Investing in commodities can prove to be quite risky. Investors are often plagued with the ups and downs of the commodities cycle, dealing with everything from price declines to reduced cash flow. However, the commodities market can be an excellent addition to an investment portfolio — it simply takes a wise investment strategy to capitalize on the highs of the market.
Portfolio diversification allows mining companies to hedge against price declines and minimize the risks associated with the fluctuating values of a singular commodity by expanding its portfolio across multiple commodity markets. As a result, mining companies with diversified portfolios may prove to be an interesting investment for investors seeking less risky commodity investments.
Brunswick Exploration (TSXV:BRW) has a diversified portfolio of highly prospective critical minerals properties in Eastern Canada. The company offers shareholders access to a highly experienced management team and board of directors with a focus on grassroot exploration.
The company's exploration team is led by Robert Wares, founder of the Osisko Group of Companies. Wares is an established and award-winning professional geologist with over 35 years of experience in mineral exploration and development. Wares has a proven track record of world-class discovery, including the Canadian Malartic bulk tonnage gold mine, which later became one of the largest-producing gold mines in Canada.
Brunswick Exploration's notable projects include Pontiac Lithium and North Shore Lithium in Quebec, as well as the Catamaran property in New Brunswick and the NS Critical Minerals package in Nova Scotia. The company also has the Fundy Gold and Bathurst Mining Camp.
The company has a tightly held structure with strong shareholder support. Brunswick Exploration's capital structure consists of 131,369,712 shares outstanding, 12,500,000 warrants, and 3,600,000 options for a total of 147,469,712 fully-diluted shares.
The Fundy Gold project is a high-grade, multi-ounce and gold-polymetallic project, located west of the city of Saint John in Southern New Brunswick, Canada. The project consists of 40 kilometers of strike length along the Fundy Shear Zone, a regional, deep-rooted, and unexplored Appalachian fault system. The project includes the Little Lepreau, Roger's Lake, and Shadow Lake sub-property.
The Fundy Gold project has seen minimal drilling over the years and remains underexplored. The company is currently conducting a significant prospecting initiative across the entire land area to identify new areas of interest.
The properties comprise 87 licenses and 6,524 claims, with a total surface area of 105,624 hectares, located roughly 30 kilometers west of Halifax. The properties contain over 100 pegmatite dykes within the South Mountain Batholith (SMB) that have seen no exploration for lithium — spodumene mineralization. Government of Nova Scotia till samples were taken at roughly two-kilometer spacing over areas underlain by multiple Devonian granitoids of the SMB as well as Cambrian Meguma sediments. Multiple till and rock samples from the government database returned highly anomalous lithium and tin values. It is important to note that the East Kemptville Tin mine and the Brazil Lake lithium deposit are within, or in close proximity to, the SMB.
The Properties comprise 8 claims and 1,821 units with a total surface area of 40,363 hectares. They are located roughly 30 kilometers south east of Plaster Rock and roughly 30 kilometers east of Florenceville-Bristol. Including previously staked ground, the property is host to over 60 pegmatites that have seen little to no exploration work. Till samples collected by the Government of New Brunswick were taken at roughly two-kilometer spacing and are underlain by pegmatitic granites and gneissic to migmatitic sediments from the Devonian and Ordovician. Highlights from the survey include an 11-kilometer till anomaly containing nine samples between 53 to 103 ppm of lithium, neighbouring known beryllium and pegmatite occurrences.
Brunswick Exploration has identified approximately 30 pegmatite dykes and sills on its North Shore Lithium Project, with a minimum strike length of 1,200 metres, as well as dozens of smaller pegmatite dykes. The longest pegmatite identified through satellite imagery and geological compilation measures approximately 14 kilometres in strike length. None of the pegmatites on the North Shore Lithium Project have seen exploration for lithium and all consist of S-type pegmatites containing any combination of indicator minerals, including muscovite, garnet, tourmaline and beryl. Lithium-bearing LCT pegmatites are metal enriched S-type pegmatites that may also contain cesium, tantalum, beryllium, and tin mineralization. Brunswick Exploration will begin a prospecting campaign in this area in late Q3 2022, first focusing its efforts on the previously-disclosed Pontiac Lithium Project.
The Bathurst Mining Camp project is a high-grade base metal VMS project located in the Bathurst Mining Camp, south of the city of Bathurst in New Brunswick. The Bathurst Mining Camp project consists of the Key Anacon and Gilmour South deposits found in the eastern portion of the Bathurst Mining Camp. The property features zinc-lead-copper-silver-bearing sulphide mineralization, host-rock types and alteration that mimics deposits found in the prolific Brunswick Belt. Exploration in the camp will focus on the highly prospective Brunswick Belt.
The Lac Edouard project is a nickel-copper project located in Quebec.
