Novagold Resources Inc. · AMEX:NG
Novagold Resources — NYSSA Conference 2016
33 slides from Novagold Resources's conference presentation, June 2016
Slide 1: The Gold Development Company for the 21st Century
THE GOLD DEVELOPMENT COMPANY for the 21st Century NYSE-MKT, TSX: NG | June 2016 novagold.com
Slide 2: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking statements” within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historic
Slide 3: Market Environment: Gold
MARKET ENVIRONMENT: GOLD RENEWAL OF GOLD’S LONG-TERM UPTREND DOESN’T REQUIRE ANY SPECIFIC EVENT – IT WILL JUST HAPPEN ONE DAY “Gold is a currency. We have dollars, we have euros, we have yen and we have gold. If you don’t have [10% of your assets in] gold, there is no sensible reason other than that
Slide 4: Market Environment: Gold – The Tortoise and the Hare
MARKET ENVIRONMENT: GOLD DONLIN GOLD HAS CONTINUED PROGRESSING AT ITS NATURAL PACE – REFERRED TO AS “THE TORTOISE AND THE HARE” PHENOMENON > Quality is plunging, the best ore has already been mined > Time from discovery to production can take up to 20+ years > On the demand side, gold still a favore
Slide 5: What Makes NOVAGOLD Unique?
WHAT MAKES NOVAGOLD UNIQUE? A DEVELOPMENT-STAGE COMPANY WITH TWO PROJECTS OF EXCEPTIONAL SCALE, QUALITY, AND JURISDICTIONAL SAFETY DONLIN GOLD 50/50 with Barrick Poised to become one of the largest gold producers in the world Location: Southwest Alaska GALORE CREEK 50/50 with Teck Expected to be the
Slide 6: Donlin Gold: The Right Project
DONLIN GOLD: THE RIGHT PROJECT ARGUABLY THE MOST IMPORTANT GOLD PROJECT IN THE WORLD TODAY Size Partnerships Among the largest present and/or Strong partnerships with local future gold mines in the world stakeholders Jurisdiction Grade High-grade open-pit mine Donlin Gold Located in Alaska, one of t
Slide 7: Donlin Gold: A Large High-Grade Gold Project
DONLIN GOLD: A LARGE HIGH-GRADE GOLD PROJECT AMONG THE WORLD’S MOST SIGNIFICANT AND HIGHEST-GRADE GOLD DEPOSITS 1 1,2 Notes: 1) Shown on 100% project basis, of which NOVAGOLD holds a 50% interest 2) Measured and indicated resources inclusive of proven and probable reserves. See “Cautionary Note Conc
Slide 8: The Emerging Top-Tier Producer in the Safest Jurisdiction
DONLIN GOLD: THE EMERGING TOP-TIER PRODUCER IN THE SAFEST JURISDICTION A REMARKABLE RESOURCE AMONG EMERGING GOLD DEPOSITS IN THE AMERICAS 45.0 40.0 35.0 Donlin Gold’s size and projected production profile clearly 30.0 distinguish it from its peers (millions of ounces) M&I Gold Resource 25.0 20.0 39.
Slide 9: Mines the Size of Donlin Gold Are Scarce
MINES THE SIZE OF DONLIN GOLD ARE SCARCE ONLY SIX MINES/PROJECTS IN THE WORLD ARE SLATED TO PRODUCE >1 MOZ/YEAR DONLIN GOLD USA MURUNTAU2 Uzbekistan ▸ 1.5 Moz/year in first five full years1 GRASBERG ▸ 1.1 Moz/year LOM1 Indonesia Only undeveloped asset in PUEBLO VIEJO3 this category in Dominican Repu
Slide 10: Double the Grade of the Average Gold Deposit in the World
DONLIN GOLD: IS DOUBLE THE GRADE OF THE AVERAGE GOLD DEPOSIT IN THE WORLD DONLIN GOLD’S HIGH GRADE ENDOWMENT PROVIDES RESILIENCE TO GOLD PRICE CYCLES Donlin Gold Average Grade2: World Average Grade1: 2.24 g/t 1.12 g/t Industry average grades are declining and sources for emerging production are incr
Slide 11: Excellent Exploration Potential
