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NOVAGOLD Announces Third Quarter 2013 Financial Results and Reports on the Advancement of Donlin Gold and Galore Creek Projects

NOVAGOLD Announces Third Quarter 2013 Financial Results and Reports on the Advancement of Donlin Gold and Galore Creek Projects
  • Permitting at Donlin Gold is proceeding as planned; preparation of the Environmental Impact Statement (EIS) is on track
  • Exploration program at Galore Creek is ahead of objectives while remaining under budget
  • With over $200 million in cash and term deposits, NOVAGOLD remains financially strong to advance Donlin Gold through permitting and fund requisite activities at Galore Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 9, 2013) - NOVAGOLD RESOURCES INC. (TSX:NG)(NYSE MKT:NG) announced results for its third quarter ended August 31, 2013 and provided an update on the advancement of permitting at its 50%-owned Donlin Gold project in Alaska and the drilling program at its 50%-owned Galore Creek project in British Columbia. NOVAGOLD completed the quarter with approximately US$206 million in cash and term deposits.

Details of the Company's financial results are described in the Unaudited Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis which, together with further details on each of the Company's projects, including resource and reserve estimates, will be available on the Company's website at, on SEDAR at, and on EDGAR at All amounts are in Canadian dollars unless otherwise stated and all resource and reserve estimates are shown on a 100% project basis.

During the Third Quarter in 2013, NOVAGOLD:

  • Received the Donlin Gold EIS Scoping Summary Report which was filed by the US Army Corps of Engineers (the Corps), the lead permitting agency
  • Participated in technical workshops with the applicable agencies reviewing core areas of baseline environmental and social data related to the Donlin Gold EIS
  • Engaged with Native Corporations and other stakeholders of Donlin Gold in conjunction with community initiatives related to the EIS process
  • Reviewed project alternatives with the Corps and applicable agencies
  • Completed the 2013 Galore Creek exploration program under budget, exceeding objectives with more than 11,000 meters drilled

President's Message

With two well-established world-class assets and a strong balance sheet, NOVAGOLD is well positioned, even in the current challenging market environment, to execute on its stated objective of maximizing shareholder value. Donlin Gold and Galore Creek are progressing along their respective paths towards future development. With its treasury exceeding $200 million, NOVAGOLD is advancing Donlin Gold through the permitting process and enhancing the value of Galore Creek through the implementation of a modest drilling and evaluation campaign. Both programs are being executed with a great deal of financial discipline and quality control.

At Donlin Gold, we remain on track towards securing all the necessary permits as scheduled. The Corps filed the Donlin Gold EIS Scoping Summary Report reflecting the comments which had been raised during the public scoping meetings in the first quarter of 2013. Four technical workshops were held with the permitting agencies and Donlin Gold on the core areas of the environmental and social baseline studies. The permitting agencies welcomed this approach and appreciated the opportunity to familiarize themselves with the extensive body of work completed on Donlin Gold to-date, including alternative concepts that had been considered in developing the proposed project. Through these and other efforts, Donlin Gold continues to maintain a strong working relationship with the applicable agencies to ensure that the EIS and the permitting processes are completed on schedule to the satisfaction of all stakeholders. We were particularly pleased that Calista and The Kuskokwim Corporation (TKC), the Alaska Native Corporations that own mineral and surface rights to Donlin Gold, were actively involved in the EIS meetings. As an individual who has permitted several large mining projects in the United States, I continue to be encouraged by the constructive atmosphere of the permitting process at Donlin Gold. We are on the right track. 

In light of the political, social and economic instability of many gold producing countries, particularly many parts of Africa, South America and several parts of Asia, we feel very fortunate that our world-class assets are located in two of the safest geo-political jurisdictions. Jurisdictional safety and stability have become very important investment criteria for the majority of fund managers. With very few high-quality and significant gold development assets in the world and even fewer in stable jurisdictions, NOVAGOLD is unique. Donlin Gold, with approximately 34 million ounces of gold in Proven and Probable reserves averaging 2.1 grams per tonne, is considered to be exceptionally high-grade for a large-scale bulk mining operation and thus one of the most valuable undeveloped open-pit gold deposits in the world. Furthermore, with the identified resources located within only three kilometers of the eight-kilometer strike length identified on the property, Donlin Gold also remains as one of the most significant exploration targets in the world. Once in operation, it is expected to produce approximately 1,500,000 ounces of gold per year in the first five full years of production. Assuming no future expansions, it is expected to average about 1,100,000 ounces per year over its presently scheduled 27-year life. With life of mine all-in sustaining costs of $735 per ounce of gold, well below the industry average of $1,223 per ounce of gold, Donlin Gold is regarded to be among the lowest-cost future producers in the world.