Drilling was conducted on the property in summer 2021. The company is currently awaiting assay results from the summer drilling program.
The company is currently prospecting and conducting geological mapping on the property. A ground geophysical survey began in November 2021 to confirm an airborne anomaly.
Robert Wares is a professional geologist with over 35 years of experience in mineral exploration and development. He was responsible for the discovery of the Canadian Malartic bulk tonnage gold mine. The Canadian Malartic bulk tonnage gold mine was subsequently developed by Osisko Mining Inc. into one of Canada's largest gold producers. Among other awards, Wares was a co-winner of the Prospectors and Developers Association of Canada's "Prospector of the Year Award" for 2007. Wares was also named, together with John Burzynski and Sean Roosen as "Mining Men of the Year" for 2009 by the Northern Miner. Wares also sits on the board of directors of Osisko Metals Inc. Wares has a Bachelor of Science and an Honorary Doctorate in Earth Sciences from McGill University.
From 2017 to 2021, Killian Charles worked as VP of corporate development for Osisko Metals. Mr. Charles was previously the manager of corporate development at Integra Gold Corp. Integra Gold Corp was an advanced stage gold development company until it was acquired by Eldorado Gold in July of 2017. Before that, he worked as a mining analyst at Industrial Alliance Securities and Laurentian Bank Securities. As a mining analyst, Mr. Charles covered small and mid-cap exploration and production companies. Mr. Charles holds a Bachelor of Science with a Major in Earth and Planetary Sciences from McGill University.
Jeffrey Hussey is a P. Geo. who has 32 years of professional experience in the mining industry. He has worked in both open pit and underground mine operations at various stages of mine life from start-up to mine closure. More recently, Hussey worked in mineral exploration and development projects. He spent nineteen years with Noranda/Falconbridge. His mine operation experience includes work at the Brunswick No. 12 mine, Gaspé Copper mines, the Antamina mine start-up in Peru and the Raglan mine in Northern Quebec. Hussey was the senior scientist with the Mining Technology Group at the Noranda Technology Center in 2002. In this role, Hussey enhanced his network into the metallurgical research and mining innovation fields. Hussey is president and COO of Osisko Metals. Hussey has a Bachelor of Science in Geology from the University of New Brunswick.
Amy Satov is the senior legal counsel of Nuvei Technologies Corp. since April 2020. Satov holds a B.A., LL.B. and M.B.A. Satov currently serves as a director and chair of multiple committees at various organizations, including the corporate governance committee of Osisko Mining Inc., the compensation committee of O3 Mining Inc. and the corporate governance and compensation committee of Brunswick Exploration Inc. (. Formerly, she also served as chief executive officer of BL Solutions Inc., a national lighting distributor, from November 2019 to March 2020. Satov also served as a director and chair of the audit committee of Cannara Biotech Inc. up to January 2020 and the chief executive officer of Litron Distributors Ltd. up to April 2020.
Before 2012, Satov was the executive vice president of legal, compliance and distribution and corporate secretary of DundeeWealth Inc. DundeeWealth Inc. is a wealth management company with $80 billion of assets under management that was acquired by The Bank of Nova Scotia in 2011. In this role, Satov oversaw all legal and compliance matters and was actively involved in DundeeWealth's expansion into Europe and the U.S. Satov also sat on various subsidiary boards of DundeeWealth. She advised on all M&A activities as well as securities, regulatory and other corporate commercial matters at DundeeWealth. In 2010, Satov was recognized by Strathmore's "Who's Who" for excellence and achievement in her profession.
Mathieu Savard is a graduate of the Universite du Quebec a Montreal with a bachelor's degree in earth sciences. Savard has over 20 years of experience in the mining industry. Savard previously served as the senior vice president of exploration at Osisko Mining. Before joining Osisko Mining in 2016, Savard was a senior member of the Osisko Exploration James Bay, Virginia Mines and Virginia Gold Mines teams. Savard was a key member of the Virginia team which received the Association de l'Exploration Miniere du Québec's Prospector of the Year Award in 2004. The team also received the PDAC's prestigious Bill Dennis Award in 2006 for the discovery of the Eleonore gold deposit. Along with the Osisko Mining management and exploration team, Savard also received the AEMQ 2017 Discovery of the Year Award for the discovery of the Lynx deposit at Windfall. Savard is a registered P.Geo as a member of the Ordre des Géologues du Québec. Savard is also chairman of the board and a director of the AEMQ.
André Le Bel was appointed as vice president of legal affairs and corporate secretary of Osisko Mining in February 2015. From November 2007 to June 2014, Le Bel was vice president of legal affairs and corporate secretary of Osisko Mining Corporation.* Le Bel was the vice president of legal affairs at IAMGOLD Corporation from November 2006 to October 2007. Before November 2006, Le Bel was senior legal counsel and assistant corporate secretary of Cambior Inc. He is also the corporate secretary of Falco Resources Ltd.
