nova gold

Document Sample
nova gold
NYSE Alternext, TSX: NG









Rodman & Renshaw Conference

November 2008

Forward-Looking Statements

This presentation includes “forward-looking statements” within the meaning of the United States Private Securities

Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including,

without limitation, statements regarding anticipated completion of feasibility studies, potential results of drilling and

assays, timing of permitting, construction and production and other milestones, and NovaGold’s future operating or

financial performance are forward-looking statements. Estimates of reserves and resources are also forward-

looking statements in that they involve estimates of the mineralization that would be encountered, based on

interpretation of drilling results and certain assumptions, if a deposit were developed and mined. Forward-looking

statements involve various risks and uncertainties. There can be no assurance that such statements will prove to

be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from NovaGold’s expectations include

uncertainties involving the need for additional financing to explore and develop properties and availability of

financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and

geological tests and the estimation of reserves and resources; the need for continued cooperation with Barrick

Gold and Teck Cominco in the exploration and development of the Donlin Creek and Galore Creek properties; the

need for cooperation of government agencies and native groups in the development and operation of the Rock

Creek property and other properties; the need to obtain permits and governmental approvals; risks of construction

and mining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental

and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected

cost increases, fluctuations in metal prices and currency exchange rates, and other risks and uncertainties

disclosed in NovaGold’s Annual Information Form for the year ended November 30, 2007, filed with the Canadian

securities regulatory authorities, and NovaGold’s annual report on Form 40-F filed with the United States Securities

and Exchange Commission and in other NovaGold reports and documents filed with applicable securities

regulatory authorities from time to time. NovaGold’s forward looking statements reflect the beliefs, opinions and

projections on the date the statements are made. NovaGold assumes no obligation to update forward looking

statements of management beliefs, opinions, projections, or other factors should they change.

NOVAGOLD IS A GROWTH COMPANY FOCUSED ON GOLD

EXPLORATION, DEVELOPMENT & PRODUCTION. THE COMPANY HAS

ONE OF THE LARGEST RESOURCE BASES IN THE WORLD RELATIVE

TO ITS PEERS, LOCATED ENTIRELY IN NORTH AMERICA.

Investment Highlights





• First mine start-up September 2008

• Gold production est. 100,000 oz/year

• Gold resources: 21.3M ozs M&I and 5.2M ozs Inferred(1)

• Nome Operations, Donlin Creek and Galore Creek

• Advancing world-class assets with world-class partners

• Donlin Creek 50/50 with Barrick (gold)

• Galore Creek 50/50 with Teck (copper-gold-silver)



• Strong partnerships with Native Alaskan and First Nations groups







(1) M&I resources inclusive of P&P reserves. Inferred resources exclusive of historical resources. See “Cautionary Note Concerning Reserve & Resource Estimates”.



4

Comparative Gold Resources





Developers Recently acquired Producers

Developers

Millions of ozs of gold resources









NovaGold Minefinders Detour Osisko Greystar Viceroy Cumberland Miramar Aurelian Aurizon Alamos Gammon Agnico- Yamana

Lake Eagle





North Mexico Canada Canada Colombia Argentina Canada Canada Ecuador Canada Mexico Mexico North South

America America America









Inferred resources

Measured & Indicated resources







Source: Respective company public filings as of March 2008: See “Cautionary Note Concerning Reserve and Resource Estimates”.

Measured and indicated resources inclusive of proven and probable reserves.

(1) Reflects 50% ownership of Donlin Creek, 50% of Galore Creek, 100% of Nome Operations and 51% of Ambler. 5

Donlin Creek







31.7M 4.2M

ozs Gold ozs Gold

Measured & Indicated(1) Inferred(1)









Donlin Creek









50/50 Partnership with Barrick Gold

(1) At 100% basis





6

Donlin Creek



• One of the largest undeveloped gold deposits in the world

• Native Alaskan Partners: Calista Corporation & The Kuskokwim Corporation

• Increased M&I resources by 15.1M ozs from 2006 (95% increase)









Inferred resources

Measured & Indicated resources







Source: Respective public filings as of March 2008. Note: Measured and indicated resources are inclusive of proven and probable reserves.

