NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) today released its 2021 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, 2021 are presented in the consolidated financial
statements and annual report on Form 10-K filed January 26, 2022
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 percent project basis.
In 2021, NOVAGOLD achieved the following
milestones:
- NOVAGOLD and Barrick
successfully completed the 2021 drilling at Donlin Gold:
- 79 core holes,
upsized from the original work plan, were drilled in the ACMA and
Lewis pit areas. The total drill program encompassed 24,264
meters.
- With extensive
communication and the application of health and safety protocols,
COVID-19 cases at site were minimal and there were no Lost-Time
Incidents.
- To date, Donlin Gold
has reported assays for 36 complete and 22 partial holes from the
2021 drill program, encompassing approximately 65 percent or 15,700
meters of length drilled. Assays continue to support the global
resource estimate, recent modelling concepts, and strategic mine
planning work.
- Donlin Gold strives
to aid local communities with support and resources, particularly
when health and safety are of concern, along with other areas, such
as environmental management, training and education, as well as
cultural initiatives in the Yukon-Kuskokwim (Y-K) region.
Specifically, Donlin Gold worked with its Alaska Native partners,
Calista Corporation (“Calista”) and The Kuskokwim Corporation
(TKC), as well as other key representatives of Y-K communities to:
-
Sponsor the Calricaraq team from the Yukon-Kuskokwim Health
Corporation to travel to area villages to support residents and
families who have lost loved ones to suicide – a heightened
challenge in remote villages, especially during the COVID-19
pandemic.
-
Partner with KSKO Radio to purchase hand-held radios for five
middle Kuskokwim villages. This initiative expands the reach of
public radio to communities where internet connectivity is
lacking.
-
Enter into a sponsorship agreement with the Alaska School
Activities Association to underwrite statewide sports.
- With key Federal and
State permits in hand, Donlin Gold advanced additional State
permits:
- In
November 2021, the ADF&G issued two Special Area Permits
required for pipeline facilities located within the Susitna Flats
State Game Refuge.
- In
December 2021, the ADEC approved a third extension of the air
quality permit to June 30, 2023.
President’s Message
Donlin Gold: The Right Project, The Right Partners, The
Right Place
As we start a new year, we can reflect on 2021 as a year of
important achievements for the Donlin Gold project. Despite the
formidable challenges caused by a global pandemic that continues to
affect our daily lives, we reached and exceeded several milestones
as we advanced Donlin Gold up the value chain. Our drill campaign
was successful not only because of the strong drill results, but
also because we managed to conduct our business with the utmost
attention to the health and safety of our employees, their
families, our contractors, and visitors as well as members of the
communities in which we operate. Donlin Gold delivered many
tremendous benefits to many people.
To further solidify our understanding of the
structural controls on mineralization, a decision was made to
expand the parameters of the 2021 program mid-year. The ability to
complete this expanded program within the 2021 drill season was
facilitated by our efficient and effective onsite team.
The original 2021 drill program plan was expanded
by 13 drill holes to gather more closely spaced data to assess the
dominant controls and orientations of gold mineralization. This
infill program has been instrumental in supporting our updated ore
domaining approach and will be expanded in 2022. Overall, the 2021
drill program was designed to complete the work necessary to
validate and increase confidence in recent geologic modelling
concepts to support future feasibility work. The drill program
included confirmation and extension drilling that focused on
further testing of orebody continuity and structural controls, as
well as data collection for geotechnical and geometallurgical
purposes. A total of 79 drill holes totaling approximately 24,264
meters were completed in both the ACMA and Lewis deposit areas.
The assay results released to date have returned significant
high-grade intercepts. They continue to support the global resource
estimate, recent modelling concepts and strategic mine planning
work. Recent top intervals include 57.25 m grading 6.87 g/t gold
starting at 270.35 m drilled depth, including a sub-interval of
4.05 m grading 18.13 g/t, starting at 288.95 m drilled depth
(DC21-1976); and 19.15 m grading 12.57 g/t gold starting at
173.19 m drilled depth, including a sub-interval of 12.15 m grading
17.28 g/t, starting at 179.19 m drilled depth (DC21-1970), as per
the December 1, 2021 Donlin Gold joint media release2, final
results from the 2021 drill program are expected to be disclosed in
the coming months.
