold-producing State in a country where the rule of law is real, and to be partnered with the
Alaska Native communities.
An incredibly favorable factor that distinguishes Donlin Gold from most other mining assets in Alaska is the
fact that it is located on private land that was designated by law for mining activities five decades ago. Donlin
Gold is a party to life-of-mine agreements with Calista, which owns the subsurface mineral rights, and TKC, a
collection of ten village corporations, which owns the surface rights. Involving the local communities in many
aspects of the project is thus core to both Barrick’s and NOVAGOLD’s philosophy and culture.
The benefits – short-, medium-, and long-term – are there for all to see. Right now, this partnership is the
source of key employment opportunities, scholarships, and preferential contract considerations. But very
importantly, these agreements also include a revenue-sharing structure, established by the Alaska Native
Claims Settlement Act (ANCSA) of 1971, which resolved Alaska Native land claims and allotted 44 million acres
for land use to Alaska Native Corporations. Our long-term commitment to the region’s economic
development is exemplified by Donlin Gold’s support of TKC’s initiative to launch middle Kuskokwim energy
and infrastructure projects. These partnerships, activities and programs are illustrative of our commitment to
the sustainable and responsible development of the Donlin Gold project for the benefit of all stakeholders.
In 2020, Donlin Gold continued its multi-decade collaboration with its Native Corporation partners and, if
anything, these relationships deepened. Apart from the immediate fact that approximately 80% of Donlin Gold
direct hires for the drill program were Alaska Natives, we endeavored to be there for our partners in every way
possible. We and our partners initiated more than 320 engagement contacts with key individual stakeholders
and community organizations, significantly more than in previous years. From engagement with tribal councils
to receptions and meetings seeking partnerships, Donlin Gold was able to stay connected, virtually for the
most part, to advance key activities and projects throughout the region.
NOVAGOLD and Barrick are committed to preserving the traditional lifestyles of, and providing support to, the
local communities throughout the Y-K region. Prior to the widespread arrival of COVID-19 in Alaska, in January
2020, Pete Kaiser, 2019 Iditarod Champion and Donlin Gold-sponsored musher, won the Kuskokwim 300
regional dog mushing race – a popular regional event. Donlin Gold also sponsored four Iron Dog teams for
the annual snowmobile race in February 2020. In a partnership with TKC, the Village of Crooked Creek, and the
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. 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 facilitating increased community contact for sport, social activities, and academics outside of the COVID-
19 pandemic. At its completion in February, the ice road’s length constituted a record for the Kuskokwim: 355
miles long, from just south of Bethel north to Sleetmute.
In March 2020, as COVID-19 began to be detected in Alaska, Donlin Gold implemented health and safety
policies consistent with State of Alaska requirements and recommendations. In the second quarter of 2020,
when the drill program was put on hold following the introduction of travel restrictions, Donlin Gold worked
with Calista and TKC to provide much needed support to the Y-K communities, including the provision of food
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and supplies, and partnered on ongoing community engagement in environmental management, safety,
training, education and health initiatives.
Donlin Gold donated thousands of pounds of food to shelters when the project camp was temporarily closed
in April and delivered food to every home in eight middle Kuskokwim villages. Donlin Gold collaborated with
Aniak, a regional hub, to distribute food and supplies to residents homebound due to health issues and
quarantine requirements. Donlin Gold recognized the need in Bethel, the largest town in the region, and
supported the Bethel Community Services Foundation YK Delta COVID-19 Response Fund and the Bethel
Community Services Foundation to help vulnerable youth.
Following the introduction of enhanced health protocols and after extensive discussions with villages, tribal
and Native Corporations, the Donlin Gold camp was re-opened late in the second quarter to continue the
2020 drill program. Outreach to support communities continued with Donlin Gold partnering with the
Campfire Organization, the Association of Village Council Presidents, and the Yukon-Kuskokwim Health
Corporation to fund Elder and youth meals throughout the summer – serving 22 communities, 4,189
individuals and a total of 34,000 meals to Elders and youth in the region. Additionally, 260 boxes of fresh
produce were distributed to 56 villages.
