NOVAGOLD RESOURCES INC. (NYSE:NG) (TSX:NG)
(“NOVAGOLD”) and its partner Barrick Gold
Corporation (NYSE:ABX) (TSX:ABX) (“Barrick”) are pleased to
announce that Donlin Gold LLC, the co-owned operating company which
is advancing the Donlin Gold project in Alaska, has approved a
drill program designed to further optimize the project.
After completing extensive analysis of the project’s parameters,
Barrick and NOVAGOLD concluded that the potential exists to enhance
the project economics through a more cost-effective project
execution plan that could substantially reduce upfront capital. To
this end and to support this effort, the partners have approved an
$8-million budget (100% basis) for a drill program designed to
collect geologic and geotechnical data this year.
The work of technical experts from Barrick and NOVAGOLD has been
focused on ways to capitalize on the flexibility inherent in Donlin
Gold’s unique characteristics of large size, superior grade and
exceptional exploration upside. The approved program has been
developed as a direct consequence of very encouraging results that
were achieved from a series of wide-ranging optimization
evaluations of the ore body resulting in an operationally sound and
potentially financially attractive development
approach. Meanwhile, the Donlin Gold team remains focused on
completing the on-going permitting activities, which are advancing
as planned.
“We are encouraged by the prospects to further optimize
the Donlin Gold project, which has the potential to be the
largest pure gold mine in the world –in one of the safest
jurisdictions of the world. Donlin Gold is a unique asset,
which provides Barrick stakeholders with significant
optionality,” said Kelvin Dushnisky, President of Barrick.
“This jointly-developed program is a reflection of our partnership
approach as we work to advance Donlin Gold with financial
discipline and with a strong focus on environmental and social
responsibility.”
Greg Lang, NOVAGOLD’s President and Chief Executive Officer,
added the following: “Donlin Gold’s size, grade, production
profile, exploration potential, mine life, community support and
jurisdictional safety render it a unique asset in the gold
industry. Both partners envision Donlin Gold to be a pacesetter in
the mining sector and are completely aligned in their objectives to
optimize the project. As permitting activities approach their
conclusion, we believe that the approved field work will
reaffirm Donlin Gold’s status as the asset best positioned to
capitalize on the resumption of the long-term bull market in
gold.”
Permitting Activities
Barrick and NOVAGOLD are encouraged to see significant progress
as they work through the final stages of permitting and completing
these activities in the most efficient manner possible. The
project’s lead permitting agency, the U.S. Army Corps of Engineers
(the “Corps”), is working with the cooperating agencies to complete
the final Environmental Impact Statement (EIS) by addressing public
comments received on the Donlin Gold draft EIS. As disclosed in
their latest schedule, the Corps anticipates the publication of the
final EIS in early 2018. Work also continues with state and federal
agencies to advance all other required permits, including the Clean
Water Act Sections 404 and 10 permit, integrated waste management
permit, water discharge permit, air quality permit, dam safety
approvals, water use permits, and fish habitat permits, as well as
the land and shoreline lease and right-of-way approvals.
About the Donlin Gold Project
The Donlin Gold project has 39,000,000 ounces of gold measured
and indicated resources1 with a grade averaging 2.2 grams of
gold per tonne (100% basis), making it one of the largest and
highest-quality undeveloped gold deposits in the world, located in
Alaska, the second largest gold-producing state in the United
States. As per the Second Updated Feasibility Study (defined
below), it is projected to average approximately 1,100,000 ounces
of gold production per year (with initial production averaging
1,500,000 ounces per year) over an anticipated 27-year life. The
mineral resources are encompassed in only three kilometers of an
eight-kilometer gold mineralized trend, providing the owners with
exceptional exploration opportunities. The project appreciates the
strong support provided from its native corporation partners, as
well as from the state government and its representatives.
Scientific and Technical Information
Scientific and technical information contained herein with
respect to Donlin Gold is derived from the “Donlin Creek Gold
Project Alaska, USA NI 43-101 Technical Report on Second Updated
Feasibility Study” compiled by AMEC with an effective date of
November 18, 2011, as amended January 20, 2012 (the “Second
Updated Feasibility Study”). Kirk Hanson, P.E., Technical
Director, Open Pit Mining, North America, (AMEC, Reno), and Gordon
Seibel, R.M. SME, Principal Geologist, (AMEC, Reno) are the
Qualified Persons responsible for the preparation of the
independent technical report, each of whom are independent
“qualified persons” as defined by NI 43-101.
