Last Outcomes from 2021 Donlin Gold Drilling Program Continued to
Ship Excessive-Grade Intercepts as anticipated, Supporting the Modelled Useful resource Estimate
2022 Donlin Gold Drill Program is Largest in additional than a Decade, Centered on Advancing Preparation for Feasibility Work
Sturdy $155-Million Treasury with 2023 Receivable of $25 Million
- The success of the expanded 2021 Donlin Gold drill program delivered on its goals to validate current geologic modelling ideas to assist future feasibility work and take a look at for extensions of high-grade zones. The outcomes assist the present world useful resource estimate, the current modelling ideas, and strategic mine planning work.
- With the most important challenge finances in additional than a decade, a plan is in place to advance Donlin Gold up the worth chain in 2022 and place the challenge to have the ability to proceed with the preparation of an up to date feasibility examine, topic to Donlin Gold LLC Board approval.
- NOVAGOLD’s treasury remained robust with $155 million in money and time period deposits as of February 28, 2022, with one other $25 million due in July 2023 from Newmont, the entire being greater than adequate to advance Donlin Gold up the worth chain.
NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Firm”) (NYSE American, TSX: NG) at present launched its 2022 first quarter monetary outcomes and an replace on its Tier One 1 gold improvement challenge, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Company (“Barrick”).
Particulars of the monetary outcomes for the quarter ended February 28, 2022 are offered within the consolidated monetary statements and quarterly report filed on Type 10-Q on April 5, 2022 that’s accessible on the Firm’s web site at www.novagold.com , on SEDAR at www.sedar.com , and on EDGAR at www.sec.gov . All quantities are in U.S. {dollars} until in any other case said.
Within the first quarter 2022, the next milestones have been achieved at Donlin Gold:
- Reopened the camp in January 2022, the primary quarter ended with three drill rigs working and roughly 70 individuals on web site, with a majority of Donlin Gold direct rent workers who’re Alaska Native from the Yukon-Kuskokwim (Y-Ok) area. For the well being and security of our workforce and members of the neighborhood, strict COVID-19 mitigation protocols stay in impact.
- Obtained the ultimate set of assay outcomes (21 full holes and 22 partial holes, encompassing the remaining 8,500 meters of size drilled) from the 2021 drill program, which have been reported to the market collectively by Donlin Gold, Barrick, and NOVAGOLD on February 28, 2022.
- An incredible final result for the yr: “The 2021 drill marketing campaign completed strongly with high-grade intercepts and a number of the finest drill outcomes for an open-pit challenge trade large.” (Barrick Gold Company, 2021 Annual Report).
- Continued to offer vital help to native communities by way of funding and participation in initiatives associated to well being and security, infrastructure, environmental administration, coaching and training, and assist of the indigenous tradition within the Y-Ok area. The latter has represented a core enterprise of the Donlin Gold staff, our Alaska Native companions, Calista Company (“Calista”) and The Kuskokwim Company (TKC), and different key representatives of Y-Ok communities. Over the past quarter, Donlin Gold:
- Labored with six college districts within the area as a part of the nationwide Dictionary Venture to offer a private Yu’pik dictionary to all third graders, supplying almost 5,000 dictionaries over the past decade.
- In a brand new partnership with Alaska Protected Riders, sponsored Iron Canine Days the place the neighborhood participated in security briefings and classic snowmobile races.
- Partnered with TKC to assist an finish of yr program in December 2021 to ship meals to Elders within the Yukon. Moreover, we labored with TKC to offer smoke detectors to stakeholders.
- Supplied monetary assist for the 2022 Kuskokwim ice street, a 270-mile lengthy plowed and marked ice street that considerably improved security and entry to 17 communities within the Y-Ok area for residents in distant areas.
- Calista and Donlin Gold, with assist from NOVAGOLD and Barrick, continued their proactive bipartisan authorities outreach in Alaska and Washington, D.C. to focus on the thoroughness of the challenge’s environmental overview and allowing processes, in addition to future alternative for accountable financial improvement, together with the numerous advantages that can realized by all Alaska Natives.
