NOVAGOLD Reports Second Quarter 2021 Financial Results Donlin Gold 2021 Drill Program Continues to Advance as Planned Community Support Expanded to Counter the Effects of Global Pandemic Key Permits Secured and Robust Financial Position Maintained
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NOVAGOLD Reports Second Quarter 2021 Financial Results
Donlin Gold 2021 Drill Program Continues to Advance as Planned
Community Support Expanded to Counter the Effects of Global Pandemic
Key Permits Secured and Robust Financial Position Maintained
A total of 28 holes have been drilled at the Donlin Gold project (representing approximately 8,650 meters
of length drilled) out of the 64 planned for 2021 (representing a total of approximately 20,100 meters of
length to be drilled). Four drill rigs are operating. The owners expect to release assay results to the market
in the coming months.
Donlin Gold, together with its Alaska Native Corporation partners, Calista Corporation ( “Calista”) and The
Kuskokwim Corporation (“TKC”), expanded their engagement with the local communities.
With key Federal and State permits in hand, Donlin Gold continued to advance additional State permits ,
including water rights and the natural gas pipeline State Right-of-Way (“ROW”).
NOVAGOLD continues to maintain a strong treasury amounting to $107.6 million in cash and term deposits
as of May 31, 2021, and it has receivables from Newmont amounting to $75 million due in July 2021 and an
additional $25 million due in July 2023.
June 29, 2021 - Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) today released its 2021 second quarter financial results and an update on
its Tier One1 gold development project Donlin Gold (“Donlin Gold” or the “project”) , which NOVAGOLD owns
equally with Barrick Gold Corporation (“Barrick”).
Details of the financial results for the quarter ended May 31, 2021 are presented in the consolidated financial
statements and quarterly report filed June 29, 2021 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 mineral resource and mineral reserve estimates are
shown on a 100% project basis.
Second Quarter Highlights and Updates:
In order to minimize the risk posed by COVID-19, NOVAGOLD is continuing to maintain a wide-ranging
set of health and safety policies at its offices in Salt Lake City and Vancouver, and, in conjunction with
Barrick, at the Donlin Gold office in Anchorage and project site. These measures are designed to ensure
the safety and well-being of all employees, contractors, and people associated with the Company.
The Donlin Gold project camp has been re-opened safely with four drills currently operating.
A total of 28 holes (representing approximately 8,650 meters of length drilled) as of June 26, 2021,
out of the 64 planned for the 2021 program have been drilled to date (representing a total of
approximately 20,100 meters of length to be drilled). The program is expected to:
Build upon a successful 2020 drill program that produced results supporting updates to
recent geologic modeling concepts, validate mineralization continuity, and test for
extensions of high-grade zones in both intrusive (igneous) and sedimentary rocks.
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 operating costs over the production life that are in the lower half of
the industry cost curve.
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Provide necessary information to support a decision to move to the upcoming feasibility
study, subject to a formal decision by the Donlin Gold LLC Board, and initiate the
engineering work necessary to advance the project design before reaching a construction
decision.
Numerous camp improvements were completed: equipment purchased, kitchen facilities
expanded, a new recreation area furnished, electrical work upgraded, sleeper capacity increased,
camp facilities remodeled, a new warehouse added, and core logging and cutting facilities and
equipment were upgraded.
Donlin Gold, together with its Native Corporation partners Calista and TKC, carried out a wide range of
community engagement and support initiatives:
Finalized Shared Value Statements with two additional villages from the Yukon-Kuskokwim (“Y-K”)
region for a total of seven Shared Value Statements (Akiak, Sleetmute, Napaimute, Crooked Creek,
Napaskiak, Nikolai, and Tuluksak) to date. These agreements include educational, environmental,
and social initiatives to help support villages.
Held the Lower Kuskokwim School District’s annual College and Career fair where more than 42
vendors and 100 students attended the virtual event held in April 2021.
Launched a Subsistence Community Advisory Committee (“SCAC”) which will strengthen the role
of Donlin Gold in guiding subsistence activities within the Kuskokwim River drainage.
NOVAGOLD sponsored and participated in the Mining for Miracles Pie Throw, an annual fundraising event
in support of the BC Children’s Hospital Cellular and Regenerative Medicine Centre.
