High-Grade Gold Discoveries in Nevada Reveal Significant Potential For 2025

1) James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.

2)  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Nevada King Gold Corp. (NKGFF:OTCMKTS; NKG:TSX) has reviewed its 2024 achievements and outlined plans for 2025 at its 100%-owned Atlanta Gold Mine project in Nevada. Located in the prolific Battle Mountain Trend, the Atlanta project has seen significant progress, including high-grade gold discoveries, resource expansion potential, and positive metallurgical results, making it a standout asset among junior exploration companies.

As detailed in the news release, the company's Phase II drilling program concluded in 2024 with 17,007 meters drilled, including 75 reverse circulation (RC) holes and one core hole. Key results included high-grade intercepts, such as 6.28 grams per tonne (g/t) gold over 54.9 meters at the South Quartzite Ridge Target (SQRT) and 7.94 g/t gold over 18.3 meters at the Wild West Zone (WWZ). These discoveries highlight the effectiveness of geophysics as a tool for identifying new gold-mineralized zones. The East Ridge Target (ERT), another 2024 discovery, yielded an intercept of 1.32 g/t gold over 22.9 meters, emphasizing the project's resource expansion potential.

Stepout drilling showed significant expansion opportunities, with high-grade gold mineralization found north, west, and downdip of the historical resource area. Metallurgical testing validated strong recovery rates, with gold extraction reaching up to 92% for high-grade material using conventional milling methods. This result underscores the viability of processing Atlanta's oxide-dominated gold system.

The company also strengthened its financial position in 2024, raising US$21.6 million at an average share price of US$0.345, doubling its institutional shareholder base, and ensuring funding for its Phase III drill program. Leadership additions, including John Sclodnick as president, have bolstered Nevada King's management team, enhancing its institutional relationships and operational expertise.

Digging Into The Gold Mining Industry

According to The Daily Gold on December 27, Jordan Roy-Byrne discussed the underperformance of gold and silver stocks in 2024 compared to gold itself, which gained 28%. He highlighted that gold stocks are "sporting very bullish bases at a time when they are extremely under-owned," with gold miner ETFs near a 17-year low in market share. Roy-Byrne noted that this setup positions the sector for an explosive breakout once macroeconomic conditions, such as an economic downturn and Federal Reserve easing, align. He concluded that "the gold stocks will explode out of their bases" under the right conditions.

On December 27, Nevada King Gold Corp. received a "Buy" rating with a 12-month price target of CA$0.65 from Roth MKM analyst Mike Niehuser.

On December 31, 321Gold emphasized the gold sector's significant potential, with Stewart Thomson noting that gold had achieved a "26 bagger" against the dollar index since 1976.

Thomson described the current conditions in gold and mining stocks as particularly favorable, citing oversold indicators such as the BPGDM sentiment index dropping below 40, moving toward a "no-brainer" buy zone. He also highlighted support levels for major gold miner ETFs, including GDX at US$32-$30, and observed strong insider buying trends within the sector.

Also, on December 31, Matthew Piepenburg of GoldSwitzerland analyzed the factors driving gold's secular rise. He attributed gold's record nominal highs in all currencies during 2024 to central bank buying and the diminishing appeal of U.S. Treasury bonds. Piepenburg explained that rising debt levels and the debasement of fiat currencies make gold a superior reserve asset. He asserted, "It's as tragically simple now as 'inflate or die,' and sadly, gold, therefore, has nowhere to go but up simply because paper money has no choice but to go down."

Catalysts Supporting Nevada King's Growth Potential

Nevada King's Phase III drill program, which commenced in late 2024, is a key focus for 2025, according to the latest Nevada King investor presentation. The program is planned to cover 20,000 to 30,000 meters, targeting resource expansion at SQRT and testing 12 regional anomalies identified through geophysical surveys. These targets, including the Jumbo, Northeast, and Silver Park areas, hold the potential to uncover satellite deposits and extend known mineralization.

Upcoming catalysts include the release of Phase II metallurgical results in mid-2025 and ongoing updates from the Phase III drilling campaign. The company's ability to efficiently permit new drill sites, demonstrated by the Bureau of Land Management's approval of its modified operations plan, supports its aggressive exploration strategy.

A Buy-Rated Stock

On December 27, Nevada King Gold Corp. received a "Buy" rating with a 12-month price target of CA$0.65 from Roth MKM analyst Mike Niehuser. Niehuser highlighted the company's progress at the Atlanta Gold Project, noting that the ongoing Phase III drill program has demonstrated significant potential for high-grade gold discoveries. Niehuser stated that the company has "successfully proven its reinterpretation of the previous geologic resource model," specifically identifying high-grade gold in dropped-down structures. He further noted that drilling results, such as hole AT23WS-44C grading 3.95 g/t gold over 106.7m, validated the geologic model and suggested an opportunity for a substantial increase in the project's resources.

Niehuser emphasized the districtwide potential of the Atlanta caldera, supported by comprehensive geophysical surveys and the prioritization of high-grade targets such as the South Quartzite Ridge Target (SQRT). He remarked that ongoing developments, including road construction and resource extension drilling, position Nevada King Gold Corp. to unlock additional exploration upside.

The analysis concluded that the company's efforts could significantly expand its measured, indicated, and inferred resource estimates, contributing to the valuation model predicting an updated gold resource of 1.5 million ounces. This projection underpinned Roth Capital's maintained price target of CA$0.65 per share, reflecting confidence in Nevada King Gold's growth trajectory and operational strategy.

Ownership and Share Structure

According to Refinitiv, 36.32% of Nevada King Gold is held by management and insiders. Of this category, Collin Kettell holds 19.68% or 61.99 million shares, Michael A. Parker holds 14.28%, at 45 million shares, and Craig A. Roberts holds 1.46% or 4.6 million shares.

Institutions hold 3.62%. Rothschild & Co Asset Management Europe SCS has the largest out of this category at 2.19%, with 6.91 million shares. 

The rest is retail.

Market Watch notes that Nevada King Gold has 378.09 million shares outstanding and 228.88 million free float shares. The stock has a 52-week range of CA$0.20 and CA$0.46.