In the fall, Donlin Gold’s commitment to the health and safety of its employees and communities was again
highlighted with the Donlin Gold Backhaul Hazardous Waste Removal Partnership – an initiative that saw 28
communities collaborate with key local groups to remove approximately 45,000 pounds of household
hazardous materials such as fluorescent tubes, lead acid batteries and electronic waste which was collected
and shipped out of the area for proper disposal. Donlin Gold is the primary funder of this significant endeavor,
which builds on the two previous events of 2019 when nearly 100,000 pounds of hazardous and electronic
waste was removed from 14 villages and Bethel on the Kuskokwim River, as well as on the initial Green Star®
Waste Backhaul Project of 2018 that engaged six middle Kuskokwim villages in removing and safely disposing
of some 20 tons of household hazardous waste. Donlin Gold is also working with TKC, the State of Alaska and
the Alaska Native Tribal Health Consortium in an initiative to both upgrade and improve the health and safety
standards of water and sewer services in middle Kuskokwim area communities.
NOVAGOLD and Barrick also recognize that access to training and education is critical for youth and young
adult students. As such, Donlin Gold Scholarships are awarded to students selected by Calista and TKC to
benefit education in the region. Calista has awarded a total of 225 current scholarships funded by Donlin Gold,
with 158 students attending schools in Alaska and 67 out of State. Donlin Gold also hosted two week-long
virtual Alaska Resource Education minerals camps for Y-K and Doyon students.
As part of Donlin Gold’s ongoing community engagement efforts, Friendship Agreements were approved and
signed by six communities (Crooked Creek, Sleetmute, Nikolai, Akiak, Napaskiak, and Akiachak) in the Y-K
region in 2020. These agreements with Donlin Gold continue to build upon the long-term relationships
established with these communities and address specific community needs such as water, sewer, and landfill
projects; the ice road that connects remote villages in the Y-K region; salmon studies; and suicide prevention
programs.
These partnerships, activities, and programs demonstrate NOVAGOLD’s, as well as Barrick’s, commitment to
sustainable and responsible development for the benefit of all stakeholders in the Y-K region. Donlin Gold also
continues to work with Calista, TKC and other key representatives in the region to respond to community
needs resulting from the COVID-19 pandemic.
Excellent Grades At Donlin Gold
The Donlin Gold 2020 drill program commenced in February and was paused temporarily in early April due to
COVID-19. Activities resumed in May following the reopening of certain aspects of the
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State’s economy by Alaska’s Governor, and after consultation with employees, contractors and regional
villages regarding COVID-19 protocols and other safety measures. In a year when many exploration drill
programs were cancelled due to the pandemic, Donlin Gold was fortunate to have top drilling professionals on
site that exceeded expectations by completing drilling ahead of schedule and under budget, including
surpassing the number of planned drill holes.
The primary objective of the 2020 drill program was to validate recently developed geologic and resource
modeling concepts. Suffice to say that we are thrilled with the results of the drilling thus far. To date, results in
both the proposed ACMA and Lewis pit areas continue to exceed modeled expectations, with higher grades
observed over narrower intervals, particularly in sedimentary rocks. Once all assay results are received and
incorporated into the model, the results are expected to drive an update of mining schedules and life of mine
business plans. As of January 2021, assays have been reported for over 70% of the planned program. Final
assay results for the 2020 drill program are expected to be reported in the coming months.
Our results are some of the best in the gold industry for a large open pit deposit. The numbers tell the story.