Pierre Colas has been a corporate director since 2014. He was previously vice president of corporate financing at Industrielle Alliance Securities from 2009 to 2014. He was also the vice president of corporate financing at Desjardins Securities from 2005 to 2009.
All amounts expressed in US Dollars
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) continues to invest in creating value for all stakeholders and in supporting the communities that host its mines, president and chief executive Mark Bristow said here today.
Speaking to media at the company's Loulo-Gounkoto complex, Bristow noted the commissioning of the Gounkoto underground mine and the Gara West open pit, the continuing replacement of reserves, the extension of the solar power plant and the further strengthening of local partnerships as instances of the company's long-term commitment to the country.
"In the first half of the year we've contributed $337 million to the Malian economy in the form of taxes, royalties, dividends, salaries and payments to local suppliers, taking the lifetime contribution of Barrick, previously Randgold, to $8.5 billion. We're particularly proud of the fact the Gara West pit is being mined for us by two Malian contractors we have mentored," he said.
At the halfway mark of the year, the complex is on track to meet its production guidance for 2022, replace annual reserve depletion to further extend its mine life, and maintain its exemplary safety record, with no lost time injuries or major environmental events during the past quarter.
It continues to invest in sustainable economic community projects, establishing a motel, a farm for Kenieba women and three water supply systems during the quarter. The Loulo agricultural college, designed as the foundation of a sustainable regional agribusiness, has already trained 21 women and 143 men and created 30 farms.
Since the opening of the mine, Loulo-Gounkoto has built 20 schools in its neighbouring villages, taking student enrolment from 500 to more than 5,000. Seventy-eight of them are currently benefitting from the complex's bursary program and Loulo-Gounkoto is also supporting teachers' salaries.
"First as Randgold and now as Barrick, we've been operating in Mali for 25 years and we plan to be here for at least as long again. The strong and mutually rewarding partnerships we have forged with the government, local business partners and our host communities are the key to our success and an example to Africa's other mining countries," Bristow said.
Enquiries
President and CEO
Mark Bristow
+1 647 205 7694
+44 788 071 1386
Group Regional Manager, West Africa
Mahamadou Samaké
+223 66 75 61 36
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "continue", "on track", "maintain", "commitment", "value", "guidance", and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Loulo-Gounkoto's production guidance and performance; Loulo-Gounkoto's ability to continue to replace mineral reserves net of depletion and extend the mine life; Loulo-Gounkoto's safety performance; Barrick's commitment to Mali and investment in the development of local communities, including to support local employment, education and development programs.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; the possibility that future exploration results will not be consistent with the Company's expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the Mali and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and legal and administrative proceedings; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. Barrick also cautions that its guidance may be impacted by the unprecedented business and social disruption caused by the spread of Covid-19. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
News Provided by GlobeNewswire via QuoteMedia
Donlin Gold's Largest Drill Program in Over 10 Years Advancing in Preparation for Feasibility Work
Strong Treasury of $142 Million in Cash and Term Deposits; $25 Million of Receivables in 2023
NOVAGOLD RESOURCES INC. ("NOVAGOLD" or "the Company") (NYSE American, TSX: NG) today released its 2022 second quarter financial results and an update on its Tier One 1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Corporation ("Barrick").
Details of the financial results for the quarter ended May 31, 2022 are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on June 29, 2022 that is available on the Company's website at www.novagold.com , on SEDAR at www.sedar.com , and on EDGAR at www.sec.gov . All amounts are in U.S. dollars unless otherwise stated.
In the second quarter 2022, the following milestones were achieved at Donlin Gold:
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1 NOVAGOLD defines a Tier One gold development project as one with a projected production life of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average projected cash costs over the production life that are in the lower half of the industry cost curve.
President's Message
Donlin Gold's Largest Drill Program in More Than 10 Years Progressing Ahead of Schedule
The prime focus of our activities this year is to undertake a 34,000-meter drill program with tight-spaced grid drilling as well as in-pit and ex-pit exploration; and to input the results from this drilling into the geologic modelling and interpretation work that is being used for updated resource models. In addition to the engineering studies being undertaken, this program will as a whole enable commencement of an updated feasibility study. The Donlin Gold total 2022 expenditures are anticipated to be $60 million (of which NOVAGOLD's portion is 50%). The budget also supports the advancement of environmental activities, and finances community and external affairs efforts.
Following the excellent results of 2021, we are encouraged by the significant drill program for 2022, with drilling also focused on upside prospects in the ACMA and Lewis pits where drilling so far has been limited. In the second quarter 2022, the team of 150 people at Donlin Gold are advancing drilling activities at a good pace, with more than 70% of the planned drilling completed to date. We expect the first set of assay results from the 2022 drill program to be issued this summer.
