Optimized Tailings Design in Ontario Gold Study Cuts Costs, Exceeds Projections

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2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold Mining Corp. 
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NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) has announced progress on the Feasibility Study for its Goliath Gold Complex (GGC) in northwestern Ontario, incorporating design optimizations that could reduce the project's footprint and associated costs. The study, being prepared in accordance with National Instrument 43-101 standards, is expected to be completed in the second quarter of 2025.

The company has focused on refining its tailings management strategy with engineering partners Ausenco, WSP, SLR Consulting Canada Ltd., Minnow Environmental Inc., RockEng, and SRK. The adjustments are expected to minimize capital and operating costs, improve water management, and accelerate reclamation efforts. According to NexGold President and CEO Kevin Bullock in the press release, the changes could lead to "a reduction in the footprint for the Tailings Storage Facility (TSF) and the overall development footprint for the Project."

In addition to potentially lowering initial and sustaining capital costs, the optimizations may allow for the earlier closure of the TSF and Waste Rock Storage Facility, which could reduce overall operating and financial assurance requirements from Year 4 onwards. The company also noted that these modifications might eliminate the need for a Schedule 2 amendment under the Metal and Diamond Mining Effluent Regulations (MDMER), further streamlining permitting requirements.

The environmental improvements align with commitments outlined in the Goliath Environmental Assessment, integrating feedback from community engagement efforts. The company aims to enhance sustainability by refining water management systems to reduce effluent discharges and incorporating progressive reclamation into the mine plan.

NexGold also announced the appointment of Clinton Swemmer as Vice-President of Projects. Swemmer, a professional engineer with more than 25 years of experience in project delivery, previously held leadership positions at Metaux Torngat Metals Ltd., Cerrado Gold, and Vanadium One Iron Ore.

Gold Holds Strong as Trade Tensions and Safe-Haven Demand Fuel Rally

Gold prices have remained elevated amid ongoing global trade tensions and investor demand for safe-haven assets. Reporting on February 24, US Global Investors noted that gold had surged to an all-time high of US$2,940 per ounce, pushing its market capitalization above US$20 trillion. The firm attributed the price movement to increasing trade tensions between the U.S. and Europe, as well as speculation over a potential revaluation of U.S. gold reserves.

Frank Holmes, the report's author, noted that "if the audit confirms the reserves — which I believe it will — it could boost confidence in the U.S. government's finances. Conversely, if discrepancies are found, it could send shockwaves through global markets, adding further momentum to gold prices."

The analysts noted that these conditions could benefit well-positioned gold producers, including NexGold Mining Corp.

On February 26, Kitco reported that gold futures had stabilized following a US$40 price decline, with the most active April contract trading at US$2,933.80 per ounce. The publication pointed to President Trump's trade policies as a key driver of the recent rally, stating that "expectations that Trump will proceed with his plan to impose import tariffs on goods from Canada and Mexico beginning March 4 continue to bolster gold prices." The report also noted concerns that these tariffs could increase consumer prices and inflation, further reinforcing gold's appeal as a hedge.

In a March 5 article, Reuters reported that gold prices remained above US$2,900 per ounce, despite a modest decline of 0.1% to US$2,913.99. The publication linked gold's resilience to investor caution ahead of the release of U.S. payroll data and noted that concerns over escalating tariffs continued to support demand. Peter Grant, vice president and senior metals strategist at Zaner Metals, stated, "There's still buying interest out there now ... there's going to be some measure of caution ahead of Friday's (payrolls data), but the underlying trend remains favorable." The report also noted that since the beginning of the year, gold had reached 11 record highs, fueled in part by trade war uncertainties.