President’s Message
Most Important Donlin Gold Funding in Over a Decade: Advancing the Venture in Preparation for Feasibility and Potential Identification of Additional Upside
Within the first quarter 2022, actions commenced early within the yr with the camp opening in January to organize the positioning for the most important drilling program in ten years, with three drill rigs working and roughly 70 individuals on the property. Winter drilling was key to entry areas that will in any other case be difficult in milder circumstances. As at all times, the well being and security of Donlin Gold’s workforce and members of the encompassing communities remained a high precedence as Donlin Gold continued to stick to strict security protocols, together with COVID-19 mitigation.
The proposed finances for Donlin Gold LLC (one hundred pc) in 2022 is anticipated to be $60 million (of which NOVAGOLD’s portion is 50 %) as beforehand reported. The main target might be to replace geologic modelling and interpretation work for an up to date useful resource mannequin and engineering actions to be used in an up to date challenge feasibility examine; undertake roughly 34,000 meters of deliberate tight spaced grid drilling and in-pit and below-pit exploration drilling; assist fieldwork and allowing for the Alaska Dam Security Certifications; advance environmental actions; and assist neighborhood and exterior affairs efforts.
The steadiness of the Donlin Gold assay outcomes for the 2021 drill program have been collectively launched by Donlin Gold, NOVAGOLD and Barrick on February 28, 2022. The drill program was accomplished in September with 79 holes drilled for a complete of 24,264 meters. The ultimate set of outcomes launched included assays for 21 full holes and 22 partial holes, encompassing the remaining approximate 8,500 meters of size drilled. I totally agree with Mark that the 2021 drill marketing campaign completed strongly with high-grade intercepts and a number of the finest drill outcomes for an open-pit challenge trade large. Full particulars of the outcomes for the 2021 drill program will be accessed right here: “Donlin Gold Proclaims Last Assay Outcomes for 2021 Drill Program” . The first goal of the 2021 drill program was achieved by validating current geologic modelling ideas to assist future feasibility work, knowledge assortment for geotechnical and geometallurgical functions, take a look at for extensions of high-grade zones, and establish 2022 drill targets. Because of the success in 2021, the drilling program was expanded upon in 2022.
As soon as the 2021 drill knowledge has been included into an up to date useful resource mannequin, it’s anticipated that the homeowners will decide up to date mining schedules and lifetime of mine enterprise plans previous to shifting to an up to date feasibility examine, topic to a proper resolution by the Donlin Gold LLC Board to proceed.
Exterior Affairs and Native Company Management Function
Calista and Donlin Gold, in shut coordination with NOVAGOLD and Barrick, co-lead our authorities relations efforts, an necessary a part of advancing the Donlin Gold challenge by way of allowing and past. In the course of the first quarter, Calista and Donlin Gold continued their proactive bipartisan outreach in Alaska and Washington DC to focus on the thoroughness of the challenge’s environmental overview and allowing processes, together with the significance of accountable and much-needed financial improvement within the Y-Ok area and all through Alaska. Collectively we emphasised that the challenge is positioned on Alaska Native Company lands, and Calista owns the minerals that they chose underneath the Alaska Native Claims Settlement Act (ANSCA) of 1971. We described the varied advantages that the challenge would ship to the residents of the Y-Ok area and all Native Alaskans.
Constant Engagement with Stakeholders
One of many key areas through which we spend a substantial period of time and assets on the Donlin Gold challenge is in supporting native communities by funding and taking part in initiatives associated to well being and security, environmental administration, coaching and training, and cultural initiatives within the Y-Ok area. The Donlin Gold staff, Calista and TKC, in addition to different key representatives of Y-Ok communities, work collectively to attain these objectives with the last word goal of guaranteeing sustainable and worthwhile challenge improvement.
A number of examples of those first quarter initiatives included Donlin Gold partnering with TKC to offer smoke detectors in stakeholder properties and delivering meals to Elders; working with the six college districts within the Y-Ok area as a part of the nationwide Dictionary Venture to offer a private Yu’pik dictionary to all third graders, supplying almost 5,000 dictionaries over the past decade; and sponsoring Iron Canine Days, as a part of a brand new partnership with Alaska Protected Riders, the place the neighborhood participated in security briefings and classic snowmobile races.
