On one memorable episode of "How the Earth Was Made," Dr. Richard Goldfarb of the Colorado School of Mines dropped a challenge to gold explorers everywhere: Find Nevada's missing gold.
Nevada is one of the most prolific gold producing regions in the world. It's some of the most desirable real estate in the world for gold exploration. And Goldfarb's missing ounces are a huge story, worth hundreds of billions of dollars.
In Season 2, Episode 13 was all about gold. The show took a deep dive into Nevada's extraordinary gold fields. Around 35 minutes in, Goldfarb said:
"There is no reason not to assume as much gold still exists as has been mined in the past, but prospectors, explorationists, and geologists have found the easy gold."
The rest of that gold is a challenge because it's hidden under cover. Finding that gold, without spending hundreds of millions of dollars, remains the biggest hurdle in the industry today.
We can only see half of Nevada's prolific gold strata. The other half sits under layers of silt and gravel eroded from the mountains.
That's because this part of Nevada deformed as a hot plume of mantle rock rose under it. As the hot rocks boiled up from the deep earth, the land domed up and then partially collapsed.
The remaining part of the dome became mountains. The collapsed sections became valleys. It's all the same rock…which led to Goldfarb's conclusion that there was a lot of gold left to find.
Nevada produced over 248 million ounces of gold out of the rocks we could see. If Goldfarb is correct, that much could be left in the rocks that sit out of sight, under cover.
As you can see from this map, roughly 55% of Nevada is under cover:
That's a huge opportunity, but it takes new science to do it.
Fortunately, exploration geologists have a huge boost. It comes from the same technological explosion that created our smartphones. Laboratories can now detect concentrations of metals in water to parts per trillion.
That's like being able to pick out specific pennies from a billion dollars' worth. Or like finding a single person out of all the people in the world.
Since water is the universal solvent, everything it touches leaves a trace. And in Nevada, that means gold deposits leave their trace in the ground water.
One tiny company, Nevada Exploration Inc. (NGE:TSX.V; NVDEF:OTCQB), spent years collecting ground water samples all around Nevada. And it dialed into a specific region that it believes holds one of Goldfarb's hidden gold deposits: South Grass Valley.
The company began drilling the project in March 2021.
The amazing thing is, they are so confident in this process that they published all of their model data online.
That means anyone can see what they found and why they are drilling. In addition, they published a video tutorial explaining the process as well.
The science is exciting. The potential is enormous. And Nevada Exploration is still tiny, with a market cap of just C$20.3 million.
The risk reward setup on this stock looks outstanding. If you want to add a talented team, with enormous upside potential, check them out. I'm so excited about the project that I joined President James Buskard to talk about it on Streetwise Live!
Worth a look.
Sincerely,
--Matt Badiali
Reach Matt Badiali at www.mattbadiali.net.
Matt Badiali is a geologist and independent financial analyst. He spent fifteen years researching and writing about great investments inside the natural resources sectors. He can be reached at www.mattbadiali.net.
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