On March 11, Kitco reported that gold surged as investors sought safe-haven assets amid escalating trade tensions. Gold futures rose US$23.60 (0.81%) to US$2,923.10 for the most active April contract as of 3:55 pm EST, driven by concerns over President Trump's tariff policies. The administration's announcement to double tariffs on Canadian metals to 50%, set to take effect the following day, heightened market uncertainty. Analysts noted that these escalating measures had "strengthened genuine concerns about a potential U.S. economic contraction." A weaker dollar further supported gold's gains, with the dollar index falling 0.52% to 103.355, its lowest level since November 2024. Despite a slight rebound in U.S. equities, with the Dow Jones Industrial Average dropping 1.1% to 41,433.48, gold continued to attract investors seeking stability. While still below its record closing price of US$2,963.20 reached on February 24, gold's renewed momentum positioned it for potential new highs as uncertainty in global markets persisted.

Refining the Goliath Gold Complex: NexGold's Path to Stronger Economics

The Goliath Gold Complex, which comprises the Goliath, Goldlund, and Miller deposits, remains central to NexGold's long-term growth strategy. The company's investor presentation highlights several key factors supporting the project's potential economic viability.

The most recent prefeasibility study, completed in March 2023, estimated an after-tax net present value (NPV) of US$252 million at a 5% discount rate and an internal rate of return (IRR) of 25.4%, based on a gold price assumption of US$1,750 per ounce. The study projected a mine life of 13 years, with an average annual production of 91,000 gold equivalent ounces at an all-in sustaining cost (AISC) of US$1,072 per ounce.

Further refinements to the mine plan could enhance these metrics. NexGold believes that optimizing the TSF surface area could reduce its footprint by up to 50%, potentially eliminating the need for the South Waste Rock Storage Area outlined in the prefeasibility study. In addition to reducing construction requirements, these changes may lower upfront capital expenditures and improve overall project economics.

The company's financial position, supported by a pro forma cash balance of approximately US$18.7 million as of September 30, 2024, provides a foundation for advancing the project through the final stages of feasibility and development planning.

Third-Party Expert Analysis on NexGold Mining Corp.

On January 7, analysts at Red Cloud Securities, including David A. Talbot, Ron Stewart, Taylor Combaluzier, Timothy Lee, and Alina Islam, provided an updated outlook on the gold sector, citing strong market fundamentals. They attributed rising gold prices to sustained central bank purchases, shifts in monetary policy, and geopolitical uncertainty, leading them to raise their 2025 gold price forecast to US$2,500 per ounce from the previous US$2,400 per ounce. The analysts noted that these conditions could benefit well-positioned gold producers, including NexGold Mining Corp., as it advances its Goliath Gold Complex in Ontario. Additionally, Red Cloud adjusted its exchange rate assumptions, lowering its USD to CAD forecast, which could further enhance the value of Canadian gold producers when converted to U.S. dollars.

On February 26, Jay Taylor, publisher of J Taylor's Gold, Energy & Tech Stocks newsletter, highlighted NexGold Mining Corp.'s near-term production potential at its Goliath and Goldboro projects. At Goliath, a prefeasibility study estimated an after-tax net present value (NPV) of CA$625 million at a 5% discount rate and an internal rate of return (IRR) of 41.1%, based on a gold price of US$2,150 per ounce. The project was expected to produce 116,000 ounces annually over the first seven years of a 13-year mine life.

At Goldboro, NexGold outlined an open-pit and underground resource of 2.58 million measured and indicated ounces grading 3.71 g/t. A feasibility study projected an after-tax NPV of CA$328 million at a 5% discount rate, with an IRR of 25.5%. The mine was expected to produce 100,000 ounces of gold per year at a cash cost of US$773 per ounce and an all-in-sustaining cost (AISC) of US$849 per ounce.

Ownership and Share Structure

The company notes management and insiders own 2.7% of NexGold. 

Institutions own 22.5%. 

Strategic investors own 35.7%. Frank Guistra owns 8.6% on a partially diluted basis. On a partially diluted basis, Sprott owns 9.3%. Extract owns 10.6%. First Mining owns 2.1%. Matrix owns 1.0%, and Teck owns 1.0%. 

NexGold has 143.5 million shares and a market cap of CA$100.1 million.