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NOTES
  1) See media releases titled “Donlin Gold Initial 2021 Drill Program Results Continue to Deliver for Project Advancement”, September 2, 2021 and “Barrick and NOVAGOLD Agree on Next Steps Toward Advancement of Donlin Gold; Drill Assay Results Continue to Yield High-Grade Intercepts and Demonstrate Important Grade Continuity; With Clear Improvement in Definition of Controls of Mineralization, the Project is Advancing Towards Feasibility Study Update”,
December 2021.
2) Anticipated annual gold production during full life of mine if put into production as per the
NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA with an effective date of June 1, 2021 (the “2021 Technical Report”) and the S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA, November 30, 2021 (the “S-K 1300 Technical Report Summary”). See “Cautionary Note Concerning Reserve & Resource Estimates” and “Mineral Reserves & Mineral Resources” table on page 35.
3) NOVAGOLD defines a Tier-One gold development project as one with a projected production life
of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average projected cash costs over the production life that are in the lower half of the industry cost curve.
4) Forecast includes $30 million to Donlin Gold, $13 million to NOVAGOLD G&A and $3 million for withholding taxes on PSUs and other working capital. This report may also contain future- oriented financial information (“FOFI”) and information which could be considered to be in the nature of a “financial outlook”. Such FOFI or financial outlook was approved by NOVAGOLD’s management as of the date of this report for the purpose of providing management’s reasonable estimate based on the assumptions set forth in such estimates and the information may not be appropriate for other purposes. Management cautions that such FOFI or financial outlook reflects NOVAGOLD’s current beliefs and are based on information currently available to NOVAGOLD and on assumptions NOVAGOLD believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the FOFI or financial outlook as they are subject to a number of significant risks and uncertainties. Certain
of these risks and uncertainties are beyond NOVAGOLD’s control. Consequently, all of the FOFI or financial outlook are qualified by these cautionary statements, and there can be no assurances.
5) NOVAGOLD sold its 50% ownership of the Galore Creek project to Newmont in 2018. Deferred compensation on the sale of Galore Creek includes $25M on the earlier of completion of a Feasibility Study or July 27, 2023. An additional $75M is due upon construction approval. For additional detail, see the media release dated July 28, 2021: “NOVAGOLD Receives $75 Million from Newmont Corporation”.
6)
7)
8)
See July 26, 2018 media release titled “NOVAGOLD Enters Agreement to Sell Its 50%
Stake in Galore Creek to Newmont for up to $275 Million.”
Donlin Gold data as per the 2021 Technical Report and the S-K 1300 Technical Report Summary (as defined herein). Donlin Gold
proven and probable reserves of approximately 16.925Moz grading 2.09 g/t attributable to NOVAGOLD (33.849Moz on 100% basis) and measured and indicated resources, exclusive of reserves, of approximately 2.749Moz grading 2.43 g/t attributable to NOVAGOLD (5.497 Moz
on 100% basis). 39Moz refers to mineral resources inclusive of reserves on a 100% basis.
Donlin Gold data as per the 2021 Technical Report and the S-K 1300 Technical Report Summary (as defined herein). Donlin Gold measured resources of approximately 8 Mt grading 2.52 g/t and indicated resources of approximately 534Mt grading 2.24 g/t, each
on a 100% basis and inclusive of mineral reserves, of which 50% are attributable to NOVAGOLD through their 50% ownership interest in Donlin Gold LLC. Exclusive of mineral reserves, Donlin Gold possesses measured resources of approximately 1Mt grading 2.23 g/t and indicated resources of approximately 69Mt grading 2.44 g/t, each of which 50% are attributable to NOVAGOLD. Mineral resources have been estimated in accordance with NI 43-
101 and S-K 1300.
2020 average grade of open-pit and underground deposits with gold as primary commodity and over 1Moz in measured and indicated resources is 1.12 g/t, sourced from S&P Global Market Intelligence.
Annual Survey of Mining Companies, 2020
The jurisdictional risk map is derived from the top 10 (lower risk) and bottom 10 (extreme risk) of 77 jurisdictions reviewed in the Fraser Institute Annual Survey of Mining Companies, 2020.
Represents 100% of M&I resources, inclusive of mineral reserves, of which 50% is NOVAGOLD’s share. Donlin Gold is not in production and
a construction decision has not been made. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Mineral Reserves & Mineral Resources” table on page 35.
Gold development stage projects defined as the top 5 globally by contained gold in measured and indicated resources, >75% projected revenues from gold, and with stated proven
and probable reserves, as per latest company documents, public filings and websites as of November 2021.
14) Only three mines produced greater than 1 million ounces in 2020: Muruntau (2,652koz), Carlin (1,665koz), and Olimpiada (1,229koz), as per SNL Metals & Mining, an offering of S&P Global Market Intelligence.
15) Market Capitalization based on 332.9 million shares issued and outstanding and NOVAGOLD share price of $6.82 as of January 25, 2022. Stock options outstanding as of January 19, 2022.
16) Represents average grade of measured and indicated mineral resources, inclusive of mineral reserves. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Mineral Reserves & Mineral Resources” table on page 35.
17) 2020 average grade of open-pit and underground deposits with gold as primary commodity and over 1Moz in measured and indicated resources, sourced from S&P Global Market Intelligence.
18) Donlin Gold data as per the 2021 Technical Report and the S-K 1300 Technical Report Summary (as defined herein). All dollar figures are in USD, represent 100% of the project of which NOVAGOLD’s share is 50%, and reflect after-tax net present value (at 0% and 5% discount rates) of the Donlin Gold project using the reference date of start of Year -06 as the first year of discounting. Estimated owner’s initial capital project development costs of approximately $348M to be spent prior to the reference date
are treated as sunk costs. At a 5% discount
rate, the net present value is: $1,161M at $1,300 gold; $3,040M at $1,500 gold; $4,887M at $1,700 gold; $7,229M at $2,000 gold; and $11,199M at $2,500 gold. The project requires a gold price of approximately $930 per ounce to break even on an undiscounted cash flow basis and a gold price of approximately $1,180 per ounce to break even on a 5% discounted basis.
19) Anticipated annual gold production during
full life of mine if put into production as contemplated in the 2021 Technical Report and the S-K 1300 Technical Report Summary (as defined herein). See “Cautionary Note Concerning Reserve & Resource Estimates” and
“Mineral Reserves & Mineral Resources” table on page 35.
20) Peer group data based on company documents, public filings and websites as of November 2021. Comparison group of 14 projects based on
large (2Moz P&P cut off), North/South American gold-focused development projects with >75% projected revenues from gold.
21) Average of comparison group data of 14 projects based on large (2Moz P&P cut off), North/South American gold-focused development projects with >75% projected revenues from gold, as per latest company documents, public filings, and websites as of November 2021.
                    9)
10) 11)
12)
13)
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