Gold Hits Keep Coming as Zone 4 Delivers Deep, High-Grade Results

1. NexGold is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000. 
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) announced initial results from its recently launched 25,000-meter diamond drilling program at the Goliath Gold Complex. The program is currently focused on the Goldlund Deposit, where eight holes totaling 2,490 meters (GL-25-001 to GL-25-008B) were completed. These holes were designed to infill Zone 4 and test down-dip continuity as part of efforts to refine the geological model and potentially upgrade mineral resource confidence.

Selected results from Zone 4 included 3.31 g/t gold over 20.00 meters in hole GL-25-003, which also returned a subinterval of 71.69 g/t gold over 0.75 meters. Hole GL-25-002 intersected 7.59 g/t gold over 9.00 meters, including 104.00 g/t gold over 0.50 meters. Additional intercepts included 3.16 g/t gold over 7.00 meters in hole GL-25-006 and 1.87 g/t gold over 10.85 meters in hole GL-25-002. Results from other drill holes included intercepts of 2.55 g/t gold over 3.90 meters in GL-25-001 and 5.11 g/t gold over 1.25 meters in GL-25-005. 

According to a company news release, "The drilling at the deposit provides a greater level of certainty in the deeper areas of the planned open pit." The company also noted that mineralization remains open along strike and at depth.

The Goldlund Deposit features multiple geological zones. While Zone 1 is characterized by quartz stockwork veining within sub-vertical granodiorite sills, Zone 4 comprises a wide interval of intermediate-mafic volcanic rocks intruded by porphyry and granodiorite. The company reported that holes GL-25-001, GL-25-002, GL-25-003, and GL-25-005 confirmed the continuity of Zone 4 and are expected to assist with future mineral resource estimates. Hole GL-25-006, located at the southwestern end of Zone 4, also returned 13.90 g/t gold over 1.00 meter within a broader 7.00-meter, 3.16 g/t gold intercept.

Reported intervals are drilled core lengths and do not represent true widths, which are estimated to range from 50% to 70% of the interval lengths. Drill collar coordinates, elevations, azimuths, and inclinations were disclosed in the release. Figure 1 provides a plan map showing the Zone 4 drill collar locations, while Figure 2 includes a cross-section illustrating gold distribution and mineralized zones.

Record Demand and Volatility Underscore Gold's Shifting Market Dynamics

In a January 27 commentary, Stewart Thomson described a growing shift from "government fiat and bonds to physical metal," highlighting increased interest from foreign creditors who "now want unencumbered gold." He stated, "An awesome bull era for the miners is ready to start now."

On January 30, Mining reported that global gold demand reached a record 5,002 tonnes in 2025, valued at US$555 billion—the first time demand has surpassed 5,000 tonnes, according to the World Gold Council. Private investment rose 84% to 2,175.3 tonnes, ETF inflows reached 802 tonnes, and bar and coin demand hit a 12-year high at 1,374.1 tonnes. Mine supply increased modestly to 3,672 tonnes, while recycling rose 3% to 1,404 tonnes. Central bank purchases declined 21% to 863.3 tonnes but remained strong by historical standards.

Shaokai Fan, head of central banks and Asia-Pacific at the World Gold Council, cited persistent inflation, geopolitical instability, and falling interest rates as key drivers behind the trend. "A lot of things happened last year," he said. "It probably felt like 10 years cramped into one."

Bloomberg reported on January 30 that gold became the second-largest reserve asset held by central banks as of March 2024, surpassing the euro. The report noted that "physical gold tends to be the most credible and reliable store of value amid extreme geopolitical events such as wars, even more so than the dollar nowadays." While price appreciation was the main factor behind the increase, Bloomberg also stated that there remains "scope for further accumulation" as de-dollarization continues.

"Goldboro Will Be the First Cab Off the Rank, With Goliath to Follow"

In his January 23  newsletter, Stewart Thomson discussed NexGold Mining Corp., referring to it as "another hot CDNX stock." He wrote, "I'm predicting they'll ‘walk the mid-tier talk.'" Thomson added, "Management looks good, and the jurisdiction (Canada) does too. So does the chart," and stated, "Blastoff is here! Note the strong buy signal on the Stochastics oscillator (14,7,7 series) at the bottom of the chart."

According to a January 27 research report from Ron Stewart of Red Cloud Securities, NexGold intended to update the mineral resource, complete a feasibility study, secure financing, and make a final investment decision for its Goldboro gold project during the year.

Stewart wrote, "Goldboro will be the first cab off the rank, with Goliath to follow." Red Cloud maintained a Buy rating on NexGold and reiterated a CA$4.30 per share target price, which included valuations for Goldboro, Goliath, and Niblack. Stewart noted that the company was trading at approximately CA$1.78 per share at the time of the report.

Stewart reported that NexGold's 2025 accomplishments included receiving all federal and provincial permits for Goldboro, completing 26,904 meters of infill drilling at that project, and carrying out a 9,084-meter drill program at Goliath.

He also noted that NexGold repaid a US$12 million debt facility, repurchased a 0.6% net smelter returns royalty, sold a 2.9% royalty for US$24 million, and closed a CA$112.5 million bought-deal equity financing.

Stewart stated that Red Cloud's model for Goldboro reflected production of 1,200,000 ounces over an 11.3-year mine life, with an after-tax net present value discounted at 5% of CA$854 million and an internal rate of return of 52.7%.

Catalysts: "Additional Targets for Drilling Later in the Program"

The company reported that mineralization in Zone 4 remains open along strike and down dip, which creates additional targets for drilling later in the program. Holes GL-25-001 through GL-25-005 are expected to support upgraded mineral resource confidence in future estimates.

The results announced on February 2, 2026 are part of NexGold's broader 25,000-meter drill campaign announced on January 28, 2026. The program is focused on the Goldlund Deposit and designed to support resource optimization efforts at the Goliath Gold Complex.

The current drill holes are primarily aimed at infilling Zone 4 and testing down-dip continuity. This includes the confirmation of near-surface mineralization extending deeper into the proposed pit area, as seen in holes GL-25-002 and GL-25-003. 

The company provided full assay intervals and drill collar locations, confirming that the holes were drilled across a range of depths and inclinations. These details support transparency in the interpretation of mineralized zones.

Ownership and Share Structure ¹

Management and insiders own 2.0% of NexGold.  Institutions and strategic investors —  including Frank Giustra, who owns 5.0% — collectively hold 66.0% of the company's shares.

NexGold has 245.6 million shares issued and outstanding and a market cap of CA$442.1 million.