On May 27, 2021, the Alaska Department of Environmental Conservation (“ADEC”) Commissioner upheld
the State of Alaska’s Section 401 Certification under the Clean Water Act that had been granted to Donlin
Gold in 2018 after a thorough, diligent and transparent review by State and Federal agencies of the
proposed project development plan and its relationship with the surrounding environment. The
Commissioner’s decision was appealed in Alaska’s Superior Court on June 28, 2021, by a San Francisco-
based activist law firm, Earthjustice. Donlin Gold strongly believes that the Commissioner’s decision to
uphold the 401 Certification validates the project’s stakeholders’ commitment to advance the Donlin Gold
project in a safe and environmentally responsible manner for the benefit of all Alaskans.
President’s Message
Family and Safety First
Following a successful 2020 season with zero COVID-19 cases on site, together with a renewed and sustained
commitment to the health and safety of our workforce members and local communities, the Donlin Gold
project camp was safely re-opened in March and four drill rigs have been deployed.
Local community involvement in the project lies at the core of both Barrick’s and NOVAGOLD’s philosophy.
Approximately 70% of Donlin Gold direct hires for this year’s drill program are Alaska Natives and we are
pleased to report that for the 2021 season, Donlin Gold hired employees from 20 Y-K communities. In an area
marked by high unemployment and fewer job choices than in urban environments, the work experience and
skills training that Donlin Gold provides is highly significant and appreciated. Of equal importance, being that
we share the objective of protecting the health of all Alaskans, ahead of the camp re-opening in March, Donlin
Gold consulted with its partners Calista and TKC, as well as the home communities of Donlin Gold employees
regarding health and safety – particularly in terms of disciplined adherence to stringent COVID-19 protocols.
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Employees will again have mandatory COVID-19 testing prior to traveling to the Donlin Gold project camp
and, upon arrival, will follow social distancing and other safety protocols implemented in response to the
pandemic. Moreover, all workforce members have been required to continue following these protocols upon
return to their respective communities and are encouraged to bring Donlin Gold’s safety practices into their
home villages.
Current Drilling Continues to Build Upon the Successful 2020 Program
There are four drill rigs operating at the project site in the ACMA and Lewis deposit areas, with 28 holes drilled
as of June 26, representing approximately 47% of the planned 64-hole program. We are excited to be building
upon a successful 2020 drill program which included significant higher-grade gold intersections indicative of
the impressive nature of this deposit. Ahead of the 2021 field season, Donlin Gold completed numerous camp
improvements, such as the purchase of heavy equipment, expanded the kitchen facilities, furnished a new
recreation area, upgraded electrical work, increased sleeper capacity with sixteen new units, expanded and
remodeled camp facilities, added a large new warehouse, and upgraded core logging and cutting facilities and
equipment. After the 2021 drill season, we anticipate that, on the completion of the updated geologic model
and, subject to a formal decision by the Donlin Gold LLC Board, we will turn our attention to the upcoming
feasibility study with Barrick.
We all recognize that Donlin Gold already enjoys an incredible foundation of attributes to build upon and that,
as the project’s expected mine life may already be measured in decades, we have a great responsibility to all
stakeholders to do things right from the start and not cut any corners. With approximately 39 million ounces
of gold in measured and indicated mineral resources grading 2.24 grams per tonne2, Donlin Gold’s scale and
grade, at twice the industry average3, are simply exceptional. Donlin Gold is indeed unique in the combination
of its attributes, particularly given the scarcity of new major gold discoveries over the past decade and the safe
jurisdiction in which it is located – Alaska, a Tier One jurisdiction4. While we are focused on the drill program,
permitting, and modeling work, we have not lost sight of one of the project’s most important attributes:
Donlin Gold’s truly exceptional exploration potential. It is notable that the project’s gold endowment is
contained within only three kilometers of an eight-kilometer mineralized belt, and that even this only
represents five percent of the total property. And let’s not forget that, in all the past drill programs at Donlin
Gold, we have encountered among the best assay results for an open-pit gold project in the industry.