DONLIN GOLD: EXCELLENT EXPLORATION POTENTIAL MULTIPLE DRILL PROSPECTS AND TARGETS EXIST ALONG 8KM TREND The next big gold discovery? > Potential to expand current open-pit resources along strike and at depth > Good prospects to discover meaningful deposits outside current mine footprint • Reserves a
Slide 12: Significant Value Upside with Higher Gold Prices
DONLIN GOLD: SIGNIFICANT VALUE UPSIDE WITH HIGHER GOLD PRICES NPV INCREASES ~20X WITH ~2X INCREASE IN GOLD PRICE NPV after-tax (US$ in millions) 30,000 > Project has a positive return that increases substantially with higher gold prices 25,000 27year 27.0B mine life > Good payback at a broad range o
Slide 13: Committed Partners Advancing the Project
DONLIN GOLD: COMMITTED PARTNERS ADVANCING THE PROJECT JOINT AND DEDICATED EFFORT TO COMPLETE THE EIS PROCESS BY BARRICK AND NOVAGOLD “The Donlin Gold project has the potential to become a world class asset for Barrick and for our partner NOVAGOLD. We would like nothing more than to see this potentia
Slide 14: Leverage in a Place Where You Can Keep the Rewards
DONLIN GOLD: LEVERAGE IN A PLACE WHERE YOU CAN KEEP THE REWARDS LOCATION, LOCATION, LOCATION “It is that rare “unicorn” that is located in a safe part of the world where an investor can tread without fear. As such, Donlin Gold represents for us the optimal way to invest in the space: that is, to see
Slide 15: Life of Mine Agreements with Alaska Native Corporations
DONLIN GOLD: LIFE OF MINE AGREEMENTS WITH ALASKA NATIVE CORPORATIONS STRONG AND TIME-HONORED RELATIONSHIPS WITH STAKEHOLDERS Donlin Gold has the support of the land owners through a 20+ year relationship “Donlin Gold has taken great strides in planning a “Our shareholders have already seen great ben
Slide 16: Project Permitting Is on Track
DONLIN GOLD: PROJECT PERMITTING IS ON TRACK DRAFT ENVIRONMENTAL IMPACT STATEMENT RECENTLY PUBLISHED EIS TIMELINE: August 2012 2017 Final EIS Permit Notice of Public Preliminary Draft EIS Draft EIS Public Record of Decision Applications Intent Scoping Comment Permit Issuance Period Submitted Submitte
Slide 17: Public Comment Period
DONLIN GOLD: PUBLIC COMMENT PERIOD WELCOMING INPUT FROM LOCAL STAKEHOLDERS: YOUR VOICE MATTERS “We do support the Donlin Gold mine because they “I read just a little bit a while ago about how Donlin have kept their word...after these boys and girls Gold is going to negatively impact our subsistence
Slide 18: Disciplined & Transparent Environmental Impact Statement
DONLIN GOLD: DISCIPLINED & TRANSPARENT ENVIRONMENTAL IMPACT STATEMENT AGENCY COORDINATION AND PUBLIC INVOLVEMENT > US Army Corps of Engineers (“Corps”), is the lead agency for Environmental Impact Statement (EIS) > Coordinating with 11 cooperating agencies, working together at each stage of the NEPA
Slide 19: Galore Creek: A Significant Copper-Gold-Silver Asset
GALORE CREEK: A SIGNIFICANT COPPER-GOLD-SILVER ASSET POTENTIAL TO BE ONE OF THE LARGEST, HIGHEST-QUALITY, LOWEST-COST COPPER PRODUCERS IN CANADA M&I RESOURCES1 copper 9 Blbs Grade: 0.50% gold 8 Moz Grade: 0.31 g/t silver 136 Moz Grade: 5.21 g/t 1) Represents 100% of measured and indicated resources
Slide 20: Clear Focus and Strong Funding to Execute on All Fronts
CLEAR FOCUS AND STRONG FUNDING TO EXECUTE ON ALL FRONTS SUFFICIENT CASH ON HAND TO PROGRESS DONLIN GOLD THROUGH PERMITTING $117M in cash and term deposits1 2016 Budget Donlin Gold $9M Galore Creek $1M G&A, interest & Donlin Gold joint studies $15M TOTAL $25M 1) Includes $80 million in term deposits
Slide 21: Why Invest in NOVAGOLD?
