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The non-core assets (Nome Gold, Rock Creek, and Big Hurrah) have been removed from the NovaGold Metal Value Report based on the company's plans to sell these properties. The Ambler property continues to be included while NovaGold evaluates options to bring value from this deposit. [Source: First Quarter 2011 Financial Results, April 14, 2011]
The NovaGold Resources Inc. website is at www.novagold.com.
Information Links: Yahoo News and Quotes | Yahoo Message Board | StockCharts
This report is based on NI 43-101 resource and reserve disclosures and fully diluted share counts available on 2011-05-27.
The GoldMinerPulse metrics, presented below in table format, are based on all projects and all in situ metals and are updated daily with closing market prices.
| General Metric | Value on 2012-02-03 |
|---|---|
| In Situ Metal Value per Share (MVpSh) | US$321.02 |
| Average Ore Value per Tonne | US$95.71 |
| Metal Value Leverage (MVL) | 35.04 |
| Market Capitalization as a Percentage of Metal Value | 2.9% |
| Recent Closing Stock Price | C$9.1 [note 1] |
| Fully Diluted Share Count | 287.40 M [note 2] |
| Percentage In Situ Proven + Probable Reserve | 0% |
| Percentage In Situ Measured + Indicated Resource | 74% |
| Percentage In Situ Inferred Resource | 26% |
| Metric | Value on 2012-02-03 |
|---|---|
| Gold Reserves + Resources | 29.53 M oz |
| Average Gold Ore Grade | 1.0 g/t |
| Market Capitalization per oz of Gold In Situ | US$89.16 ( C$88.56 ) |
| Gold Equivalent Ounces Estimate | 53.46 M oz |
| Market Capitalization per oz of Gold Equivalent | US$49.26 ( C$48.93 ) |
Note 1: Conversion rate used: 1 Cnd$ = 1.00682 US$
Note 2: Fully diluted share count taken from NovaGold Resources, Share Capitalization web page viewed May 2011.
All metal counts in this section are based on the combined Proven + Probable reserves plus the Measured + Indicated and Inferred resources.
| Metric / Metal | Gold | Silver | Copper | Lead | Zinc | ||
|---|---|---|---|---|---|---|---|
| Total Counts (reserves + resources) | 29.53 M oz | 148.96 M oz | 3.77 M t | 253.83 K t | 1.61 M t | ||
| Metal Prices in US$ (from 2012-02-03) | $1,725.90 / oz | $33.63 / oz | $3.89 / lb | $1.00640 / lb | $0.96490 / lb | ||
| Metal Value per Share (MVpSh) Shown in US$. Based on fully diluted share count | $177.35 | $17.43 | $112.35 | $1.96 | $11.93 | ||
| Percentage of Total Metal Value | 55.25% | 5.43% | 35.00% | 0.61% | 3.71% | ||
| Metal Value Percentage Proven + Probable | 0% | 0% | 0% | 0% | 0% | ||
| Metal Value Percentage Measured + Indicated | 81% | 67% | 65% | 62% | 63% | ||
| Metal Value Percentage Inferred | 19% | 33% | 35% | 38% | 37% | ||
The above metal value totals derive from the following projects.
| Project | Location | Metal Value per share (% total) | Average Ore Value US$/t | Gold | Silver | Copper | Lead | Zinc | PP% | MI% | I% |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Donlin Creek | Alaska, USA | $135.04 ( 42.1% ) | US$122.52 | 22.49 M oz | 0 | 87% | 13% | ||||
| Galore Creek | British Columbia, Canada | $117.47 ( 36.6% ) | US$58.15 | 5.45 M oz | 91.80 M oz | 2.48 M t | 0 | 72% | 28% | ||
| Ambler | Alaska, USA | $57.65 ( 18.0% ) | US$572.70 | 709.88 K oz | 50.96 M oz | 1.12 M t | 253.83 K t | 1.61 M t | 0 | 62% | 38% |
| Copper Canyon | British Columbia, Canada | $10.85 ( 3.4% ) | US$82.93 | 882.24 K oz | 6.20 M oz | 161.64 K t | 0 | 0 | 100% |
PP%: percentage of metal value from Proven + Probable reserves
MI%: percentage of metal value from Measured + Indicated resources
I%: percentage of metal value from Inferred resources
Note: percentages may no add to 100% due to rounding errors
Latest NI43-101 Report: NovaGold Resources Inc.
NI 43-101 Preliminary Economic Assessment
Ambler Project
Kobuk, AK
2011-05-09 (209 pages).
Updates: Proven and Probable Mineral Reserves, Measured, Indicated and Inferred Mineral Resources for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at December 5, 2011 webpage (viewed January, 2012).
Project Location: Alaska, USA. View the Ambler project on a Google Map.
