Owners NovaGold Resources Inc. (50%), Teck Resources Ltd. (50%)
 

To maximize the value of Galore Creek to NOVAGOLD's shareholders, the Company announced its intention to sell part or all of its interest in the Galore Creek partnership and channel the proceeds toward development of Donlin Gold.

 

The decision to sell the Company's interest in Galore Creek was based on the recognition that most NOVAGOLD shareholders are interested in gold, and specifically Donlin Gold — one of the world's premier projects. Besides, a company of the size of NOVAGOLD could be challenged to finance two large projects without causing substantial initial dilution of shareholder value. Therefore, the sale of a portion or all of NOVAGOLD's interest in Galore Creek would add funding for the development of the Company's flagship Donlin Gold project and remove substantial future additional capital demands that could have been placed on the Company's treasury — a win-win outcome for the shareholders of NOVAGOLD.

 

Galore Creek is jointly and equally owned by NOVAGOLD and Teck Resources, one of the largest diversified mining companies in the world. Galore Creek, when put in production as envisioned in the Pre-Feasibility Study results released on July 27, 2011, is expected to be the largest copper mine in Canada, one of the best mining jurisdictions in the world.

 

The Pre-Feasibility Study¹  (PFS or PFS Plan) confirms the technical and economic viability of the Project and shows a significant increase in scale and redesign of the Project from previous configurations. The PFS Plan provides for a mining and operating facility with a nominal 95,000 tonne-per-day capacity. Proven and probable mineral reserves total 528 million tonnes grading 0.6% copper, 0.32 grams per tonne gold and 6.02 grams per tonne silver. The Project is forecast to produce 6.2 billion pounds of copper, 4.0 million ounces of gold and 65.8 million ounces of silver over an approximate 18-year mine life with cash costs averaging $0.80 per pound of copper at Base Price Case assumptions and $0.42 per pound of copper at Recent Price Case assumptions.¹

Head Office

PO Box 24

Suite 2300 - 200 Granville Street

Vancouver, British Columbia

Canada V6C 1S4

Phone: 604-669-6227

Fax: 604-669-6272

Toll free: 1-866-669-6227

Email: info@novagold.net