The health and safety of our workforce, both at NOVAGOLD and at Donlin Gold, is a priority. Both NOVAGOLD and Donlin Gold have implemented strict safety protocols, and COVID-19 mitigation measures are still in place at Donlin Gold to ensure the staff rotations in and out of the camp are conducted in both an efficient and safe manner.
The 2021 drill program results are being incorporated into updated geologic and resource models as well as mining schedules and life of mine business plans ahead of the update to the feasibility study, which is expected to commence in 2022, subject to a formal decision by the Donlin Gold LLC Board.
Onwards and Upwards
Donlin Gold is fortunate to enjoy time-tested partnerships with Calista and TKC, owners of the mineral and surface rights, respectively. The project's location on private land specially designated for mining activities through the 1971 Alaska Native Claims Settlement Act (ANCSA) constitutes a key attribute that distinguishes it from most other mining assets in Alaska. Our longstanding commitment to meaningful tribal consultation throughout project development and permitting has been demonstrated over decades of reliable and dependable engagement with the community.
And it shows. Donlin Gold received its federal permits in 2018 and most of the key State permits are also in place. This represents a tremendous achievement and the product of a substantial undertaking, over many years, to ensure a diligent, thorough, transparent, and inclusive process for all involved – including stakeholders from the Y-K region.
On May 16, 2022, ADEC's Division of Water upheld the 401 Certification of the CWA which had been remanded to the ADEC on December 29, 2021. On June 13 th , 2022, Earthjustice and Orutsararmiut Native Council (ONC) requested that the ADEC Commissioner conduct an additional adjudicatory hearing on the part of the Division of Water's decision related to potential water temperature effects in Crooked Creek.
In 2021, the State of Alaska's issuance of water rights for the mine and transportation facilities was appealed to the Commissioner of the Alaska Department of Natural Resources (ADNR). On April 25, 2022, the ADNR Commissioner denied the appeal; however, Earthjustice, ONC and five villages appealed the Commissioner's decision in Alaska Superior Court on May 25, 2022. A briefing schedule has not yet been set by the Court. Donlin Gold and the owners will continue to support the State in its defense of their thorough and diligent permitting process.
On September 20, 2021, ADNR's issuance of the Right-of-Way (ROW) lease for the portions of the natural gas pipeline on State lands was separately appealed in Alaska Superior Court by two parties: (1) Earthjustice representing ONC, the native villages of Eek, Chevak, and Kwigillingok, and Cook Inletkeeper; and (2) Robert Fithian, an adventure business owner who operates near the ROW. On April 5, 2022, Earthjustice filed its opening brief, ADNR and Donlin Gold then filed their response briefs on June 16, 2022. Mr. Fithian filed his opening brief on June 8, 2022, ADNR and Donlin Gold are working on their response briefs.
Donlin Gold has applied for a new air quality permit from ADEC to be in place when the extension of the current permit expires in mid-2023. We anticipate that ADEC will issue a draft of the new permit for public comment in the second half of 2022. We are also working with the ADNR, the U.S. Bureau of Land Management, and our Alaska Native Corporation partners on re-locating certain public easements and ROWs in the mine and transportation facility areas for public safety purposes. Alternate routes will be constructed and available before any existing planned routes are closed (some of which are not passable during much of the year). We anticipate that the proposed re-locations will be issued for public comment sometime in 2022.
Donlin Gold, working with its Native Corporation partners, continues to support the State of Alaska to advance other permits and certificates for the project. The field work related to the issuance of the Alaska Dam Safety certificates is expected to recommence during the second half of 2022 or the first half of 2023.
Native Corporation Participation and Consistent Community Engagement
NOVAGOLD prides itself on having been a longstanding leader in ESG. We are committed to delivering long-term value to all our stakeholders through responsible mining, the protection of human life, good stewardship of the environment, and adding value to the local communities in which we operate. Donlin Gold's Native Corporation partners, Calista and TKC, provide valuable insight about their region, way of life, culture, and ANCSA mandate, under which the Donlin Gold lands were selected and set aside for mining activities to promote the economic prosperity of their shareholders. As private landowners, Calista and TKC are committed to developing a mining operation that is consistent with the Elders' vision of responsible development – one that creates jobs and economic benefits for the communities while mitigating impacts to the environment and protecting local culture.