Largest Planned Budget in 2022 for Donlin Gold in Over a
Decade
In September 2021, the combined executive team from
NOVAGOLD and Barrick conducted management review meetings with
Donlin Gold LLC in Alaska. The objective was to chart a course
toward advancing the project up the value chain. As a result, the
Donlin Gold LLC board approved additional funding in 2021 to
conduct specific studies and increase staffing in preparation for
the 2022 work program. In addition, senior executives met with
local stakeholders as well as senior Alaska, Federal, and State
government officials who expressed their continued strong support
for the project. With a progression plan in place, the necessary
groundwork was laid to prepare for a feasibility study update,
subject to Donlin Gold LLC board approval.
In 2022, the proposed overall budget for the Donlin Gold LLC
(100%) is set at $60 million (of which NOVAGOLD’s portion is
50 percent). It is the largest project budget in more than a
decade and is designed to: 1) update geologic modelling and
interpretation work for an updated resource model and engineering
activities for use in an updated project feasibility study; 2)
undertake approximately 34,000 meters of planned technical and
in-pit and below-pit exploration drilling; 3) support fieldwork and
permitting for the Alaska Dam Safety Certifications; 4) support
environmental activities; and 5) support community and
external affairs efforts. Tremendous work by all was undertaken to
plan the path forward for the Donlin Gold project, and we look
forward to the next phase with enormous enthusiasm.
Maintaining Stringent Health & Safety
Protocols
NOVAGOLD is strongly committed to the health, safety, and
well-being of its employees and their families as well as
contractors, visitors, and members of the multiple communities
where we operate. Since the start of the pandemic, we have
implemented strict and rigorous health and safety protocols
designed to mitigate the spread of COVID-19 cases within our entire
organization.
During our 2021 drill season, out of approximately 171,310 hours
worked, we recorded four cases of COVID-19 at the Donlin Gold
project site. The affected individuals fully recovered and
ultimately returned to work. Our procedures were especially
important at the time when COVID-19 cases began to rise in Alaska.
Credit must go to all our dedicated partners, in particular Calista
and TKC, as well as other Tribal groups in the Y-K region who share
the objective of protecting health and safety.
Critical to Responsible Resource
Development in Alaska, ANCSA Celebrates 50 Years
The Alaska Native Claims Settlement Act (ANCSA) of 1971
constituted a new approach in U.S. federal policy toward Native
people. The creation of ANCSA extinguished aboriginal land title in
Alaska. It divided the State into 12 regions and mandated the
creation of 12 private, for-profit Alaska Native regional
corporations and more than 200 private, for-profit Alaska Native
village corporations (ANCs). Through ANCSA, the Federal government
transferred 44 million acres, and funds to compensate for land
taken, to corporate ownership by Alaska Native shareholders under
Alaska Native regional and village corporations defined by common
heritage and shared interests of the indigenous people within each
geographic area.
The 50th anniversary of ANCSA recognizes the profound
difference, over the past half century, that ANCSA has made in
creating the first socially responsible, for-profit corporations
tasked with promoting social, cultural, and economic advancement of
Alaska Native shareholders, their descendants and communities, and
all of Alaska, in perpetuity. This important milestone is also an
opportune time to celebrate Donlin Gold’s Alaska Native corporation
partners and the many Calista and TKC Shareholders who have worked
at or are currently working at Donlin Gold.
In September 2021, the Board of Directors of the ANCSA Regional
Association – an association of the 12 Alaska Native Claims
Settlement Act Regional corporations – unanimously passed a
resolution in support of the Donlin Gold project. While some of the
obvious benefits of the Donlin Gold project will be to create jobs,
education, and training opportunities for Calista and TKC
shareholders and their families, the resolution also acknowledges
the economic benefit to all Alaska Native Corporation shareholders.
It highlights that these gains will not just benefit the Y-K region
but, pursuant to provisions under ANCSA Section 7(i) and 7(j),
“distributions from the Donlin Gold project will benefit the
shareholders and families of the twelve ANCSA regional corporations
and more than 200 village corporations throughout the State of
Alaska.”3.