Here are the top ten assay results received to-date from the 2020 drill program3:
DC20-1937 intersected 103.88 m grading 6.1 g/t gold, starting at 390.19 m drilled depth, including a
sub-interval of 22.15 m grading 12.5 g/t, starting at 459.17 m drilled depth;
DC20-1871 intersected 41.91 m grading 11.6 g/t gold, starting at 30.35 m drilled depth, including sub-
intervals of 4.00 m grading 17.0 g/t, starting at 38.24 m drilled depth, and 6.48 m grading 38.8 g/t
gold, starting at 55.78 m drilled depth;
DC20-1903 intersected 8.14 m grading 45.3 g/t gold, starting at 99.39 m drilled depth, including a
sub-interval of 6.84 m grading 52.1 g/t, starting at 99.39 m drilled depth;
DC20-1877 intersected 4.17 m grading 80.6 g/t gold, starting at 123.48 m drilled depth, including a
sub-interval of 3.15 m grading 106.2 g/t, starting at 124.50 m drilled depth;
DC20-1888 intersected 6.93 m grading 43.1 g/t gold, starting at 178.58 m drilled depth, including a
sub-interval of 3.25 m grading 90.5 g/t, starting at 180.26 m drilled depth;
DC20-1912 intersected 37.30 m grading 7.0 g/t gold, starting at 249.70 m drilled depth, including a
sub-interval of 3.30 m grading 24.5 g/t, starting at 251.70 m drilled depth;
DC20-1866 intersected 45.91 m grading 5.0 g/t gold, starting at 35.39 m drilled depth, including a
sub-interval of 11.95 m grading 10.4 g/t, starting at 63.35 m drilled depth;
DC20-1878 intersected 19.77 m grading 11.3 g/t gold, starting at 48.86 m drilled depth, including a
sub-interval of 7.00 m grading 25.2 g/t, starting at 54.86 m drilled depth;
DC20-1886 intersected 33.88 m grading 6.5 g/t gold, starting at 218.20 m drilled depth, including a
sub-interval of 7.94 m grading 11.3 g/t, starting at 224.20 m drilled depth; and
DC20-1930 intersected 39.15 m grading 4.3 g/t gold, starting at 148.85 m drilled depth, including a
sub-interval of 5.60 m grading 12.5 g/t, starting at 182.40 m drilled depth.
3 DC20-1871 and DC20-1866 intercepts originally disclosed in the August 6, 2020 media release “Donlin Gold Project Provides Update on
Recent Drilling and Ongoing Community Support in Alaska Amid COVID -19 Pandemic”; DC20-1877, -1888, -1878, and -1886 intercepts
originally disclosed in the October 26, 2020 media release “Donlin Gold 2020 Q3 Update: Drilling Continues to Yield High-Grade Intercepts
and Improve Geological Modeling”; DC20-1937, -1903, -1912 and -1930 intercepts originally disclosed in the January 19, 2021 media release
“Donlin Gold 2020 Q4 Drilling Program Assay Results Continue to Exceed Model ed Projections While Partners Deliver a Safe and COVID -
Free Year”.
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Building on the outstanding work to date, and now these exciting new results, 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, safety, and community engagement.
The partners expect to integrate the drill program results into the geologic model, evaluate the timing to
update the Donlin Gold feasibility study, followed by engineering which forms the basis of an execution plan
and ultimately a construction decision. To complete the model update, additional confirmation and extension
drilling are planned in 2021, focusing on the continuity and structural controls of the higher-grade
mineralization. To minimize the risk posed by COVID-19, NOVAGOLD will continue to be guided by a set of
wide-ranging policies that are applied at every NOVAGOLD-related facility. Best practices apply, from its
offices in Salt Lake City and Vancouver to the Donlin Gold operation itself. Enhanced COVID-19 health
protocols will remain firmly in place for the foreseeable future at Donlin Gold, with the objective of protecting
the health and safety of Donlin Gold’s employees, contractors, and their families, as well as local communities.
Advancing Permits, Enhancing Value and Realizing a Vision
Donlin Gold is a rare gold project that combines the attributes of extraordinary size, a high-grade open pit
endowment, located in a mining-friendly jurisdiction – Alaska – where there is well-established tradition and
support for environmentally and socially responsible mining. NOVAGOLD also has the good fortune of having
Barrick Gold, a strong and well-established senior gold producer, as an equal joint-venture partner.
That’s a great foundation to build on. And so we have. In early 2020, our partnership was able to secure the
receipt of the Right of Way (ROW) authorization and other land leases and permits for the transportation and
fiber optic line facilities for the project. That was the latest in a growing list of Donlin Gold’s permit approvals,
including the jointly issued Federal Record of Decision (ROD) received in August 2018. Several 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.
