Novagold has formally started the Bankable Feasibility Study for Donlin with Fluor leading a multi‑firm team, targeting roughly a 12–18 month timeline (company expects to complete the BFS in 2027) and bolstered its treasury to $392.5 million via a private placement to fund the work.

Donlin is a very large, high‑grade project — about 40 million ounces at 2.25 g/t — modeled to produce over 1 million ounces per year for a 30‑year life (≈1.3M in the first decade) with operating costs under $1,000/oz and an NPV near $24 billion at a 5% discount in sensitivity scenarios.

Federal permitting is complete and state approvals are nearly finished, with only dam safety certificates pending final engineering drawings (management says this is “not on the critical path”); the company is also pursuing third‑party infrastructure and multiple financing avenues, including an LOI for a gas pipeline and potential government/EXIM interest.

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Novagold Resources (NYSEAMERICAN:NG) used its fiscal 2026 first-quarter earnings call to outline progress on the Donlin Gold project in Alaska, including the formal start of bankable feasibility study (BFS) activities and updates on permitting, community engagement, and liquidity following a recent financing.

President and CEO Greg Lang said Donlin’s combination of “scale, grade, long life, low operating costs, and significant upside potential” sets it apart among gold development projects. Lang said Donlin has “about 40 million ounces of reserves and resources at 2.25 grams,” which he described as “better than twice the industry average.” He also emphasized that the known resource footprint represents only a small portion of the overall land package, calling out that the known resource occupies “only 5% of our total land holdings.”

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Lang also pointed to Donlin’s projected production profile, saying the mine is expected to average “over 1 million ounces a year during its 30-year mine life,” with about “1.3 million ounces the first 10 years.” He said the project’s grade contributes to expected operating costs of “less than $1,000 an ounce.”

Using a chart of sensitivity to gold prices, Lang said that with gold “approaching the upper end” of the range shown, Donlin has a net present value of “almost $24 billion at a 5% discount rate,” underscoring what he described as significant leverage to the gold price environment.

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Management said the feasibility effort is now staffed with a mix of internal leadership and external engineering firms. Lang said the company is “starting to fill out the Donlin Gold feasibility team,” naming Frank Arcese as project manager and describing him as a nearly 40-year industry veteran with experience on large, remote projects.

Lang said Fluor has been hired to lead the BFS, supported by specialty firms including Worley (pipeline), Hatch (pressure oxidation and oxygen plants), and WSP (including power plant work). During the Q&A, Scotiabank’s Francisco Bustamante asked whether the “clock” had started on the previously discussed 12- to 18-month BFS timeline following the award of the engineering contract. Lang responded that it had, adding that Fluor “hit the ground running” and that, “give or take a year,” the company expects the work to be wrapped up.

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Lang said the federal permitting process has been completed and that state permitting work is nearing completion. He stated that permits are “in good standing,” and that the remaining Alaska permit relates to dam safety certificates for the tailings dam and other water retention structures.

In response to a question from B. Riley Securities’ Soundarya Iyer on what remains outstanding at the state level, Lang said the state requires final engineering drawings before approval is granted. He said the design packages have been submitted and that the company expects approval “about the time we’re wrapping up the bankable feasibility study.” Lang added that the remaining permit is “not on the critical path,” while other state permits and federal permits remain in good standing.

Vice President and CFO Peter Adamek reported a fiscal 2026 first-quarter net loss of $15.4 million, an increase of $6.3 million from the comparable prior-year period. Adamek attributed the change primarily to higher Donlin expenditures following the commencement of BFS-related activities, including hiring for key project roles, as well as higher general and administrative (G&A) spending.

Adamek said the company’s share of Donlin Gold expenses was $3.9 million higher than the prior-year period due to the camp remaining open over the winter and increased project activity following Fluor being awarded the lead engineering role in early February 2026. He also noted that, unlike the prior-year period, the quarter reflects NovaGold’s 60% interest in Donlin Gold.

G&A expenses rose by $3.9 million year over year, driven by higher professional fees and share-based compensation. Adamek said professional fees were elevated but “remained in line with quarterly cadence expectations” and are expected to decline through the rest of the year while staying within previously issued 2026 guidance.

On liquidity, Adamek said treasury increased by $277.4 million to $392.5 million at quarter-end, “primarily due to closing of a private placement.” He said proceeds are intended to fund Donlin activities, support the company’s prepayment option on the Barrick promissory note, and meet general corporate purposes. Adamek characterized the balance as “robust,” saying NovaGold is well-funded to complete the Donlin BFS in 2027 and to exercise its option to prepay the Barrick promissory note later in the year.

On exploration potential, Lang reiterated that known resources are located in the ACMA and Lewis areas, which he described as representing only 3 kilometers of an 8-kilometer gold-bearing system. Asked about exploration priorities, Lang said the company is putting together an exploration plan focused on “general reconnaissance work” across its land holdings and the area around Donlin, with field timing influenced by remaining snow cover in Alaska. He characterized the effort as a “modest program” to begin evaluating broader potential.

Chairman Thomas Kaplan expanded on the company’s interest in exploration, arguing that the largely unexplored portion of the property is “prime real estate.” Kaplan said the company believes there is “low-hanging fruit” to add “tens of millions of ounces” within the mineralized belt and that partners are aligned on the value of exploration as a “multiple expander,” while also acknowledging the uncertainty inherent in exploration outcomes.

Lang also highlighted interest in third-party participation in infrastructure, including potential involvement in the project’s gas pipeline. He said the company has a non-binding letter of intent with Glenfarne to evaluate natural gas supply from a proposed pipeline that would bring gas from Alaska’s North Slope into Cook Inlet and ultimately connect to infrastructure feeding Donlin. Lang described the potential for lower-cost and reliable long-term natural gas as a possible “game changer” for the project.

On project financing, Bustamante asked whether the recent approval of a large EXIM loan for another U.S. project suggested potential debt financing availability for Donlin. Kaplan said that as “the biggest gold mine in the United States,” Donlin could attract “multiple sources of financing,” and he suggested governments could be “a very large component.” Kaplan said EXIM is “very well aware of our project,” citing Donlin’s domestic investment angle and location within Alaska’s broader energy context. He also pointed to Japan and South Korea’s stated commitments to invest in the U.S. and suggested the project’s scale could support financing options including offtake-related structures.

In concluding remarks and responses to shareholder-submitted questions, management emphasized that completing the BFS is the key milestone, while also noting intermediate updates and potential catalysts as study components are completed and infrastructure discussions progress. Kaplan also discussed broader gold market themes, including central bank buying and what he characterized as the “remonetization of gold,” while reiterating his long-term view on the metal and the company’s commitment to Donlin.

Novagold Resources Inc is a mineral exploration and development company headquartered in Vancouver, British Columbia. The firm is focused on advancing large-scale precious metals projects through disciplined project management, environmental stewardship and community engagement. Novagold maintains a lean corporate structure while leveraging partnerships and industry expertise to advance its projects toward production.

The company's flagship asset is the Donlin Gold project in Alaska, a 50/50 joint venture with Barrick Gold Corporation.

The article "Novagold Resources Q1 Earnings Call Highlights" was originally published by MarketBeat.