VANCOUVER, British Columbia, Jan. 24, 2024 (GLOBE NEWSWIRE) — NOVAGOLD RESOURCES INC. (“NOVAGOLD” or the “Company”) (NYSE American, TSX: NG) reported its fiscal 2023 currency effects and an update on Donlin Gold, its Tier One11 gold progression allocation that NOVAGOLD similarly holds with Barrick Gold Corporation (“Barrick”).
In 2023, the following milestones were achieved at NOVAGOLD and Donlin Gold:
President’s Message
Driving the Donlin Gold Project Toward Development Through Unwavering Commitment and Persistent Work
NOVAGOLD’s unique focus on advancing its exceptional task in the price chain is demonstrated, first and foremost, through the company’s increased investments and expanded partnerships with communities in the Y-K region. The extensive paintings completed at the Donlin Gold Project in 2023 and to date have added an excellent price tag. for all stakeholders, aggregating Alaskan citizens and NOVAGOLD shareholders, and has particularly contributed to positioning the task for the next level of development. The success and finishing touch of this new program is another testament to exceptional teamwork, dedication, and strategic planning. and adherence to fitness and safety protocols through our employees, contractors, and the communities where we operate.
At the Lyman Placer Historic Site, recovery paintings included the creation of a vital habitat for the pond. Additional paintings, adding the reconnection of the pond to Crooked Creek for ease and use of aquatic life, are planned for the 2024 box season.
The paintings included the advancement of geological and resource models; Trade-off studies, in-depth analysis of key allocation assumptions, inputs, and design factors for validation and optimization (mining engineering, metallurgy, hydrology, and infrastructure) to indicate next steps to advance the task further up the price chain. , the remaining entry permits were complex as part of the regulatory process, continued by federal and state agencies to maintain existing entry permits; and through ongoing engagement, keep up with and expand for assignments in the Yukon region.
Donlin Gold LLC’s Board of Directors and the owners of the assignment are firmly committed to prioritizing engineering excellence, environmental stewardship, a culture of stewardship, and sustained network involvement in this effort.
Together with Native Corporation Partners, Calista, and TKC, Donlin Gold’s social license through ongoing and meaningful engagement with all stakeholders
In 2023, Donlin Gold reaffirmed this commitment by appointing more community liaison representatives in the local villages of Nunapitchuk, Tuluksak, Pilot Station, and Kwigillingok, bringing the organization’s total number to eight. It has also established 3 more shared value statements, for a total of 16, that formalize Donlin Gold’s ongoing commitment to local communities, existing long-term relationships, and address the communities’ expressed wishes. Last year, Donlin Gold carried out more than 7,000 direct engagements, building meaningful interactions and communication channels with keys. stakeholders. These activities encompassed a wide diversity of interactions, adding discussions, consultations, and collaboration sessions, underscoring our commitment to fostering a transparent and open discussion with Americans and establishments that are critical to Donlin Gold’s success.
Working with Calista and the village of Crooked Creek, Donlin Gold continued its proactive bipartisan outreach in Alaska to highlight the rigor of the project’s environmental review and permitting procedures, as well as partnerships with Alaska Native landowners. This global effort extended to Washington, D. C. , where meetings were held with members of Alaska’s congressional delegation and senior officials from the U. S. Department of the Interior. U. S. Rep. Mary Peltola of the Y-K region. In addition, Donlin Gold gained popularity among Rep. Peltola at the Alaska Oil Annual Conference.
Advancing cultural preservation, education, welfare, and environmental projects in the Yukon region
NOVAGOLD maintains a long-standing commitment to education, network welfare, cultural preservation, and environmental stewardship, actively reinforcing those goals at the Donlin Gold allocation site and within the communities of the Y-K region. With a focus on assignments such as fisheries studies, environmental activities, livelihoods, cultural preservation, and grants, NOVAGOLD has a strong focus on networking and social responsibility. Through ongoing collaboration with Calista and TKC, along with other key representatives of local communities, our collective efforts are critical to the YK region. This ongoing commitment ensures Donlin Gold’s sustainable and successful progression in the years to come, with a wide diversity of assignments and activities contributing to those overall goals in 2023.
