Galore Creek Project Update Minerals North Conference April 2006

Transcription

1 NovaGold Resources Inc. Galore Creek Project Update Minerals North Conference April 2006 Drilling the Southwest Zone NovaGold Resources Inc.

2 Galore Creek: Premier Cu-Au-Ag Porphyry in North America Demonstrated MI&I Resource: 12 Billion Pounds Copper 13.7 Million ounces Gold 156 Million ounces Silver Average resource grades well above most operating copper- gold projects worldwide High grade core to enhance payback Clean, marketable concentrate and simple metallurgy Globally competitive cash and total costs Strong community and regulatory relationships Supportive Government in B.C. and Canada Tremendous exploration upside Targets: Feasibility (2006)\Construction (2007)\Production 2010.

3 Galore Creek Location Juneau Dease Lake Galore Creek 300 Kilometers 75 kilometers from Eskay Creek Wrangell Stewart Eskay Creek 150 Kilometers northwest of Stewart NovaGold Resources Inc. NovaGold Resources Inc.

4 Galore Creek Historical Work 1950s: Initial mineral exploration 1960s: Exploration, Scud-Stikine road built, 80 person camp, 3 airstrips, underground and 82,000 m drilling 1970s: Feasibility study (Copper) 1980s: Gold exploration: 27,000 m drilling 1990s: Project goes dormant with little field work 2003: NovaGold concludes Agreement with Stikine Copper to acquire 100% interest in Galore Copper at $0.70 NovaGold Resources Inc. NovaGold Resources Inc.

5 2003 EXPLORATION PROGRAM Camp at North Portal Airstrip Population 24 Two diamond drill rigs 7 holes drilled for 2,950 meters testing for high grade zones

6 2004 EXPLORATION PROGRAM Old Stikine Copper camp occupied Population 80 Four Diamond drills and one Geotech rig 66 holes +26,000 26,000 meters exploration drilling Four helicopters including a Bell 205

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10 2005 EXPLORATION PROGRAM New modular kitchen/dining, offices, washrooms, first aid facilities, flown in and erected. Other support facilities Water Treatment and Sewer Treatment plants Expanded camp to accommodate 195 Average Camp Population: 177 Seven helicopters including a Sikorsky S-61 Eight diamond drills and two geotech rigs 63,000 meters drilled

11 Galore Creek Project Overview Photo Galore Creek Exploration Camp West Fork Zone Middle Creek Junction Zone Central Deposit Southwest Deposit 1 kilometer

12 West Fork Zone New High Grade Discovery 32.6 Meters Massive Magnetite, Bornite and Chalcopyrite having an average grade of 14.82% Cu, 2 g/t Au and 86.6 g/t Ag Photo of 55m Magnetite Bornite Anhydrite Chalcopyrite

13 Grace 8km N Galore Creek Property Target map Galore Creek Property Pioneer Option North Rim Eagle Plains Option 8km Junction NovaGold Staked West Rim Middle Creek Main Deposit Resource Areas 13.7 million ounces Au 156 million ounces Ag 12 billion pounds Cu Butte SW Zone Gap Bountiful Copper Canyon Know n Deposits Ov erlook West Fork Saddle/South 110 Target Areas 1 kilometre

14 Galore Creek: Design Overview 5 Open pit mines with overall 2:1 strip ratio 65,000 tpd,, 20-year mine life, deposits open to further expansion High quality concentrate product (30% copper grade) Low cost hydroelectric power available Initial 6 year expected production: 300,000 oz gold, 2.25 M oz silver, 370 M lbs copper annually Over $200 million in annual after-tax cash flow at $400/oz Gold and $1/lb Copper Total cash costs (co-product): $140/oz for gold and $0.57/lb copper Total cash costs (with by-product credits): -$300/oz for gold or $0.36/lb copper* 2006 Budget US$35 million to complete Feasibility study, permitting, continued exploration drilling 21

