Creating Wealth Through Discovery - Minerals Northmineralsnorth.ca/pdf/mackenzie/SusanCraig1.40.pdf · NovaGold Resources Inc. Creating Wealth Through Discovery The Galore Creek Copper-Silver-Gold

NovaGold Resources Inc.NovaGold Resources Inc.Creating Wealth Through Discovery

TheThe Galore CreekGalore CreekCopperCopper--SilverSilver--Gold DepositGold Deposit

Minerals North Minerals North -- StewartStewartApril 28, 2005April 28, 2005

Drilling the Southwest Zone - 2003

NovaGold Resources Inc.NovaGold Resources Inc.NovaGold Resources Inc.

Who is Who is NovaGoldNovaGold??

A mining project development company:A mining project development company:Headquarters in Vancouver, BCHeadquarters in Vancouver, BC

Focused in Alaska, BC & the YukonFocused in Alaska, BC & the YukonShares traded in Canada & USAShares traded in Canada & USA

Corporate Strengths:Corporate Strengths:Project exploration & development experienceProject exploration & development experience

Working with local communitiesWorking with local communitiesStrong financial positionStrong financial position


Who is Who is NovaGoldNovaGold??

Shares (millions)Shares (millions)Issued & OutstandingIssued & Outstanding 66.166.1Fully DilutedFully Diluted 75.475.4

ShareholdersShareholdersInstitutional InvestorsInstitutional Investors 40%40%Management/DirectorsManagement/Directors 5%5%

Share PriceShare Price52 week range $4.72 to $12.00 (52 week range $4.72 to $12.00 (CdnCdn))

CurrentlyCurrently $10.43 ($10.43 (CdnCdn))

Market Cap (undiluted)Market Cap (undiluted)$650 million ($650 million (CdnCdn))Cash (2004 Year End)Cash (2004 Year End) $55 million ($55 million (CdnCdn))


NovaGoldNovaGold Management TeamManagement Team


NovaGold Resources Inc. NovaGold Resources Inc. PropertiesProperties


Galore CreekGalore CreekLocation

NovaGold Resources Inc. NovaGold Resources Inc. Galore Creek ProjectGalore Creek Project

300 Kilometers


Location

-75 kilometers from Eskay Creek

- 150 Kilometers northwest of Stewart

Galore Creek Historical WorkGalore Creek Historical Work

1950s: Initial mineral exploration1950s: Initial mineral exploration1960s: Exploration, Scud1960s: Exploration, Scud--StikineStikine road built, road built,

camps and 3 airstrips, 75,000m drillingcamps and 3 airstrips, 75,000m drilling1970s: Feasibility study (copper)1970s: Feasibility study (copper)1980s: Gold exploration: 25,000m drilling1980s: Gold exploration: 25,000m drilling1990s: Pre1990s: Pre--feasibility & little field workfeasibility & little field work

2003/04: 2003/04: NovaGoldNovaGold -- 25,967m drilling, 25,967m drilling, engineering & environmental studiesengineering & environmental studies


Galore Creek Scoping StudyGalore Creek Scoping Study


Preliminary Economic Assessment CompletedAugust 2004 based on data as of October 2003Based on Central and Southwest Resource Estimates

Project ParametersOpen pit mine based on 30,000 tonne per day throughput2 Access Corridors ConsideredPayback period less than 4 years23 year mine lifeCapital Cost in excess of $500 millionConcentrate export to Asia through port of Stewart

All Costs in US Dollars

Galore Creek Access OptionsGalore Creek Access Options


South Access South Access –– Iskut CrossingIskut Crossing

Galore Creek scoping StudyGalore Creek scoping StudyProject ConclusionsProject Conclusions


Northern Route:•Mine Life: 23 yrs•Average Production:

• Copper: 150Mlbs/yr• Gold: 107,000 oz/yr

•Capital: US$621 million•Cost/tonne: $11.48•Rate of Return: 5.7%

Southern Route:•Mine Life: 23 yrs•Average Production

•Copper: 150Mlbs/yr•Gold: 107,000 oz/yr

•Capital: US$499 million•Cost/tonne: $11.29•Rate of Return: 9.1%

Direct employment: 395 persons during operations (2010Direct employment: 395 persons during operations (2010--2033)2033)Annual operating expenditure C$125MAnnual operating expenditure C$125MAnnual exports: C$230MAnnual exports: C$230MTaxes paid:Taxes paid:

Federal: C$151 millionFederal: C$151 millionBC Income: C$96 millionBC Income: C$96 millionBC Mining Tax: C$109 millionBC Mining Tax: C$109 million

