Special General Meeting Presentation


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Rick Van Nieuwenhuyse (President & CEO) presented at the NovaGold SGM re: NovaCopper spin-out. Over 99% of the votes cast were in favour of the spin-out.

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Special General Meeting Presentation

  1. 1. Rick Van NieuwenhuysePresident & CEOMarch 28, 2012 2
  2. 2. Forward Looking StatementThis presentation includes certain Forward-Looking Statements and Forward-Looking Information (collectively, “forward-looking statements”)within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements,other than statements of historical fact, included herein including, without limitation, statements relating to the spin-out of NovaCopper,program objectives and future plans for the project, are forward-looking statements. Forward-looking statements are frequently, but notalways, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible” and similarexpressions, or statements that events, conditions or results “will”, “may”, “could”, or “should” occur or be achieved. These forward-lookingstatements are set forth principally under the slides pertaining to the spin out of NovaCopper and the Ambler preliminary economicassessment, 2012 program objectives and plans going forward, and elsewhere in this presentation, and may include statements regardingperceived merit of properties; exploration results and budgets; mineral reserves and resource estimates; work programs; capitalexpenditures; timelines; strategic plans; completion of transactions; market price of precious base metals; or other statements that are notstatements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements willprove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factorsthat could cause actual results to differ materially from NovaGold’s and NovaCopper’s expectations include the uncertainties involving theneed for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertaintiesinvolved in the interpretation of drilling results and geological tests and the estimation of resources; the need for cooperation of governmentagencies and native groups in the development and operation of properties; the need to obtain permits and governmental approvals; risks ofmining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements,unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases; fluctuations in metal prices andcurrency exchange rates; and other risk and uncertainties disclosed in NovaGold’s Annual Information Form for the year ended November 30,2011, filed with the Canadian securities regulatory authorities, NovaGold’s annual report on Form 40-F filed with the United States Securitiesand Exchange Commission and in other NovaGold reports and documents filed with applicable securities regulatory authorities from time totime. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. NovaGold andNovaCopper assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should theychange, except as required by law. 3
  3. 3. Ambler Mining DistrictLocation Map – Northwest Arctic Borough 4
  4. 4. Ambler Land Position NovaCopper’s Ambler Claim Group 5
  5. 5. 6
  6. 6. Arctic Deposit:Preliminary Economic Assessment Results1• Filed on May 10, 2011, Arctic PEA calls for 4,000 tpd underground operation• LOM production: 1.7B lb Cu, 2B lb Zn, 291M lb PB, 266,000 Oz Au, 22M Oz Ag• Annual Production of 67 M lb Cu and 80 M lb Zn + Precious Metal credits• 25-year mine life at long-term metal prices2• Modest capital costs: US$262 million startup, US$134 million sustaining• Low operating costs: US$99.32/tonne milled, cash cost US$0.89/lb copper (net of by-products)• Base case using long-term metal prices at an 8% discount2: – Pre-tax NPV of $718M with IRR of 30% – Post-tax NPV of $505M with IRR of 25%• Current metal prices at timing of PEA3: – Post-tax NPV of approximately $1.6B with IRR of 50% – The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic conditions applied to them that would enable them to be categorized as mineral resources. There is no certainty that the PEA will ever be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.Arctic is one VMS Deposit in a “String of Pearls” that is 100 km long 1) NovaGold Resources Inc. NI 43-101 Preliminary Economic Assessment Ambler Project May 9, 2011 Qualified Person(s) Russ White, P.Geo., SRK Consulting & Neal Rigby, C.Eng., MIMMM, Ph.D., SRK Consulting 2) Cu = $2.50/lb, Zn = $1.05/lb, Pb = $1.00/lb, Au = $1,100/oz and Ag = $20/oz 3) Cu = $4.31/lb, Zn= $1.20/lb, Pb = $1.20/lb, Au = $1,425/oz and Ag = $36/oz – May 9, 2011 7
