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NOVAGOLD Responds to Inaccurate Report from Short-Selling Firm

by ahnationtalk on May 29, 202085 Views

VANCOUVER, British Columbia, May 29, 2020  — NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company”) (NYSE American, TSX: NG) responds to a misleading report issued on May 28, 2020 by the Beijing-based short seller J Capital Research. The Company is currently reviewing the report in detail and will provide a more fulsome response to the numerous inaccuracies and falsehoods contained in the report.

“Under normal circumstances, a sloppy and truly meretricious report from a firm about which we know nothing would not be met by a corporate response,” said Dr. Thomas Kaplan, Chairman of the Board. “This is especially so as the firm that released it has not reached out to us to fact check their contentions. It is an odd data point indeed that J Capital Research at no time sought to engage with NOVAGOLD or its partners to clarify the false assumptions it used regarding the Donlin Gold project economics.

Nonetheless, as NOVAGOLD’s management is firmly committed to transparency, and has always welcomed every enquiry from investors and analysts with diligence, we feel it is wise to let our shareholders know that a proper response to the report shall be forthcoming. Despite the report’s clearly disingenuous intent to manipulate and not educate, we intend to deal with issues raised in this report with the same degree of alacrity as we would any well-meaning enquiry.

Shorting a cash-rich company with an exceptional asset and intelligent long-term investor base is an iffy proposition at the best of times unless it is for a quick trade. As gold rises and sophisticated investors seek “extraordinary leverage to gold in a place that they can keep it”, it is likely to prove to be an unrewarding exercise to short a Company with an asset that is unique in terms of its excellent combination of size, grade, production profile, exploration potential, mine life, pro forma operating costs and, of course, jurisdictional safety.

NOVAGOLD has kept its promises over the eight years since Greg Lang and I assumed leadership and positioned the Company to be one of the premier vehicles for gold investors in our space. We believe that our shareholders are far too well-informed and knowledgeable about our Donlin Gold project, our integrity, and competence to take this report seriously.”


NOVAGOLD is a well-financed precious metals company focused on the development of its 50%-owned Donlin Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in the measured and indicated mineral resource categories, inclusive of proven and probable mineral reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne in the measured and indicated resource categories on a 100% basis),1 Donlin Gold is regarded to be one of the largest, highest-grade, and most prospective known open pit gold deposits in the world. According to the Second Updated Feasibility Study (as defined below), once in production, Donlin Gold is expected to produce an average of more than one million ounces per year over a 27-year mine life on a 100% basis. The Donlin Gold project has substantial exploration potential beyond the designed footprint which currently covers three kilometers of an approximately eight-kilometer long gold-bearing trend. Current activities at Donlin Gold are focused on state permitting, optimization work, community outreach and workforce development in preparation for the construction and operation of this project. With a strong balance sheet, NOVAGOLD is well-positioned to fund its share of permitting and optimization advancement efforts at the Donlin Gold project.

Scientific and Technical Information

Some scientific and technical information contained herein with respect to the Donlin Gold project is derived from the “Donlin Creek Gold Project Alaska, USA NI 43-101 Technical Report on Second Updated Feasibility Study” prepared by AMEC with an effective date of November 18, 2011, as amended January 20, 2012 (the “Second Updated Feasibility Study”). Kirk Hanson, P.E., Technical Director, Open Pit Mining, North America, (AMEC, Reno), and Gordon Seibel, R.M. SME, Principal Geologist, (AMEC, Reno) are the Qualified Persons responsible for the preparation of the independent technical report, each of whom are independent “qualified persons” as defined by NI 43-101.

Clifford Krall, P.E., who is the Mine Engineering Manager for NOVAGOLD and a “qualified person” under NI 43-101, has approved and verified the scientific and technical information related to the Donlin Gold project contained in this press release.

NOVAGOLD Contacts:

Mélanie Hennessey

Vice President, Corporate Communications

Jason Mercier

Manager, Investor Relations

604-669-6227 or 1-866-669-6227


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