A extra important enterprise by Donlin Gold and quite a few communities alongside the Kuskokwim River was the funding of the 2022 Kuskokwim ice street, a 270-mile lengthy plowed and marked ice street that has considerably improved security and entry to 17 close by Y-Ok area communities for residents in distant areas.
Substantial, Excessive-High quality Useful resource with Exploration Upside in a Protected Place
We consider Donlin Gold to be one of many trade’s rarest, largest, and most superior open-pit gold improvement tasks. It’s positioned on non-public land particularly designated for mining in Alaska – the US’ second largest gold producing state. Environmentally and socially accountable useful resource improvement is welcome in Alaska as one of many world’s most secure locations to function – in different phrases, a jurisdiction the place an investor can sleep nicely at evening.
NOVAGOLD and its neighborhood of stakeholders are blessed to have a share of this particular challenge and honored to have that hard-earned Federal Report of Resolution for improvement. They will profit from the unimaginable leverage that Donlin Gold presents in an setting of escalating treasured metals costs… and hold the fruits of that leverage. At a time when corporations, determined to interchange their depleting endowments, should enterprise into more and more dangerous geo-political frontiers with unsure bodily and monetary safety for his or her funding, Donlin Gold, with roughly 39 million ounces of gold in Measured and Indicated Mineral Sources, inclusive of Confirmed and Possible Mineral Reserves (one hundred pc, roughly 19.5 million ounces attributable to NOVAGOLD) grading 2.24 grams per tonne 2 (twice the trade common for an open-pit challenge 3 ), is ideally positioned to ship long-term advantages with a mine life that, already measured in a long time, has potential to develop. Donlin Gold’s extraordinary exploration potential is manifested by the truth that the present deposit will not be solely open laterally in addition to at depth, however that its Mineral Sources are contained inside solely three kilometers of an eight-kilometer mineralized belt – itself positioned on lower than 5 % of Donlin Gold’s whole land bundle. We consider NOVAGOLD’s 50 % possession on this distinctive asset clearly constitutes a particular funding alternative for our broad neighborhood of stakeholders, together with our shareholders.
Stable Treasury to Advance Donlin Gold
Over the past decade, we have now been diligent stewards of our steadiness sheet. NOVAGOLD’s treasury remained robust with $155 million in money and time period deposits as of February 28, 2022, with one other $25 million due in July 2023 from Newmont and an extra cost of $75 million contingent upon the homeowners of Galore Creek making a development resolution.
I used to be happy when Don Lindsay, CEO of Teck Company, just lately stated how a lot he likes Galore Creek as an asset, its spectacular grades, and his conviction that will probably be a mine. We share his enthusiasm for the challenge and want Teck and Newmont nicely on their journey to growing this distinctive deposit.
As at all times, I wish to prolong my honest gratitude to the skilled staff of professionals at NOVAGOLD, Donlin Gold and Barrick – in addition to the wonderful drilling contractor groups. We satisfaction ourselves in our dedication to well being and security and acknowledge the significance of the good mutual assist we have now been experiencing with our Native Company companions, Calista and TKC.
I’ve the pleasure of working with an unimaginable Board whose members present distinctive strategic steering and are dedicated to finest governance practices. Their unwavering dedication and engagement are significantly appreciated. Working in Alaska has been a real pleasure and we’re grateful for the State companies’ diligent strategy and adherence to established regulatory procedures.
NOVAGOLD has been blessed with long-term institutional and retail shareholders, a few of whom have been invested within the Firm for nicely over a decade. Prime quality funding teams like Paulson & Co., Constancy Investments, BlackRock, the Saudi Public Funding Fund, First Eagle, and EXOR have been long-term buyers in NOVAGOLD. We’re grateful that they selected to spend money on our Firm, in addition to for his or her continued curiosity and engagement. As stewards of the Firm, we’re dedicated to ship on our technique that was set forth a decade in the past to extend shareholder and stakeholder wealth in a protected and socially accountable method.