In 2020, NOVAGOLD engaged Wood Canada Limited (“Wood”) to perform a review of the costs and other
assumptions used in the Donlin Gold 2011 Technical Report (as defined below) to meet the Company’s
reporting requirements. Based on that cost review, Wood determined that updating the 2011 Technical Report
using 2020 costs and new gold price guidance results in no material change to the mineral resources or
mineral reserves. See below in “NI 43-101 Technical Report” for additional detail regarding the “Donlin Gold
Project, Alaska, USA, NI 43-101 Technical Report”, with an effective date of June 1, 2021 (“2021 Technical
Report”).
Note that the 2021 Technical Report utilizes the existing mineral resources model and the same technical
information from the previous Donlin Gold 2011 Technical Report with 2020 costs and adjusted gold price and
2 Donlin Gold data as per the 2011 Technical Report (as defined herein), with content updated as discussed under the heading “NI 43 -101
Technical Report”. 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 accorda nce with NI
43-101.
3 2020 average grade of open pit and underground deposits with gold as primary commodity and over 1 Moz in measured and indicated
resources is 1.12 g/t, sourced from S&P Global Market Intelligence.
4 NOVAGOLD considers Tier One jurisdictions to be any in the top 10 rank by the Investm ent Attractiveness Index in the Fraser Institute
Annual Survey of Mining Companies, 2020. Alaska is ranked number 5.
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is separate from the upcoming feasibility study that is expected to commence, subject to Donlin Gold LLC
Board approval, once we have completed the 2021 drill program and geologic model update incorporating all
the latest drill data, optimization work and trade off studies since 2011.
Deposits that boast Donlin Gold’s special combination of incredible attributes are unusual and highly coveted.
And not just by investors. Given recent examples of governments around the world either physically or,
through legislation or other means, effectively seizing assets, we are grateful that Donlin Gold is located in
Alaska where there is a time-tested culture of respect for responsible and sustainable mine development and
the rule of law. We are confident that NOVAGOLD in partnership with Barrick, Calista and TKC, will advance
this unique project up the value chain in a technically advanced, safe, environmentally sound, and socially
responsible manner.
Community Partnership is Integral to our Culture
As a Company, we aspire to make a positive difference in the Alaskan communities in the Y-K region. That’s
why we give community members a chance to be heard. Through that exchange of ideas and approaches, we
develop lasting solutions to improve the way of life in the communities. For example, in March Donlin Gold,
together with Calista and TKC, hosted a water rights information call with interested tribes in response to a
request for additional engagement on the topic, which is a regular practice for Donlin Gold. A half-dozen
tribes participated. Donlin Gold is fortunate to enjoy deep-rooted partnerships with Calista and TKC, owners of
the mineral and surface rights, respectively. The project’s location on private land, specially designated for
mining activities, as enshrined in the 1971 Alaska Native Claims Settlement Act (“ANCSA”), represents a key
attribute that distinguishes Donlin Gold from most other mining assets. Our commitment to a meaningful
consultation with the local communities throughout the period of project permitting and development has
been affirmed over decades. Donlin Gold has made progress in formalizing its community relationships with
Shared Value Statements to date covering seven villages from the Y-K region (Akiak, Sleetmute, Napaimute,
Crooked Creek, Napaskiak, Nikolai, and Tuluksak). These agreements include educational, environmental, and
social initiatives to help provide support for these villages, most of them remote, particularly at a time of need.
In March 2021, the Thomas Lodge in Crooked Creek suffered a major fire. Substantial damage occurred and
Donlin Gold aided with labor and materials to get the building back in order by May. The Thomas Lodge is the
only lodging facility in the village and in proximity to the project site. NOVAGOLD and Donlin Gold provided
financial contributions to help fund repairs for this vital community asset prior to the busy summer season.
Access to training and education are two of the important areas in which we collaborate with our Native
Corporation partners. The Lower Kuskokwim School District’s annual College and Career fair was held virtually
in April, with a record number of vendors and strong student participation. Donlin Gold also sponsored the
annual Best in the West Competition at the Kuskokwim Campus of the University of Alaska to encourage and
support the leaders of tomorrow.
Furthermore, the first sub-committee of the Donlin Advisory Technical Review and Oversight Committee
(“DATROC”) was officially launched in early May. The DATROC’s objective is to establish and maintain a well-
defined process for communication, dialogue and problem-solving needed among the partners. Calista, TKC,
and Donlin Gold initiated planning to establish the DATROC in 2018. The SCAC, a sub-committee under the
DATROC, will receive and distribute information on Donlin Gold’s plans, operations, and monitoring activities.
