Barrick and NOVAGOLD to Advance Ongoing Donlin Gold Project Optimization With Approved $8-Million Drill Program

VANCOUVER, British Columbia, June 22, 2017 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. (NYSE:NG) (TSX:NG) (“NOVAGOLD”) and its partner Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (“Barrick”) are pleased to announce that Donlin Gold LLC, the co-owned operating company which is advancing the Donlin Gold project in Alaska, has approved a drill program designed to further optimize the project.

After completing extensive analysis of the project’s parameters, Barrick and NOVAGOLD concluded that the potential exists to enhance the project economics through a more cost-effective project execution plan that could substantially reduce upfront capital. To this end and to support this effort, the partners have approved an $8-million budget (100% basis) for a drill program designed to collect geologic and geotechnical data this year.

The work of technical experts from Barrick and NOVAGOLD has been focused on ways to capitalize on the flexibility inherent in Donlin Gold’s unique characteristics of large size, superior grade and exceptional exploration upside. The approved program has been developed as a direct consequence of very encouraging results that were achieved from a series of wide-ranging optimization evaluations of the ore body resulting in an operationally sound and potentially financially attractive development approach. Meanwhile, the Donlin Gold team remains focused on completing the on-going permitting activities, which are advancing as planned. 

“We are encouraged by the prospects to further optimize the Donlin Gold project, which has the potential to be the largest pure gold mine in the world –in one of the safest jurisdictions of the world. Donlin Gold is a unique asset, which provides Barrick stakeholders with significant optionality,” said Kelvin Dushnisky, President of Barrick. “This jointly-developed program is a reflection of our partnership approach as we work to advance Donlin Gold with financial discipline and with a strong focus on environmental and social responsibility.”

Greg Lang, NOVAGOLD’s President and Chief Executive Officer, added the following: “Donlin Gold’s size, grade, production profile, exploration potential, mine life, community support and jurisdictional safety render it a unique asset in the gold industry. Both partners envision Donlin Gold to be a pacesetter in the mining sector and are completely aligned in their objectives to optimize the project. As permitting activities approach their conclusion, we believe that the approved field work will reaffirm Donlin Gold’s status as the asset best positioned to capitalize on the resumption of the long-term bull market in gold.”