Donlin Gold's Strategic Momentum and Ownership Alignment Position It as a Prime Gold Sector Play

In the evolving landscape of the gold sector, few projects have captured the attention of investors and industry analysts as effectively as Donlin Gold. This joint venture between NOVAGOLD Resources and Paulson Advisers LLC has emerged as a standout opportunity, driven by a confluence of strategic stakeholder engagement, operational progress, and a newly aligned ownership structure. As the project advances toward an updated Bankable Feasibility Study (BFS), the interplay of these factors is accelerating its path to production and unlocking long-term value for investors.

Stakeholder Engagement: Building Trust and Momentum

Donlin Gold's recent efforts to deepen relationships with key stakeholders have been instrumental in fostering trust and aligning expectations. In July 2025, the project team conducted a pivotal site visit in Alaska, engaging with Alaska Native Corporations such as Calista Corporation and The Kuskokwim Corporation (TKC), as well as state and federal officials. These interactions underscored the project's commitment to respecting Indigenous traditions and environmental stewardship while emphasizing its potential to generate employment and economic benefits for the Yukon–Kuskokwim (Y-K) region.

The visit included a symbolic stop at a local fish camp on the Kuskokwim River, where the team gained firsthand insight into the cultural significance of the area. Such gestures are critical in a project of this scale, where community support is not just a regulatory requirement but a cornerstone of sustainable development. Additionally, meetings with Alaska's Congressional delegation and Governor Mike Dunleavy highlighted the project's alignment with state priorities for responsible resource development.

Donlin Gold has also prioritized environmental and social initiatives, such as the Summer Safety Program (distributing life jackets to seven villages) and the annual “Clean-up Green-up” initiative, which collected waste from 47 communities. These efforts reinforce the project's broader commitment to ESG (Environmental, Social, and Governance) principles, a growing priority for investors.

Operational Progress: Drilling, Funding, and Permitting

Operationally, Donlin Gold has made significant strides in 2025. The acquisition of Barrick Mining Corporation's 50% stake in the project for $1 billion—completed in June 2025—solidified NOVAGOLD's 60% ownership and Paulson's 40% stake. This transaction was funded by a $234 million equity raise, which bolstered NOVAGOLD's cash reserves to $319 million as of May 31, 2025. The increased ownership concentration has streamlined decision-making and provided the financial flexibility to advance the project.

A 15,000-meter drill program, redirected to focus on resource conversion and expansion, has already completed 8,401 meters by mid-2025. This work is critical for updating the feasibility study, which is expected to be contracted for completion by year-end. The project's resource base—39 million ounces of gold in Measured and Indicated categories—positions it as one of the largest and highest-grade open-pit deposits globally.

Permitting and regulatory challenges remain, but recent court rulings have been favorable. For instance, the Alaska Superior Court upheld the state's 401 Water Quality Certification in May 2025, while a federal court validated the agencies' analysis on two of three contested issues in the project's NEPA review. These legal victories reduce uncertainty and provide a clearer path for construction.

Ownership Alignment: A Catalyst for Value Creation

The new 60-40 ownership structure between NOVAGOLD and Paulson Advisers has created a powerful synergy. Both entities now share equal governance rights under a new limited liability company agreement, ensuring aligned incentives to advance the project. Paulson's $800 million investment and NOVAGOLD's $200 million stake reflect strong confidence in the project's potential.

This alignment is particularly significant given the involvement of high-profile stakeholders like John Paulson and Dr. Thomas S. Kaplan, who have emphasized their commitment to responsible development. The partnership also benefits from Paulson's deep capital resources and NOVAGOLD's expertise in gold project execution.

Financially, the project is well-positioned. With $319 million in cash and a projected $43 million 2025 budget (on a 100% basis), Donlin Gold has the liquidity to fund the BFS, drilling, and permitting activities without diluting shareholders. The company has also engaged executive search firms to fill critical leadership roles, signaling its intent to scale operations efficiently.

Investment Implications: A Prime Gold Sector Play

For investors, Donlin Gold represents a compelling opportunity in a sector poised for growth. The project's potential to produce over one million ounces of gold annually over a 27-year mine life—on a 100% basis—aligns with the current bull market for gold, driven by inflationary pressures and geopolitical uncertainty.

The project's strategic location in Alaska—a Tier One mining jurisdiction with political stability—further enhances its appeal. Unlike many gold projects in politically volatile regions, Donlin Gold benefits from a predictable regulatory environment and a skilled labor pool.

Moreover, the project's infrastructure plans, including discussions with natural gas pipeline developers, could reduce operational costs and enhance long-term profitability. These initiatives, combined with the updated BFS, are expected to refine the project's economics and attract additional capital.

Conclusion: A Pathway to Production and Value

Donlin Gold's strategic momentum is undeniable. By aligning ownership, securing stakeholder trust, and advancing operational milestones, the project is transitioning from a high-potential deposit to a near-term production asset. For investors seeking exposure to a gold sector play with clear catalysts—such as the completion of the BFS, permitting approvals, and a construction decision—Donlin Gold offers a rare combination of scale, grade, and governance.

As the gold market continues to favor projects with strong fundamentals and ESG credentials, Donlin Gold stands out as a prime candidate to deliver outsized returns. The next 12–18 months will be critical, with the BFS and drilling results providing key data points. For those with a long-term horizon, the project's potential to become America's largest gold mine is not just a vision—it's an actionable opportunity.