“The early Y-K region leaders who founded Calista chose the
Donlin Creek area lands under ANCSA so that future generations of
Alaska Native shareholders would own the land and use their
influence to protect water, fish, and the subsistence way of life
while sustainably developing resources – all for the benefit of
additional future generations of Alaska Natives. Strict
environmental oversight is the top priority of the Donlin Gold
project and is the legacy of the first Alaska Native leaders who
founded Calista and chose the Donlin Creek lands for their
resource-development potential”3.
As representatives of key stakeholders in the State, the support
of the ANCSA Regional Association is greatly appreciated.
NOVAGOLD and Barrick are committed to preserving the traditional
lifestyles of, and providing support to, the Y-K communities, as
well as the sustainable and responsible development of the Donlin
Gold project for the benefit of all stakeholders.
Technical Execution and Permitting with a Focus on
Getting the Details Right
As reported in the third quarter, 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. This update resulted in a
report titled “NI 43-101 Technical Report on the Donlin Gold
Project, Alaska, USA” with an effective date of June 1, 2021 (the
“2021 Technical Report”) and was voluntarily filed on August 31,
2021. The Company is a registrant with the SEC and is reporting its
exploration results, Mineral Resources, and Mineral Reserves in
accordance with Subpart 229.1300 of Regulation S-K – Disclosure by
Registrants Engaged in Mining Operations (“S-K 1300”) as of
November 30, 2021. While the S-K 1300 rules are similar to National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI
43-101”) rules in Canada, they are not identical and therefore two
reports have been produced for the Donlin Gold project. The Company
requested that Wood prepare a Technical Report Summary of the
Donlin Gold project, Alaska, USA using the standards of S-K 1300
and it is titled “S-K 1300 Technical Report Summary on the Donlin
Gold Project, Alaska, USA” (“S-K 1300 Report”), current as of
November 30, 2021. Wood incorporated 2020 costs and new gold price
guidance to meet the Company’s reporting requirements. The
resultant 2021 Technical Report and S-K 1300 Report showed no
material change to the previously reported mineral resources or
mineral reserves.
In late 2021, the Donlin Gold project was successful in securing
a third extension of the air quality permit issued by the State of
Alaska. In addition, three permits held by Donlin Gold came under
appeal. Specifically, the State’s Clean Water Act (CWA) Section 401
certification, the 12 water rights permits, and the State
Right-of-Way (ROW) agreement for the natural gas pipeline. All the
permits remain in effect during the appeal process.
Consistent Engagement with Stakeholders
We are truly fortunate to have long-term Alaska Native partners
in the Y-K region. The Donlin Gold project is unlike most other
mining assets in Alaska, or indeed, globally. The reason lies in
its location on private land that was designated for mining
activities five decades ago. Alaska Native Elders realized that the
land and resources at Donlin Gold should benefit the Y-K region.
Donlin Gold is a party to life-of-mine and surface use agreements
with Calista, which owns the subsurface mineral rights and some
surface rights, and TKC, which owns the surface rights. During
the 2021 drill program season, 70 percent of Donlin Gold direct
hires were Alaska Natives from 20 Y-K communities. With each year
that passes, the parties work more and more closely
together.
Donlin Gold sponsored the Calricaraq (“to practice
good health”) team from the Yukon Kuskokwim Health Corporation to
travel to area villages to support residents and families who have
lost loved ones to suicide – a heightened challenge in remote
villages, especially during the COVID-19 pandemic. This program
helps communities deal with generational trauma and find healthy
ways to grieve.
In April, Donlin Gold was the primary sponsor for the Lower
Kuskokwim School District’s annual College and Career fair – a
virtual event which more than 42 vendors and 100 students attended.
In the fall, Donlin Gold entered into a sponsorship agreement with
Alaska School Activities Association to underwrite statewide
sports, music programs, and other activities in the Y-K region and
across Alaska.
In March 2021, the Thomas Lodge in Crooked Creek
near the project site suffered a major fire. The Company provided
support to repair the damage caused by the fire. The Thomas Lodge
is the only lodging facility in the village and in proximity to the
project site.
