Novagold Resources Inc. · AMEX:NG
Novagold Resources — 2022 BMO Global Metals & Mining Conference
35 slides from Novagold Resources's conference presentation, Mar 2, 2022
Slide 1: 2022 BMO Global Metals & Mining Conference
2022 BMO Global Metals & Mining Conference February 27 – March 2, 2022 TSX, NYSE American: NG | novagold.com
Slide 2: Cautionary statements
Cautionary statements REGARDING FORWARD-LOOKING STATEMENTS properties; estimated capital costs, operating costs, production and economic returns; estimated metal pricing, metallurgy, This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forw
Slide 3: COVID-19 protocol incorporates increased vigilance
DONLIN GOLD COVID-19 protocol incorporates increased vigilance Focusing on health and safety at site and at home Donlin Gold enhanced its Community and Workforce Protection Plan to ensure the safety and well-being of its workforce, their families, and local communities. The Plan adheres to CDC guide
Slide 4: Sustainability performance
NOVAGOLD Sustainability performance NOVAGOLD and Donlin Gold are committed to responsible mining — positively impacting people and the planet through collaborative ESG efforts in three major areas: 1 2 3 ENVIRONMENT SOCIAL GOVERNANCE Partnered with the Association of Donlin Gold has a total of e
Slide 5: 2021 community engagement
NOVAGOLD 2021 community engagement Supporting organizations in our communities and beyond NOVAGOLD sponsorships/partnerships Sponsored and participated in the Mining for Miracles Pie Throw, an annual fundraising event in support of the BC Children’s Hospital Recognized for its outstanding contri
Slide 6: 2021 drill program delivers outstanding gold intercepts
DONLIN GOLD 2021 drill program delivers outstanding gold intercepts Bringing Donlin Gold up the value chain Top recent intervals from 2021 drill program • 2021 drill program completed: 79 holes (24,264 meters1) drilled in ACMA and Lewis pit areas • Program plan was expanded by 13 holes and approx. 4
Slide 7: 2021 drill program
DONLIN GOLD 2021 drill program ACMA and Lewis deposits open at depth and along strike Longitudinal section view of the ACMA and Lewis deposits • High-grade intercepts point to potential feeder zones of this system • Significant exploration potential remains near the ACMA and Lewis deposits and the b
Slide 8: 2022 drill program: largest budget in more than a decade
DONLIN GOLD 2022 drill program: largest budget in more than a decade 2022 drill program (approx. 34,000 meters of core $34M drilling) • Grid drilling (mineralization continuity and geologic structural controls in three areas of the deposit) • In-pit and below pit exploration • Waste Rock Facility co
Slide 9: Barrick Gold and NOVAGOLD optimizing the Donlin Gold project
Barrick Gold and NOVAGOLD optimizing the Donlin Gold project1 “ The successfully concluded site visit and the meetings that followed with our Alaskan constituencies provided an excellent lead-in to Barrick’s and NOVAGOLD’s onward progression for the Donlin Gold project. The identification of key wor
Slide 10: Permitting update
DONLIN GOLD Permitting update Key federal permits for the project received and state permitting is well-advanced Federal permitting completed State permitting completed ✓ Final Environmental Impact Statement (EIS) ✓ Air quality ✓ Joint Record of Decision (ROD) by the Army Corps of Engineers and ✓ Al
Slide 11: Decades of government affairs and engagement
DONLIN GOLD Decades of government affairs and engagement Calista Corporation, Barrick, and NOVAGOLD conduct outreach to senior Biden administration officials regarding the Donlin Gold project The Donlin Gold project is under private ownership of our Alaska Native Corporation partners, Calista Corp
Slide 12: A tier-one asset in a tier-one jurisdiction
DONLIN GOLD A tier-one asset1 in a tier-one jurisdiction2 Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than double contained in measured and the world average grade5 Only 5% of 489 sq km land indicated mineral
Slide 13: Largest gold development project in its category
DONLIN GOLD Largest gold development project in its category 1 A resource more than five times the size of the peer group average 50.0 40.0 39.0Moz Donlin Gold2 M&I gold resource (millions of ounces) 30.0 20.0 10.9 11.3 11.5 11.7 10.0 8.0 8.1 8.2 10.0 6.3 7.7Moz Peer group average1 3.9 4.2 4.6 5.0 3
Slide 14: Positioned to be one of the world's largest gold mines
DONLIN GOLD Positioned to be one of the world’s largest gold mines Positioned to become a million-ounce gold producer1 Donlin Gold’s 1.20 1.101 27-year mine life Projected annual gold production (millions of ounces) 1.00 1.1 Moz/yr1 0.80 0.60 0.50 0.39 0.40 0.36 0.37 0.30 0.32 0.28 0.29 0.29 0.29 0.