As an annual sponsor of the Alaska Rural Community Action Program, Donlin Gold maintains its long-standing support by recruiting and striking local seniors at Y-K schools. This program facilitates the transmission of classical wisdom and values, thus enriching the educational experience of scholars in the region. In addition, Donlin Gold has strengthened its sponsorship of the First Alaskans Institute, as well as its long-term support and active participation in key occasions such as the National Conference of Elders and Youth and the Alaska Native Federation Annual Convention. These sustained efforts promote cultural enrichment and participation in the network.
In collaboration with the village of Napaimute, Donlin Gold actively participated in and provided principal support to the “In It For The Long Haul” backhaul program for the sixth year in a row. This vital project is dedicated to the collection, removal, and safe disposal of household hazardous and electronic wastes from villages across the Y-K region, preventing its adverse impact on landfills and waterways. The program achieved significant new milestones in 2023, including the removal of waste from fish camps in the Middle Kuskokwim area and the initiation of waste backhaul operations along the Yukon River. In total, this year’s program successfully collected and disposed of approximately 235,000 pounds of waste. Donlin Gold also supported 52 villages as part of the annual “Clean-Up Green-Up program”, which seeks to collect and dispose of trash from the tundra, roads, public areas and beaches in the Y-K region that accumulate over the winter months.
Donlin Gold has been increasingly focused on collaborating with our Alaska Native Corporation partners to monitor and assess the conditions and management of salmon fisheries in the Kuskokwim and Yukon River watersheds. In the fourth quarter of 2023, we initiated the identification of specific potential project opportunities aimed at monitoring, evaluating, and enhancing the health of salmon populations. In the coming first quarter, Donlin Gold will identify key projects to support with work expected to commence in the third quarter of 2024. All such projects will be executed in full collaboration and partnership with the people of the Y-K region. Furthermore, in collaboration with TKC, the village of Crooked Creek, the Akiak Native Community and the Napaimute Tribe, Donlin Gold provided financial support for the construction and maintenance of the ice roads that allow for winter travel between the remote Kuskokwim River communities – which, in turn, led to increased participation in community events, including cultural activities and sports, but also provided critical access for emergency services, law enforcement and travel. On average, a total of 300 miles of ice road is constructed and maintained annually.
Education is the cornerstone of Donlin Gold’s network engagement efforts, which is characterized by a strong commitment to promoting school opportunities in Alaska. Working intensively with Alaska Resource Education, Donlin Gold is actively involved in the project to educate Alaskan scholars about the state’s herbal resources. The company is expanding its commitment to education through the Alaska School Activities Association, a statewide nonprofit organization that leads, develops, and organizes the best interschool sports, academic, and arts activities throughout Alaska. NOVAGOLD also contributes to the advancement of education through investments and annual scholarship at the University of Alaska. This scholarship is designed in particular for underrepresented academics pursuing specializations in mining engineering and geology, contributing to long-term skill progression in those critical career fields.
Navigating the complex authorization procedure in the U. S. Work in the U. S. and Alaska is a rigorous task that requires years of committed effort to ensure a diligent, thorough, transparent, and inclusive technique that involves all stakeholders, particularly those in the Yukon region. Donlin Gold, along with its owners and partners Calista and TKC, have a strong command of the regulatory and permitting procedures of the assignment and work intensively with federal and state agencies to keep the assignment permits in a smart position, with specific progress on task. Alaska Dam Safety Certificates.
Part of the 2023 field program was focused on geotechnical and hydrological drilling to gather supplementary data for the Alaska Dam Safety Certificates application process. The fieldwork concluded in July, and the team is on track to submit the preliminary design packages to the Alaska Department of Natural Resources (“ADNR”) in the first half of 2024. We anticipate the Certificates will be issued in 2026.
