NYSE Alternext, TSX: NG

Transcription

1 NYSE Alternext, TSX: NG San Francisco Resource One Conference December 2008

2 Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of All statements, other than statements of historical fact, included herein including, without limitation, statements regarding anticipated completion of feasibility studies, potential results of drilling and assays, timing of permitting, construction and production and other milestones, and NovaGold s future operating or financial performance are forward-looking statements. Estimates of reserves and resources are also forwardlooking statements in that they involve estimates of the mineralization that would be encountered, based on interpretation of drilling results and certain assumptions, if a deposit were developed and mined. 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 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 and Teck Cominco in the exploration and development of the Donlin Creek and Galore Creek properties; the need for cooperation of government agencies and native groups in the development and operation of the Rock Creek property and other 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, fluctuations in metal prices and currency exchange rates, and other risks and uncertainties disclosed in NovaGold s Annual Information Form for the year ended November 30, 2007, 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 forward looking statements of management beliefs, opinions, projections, or other factors should they change.

3 NOVAGOLD IS A GROWTH COMPANY FOCUSED ON GOLD EXPLORATION, DEVELOPMENT & PRODUCTION. THE COMPANY HAS ONE OF THE LARGEST RESOURCE BASES IN THE WORLD RELATIVE TO ITS PEERS, LOCATED ENTIRELY IN NORTH AMERICA.

4 Investment Highlights One of the largest resource bases of any junior or mid-tier producing company entirely located in North America Gold resources: 21.3M ozs M&I and 5.2M ozs Inferred (1) Nome Operations, Donlin Creek and Galore Creek Advancing world-class assets with world-class partners Donlin Creek 50/50 with Barrick (gold) Galore Creek 50/50 with Teck (copper-gold-silver) Strong partnerships with Native Alaskan and First Nations groups (1) M&I resources inclusive of P&P reserves. Inferred resources exclusive of historical resources. See Cautionary Note Concerning Reserve & Resource Estimates. 4

5 Comparative Gold Resources Millions of ozs of gold resources Developers Recently acquired Developers Producers NovaGold Minefinders Detour Osisko Greystar Viceroy Cumberland Miramar Aurelian Aurizon Alamos Gammon Lake Agnico- Eagle Yamana North America Mexico Canada Canada Colombia Argentina Canada Canada Ecuador Canada Mexico Mexico North America South America Inferred resources Measured & Indicated resources Source: Respective company public filings as of March 2008: See Cautionary Note Concerning Reserve and Resource Estimates. Measured and indicated resources inclusive of proven and probable reserves. (1) Reflects 50% ownership of Donlin Creek, 50% of Galore Creek, 100% of Nome Operations and 51% of Ambler. 5

6 Resource Growth Track Record of Resource Growth Inferred gold-equivalent resources (gold and silver) Measured & Indicated gold-equivalent resources (gold and silver) Inferred copper resources Measured & Indicated copper resources Note: Reflects 50% ownership of Donlin Creek, 50% of Galore Creek and 100% of Nome Operations. Resource estimate updates as of February Based on gold-equivalent resources assuming a price of $650/oz for gold and $11/oz for silver. See Cautionary Note Concerning Reserve & Resource Estimates. *2008 exploration programs in progress. 6

7 Operational Overview Map Commissioning Stage Feasibility-stage Exploration-stage Nome Operations Mt. Distin Albion ALASKA NORTHWEST TERRITORIES Donlin Creek YUKON Shotgun Galore Creek BRITISH COLUMBIA 7

8 Nome Operations 1.8M 0.5M ozs Gold Measured & Indicated (1) 0.3M ozs Gold Inferred ozs Gold Probable Reserves Nome Operations NovaGold owns 100% (1) M&I resources exclusive of P&P reserves. 8

9 Nome Operations Commissioning began September 2008 Placed in care-and-maintenance due to operational and funding issues Gold production est. 100,000 oz/year Anticipated life-of-mine cash costs ~ $500/oz Native Alaskan Partners: Bering Straits and Sitnasuak Native Corporations Look at project needs to continue commissioning work 9

10 Donlin Creek 31.7M 4.2M ozs Gold Measured & Indicated (1) ozs Gold Inferred (1) Donlin Creek 50/50 Partnership with Barrick Gold (1) At 100% basis 10

11 Donlin Creek Value Drivers Preferred project design selected with partner Barrick Gold 50,000 tonne per day mill throughput with pressure oxidation and CIL Onsite diesel power with wind cogeneration 20+ year mine life with resources currently identified One of only a few mines worldwide anticipated to annually produce 1.0 to 1.5 million ozs of gold Complete feasibility study in Q Reserves Initiate permitting in 2009 Total 3-year budget maximum $100 Million (100% basis) Future resource expansion potential 11

12 Donlin Creek Exploration Resources are M&I category. 12

13 Donlin Creek Exploration Potential 13

14 Galore Creek 8.9B lbs Copper Measured & Indicated (1) 7.3M ozs Gold Measured & Indicated (1) 123M ozs Silver Measured & Indicated (1) 50/50 Partnership with Teck 3.6B lbs Copper Inferred (1) 3.8M ozs Gold Inferred (1) 65M ozs Silver Inferred (1) Galore Creek (1) At 100% basis 14

15 Galore Creek Value Drivers Completing engineering and optimization work New Development plan being finalized New plan to look at: Increased production throughput Reduced construction and operational risks Expansion potential Continue access road work and environmental baseline work in 2009 Teck funding C$72 million to complete earn-in Partners must agree on all budgets 15