We’re very enthusiastic concerning the yr forward with all of the actions and the progress in direction of advancing Donlin Gold up the worth chain and launching the up to date feasibility examine. I want you all good well being and security.
Sincerely,
Gregory A. Lang
President & CEO
Monetary Outcomes
in 1000’s of U.S. {dollars}, apart from per share quantities
| Three months ended February 28, 2022 $ | Three months ended February 28, 2021 $ | |
| Common and administrative expense (1) | 5,177 | 5,329 |
| Share of losses – Donlin Gold | 4,040 | 1,968 |
| Complete working bills | 9,217 | 7,297 |
| Loss from operations | (9,217) | (7,297) |
| Curiosity expense on promissory be aware | (1,512) | (1,434) |
| Accretion of notes receivable | 210 | 854 |
| Different revenue (expense), web | 524 | (79) |
| Web loss | (9,995) | (7,956) |
| Web loss per widespread share, primary and diluted | (0.03) | (0.02) |
| At February 28, 2022 $ | At November 30, 2021 $ | |||
| Money and time period deposits | 155,133 | 169,124 | ||
| Complete property | 188,411 | 198,852 | ||
| Complete liabilities | 119,977 | 120,570 |
(1) Consists of share-based compensation expense of $2,091 and $2,042 for the primary quarter-ended February 28, 2022 and quarter-ended February 28, 2021, respectively.
In the course of the first quarter of 2022, we incurred a web lack of $10.0 million in comparison with a web lack of $8.0 million for the comparable interval in 2021. The rise in web loss is primarily because of the earlier graduation of the Donlin Gold drilling program in 2022, and diminished accretion revenue because of the maturity of the $75 million Newmont be aware in July 2021, partially offset by decrease authorized bills, a rise within the worth of marketable securities, and favorable overseas change actions.
Liquidity and Capital Sources
Within the first quarter of 2022 money and money equivalents decreased by $14.0 million, primarily to fund our share of Donlin Gold, for company administrative bills, and for withholding taxes on share-based funds. The rise in money used within the first quarter of 2022 in comparison with 2021 was because of the earlier graduation of the Donlin Gold drilling program in 2022, the timing of company legal responsibility insurance coverage funds, elevated withholding tax on share-based compensation in 2022 (no money was used for CEO and CFO withholdings in 2021), and no proceeds acquired from time period deposits in 2022 in comparison with $10,000 acquired in 2021.
On the finish of the primary quarter, money and time period deposits have been $155.1 million (Money $77.1 million, time period deposits $78.0 million). An extra cost from Newmont of $25 million comes due in 2023 associated to the sale of NOVAGOLD’s 50 % curiosity within the Galore Creek challenge in 2018, together with a be aware for $75 million contingent upon approval of a Galore Creek challenge development plan by the proprietor(s). At current, we consider we have now adequate working capital accessible to cowl anticipated funding of the Donlin Gold challenge and company common and administrative prices till a call to start engineering and development is reached by the Donlin Gold board for the Donlin Gold challenge, at which level substantial further capital might be required.
2022 Outlook
We anticipate spending roughly $46 million in 2022, which incorporates $13 million for company common and administrative prices; $3 million for withholding taxes on PSUs and different working capital; and $30 million to fund our share of expenditures on the Donlin Gold challenge, together with:
- $17 million for the 2022 drill program (roughly 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 substantiate mineralization continuity and key geological controls in consultant areas of the deposit
- $9 million for exterior affairs, allowing, environmental, land and authorized actions, and
- $4 million for challenge planning and fieldwork (dam and water constructions, metallurgical testing, mining research, hydrogeology and geochemistry, and infrastructure planning).
NOVAGOLD’s major objectives in 2022 are to proceed to advance the Donlin Gold challenge towards a development resolution; keep or improve assist for Donlin Gold among the many challenge’s stakeholders; promote a robust security, sustainability, and environmental tradition; keep a positive popularity for NOVAGOLD, its governance practices and its challenge amongst shareholders; and handle the Firm treasury successfully and effectively. Our operations primarily relate to the supply of challenge milestones, together with the achievement of varied technical, environmental, sustainable improvement, financial and authorized goals, acquiring mandatory permits, completion of feasibility research, preparation of engineering designs and the financing to fund these goals.
