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How would you describe the exploration potential of the property beyond the 39Moz of identi ed M&I resource and 6Moz of inferred?
The second updated feasibility study,  led almost  ve years ago, envisioned Donlin Gold to be one of the largest gold- producing mines in the world – likely entering production as the largest pure gold mine in existence and averaging approximately 1.5 million ounces of gold production in the  rst  ve years of operation and approximately 1.1 million ounces per year over its 27-year life.
Though there are already 39 million ounces of measured
and indicated resources – with an additional 6 million ounces in the inferred resource category – the production re ected in the feasibility study was to emanate from about 34 million ounces of proven and probable reserves, and assumed that no higher-grade ore, or, for that matter, any additional ore at all, would be found.
Basically, in NOVAGOLD’s view, either Donlin Gold’s mine life – already measured in decades – or its ultimate production pro le is likely to be greater than currently anticipated. Or both. We say this because, in addition to its already large mineral endowment, we believe that Donlin Gold has excellent exploration potential, with the opportunity to expand the current resource both along strike and at depth; plus, the current pit occupies a three-kilometer portion of an eight-kilometer mineralized belt. We’re excited about what further exploration could yield, and would not be remotely surprised if the next really big gold discovery is made at Donlin Gold. It could develop into a district-wide play on property that the existing partners already control.
What’s more, all the surface rights and exploration licenses are in place to mine for as long as there is potential. Donlin Gold has a mining lease with Calista Corporation – and a surface-use agreement with The Kuskokwim Corporation with co-terminus terms – granting Donlin Gold the rights to mine so long as the company believes there is valuable mineral potential on the property.
One of only six mines in the world slated to produce >1M ounces a year.
Donlin Gold’s projected annual production, 27-year life
1) Donlin Gold data as per the second updated feasibility study effective November 18, 2011, as amended January 20, 2012. Represents 100% of measured and indicated resources of which NOVAGOLD’s share represents 50%. Measured and indicated resources inclusive of proven and probable reserves. Projected annual gold production during full life of mine.
2) Peer group data as per latest company documents, public filings, and websites. Comparison group of 12 projects based on large (2Moz P&P cut off ), feasibility-level, North/South American gold-focused development projects.
North and South American gold-focused development projects projected average annual production
1.1Moz1 . 2 7M o z 2

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