Form 51-102F3
MATERIAL CHANGE REPORT
Item 1. | Name and Address of Reporting Issuer |
NovaGold Resources Inc. (“NovaGold” or the “Company”) | |
2300-200 Granville Street | |
Vancouver, British Columbia | |
V6C 1S4 | |
Item 2. | Date of Material Change |
April 28, 2009 | |
Item 3. | News Release |
A press release announcing the material changes referred to in this report was disseminated by Marketwire on April 28, 2009 and filed on SEDAR. | |
Item 4. | Summary of Material Changes |
On April 28, 2009, NovaGold announced the results of a feasibility study completed for its Donlin Creek project – equally owned by NovaGold and Barrick Gold U.S. Inc. and operated by Donlin Creek LLC, a jointly owned limited liability company. | |
Item 5. | Full Description of Material Change |
On April 28, 2009, NovaGold announced the results of a feasibility study completed for its Donlin Creek project – equally owned by NovaGold and Barrick Gold U.S. Inc. and operated by Donlin Creek LLC, a jointly owned limited liability company. | |
Based on the feasibility study, the Donlin Creek mine has been designed as a year-round, open-pit operation with plant start-up anticipated for 2015. With the current 29.3 million ounce gold reserve base, the anticipated life of mine of 21 years with a mill throughput of 53,500 tonnes per day. During the first 5 full years production averages 1.6 million ounces with an average total cash cost of US$394/oz. The lowest 25th percentile for current global industry total cash costs is approximately US$400/oz. Gold production for the first 12 full years is expected to average nearly 1.5 million ounces annually at an average total cash cost of US$444/oz. Life of mine production is estimated at an average of 1.25 million ounces of gold annually, for total recovered gold of 26.2 million ounces. | |
Mineral Reserves and Mineral Resources have been estimated using a long-term gold price assumption of US $725/oz and US $850/oz, respectively. The combined Proven and Probable Mineral Reserve plus Measured and Indicated Mineral Resource at Donlin Creek of 35.28 million ounces shows a 3.6 million ounce increase over the previously disclosed Measured and Indicated Resource of 31.67 million ounces announced on June 10, 2008. | |
Item 6. | Reliance on subsection 7.1(2) and (3) of National Instrument 51-102 |
Not applicable |
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Item 7. | Omitted Information |
Not applicable | |
Item 8. | Executive Officer |
Elaine Sanders | |
Vice President, Finance & Corporate Secretary | |
Telephone: (604) 669-6227 | |
Fax: (604) 669-6272 | |
Item 9. | Date of Report |
April 29, 2009 |