Promising High-Grade Gold Exploration Campaigns in Nova Scotia and Ontario

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NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) reviewed its achievements from 2024 while announcing its priorities for 2025. The company, which positions itself as one of Canada's leading near-term gold developers, holds a combined 4.7 million ounces of measured and indicated gold resources and aims to produce over 200,000 ounces annually from its Goliath Gold Complex in Ontario and Goldboro Gold Project in Nova Scotia.

Key 2024 milestones included the formation of NexGold through a merger between Treasury Metals Inc. and Blackwolf Copper and Gold Ltd. Additionally, NexGold acquired Signal Gold Inc., further cementing its position as a multi-asset gold development firm. The company also secured significant agreements with First Nations communities, including a Benefits Agreement with the Assembly of Nova Scotia Mi'kmaw Chiefs for the Goldboro project and a Relationship Agreement with Wabigoon Lake Ojibway Nation for the Goliath project. These agreements aim to promote reconciliation and economic collaboration.

Operational highlights featured the completion of financing efforts that raised CA$25.2 million in 2024. NexGold also achieved permitting advancements at Goldboro, including a 20-year mineral lease and substantial progress toward key environmental authorizations. Exploration at Goliath and Goldboro revealed additional high-grade mineralization, underscoring the potential for resource expansion.

In the news release, Kevin Bullock, NexGold's President and CEO, expressed gratitude for the support received. He described 2024 as a "transformational year" that positioned the company for "significant value creation" in 2025.

Current Trends and Market Dynamics In The Gold Industry

The gold sector exhibited robust dynamics as 2025 began, reflecting both challenges and opportunities influenced by global economic and political factors. Mining.com on January 4, highlighted the critical role of investment demand in driving gold prices. Jeffrey Christian of CPM Group emphasized that "investment demand drives prices" and projected a 13% increase in the annual average gold price for 2025 to approximately US$2,730 per ounce. Christian underscored that global mine production was expected to rise by 1.5% to 88.6 million ounces, with recycled gold supply anticipated to grow by 10%. He further noted, "A range of economic and political issues seem likely to keep investors interested in adding gold to their portfolios," signaling a stable outlook for the precious metal.

Red Cloud Securities, in a research note dated December 19, maintained a "Buy (Speculative)" rating on NexGold, assigning a target price of CA$2.50.

At Ahead of the Herd, also on January 4, Adam Hamilton described gold miners entering the year as "seriously oversold, deeply undervalued, and really out of favor." Despite this sentiment, he called the situation "a fantastic contrarian setup for a big revaluation year." Hamilton noted that in 2024, gold prices surged 27.2% to an annual average of US$2,391, aligning with significant increases in mining profits. He highlighted, "The major gold miners are earning money hand-over-fist, achieving epic record profits at these awesome prevailing gold prices."

In an article from Reuters dated January 6, it was reported that gold prices at US$2,634.52 per ounce, with Nitesh Shah of WisdomTree predicting that geopolitical tensions and economic uncertainties could push prices higher. Shah stated, "We expect a US$3,050/oz price target by the end of the year," reflecting optimism for the sector despite temporary downward pressure from rising bond yields.

321Gold, on January 7, cited Mike Haigh of SoGen Bank, who viewed the current fiscal and geopolitical landscape as highly favorable for gold. While forecasting gold prices to reach US$2,900, Haigh also identified a promising outlook for miners, stating, "A range trade for gold could see miners and silver stage numerous 20% surges in 2025." The report emphasized that high gold prices combined with global economic dynamics could significantly benefit the sector.

NexGold's Operational Highlights and Growth Catalysts

According to the company's investor presentation, NexGold's 2025 plans focus on advancing its flagship projects through exploration, permitting, and pre-construction activities. A multi-phase drill campaign at Goldboro aims to support updated feasibility studies and uncover new deposits in underexplored regions, such as the Fowlers and Stewart targets. The company plans to drill up to 25,000 meters at Goldboro and continue a 25,000-meter campaign at Goliath, targeting resource expansion and new discoveries.

Feasibility studies in the first half of 2025 at Goliath and the second half of 2025 at Goldboro are expected to pave the way for financing discussions and pre-construction efforts. NexGold will also prioritize the implementation of agreements with Indigenous communities, ensuring alignment with sustainability and reconciliation goals.

Third-Party Perspectives on NexGold's Growth

Red Cloud Securities, in a research note dated December 19, maintained a "Buy (Speculative)" rating on NexGold, assigning a target price of CA$2.50, which represented a potential return of 262% based on the share price of CA$0.69 at the time. Analyst Ron Stewart emphasized the strong economics of the Goldboro deposit, noting that the Feasibility Study indicated a post-tax NPV5% of CA$328 million and an IRR of 25.5% at US$1,600/oz gold. He added, "The post-tax NPV5% and IRR increase to CA$556M and 37.5%, respectively, at US$2,400/oz Au." Stewart also saw further upside potential from resource upgrades and additional exploration at depth, stating, "Infill drilling has the potential to reduce the strip ratio by upgrading and incorporating Inferred resources, expanding the optimized pit design." These insights underscored NexGold's potential to significantly enhance its resource base and project economics.

Jay Taylor, writing in his Gold, Energy & Tech Stocks newsletter, highlighted NexGold's ongoing success in resource expansion at the Goliath Gold Complex. He pointed to the visible gold found below the current resource in the C Zone as evidence of continuity and high-grade potential at depth.

Taylor stated, "Extending what is showing to be another high-grade zone at the Goliath Deposit is just another example of the great continuity of the deposit." He underscored the importance of NexGold's 25,000-meter drill program, aimed at expanding resources and targeting areas with significant continuity and high-grade potential.

Ownership and Share Structure

The company notes management and insiders own 3.4% of NexGold.

Institutions own 17%.

Strategic investors own 37.4%. Frank Guistra owns 8.6%. On a partially diluted basis, Sprott owns 9.3%. Extract owns 10.6%. First Mining owns 2.1%. Matrix owns 1.0%, and Teck own 1.0%.

NexGold has 143 million shares and a market cap of CA$100.1 million.