Novagold unveils Alaska gold mine priorities in Q2 report
Novagold Resources Inc. [NG-TSX, NYSE American] and partner Paulson Advisors LLC are looking ahead to the next phase of development at the Donlin Gold project in Alaska.
“Our near-term priorities include commencing the feasibility study update, executing the 2025 drill program now focused on converting and expanding reserves and resources, and pursuing further exploration at depth,” said Novagold President and CEO Greg Lang. His comments appear in the company’s second quarter report
Donlin Gold, now held 60% by Novagold and 40% by funds managed by Paulson Advisers LLC, hosts one of the world’s largest and highest grade undeveloped open pit gold endowments.
It hosts a measured and indicated resource of 541 million tonnes of grade of 2.24 g/t gold, containing 39 million ounces of the yellow metal. Those estimates are based on an updated feasibility study dated, November, 2011 that was amended in January 20, 2012. They include proven reserves of 8.0 million tonnes, grading 2.52 g/t.
The planned pits in which the existing resources are situated occupy only three kilometres of an eight- kilometre mineralized belt, which itself is located on less than 5% of Donlin Gold’s land position.
Novagwold said the Donlin joint venture has launched efforts to prepare for the updated feasibility study. It said a dedicated project team will be assembled at Donlin Gold to advance this work. The contracts for this work are expected to be awarded by year-end.
Having commenced drilling in February with a total of approximately 8,401 metres, Donlin Gold plans to complete15,000 metres in a program that is now focused on resource conversion and expansion.
Meanwhile, Donlin officials have met with Alaska Congressional delegation and industry officials in Washinton, D.C. to introduce Donlin Gold’s new General Manager, Todd Dahlman, and reinforce the project’s importance to Alaska and the Yukon-Kuskokwim region.
“Our new partnership with Paulson will allow us to now advance one of the world’s known gold development projects – one that has its key permits in hand and is located in Alaska, a stable Tier One, mining-friendly jurisdiction,” said Lang.
Donlin Creek is expected to be an open pit operation that will rank among the world’s lowest cost gold producers with annual production of one million ounces over a projected mine life of 27 years. “No gold mine ever began production with 39 million ounces in measured and indicated resources, inclusive of proven and probable mineral reserves,” Novagold said.
Novagold recently raised US$195.2 million from an upsized public offering of 55.03 million common shares. The announcement comes after Novagold said it has received the full exercise and closing of the underwriters’ option to purchase an additional 7.18 million common shares at the public offering price of US$3.75 per shares. The company also completed a concurrent private placement of $64.4 million or approximately 17.2 million shares that closed on May 9, 2025.
Novagold shares eased 1.7% or $0.09 to $5.25 in early trading, Wednesday. The shares trade in a 52-week range of $6.99 and $3.22.