15 Project Infrastructure 125 km of new road construction 4 km tunnel to access Galore valley Concentrate pipeline, fuel pipeline and 138 kv power line to be installed along road right of way Concentrate dewatering, storage & load out facility planned near Highway 37 Existing concentrate loading facility at the Port at Stewart will be used

16 Galore Creek Access Corridor Galore Project Bob Quinn Eskay Creek

17 Galore Creek, British Columbia Mine and Facility Plan 20

18 The Tahltan First Nation Both the deposit and access are recognized in the BC cabinet-approved Land Resource Management Plan (LRMP) and development is permitted within guidelines. The Galore Creek project and proposed road corridor lie solely within the Traditional Territories claimed by the Tahltan First Nation. There are no disputed claims and no other First Nations with a claim over this area. The Tahltan have a long history of mining: Obsidian, Gold, Coal, Cassiar,, Golden Bear and Eskay Creek. The Tahltan support responsible resources development in their territory and have established mining related businesses (catering, road construction, etc )

19 The Tahltan First Nation Three elected representative bodies: The Tahltan Central Council The Tahltan Band The Iskut Band The Tahltan have agreed that the Central Council has the mandate to negotiate with regard to resource development issues in their Traditional Territory. Approximately 5,000 persons of Tahltan ancestry are recognized and roughly 1500 live in the their Traditional Territory.

20 NovaGold s s Partnership with the Tahltan First Nation Frequent meetings with leadership to maintain communication & dialogue Tahltan coordinator based in Dease Lake Support for training and businesses Creation of Rescan-Tahltan JV to conduct baseline environmental studies Over 50% of site workforce is Tahltan Community meetings & Special Assembly Negotiated Participation Agreement which was signed on February 10, 2006

21 Rescan Tahltan Environmental Consultants (RTEC) +100 Tahltan Worked at Galore in 2005

22 Community Support Tahltan Support Strong support from communities - Open Houses in held annually in Stewart, Terrace, Smithers, Wrangell and Prince George Alaska and US Federal Regulators Involvement from beginning Provincial and Federal Elected representatives have visited the site along with other elected officials NGOs have had very positive response on selection of Northern Route as well as with NovaGold s Tahltan and Community efforts Significant local business interest in project Continued employment opportunities in mining with Eskay Creek and Huckleberry closing by 2010

23 Galore Creek Project Building Relationships Strong support from BC Government BC Government has demonstrated its sincere desire to support the mining industry through policy, taxation reform, and being an advocate of mining through the permitting process. NovaGold Resources Inc.

24 Environmental Assessment (EA) Process Joint working groups allow regulators and the Tahltan to be involved in design of the project and the interpretation of data before the EA is submitted for review and approval. NovaGold has organized seven working groups ( (fish, water, wildlife, ARD, socio-economic etc ) involving over 25 regulators which are now active. The Tahltan Central Council has appointed representatives to be involved in each of these groups. Each group reviews baseline program scope, considers results of field programs and test work, and reviews design options for facilities. This collaborative approach should reduce the chance of unexpected delays and surprises during the EA review.

25 Designing the Galore Creek Mine to Minimize Environmental Impacts Working closely with the Tahltan First Nation to incorporate local knowledge and perspectives Choice of Northern Access to avoid Stikine river system and potential impacts on fish & wildlife habitat Extensive study of water quality, climate and management strategies. Careful design of tailings location and dam to allow submersion of PAG rock. External review process. Use of pipeline to reduce road traffic through remote areas and CO 2 emissions. Design of road and river and stream crossings to avoid disruption of fish habitat Extensive habitat mapping to identify and avoid sensitive ecosystems along roadway.

26 BC and CEAA Process Baseline Work Project Description Approved Terms of Reference review and approval Submit EA & permits EA Review Certificate Issued Permits Issued B C C A

27 Targeted Construction Schedule Road Tunnel Site Prep Plant Pre-strip Powerline Commissioning Operations

28 NovaGold Resources Inc. Galore Creek: BC s s Next World Class Copper-Gold-Silver Mine Drilling the Southwest Zone NovaGold Resources Inc.