In April 2020, the ADNR’s Division of Oil and Gas agreed to reconsider its decision on the State ROW
agreement and lease authorization for the buried natural gas pipeline. Under the reconsideration, on
September 10, 2020, the ADNR issued for additional public comment a revised Consideration of Comments
document. This document further describes how the ADNR is considering previous public input that was
solicited in the ROW review, including how cumulative effects are addressed in the decision. The comment
period on the document ended on November 9, 2020. We anticipate the ADNR will re-issue the ROW
agreement and lease authorization in the first half of 2021.
On November 30, 2020, ADNR published a public notice for comment on Donlin Gold’s 12 applications for
water rights associated with the mine site and transportation facilities. The comment period closed on
December 15, 2020 and we anticipate the ADNR will issue the final water rights authorizations in the first half
of 2021.
In 2020, the field work program related to the issuance of the Alaska Dam Safety certificates was temporarily
paused to facilitate our drilling campaign. This is a multi-year site investigation program focused on the
collection of additional geotechnical information to advance the engineering work on the tailings storage
facility and other water retention and diversion structures. We expect this work to eventually be completed as
required to secure the project’s dam safety certificate. Donlin Gold is also continuing to work with State
agencies, in coordination with its Native Corporation partners, to advance other remaining permits and
approvals needed for the project.
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Amidst all this, NOVAGOLD engaged Wood Canada Limited (“Wood,” formerly AMEC Americas Limited) to
perform a detailed review of the costs used in 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 (Donlin Gold FS), to meet the Company’s reporting requirements. Based on that
cost review, Wood determined that updating the Donlin Gold FS using 2020 costs and gold price guidance
results in no material change to the mineral resources or mineral reserves. Therefore, the Donlin Gold FS is
considered current and supportive of the scientific and technical information included herein. Wood is
currently updating all sections of the Donlin Gold FS with updated costs, economic assessment, permitting
information, and technical information related to permitting, as generated on the Donlin Gold project since
2011. NOVAGOLD intends to file the updated Technical Report on EDGAR at www.sec.gov and on SEDAR
at www.sedar.com in 2021. The updated Donlin Gold FS does not incorporate the latest Donlin Gold
optimization work on the geologic modeling concepts or other optimization work given that these
assessments are still underway.
The Right Investment Vehicle for the Era
NOVAGOLD, because of its equal ownership of the Donlin Gold project, is now recognized by savvy investors
worldwide as a “pure-play” on a generational asset that we believe could have the potential to be “The New
Carlin.” What our shareholders find appealing are not only the attributes of the deposit itself but also the
depth, the strength, and the enduring nature of the Company’s partnerships with Alaska Native Corporations
as well as Barrick Gold. These partnerships have been shaped by decades of patient and methodical value-
building that has become a hallmark of NOVAGOLD and its management team – a group that has been
working together since early 2012.
A seasoned management team and strong partnerships are required to advance a special project up the value
chain. Donlin Gold, with approximately 39,000,000 ounces of gold in measured and indicated
mineral resources grading 2.24 grams per tonne4, is indeed special. Not only because of its size but also
because of its grade, which, for an open pit, is twice the industry average5. And, importantly once again, it is
located in Alaska, a Tier One jurisdiction6.
Donlin Gold not only enjoys unique gold reserve attributes, it also offers investors incredible exploration
potential. Its gold endowment is contained within only three kilometers of an eight-kilometer mineralized belt,
itself limited to a mere five percent of the property package of the project. Donlin Gold ultimately could
command district-sized potential. In an environment of declining gold endowments and decreasing grades
coupled with fewer new discoveries, particularly in safe geo-political jurisdictions, it is not surprising that
NOVAGOLD has become a go-to investment for some of the most discerning investors in the space. Their
interest in the Company has been particularly enhanced by NOVAGOLD’s strong leverage to escalating gold
prices.
Late last year, the Saudi Public Investment Fund (PIF) reported that it invested over $130 million to become the
fifth largest shareholder in the Company. It joined a stellar group of long-term shareholders of NOVAGOLD,
4 Donlin Gold data as per the Donlin Gold FS (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.
5 2019 average grade of open pit and underground deposits with gold as primary commodity and over 1Moz in measured and indicated
resources, sourced from S&P Global Market Intelligence.
6 Tier One Jurisdictions are deemed “low risk” by the Investment Attrac tiveness Index in the Fraser Institute Annual Survey of Mining
Companies, 2019.