In the second quarter, Donlin Gold participated in and sponsored multiple local events with Calista and TKC, providing a wide range of critical support and engagement activities throughout the Y-K region. This encompassed a broad array of projects including the signing of a new Shared Value Statement with Stony River, a village in the Y-K region, for a total of nine Shared Value Statements to date (Akiak, Sleetmute, Kalskag, Napaimute, Crooked Creek, Napaskiak, Nikolai, Tuluksak, and Stony River). In addition, we undertook numerous educational, environmental, and social initiatives to help support villages, such as working with TKC to charter flights with drinking water to Red Devil, one of the local communities on the Kuskokwim River, following a flood in May as a result of the ice breakup that temporarily contaminated local water wells, supporting the Skwentna 200 snowmobile race, and sponsoring the Lower Kuskokwim School District's annual College and Career fair with 30 vendors and 89 students attending the virtual event.
Additionally, Donlin Gold sponsored statewide events including the Native Youth Olympics and the Arctic Encounter Symposium – the largest annual Arctic policy event in the United States. Donlin Gold was also the principal sponsor of the 50 th anniversary of the Iditarod, the 1,000-mile sled-dog race, often referred to as "The Last Great Race". This event holds a special connection with the gold rush days in Alaska and is a reconstruction of the freight route to Nome through which much needed supplies as well as news from afar were once delivered. In March 2022, 49 mushers and their dogs participated in the race, with numerous volunteers and veterinarians to support and care for the mushers and dogs along the various checkpoints.
A Rare High-Quality Gold Asset in a Jurisdiction that Welcomes Responsible Development
In our view, Donlin Gold is a rare gold development asset. The reason for such a unique status, beyond providing investors with pure leverage to gold, lies in the project's key attributes – namely: Size (no gold mine ever began production with 39 million ounces in Measured and Indicated Resources, inclusive of Proven and Probable Mineral Reserves); Scale (expected to be a million-ounce-per-year producer with a projected mine life of at least 27 years); Low Cost (anticipated to be one of the lowest cost producers due to the high-grade large-scale open-pit, grading 2.24 grams per tonne 2 or twice the industry average for an open-pit project 3 ); Growth (excellent exploration potential beyond the planned 27 years of production with defined resources located on only three kilometers of an eight-kilometer mineralized belt, which itself represents less than 5% of the total land package); and Jurisdiction (having the good fortune of being located in Alaska, one of the safest jurisdictions in the world, on private land specifically designated for mining by our partners Calista and TKC).
It is our belief that Donlin Gold is poised to become the greatest gold story in the development space. We have protected these resources, substantially de-risked Donlin Gold over many years, committed to responsible mining, dedicated to building trust and transparency, and continuing to work to find ways to improve and enhance the project as well as building a legacy.
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2 Donlin Gold data as per the 2021 Technical Report and S-K 1300 Report (both as defined herein). Donlin Gold possesses Measured Resources of approximately 8 Mt grading 2.52 g/t and Indicated Resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of Mineral Reserves, of which approximately 4 Mt of Measured Resources and approximately 267 Mt of Indicated Resources inclusive of Reserves is attributable to NOVAGOLD through its 50% ownership interest in Donlin Gold LLC. Exclusive of Mineral Reserves, Donlin Gold possesses Measured Resources of approximately 1 Mt grading 2.23 g/t and Indicated Resources of approximately 69 Mt grading 2.44 g/t, of which approximately 0.5 Mt of Measured Resources and approximately 35 Mt of Indicated Resources exclusive of Mineral Reserves is attributable to NOVAGOLD. Donlin Gold possesses Proven Reserves of approximately 8 Mt grading 2.32 g/t and Probable Reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis, of which approximately 4 Mt of Proven Reserves and approximately 249 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Resources and Reserves have been estimated in accordance with NI 43-101 and S-K 1300.
3 2020 average grade of open pit and underground deposits with gold as primary commodity and over 1 Moz in measured and indicated resources is 1.12 g/t, sourced from S&P Global Market Intelligence.
Strong Balance Sheet to Undertake Donlin Gold Activities and Studies
In looking back at our successive milestones over the past decade, we are grateful to all who contributed to our progress to date in advancing the Donlin Gold project. Having a solid treasury for more than 10 years has afforded us the opportunity to advance our corporate strategy without going back to the market to raise funds. With $142 million in cash and term deposits as of May 31, 2022, with $25 million due in July 2023 from Newmont Corporation, and an additional payment of $75 million contingent upon the owners of Galore Creek making a construction decision, we believe we have resources that are more than sufficient to advance Donlin Gold activities up to a construction decision.
Our staunch shareholders – some of whom have provided support for well over a decade – together form an important part of the equation. Our largest institutional investors such as Paulson & Co., Fidelity Investments, BlackRock, the Saudi Public Investment Fund, First Eagle, and EXOR see the investment opportunity in NOVAGOLD and clearly understand how the extraordinary gold development asset that is Donlin Gold can provide true octane to their portfolios as the increasingly strong case for gold unfolds and gathers momentum. The Company is very appreciative of their continued interest and commitment.