Donlin Gold partnered with KSKO Radio to purchase
hand-held radios for five middle Kuskokwim villages. This
initiative expands the reach of public radio to communities where
internet connectivity is lacking. Every home will now have an
information source for important updates from the Y-K region,
including local news and weather updates.
Donlin Gold is a sponsor of the RurAL CAP Elder Mentor Program
that connects youth with Elders in Alaska to share their values and
knowledge with younger generations and support academic
engagement and school readiness statewide.
Donlin Gold’s environment, health and safety
commitment is embodied in its support of the 2021 Clean-up Green-up
program that ran throughout the summer and reached a record 50-plus
Tribes and municipalities who participated in the event. Donlin
Gold held the fourth and most successful “In It For The Long Haul”
backhaul project last summer that removed approximately 180,000
pounds of hazardous and electronic waste from 26 villages
throughout the Y-K region. Over the last five years, along with
community and Tribal partners, nearly 400,000 pounds of waste were
collected and removed that would otherwise end up in landfills, in
waterways, or in other areas that could be harmful to local
communities.
While many initiatives are rightfully focused on
the Donlin Gold project and the greater Y-K region and State of
Alaska, NOVAGOLD actively supports organizations in its local
communities and in Alaska. In May, NOVAGOLD sponsored and
participated in the Mining for Miracles Pie Throw, an annual
fundraising event in support of the British Columbia (“BC”)
Children’s Hospital. As CEO, I was happy to participate in this
event and help raise funds for the hospital charity. In 2021,
NOVAGOLD was recognized for its outstanding contribution to the
Lotus Light COVID-19 Community Caring campaign which helped
distribute over 1.25 million pounds of hand sanitizers and wipes to
thousands of organizations in BC, Ontario and overseas, as well as
its financial support of the Lotus Light Emergency Kitchen,
providing care packages, disposable masks, and weekly hot meals to
Vancouver’s downtown eastside impoverished community. In December,
the Company was again a significant co-sponsor of the Homes for the
Holidays fundraising event for Kids Help Phone – an initiative that
offers free, 24/7 e-mental health services to young people in
Canada.
In January 2022, NOVAGOLD established the NOVAGOLD
Mining and Geological Engineering Scholarship at the University of
Alaska (at UA Fairbanks and UA Anchorage) to help support and
encourage undergraduate students to seek bachelor’s degrees in
Mining or Geological Engineering, with a focus on supporting
underrepresented students. This scholarship is one way NOVAGOLD is
taking action to foster diversity.
Leverage in a Place where You Can Keep the
Rewards
The NOVAGOLD story is refreshingly straightforward with an
established senior partner in Barrick, advancing what we view as
one of the industry’s best development opportunities, Donlin Gold,
in a great jurisdiction, Alaska.
With approximately 39,000,000 ounces of gold in measured
and indicated mineral resources grading 2.24 grams
per tonne4 (twice the industry average for an open-pit
project5), Donlin Gold is a unique pure gold play. Already
considered one of the industry’s top open-pit high-grade deposits
with a mine life measured in decades – and positioning itself to be
one of the world's largest new gold mines – among Donlin Gold’s key
differentiators is its safe location on private land owned by
Alaska Native Corporations in Alaska, a Tier One jurisdiction6
where the rule of law is respected. Clean, simple, stable leverage
in a place where one can keep the rewards of that leverage.
Donlin Gold is also blessed with enormous exploration upside
potential. Its current mineral reserves and mineral resources are
contained within only three kilometers of an
eight-kilometer mineralized belt – itself representing a mere five
percent of the property package. In an environment characterized by
few new discoveries greater than five million ounces, decreasing
average gold grades, and few late-stage projects of scale,
particularly in safe geo-political jurisdictions, we believe that
Donlin Gold is truly “best in breed”.
That is why, with its 50 percent ownership in Donlin Gold,
NOVAGOLD stands out as a cornerstone investment for some of the
most knowledgeable investors in the sector. We are grateful to
have a group of long-term shareholders who understand the rare pure
gold play opportunity that NOVAGOLD represents, including Paulson
& Co., Fidelity Investments, First Eagle, EXOR, BlackRock,
VanEck, The Saudi Public Investment Fund, and The Vanguard Group,
among others.
