NG - NOVAGOLD Reports First Quarter 2024 Financial Results | Benzinga
Committed to Advancing Donlin Gold to Full Feasibility Study
Extensive Engagement Reinforcing and Deepening Donlin Gold's Social License
Strong Treasury of $118 Million in Cash and Term Deposits in the First Quarter of 2024
VANCOUVER, British Columbia, April 03, 2024 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. ("NOVAGOLD" or "the Company" (NYSE American, TSX: NG) today released its 2024 first quarter financial results and an update on its Tier One1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Corporation ("Barrick").
Details of the financial results for the quarter ended February 29, 2024, are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on April 3, 2024, that is available on the Company's website at www.novagold.com, on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless otherwise stated.
In the first quarter of 2024, the following milestones were achieved:
- The ongoing activities at Donlin Gold included:
- Completion of the scope of work for resource modelling by a third-party consultant for an updated resource model;
- Advancement of metallurgical test work with a pilot plant in Ontario, Canada, to confirm proposed optimizations to the flowsheet;
- Continued planning for regional infrastructure support to narrow the scope of work and identify the best path forward;
- Incorporation of recent field data in geoscience hydrology to update the groundwater model and surface water model;
- In partnership with Calista Corporation ("Calista") and The Kuskokwim Corporation (TKC), Donlin Gold reached significant milestones in education, health and safety, cultural preservation, and environmental initiatives:
- Finalization of another Shared Values Statement in the Yukon-Kuskokwim (Y-K) region near the project, bringing the total count to 16;
- Holding the first informational meeting for the Subsistence Communications Advisory Committee in Anchorage;
- Expanding our efforts to identify specific project opportunities aimed at monitoring, evaluating, and enhancing the health of salmon populations in the Y-K region;
- Sponsorship of, and active participation in, key winter events: Donlin Gold's Pete Kaiser won the 2024 K300 sled dog race in January and Kristina Woolston competed in the Iron Dog in February, the world's longest and toughest snowmobile race that covers 2,500 miles of Alaskan backcountry;
- Support to various search and rescue teams, including the Chevak and Kipnuk Traditional Councils.
- As a federally permitted project on private Alaska Native Corporation land designated by law for mining, with key State permits secured, Donlin Gold's activities center on maintaining existing permits and advancing outstanding requirements, including:
- Ongoing work to advance the Alaska Dam Safety Certification preliminary design packages, which are expected to be submitted to the Alaska Department of Natural Resources (ADNR) later this year after review by the Independent Technical Review Board;
- Continuing to support Federal and State agencies to uphold the comprehensive Donlin Gold permits under appeal.
President's Message
Dedicated Efforts to Fund and Advance Donlin Gold's Project Development Work
During the first quarter of 2024, with the support from the owners and the Donlin Gold LLC Board, numerous important activities were conducted. These included, among others, completing the scope of work for resource modelling by a third-party consultant to update the resource model; advancing the metallurgical test work with a pilot plant in Ontario, Canada, to confirm proposed optimizations to the flowsheet, which are expected to conclude later in the year; continuing to plan the regional infrastructure support to streamline the scope of work and identify the optimal path forward; and integrating recent field data in geoscience hydrology to update the groundwater and surface water models, alongside continuous data collection to update source characteristics for closure planning. In addition, an extensive amount of outreach efforts took place in Alaska, in the Y-K region, and in Washington D.C. to support community engagement and permitting efforts that help reinforce our social license. The diligent and highly effective work by the Donlin Gold team, our partners and broader stakeholders are greatly appreciated.
NOVAGOLD remains committed to employing a concerted and inclusive approach to advancing the Donlin Gold project, consistent with our pledges to — and for the benefit of — all shareholders and stakeholders, and especially to fulfilling the strategy that has been pledged time and again by NOVAGOLD: namely, to commence a full bankable Feasibility Study to optimally position the project, setting up a potential positive construction decision when the time is right.
Nurturing Partnerships to Reinforce Donlin Gold's Social License — Engaging Local Communities, Governments, and Native Corporations
Our dedication to the Company's partnerships with Calista and TKC throughout Donlin Gold's project development and permitting processes has been strengthened by decades of steadfast and reliable engagement with the 62 stakeholder communities. The Donlin Gold project is located on private land that is designated by law for mining activities, under the Alaska Native Claims Settlement Act (ANCSA) of 1971. The Native Corporations have thus been instrumental in facilitating comprehensive local stakeholder outreach across the Y-K region, as well as government engagement efforts in the broader reaches of Alaska and Washington, D.C.