16 NovaGold NG Share DC+GC 16 New Mine Gold and Gold Equivalent >5Moz M&I Resources NG/Teck Cominco Penasquito Cerro Casale Galore Creek Minas Conga Pascua Magadan Cadia East Pueblo Viejo Donlin Creek Boddington Hidden Valley Burnstone Cerro Corona Los Filos Akyem Blagodatnoe Hope Bay Didipio Pinos Altos Quimsacocha Buzwagi Meadowbank Syama Kupol Essakane Source: BMO Capital Markets: New Gold Mines Assessed May 2008; and Company Reports Gold Resources (Moz) NovaGold Projects: 2 of the top 10 largest M&I Gold Resources All Mines 100% Basis Gold Equivalent (Sliver, Copper, Zinc and Moly) Gold Only M&I Resource NG/ABX

17 Forecast Peak Production for New Gold Mines by NG/ABX NovaGold NovaGold Projects: #1 and #12 for Peak Gold Production Rates NG Share of Production >1 Moz/year >20 year mine life for both 1400 NG/Teck Cominco Peak Gold Production Rate (OOO oz) 0 NG Share DC+GC Donlin Creek Magadan Cerro Casale Pueblo Viejo Boddington Pascua Minas Conga Hope Bay Kupol Penasquito Akyem Galore Creek Meadowbank Cerro Corona Blagodatnoe Pioneer Eleonore Gualcamayo Essakane Tongon Esquel Los Filos Pinos Altos Tropicana Burnstone Quimsacocha Hidden Valley Malomir Buzwagi Hollister Syama Ballarat Mercedes Cadia East Kettle River Cerro Blanco Goldex Kittila Didipio Lapa Bonikro Bombore Jeronimo C1 Santa Luz Buckreef Source: BMO Capital Markets: New Gold Mines Assessed May 2008; and Company Reports

18 Forecast 5 Year Gold Production Growth Gold Production Growth (Moz) NovaGold s attributable production would rank in top five for growth at over 1 million ounces per year NG HAR KCN IAG RSG POG GSS GOLD RBI OGC GBG OZN NEM LGL AEM KGC ABX AUY GG PLZL Source: BMO Capital Markets: New Gold Mines Assessed May 2008; and Company Reports NG Production Estimated for

19 Value Drivers Next 12 Months Corporate Objectives Donlin Creek Complete feasibility study in Q Reserve announcement Initiate permitting process Galore Creek New development plan for project Continue access road work and environmental baseline work in 2009 Nome Operations Restructure bridge loan Look at restart of commissioning project with improved market conditions (credit and equities markets and gold prices) 19

20 Share Capitalization Issued and outstanding Options Warrants outstanding Fully diluted* 107.5M 8.9M 0.75M 117.2M * As of October 31, 2008; excluding convertible notes. 20

21 Corporate Vision Building a premier North American precious metals company Focus on precious metals Focus on three principal assets: Donlin Creek Galore Creek Nome Operations Identify and review strategic alternatives to maximize shareholder value

22 Appendix

23 Reserve & Resource Base Net Share of Contained Metal (1) Project Ownership Resource Category (2) Gold M ozs Copper M lbs Silver M ozs Donlin Creek 50% Measured & Indicated Inferred Galore Creek 50% Measured & Indicated Inferred , , Nome Operations 100% Probable Reserves Measured & Indicated Inferred Other Properties Historical (3) 0.75 Total Reserves + M&I Resources Total Inferred Resources Total Historical Resources (3) , , Source: Company filings. (1) Assumes net inventory to NovaGold of 50% ownership of Donlin Creek, 50% of Galore Creek (60% of Copper Canyon Inferred Resources) and 100% of Nome Operations. Assumes no exercise of Calista s right to earn up to 15% of Donlin Creek. (2) See Cautionary Note Concerning Reserve and Resource Estimates and visit to see a complete breakdown of reserves and resources by property, as well as the technical reports for each project. (3) The historical resource for the Saddle deposit was completed by the Alaska Gold Company in 2000 and the historical resource for Shotgun was completed by Qualified Persons Phil St. George and Robert Prevost, of NovaGold Resources Inc., in Although believed by NovaGold management to be relevant and reliable, these historical resources pre-date NI and are not NI compliant. Technical reports for each project can be found at 23

24 Cautionary Note Concerning Reserve & Resource Estimates This presentation uses the terms probable reserves, measured, indicated, inferred and historical resources. United States investors are advised that, while these terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the SEC ) does not recognize them. Under United States 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. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. National Instrument Standard of Disclosure for Mineral Projects ( NI ), is a rule developed by the Canadian Securities Administrators that governs disclosure of scientific or technical information in relation to mineral projects by Canadian public companies. Unless otherwise indicated, reserve and resource estimates have been prepared in accordance with NI and the Canadian Institute of Mining and Metallurgy Classification System. NI requires disclosure of mineral reserves and resources to fall within specifically defined categories. The historical resource for the Saddle deposit was completed by the Alaska Gold Company in 2000 and the historical resource for Shotgun was completed by Qualified Persons Phil St. George and Robert Prevost, of NovaGold Resources Inc., in Although believed by NovaGold management to be relevant and reliable, these historical resources pre-date NI and are not NI compliant. The requirements of NI related to reserve determination are not the same as those of the SEC, and reserves reported by NovaGold in compliance with NI may not qualify as reserves under SEC standards. U.S. investors are urged to consider closely NovaGold s latest SEC filings. You can review and obtain copies of these filings from NovaGold s website at or the SEC s website at Enterprise value calculations are disclosed solely as a metric to compare NovaGold s value to that of other companies. Enterprise value is not a category or measure prescribed by NI or Canadian or US GAAP, and enterprise value as calculated by NovaGold may differ from calculations of enterprise value by other issuers or industry analysts. Enterprise value calculations should not be interpreted as suggesting that mineral resources have economic viability or that inferred resources will ever be upgraded to a higher category of resource.