NOVAGOLD RESOURCES INC. (TSX:NG) (NYSE
American:NG) (“NOVAGOLD” or “the Company”) is pleased to announce
that the transaction with Newmont Mining Corporation (NYSE:NEM)
(“Newmont”), in which NOVAGOLD agreed to sell its 50% interest in
the Galore Creek project (“Project”), owned by the Galore Creek
Partnership (GCP) for total consideration of up to $275 million,
announced on July 26, 2018, has closed. As contemplated by the
Share Purchase Agreement, NOVAGOLD has received $100 million and
transferred its interest in the Project and the Copper Canyon
property to a subsidiary of Newmont. NOVAGOLD anticipates applying
the proceeds from the sale toward the development of its 50%-owned
Donlin Gold project in Alaska.
Scientific and Technical Information
Some scientific and technical information contained herein with
respect to the Donlin Gold project is derived from the “Donlin
Creek Gold Project Alaska, USA NI 43-101 Technical Report on Second
Updated Feasibility Study” prepared 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 and
verified the scientific and technical information related to the
Donlin Gold project contained in this press release.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company focused on
the permitting and 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 resource categories, inclusive of proven and probable
reserves (541 million tonnes at an average grade of approximately
2.2 grams per tonne), Donlin Gold is regarded to be one of the
largest, highest grade, and most prospective known gold deposits in
the world. According to the Second Updated Feasibility Study (as
defined below), 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 only three kilometers of an approximately
eight-kilometer long gold-bearing trend. Current activities at
Donlin Gold are focused on permitting, optimization work, community
outreach and workforce development in preparation for the
construction and operation of this top tier asset. With a strong
balance sheet, NOVAGOLD is well positioned to stay the course by
completing permitting and advancing optimization efforts at the
Donlin Gold project.
NOVAGOLD Contacts:Mélanie Hennessey Vice
President, Corporate Communications
Allison PettitInvestor Relations Manager
604-669-6227 or 1-866-669-6227
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, statements regarding the application of
any proceeds from the sale of NOVAGOLD’s interest in Galore Creek
and the Copper Canyon mineral property, statements regarding the
permitting, potential development, exploration, construction and
operation of Donlin Gold and statements relating to NOVAGOLD’s
future operating and financial performance, production estimates
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”, “would” or “should”
occur or be achieved. These forward-looking statements may include
statements regarding; exploration potential of Donlin Gold; mine
life and production estimates at Donlin Gold; perceived merit of
properties; anticipated permitting timeframes; exploration results
and budgets; mineral reserve and resource estimates; work programs;
capital expenditures; timelines; strategic plans; benefits of the
project; 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 interpretation of the drill results,
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 exploration and 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, 2017 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. Under Canadian rules, estimated "inferred
mineral resources” may not form the basis of feasibility or
pre-feasibility studies except in rare cases. 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. Donlin Gold does
not 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.
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