In the first quarter of 2024, Donlin Gold finalized another Shared Values Statement, bringing the total count to 16. This remarkable accomplishment underscores our commitment to continuous engagement with local communities, strengthening existing long-term relationships, and addressing specific community needs. Furthermore, in partnership with Calista and TKC, Donlin Gold held the first informational meeting for the Subsistence Communications Advisory Committee ("SCAC") in Anchorage this past quarter. All attendees, who hold varying perspectives on the Donlin Gold project, completed an application to join the SCAC. Central to the partnership between Donlin Gold, Calista and TKC, the SCAC was established to maintain a well-defined process for communications, dialogue, problem-solving, and seeking the views of the broader community regarding subsistence matters.
Persistent Support for Y-K Region's Environmental and Social Initiatives
NOVAGOLD prioritizes community and social responsibility, ensuring shared values are upheld at both the Donlin Gold project site and within the communities of the Y-K region. Through initiatives focused on education, community wellness, cultural preservation, and environmental stewardship, Donlin Gold supports fisheries studies, environmental activities, subsistence and cultural preservation initiatives, and various grants. In collaboration with Calista and TKC, a broad range of activities and projects were undertaken in the last quarter.
Since mid-2023, NOVAGOLD, Donlin Gold and its Alaska Native Corporation partners have closely monitored and assessed the conditions and management of salmon fisheries in the Kuskokwim and Yukon River watersheds. In the first quarter of 2024, efforts with local tribes were focused on identifying specific potential project opportunities to monitor, evaluate, and enhance the health of salmon populations. The projects to be supported will be finalized in early 2024, with plans for implementation beginning in the spring/summer of that year. All such initiatives will be pursued in collaboration and partnership with the people of the Y-K region.
Both NOVAGOLD and Donlin Gold are committed to advancing educational opportunities in Alaska and actively promote learning through collaborative efforts, including by sponsoring the Lower Kuskokwim School District's annual college and career fair. Donlin Gold also maintains its dedication to local community sports initiatives and youth groups, as exemplified by its support of events such as the Donlin Gold Basketball Tournament held at Bethel Regional High School in Bethel, Alaska. Donlin Gold also provided an annual contribution to the Rural Alaska Honors Institute, a program running through the University of Alaska Fairbanks which prepares Alaska Native high-school students for college life.
Donlin Gold proudly continues to fund and support The Kuskokwim 300, a premier mid-distance dog sled race covering a challenging 300-mile trail from Bethel to Aniak and back. Additionally, Donlin Gold sponsors Y-K mushers Isaac Underwood, Mike Williams Jr., and 2019 Iditarod champion and Donlin Gold employee Pete Kaiser, winner of his eighth title in the Kuskokwim 300 — who hails from Bethel and is the first Yupik musher ever and the fifth Alaska Native to win an Iditarod championship. Mr. Kaiser actively engages with youth in the community, focusing on suicide prevention in alignment with Donlin Gold's commitment to strengthening vital community well-being initiatives. Furthermore, last February, Donlin Gold was a sponsor of the Iron Dog, the world's longest and toughest snowmobile race that covers 2,500 miles of Alaskan backcountry, in which Kristina Woolston, Donlin Gold's External Affairs Manager, participated. Other cultural preservation initiatives include supporting the Native Village of Kalskag's annual Cauneq Camp as well as partnering with Carry the Cure to bring suicide prevention programs to Toksook Bay, Nightmute, Tununak, and Kasigluk.
Donlin Gold extended support to several search and rescue teams in the region, including the Chevak and Kipnuk Traditional Councils and Bethel Search and Rescue. Financial assistance was also provided to Camp Fire Alaska, an organization dedicated to offering summer camps and programs to rural communities across Alaska with various activities, including music, sports, science, field trips, and ample outdoor recreation opportunities. In February 2024, Donlin Gold continued its sponsorship of local radio stations in Alaska, which play a crucial role in delivering weather updates and safety messages to rural communities where internet connectivity is limited. Furthermore, Donlin Gold pursued its support of and active involvement in the Alaska Safe Riders initiative, which focuses on promoting safety for snowmachines, all-terrain vehicles, and recreational off-road vehicles.
Meaningful collaboration was also fostered with the Native Village of Napaimute, with Donlin Gold extending financial assistance to bolster cultural wellness programs and to maintain the Kuskokwim River Ice Road – a critical winter infrastructure that provides for the safe transport of residents to sport and cultural events, as well as a crucial conduit of economic activity for the Kuskokwim River communities.
Maintaining Permits in Good Standing
Despite multiple challenges, all appeals against Donlin Gold permits have been unsuccessful to date. We recognize the importance of preparedness and organization in these matters. Permitting in the United States and Alaska constitutes a significant and rigorous endeavor, where success relies on years of dedicated efforts to ensure a diligent, thorough, transparent, and inclusive process engaging all stakeholders, including those from the Y-K ...