It will also communicate information regarding local subsistence activities and traditional knowledge as it
relates to information shared by Donlin Gold. Lastly, it will serve as a forum for stakeholders to discuss issues
of concern related to the potential impact of Donlin Gold’s plans, operations or monitoring activities on
subsistence activities, wildlife or habitat, as well as assist them in developing and updating plans for land and
waters affected by the project. As part of the new SCAC, the “Let’s Talk Donlin” website – hosted by Calista,
TKC, and Donlin Gold – was launched as a community information hub that also accepts
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feedback on community issues and concerns. These partnerships, activities, and programs demonstrate
NOVAGOLD’s and Barrick’s longstanding and deep-rooted commitment to sustainable and responsible
development for the benefit of all stakeholders in the Y-K region.
NOVAGOLD also sponsored and participated in the Mining for Miracles Pie Throw in May, a fundraising event
in support of the BC Children’s Hospital located in Vancouver, British Columbia. Each year, senior leaders from
across the industry are paired up in a friendly fundraising competition and whoever raises the most money
earns the right to toss a pie at the other person. I was happy to participate in this event and help raise funds
for the BC Children’s Hospital Cellular and Regenerative Medicine Centre.
Advancing Permits Diligently and Responsibly
During the second quarter, Donlin Gold, together with Calista and TKC, continued to provide support to State
agencies in their efforts to advance remaining permits and approvals needed for the project. Several key
permit decisions were made in support of the project in the quarter. The ADEC Commissioner released his
decision in late May to uphold the Donlin Gold 401 Certification that was granted in 2018 after a lengthy,
thorough, and diligent review of the proposed project development plan and its relationship with the
surrounding environment by State and Federal agencies. The 401 Certification was formally appealed to the
ADEC Commissioner in June 2020, and the ADEC Commissioner referred the appeal to an Administrative Law
Judge (ALJ) for review. The ALJ opinion was issued on April 12, 2021, ahead of the ADEC Commissioner’s
decision to uphold the 401 Certification of the Federal Clean Water Act Section 404 permit. The
Commissioner’s decision to uphold the 401 Certification, as expected, was appealed in Alaska’s Superior Court
on June 28, 2021, by a San Francisco-based activist law firm, Earthjustice.
We believe the ADEC Commissioner’s decision to uphold the 401 Certification for the Donlin Gold project was
the right outcome. Donlin Gold strongly believes that the Commissioner’s decision to uphold the 401
Certification validates the project stakeholders’ commitment to advance the Donlin Gold project in a safe and
environmentally responsible manner for the benefit of all Alaskans. The scientific work done to date on the
401 Certification, in parallel with the continuing collection of data and analysis, will be verified through
extensive, open and transparent monitoring as required by State permits. Simply put, we will not operate the
Donlin Gold project without demonstrated compliance with the State’s water quality standards. Throughout
the multi-year permitting process, Donlin Gold engaged with all relevant parties to answer their questions and
address their concerns. We look forward to continuing that practice.
The ADNR published a public notice for comment on Donlin Gold’s 12 applications for water rights associated
with the mine site and transportation facilities. This notice for comment closed on December 15, 2020. Water
rights encompass local surface water sources and groundwater to be used for process water, dust control, fire
protection, and potable water. In March 2021, the ADNR introduced a second two-week public notice period,
which closed on March 26, 2021. The ADNR is expected to issue final decisions granting the water rights
applications in 2021.
In April 2020, the ADNR 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, ADNR issued a revised
Consideration of Comments document for additional public review on September 10, 2020. This document
describes how the ADNR considered public input that was solicited in the ROW review, including how
cumulative effects are addressed in the decision. The comment period on that document ended in November
2020. The ADNR is expected to re-issue the ROW agreement and lease authorization in 2021. We look forward
to continuing our constructive engagement with all the appropriate Federal and State agencies in Alaska.
Continual shareholder engagement has long been a hallmark of NOVAGOLD’s approach to aligning company
strategy with the input from our shareholder base. During the 2021 proxy season, NOVAGOLD placed calls to
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shareholders holding more than 90% of the Company’s issued and outstanding common shares.