See “Cautionary Note Concerning Reserve & Resource Estimates”.

(1) Represents 100% of Donlin Creek resources.

(2) Not NI 43-101 compliant, assumed inferred.

7

Donlin Creek Value Drivers



Preferred project design selected with partner Barrick Gold

• 50,000 tonne per day mill throughput with pressure oxidation and CIL



• Onsite diesel power with wind cogeneration



• More than 20 year mine life with resources currently identified



• One of only a few mines worldwide anticipated to annually produce

1.0 to 1.5 million ozs of gold





• Complete feasibility study in Q1-2009 Reserves

• Initiate permitting in 2009



• Total 3-year budget maximum $100 Million (100% basis)



• Future resource expansion potential









8

Donlin Creek Exploration









Resources are M&I category.

9

Donlin Creek Exploration Potential









10

Nome Operations







1.8M

ozs Gold

0.5M

ozs Gold

Measured & Indicated(1) Probable Reserves







0.3M

ozs Gold Nome Operations

Inferred









NovaGold owns 100%



(1) M&I resources exclusive of P&P reserves.



11

Nome Operations



• First mine start-up September 2008



• Commissioning underway



• Gold production est. 100,000 oz/year



• Anticipated life-of-mine cash costs ~ $500/oz



• Upon commercial production, anticipated to

generate an average of $25 to $35 million at

$750 to $850 gold price



• Native Alaskan Partners: Bering Straits and

Sitnasuak Native Corporations



• Exploration upside

• Increase resource base

• Extend mine life





12

Galore Creek





8.9B

lbs Copper

3.6B

lbs Copper

Measured & Indicated(1) Inferred(1)





7.3M

ozs Gold

3.8M

ozs Gold

Measured & Indicated(1) Inferred(1)





123M

ozs Silver

65M

ozs Silver

Measured & Indicated(1) Inferred(1)

Galore Creek



50/50 Partnership with Teck

(1) At 100% basis





13

Galore Creek



• One of the world’s largest undeveloped copper-gold-silver resources

• First Nations Partner: Tahltan Nation









Inferred gold resources

Measured & Indicated gold resources



Inferred copper resources

Measured & Indicated copper resources





Source: Respective public filings as of March 2008. Projects listed with primary metal as copper and ranked by total copper resources.

Note: Measured and indicated resources are inclusive of proven and probable reserves. See “Cautionary Note Concerning Reserve & Resource Estimates”.

1) Represents 100% of Oyu Tolgoi property and 100% of adjoining Shivee Property (Ivanhoe/Entrée joint venture). Resource estimates from Ivanhoe Mines.

2) Represents 100% of Galore Creek and 60% of Copper Canyon resources. Resource estimate updated as of January 2008.

14

Galore Creek Value Drivers





• Completing engineering and optimization work

• Go-forward plan to be announced end of 2008



• New plan to look at:



• Increased production throughput



• Reduced construction and operational risks



• Expansion potential



• Work on revised development plans 2009



• Teck funding C$72 million to complete their earn-in



• Partners must agree on all budgets









15

Forecast 5 Year Gold Production Growth





2.2

NovaGold’s attributable production would rank in top five for growth

2

at over 1 million ounces per year

1.8

Gold Production Growth (Moz)









1.6



1.4



1.2



1



0.8



0.6



0.4



0.2



0

NG HAR KCN IAG RSG POG GSS GOLD RBI OGC GBG OZN NEM LGL AEM KGC ABX AUY GG PLZL

NG







Source: BMO Capital Markets: New Gold Mines Assessed May 2008; and Company Reports NG Production Estimated for 2014-2015



16

Value Drivers Next 12 Months



Corporate Objectives



Nome Operations

• Commercial production in 2009

• Extending mine life up to 10 years with exploration



Donlin Creek

• Complete feasibility study in Q1-2009

• Reserve announcement

• Initiate permitting process



Galore Creek

• Announce go-forward plan end of 2008

• Revised development plans in 2009









17

Share Capitalization









Issued and Options Warrants Fully diluted*

outstanding outstanding







107.5M 8.9M 0.75M 117.2M









* As of October 31, 2008; excluding convertible notes.

