NovaGold Resources (NG) is offering leveraged pure-play exposure to gold through its Donlin project in Alaska, Morgan Stanley said in a note emailed Thursday.

Donlin ranks among the largest undeveloped gold deposits globally, with current reserves and resources constituting only about 3 kilometers of its 8-km mineralized gold belt that represent less than 5% of the total mineral land area, according to the note.

Donlin also sits on private land, a "favorable" location, with key federal and state permits already in place, the investment firm added.

NovaGold expects to complete the ongoing bankable feasibility study on the project in 2027. Morgan Stanley expects first production in 2032 and estimates Donlin's discounted cash flow value at about $9.2 billion.

Morgan Stanley initiated coverage on NovaGold Resources, with an overweight rating and $13.80 price target.

Price: 9.35, Change: +0.09, Percent Change: +0.97