NovaGold Files Preliminary Economic Assessment for Ambler Project

NovaGold Resources Inc. NG has filed the Preliminary Economic Assessment for its 100%-owned Ambler project in northwest Alaska, the results of which were previously announced on April 14, 2011. "The project's Net Present Value (NPV8%), using the PEA base case metal price assumptions of US$2.50/lb copper, US$1.05/lb zinc, US$1.00/lb lead, US$1,100/oz gold and US$20/oz silver, was assessed at US$718 million and US$505 million on a pre-tax and post-tax basis, respectively. The corresponding Internal Rates of Return ("IRR") were estimated at 30% and 25%. Post-tax cash flows were estimated at US$1.7 billion, with full payback occurring in year four of operations. Using recent metal prices of US$4.31/lb copper, US$1.20/lb zinc, US$1.20/lb lead, US$1,425/oz gold and US$36/oz silver, the pre-tax and post-tax NPV8% were assessed at US$2.2 billion and US$1.6 billion, respectively, with corresponding IRRs of 59% and 50%. Under these conditions, full payback would occur within two years of operations, with post-tax cash flows estimated at US$4.6 billion. "