Earlier this year, we reported exceptional results from last year's extensive drilling program at Galore Creek. The 2012 in-fill drilling campaign not only confirmed previously reported drill results, but demonstrated the potential for substantial extension of the mineralized area beyond the limits of the current pre-feasibility study (PFS) pit. Additionally, Galore Creek made a new discovery called the Legacy zone, which is 700-meters long and adjacent to the Central pit. At the end of the third quarter, we completed more than 11,000 meters of drilling at Galore Creek, ahead of schedule and below budget. While the 2012 drilling program was targeted to upgrade Inferred resources to the Measured and Indicated category, the 2013 drill program was intended to assess the extent of the new Legacy zone mineralization and evaluate its impact on future mine and project design. NOVAGOLD and its joint venture partner Teck will be incorporating the 2012 and 2013 results into a work-plan for 2014. If developed as envisioned in the PFS, Galore Creek is expected to become one of the largest and lowest-cost copper mines in Canada. This factor is particularly important considering the critical challenges copper miners face today in jurisdictions such as the Democratic Republic of Congo, Indonesia, Argentina, Mongolia, Chile and Peru. Our intention, however, remains to sell this asset and secure a fair value for our share of Galore Creek to re-deploy the proceeds to advance Donlin Gold, NOVAGOLD's principal project.

Our team is truly fortunate to have a loyal, engaged and tremendously supportive group of shareholders. We all share the vision that NOVAGOLD is unique in providing the best and safest leverage to gold in the world. I would like to extend special gratitude to Calista and TKC, important stakeholders in Donlin Gold, for their steadfast support and active involvement in the permitting process. My appreciation goes to NOVAGOLD's Board of Directors for its guidance and shareholder-friendly as well as value-focused vision; to our teams at Donlin Gold and Galore Creek Mining Corporation, for their continued dedication and extensive expertise in the management of our significant assets; the communities and governments where we operate, who give us the foundation of support without which we could not develop our projects; and finally, our employees for their strong commitment and hard work.

Results of Operations

in thousands of Canadian dollars, except for per share amounts
  Three months
August 31,
  Three months
August 31,
  Nine months
August 31,
  Nine months
August 31,
Expenses (1) 3,612   6,880   11,022   19,630  
Share-based payments 1,889   2,936   8,935   15,493  
Finance costs, net 1,527   3,826   8,593   10,275  
Foreign exchange (gain) loss (81 ) 8,422   (8,937 ) (10,188 )
Operating loss 15,822   30,169   33,251   63,878  
Debt settlement and derivative fair value movement (gain) loss 3   (4,844 ) (2,897 ) (50,043 )
Loss (gain) on derivative liability -   (5,321 ) 2,455   (37,560 )
Write-down of assets 3,311   -   3,311   -  
Gain on spin-out of NovaCopper to shareholders -   -   -   (71,641 )
Income (loss) for the period (20,663 ) (21,457 ) (44,713 ) 89,550  
Income (loss) per share                
  - Basic (0.07 ) (0.08 ) (0.14 ) 0.33  
  - Diluted (0.07 ) (0.08 ) (0.14 ) 0.17  
(1) General and administrative, salaries and severance, professional fees, and corporate and development expenses.

Financial Results

For the three and nine months ended August 31, 2013, the Company reported a net loss of $20.7 million ($0.07 basic and diluted loss per share) and $44.7 million ($0.14 basic and diluted loss per share), compared to a net loss of $21.5 million ($0.08 basic and diluted loss per share) and net income of63160946 20140116152412 SAVE THE DATE: NOVAGOLD Fourth Quarter 2013 Results Release, Conference Call and Webcast SAVE THE DATE: NOVAGOLD Fourth Quarter 2013 Results Release, Conference Call and Webcast MKT-104389-13899146527551744658 MKT-104389-13899146527551744658 NG:CA TSXTSX01 NG:CA TSXTSX01 NG NG MEETINGS INVESTOP EARNINGS FINANCIL NYSE0001 mwi 20140116152412 en-US

SAVE THE DATE: NOVAGOLD Fourth Quarter 2013 Results Release, Conference Call and Webcast



VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 16, 2014) - NOVAGOLD RESOURCES INC. (TSX:NG)(NYSE MKT:NG)(NYSE Amex:NG) will release its fourth quarter financial results after market close February 11, 2014. The conference call and webcast, to discuss these results, will take place February 12, 2014 at 8:00 am PST (11:00 am EST). The webcast and conference call-in details are provided below.

North American callers: 1-866-318-8611
International callers: 1-617-399-5130
Participant Passcode: 11377161

The webcast will be archived on NOVAGOLD's website for one year and the conference call replay will be available for 14 days. To access the conference call replay please dial 1-888-286-8010 (North America), or 1-617-801-6888 (International), followed by your Access PIN: 47899539. For a transcript of the call please email

Melanie Hennessey
Vice President, Corporate Communications
604-669-6227 or 1-866-669-6227

Erin O'Toole
Analyst, Investor Relations
604-669-6227 or 1-866-669-6227

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