NOVAGOLD RESOURCES INC. (“NOVAGOLD” or the “Company”) (NYSE
American, TSX: NG) today announced that its flagship Donlin Gold
project, which NOVAGOLD owns equally with Barrick Gold Corp.
(“Barrick”), received the final State Right-of-Way (ROW)
authorization for the buried natural gas pipeline, issued by
the Alaska Department of Natural Resources (ADNR) on January 17,
2020. The ADNR also issued final authorization of the easement,
land leases, land use permits, and material site authorizations for
the proposed transportation facilities, and easement for the fiber
optic cable on State lands on January 2, 2020. Additionally,
ADNR denied an appeal and affirmed the Division of Mining, Land,
and Water’s original January 18, 2019 approval of Donlin Gold LLC’s
Reclamation Plan and its accompanied permit.
“We are very pleased to see the issuance of key
transportation and energy infrastructure approvals for Donlin
Gold,” said Greg Lang, President and CEO. “These final State land
authorizations are important for the advancement of Donlin Gold.
These achievements would not have been possible
without the dedication of the professionals at the Alaska
Department of Natural Resources to advance permits
and approvals for the project in a transparent as well as
environmentally and socially responsible manner with strong
adherence to governance best practices. We are proud of the
work supporting the issuance of these permits carried out
by the teams at Donlin Gold, Barrick and NOVAGOLD and
appreciate the support and contributions from our Native
Corporation partners, Calista Corporation and The Kuskokwim
Corporation.”
The receipt of the ROW authorization and other land
leases and permits for the transportation and pipeline facilities
are the latest in a growing list of Donlin Gold’s permitting
approvals, including the jointly issued Federal Record of Decision
received in August 2018. A number of other key State permits have
also been finalized for the project, including the Alaska Pollutant
Discharge Elimination System (APDES) water discharge permit,
Prevention of Significant Deterioration (PSD) major source air
quality permit, waste management permit, Reclamation Plan approval
permit, and fish habitat permits for the mine site and
transportation corridor.
A buried natural gas pipeline delivers environmental benefits,
cost efficiency and capability to transport large quantities of
natural gas to power the remote project site. The proposed 316-mile
pipeline would be 14 inches in diameter, typically buried at three
to six feet deep, providing a reliable natural gas supply
regardless of weather or season to support power generation at the
Donlin Gold site.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company focused on
the 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 mineral
resource categories, inclusive of proven and probable mineral
reserves (541 million tonnes at an average grade of approximately
2.24 grams per tonne in the measured and indicated resource
categories on a 100% basis),1 Donlin Gold is regarded to be one of
the largest, highest-grade, and most prospective known open pit
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 1.9 miles (3 km) of
an approximately five-mile (8 km) long gold-bearing trend. Current
activities at Donlin Gold are focused on state permitting,
optimization work, community outreach and workforce development in
preparation for the construction and operation of this project.
With a strong balance sheet, NOVAGOLD is well-positioned to fund
its share of permitting and optimization advancement efforts at the
Donlin Gold project.
1 Donlin Gold data as per the Second Updated Feasibility Study
(as defined herein). Donlin Gold measured resources of
approximately 8 Mt grading 2.52 g/t and indicated resources of
approximately 534 Mt grading 2.24 g/t, each on a 100% basis.
Mineral resources have been estimated in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”).
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.
NOVAGOLD Contacts:Mélanie Hennessey Vice
President, Corporate Communications
Jason Mercier Manager, Investor Relations
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. 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. Forward-looking statements are
necessarily based on several opinions, estimates and assumptions
that management of NOVAGOLD considered appropriate and reasonable
as of the date such statements are made, are subject to known and
unknown risks, uncertainties, assumptions and other factors that
may cause the actual results, activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking statements. All statements, other than statements
of historical fact, included herein are forward-looking statements.
These forward-looking statements include statements regarding the
potential development and construction of Donlin Gold; perceived
merit of properties; potential benefits of a buried natural gas
pipeline; the advancement of optimization studies at Donlin Gold;
potential opportunities to enhance or maximize the value of Donlin
Gold; sufficiency of funds for the Company to advance Donlin Gold
without additional financing; the timing and likelihood of permits;
the expectation regarding issuance of the dam safety
certifications; opportunities to reduce capital outlays and improve
project economics; mine life and production estimates at Donlin
Gold; the exploration potential of Donlin Gold; mineral reserve and
resource estimates; work programs; capital expenditures; timelines;
strategic plans; and benefits of the Donlin Gold project and market
prices for precious metals. In addition, any statements that refer
to expectations, intentions, projections or other characterizations
of future events or circumstances are forward-looking statements.
Forward-looking statements are not historical facts but instead
represent NOVAGOLD’s management expectations, estimates and
projections regarding future events or circumstances on the date
the statements are made.
Important factors that could cause actual results to differ
materially from expectations include the need to obtain additional
permits and governmental approvals; the timing and likelihood of
permits; 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 between NOVAGOLD and
Barrick Gold Corp. for the continued exploration, development and
eventual construction 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, natural disasters, climate change, 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; whether a positive construction
decision will be made regarding Donlin Gold; and other risks and
uncertainties disclosed in reports and documents filed by NOVAGOLD
with applicable securities regulatory authorities from time to
time. The forward-looking statements contained herein reflect the
beliefs, opinions and projections of NOVAGOLD 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) Industry Guide 7 (“SEC Industry Guide 7”), and
resource and reserve information contained herein may not be
comparable to similar information disclosed by U.S. companies.
NOVAGOLD’s disclosure concerning Reserve & Resource Estimates
remains consistent with NI 43-101. Under SEC Industry Guide 7,
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. SEC Industry Guide 7 normally does
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” under SEC Industry Guide 7 in documents filed with the
SEC. 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” under SEC Industry Guide 7 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 SEC Industry Guide 7, and reserves
reported by NOVAGOLD in compliance with NI 43-101 may not qualify
as "reserves” under SEC Industry Guide 7. 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 SEC Industry Guide 7.
On October 31, 2018, the SEC adopted a final rule (“New Final
Rule”) that will replace SEC Industry Guide 7 with new disclosure
requirements that are more closely aligned with current industry
and global regulatory practices and standards, including NI 43-101.
Companies must comply with the New Final Rule for the company’s
first fiscal year beginning on or after January 1, 2021, which for
NOVAGOLD would be the fiscal year beginning December 1, 2021. The
New Final Rule provides that SEC Industry Guide 7 will remain
effective until all registrants are required to comply with the New
Final Rule, at which time SEC Industry Guide 7 will be rescinded.
While early voluntary compliance with the New Final Rule is
permitted, NOVAGOLD has not elected to comply with the New Final
Rule at this time.
Novagold Resources (AMEX:NG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Novagold Resources (AMEX:NG)
Historical Stock Chart
From Apr 2023 to Apr 2024