NovaGold Resources Inc.

COMPANY DATA | INTRODUCTION | PROJECT IN HAND | MANAGEMENT
NEWS UPDATE |  CHINESE

COMPANY DATA

INTRODUCTION

NovaGold Resources Inc. is a growth company focused on gold exploration, development and mining. The Company has one of the largest resource bases in the world relative to its peers, located entirely in North America. NovaGold has acquired and systematically advanced a portfolio of projects to create shareholder value. NovaGold's resource base has grown from 500,000 ounces of gold in 1998 to 27.7 million ounces in mid-2008. The growth and success comes from NovaGold's experienced exploration team and its ability to forge collaborative partnerships with Native Alaskan and First Nations groups, local communities, major mining companies and regulators.

PROJECT IN HAND

(1) Donlin Creek Project, Southwest Alaska, U.S.A.

NovaGold's flagship Donlin Creek property is located in the historic Kuskokwim Gold Belt of southwest Alaska, covering 10,900 hectares (27,000 acres), is one of the world's largest undeveloped gold deposits, which advanced significantly in 2008. The Donlin Creek project is owned equally by NovaGold and Barrick Gold U.S. Inc. and operated by Donlin Creek LLC, a jointly owned limited liability company. The property is under lease from two Native Alaskan corporations, Calista Corporation (subsurface rights) and The Kuskokwim Corporation (surface rights). The Donlin Creek mine, once constructed, is expected to be one of only a handful of gold mines worldwide that is capable of producing over one million ounces of gold annually. 

Since acquiring an interest in the Donlin Creek project in 2001, exploration activities have more than doubled the size of the project's resource base, measured and indicated resource base has been increased by 2.3 million ounces in 2008. Since the current reserve/resource is contained within only a small portion of the overall property, NovaGold believes there is considerable potential to expand the gold resource at Donlin Creek.

2009 Milestones

• Convert measured and indicated resources to proven and probable reserves

• Donlin Creek LLC completes feasibility study

• Initiate permitting process, continue community engagement

Feasibility Study

NovaGold released the results of a feasibility study in May 2009, outlining the production and economic estimates for development of the Donlin Creek asset. The Donlin Creek mine has been designed as a year-round, open-pit operation. With the current 29.3 million ounces of gold reserve base, the anticipated mine life is in excess of 20 years with a mill throughput of 53,500 tonnes per day. Gold production for the first 12 full years is expected to average nearly 1.5 million ounces annually. Life of mine production is estimated at 1.3 million ounces of gold annually, for total production of 26.2 million ounces of gold over 20 years, at cash costs in the lower half of the industry. A construction decision will be made following receipt of permits, with production anticipated in 2015 based on the feasibility study timeline.

Proven and probable mineral reserve estimate: 29.3 million ounces of gold averaging 2.3 g/t gold
Measured and indicated mineral resource estimate: 6 million ounces of gold
Inferred mineral resource estimate: 4 million ounces of gold


(2) Galore Creek Project, Northwest British Columbia, Canada

Galore Creek is one of the world's largest and highest-grade undeveloped porphyry-related copper-gold-silver deposits. The 29,850 hectare (320,800 acre) property is located within the historic Stikine Gold Belt of northwest British Columbia. NovaGold and Teck Cominco Limited each hold a 50% interest in the project, with the Galore Creek Mining Corporation directing all aspects of project development.

Since acquiring Galore Creek in 2003, NovaGold's exploration team has more than tripled the size of the project's resource base. With 1,300 million tonnes of high-grade copper-gold-silver-porphyry resources and a number of untested targets, there remains considerable potential to increase the resource base at Galore Creek.

2008 Achievements

• Completed engineering and optimization studies to identify alternative development strategies

• Maintained strong relationship with open dialogue with the Tahltan Nation and government regulators

Project Milestones

• In February 2009, NovaGold announced that it had amended the partnership agreement with Teck Cominco. The agreement confirms that NovaGold and Teck each continue to hold a 50% interest in the Galore Creek partnership. Under the ‥amended agreement Teck will now fund 100% of Galore Creek costs until the aggregate amount contributed by Teck after November 1, 2008, together with funds previously contributed by Teck on optimization studies, equals CDN$60 million. As a result, NovaGold expects to have no near-term funding obligations for the Galore Creek project.

• Maintain and improve project infrastructure and investment

(3) Nome Operations, Alaska, U.S.A.

Nome Operations comprises three 100% owned projects located near the town of Nome, Alaska: Rock Creek, Big Hurrah and Nome Gold. NovaGold holds title to mining claims covering approximately 5,700 hectares (14,000 acres), with additional land holdings brings NovaGold's total property to more than 36,000 hectares (89,000 acres). Nome Operations has consistently contributed $1 to $3 million in annual cash flow from its sand-and-gravel and land business.

Rock Creek Project

The Rock Creek mine advanced to commissioning in 2008. Now that the property has been placed on care and maintenance and projected to produce approximately 100,000 ounces of gold per year once at commercial production.