Prudent Fiscal Management
For the past decade, NOVAGOLD has been disciplined about its
committed stewardship of fiduciary responsibilities toward
shareholders. The Company has been well-financed and hasn’t needed
to fundraise in the markets since it last raised equity in January
2012. The intent was then, as it is now, to ensure that NOVAGOLD is
well-financed to be advanced up the value chain. The Company’s
strong financial position of $169 million in cash and term deposits
as of November 30, 2021, emanates from this well-executed strategy
aimed at enhancing the value of Donlin Gold for our shareholders
with minimal share dilution.
In July 2021, the Company received $75 million from Newmont in
connection with the sale of NOVAGOLD’s 50 percent interest in
the Galore Creek project in British Columbia. NOVAGOLD received
$100 million upon closing, another $75 million July 2021, and
another $25 million is due in July 2023. Total consideration for
the transaction is up to $275 million, with an additional payment
of $75 million contingent upon the owners of Galore Creek making a
construction decision.
A patient, methodical, and value-building approach – together
with strength in partnerships – have been a hallmark of NOVAGOLD
and its management, a group that has been working together as a
cohesive team for the past decade. Looking back on the major
achievements and milestones of 2021, I wish to thank the
experienced team of professionals at NOVAGOLD, Barrick,
and Donlin Gold – as well as the drilling contractor teams and
other support service contractors – for their steadfast commitment
to safety at the Donlin Gold project while faced with the continued
and ever-shifting challenge that COVID-19 presents to us all. At
the local, regional, and national level, the close and mutual
support from our Native Corporation partners – Calista and TKC –
continues to reinforce and guide responsible project development
and address the needs of the landowners.
I appreciate the dedication of my colleagues on
the NOVAGOLD Board for their enthusiastic support,
energized engagement, steadfast commitment to best governance
practices, and the desire to constantly improve and refine our
approaches with the goal of improving outcomes. It is a pleasure to
serve alongside you. My gratitude also goes to the
various State agencies for their diligent and professional work
and adherence to well-established regulatory
procedures.
Despite travel restrictions and the inability to meet
face-to-face for most of the year, NOVAGOLD not only retained its
largest shareholders, but many increased their shareholdings in the
last quarter. We are humbled by the trust you have placed in us and
grateful for your encouragement and willingness to engage as the
teams work together to enhance the value of the Donlin Gold
project.
While 2021 was an exceptional year and represents yet another
positive turning point for NOVAGOLD and for the Donlin Gold
project, 2022 offers even greater milestones with the largest
project budget in more than a decade and a path forward as the
owners approach the launch of an updated feasibility study. We will
continue our efforts to deliver on the strategy to increase
shareholder wealth in a safe and socially responsible manner. I
wish you good health and safety.
Sincerely,
Gregory A. LangPresident & CEO
Financial Results |
in thousands of U.S. dollars, except for per share amounts |
|
|
Year endedNovember 30,
2021$ |
|
Year endedNovember 30,
2020$ |
|
General and administrative expense (1) |
20,210 |
|
18,735 |
|
Share of losses – Donlin Gold |
16,625 |
|
14,502 |
|
Total operating expenses |
36,835 |
|
33,237 |
|
|
|
|
Loss from operations |
(36,835) |
|
(33,237) |
|
Interest expense on promissory note |
(5,922) |
|
(6,014) |
|
Accretion of notes receivable |
2,556 |
|
3,337 |
|
|
|
|
Other income, net |
(198) |
|
1,569 |
|
Income tax recovery (expense) |
(137) |
|
781 |
|
Net loss |
(40,536) |
|
(33,564) |
|
Loss per share, basic and diluted |
(0.12) |
|
(0.10) |
|
|
At November 30,
2021$ |
|
At November 30, 2020
$ |
|
Cash and term deposits |
169,124 |
|
121,906 |
|
Total assets |
198,852 |
|
224,441 |
|
Total liabilities |
120,570 |
|
113,714 |
|
(1) Includes share-based compensation expense of $8,235 and
$7,057 for the year-ended November 30, 2021 and 2020,
respectively.
