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
Mountain Lake Minerals Inc. is a new Canadian gold exploration company with a portfolio of gold projects in mining-friendly Newfoundland. The company is currently nearing completion of a series of low-cost acquisitions, including the Manuels Gold and Caledonia Brook Projects in the province, and some of the acquisitions have been completed. MLK also owns a 100 percent interest in the high-grade Golden Eye Project at Little River. Located along major gold trends, these properties exhibit the potential to host large-scale mineralizing systems.
Newfoundland ranks among the world’s top 10 mining jurisdictions, according to the Fraser Institute’s Mining Survey. Although Newfoundland’s only producing gold mine, Anaconda Mining’s (TSX:ANX) Point Rousse, is running low on gold reserves, the region has become a recent hotspot for gold exploration and development.
Mountain Lake’s flagship project is the Manuels Gold Project, which has the potential to host extensions of a low-sulphidation epithermal gold system that strikes onto the property. The company commenced a fully funded Phase 1 exploration program in the fall of 2020, which includes drilling, trenching and geological mapping and sampling. This Phase I program is designed to provide the exploration team with a better geological understanding of the alteration, structure and stratigraphy controlling gold mineralization on the property. The results will help inform the remainder of a three-phase exploration approach expected to continue into 2021. Mountain Lake’s management will acquire additional financing to complete Phases 2 and 3 of the Manuels project.
Positive results from three successive exploration programs at the company’s Caledonia Brook Project suggest that potential for granite-hosted gold mineralization similar to Marathon Gold’s Valentine Lake deposit, which lies further southwest and along the same mineralization trend. MLK will continue its ongoing exploration there into 2021.
The Golden Eye Project has historical assays up to 18.9 g/t Au from angular grab samples. A prospectus mineral corridor based on drilling, trenching and soil sampling runs through the center of the property. Canstar Resources, under an option agreement with Altius Resources, surrounds the company’s Golden Eye property and recently announced gold assays up to 4,485 g/t Au along the same mineral trend. Mountain Lake believes its new geological interpretation at the property will result in further gold discovery.
Mountain Lake Minerals is led by a team of seasoned veterans with decades of experience in resource exploration and raising capital. President and CEO Paul Smith is a professional geologist who spent 33 years with the Mineral Resources Section of the Nova Scotia Department of Natural Resources as a Senior Research Gold Geologist and as Liaison Geologist for the Mineral Resources Branch before entering the private sector. Executive Chairman Bill Fleming has years of experience raising equity for small cap companies, including mineral exploration. The team also benefits from a strong network of contacts in Newfoundland’s resource sector.
Mountain Lake’s Manuels gold property covers 21 claims on three contiguous licenses located in eastern Newfoundland. A mere 3 kilometers south of the town of Conception Bay South and adjacent to existing pyrophyllite mining operations, the Manuels project area enjoys excellent infrastructure including paved roads, utilities and a skilled workforce, as well as rail and a seaport immediately to the north.
The Manuels project occurs along an underexplored north-south trending structural setting with epithermal quartz veins hosting a series of vein and breccia gold occurrences along a 10 kilometer long portion of the Manuels high-alumina mineral belt. There are five specific north-south, sub-parallel structures crossing the property that could all host mineralization. There is also potential for an east-west trending mineralizing fault system. Grab samples from the Bergs and Steep Nap vein, which trends onto the property, assayed up to 9.3 g/t Au and 54.3 g/t Au respectively.
Mountain Lake’s management team believes this geological environment is an ideal setting for a large, shallow, volcanogenic low-sulphidation epithermal gold vein system. This setting shares similarities to epithermal systems found in the North Island of New Zealand that gave rise to the Waihi gold deposits.
The company is pursuing both known mineral extensions on the property identified through historical work and new vein systems. In 2004, Rubicon Minerals drilled broad zones of gold-bearing veins and hydrothermal breccia with assay returns of up to 1.9 g/t gold over 0.7 meters. At Bergs, immediately to the north, a grab sample from a 1 meter wide vein trending onto the Manuels property assayed 54.3 g/t gold.
Mountain Lake’s current exploration work will test the strike and down dip potential of this extension.
Mountain Lake has planned a three-phase exploration program at Manuels. Preliminary aspects of its Phase 1 program began in Fall 2020 and are centered on the Steep Nap and Farmers Fields mineral corridors, which transect the entire property. This phase features a 1,000 meter drill program targeting the near-surface and depth extension within each corridor. At the same time, surface trenching will evaluate stratigraphy for correlations with drill results. The company’s Phase II program will consist of additional drilling to test the depth potential of these vein systems as well as trenching and geological mapping. Phase III will include resource evaluation.
Mountain Lake’s team currently believe that extensive zones of high-grade gold mineralization will be encountered both at depth and in new, near-surface gold discoveries.
William (Bill) Fleming—Executive Chairman
Bill Fleming has founded and served as CEO for a number of entrepreneurial companies and has served with senior executive teams dealing with equity and debt financings. Fleming has developed corporate strategies for a wide range of companies, from family-owned businesses to multinational companies. He currently serves as Executive Chairman of Mountain Lake Minerals and was President of Mernova Medicinal Inc., which recently sold to Switzerland-based Creso Pharma Limited. Fleming is a Director of SpeakEasy Cannabis, and he served as the CFO and Director of NWest Energy Corp. He has experience raising equity for small cap companies and has experience in mineral exploration, renewable energy, cannabis and the psychedelic industry.
