Mining Company Releases Development Plans for Athabasca Uranium Project

NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) Announced in a recent press release that it has a plan to advance the Rea Project, which the company has 75% ownership in. Orano Canada Inc. owns the other 25% of the 125,328 hectare, Alberta based project.

The CEO of NevGold, Alastair Still commented “With GoldMining’s portfolio of gold and gold-copper projects located throughout the Americas, it may come as a surprise to some that the Company owns the large and prospective Rea uranium project located in the Western Athabasca Basin, Canada.” Still continued “We are working to reactivate our exploration efforts and plan to work with local stakeholders as we develop a phased approach to daylight value from this largely unrecognized asset.”

The company reported several highlights of the project, including the recent rise in Uranium prices, and the prime location in the Athabasca Basin, one of the world’s foremost uranium mining districts. NevGold stated that the project has been underexplored, but that interest has been renewed by the recent discoveries in the neighboring Patterson Lake region. The company intends to explore two target areas for uranium, and the Rea Project surrounds another holding of Orano’s, which is known to hold near-surface uranium deposits, the Maybelle River project. Additionally, the based on regional geological data, the company suspects that the Rea Project may hold large shear zones.

Gold Reaches US$2046.95 Per Ounce

On December 4, 2023, Stockhead reported that gold had reached a price of US$2046.95 per ounce, representing a rise in prices by 6%, and edging ever closer to record prices. According to Stockhead, some of the catalysts for gold included the conflict in the Middle East, which drove up economic uncertainty, and suggestions that the Federal Reserve could cut rates in 2024. The report commented “The end of a brief ceasefire and continued hopes for Fed rate cuts next year subsequently sent gold futures to US$2071/oz on Friday, with the London Bullion Market Association’s prices to be closely watched on Monday.”

Morris Hubbartt with 321 Gold commented in a review of the gold market that “My system suggests that we’re now entering the next stage of the rally, the momentum stage.” Hubbartt was optimistic about gold’s trends, stating “Our value zone buys for the gold and silver miners look spectacular with this stunning rally.”

Immediate Strong Buy

Clive Maund reviewed NevGold Corp. in March of 2023, and rated the company as an “immediate strong buy” for potential investors. Maund examined the company’s stock patterns and commented “On its latest 6-month chart we can see that it is in the very late stages of a Cup & Handle base with this interpretation of what is going on being very strongly supported by the powerfully bullish volume pattern of recent weeks with the strong upside volume starting to drive the Accumulation line steeply higher.”

Clive Maund also included the company in a list of gold companies in a good position to benefit from the rising gold market in May of 2023. Maund commented that “NevGold is now turning higher after reacting back further than expected.”

NevGold has a number of catalysts for Q4 of 2023 to report, including an ongoing metallurgical study for Nutmeg Mountain, and a Phase II program for both Nutmeg Mountain and Limousine Butte.

Ownership and Share Structure

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 19.2% of the company. According to Reuters, Non-Executive Chair Giulio T. Bonifacio owns 6.83% of the company with 4.63 million shares, President and CEO Brandon Gennaro Bonifacio owns 6.47% of the company with 4.38 million shares, Independent Director Gregory French owns 1.62% of the company with 1.10 million shares, Independent Director Timothy Dyhr owns 1.37% of the company with 0.93 million shares, Independent Director Victor H. Bradley owns 1.33% of the company with 0.90 million shares, Independent Director Morgan Hay owns 1.25% of the company with 0.85 million shares, and Executive VP and CFO Robert T. McKnight owns 0.33% of the company with 0.22 million shares.

Reuters reports that institutions, in the form of GoldMining Inc., owns 24.60% of the company with 16.67 million shares.

According to Reuters, there are 67.76 million shares outstanding with 38.07 million free float traded shares, while the company has a market cap of CA$15.56 million and trades in the 52 week period between CA$0.25 and CA$0.48.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NevGold Corp.
2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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