2004 Work Program2004 Work Program25,967m drill program (84 holes)25,967m drill program (84 holes)

–– Targeted high grade to enhance Targeted high grade to enhance economicseconomics

–– Extension Drilling and Extension Drilling and GeotechGeotech

Environmental studies (conducted by Rescan/Tahltan Joint Venture):

– Fish and Wildlife studies, Ecosystem Mapping, ML/ARD

Engineering Studies: – Processing and tailing sites,

metallurgical optimization, water management, access corridor, geotechnical

60-90 employed in Field – (50% First Nation)

$15 million $15 million CdnCdn spentspent–– $3 million $3 million CdnCdn on environmentalon environmental

Galore Creek Camp Aerial View - August 2004


Primary Target AreasPrimary Target Areas

Grace

Main Deposit

Copper Canyon

North Rim

North Junction

West Rim

Junction

Middle Creek

Butte

West Fork

Saddle/South 110

SW ZoneGap

Ample/ North Ex

Bountiful

Overlook

N

1 kilometre1 kilometre

Galore Creek Galore Creek PropertyProperty

Pioneer OptionPioneer Option

Eagle Plains OptionEagle Plains Option

Defined Resource AreasDefined Resource Areas

Target AreasTarget Areas

New New Chargeability Chargeability

AnomaliesAnomalies

Known DepositsKnown Deposits

8km


Opulent

Galore Creek Project Overview Photo

Galore CreekExploration Camp

Junction Zone Southwest Deposit

West Fork Zone

Copper Canyon

Central Deposit

1 kilometer

Principal target AreasPrincipal target Areas

SADDLE

SOUTHWEST

WEST FORK

BUTTE

JUNCTION

MIDDLECREEK

CENTRALor MAIN

GRACE

COPPER CANYON


Looking South

Main DepositMain DepositOutlineOutline

Looking NorthLooking North

400 mNovaGold Resources Inc.NovaGold Resources Inc.NovaGold Resources Inc.

Central Zone Looking North - Sep. 2003

Galore CreekGalore CreekCentral ZoneCentral Zone

SGL

NGL

CRZ

Southwest ZoneSouthwest Zone

CENTRALor MAIN

Southwest


Deposit Outline

Southwest Zone - Looking Northwest

Main Zone

Junction-NJ

Junction & North Junction DepositsJunction & North Junction DepositsLooking WestLooking West

Junction

North Junction

Main/Central Zone

Galore Creek Camp

Southwest

Galore Valley From Saddle Ridge Oct 2004


West Fork West Fork -- OpulentOpulent


CENTRALor MAIN

West Fork

Looking South

West Fork Zone - Opulent Vein GC04-480 @ 55m

33.61m @ 16.833% CuEq

MagnetiteBornite

ChalcopyriteAnhydrite


Copper CanyonCopper Canyon

CENTRALor MAIN

Copper Canyon

Looking South


AgreementAgreementNovaGold may NovaGold may earn a 60% interest in the Copper Canyon project from Eagle Plains Limited by:– completing C$3 million in

exploration– issue a total of 296,000 shares– make property payments

totaling C$250,000.

NovaGold may earn an additional 20% interest in the project for a total of 80% by:– paying Eagle Plains C$1

million and, – completing a feasibility study

by September 2011 Copper Canyon cuperiferous gossan Looking North - July 2004


Copper Canyon Adds…..Copper Canyon Adds…..

2.8 million ounces 2.8 million ounces gold, 37 million gold, 37 million ounces silver and 1 ounces silver and 1 billion pounds of billion pounds of copper to copper to NovaGold’sNovaGold’sGalore Creek ProjectGalore Creek Project

–– as per press release dated as per press release dated Monday, 10 January 2005Monday, 10 January 2005


Copper Canyon cuperiferous gossan Looking NW - Sept 2003

ResourcesResourcesTotal Property Resource Released April 19, 2005Total Property Resource Released April 19, 2005

12.0 Billion Pounds Copper and 13.7 Million Ounces Gold12.0 Billion Pounds Copper and 13.7 Million Ounces GoldMeasured and Indicated: 516.7 million Measured and Indicated: 516.7 million tonnestonnes

5.9 million ounces Au (0.36g/t) 5.9 million ounces Au (0.36g/t) 75 million ounces Ag (4.54 g/t)75 million ounces Ag (4.54 g/t)6.8 billion pounds Cu (0.59%)6.8 billion pounds Cu (0.59%)

Inferred: 578.3 million Inferred: 578.3 million tonnestonnes7.8 million ounces Au (0.42g/t) 7.8 million ounces Au (0.42g/t) 81 million ounces Ag (4.35 81 million ounces Ag (4.35 g/tg/t))5.2 billion pounds Cu (0.41%)5.2 billion pounds Cu (0.41%)

Galore Creek Camp November 2004NovaGold Resources Inc.NovaGold Resources Inc.NovaGold Resources Inc.