Slide 15: Double the global average gold grade
DONLIN GOLD Double the global average gold grade1 Among the world’s highest-grade known open-pit gold deposits 2.24 g/t While global average gold grades are declining, Donlin 1.12 Gold’s grade g/t provides resilience through commodity price cycles Global average grade1 Donlin Gold average grade2 See
Slide 16: The next big gold discovery could be at Donlin Gold
DONLIN GOLD The next big gold discovery could be at Donlin Gold Significant potential to expand current resource along strike and at depth From 2006 to 2011, M&I resources increased 135% Far Side (16.6Moz1 to 39.0Moz2) Gold resource defined with approximately 1,400 drillholes Queen totaling more
Slide 17: Alaska's jurisdictional appeal
Alaska’s jurisdictional appeal • Mineral potential • Political and social stability • Excellent local partnerships • Established mining industry 17 NOVAGOLD | 2022 BMO Global Metals & Mining Conference
Slide 18: One of the largest gold projects in a safe jurisdiction
DONLIN GOLD One of the largest gold projects in a safe jurisdiction1 Comparing the top three gold producing operations2 and the five largest development-stage gold projects3 50.0 46 Donlin Gold Muruntau Livengood Olimpiada 39.04 40.0 Sukhoi Log M&I gold resource (millions of ounces) 30.0 20.0 11.3 1
Slide 19: High-quality assets like Donlin Gold are scarce
High-quality assets like Donlin Gold are scarce; of 154 assets globally not yet in production, only 34 have greater than 10 Moz of gold in reserves and resources. Only 8 assets have a grade of 1 g/t Au or greater.1 See endnotes for this slide in Appendix 19 NOVAGOLD | 2022 BMO Global Metals & Mining
Slide 20: Alaska Native Corporation partnerships elevate the project
DONLIN GOLD Alaska Native Corporation partnerships elevate the project Donlin Gold has life-of-mine agreements with Alaska Native Corporations Calista and TKC Land valuable for resource potential was selected by regional Alaska Native Corporations, and resource development companies were invited by
Slide 21: A true 50:50 partnership with Barrick Gold
DONLIN GOLD A true 50:50 partnership with Barrick Gold Working together since 2001 to take the Donlin Gold project up the value chain How does the Donlin Gold LLC work? Donlin Gold LLC is owned 50:50 by Barrick Gold and NOVAGOLD subsidiaries The Donlin Gold project management team is subject to
Slide 22: Maintaining a strong treasury
NOVAGOLD Maintaining a strong treasury Largest planned spending for Donlin Gold in over a decade $30M Donlin Gold project expenditures $46M $13M Corporate G&A Forecast 2022 spending1 $3M Withholding taxes on PSUs and other working capital $169.1M cash and term deposit balance on November 30, 2021 Du
Slide 23: Promises kept, excellent partnerships
NOVAGOLD Promises kept, excellent partnerships Track record of converting company goals into shareholder value Successful strategic repositioning as a Aligned on project strategy and timeline with Steady advancement of Donlin Gold up the value chain pure gold play Barrick Gold 2012: Spin-out of 10
Slide 24: Significant value upside with higher gold prices
DONLIN GOLD Significant value upside with higher gold prices $35.0 31.6B $30.0 Net Present Value (NPV) (US$ in Billions) Project return increases substantially with higher $25.0 gold prices1 22.5B Good payback at a $20.0 broad range of gold 17.5B prices Long mine life offers high $15.0 13.1B l
Slide 25: Strong institutional shareholder and management support
NOVAGOLD Strong institutional shareholder and management support The 10 largest shareholders represent 64.7% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million shares2 since joining the company 35.3% 64.7% all other top 10 shareholders shareholders 2.4 25.4
Slide 26: A tier-one asset in a tier-one jurisdiction
DONLIN GOLD A tier-one asset1 in a tier-one jurisdiction2 Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than double contained in measured and the world average grade5 Only 5% of 489 sq km land indicated mineral
Slide 27: NOVAGOLD contact details
TSX, NYSE American: NG | novagold.com NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C 3A6 [email protected] T: 604 669 6227 TF: 1 866 669 6227 F: 604 669 6272 E: [email protected] NOVAGOLD | 2022 BMO Global M
Slide 28: Appendix
Appendix 28 NOVAGOLD | 2022 BMO Global Metals & Mining Conference
Slide 29: Mineral reserves
Mineral reserves Attributable to Donlin Gold Tonnage Grade Metal Content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Reserves1 and on a 50% basis. Proven 7,683 2.32 573 287 NOVAGOLD and Barrick each own 50% of the Probable 497,128 2.08 3
Slide 30: Mineral resources
Mineral resources Attributable to Donlin Gold Tonnage Grade Metal content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Resources2, exclusive of Reserves and on a 50% basis. NOVAGOLD and Barrick Measured 869 2.23 62 31 each own 50% of the
Slide 31: Management
Management Industry leaders to bring Donlin Gold through permitting & beyond • Former President of Barrick Gold North America Gregory Lang • 35+ years experience building & operating major open-pit and underground mines (Goldstrike, Cortez, Turquoise President and CEO Ridge, Bald Mountain, Porgera)
Slide 32: Board of directors
Board of directors Dr. Thomas Kaplan • Chairman and CEO of The Electrum Group LLC, a privately held natural resources investment management company that Chairman controls a diversified portfolio of precious and base metals assets • Former Executive Vice President of Sustainability and External Relat
Slide 33: Endnotes
Endnotes SLIDE 13 - Largest gold development project in its category 1. Peer group data based on company documents, public filings and websites as of February 2022. SLIDE 6 - 2021 drill program delivers outstanding gold intercepts Comparison group of 14 projects based on large (2Moz Proven and Proba
Slide 34: Endnotes
Endnotes SLIDE 16 - The next big gold discovery could be at Donlin Gold Market Intelligence. Grade refers to combined Reserves and Resources. 1. Represents measured and indicated mineral resources previously reported by NOVAGOLD and SLIDE 21 - A true 50:50 partnership with Barrick Gold supported by
Slide 35: Endnotes
Endnotes SLIDE 24 - Significant value upside with higher gold prices to a $0.001 BV cut-off at these same values. The life-of-mine (LOM) strip ratio is 5.48:1. The assumed LOM throughput rate is 53,500 t/d. 1. Donlin Gold estimates as per the 2021 Technical Report and the S-K 1300 Technical Report S
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