NOVAGOLD Announces Extension of Donlin Gold Surface Use Agreement
With the Kuskokwim Corporation
Donlin Gold Cements its Partnership with the Native Corporations
of Alaska
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 9, 2014) -
NOVAGOLD RESOURCES INC. (TSX:NG) (NYSEMKT:NG) today announced that
Donlin Gold LLC (Donlin Gold) and The Kuskokwim Corporation (TKC)
have reached an updated long term Surface Use Agreement
("Agreement") at NOVAGOLD's flagship asset, the Donlin Gold project
in Alaska - one of the world's largest undeveloped gold deposits.
Conclusion of this Agreement represents an important milestone in
the advancement of this major project towards development and
ultimately production.
The Agreement has been extended to coincide with the projected
Donlin Gold mine life with provisions for a further extension,
should production continue beyond that. The Agreement also
coincides with the length of the Calista Corporation's Exploration
and Mining Lease. The Agreement:
- Provides direct compensation to TKC through payments for
project milestones, annual surface use and mine operation
- Includes a coordinated and consultative approach between Donlin
Gold and TKC regarding annual project planning, reclamation as well
as preparation of a subsistence harvest plan for affected surface
lands
- Gives preference to TKC for contracts, hiring and training TKC
shareholders, as well as funding scholarships and working with
federal, state and local entities to help create and fund a
training facility in the region
- Commits to an exclusive contract with TKC for the construction
and operations of an upriver port site
"Our families have lived off this land for generations and we
want to make sure it is developed both responsibly and in a way
that benefits the shareholders of The Kuskokwim Corporation," said
Maver Carey, President and CEO of TKC. "Since 1995, Donlin Gold has
worked constructively in our region and I know our partnership will
benefit our shareholders for many generations. Today's agreement
sets the basis for a long and productive relationship that with
construction of the mine will provide jobs and financial value to
the shareholders in our 10 villages."
"This Agreement represents a strong commitment by the project's
key stakeholders to continue advancing Donlin Gold in a responsible
and sustainable manner for the benefit of the region and its
shareholders," said Stan Foo, General Manager, Donlin Gold, which
is owned equally by subsidiaries of NOVAGOLD and Barrick Gold
Corporation. "Our strong and time-honored relationship with TKC and
Calista Corporation, who, respectively own the surface and mineral
rights to the lands encompassing the Donlin Gold project, forms a
solid foundation for its successful development."
"I would like to congratulate Donlin Gold and TKC in
successfully extending this Agreement, which preserves a
mutually-beneficial undertaking that will have far-reaching
impacts, not only to the local communities but all of our
stakeholders who will participate in the development of this
remarkable gold deposit," said Greg Lang, NOVAGOLD's President and
CEO. "We truly appreciate our partnership with the Alaska Native
Corporations and look forward to a prosperous future."
About Social Responsibility
Responsible mine development requires strong social and
environmental leadership as well as financial integrity. NOVAGOLD
believes that a company must earn their social license and has put
in place systems and procedures to "do it right" from the very
beginning. Donlin Gold has taken part in extensive outreach
activities with communities in the region since the early phases of
exploration. The intent has been to provide residents with
information about Donlin Gold and also to seek feedback on the
project. NOVAGOLD supports the establishment of these important
lines of communication because they set a strong precedent for
successful collaborative working relationships. These procedures
and policies form the foundation on which NOVAGOLD operates today
as the company continues to ensure that all of its projects are
developed to the highest technical, environmental, social and
economic standards.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company engaged in
the exploration and development of mineral properties in North
America. Its flagship asset is the 50%-owned Donlin Gold project in
Alaska, one of the safest jurisdictions in the world. With
approximately 39,000,000 ounces of gold in the measured and
indicated resource categories (541 million tonnes at an average
grade of approximately 2.2 grams per tonne), Donlin Gold is
regarded to be one of the largest, highest grade, and most
prospective known gold deposits in the world. According to the
Updated Feasibility Study (as defined below), once in production,
Donlin Gold should average approximately 1,500,000 ounces of gold
per year for the first five full years, followed by decades of more
than one million ounces per year on a 100% basis. The Donlin Gold
project has substantial exploration potential beyond the designed
footprint which currently covers only three kilometers of an
approximately eight-kilometer long gold bearing trend. Current
activities at Donlin Gold are focused on permitting, community
outreach and workforce development in preparation for the
construction and operation of this top tier asset. The Donlin Gold
project commenced permitting in 2012, a clearly defined process
expected to take approximately 4 years. NOVAGOLD also owns 50% of
the Galore Creek copper-gold-silver project located in northern
British Columbia. According to the 2011 Pre-Feasibility Study, once
in production, Galore Creek is expected to be the largest copper
mine in Canada, a tier-one jurisdiction. NOVAGOLD is currently
evaluating opportunities to sell all or a portion of its interest
in Galore Creek and would apply the proceeds toward the development
of Donlin Gold. NOVAGOLD is well positioned to stay the course and
take Donlin Gold through permitting.