Approximately 72% of the Company’s issued and outstanding shares entitled to vote were represented at the
Annual and Special Meeting of Shareholders held virtually on May 12. All proposals were approved, and all 10
director nominees re-elected.
NOVAGOLD’s strong financial position of approximately $108 million in cash and term deposits as of May 31,
2021, will soon be enhanced by an additional $75 million to be received from Newmont in July, resulting from
the 2018 sale of our 50% interest in the Galore Creek project. We expect our existing financial resources and
future incoming payments to be sufficient for NOVAGOLD to carry out its business without resorting to raising
more capital until a construction decision is made.
For NOVAGOLD, the word “partnership” also implies a long-term, trust-based relationship with its joint-
venture partner, Barrick. Barrick’s management team has been responsive and engaged in the project for as
long as they have been involved, and NOVAGOLD is fortunate to have an experienced partner with whom to
work alongside as the Donlin Gold project builds momentum.
I wish to thank the project teams at NOVAGOLD, Donlin Gold, and Barrick for their hard work, professionalism,
expertise, and perseverance in both safely and effectively meeting our goals on all fronts as we work to
overcome the numerous challenges of the global pandemic. We also extend our sincere appreciation to the
various State agencies for their hard work and professionalism throughout the permitting activities for the
Donlin Gold project.
I would also like to express my deep gratitude to our Native Corporation partners, Calista and TKC, for their
longstanding support and unwavering commitment to our shared vision of advancing the Donlin Gold project
– one of the largest, highest-grade, and most prospective open-pit gold deposits in the world.
Once again, I express genuine gratefulness to my colleagues on the NOVAGOLD Board for their unwavering
support and commitment to upholding the best social, environmental, and governance practices. I truly enjoy
serving with all of you.
NOVAGOLD is thankful for the dedication, engagement, knowledge sharing, and encouragement of our
shareholders – many of whom have been holders for a decade or more. We are appreciative and humbled by
the trust you put in our team, and we take this responsibility very seriously. NOVAGOLD remains focused on
maximizing returns for its shareholders and stakeholders alike in a measured, safe, and socially responsible
manner. I wish you all the best of health.
Sincerely,
Gregory A. Lang
President & CEO
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Financial Results
in thousands of U.S. dollars, except for per share amounts
Three months
ended
May 31, 2021
$
Three months
ended
May 31, 2020
$
Six months
ended
May 31, 2021
$
Six months
ended
May 31, 2020
$
General and administrative expense (1) 4,992 4,387 10,321 9,101
Share of losses – Donlin Gold 4,198 3,700 6,166 5,268
Total operating expenses 9,190 8,087 16,487 14,369
Loss from operations (9,190) (8,087) (16,487) (14,369)
Interest expense on promissory note (1,480) (1,400) (2,914) (3,160)
Accretion of notes receivable 854 824 1,708 1,648
Other income (705) 1,694 (784) 2,581
Income tax expense (264) (528)
Net loss (10,521) (7,233) (18,477) (13,828)
Loss per share, basic and diluted (0.03) (0.02) (0.06) (0.04)
At At
May 31, 2021
$
Nov 30, 2020
$
Cash and term deposits 107,587 121,906
Total assets 213,296 224,441
Total liabilities 115,168 113,714
(1) Includes share-based compensation expense of $2,095 and $1,715 in the second quarter of 2021 and 2020, respectively, and $4,137
and $3,476 in the first six months of 2021 and 2020, respectively.
For the second quarter ended May 31, 2021, NOVAGOLD’s share of Donlin Gold losses increased from
$3.7 million in 2020 to $4.2 million in 2021. In 2020, Donlin Gold LLC temporarily paused the drill program for
April through mid-May as a precautionary COVID measure.
General and administrative expense increased from $4.4 million in 2020 to $5.0 million in 2021 primarily due
to higher share-based compensation and legal costs.
In the first six months of 2021, total cash, cash equivalents and term deposits decreased by $14.3 million of
which $6.3 million was used in operating activities for administrative costs and working capital changes,
$8.1 million was used to fund Donlin Gold and $0.7 million related to withholding taxes paid on vested
performance share units (PSUs). Effects of exchange rate changes increased cash by $0.8 million.