  7. 7. Ambler Mining DistrictString of Pearls & Bornite Deposit 8
  8. 8. Bornite: Project History • 1940’s: Rhiney Berg prospecting for Uranium • 1957: Rhiney Berg options copper find to Kennecott Copper; 7 DHs • 1962: No. 1 orebody discovered: DH RC-34: 20m @ 24% Cu • 1964: 1,075’ shaft sunk to high grade • 1965: Bornite shaft floods and the focus turns to Arctic VMS discovery • 1986: Bornite conveyed to NANA • 2011: NANA-NovaCopper deal completed combining land packages to cooperatively develop the UKMP 9
  9. 9. Bornite Deposit2011 Verification Drilling RC11-183: 26.3m at 6.73% Cu RC11-181: 122m at 2.27 % Cu RC11-184: 31.9m at 5.41% Cu RC11-182: 93.2m at 2.14 % Cu Holes in DecDec2011 PR Holes in 14, 8 Press Rel Holes in Nov 10, 2011 PR South Reef Target RC11-186: 153.1m at 1.39 % Cu RC11-185: 121.3m at 1.39 % Cu 10
  10. 10. Bornite DepositNew Discovery of South Reef Zone RC11-194: 111m at 2.64% Cu Including 11.8 m at 7.5% Cu Holes inin Dec 8 Press PR Holes Dec 14, 2011 Rel Holes in Nov 10, 2011 PRRel Holes in Nov 10 Press South Reef RC11-187: 178m at 4.01% Cu Including 34.7 m at 12.0% Cu 11
  11. 11. Bornite DepositCross Section A-A’ (RC11-187) Historic Deposit South Reef RC11-185: 81.5m @ 1.64% Cu and 39.8m @ 0.89% Cu RC11-187: 178 m @4.01% Cu Including 35m @ 12.0% Cu 12
  12. 12. Ambler Mining DistrictString of Pearls & Bornite Deposit 13
  13. 13. NovaCopper Plans for 2012Next Steps Record date for voting – February 24, 2012 Shareholders meeting – March 28, 2012• Spinout NovaCopper on 6:1 ratio with US$40M in cash• Expect NovaCopper to be listed on TSX and NYSE-AMEX and trading by end of H1-2012• Bornite deposit 43-101 Resource estimate expected Q2-2012• 2012 planned drilling campaign (15,000 to 20,000 m) with four drills• Advance engineering and environmental baseline studies• Work cooperatively with the State, Villages, NANA and the Region on the Ambler Road to Resources Project 14
  14. 14. Taikuu! Please visit www.novacopper.com or www.nana.com for more informationA NANA-NovaCopper Partnership to Developthe Ambler Mining district
  15. 15. APPENDIX 16
  16. 16. NovaGold Share CapitalizationIssued and Options Warrants Fully diluted1outstanding1 outstanding278.0M 12.9M 37.9M 328.9M Major Shareholders2 The Electrum Group LLC Paulson & Co., Inc. Tradewinds Global Investors Aletheia Research and Management Baupost Group 1) Post February 2012 Equity Offering. Fully diluted share count excludes convertible notes 2) Percentage holdings from ThompsonOne, last updated 2/29/12 17
  17. 17. Resource Estimate for Arctic Deposit Tonna Classification Grade Contained Metal ge Cu Zn Pb Ag Au Cu Zn Pb Ag Au (kt) (%) (%) (%) (gpt) (gpt) (Mlb) (Mlb) (Mlb) (koz) (koz) Indicated Mineral 16,845 4.14% 6.02% 0.94% 59.62 0.83 1,538 2,237 350 32,289 447 ResourceInferred Mineral 12,087 3.53% 4.94% 0.79% 48.04 0.67 940 1,317 212 18,667 260 ResourceNotes:1 - Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of theMineral Resources will be converted into Mineral Reserves.2 - Resources stated as contained within a potentially economically minable underground shapes above a US$75.00/t NSR cut-off3 - NSR calculation is based on assumed metal prices of US$2.50/lb for copper, US$1,000/oz for gold, US$16.00/oz for silver, US$1.00/lb forzinc and US$1.00/lb. for lead. A mining cost of US$45.00/t and combined processing and G&A costs of US$31.00 were assumed to form thebasis for the resource NSR cut-off determination. Note these metal prices and operating costs may differ from those used for the cash flowmodel.4 - NovaGold Resources Inc. NI 43-101 Preliminary Economic Assessment Ambler Project May 9, 2011 Qualified Person(s) Russ White,P.Geo., SRK Consulting & Neal Rigby, C.Eng., MIMMM, Ph.D., SRK Consulting 18
  18. 18. Technical Reports & Qualified Persons Project Qualified Person(s) Most Recent Disclosure & Filing Date Ambler Russ White, P.Geo., SRK Consulting NI 43-101 Preliminary Economic Assessment, Neal Rigby, C.Eng., MIMMM, Ph.D., SRK Consulting Ambler Project – May 9, 2011 Kevin Francis, R.M. SME., Vice President Resources of NovaGold and a qualified person as defined by NI 43-101, has reviewed and accepts responsibility for the technical information contained within this presentation.30 19