The new air quality permit, based on updated data on air quality models and emissions monitoring, was issued in July 2023. The Alaska Pollutant Discharge Elimination System (“APDES”) permit, which originally expired in 2023, and the Waste Management Permit, which was originally scheduled to expire in January 2024, are administratively extended pending renewal through the Alaska Departments of Environmental Conservation (“ADEC”). The approval of the recovery plan, which was also due to expire in January 2024, is administratively extended until January 2025.
On August 18, 2023, the ADNR Commissioner reaffirmed ADEC’s issuance of 401 certification (Alaska Water Quality Certification), following an appeal through Earthjustice, on behalf of the Orutsararmiut Native Council (ONC). The rest of the case in the past was filed in Alaska Superior Court. It was subsequently lifted and Earthjustice and ONC’s initial brief was filed on January 5, 2024.
On April 12 and July 3, 2023, the Superior Court of Alaska upheld ADNR’s issuance of the state right-of-way (“ROW”) lease at Earthjustice and Robert Fithian, respectively. The ruling in the Earthjustice case was appealed to the Alaska Supreme Court. . Earthjustice Opening Brief filed September 22, 2023. The State of Alaska’s response briefs, Calista, and Donlin Gold were filed on January 3, 2023. Fithian did not appeal to the Alaska Supreme Court.
As a component of federal litigation challenging Donlin Gold’s record of joint resolution, adding the Corps’ 404 permit and right-of-way lease for quantities of the pipeline located on federal lands issued through the U. S. Bureau of Interior Land Management, the U. S. Justice Breakdown(DOJ) is finalizing the compilation of the court’s administrative record. The schedule of briefings was agreed in the fourth quarter and will run through the first component of 2024.
Despite the demanding situations mentioned above, all appeals opposing Donlin Gold’s entry permits have been unsuccessful to date, strengthening our confidence in the thorough clearance procedure. Recognizing the importance of preparation and organization, as well as the unwavering attitude of Donlin Gold and its owners, we remain committed to urging all agencies to advocate for thorough authorization procedures. Our technique emphasizes preparing for potentially demanding situations for federal and state entry permits, reflecting the regulatory landscape in the United States. The project’s control and litigation groups, who are in familiar details with the permitting procedure and procedures are collaborating heavily with Donlin Gold and its owners, subsidized through the unwavering advocacy of Calista and TKC, to provide unwavering state and federal government agencies in protecting the project authorization procedure.
Protecting a valuable asset amid the emerging costs of gold while also keeping solid money to propel Donlin Gold forward.
NOVAGOLD’s deep and proven strategy has consistently brought Donlin Gold to the top of the price chain, maintaining a solid financial fitness without the need for further share issuances since January 2012. As of November 30, 2023, our monetary position is $126 million, reinforced. through a $25 million payment from Newmont in July 2023, thus offering sufficient resources to fund our percentage of the Donlin Gold allocation for at least the next 3 years, at existing spending levels. Over the past decade, our control team has demonstrated due diligence, culpability control, and effective threat alleviation – a commitment that aligns with the fulfillment of any and all promises made to shareholders since 2012.
2024 Activities and Next Steps for Donlin Gold
At the December 2023 meeting of Donlin Gold LLC’s Board of Directors, NOVAGOLD proposed to proceed with an updated feasibility study, while Barrick proposed to continue drilling campaigns, although the owners did not accept any of the proposals at the December meeting. , located a non-unusual floor in value-added activities that advance the task. So, while discussions related to next steps continue, the board of directors of Donlin Gold LLC approved a budget of $28. 5 million (100% basis) for 2024. , adding resource modeling, mine fabrication plan paints, metallurgical test paints (pilot plant), regional infrastructure creation plans, geosciences, hydrology and closure plans, advancement of dam protection certificate applications and ongoing processes for ongoing litigation, government affairs, network painting engagement activities, and sponsorships. NOVAGOLD will continue to make concerted and inclusive efforts to advance the allocation of Donlin Gold to gain advantages for all of our Donlin Gold shareholders and stakeholders.