Paul K. Smith (P.Geo.)—President and CEO
Paul Smith initially assumed the role of president and CEO of Mountain Lake Minerals in July 2012 after the successful plan of arrangement between Mountain Lake Resources and Marathon Gold. A professional geologist with an MSc in structural geology from Acadia University, Smith has a unique mineral deposits skill set that stems from both private and public sector experience. He spent 33 years with the Mineral Resources Section of the Nova Scotia Department of Natural Resources as a Senior Research Gold Geologist and finally as Liaison Geologist for the Mineral Resources Branch. He joined Acadian Mining Corp in 2008 and was instrumental in the cleanup and sale of the ScoZinc Zn-Pb mine at Gays River. Smith joined Mountain Lake Resources in 2011 as Exploration Manager and then became COO. He has strong communication skills and has traveled and worked extensively throughout Canada, the US, Australia and New Zealand.
Kiley Sampson—Independent Director
Kiley Sampson has been a professional engineer in the Marine and Oil and Gas industries for the past 30 years. For the past 15 years he has been the owner and operator of his own business, supplying expertise on both construction and conversion of sea-going vessels. A native of Cape Breton, Sampson has worked for major oil companies and small independent operators alike, at all times delivering customer value with a high degree of technical expertise and knowledge. He is recognized as a leader in marine, oil and gas industry where he specializes in project management with projects now completed ranging from $60 million to $150 million. As project manager, Sampson was recently responsible for the successful delivery of the Cecon Pride, a multipurpose subsea construction vessel. He has experience in both the technical aspects and financial arrangements of complex projects, resulting in positive return on investment for his clients.
Abbey Abdiye—Chief Financial Officer
Abbey Abdiye has extensive experience in the financial sector, in both public and private companies. He is a Chartered Professional Accountant (CPA), and current chief financial officer of reporting issuers, where he is responsible for all financial, fiscal management, regulatory compliance matters and reporting aspects of company operations. He also provides strategic guidance and direction in capital structuring and is engaged in innovative financing programs that leverage sales and development.
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:
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.
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.
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".
Gregory A. Lang
President & CEO
in thousands of U.S. dollars, except for per share amounts
| Three months |
May 31, 2022
| Three months |
May 31, 2021
| Six months |
May 31, 2022
| Six months |
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|
|Loss per share, basic and diluted||(0.04)||(0.03)||(0.07)||(0.06)|
| May 31, 2021 |
| Nov 30, 2021 |
|Cash and term deposits||142,292||169,124|
(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.
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 $30 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|
NOVAGOLD's quarterly reporting schedule for the remainder of 2022 will be as follows:
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 39 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 NI 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.
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.
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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TSX | NYSE | LSE: WPM
Wheaton Precious Metals™ 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 .
SOURCE Wheaton Precious Metals Corp.
View original content: http://www.newswire.ca/en/releases/archive/June2022/29/c6304.html
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YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) ("Yamana" or "the Company") will release its second quarter 2022 operational and financial results after the market closes on Thursday, July 28, 2022, Eastern Daylight Time ("EDT"). The Company will then host a conference call and webcast to review the results on Friday, July 29, 2022 at 9:00 a.m. EDT.
The Company also plans to provide a pre-release of production for the second quarter with a further update on certain optimizations and project advancements on or around Thursday, July 7, 2022.
Second Quarter 2022 Conference Call
|Toll Free (North America):||1-800-806-5484|
|Toronto Local and International:||416-340-2217|
|Toll Free (UK):||00-80042228835|
|Conference Call Replay|
|Toll Free (North America):||1-800-408-3053|
|Toronto Local and International:||905-694-9451|
|Toll Free (UK):||00-80033663052|
The conference call replay will be available from 12:00 p.m. EDT on July 29, 2022, until 11:59 p.m. EDT on August 29, 2022.
Yamana Gold Inc. is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FTI Consulting (UK Public Relations)
Sara Powell / Ben Brewerton
+44 7974 201 715 / +44 203 727 1000
Peel Hunt LLP (Joint UK Corporate Broker)
Ross Allister / David McKeown / Alexander Allen
Telephone: +44 (0) 20 7418 8900
Berenberg (Joint UK Corporate Broker)
Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800
Credit Suisse (Joint UK Corporate Broker)
Ben Lawrence / David Nangle
Telephone: +44 (0) 20 7888 8888
News Provided by GlobeNewswire via QuoteMedia
Is there more upside right now for gold or the US dollar? "I think clearly I'm in the camp of favoring gold on that one," said Will Rhind of GraniteShares.
Will Rhind: Upside Favors Gold; Strong US Dollar Checking Gains for Nowyoutu.be
Strength in the US dollar is keeping the gold price in check right now, but that won't last forever.
Speaking to the Investing News Network, Will Rhind, CEO of GraniteShares, said the yellow metal is in a good position given market conditions and looks set to strengthen moving forward.
"(Gold has) really managed to shrug off a lot of the negatives around rising rates and a strong dollar, and I think people have got to ask themselves, 'How much more can the dollar strengthen from here? ... Realistically is there more upside for the dollar here, or for gold?' I think clearly I'm in the camp of favoring gold on that one," he said.
As the dollar puts downside pressure on gold, inflation is providing support for the precious metal, and despite the US Federal Reserve's efforts, Rhind doesn't see a quick end to rising prices.
"We like to talk about (inflation) as one simple construct, but there is inflation that perhaps the Fed is more in control of and there's inflation that the Fed is much less in control of," he explained.
"I think in some respects it's kind of an unreasonable ask of the Fed to (try to control inflation) given that again there are some things that maybe they ... have more control over than others."
When asked if a recession is in the cards, Rhind referred back to historical precedent.
"I think in history we've never had an environment where inflation's been above I think 4.5 percent and it's been able to be brought down below that number without causing a recession," he explained. "So certainly the probability leans much more towards there being a recession."
Watch the interview above for more from Rhind on gold, as well as on the overall commodities sector.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.