During the fourth quarter of 2021, we incurred a net loss of
$10.3 million compared to a net loss of $7 million for the
comparable period in 2020. The increase in net loss primarily
resulted from lower accretion income on Newmont Corp. notes
receivable in 2021; activity at Donlin Gold extended into the
fourth quarter of 2021; a provision for remediation of the former
New Gold House mineral property near Nome, Alaska in 2021; and the
recovery of income taxes in 2020 due to the filing of a
consolidated income tax return for U.S. subsidiaries.
Net loss increased from $33.6 million ($0.10 per share) in 2020
to $40.5 million ($0.12 per share) in 2021, primarily due to the
higher permitting and legal costs related to appeals filed on
various State of Alaska permits and completion of assays from the
2020 drill program in 2021, and higher share-based compensation
expense resulting from higher amortization of stock options and
performance share units (PSUs). Interest income decreased by $1.3
million due to lower interest rates earned on cash and term
deposits, partially offset by higher cash balances due to the
receipt of $75 million from Newmont on July 27, 2021; a remediation
provision expense adjustment for the historic former New Gold House
property near Nome, Alaska; lower accretion on notes receivable due
to the maturity of the $75 million note receivable; and a recovery
of deferred income taxes in 2020 resulting from the Company’s
decision to file a consolidated U.S. income tax return for its U.S.
subsidiaries commencing with the fiscal year ended
November 30, 2020. The increase in expenses was partially
offset by favorable foreign exchange movements and a gain on the
sale of our interest in the San Roque mineral property in
Argentina.
Liquidity and Capital Resources
Donlin Gold funding increased by $2.3 million in
2021 from 2020 primarily due to higher permitting and legal costs
due to legal challenges to the State’s CWA Section 401
certification and the State’s ROW agreement and lease authorization
for the buried natural gas pipeline, and completion of assays from
the 2020 drill program in 2021.
In 2021, the net increase in cash and cash
equivalents of $30.2 million primarily resulted from the $75
million note proceeds received from Newmont, partially offset by
Donlin Gold funding of $17.6 million, net investments in term
deposits of $17.2 million, and corporate operating activities of
$9.9 million.
Net spending on operating activities marginally
decreased in 2021 from 2020 primarily due to the timing of
corporate liability insurance payments; and COVID-19 resulting in
reduced corporate travel, offset by higher salaries and benefits;
and lower interest received on cash and term deposits due to lower
interest rates.
NOVAGOLD’s current cash position as of November 30,
2021, was $91.1 million, with term deposits of $78 million,
for a total of $169.1 million. This figure includes the July 2021
payment of $75 million from Newmont Corp. related to the sale of
NOVAGOLD’s 50% interest in the Galore Creek project in 2018. Note
that a second payment from Newmont of $25 million comes due in
2023, along with a further $75 million contingent payment due
when the Galore Creek project is approved for construction by
its owners. The Company believes that its cash, term deposits,
and receivables are sufficient to cover anticipated corporate
general and administrative costs and funding of the Donlin Gold
project through to a construction decision.
2022 Outlook
We anticipate spending approximately $46 million in
2022, which includes $13 million for corporate general and
administrative costs; $3 million for withholding taxes on PSUs and
other working capital; and $30 million to fund our share of
expenditures at the Donlin Gold project, including:
- $17 million for the 2022 drill program
(approximately 34,000 meters of core drilling)
- Grid drilling (mineralization
continuity and geologic structural controls in three areas of the
deposit)
- In-pit and below-pit exploration
- Platform mapping to confirm
mineralization continuity and key geological controls in
representative areas of the deposit
- $9 million for external affairs,
permitting, environmental, land and legal activities, and
- $4 million for project planning and
fieldwork (dam and water structures, metallurgical testing, mining
studies, hydrogeology and geochemistry, and infrastructure
planning).
