NOVAGOLD Files First Quarter 2025 Report with Strong Treasury to Advance Donlin Gold Activities for Long-Term Value Creation
VANCOUVER, British Columbia, April 01, 2025 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. ("NOVAGOLD" or "the Company") ((NYSE American, TSX:NG) today filed its 2025 first quarter report and provided an update on its Tier One1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Corporation ("Barrick").
Details of the financial results for the quarter ended February 28, 2025, are presented in the consolidated financial statements and quarterly report on Form 10-Q filed on April 1, 2025, that is available on the Company's website at www.novagold.com, on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
As detailed in the above filings, NOVAGOLD held approximately $93 million in cash and term deposits as of February 28, 2025, and reported net first quarter cash expenditures of $8.3 million, including $3.6 million to fund NOVAGOLD's share of the Donlin Gold project and $3.8 million in corporate general and administrative costs. As NOVAGOLD is a development-stage company with no production, the Company reported earnings of ($9.1) million and earnings per share of ($0.03) for the first quarter of 2025, reflecting expenditures in line with budget.
In the first quarter of 2025 the following milestones were achieved at Donlin Gold:
Commenced the 2025 field program with camp opening in February, followed by the start of drilling in March after quarter end. A total of approximately 15,000 meters of drilling is planned, primarily focused on grid drilling to further develop the modifying factors (which are considerations used to convert mineral resources to mineral reserves) and mine planning input parameters.
Collaborated with Donlin Gold, Calista Corporation ("Calista"), and The Kuskokwim Corporation (TKC) on critical ecological, educational and cultural awareness initiatives, including increased government affairs engagement with state representatives, information sharing about the project, and emphasis on its importance to Alaska and the Yukon-Kuskokwim (Y-K) region.
President's MessageIn the first quarter of 2025, Donlin Gold LLC made significant progress on key activities including, among others, the commencement of the Donlin Gold field program and its infrastructure support, and the successful opening of camp in February, with drilling now underway with a crew of 45 on site (70% of which are from the region). This year's program includes three rigs that will drill some 15,000 meters, primarily focused on grid drilling to further develop the modifying factors and input parameters and assumptions for future mine planning and schedule work. These efforts further advance Donlin Gold and continue to provide direct exposure to gold through one of the largest known undeveloped gold assets globally2, located in Alaska, a stable, Tier One, and mining-friendly jurisdiction3.
Strengthening Partnerships and Supporting the Y-K Region's Environmental and Social Initiatives
In the first quarter of 2025, NOVAGOLD and Donlin Gold staff travelled to Juneau to meet with members of the Alaska State Legislature, and to Washington, D.C., joined by Barrick staff, to meet with Alaska's congressional delegations to share information about Donlin Gold and to reinforce the project's importance to Alaska and the Y-K region. Donlin Gold also presented to the Alaska House of Representatives' Energy Committee, as well as to the Resources committees of both the House and Senate, to outline the Donlin Gold project's energy requirements and to discuss Alaska's environmental standards.
In January, meaningful collaboration was deepened with the Native Village of Napaimute, with Donlin Gold extending financial assistance to maintain the Kuskokwim River Ice Road, a pivotal winter infrastructure that ensures the safe transport of residents to community events and serves as a conduit of economic activity for the Kuskokwim River communities. Additionally, Donlin Gold pursued its support of and participation in the Alaska Safe Riders initiative, which promotes the secure use of snowmachines, all-terrain vehicles, and recreational off-road vehicles.
Financial assistance was also provided to Camp Fire Alaska, an organization dedicated to offering summer camps and programs to youth in rural communities across Alaska. Activities included music, sports, science, field trips, and numerous outdoor recreation opportunities.
Throughout the first quarter, Donlin Gold maintained its dedication to backing local community sports initiatives, exemplified by its sponsorship of the Donlin Gold Basketball Tournament held at the Bethel Regional High School, and of Y-K mushers Isaac Underwood, Mike Williams Jr., and Pete Kaiser, the 2019 Iditarod champion and a Donlin Gold employee. Mr. Kaiser, who hails from Bethel, is the first Yup'ik musher and fifth Alaska Native to win an Iditarod championship. He also recently won his ninth Kuskokwim 300, a point of tremendous pride for NOVAGOLD.
Upholding Current Permits and Working to Secure Key State Approvals
Donlin Gold continued to support the state and federal agencies defending their permits in litigation. The 401 Water Quality Certification, water rights permits and state pipeline Right-of-Way (ROW) in state court have been fully briefed and argued in State court, with decisions anticipated in 2025.
On September 30, 2024, a Federal court upheld the federal agencies' analysis on two of the three issues raised in a challenge to Donlin Gold's Joint Record of Decision, 404 permit, and pipeline ROW. However, the court ruled that the federal agencies should have evaluated a larger theoretical release from the project's tailings storage facility as part of its National Environmental Policy Act (NEPA) analysis. Briefing on the appropriate remedy to address the court's decision on this issue was completed in late March 2025 and oral argument has been scheduled for April 14, 2025.
Advancing Donlin Gold for All Stakeholders, Providing Direct Exposure to Gold, through a Unique Asset4
Donlin Gold is one of the largest known undeveloped gold assets in the world5, with approximately 39 million ounces of gold in Measured and Indicated Resources at a grade of 2.24 grams per tonne6, twice the industry average7. Projected to produce over one million ounces annually8, Donlin Gold enjoys considerable exploration upside potential, with only three kilometers of an eight-kilometer mineralized belt explored to date. NOVAGOLD believes it is ideally positioned to become a cost-effective9, long-term open-pit producer located in a safe mining jurisdiction backed by strong community and state support.
NOVAGOLD Outlook
Looking ahead, NOVAGOLD is well-prepared to fund its share of activities for the next two years at current spending levels. We remain committed to ...
https://www.benzinga.com/pressreleases/25/04/g44582912/novagold-files-first-quarter-2025-report-with-strong-treasury-to-advance-donlin-gold-activities-fo