It is because of the teams of dedicated professionals at NOVAGOLD, Donlin Gold, Barrick, Native Corporation partners Calista and TKC, contractors, and representatives from the federal and state agencies who adhere to best practices that we can responsibly advance this important, high-quality gold asset up the value chain. We are grateful to them all.
NOVAGOLD's valued leadership team and Board of Directors go above and beyond in providing strategic guidance and upholding the highest standards in environmental, financial, corporate governance and ethical business practices, and I am so thankful for their solidarity and steadfast dedication. Together we mourned the recent and tragic passing of our dear colleague and long-term Board member, Igor Levental, with whom I had the great pleasure of working for well over 30 years – including at Homestake Mining Company and International Corona Capital Corporation. He will be sorely missed, as will be his exceptional counsel, characteristic sense of humor, and singular love of life. In many respects, our collective success has been and shall remain one of Igor's greatest legacies as we look forward to the future with confidence and optimism. As our Chairman, Dr. Thomas Kaplan, wrote in a heartfelt Tribute here: " Onwards and Upwards: A Tribute to a Cherished Friend, Igor Levental ", invoking a sentiment with which Igor would wholeheartedly agree, "Onwards and Upwards".
Sincerely,
Gregory A. Lang
President & CEO
Financial Results
in thousands of U.S. dollars, except for per share amounts
| Three months ended May 31, 2022 $ | Three months ended May 31, 2021 $ | Six months ended May 31, 2022 $ | Six months ended May 31, 2021 $ | |
| General and administrative expense (1) | 5,371 | 4,992 | 10,548 | 10,321 |
| Share of losses – Donlin Gold | 8,441 | 4,198 | 12,481 | 6,166 |
| Total operating expenses | 13,812 | 9,190 | 23,029 | 16,487 |
| Loss from operations | (13,812) | (9,190) | (23,029) | (16,487) |
| Interest expense on promissory note | (1,684) | (1,480) | (3,196) | (2,914) |
| Accretion of notes receivable | 209 | 854 | 419 | 1,708 |
| Other income | 317 | (705) | 841 | (784) |
| Net loss | (14,970) | (10,521) | (24,965) | (18,477) |
| Loss per share, basic and diluted | (0.04) | (0.03) | (0.07) | (0.06) |
| At | At | |||
| May 31, 2021 $ | Nov 30, 2021 $ | |||
| Cash and term deposits | 142,292 | 169,124 | ||
| Total assets | 178,514 | 198,852 | ||
| Total liabilities | 122,859 | 120,570 |
(1) Includes share-based compensation expense of $2,105 and $2,095 in the second quarter of 2022 and 2021, respectively, and $4,196 and $4,137 in the first six months of 2022 and 2021, respectively.
In the second quarter of 2022, Net loss increased by $4.4 million from 2021, primarily due to the expanded Donlin Gold work program. Lower accretion income due to the maturity of the $75 million Newmont note in July 2021 and higher interest expense on the Barrick promissory note was offset by foreign exchange movements.
In the first six months of 2022, Net loss increased by $6.5 million from 2021, primarily due to the expanded Donlin Gold work program. Lower accretion income and higher interest expense on the Barrick promissory note was offset by an increase in the fair market value of marketable securities and foreign exchange movements.
Liquidity and Capital Resources
In the second quarter of 2022 cash and cash equivalents decreased by $4.8 million, primarily to fund our share of Donlin Gold and for corporate administrative expenses, partially offset by a net $8 million received from term deposits. The decrease in cash used in the second quarter of 2022 compared to 2021 was due to the net increase in net proceeds received from term deposits, partially offset by the expanded Donlin Gold work program.
In the first six months of 2022 cash and cash equivalents decreased by $18.8 million, primarily to fund our share of Donlin Gold, for corporate administrative expenses, and for withholding taxes on share-based payments, partially offset by a net $8 million received from term deposits. The increase in cash used in the first six months of 2022 compared to 2021 was due to the expanded Donlin Gold work program, the timing of corporate liability insurance payments, increased withholding tax on share-based compensation in 2022 (no cash was used for CEO and CFO withholdings in 2021), partially offset by a net increase in net proceeds received from term deposits.
At the end of the second quarter, cash and term deposits were $142.3 million (cash $72.3 million, term deposits $70 million). An additional payment from Newmont of $25 million comes due in 2023 related to the sale of NOVAGOLD's 50% interest in the Galore Creek project in 2018, along with a note receivable for $75 million contingent upon approval of a Galore Creek project construction plan by the owner(s). At present, we believe we have sufficient working capital available to cover anticipated funding of the Donlin Gold project and corporate general and administrative costs until a decision to commence engineering and construction is reached by the Donlin Gold board for the Donlin Gold project, at which point substantial additional capital will be required.