WHY INVEST IN NOVAGOLD? EXCELLENT SHAREHOLDER BASE APPRECIATES SUPERIOR LEVERAGE “With so many macro- and micro- 26.5% economic factors pointing to a more Electrum Strategic robust price environment than we Resources LP see today, investors in NOVAGOLD should be well-positioned to derive a lot of va
Slide 22: The NOVAGOLD Opportunity
THE NOVAGOLD OPPORTUNITY Safe Geo-Political Environment: Strong Balance Sheet: Alaska and British Columbia, $117m cash + term deposits top-rated mining jurisdictions as of February 29, 2016 Accomplished Leadership Team: focused on execution Top Tier Assets: 185 years cumulative experience and delive
Slide 23: Appendix
APPENDIX novagold.com
Slide 24: Donlin Gold: Project Highlights
DONLIN GOLD: PROJECT HIGHLIGHTS DONLIN GOLD SLATED TO BE A STATE-OF-THE-ART SIGNIFICANT MINE Reserves: 33.9 Moz Au (505M tonnes ore)1 Resources: 5.1 Moz M&I (excluding P&P) and 6.0 Moz Inferred1 Mine Life: ~27 years Production: Year 1-5,1.5 Moz/year; LOM,1.1 Moz/year Operation: Open-pit, conventiona
Slide 25: Galore Creek: Project Highlights
GALORE CREEK: PROJECT HIGHLIGHTS GALORE CREEK TO BE ONE OF CANADA'S LARGEST COPPER MINES Reserves: 6.8 Blb Cu; 5.5 Moz Au; 102 Moz Ag1 Resources: 8.9 Blb Cu; 8.0 Moz Au; 136 Moz Ag (inclusive of reserves)1 Mine Life: ~18 years Production: Year 1-5, 400 Mlb/year Cu; LOM, 340 Mlb/year Cu Cash costs: L
Slide 26: Permitting in the U.S.
DONLIN GOLD: PERMITTING IN THE U.S. LARGE PROJECTS HAVE BEEN SUCCESSFULLY PERMITTED • Expansion Red Dog Alaska Lead/zinc ~2 years • EIS completed in 2009 • Development started on schedule in 2010 • Expansion – new heap leach facility Fort Knox Alaska Gold ~3 years • Permitting completed in 2007 • Ne
Slide 27: Donlin Gold: Capital Expenditures
DONLIN GOLD: CAPITAL EXPENDITURES WELL POSITIONED TO SHARE UPFRONT COSTS WITH THIRD PARTIES Areas US$M1 Opportunities1 Mining 345 Leasing equipment ~$170M of $345M Site preparation/roads 236 Process facilities 1,326 Oxygen plant could be built by third party ~$130M of $1,326M Tailings 120 Utilities
Slide 28: Expected to Provide Three Decades of Low Cost Production
DONLIN GOLD: EXPECTED TO PROVIDE THREE DECADES OF LOW COST PRODUCTION LOW OPERATING CASH COSTS AND ALL-IN SUSTAINING COSTS FIRST FIVE YEARS LIFE OF MINE Cash Costs1 Per Ounce Cash Costs1 Per Ounce Open-pit mining2 133 Open-pit mining2 270 Processing 208 Processing 257 G&A, royalties, land & other3 7
Slide 29: NOVAGOLD: The Management Team
NOVAGOLD: THE MANAGEMENT TEAM 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 President & CEO (Goldstrike, Cortez, Turquoise Ridge, Bald Mou
Slide 30: NOVAGOLD: The Board of Directors
NOVAGOLD: THE BOARD OF DIRECTORS > Chairman and CIO of The Electrum Group LLC, a privately held natural resources Dr. Thomas Kaplan investment management company that controls a diversified portfolio of precious and Chairman base metals assets > Former Chief Legal Officer and Corporate Secretary wit
Slide 31: NOVAGOLD: Reserve/Resource Table
NOVAGOLD: RESERVE/RESOURCE TABLE Donlin Gold* Tonnage (100%) Grade (100%) Metal (100%) NOVAGOLD Share (50% ) GOLD Mt g/t Au koz Au koz Au Reserves1 Proven 7.7 2.32 573 286 Probable 497.1 2.08 33,276 16,638 P&P 504.8 2.09 33,849 16,924 Resources3, inclusive of Reserves Measured 7.7 2.52 626 313 Indic
Slide 32: NOVAGOLD: Reserve/Resource Table (Cont'd)
NOVAGOLD: RESERVE/RESOURCE TABLE (CON’T) Notes: a. These reserve and resource estimates have been prepared in accordance with NI 43-101 and the CIM Definition Standard, unless otherwise noted. b. See numbered footnotes below on resource information. c. Rounding and significant figures may result in
Slide 33: Contact Us
CONTACT US NOVAGOLD RESOURCES INC. Suite 720 – 789 West Pender Street Vancouver, BC Canada V6C 1H2 T 604 669 6227 TF 1 866 669 6227 F 604 669 6272 www.novagold.com [email protected] Mélanie Hennessey Erin O’Toole VP, Corporate Communications Analyst, Investor Relations [email protected]