Convention Name & Webcast Particulars
NOVAGOLD’s convention name and webcast to debate these outcomes will happen on April 6, 2022 at 8:00 am PT (11:00 am ET). The webcast and convention call-in particulars are offered beneath.
NOVAGOLD’s quarterly reporting schedule for the rest of 2022 might be as follows:
- Q1 2022 – A convention name and webcast might be held on Wednesday, April 6, 2022 at 11 a.m. ET to debate Q1 2022 monetary outcomes.
- Annual Assembly of Shareholders – Wednesday, Might 18, 2022; the assembly might be held at 1 p.m. PT.
- Q2 2022 – Tuesday, June 28, 2022; monetary statements might be launched after market shut and a Donlin Gold challenge replace might be launched on Tuesday, July 5. A convention name and webcast might be held on Wednesday, July 6, 2022 at 11 a.m. ET.
- Q3 2022 – Tuesday, October 4, 2022; monetary statements and a Donlin Gold challenge replace might be launched after market shut. A convention name and webcast might be held on Wednesday, October 5, 2022 at 11 a.m. ET.
About NOVAGOLD
NOVAGOLD is a well-financed treasured metals firm targeted on the event of its 50 percent-owned Donlin Gold challenge in Alaska, one of many most secure mining jurisdictions on the planet. With roughly 39 million ounces of gold within the Measured and Indicated Mineral Useful resource classes, inclusive of Confirmed and Possible Mineral Reserves (541 million tonnes at a mean grade of roughly 2.24 grams per tonne within the Measured and Indicated Useful resource classes on a one hundred pc foundation), 4 Donlin Gold is regarded to be one of many largest, highest-grade, and most potential identified open-pit gold deposits on the planet.
In keeping with the 2021 Technical Report and the S-Ok 1300 Report, as soon as in manufacturing, Donlin Gold is anticipated to provide a mean of multiple million ounces per yr over a 27-year mine life on a one hundred pc foundation. The Donlin Gold challenge has substantial exploration potential past the designed footprint which at the moment covers three kilometers of an roughly eight-kilometer-long gold-bearing development. Present actions at Donlin Gold are targeted on State allowing, optimization work, neighborhood outreach, and workforce improvement in preparation for the eventual development and operation of this challenge. With a robust steadiness sheet, NOVAGOLD is well-positioned to fund its share of allowing and optimization development efforts on the Donlin Gold challenge.
Scientific and Technical Info
Sure scientific and technical data contained herein with respect to the Donlin Gold challenge is derived from the 2021 Technical Report and the S-Ok 1300 Report 5 . Henry Kim, P.Geo., Senior Useful resource Geologist, Wooden Canada Restricted; Mike Woloschuk, P.Eng., VP World Enterprise Improvement & Consulting, Wooden Group USA, Inc.; and Kirk Hanson, MBA, P.E., Technical Director, Open Pit Mining, Wooden Group USA, Inc. are the Certified Individuals liable for the preparation of the 2021 Technical Report, and every is an unbiased Certified Particular person as outlined by Nationwide Instrument 43-101 (“NI 43-101”). Wooden ready the S-Ok 1300 Report.