NOVAGOLD’s primary goals in 2022 are to continue to advance the
Donlin Gold project toward a construction decision; maintain or
increase support for Donlin Gold among the project’s stakeholders;
promote a strong safety, sustainability, and environmental culture;
maintain a favorable reputation of NOVAGOLD, its governance
practices and its project among shareholders; and manage the
Company treasury effectively and efficiently, including
streamlining the corporate structure. Our operations primarily
relate to the delivery of project milestones, including the
achievement of various technical, environmental, sustainable
development, economic and legal objectives, obtaining necessary
permits, completion of feasibility studies, preparation of
engineering designs and the financing to fund these objectives.
Conference Call & Webcast Details
NOVAGOLD’s conference call and webcast to discuss these results
will take place January 27, 2022 at 8:00 am PT (11:00 am
ET). The webcast and conference call-in details are provided
below.
Webcast: https://services.choruscall.ca/links/novagold20220127.html |
North American callers: |
|
1-800-319-4610 |
International callers: |
|
1-604-638-5340 |
NOVAGOLD’s quarterly reporting schedule for the
remainder of 2022 will be as follows:
- Q1 2022 – Tuesday,
April 5, 2022; financial statements and a Donlin Gold project
update will be released after market close. A conference call and
webcast will be held on Wednesday, April 6, 2022 at 11 a.m.
ET.
- Annual Meeting of
Shareholders – Wednesday, May 18, 2022; the meeting will be held at
1 p.m. PT.
- Q2 2022 – Tuesday,
June 28, 2022; financial statements and a Donlin Gold project
update will be released after market close. A conference call and
webcast will be held on Wednesday, June 29, 2022 at 11 a.m.
ET.
- Q3 2022 – Tuesday,
October 4, 2022; financial statements and a Donlin Gold project
update will be released after market close. A conference call and
webcast will be held on Wednesday, October 5, 2022 at 11 a.m.
ET.
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),7 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 2021 Technical Report and the S-K 1300 Report,
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 eventual 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
Certain scientific and technical information contained herein
with respect to the Donlin Gold project is derived from the 2021
Technical Report and the S-K 1300 Report. Henry Kim, P.Geo., Senior
Resource Geologist, Wood Canada Limited; Mike Woloschuk, P.Eng., VP
Global Business Development & Consulting, Wood Group USA, Inc.;
and Kirk Hanson, MBA, P.E., Technical Director, Open Pit Mining,
Wood Group USA, Inc. are the Qualified Persons responsible for the
preparation of the 2021 Technical Report, and each is an
independent Qualified Person as defined by National Instrument
43-101 (“NI 43-101”). Wood prepared the S-K 1300 Report.
Paul Chilson, P.E., who is the Manager, Mine Engineering for
NOVAGOLD and a Qualified Person under NI 43-101, has approved
and verified the scientific and technical information related to
the 2021 Donlin Gold project drill program, the 2021 Technical
Report and the S-K 1300 Report contained in this media release.
NOVAGOLD Contacts:Mélanie HennesseyVice
President, Corporate Communications
Jason MercierManager, Investor Relations
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking
Statements
This media release includes certain “forward-looking
information” and “forward-looking statements” (collectively
“forward-looking statements”) within the meaning of applicable
securities legislation, including the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are frequently, but not always, identified by words such
as “expects”, “anticipates”, “believes”, “intends”, “estimates”,
“potential”, “possible”, and similar expressions, or statements
that events, conditions, or results “will”, “may”, “could”, “would”
or “should” occur or be achieved. Forward-looking statements are
necessarily based on several opinions, estimates and assumptions
that management of NOVAGOLD considered appropriate and reasonable
as of the date such statements are made, are subject to known and
unknown risks, uncertainties, assumptions, and other factors that
may cause the actual results, activity, performance, or
achievements to be materially different from those expressed or
implied by such forward-looking statements. All statements, other
than statements of historical fact, included herein are
forward-looking statements. These forward-looking statements
include statements regarding the anticipated results for the 2021
and 2022 drill programs; the anticipated timing of certain judicial
and/or administrative decisions; the 2022 Outlook; the timing and
potential for an updated feasibility on the project; our goals for
the remainder of 2022; anticipated benefits from the 2017, 2020,
2021, and 2022 drill programs including an improved geological
model for Donlin Gold; ongoing support provided to key stakeholders
including Native Corporation partners; the potential impact of the
COVID-19 pandemic on the development of Donlin Gold; the potential
development and construction of Donlin Gold; the sufficiency of
funds to continue to advance development of Donlin Gold; perceived
merit of properties; mineral reserve and resource estimates; Donlin
Gold’s ability to secure the permits needed to construct and
operate the Donlin Gold project in a timely manner, if at all; and
legal challenges to Donlin Gold’s existing permits. In addition,
any statements that refer to expectations, intentions, projections
or other characterizations of future events or circumstances are
forward-looking statements. Forward-looking statements are not
historical facts but instead represent the management expectations
of NOVAGOLD’s estimates and projections regarding future events or
circumstances on the date the statements are made.