2022 Outlook
We anticipate spending approximately $46 million in 2022, which includes $13 million for corporate general and administrative costs; $3 million for withholding taxes on PSUs and other working capital; and $30Â million to fund our share of expenditures at the Donlin Gold project, including:
NOVAGOLD's primary goals in 2022 are to continue to advance the Donlin Gold project toward a construction decision; maintain or increase support for Donlin Gold among the project's stakeholders; promote a strong safety, sustainability, and environmental culture; maintain a peer-leading reputation for NOVAGOLD, its governance practices and its project among shareholders; and manage the Company treasury effectively and efficiently. Our operations primarily relate to the delivery of project milestones, including the achievement of various technical, environmental, sustainable development, economic and legal objectives, obtaining necessary permits, commencement of feasibility studies, preparation of engineering designs and the financing to fund these objectives.
Conference Call & Webcast Details
NOVAGOLD's conference call and webcast to discuss these results will take place on July 6, 2022, at 8:00 am PT (11:00 am ET). The webcast and conference call-in details are provided below.
| Video Webcast: www.novagold.com/investors/events | ||
| North American callers: | 1-800-319-4610 | |
| International callers: | 1-604-638-5340 | |
NOVAGOLD's quarterly reporting schedule for the remainder of 2022 will be as follows:
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company focused on the development of its 50%-owned Donlin Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39Â million ounces of gold in the Measured and Indicated Mineral Resource categories, inclusive of Proven and Probable Mineral Reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne in the Measured and Indicated Resource categories on a 100% basis), 4 Donlin Gold is regarded to be one of the largest, highest-grade, and most prospective known open-pit gold deposits in the world.
According to the 2021 Technical Report and the S-K 1300 Report, once in production, Donlin Gold is expected to produce an average of more than one million ounces per year over a 27-year mine life on a 100 percent basis. The Donlin Gold project has substantial exploration potential beyond the designed footprint which currently covers three kilometers of an approximately eight-kilometer-long gold-bearing trend. Current activities at Donlin Gold are focused on State permitting, optimization work, community outreach, and workforce development in preparation for the eventual construction and operation of this project. With a strong balance sheet, NOVAGOLD is well-positioned to fund its share of permitting and optimization advancement efforts at the Donlin Gold project.
Scientific and Technical Information
Certain scientific and technical information contained herein with respect to the Donlin Gold project is derived from the 2021 Technical Report and the S-K 1300 Report 5 . Henry Kim, P.Geo., Senior Resource Geologist, Wood Canada Limited; Mike Woloschuk, P.Eng., VP Global Business Development & Consulting, Wood Group USA, Inc.; and Kirk Hanson, MBA, P.E., Technical Director, Open Pit Mining, Wood Group USA, Inc. are the Qualified Persons responsible for the preparation of the 2021 Technical Report, and each is an independent Qualified Person as defined by National Instrument 43-101 ("NI 43-101"). Wood prepared the S-K 1300 Report.
Paul Chilson, P.E., who is the Manager, Mine Engineering for NOVAGOLD and a Qualified Person under NIÂ 43-101, has approved and verified the scientific and technical information related to the 2022 Donlin Gold project drill program, the 2021 Technical Report and the S-K 1300 Report contained in this media release.
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4 Donlin Gold data as per the 2021 Technical Report and the S-K 1300 Report, as defined below.
Donlin Gold possesses Measured Resources of approximately 8 Mt grading 2.52 g/t and Indicated Resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of Mineral Reserves, of which approximately 4 Mt of Measured Resources and approximately 267 Mt of Indicated Resources inclusive of Reserves is attributable to NOVAGOLD through its 50% ownership interest in Donlin Gold LLC. Exclusive of Mineral Reserves, Donlin Gold possesses Measured Resources of approximately 1 Mt grading 2.23 g/t and Indicated Resources of approximately 69 Mt grading 2.44 g/t, of which approximately 0.5 Mt of Measured Resources and approximately 35 Mt of Indicated Resources exclusive of Mineral Reserves is attributable to NOVAGOLD. Donlin Gold possesses Proven Reserves of approximately 8 Mt grading 2.32 g/t and Probable Reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis, of which approximately 4 Mt of Proven Reserves and approximately 249 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Resources and Reserves have been estimated in accordance with NI 43-101 and S-K 1300.