Paul Chilson, P.E., who’s the Supervisor, Mine Engineering for NOVAGOLD and a Certified Particular person underneath NI 43-101, has authorized and verified the scientific and technical data associated to the 2021 Donlin Gold challenge drill program, the 2021 Technical Report and the S-Ok 1300 Report contained on this media launch.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Company Communications
604-669-6227 or 1-866-669-6227
Cautionary Word Relating to Ahead-Wanting Statements
This media launch consists of sure “forward-looking data” and “forward-looking statements” (collectively “forward-looking statements”) throughout the which means of relevant securities laws, together with the US Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements are regularly, however not at all times, recognized by phrases corresponding to “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “potential”, and comparable expressions, or statements that occasions, circumstances, or outcomes “will”, “might”, “might”, “would” or “ought to” happen or be achieved. Ahead-looking statements are essentially based mostly on a number of opinions, estimates and assumptions that administration of NOVAGOLD thought-about applicable and affordable as of the date such statements are made, are topic to identified and unknown dangers, uncertainties, assumptions, and different components that will trigger the precise outcomes, exercise, efficiency, or achievements to be materially totally different from these expressed or implied by such forward-looking statements. All statements, apart from statements of historic truth, included herein are forward-looking statements. These forward-looking statements embrace statements concerning the anticipated outcomes for the 2022 drill packages; the anticipated timing of sure judicial and/or administrative choices; the 2022 Outlook; the timing and potential for an up to date feasibility on the challenge; our objectives for the rest of 2022; anticipated advantages from the 2017, 2020, 2021, and 2022 drill packages together with an improved geological mannequin for Donlin Gold; ongoing assist offered to key stakeholders together with Native Company companions; the potential affect of the COVID-19 pandemic on the event of Donlin Gold; the potential improvement and development of Donlin Gold; the sufficiency of funds to proceed to advance improvement of Donlin Gold; perceived benefit of properties; mineral reserve and mineral useful resource estimates; Donlin Gold’s capability to safe the permits wanted to assemble and function the Donlin Gold challenge in a well timed method, if in any respect; authorized challenges to Donlin Gold’s current permits; the Donlin Gold LLC Board approval to advance Donlin Gold up the worth chain; the success of the strategic mine plan for Donlin Gold; the end result of the deliberate tight spaced and exploration drilling; and the conversion of Galore Creek right into a mine and the receipt of the $75 million contingent cost from Newmont. As well as, any statements that discuss with expectations, intentions, projections or different characterizations of future occasions or circumstances are forward-looking statements. Ahead-looking statements will not be historic details however as an alternative symbolize the expectations of NOVAGOLD administration’s estimates and projections concerning future occasions or circumstances on the date the statements are made.
Necessary components that might trigger precise outcomes to vary materially from expectations embrace the necessity to acquire further permits and governmental approvals; the timing and chance of acquiring and sustaining permits essential to assemble and function; the necessity for extra financing to discover and develop properties and availability of financing within the debt and capital markets; the coronavirus world pandemic (COVID-19); uncertainties concerned within the interpretation of drill outcomes and geological checks and the estimation of reserves and assets; adjustments in mineral manufacturing efficiency, exploitation and exploration successes; adjustments in nationwide and native authorities laws, taxation, controls or laws and/or adjustments within the administration of legal guidelines, insurance policies and practices, expropriation or nationalization of property and political or financial developments in the US or Canada; the necessity for continued cooperation between Barrick and NOVAGOLD for the continued exploration, improvement and eventual development of the Donlin Gold property; the necessity for cooperation of presidency companies and Native teams within the improvement and operation of properties; dangers of development and mining tasks corresponding to accidents, tools breakdowns, unhealthy climate, illness pandemics, non-compliance with environmental and allow necessities, unanticipated variation in geological constructions, ore grades or restoration charges; surprising price will increase, which might embrace important will increase in estimated capital and working prices; fluctuations in metallic costs and foreign money change charges; whether or not a optimistic development resolution might be made concerning Donlin Gold; and different dangers and uncertainties disclosed in NOVAGOLD’s most up-to-date experiences on Types 10-Ok and 10-Q, significantly the “Danger Elements” sections of these experiences and different paperwork filed by NOVAGOLD with relevant securities regulatory authorities occasionally. Copies of those filings could also be obtained by visiting NOVAGOLD’s web site at www.novagold.com , or the SEC’s web site at www.sec.gov , or at www.sedar.com . The forward-looking statements contained herein mirror the beliefs, opinions and projections of NOVAGOLD on the date the statements are made. NOVAGOLD assumes no obligation to replace the forward-looking statements of beliefs, opinions, projections, or different components, ought to they modify, besides as required by legislation.
