NevGold Corp.’s (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) latest drill results from its flagship Limousine Butte project in Nevada have expanded the mineralized footprint over 100 meters to the northeast at the Resurrection Ridge target area.
The company released new assays from its inaugural 10,000-meter drill program at the project and said it has found more shallow oxide gold mineralization.
“Testing areas with potential for concealed mineralization is the key to unlocking more value at Limousine Butte and expanding the mineralized system with the objective of driving towards a multi-million-ounce resource base,” NevGold’s Vice President of Exploration Derick Unger said.
The company is working toward an updated resource for Limousine to be published in 2023.
The new results showed more shallow oxide gold at Resurrection Ridge, NevGold said.
“This is good news and confirms the exploration potential at Nutmeg Mountain,” said Thibaut Lepouttre, who follows the company in his Caesars Report newsletter
Hole RR22-001 intercepted 0.53 grams per tonne oxide gold (g/t oxide Au) over 74.7 meters, including 0.81 g/t oxide Au over 19.9 meters from the top of the mineralized zone. It’s a step-out from another hole that intercepted 2.19 g/t oxide Au over 61.6 meters, including 8.51 g/t oxide Au over 11.6 meters.
The mineralized area at Resurrection Ridge now extends over 700 meters along strike and over 350 meters laterally, NevGold said.
There is also another 1 kilometer of untested strike length at Resurrection Ridge, which will be a key focus of drilling moving forward.
“With the expansion of mineralization to the northeast, we are eager to continue step-out drilling,” NevGold Chief Executive Officer Brandon Bonifacio said. “We have significantly expanded the mineralized footprints at both Resurrection Ridge and Cadillac Valley in this drill program, and these two target areas will form the basis of advancing Limousine Butte to a near-term resource estimate.”
The Catalyst
Oxidized mineralization has been seen in all the holes drilled by the company at the Limousine Butte.
NevGold also has projects in Idaho and British Columbia, including the recently acquired Nutmeg Mountain project in Idaho, where it found an undrilled 6-meter-wide low-sulfidation epithermal vein outcropping at surface more than 650 meters from the boundary of the current resource defined in 2020.
NevGold management believes that vein, which is exposed some 100 meters along strike, could lead to a lateral expansion of the existing resource.
Geochemical work suggests the vein is near the top of the epithermal system, above the would-be gold-silver zone.
“This is good news and confirms the exploration potential at Nutmeg Mountain,” said Thibaut Lepouttre, who follows the company in his Caesars Report newsletter. “The focus of the previous owners was on upgrading the resource too (measured and indicated). Finding a new zone confirms the potential to add ounces.”
Ownership and Share Structure
NevGold’s top shareholders include GoldMining Inc., which owns 10.22% or 5.93 million shares; McEwen Mining Inc., which owns 8.56% or 4.96 million shares; Giulio Bonifacio, who owns 6.72% or 3.9 million shares; and CEO Brandon Bonifacio, who owns 6.69% or 3.88 million shares, according to Reuters.
Newsletter writers Clive Maund of clivemaund.com, of Ceaser's Report, and Ivan Lo of The Equedia Weekly Letter all follow the stock. Click "See More Live Data" in the data box above to view their full thoughts.
The company has roughly 58 million shares outstanding, 34.1 million of them free floating. Its market cap is CA$23.2 million, and it trades in a 52-week range of CA$0.85 and CA$0.33.
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