Scientific and Technical Information
Scientific and technical information contained herein with
respect to Donlin Gold is derived from the "Donlin Creek Gold
Project Alaska, USA NI 43-101 Technical Report on Second Updated
Feasibility Study" compiled by AMEC. Kirk Hanson, P.E., Technical
Director, Open Pit Mining, North America, (AMEC, Reno), Gordon
Seibel, R.M. SME, Principal Geologist, (AMEC, Reno), Tony Lipiec,
P.Eng. Manager Process Engineering (AMEC, Vancouver) are the
Qualified Persons responsible for the preparation of the
independent technical report, each of whom are independent
"qualified persons" as defined by NI 43-101.
Cautionary Note Regarding Forward-Looking Statements
This press 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. All statements, other
than statements of historical fact, included herein including,
without limitation, the timing of permitting and potential
development of Donlin Gold, statements relating to NOVAGOLD's
future operating and financial performance, outlook, and the
potential sale of all or part of NOVAGOLD's interest in Galore
Creek are forward-looking statements. 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", or
"should" occur or be achieved. These forward-looking statements may
include statements regarding perceived merit of properties;
exploration results and budgets; mineral reserves and resource
estimates; work programs; capital expenditures; timelines;
strategic plans; completion of transactions; market prices for
precious and base metals; intended use of proceeds; or other
statements that are not statements of fact. Forward-looking
statements involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from NOVAGOLD's expectations
include the uncertainties involving the need for additional
financing to explore and develop properties and availability of
financing in the debt and capital markets; uncertainties involved
in the interpretation of drilling results and geological tests and
the estimation of reserves and resources; the need for continued
cooperation with Barrick Gold Corporation and Teck Resources
Limited for the continued exploration and development of the Donlin
Gold and Galore Creek properties; the need for cooperation of
government agencies and native groups in the development and
operation of properties; the need to obtain permits and
governmental approvals; risks of construction and mining projects
such as accidents, equipment breakdowns, bad weather,
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; and other
risk and uncertainties disclosed in NOVAGOLD's Annual Information
Form for the year-ended November 30, 2012, filed with the Canadian
securities regulatory authorities, and NOVAGOLD's annual report on
Form 40-F filed with the United States Securities and Exchange
Commission and in other NOVAGOLD reports and documents filed with
applicable securities regulatory authorities from time to time.
NOVAGOLD's forward-looking statements reflect the beliefs, opinions
and projections 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.
Cautionary Note to United States Investors
This press release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which
differ from the requirements of U.S. securities laws. Unless
otherwise indicated, all resource and reserve estimates included in
this press release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. Canadian standards, including NI
43-101, differ significantly from the requirements of the United
States Securities and Exchange Commission ("SEC"), and resource and
reserve information contained herein may not be comparable to
similar information disclosed by U.S. companies. In particular, and
without limiting the generality of the foregoing, the term
"resource" does not equate to the term "reserves". Under U.S.
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. The SEC's disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by U.S. standards in documents filed with the SEC.
Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. Disclosure of "contained ounces"
in a resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit measures.
The requirements of NI 43-101 for identification of "reserves" are
also not the same as those of the SEC, and reserves reported by
NOVAGOLD in compliance with NI 43-101 may not qualify as "reserves"
under SEC standards. Accordingly, information concerning mineral
deposits set forth herein may not be comparable with information
made public by companies that report in accordance with U.S.
standards.
NOVAGOLD Resources Inc.Mélanie HennesseyVice President,
Corporate Communications604-669-6227 or 1-866-669-6227NOVAGOLD
Resources Inc.Erin O'TooleAnalyst, Investor Relations604-669-6227
or 1-866-669-6227
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