Galore Creek ProjectGalore Creek ProjectEnvironmental OverviewEnvironmental Overview

BC Environmental Assessment InitiatedFebruary 25, 2004

Interagency Working Groups EstablishedProvincial, Federal and US agencies

Open HousesTwice in Iskut, Dease Lake, Telegraph and Stewart Once in Smithers, Terrace and Wrangell

CEAA Project Description Completed

Harmonized Review of Project between BC EAO and CEAABC EAO Lead Agency

CEAA Triggered for Comprehensive Review


2004 Work Program2004 Work ProgramEnvironmentalEnvironmental

Work covered North & South Work covered North & South Access & Galore ValleyAccess & Galore ValleyBaseline Surveys: fish & Baseline Surveys: fish & wildlife populations and wildlife populations and seasonal migrationseasonal migrationWater quality and volume in Water quality and volume in streams and riversstreams and riversTesting of rock for acid Testing of rock for acid generationgenerationClimate, weather, avalanche, Climate, weather, avalanche, glacial patternsglacial patternsMapping of ecosystemsMapping of ecosystemsMigratory birds & habitatMigratory birds & habitat


Galore Creek ProjectGalore Creek Project2004 :Building Relationships2004 :Building Relationships

Numerous meetings with Numerous meetings with Tahltan leadership Tahltan leadership Site tour in JulySite tour in JulyEstablished Dease Lake Established Dease Lake OfficeOfficeOver 50% of field workforce Over 50% of field workforce TahltanTahltanSupported formation of Supported formation of RTEC & trainingRTEC & trainingOpen house meetings in Open house meetings in June and OctoberJune and OctoberEngaged key regulators Engaged key regulators from BC, Federal from BC, Federal Government and AlaskaGovernment and Alaska


Galore Creek Galore Creek Target TimelineTarget Timeline

2005:2005:Complete PreComplete Pre--feasibilityfeasibilityFeasibility field programsFeasibility field programsEnvironmental studiesEnvironmental studiesSubmit EA Document & permit applications to BC & Canadian Submit EA Document & permit applications to BC & Canadian GovernmentsGovernmentsConclude Participation Agreement with Conclude Participation Agreement with TahltanTahltan

20062006Complete feasibility reportComplete feasibility reportDetailed designDetailed designSeek project financingSeek project financingEA certificate, permits IssuedEA certificate, permits IssuedEnvironmental monitoringEnvironmental monitoring

20072007Begin ConstructionBegin Construction

20102010First First ProducionProducion

Malachite Seep at the Junction Deposit July 2004


Galore Creek ProjectGalore Creek Project2005 Work Plan2005 Work Plan

2005 Field SeasonExploration Program

Drill a minimum of 50,000 m to convert resources to reserves

Environmental baseline studiesFocus exclusively on southern route and Galore Valley




2005 Field SeasonEngineering studies

Complete design, operating and capital cost estimates to prefeasibility level by mid yearBegin feasibility study 3rd quarter

Geologic conditions at main dam (North end)

Shallow overburden, competent rock in foundations

Dam is abutted against rock in a tight valley

Galore Creek ProjectGalore Creek ProjectTailings Concept and Plant LocationTailings Concept and Plant Location


Tails and Waste Rock Plant


2005 Field SeasonActive engagement of Tahltan First Nation

Special Assembly January 8th and 9th 2005Training Courses for Tahltan

Environmental MonitoringDrillers HelperFirst Aid (introductory) and Level III

Traditional Knowledge workComplete Socio-economic baseline study

Additional Open HousesNGO Engagement



2005 Field Season

Expand Exploration CampIncrease from 75 man to 175 man capacity

Total Expenditures at least $25 million


Galore Creek ProjectGalore Creek ProjectApril 2005 April 2005


NovaGold Resources Inc.NovaGold Resources Inc.Creating Wealth Through Discovery

www.novagold.netwww.novagold.net

[email protected]


Documents

Creating Wealth Through Discovery - Minerals Northmineralsnorth.ca/pdf/mackenzie/SusanCraig1.40.pdf · NovaGold Resources Inc. Creating Wealth Through Discovery The Galore Creek Copper-Silver-Gold