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EXPECTED DEVELOPMENT LIFECYCLE OF ONE OF THE WORLD’S LARGEST OPEN-PIT MINING PROJECTS
1.5 Moz/year
first five full years* life of mine (27+ years)*
1.1Moz/year
CURRENT STATUS
* Donlin Gold data as per the Second Updated Feasibility Study. For current mineral reserves and resources, refer to “Cautionary Note Concerning Reserve & Resource Estimates” and “Mineral Reserves & Mineral Resources” and associated information on page 50. Projected average annual production represents 100% of which NOVAGOLD’s share is 50%.
been monitored at the project level; NOVAGOLD has also regularly communicated that progress through public filings, Management Information Circulars, media releases, corporate presentations,
and our website. Environmental considerations and outreach initiatives with communities in the Y-K region have represented a core focus in the technical and social components of the Donlin Gold project since inception; we just needed to develop a cohesive way to communicate the work already being done. NOVAGOLD and Barrick collaborated to develop Donlin Gold’s environmental and social reporting framework, which we hope you find useful and informative.
In the long term, enhanced ESG reporting constitutes an advantageous progression for a late-stage development company like NOVAGOLD. First, stakeholders benefit from increased transparency in conveying not just measurements of ESG but also targets and projections of future developments, providing both
a road map and more frequent interactions with all stakeholders. Second, increased reporting will further strengthen relationships with communities, investors, and other stakeholders. Third, these efforts will produce an integrated ESG report within our annual reporting and highlight the company’s ongoing ESG work.
We remain fully committed to transparency and engagement. Our approach is to augment the frequency and consistency of
ESG communications with our partners, shareholders, and other stakeholders as we embark on the production of our first annual sustainability summary – which is integrated into this annual report. Additional ESG and COVID-19 pandemic response-related information can also be found in the sustainability section of
the company’s website, along with details about our people and partnerships, health and safety, environmental responsibility, community and social responsibility, education and training, and governance and corporate policies.
Once you have had a chance to read our inaugural sustainability summary, please let us know how we are doing. We are invested in making meaningful improvements in every facet of what we do as we bring Donlin Gold up the value chain.
PERMITTING
Alongside the great achievements of the 2020 drilling program, the record of successful permitting continued in early 2020. With federal permitting complete, Donlin Gold has been working with its Native Corporation partners and continues
to support the State of Alaska in advancing other permits and certifications required for the project. Several milestones were reached this past year with the issuance of key transportation and energy infrastructure approvals for the project. These include the final land leases, land use permits and material site authorizations for the proposed transportation facilities on state lands, and
the final easements for the access road and fiber optic cable.
The remaining permits are not currently on the critical path for further advancement of the project. Permitting takes tremendous leadership and attention to detail, along with transparency from Donlin Gold with the support and contributions of TKC and the communities closest to the project. We are extremely grateful
for the dedicated efforts of the entire team in advancing these remaining permits and approvals for the project, and their overall commitment to environmental and governance best practices.
SUFFICIENT CASH TO ADVANCE DONLIN GOLD THROUGH TO A CONSTRUCTION DECISION
$31-35M
cash and term deposit balance
BUDGET*
TREASURY
$0M $25M
$114M on February 28, 2021
$50M $75M $100M
$125M
$75M receivable from
Newmont in July 2021† $150M $175M
$200M
* Anticipated 2021 expenditures disclosed on January 27, 2021, which includes $18-22M to Donlin Gold and $13M G&A. † NOVAGOLD sold its 50% ownership of the Galore Creek project to Newmont Corp. in 2018. Deferred compensation on the sale of Galore Creek includes $100M; $75M on earlier of Pre-Feasibility Study or July 27, 2021 and $25M on earlier of Feasibility Study or July 27, 2023. An additional $75M is due upon construction approval.
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EXPLORATION & ENVIRONMENTAL STUDIES
UPDATED TECHNICAL STUDIES, ENGINEERING & CONSTRUCTION
PERMITTING
OPERATION