NOVAGOLD Executive Appointments and Promotions
Richard has led the engineering and technical program at NOVAGOLD for over a decade. His knowledge and commitment to the company has been pivotal in the development and continued success of the Donlin Gold project since joining the NOVAGOLD team in 2012. Previously, Richard spent over 30 years with Barrick Gold developing and operating major mines. He has extensive experience in autoclave technology served as Project Director of the Pueblo Viejo mine in the Dominican Republic. Richard’s seven-year tenure at Pueblo Viejo capped a career where he progressively held top operating roles which included the design, construction and operation of mineral processing facilities of major mines such as Goldstrike in Nevada and Mercur in Utah.
Ben is an environmental attorney and experienced herbal resource attorney. Ben has spent seven years as a spouse in Dorsey.
With NOVAGOLD’s continued fulfillment of its commitments, Donlin Gold is poised to have good luck in gold development. By mitigating risk, embracing fault mining, and fostering trust, we have been able to unlock the price of our high-quality asset while maintaining a strong flow of money. These accomplishments are the result of sustained and committed teamwork on a variety of fronts, from Donlin Gold’s on-site systems and networking efforts and environmental awareness initiatives. In the coming years,
Our sincere thanks and gratitude go out to our colleagues, partners, board members, as well as our shareholders, for their unwavering support. As we approach the year 2024, we remain steadfast in our commitment to deliver on the promises we made, and we’re even more excited to achieve new milestones, together.
Gregory A. LangPresident & Chief Executive Officer
Financial effects in thousands of U. S. dollars, consistent with amounts consistent with percentages
The net loss decreased by $6,540 from 2022, primarily due to lower field expenses at Donlin Gold, increased interest income, and other income related to the 2021 sale of the Company’s interest in the San Roque mineral property, partially offset by an increase in interest expense on the promissory note and higher general and administrative expenses.
Donlin Gold’s expenses decreased in 2023 with fieldwork and geotechnical drilling completed in July for the Alaska Dam Protection Certification Programs and hydrologic drilling for mine plans and design, compared to the extensive exploration drilling program in 2022. General and administrative expenses increased due to corporate expenses. travel, legal, and PSU expenses provided to the Company’s senior control on December 15, 2022, as a retention incentive to be awarded if your employment continues through June 30, 2024. Higher interest rates in 2023 affected the source of interest income in money and terms. Deposits and interest fees on the promissory note. The average effective interest rate on the note increased from 6. 8% in 2022 to 10. 3% in 2023.
Liquidity and capital resources
In 2023, money and money equivalents decreased to $18,133, primarily to fund our percentage of Donlin Gold, corporate administrative expenses, and net purchases of time deposits, offset by Proceeds from Newmont Earned Notes.
Net expenses similar to operating activities decreased to $4,585, primarily due to an increased source of interest income earned on cash and time deposits, as well as the company’s general liability insurance bill schedule in the prior year, partially offset by higher corporate expenses. Legal fees and remediation expenses. Cash used to perform investing activities decreased to $2,034, primarily due to revenues from Newmont Notes and lower investment needs from Donlin Gold, partially offset by net purchases of term deposits in 2023, compared to the net source of term deposits of income in 2022. In financing activities, UPMs maturing in 2023 did not meet the functionality criteria; As a result, no common shares were issued and no withholding taxes were paid.
Outlook for 2024
NOVAGOLD’s main objectives include continuing to advance the Donlin Gold project towards a construction decision; maintaining support for Donlin Gold among the project’s stakeholders; promoting a strong safety, sustainability, and environmental culture; upholding a favorable reputation of NOVAGOLD; and preserving a healthy balance sheet. Our operations primarily relate to the delivery of project milestones, including the achievement of various technical, environmental, sustainable development, economic and legal objectives, obtaining necessary permits, completion of feasibility studies, preparation of engineering designs and the financing to fund these objectives.