Corporate Vision



Building a premier North American

precious metals company



• Focus on precious metals

• Focus on three principal assets

• Donlin Creek

• Galore Creek

• Nome Operations

• Identify and review strategic alternatives to maximize shareholder

value

Appendix

Reserve & Resource Base



Net Share of Contained Metal(1)

Project Ownership Resource Category(2) Gold M ozs Copper M lbs Silver M ozs



Donlin Creek 50% Measured & Indicated 15.84

Inferred 2.08



Galore Creek 50% Measured & Indicated 3.64 4,463.1 61.55

Inferred 2.74 2,125.1 43.99



Nome Operations 100% Probable Reserves 0.51

Measured & Indicated 1.81

Inferred 0.33



Other Properties Historical(3) 0.75



Total Reserves + M&I Resources 21.28 4,463.1 61.55

Total Inferred Resources 5.17 2,125.1 43.99

Total Historical Resources(3) 0.75









Source: Company filings.

(1) Assumes net inventory to NovaGold of 50% ownership of Donlin Creek, 50% of Galore Creek (60% of Copper Canyon Inferred Resources) and 100% of

Nome Operations. Assumes no exercise of Calista’s right to earn up to 15% of Donlin Creek.

(2) See “Cautionary Note Concerning Reserve and Resource Estimates” and visit www.novagold.net to see a complete breakdown of reserves and resources by

property, as well as the technical reports for each project.

(3) The historical resource for the Saddle deposit was completed by the Alaska Gold Company in 2000 and the historical resource for Shotgun was completed by

Qualified Persons Phil St. George and Robert Prevost, of NovaGold Resources Inc., in 1998. Although believed by NovaGold management to be relevant and

reliable, these historical resources pre-date NI 43-101 and are not NI 43-101 compliant. Technical reports for each project can be found at www.novagold.net.

Cautionary Note Concerning Reserve &

Resource Estimates



This presentation uses the terms “probable reserves”, “measured”, “indicated”, “inferred” and “historical” resources.

United States investors are advised that, while these terms are recognized and required by Canadian securities laws,

the United States Securities and Exchange Commission (the “SEC”) does not recognize them. Under United States

standards, mineralization may not be classified as a “reserve” unless the determination has been made that the

mineralization could be economically and legally produced or extracted at the time the reserve determination is made.

United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be

converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to

whether they can be mined legally or economically. It cannot be assumed that all or any part of the “inferred resources”

will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all

or any part of the inferred resources exist, or that they can be mined legally or economically.

National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43-101”), is a rule developed by the

Canadian Securities Administrators that governs disclosure of scientific or technical information in relation to mineral

projects by Canadian public companies. Unless otherwise indicated, reserve and resource estimates have been prepared

in accordance with NI 43-101 and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101

requires disclosure of mineral reserves and resources to fall within specifically defined categories. The historical resource

for the Saddle deposit was completed by the Alaska Gold Company in 2000 and the historical resource for Shotgun was

completed by Qualified Persons Phil St. George and Robert Prevost, of NovaGold Resources Inc., in 1998. Although

believed by NovaGold management to be relevant and reliable, these historical resources pre-date NI 43-101 and are

not NI 43-101 compliant. The requirements of NI 43-101 related to reserve determination are not the same as those of

the SEC, and reserves reported by NovaGold in compliance with NI 43-101 may not qualify as reserves under SEC

standards.

U.S. investors are urged to consider closely NovaGold’s latest SEC filings. You can review and obtain copies of these

filings from NovaGold’s website at www.novagold.net or the SEC’s website at www.sec.gov.

Enterprise value calculations are disclosed solely as a metric to compare NovaGold’s value to that of other companies.

Enterprise value is not a category or measure prescribed by NI 43-101 or Canadian or US GAAP, and enterprise value

as calculated by NovaGold may differ from calculations of enterprise value by other issuers or industry analysts.

Enterprise value calculations should not be interpreted as suggesting that mineral resources have economic viability

or that inferred resources will ever be upgraded to a higher category of resource.


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