2008 Achievements

• Completed majority of project construction and initiated commissioning process

• Post project suspension, initiated comprehensive assessment of exploration upside and operations plan

• Completed 2,000 metres (6,562 feet) of expansion and exploration drilling to expand the reserve and resource base. NovaGold successfully expanded the Rock Creek deposit by 24%, bringing total Nome Operations project resources to nearly 3 million ounces, inclusive of reserves.

2009 Milestones

• Maintain project infrastructure and investment

• Update resource modeling to include 2006 to 2008 drilling

• Update feasibility study to reflect current gold prices and capital costs, and to convert new resources to reserves

• Determine best method to bring value to shareholders through a re-start of commissioning activities, bringing in an operating partner or selling the project

MANAGEMENT

NovaGold Resources Inc. has a professional management team with experience in different areas.

Senior Management

Rick Van Nieuwenhuyse, M.Sc. (Geology) - President and Chief Executive Officer
Since assuming management of NovaGold in 1998, Mr. Nieuwenhuyse has assembled portfolio of world-class properties and a team of top industry professionals who have turned NovaGold into one of North America's fastest growing mining companies. Mr. Nieuwenhuyse has 30 years of worldwide experience in the natural resource sector, including time as Vice President of Exploration at Placer Dome. He brings years of working experience and knowledge of Alaska, Western Canada, Africa and Asia, and has managed projects from grassroots discovery through to advanced Feasibility Studies and production.

R.J. (Don) MacDonald, CA - Senior Vice President, Chief Financial Officer
Mr. MacDonald joined the Company in January 2003, bringing with him 25 years of experience in mine development and financing. Prior to joining the Company, Mr. MacDonald was Senior Vice President and Chief Financial Officer of Forbes Medi-Tech Inc., a public biotech company, from 2001 to 2003, De Beers Canada Mining (formerly Winspear Diamonds) from 1999 to 2001, and Dayton Mining from 1991 to 1999, and Vice President Finance of Granges Inc. from 1983 to 1991.

Sacha Iley, B.A. - Vice President, Human Resources
Ms. Iley joined NovaGold as Human Resources Manager in May 2006, and was promoted to Vice President in June 2007. Her Human Resources background is well suited to NovaGold, with a unique combination of experience in a head office environment and also managing construction, start-up and operational aspects of Human Resources at a mine site.

Greg S. Johnson, Honors B.Sc. (Geology) - Vice President, Strategic Development
Mr. Johnson joined Rick Van Nieuwenhuyse to establish NovaGold in 1998. With over 20 years of industry experience, Mr. Johnson is responsible for NovaGold's marketing and communication activities, and is involved in developing strategic growth opportunities. Prior to his role at NovaGold, Mr. Johnson was part of the management team responsible for overseeing the exploration and acquisition activities for Placer Dome's International Exploration Group in Africa and Eurasia.

Doug Nicholson, B.Sc. (Mine Engineering) - Vice President, NovaGold Alaska / General Manager, Alaska Gold Co. / President, Donlin Creek LLC
Mr. Nicholson brings over 18 years of mine development and operation experience to NovaGold. Prior to joining the Company, Mr. Nicholson was in charge of mine development engineering at the Kinross Gold 400,000 ounce per year open-pit Fort Knox and True North deposits in Fairbanks, Alaska.

Joe Piekenbrock, M.Sc. (Geology) - Vice President, Exploration
Mr. Piekenbrock joined NovaGold in 2002 with over 25 years experience in the minerals exploration and development sector. He has managed exploration projects from grassroots discovery through advanced acquisitions.

Elaine Sanders, CA, CPA - Vice President, Finance & Corporate Secretary
Ms. Sanders joined NovaGold in 2003 and has 15 years of experience in audit, finance and accounting with public and private companies. She has been involved with numerous financings and acquisitions, and has listed companies on both the TSX and AMEX.

Board of Directors
Tony Giardini
Gerald McConnell
Kalidas Madhavpeddi
Clynton Nauman
James Philip
Rick Van Nieuwenhuyse

NEWS UPDATE

On April 28, 2009, NovaGold Resources Inc. announced the results of a feasibility study completed for its Donlin Creek project in southwest Alaska. The feasibility study adds 14.7 million ounces to NovaGold's reserves. The Donlin Creek mine has been designed as a year-round, open-pit operation. With the current 29.3 million ounces of gold reserve base, the anticipated mine life is in excess of 20 years with a mill throughput of 53,500 tonnes per day. Gold production for the first 12 full years is expected to average nearly 1.5 million ounces annually. Life of mine production is estimated at 1.3 million ounces of gold annually, for total production of 26.2 million ounces of gold over 20 years. A construction decision will be made following receipt of permits, with production anticipated in 2015 based on the feasibility study timeline.

Proven and probable mineral reserve estimate: 29.27 million ounces of gold
Measured and indicated mineral resource estimate: 6.01 million ounces of gold
Inferred mineral resource estimate: 4.02 million ounces of gold

Disclaimer

Copyright (c) 2000 - 2009 Chinese Investment Club Inc.
All Right Reserved. Do not duplicate or redistributed in any form.
版權所有, 未經同意, 不得以任何形式轉載或翻印