The fact that Donlin Gold is located in the United States gives NOVAGOLD a tremendous competitive advantage. Jurisdiction is an important issue today in the resources sector. One of the key questions that investors will be asking of mining companies is: where in the world are your assets located? Investing in the wrong region carries risks well beyond what you find in North America. 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.