Clifford Krall, P.E., who is the Mine Engineering Manager for
NOVAGOLD and a “qualified person” under NI 43-101, has approved the
scientific and technical information related to the Donlin Gold
project contained in this press release.
________________________________1 Donlin Gold data as per
the Second Updated Feasibility Study effective November 18, 2011,
as amended January 20, 2012. Represents 100% of measured and
indicated resources (541 million tonnes at an average grade of
approximately 2.2 grams per tonnes) of which NOVAGOLD’s share
represents 50%.
Cautionary Note Regarding
Forward-Looking Statements
This press 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. All statements,
other than statements of historical fact, included herein
including, without limitation, the enhancement of the Donlin Gold
Project economics, timing of permitting and potential development
of Donlin Gold are forward-looking statements. 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”, or
“should” occur or be achieved. These forward-looking statements may
include statements regarding the 2017 outlook; exploration
potential of Donlin Gold; perceived merit of properties;
anticipated timing and content of an updated feasibility study;
anticipated permitting timeframes; exploration results and budgets;
mineral reserve and resource estimates; work programs; capital
expenditures; timelines; strategic plans; completion of
transactions; market prices for precious and base metals; or other
statements that are not statements of fact. Forward-looking
statements involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from NOVAGOLD’s expectations
include the uncertainties involving the need to obtain permits and
governmental approvals; the need for additional financing to
explore and develop properties and availability of financing in the
debt and capital markets; uncertainties involved in the
interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for continued
cooperation with Barrick Gold Corporation for the continued
development 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,
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; and other
risk and uncertainties disclosed in NOVAGOLD’s Annual Report filed
on Form 10-K for the year-ended November 30, 2016 with the United
States Securities and Exchange Commission, Canadian securities
regulators, and in other NOVAGOLD reports and documents filed with
applicable securities regulatory authorities from time to time.
NOVAGOLD’s forward-looking statements reflect the beliefs, opinions
and projections 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.
Cautionary Note to United States
Investors
This press release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of U.S. securities
laws. Unless otherwise indicated, all resource and reserve
estimates included in this press release have been prepared in
accordance with Canadian National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”) and the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM)—CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended (“CIM Definition Standards”). NI 43-101 is
a rule developed by the Canadian Securities Administrators which
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United States Securities and Exchange
Commission (SEC), and resource and reserve information contained
herein may not be comparable to similar information disclosed by
U.S. companies. In particular, and without limiting the generality
of the foregoing, the term "resource” does not equate to the term
"reserves”. Under U.S. standards, mineralization may not be
classified as a "reserve” unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. The
SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources”, "indicated
mineral resources” or "inferred mineral resources” or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves” by U.S. standards in documents
filed with the SEC. Investors are cautioned not to assume that all
or any part of “measured” or “indicated resources” will ever be
converted into “reserves”. Investors should also understand that
"inferred mineral resources” have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of the
“inferred resources” will ever be upgraded to “indicated resource”,
“measured resource”, or “mineral reserve” status. Under Canadian
rules, estimated "inferred mineral resources” may not form the
basis of feasibility or pre-feasibility studies except in rare
cases. Investors are cautioned not to assume that all or any part
of an "inferred mineral resource” exists or is economically or
legally mineable. Disclosure of "contained ounces” in a resource is
permitted disclosure under Canadian regulations; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves” by SEC standards as in-place tonnage and
grade without reference to unit measures. The requirements of NI
43-101 for identification of "reserves” are also not the same as
those of the SEC, and reserves reported by NOVAGOLD in compliance
with NI 43-101 may not qualify as "reserves” under SEC standards.
Neither Donlin Gold nor Galore Creek have known reserves, as
defined under SEC Industry Guide 7. Accordingly, information
concerning mineral deposits set forth herein may not be comparable
with information made public by companies that report in accordance
with U.S. standards.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
Erin O’Toole
Senior Stakeholder Relations Specialist
604-669-6227 or 1-866-669-6227
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