The Donlin Gold project is located in the United States giving NOVAGOLD a tremendous competitive advantage. Jurisdiction is an important issue in the resource sector today. One of the key questions that investors will ask mining companies is: Where in the world are your assets located? Investing in a company like NOVAGOLD with a project based in North America mitigates many of the risks associated with other jurisdictions. With five major producing mines, Alaska is the second largest gold-producing state in the United States.

Its after-tax Net Present Value (NPV) at US$1,500 per ounce-gold and a 5% discount rate, was estimated at US$3.0 billion, as fully described in the NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA and the S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA which can both be found here. This number rises to $13.1 billion undiscounted. Importantly, the resultant NPV sensitivity analysis showed an increase in value to US$4.9 billion at US$1,700 per ounce of gold (US$17.5 billion undiscounted), and then nearly a 50% further increase in NPV to US$7.2 billion at US$2,000 per ounce of gold (US$22 billion undiscounted).

Donlin Gold enjoys broad support, including from our Alaska Native Corporation stakeholders, the Calista Corporation (Calista) and The Kuskokwim Corporation (TKC), who own the mineral and surface rights to Donlin Gold. The project is on private land selected by Calista for the development of its mineral endowment. Our well-established track record of social engagement and environmental stewardship in the community distinguishes NOVAGOLD from its peers. The government of Alaska cites Donlin Gold as a model project for responsible development, a reputation that is reinforced with a unique association with the Green Star Communities Program of the Alaska Forum on the Environment sponsored in conjunction with Donlin Gold to promote hazardous waste collection and backhaul. That’s not something you see every day, and we’re proud of it.