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NovaGold Resources Ord Shs T.NG

Alternate Symbol(s):  NG

NOVAGOLD Resources Inc. is a precious metals company, which is focused on the development of its 50%-owned Donlin Gold project in Alaska. The Donlin Gold project is a development-stage gold project. The Donlin Gold property is located in the Kuskokwim region of southwestern Alaska on private, Alaska Native-owned mineral and surface land and Alaska state mining claims. The Donlin Gold deposits are situated at approximately 62-degree North latitude and 158-degree West longitude, which is 450 kilometers (km) west of Anchorage and 250 km northeast of Bethel up the Kuskokwim River. The project is held by Donlin Gold LLC (Donlin Gold), which is owned 50% by the Company's wholly owned subsidiary, NOVAGOLD Resources Alaska Inc., and 50% by Barrick Gold Corporation's wholly owned subsidiary, Barrick Gold U.S. Inc.


TSX:NG - Post by User

Bullboard Posts
Comment by oddykogon Jun 24, 2008 5:00pm
461 Views
Post# 15224096

RE: timing

RE: timingNovagold has only one smaller gold mine (which is STILL not operational!) that they run themselves.  All the rest of the value is in the 2 joint ventures for Donlin and Galore Creek, which both require huge investments to bring them online - investment resources which NG can only get from debt or shareholders, both of which are not appealing options.

I suspect that management by now understands that as great as the potential is for their two joint ventures, the risks are also great and the capital needs to be invested before the first ounce comes out of the ground.

The answer is: they need to a deal that turns them into a true miner with regular production, cash flow and (hopefully) a sound balance sheet.  Once they have a number of sound mines operating their ability to hold up their end of the giant JVs looks much better (that is unless a big boy sweeps them up against their will before that.  Let's see what management can come up with.
Bullboard Posts