Donlin Creek Feasibility Study Adds 14.7 Mozs

 

VANCOUVER, BC - NovaGold Resources Inc. reported results of a feasibility study completed for its Donlin Creek project. The Donlin Creek project is owned equally by NovaGold and Barrick Gold U.S. Inc. and operated by Donlin Creek LLC, a jointly owned limited liability company. The property is under lease from two Native Alaskan Corporations, Calista Corporation (subsurface rights) and The Kuskokwim Corporation (surface rights). The Donlin Creek mine, once built, is expected to be one of only a handful of gold mines worldwide that is capable of producing over one million ounces of gold annually. All amounts are in US$ unless otherwise stated.

Highlights (100% Project Basis):  Proven and Probable Reserves estimated at 29.3 million ounces of contained gold,  21-year life of mine at 53,500 tonnes per day throughput,  First 5 full years of production,  Average of 1.6 million ounces of annual gold production,  Total cash costs of $394/oz of gold,  Average annual after-tax cash flow of $779 million at $900/oz gold,  Average annual gold production: 1.5 million ounces first 12 full years; 1.25 million ounces life of mine.

NovaGold commissioned AMEC Americas Limited ("AMEC") to provide an independent Qualified Person's Review and Technical Report ("Technical Report") for the Donlin Creek gold project located in Alaska, USA, based on information contained in a feasibility study prepared for Donlin Creek LLC. NovaGold expects the feasibility study to be accepted by the Donlin Creek LLC Board of Directors shortly.

Based on the feasibility study, the Donlin Creek mine has been designed as a year-round, open-pit operation with plant start-up anticipated for 2015. With the current 29.3 million ounce gold reserve base, the anticipated life of mine of 21 years with a mill throughput of 53,500 tonnes per day. During the first 5 full years production averages 1.6 million ounces with an average total cash cost of $394/oz. The lowest 25th percentile for current global industry total cash costs is approximately $400/oz. Gold production for the first 12 full years is expected to average nearly 1.5 million ounces annually at an average total cash cost of $444/oz. Life of mine production is estimated at an average of 1.25 million ounces of gold annually, for total recovered gold of 26.2 million ounces. These production levels would make Donlin Creek one of the world's largest gold producing mines.

The company’s address is PO Box 24, Suite 2300, 200 Granville Street, Vancouver, BC V6C 1S4, 604-669-6227, fax: 604-669-6272, email: [email protected].