Conference Call and Webcast Details
NOVAGOLD’s conference call and webcast to discuss those effects will take place on January 25, 2024 at 8:00 a. m. m. PT (11:00 a. m. ET). Details of the webcast and conference call are provided below.
Details of the video webcast and convention are below.
NOVAGOLD is a well-funded precious metals company aiming to develop its 50%-owned Donlin Gold allocation in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in the measured and indicated mineral resource categories, adding the shown and probable mineral reserves (541 million tons with an average grade of approximately 2. 24 grams consistent with the ton, in the resource categories measured and indicated to a hundred According to the Cent )2 Foundation, the Donlin Gold Project is one of the largest, richest and most potential open pit gold deposits in the world. According to the 2021 Technical Report and S-K 1300 Report (both explained below), once in production, the Donlin Gold Project is expected to produce on average more than one million ounces per year over a life of mine. 27 years per year. hundred consistent with cent base mine. The Donlin Gold Project has truly extensive exploration prospects beyond the planned open pit mine footprint, which ultimately covers 3 kilometers of a gold corridor approximately 8 kilometers long. Current Donlin Gold Project activities are focused on state permitting, technical studies, network extension and workforce progression in preparation for the eventual structure and consistency of this assignment. With a strong balance sheet, NOVAGOLD is well positioned to fund its portion of the Donlin Gold Project’s permitting and advancement efforts.
NOVAGOLD Contacts: Mélanie Hennessey Vice President of Corporate Communications 604-669-6227 or 1-866-669-6227
Caution Regarding Forward-Looking Statements
This media 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 several opinions, estimates and assumptions that management of NOVAGOLD 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 anticipated timing of certain judicial and/or administrative decisions; the 2024 outlook; the timing and potential for a new feasibility study on the Donlin Gold project; our goals and planned expenditures for 2024; ongoing support provided to key stakeholders including Native Corporation partners; Donlin Gold’s continued support for the state and federal permitting process; the potential development and construction of the Donlin Gold project; the sufficiency of funds to continue to advance development of Donlin Gold, including to a construction decision; perceived merit of properties; mineral reserve and mineral resource estimates; Donlin Gold’s ability to secure the permits needed to construct and operate the Donlin Gold project in a timely manner, if at all; legal challenges to Donlin Gold’s existing permits and the timing of decisions in those challenges; whether the Donlin Gold LLC board will continue to advance the Donlin Gold project up the value chain; the success of the strategic mine plan for the Donlin Gold project; the success of the Donlin Gold community relations plan; the outcome of exploration drilling at the Donlin Gold project and the timing thereof; and the conversion of Galore Creek into a mine and the receipt of the $75 million contingent payment from Newmont. 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 the expectations of NOVAGOLD management’s estimates and projections regarding future events or circumstances on the date the statements are made. Important factors that could cause actual results to differ materially from expectations include the need to obtain additional permits and governmental approvals; the timing and likelihood of obtaining and maintaining permits necessary to construct and operate; the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; COVID-19; uncertainties involved in the interpretation of drill results and geological tests and the estimation of reserves and resources; changes in mineral production performance, exploitation and exploration successes; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the United States or Canada; the need for continued cooperation between Barrick and NOVAGOLD for the continued exploration, the need for additional capital if NOVAGOLD determined to proceed with an updated feasibility study on its own; development and eventual construction 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, disease pandemics, 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; whether or when a positive construction decision will be made regarding the Donlin Gold project; and other risks and uncertainties disclosed in NOVAGOLD’s most recent reports on Forms 10-K and 10-Q, particularly the “Risk Factors” sections of those reports and other documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. Copies of these filings may be obtained by visiting NOVAGOLD’s website at www.novagold.com, or the SEC’s website at www.sec.gov, or at www.sedarplus.ca. The forward-looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on the date the statements are made. NOVAGOLD assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.