Barrick Gold Corporation (TSX:ABX) (NYSE:ABX) and
NOVAGOLD RESOURCES INC. (TSX:NG) (NYSE
American:NG) are pleased to announce that the U.S.
Army Corps of Engineers (the Corps) and the U.S. Bureau of Land
Management (BLM) have issued a single Federal Record of Decision
(ROD) for the Donlin Gold project following completion of the
federal National Environmental Policy Act process. Along with the
ROD, the Corps issued a combined permit under Section 404 of the
Clean Water Act and Section 10 of the Rivers and Harbors Act.
Additionally, the BLM issued the Offer to Lease for the
right-of-way for those portions of the natural gas pipeline that
would cross federal lands.
“The issuance of the Donlin Gold ROD and key project permits is
a significant milestone for both partners,” said Rob Krcmarov,
Executive Vice President, Exploration and Growth for Barrick. “It
would not have been possible without exceptional professionalism of
the Donlin Gold team as well as members of the Corps, BLM, and
other federal and state agencies. As one of the largest undeveloped
gold deposits in the world, Donlin Gold represents exceptional
optionality within our portfolio. Now, with key permits in hand, we
can concentrate on further exploring ways of reducing initial
capital and unlocking the value of this asset for all of our
partners, in keeping with our deep commitment to community
engagement and environmental stewardship.”
“The permitting process for the Donlin Gold project was very
comprehensive and thorough,” said Greg Lang, NOVAGOLD’s President
and Chief Executive Officer. “At various stages of this multi-year
undertaking, all stakeholders had multiple opportunities to engage
and make meaningful contributions to the final outcome. We would
like to extend special gratitude to the Corps, BLM and other
cooperating agencies for their successful navigation of this
complex process. We would also like to thank Calista Corporation
and The Kuskokwim Corporation, our Native Corporation partners, for
their unwavering support and commitment to the project.
Congratulations to the Donlin Gold team on achieving these
important milestones. The ROD is a very detailed document, which
serves as the foundation for issuance of the federal permits
required for us to build a technically, environmentally, and
financially responsible, as well as a socially sustainable,
operation.”
The Path Forward
As one of the world’s largest and highest grade undeveloped open
pit gold resources, Donlin Gold is well positioned to benefit from
rising gold prices. Receipt of the ROD and federal permits
represents a very important milestone in its development. Now,
Barrick and NOVAGOLD can concentrate on wrapping up the
optimization studies and value enhancing options designed to reduce
initial capital outlays and improve project economics. Donlin Gold
anticipates providing further details in the fourth quarter on the
path forward to update the 2011 feasibility study.
About the Donlin Gold Project
Donlin Gold is located in Alaska, the second largest
gold-producing state in the U.S. With approximately 39 million
ounces of gold grading 2.24 grams per tonne in the measured and
indicated resource categories (100 percent basis),1 it hosts one of
the largest and highest-grade undeveloped open pit gold endowments
in the world. According to the Second Updated Feasibility Study (as
defined above), once in production, Donlin Gold has the potential
to produce, on average, 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 mine
footprint which currently covers only three kilometers of an
approximately eight-kilometer long gold-bearing trend. Current
activities at Donlin Gold are focused on optimization work, and
community outreach.
Donlin Gold LLC is an Alaska-based company owned equally by
NovaGold Resources Alaska, Inc. (NOVAGOLD) and Barrick Gold U.S.
Inc. (Barrick), which are wholly owned subsidiaries of NOVAGOLD
RESOURCES INC., and Barrick Gold Corporation, respectively.
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 for NOVAGOLD 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 in 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.
Barrick Contacts:INVESTOR CONTACT:Deni Nicoski
Senior Vice President Investor Relations Telephone: +1 416 307-7474
Email: dnicoski@barrick.com
MEDIA CONTACT:Andy Lloyd Senior Vice President
Communications Telephone: +1 416 307-7414
Email: alloyd@barrick.com Toll Free: 1-800-720-7415
www.barrick.com
NOVAGOLD Contacts:
Mélanie Hennessey Vice President, Corporate Communications
Allison PettitInvestor Relations Manager
604-669-6227 or 1-866-669-622
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 a number of opinions, estimates and
assumptions that management of NOVAGOLD and Barrick 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 advancement of
optimization studies at Donlin Gold; potential opportunities to
enhance or maximize the value of Donlin Gold; the timing and
likelihood of further permits; opportunities to reduce capital
outlays and improve project economics; the potential completion of
an updated feasibility study on the project; mine life and
production estimates at Donlin Gold; the potential development of
Donlin Gold; perceived merit of properties; mineral reserve and
resource estimates; work programs; capital expenditures; timelines;
strategic plans; benefits of the Donlin Gold project and market
prices for precious and base 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 management of NOVAGOLD and
Barrick’s expectations, estimates and projections regarding future
events or circumstances.
Important factors that could cause actual results to differ
materially from expectations include the need to obtain permits and
governmental approvals; the timing and likelihood of further
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 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 reports and documents filed by NOVAGOLD and Barrick
with applicable securities regulatory authorities from time to
time. The forward-looking statements contained herein reflect the
beliefs, opinions and projections of NOVAGOLD and Barrick on the
date the statements are made. NOVAGOLD and Barrick assume 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 and Barrick 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.
_______________________
1 Donlin Gold data as per the second updated
feasibility study effective November 18, 2011, as amended January
20, 2012 (“Second Updated Feasibility Study”). 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”).
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