For the six-month period in 2021, net cash used in operating activities of continuing operations increased by
$0.9 million, primarily due to lower interest income and higher legal costs, partially offset by changes in
working capital. Net cash used in investing activities included a $1.2 million increase in Donlin Gold funding
due to timing of the 2021 drill program. Term deposits decreased by $5.2 million, with the proceeds deposited
in interest-bearing savings accounts. Net cash used in financing activities related to withholding taxes paid on
vested performance share units.
As of May 31, 2021, we had cash and cash equivalents of $51.8 million and term deposits of $55.8 million. The
term deposits are denominated in U.S. or Canadian dollars and are held at Canadian chartered banks. In July
2021, we expect to receive $75 million from the first note receivable from Newmont in relation to the 2018
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sale of our 50% interest in the Galore Creek project. Additional capital will be necessary if a decision to
commence engineering and construction is reached for the Donlin Gold project.
NI 43-101 Technical Report
In 2020, the Company retained Wood Canada Limited (“Wood”) to update content in its previously filed
“Donlin Creek Gold Project, Alaska, USA, NI 43-101 Technical Report on the Second Updated Feasibility Study,”
effective November 18, 2011, and amended January 20, 2012 (“2011 Technical Report”). The 2021 Technical
Report is an updated summary of the results of the 2011 Technical Report in the form of a National Instrument
(NI) 43-101 technical report for the Donlin Gold project in Alaska, USA, and is titled “Donlin Gold Project,
Alaska, USA, NI 43-101 Technical Report”, with an effective date of June 1, 2021. Wood completed an exercise
to verify which content in the 2011 Technical Report remains current, and what was required to update the
report content with the latest information. Updated content includes operating costs, capital costs, tax rates,
long term gold price, and the economic analysis. Additionally, work done on the property since 2011 with
respect to exploration, drilling, permitting, and minor mine design changes as a result of recent permitting
activities are summarized in the 2021 Technical Report. A data verification exercise was completed by each
Wood Qualified Person (“QP”) co-authoring the report. This included a September 2020 site visit by two of the
report QPs; review of the geologic data, geologic model, and resource model; review of metallurgical test
work; review of designs for mining, processing, and infrastructure, including minor design updates; update of
capital and operating cost estimates utilizing a combination of cost indices and vendor quotations; and an
updated economic analysis.
The Wood review exercise determined that the report updating exercise resulted in no material change to the
Mineral Resources or Mineral Reserves, so the Company will be voluntarily filing the 2021 Technical Report on
System for Electronic Document Analysis and Retrieval (SEDAR) to update the scientific and technical
information on the property and to support NOVAGOLD’s disclosure on the Donlin Gold project.
Wood reviewed the geologic and resource models that supported the 2011 Technical Report, including
comparing them to data from recent drilling programs, and determined that they continue to be adequate
and suitable to be used for a Mineral Resource estimation. Using updated cost inputs from the first calendar
quarter of 2020, a gold price of $1,500 per ounce, and the geologic and resource models utilized in support of
the 2011 Technical Report, the contents within an updated optimized pit shell did not show a material change
to the Mineral Resources stated in the 2011 Technical Report. Therefore, the Mineral Resources are
considered current and are unchanged. They continue to have an effective date of July 11, 2011.
Similarly, using updated cost inputs, a gold price of $1,200 per ounce, and the geologic and resource models
utilized in support of the 2011 Technical Report with appropriate modifying factors applied for Mineral
Reserve estimation, the previous Mineral Reserve ultimate pit was contained within an updated optimized pit
shell. Therefore, the Mineral Reserves remain current and are unchanged. Because the Mineral Reserves are
supported by an updated economic analysis they have an effective date of April 27, 2021.
Outside of verifying the Mineral Resource and Mineral Reserve estimates, the primary efforts in the 2021
Technical Report were financial and permitting updates. This includes updates to estimated capital costs,
operating costs, reclamation and closure costs, royalties, taxes, and economic analysis, as well as current status
of the permits.
Updated capital costs are based on first calendar quarter 2020 pricing (cost indices and current commodity
pricing and equipment quotes) applied to the engineering designs and material take-offs from the 2011
Technical Report, except for minor changes made during permitting in the operations water treatment plant
and the natural gas pipeline.