5 The Company retained Wood Canada Limited ("Wood") in 2021 to update content in its previously filed " Donlin Creek Gold Project, Alaska, USA, NI 43-101 Technical Report on the Second Updated Feasibility Study ," effective November 18, 2011, and amended January 20, 2012. This update resulted in a report titled "NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA" with an effective date of June 1, 2021 (the "2021 Technical Report") and was filed on August 31, 2021. The Company is a registrant with the SEC and is reporting its exploration results, Mineral Resources, and Mineral Reserves in accordance with Subpart 229.1300 of Regulation S-K – Disclosure by Registrants Engaged in Mining Operations ("S-K 1300") as of November 30, 2021. While the S-K 1300 rules are similar to National Instrument 43-101 Standards of Disclosure for Mineral Projects rules in Canada, they are not identical and therefore two reports have been produced for the Donlin Gold project. The Company requested that Wood prepare a Technical Report Summary of the Donlin Gold project, Alaska, USA using the standards of S-K 1300 and it is titled " S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA " ("S-K 1300 Report"), current as of November 30, 2021. Wood incorporated 2020 costs and new gold price guidance to meet the Company's reporting requirements. The resultant 2021 Technical Report and S-K 1300 Report showed no material change to the previously reported mineral resources or mineral reserves.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This media 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. 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", "would" or "should" occur or be achieved. Forward-looking statements are necessarily based on several opinions, estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, included herein are forward-looking statements. These forward-looking statements include statements regarding the anticipated results of the 2022 drill programs; the anticipated timing of certain judicial and/or administrative decisions; the 2022 Outlook; the timing and potential for an updated feasibility study on the project; our goals for the remainder of 2022; anticipated benefits from the 2017, 2020, 2021, and 2022 drill programs including an improved geological model for Donlin Gold; ongoing support provided to key stakeholders including Native Corporation partners; the potential impact of the COVID-19 pandemic on the development of Donlin Gold; the potential development and construction of Donlin Gold; the sufficiency of funds to continue to advance development of Donlin Gold; perceived merit of properties; mineral reserve and mineral resource estimates; Donlin Gold's ability to secure the permits needed to construct and operate the Donlin Gold project in a timely manner, if at all; legal challenges to Donlin Gold's existing permits; the Donlin Gold LLC Board approval to advance Donlin Gold up the value chain; the success of the strategic mine plan for Donlin Gold; the outcome of the planned tight spaced and exploration drilling; and the conversion of Galore Creek into a mine and the receipt of $25 million due in July 2023 from Newmont Corporation and the $75 million contingent payment from Newmont. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are not historical facts but instead represent the expectations of NOVAGOLD management's estimates and projections regarding future events or circumstances on the date the statements are made.
Important factors that could cause actual results to differ materially from expectations include the need to obtain additional permits and governmental approvals; the timing and likelihood of obtaining and maintaining permits necessary to construct and operate; the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; the coronavirus global pandemic (COVID-19); uncertainties involved in the interpretation of drill results and geological tests and the estimation of reserves and resources; changes in mineral production performance, exploitation and exploration successes; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the United States or Canada; the need for continued cooperation between Barrick and NOVAGOLD for the continued exploration, development and eventual construction of the Donlin Gold property; the need for cooperation of government agencies and Native groups in the development and operation of properties; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, disease pandemics, 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; whether a positive construction decision will be made regarding Donlin Gold; and other risks and uncertainties disclosed in NOVAGOLD's most recent reports on Forms 10-K and 10-Q, particularly the "Risk Factors" sections of those reports and other documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. Copies of these filings may be obtained by visiting NOVAGOLD's website at www.novagold.com , or the SEC's website at www.sec.gov , or at www.sedar.com . The forward-looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD 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.
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Wheaton Precious Metalsâ„¢ Corp. ("Wheaton" or the "Company") is pleased to announce that it has been named to the Corporate Knights' 2022 list of the Best 50 Corporate Citizens in Canada .
"At Wheaton, sustainability is ingrained in every aspect of our business, including the high expectations and standards we set for ourselves and our partners," said Randy Smallwood , Wheaton's President and Chief Executive Officer. "We are honoured that our ESG efforts have been recognized in this year's list of the Best 50 Corporate Citizens in Canada ."
Corporate Knights, a Canadian media and research company has been producing global corporate and fund rankings for 20 years. Selected from a pool of 332 Canadian companies, including all those with revenues over $1 billion – each evaluated on a set of 24 environmental, social and governance indicators, relative to their industry peers and using publicly available information – the Best 50 Corporate Citizens sets the standard for sustainability leadership in Canada.
Within the overall Asset Management peer group, Wheaton ranked third among 207 global companies and within the GICS Industry of Metals and Mining, Wheaton finished ninth among 304 global companies.
Wheaton recently published its third annual Sustainability Report highlighting the Company's Environmental, Social and Governance (ESG) performance and continued leadership. The report is available for download here .
View original content: https://www.prnewswire.com/news-releases/wheaton-precious-metals-recognized-in-corporate-knights-2022-list-of-the-best-50-corporate-citizens-in-canada-301578314.html
SOURCE Wheaton Precious Metals Corp.
View original content: http://www.newswire.ca/en/releases/archive/June2022/29/c6304.html
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