Important factors that could cause actual results to differ
materially from expectations include the need to obtain additional
permits and governmental approvals; the timing and likelihood of
obtaining and maintaining permits necessary to construct and
operate; the need for additional financing to explore and develop
properties and availability of financing in the debt and capital
markets; the outbreak of the coronavirus global pandemic
(COVID-19); uncertainties involved in the interpretation of drill
results and geological tests and the estimation of reserves and
resources; changes in mineral production performance, exploitation
and exploration successes; changes in national and local government
legislation, taxation, controls or regulations and/or changes in
the administration of laws, policies and practices, expropriation
or nationalization of property and political or economic
developments in the United States or Canada; the need for continued
cooperation between Barrick and NOVAGOLD for the continued
exploration, development and eventual construction of the Donlin
Gold property; the need for cooperation of government agencies and
Native groups in the development and operation of properties; risks
of construction and mining projects such as accidents, equipment
breakdowns, bad weather, disease pandemics, non-compliance with
environmental and permit requirements, unanticipated variation in
geological structures, ore grades or recovery rates; unexpected
cost increases, which could include significant increases in
estimated capital and operating costs; fluctuations in metal prices
and currency exchange rates; whether a positive construction
decision will be made regarding Donlin Gold; and other risks and
uncertainties disclosed in NOVAGOLD’s most recent reports on Forms
10-K and 10-Q, particularly the "Risk Factors" sections of those
reports and other documents filed by NOVAGOLD with applicable
securities regulatory authorities from time to time. Copies of
these filings may be obtained by visiting NOVAGOLD’s website at
www.novagold.com, or the SEC's website at www.sec.gov, or at
www.sedar.com. The forward-looking statements contained herein
reflect the beliefs, opinions and projections of NOVAGOLD on the
date the statements are made. NOVAGOLD assumes no obligation to
update the forward-looking statements of beliefs, opinions,
projections, or other factors, should they change, except as
required by law.
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.2 Drill intercepts
originally disclosed in the December 1, 2021 media release “Barrick
and NOVAGOLD Agree on Next Steps Toward Advancement of Donlin Gold;
Drill Assay Results Continue to Yield High-Grade Intercepts and
Demonstrate Important Grade Continuity; With Clear Improvement in
Definition of Controls of Mineralization, the Project is Advancing
Towards Feasibility Study Update”
https://www.novagold.com/_resources/news/2021-12-01.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.3 ANCSA Regional Association
Resolution 21-01 “Support for Donlin Gold Mine Project” dated
September 16, 2021.4 Donlin Gold data as per the 2021 Technical
Report (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, of which 50% are attributable to
NOVAGOLD through their 50% ownership interest in the joint venture
that owns the mineral rights and manages the Donlin property.
Exclusive of mineral reserves, Donlin Gold possesses measured
resources of approximately 1 Mt grading 2.23 g/t and indicated
resources of approximately 69 Mt grading 2.44 g/t, each of which
50% are attributable to NOVAGOLD. Mineral resources have been
estimated in accordance with NI 43-101. 5 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.6
NOVAGOLD considers Tier One jurisdictions to be any in the top 10
rank by the Investment Attractiveness Index in the Fraser Institute
Annual Survey of Mining Companies, 2020. Alaska is ranked
number 5.7 Donlin Gold data as per the 2021 Technical Report and
the S-K 1300 Report, 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.
NovaGold Resources (TSX:NG)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
NovaGold Resources (TSX:NG)
Historical Stock Chart
Von Apr 2023 bis Apr 2024