Average Ore Value (all estimate types): US$572.70
Indicated
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $2.70 | 449.51 K oz | 0.830 g/t | 16.85 M t |
| Silver | $3.78 | 32.29 M oz | 59.620 g/t | 16.85 M t |
| Copper | $20.81 | 697.38 K t | 41,400.000 g/t | 16.85 M t |
| Lead | $1.22 | 158.34 K t | 9,400.000 g/t | 16.85 M t |
| Zinc | $7.51 | 1.01 M t | 60,200.000 g/t | 16.85 M t |
Estimate notes:
Resources stated as contained within a potentially economically minable underground shapes above a US$75.00/t NSR cut-off
Inferred
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $1.56 | 260.37 K oz | 0.670 g/t | 12.09 M t |
| Silver | $2.18 | 18.67 M oz | 48.040 g/t | 12.09 M t |
| Copper | $12.73 | 426.67 K t | 35,300.000 g/t | 12.09 M t |
| Lead | $0.74 | 95.49 K t | 7,900.000 g/t | 12.09 M t |
| Zinc | $4.42 | 597.10 K t | 49,400.000 g/t | 12.09 M t |
Estimate notes: See notes for Indicated.
Updates: Proven and Probable Mineral Reserves, Measured, Indicated and Inferred Mineral Resources for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at December 5, 2011 webpage (viewed January, 2012).
Project Location: British Columbia, Canada.
Average Ore Value (all estimate types): US$82.93
Inferred
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $5.30 | 882.24 K oz | 0.730 g/t | 53.70 M t |
| Silver | $0.73 | 6.20 M oz | 5.130 g/t | 53.70 M t |
| Copper | $4.82 | 161.64 K t | 4,300.000 g/t | 53.70 M t |
A GoldMinerPulse visitor noted the following difference between Barrick Gold's report and that of Novagold. These differences are noted, however, resolution as to which numbers are correct is a Novagold / Barrick issue. My thanks to Guy for taking the time to document the following points:
Novagold reports for Donlin Creek an impressive 19.6 million ounces on behalf of their 50% ownership. When checking the 2009 annual report of Barrick (table at page 159), we do find a similar resource estimate 21 million ounces on behalf of their 50% ownership. The 8.6% difference could be due to Barrick having used an updated resource estimate.
However Novagold claims their share in Donlin Creek to pertain for 75% in proven & probable reserves, 15% in measured and indicated resources and 10% in inferred resources. Barrick on the contrary refers to Donlin Creek as resources only: Measured 300 K Oz, indicated 18,149 K Oz and inferred 2,625 K Oz.
Exploration work at Donlin Creek seems far from finished. Barrick is now revising the feasibility study to include the possible use of natural gas (abundantly available elsewhere in Alaska) as the main energy source for operating the future mine. Are we yet at the ‘reserve’ status for the Donlin Creek natural resources? Is Novagold overstating the quality, hence the value of their main asset or is Barrick purposely underestimating the quality of that same asset?
[Source: Private e-mail]
Latest NI43-101 Report: Donlin Gold Project Alaska, USA NI 43-101 Technical Report on Second Updated Feasibility Study
2011-12 (364 pages).
Updates: Proven and Probable Mineral Reserves, Measured, Indicated and Inferred Mineral Resources for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at December 5, 2011 webpage (viewed January, 2012).
Project Location: Alaska, USA. View project the Donlin Creek gold project on a Google Map.
Average Ore Value (all estimate types): US$122.52
Measured + Indicated
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $117.06 | 19.49 M oz | 2.240 g/t | 541.34 M t |
Estimate notes: Inclusive of reserves.
Resource quantities adjusted for ownership percentage of 50.0%.
Inferred
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $17.98 | 2.99 M oz | 2.020 g/t | 92.22 M t |
Proven + Probable
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|
Latest NI43-101 Report: Galore Creek Property NI 43-101 Technical Report British Columbia – Canada
2008-01-25 (440 pages).
Updates: Proven and Probable Mineral Reserves, Measured, Indicated and Inferred Mineral Resources for Gold (Au), Silver (Ag), Copper (Cu), Zinc (Zn) and Lead (Pb) As at December 5, 2011 webpage (viewed January, 2012).
Project Location: British Columbia, Canada. View the Galore Creek property on a Google Map.
Average Ore Value (all estimate types): US$58.15
Measured + Indicated
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $24.38 | 4.06 M oz | 0.310 g/t | 814.70 M t |
| Silver | $7.98 | 68.23 M oz | 5.210 g/t | 814.70 M t |
| Copper | $52.27 | 1.75 M t | 4,300.000 g/t | 814.70 M t |
Estimate notes:
Resource quantities adjusted for ownership percentage of 50.0%.
0.21 %CuEQ cutoff
Inferred
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|---|---|---|---|
| Gold | $8.36 | 1.39 M oz | 0.250 g/t | 346.60 M t |
| Silver | $2.76 | 23.57 M oz | 4.230 g/t | 346.60 M t |
| Copper | $21.72 | 727.86 K t | 4,200.000 g/t | 346.60 M t |
Proven + Probable
| Metal | MVpSh | Contained Metal Quantity | Ore Grade | Ore Quantity |
|---|
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