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for socially and environmentally responsible mine development and respect for the rule of law, gives Donlin Gold a special status among the very few of the world’s development projects, particularly in light of the fact that the project already has all the major federal and most key Alaska permits.
Any discussion about Donlin Gold would not be complete without reference to its exploration potential. The project’s current resources and reserves are contained within only three kilometers of an eight-kilometer mineralized belt which, in itself, represents only five percent of the total mineral land package. It is not surprising that the consistency of grade and high-grade intercepts from the current and past drill programs are further reinforcing its exploration potential.
Looking ahead to 2022, NOVAGOLD and Barrick expect to finalize geologic modeling and interpretation work with results from the 2021 drill program for an updated resource model, which would then lead into an updated feasibility study. We are particularly intrigued by the 2022 work plan, which includes some exploration drilling under the ACMA and Lewis pit areas that are open along strike and at depth.
NOVAGOLD anticipates spending approximately $46 million in 2022. About $30 million will be allocated to fund our share of expenditures at the Donlin Gold project, representing the largest project budget in more than a decade. It includes $17 million for the 2022 drill program; $9 million for external affairs, permitting, environmental, land, and legal activities; and $4 million for project planning and fieldwork. A total
of $13 million is allocated for NOVAGOLD general corporate and administrative costs and an additional $3 million for withholding taxes on share-based compensation and other working capital.
CONCLUSION
I wish to thank the experienced team of professionals at NOVAGOLD, Donlin Gold, and Barrick, along with our drill crews and contractors at the project site, for their expert navigation of the project. Our success would not have been possible without their dedication and hard work. There’s tremendous commitment by each of these groups to maintain the highest standards of safety and environmental protection. My gratitude also extends to the various State of Alaska agencies for their thorough and professional work in advancing permitting
for the project. A big thank-you also goes to Calista and
TKC, our Native Corporation partners who have been strong supporters in ensuring that Donlin Gold is developed to the highest standards of environmental stewardship and social responsibility. I would also like to express my sincere thanks to the entire NOVAGOLD board and team for their commitment and devotion to the company. I enjoy working alongside each and every one of you.
Lastly, I’d like to thank our shareholders for your unwavering support, engagement, knowledge, and encouragement. Each of these strong relationships has been strengthened over the past two years during the pandemic, and I look forward to continuing our engagement and sharing many more achievements in 2022.
Gregory A. Lang
President and CEO
February 28, 2022
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Donlin Gold employees from the Y-K region (left to right): Daryl Petruska, Christopher Gregory, Scott Fitka, Jordan Shriner.