In an Aug. 10 research note, Caesars Report editor Thibaut Lepouttre described NevGold Corp's (NAU:TSX.; NAUFF:OTCMKTS) plan to expand the resource at its acquired, flagship Limousine Butte gold project in Nevada and then, in Q1/22, release a resource size update.
"It should be the company's intention to push towards the 1,000,000 ounce mark in an interim resource update in the next six to nine months," Lepouttre wrote.
Already NevGold is starting with a historical resource at past-producing Limousine Butte of 292,000 ounces of 0.77 grams per ton gold (0.77 g/t) gold.
Lepouttre noted that NevGold could simply expand the existing resource size about 50–60% by lowering the cutoff grade to around 0.2 g/t, today's standard, from 0.411 g/t, the number used in 2009. Whereas this one change would greatly impact the resource and ultimate project, it would not jeopardize its economics, he added.
Also, the company is well cashed up to explore the Carlin-style Limousine Butte deposit after a June financing generated about CA$5.7 million.
Lepouttre indicated that Calgary-based NevGold intends to commence a 10,000-meter drill program at Limousine Butte as soon as it receives the necessary pending permits, likely in September.
Conducting both reverse circulation and diamond drilling, the company plans to focus initially on Resurrection Ridge, the primary area contained within the current resource. Eventually, NevGold will also drill several nearby, historically drilled targets, including Cadillac Valley and, Coffee Mug, also in the current resource, along with Ticup, Epex and Pony Express.
NevGold is "a story to keep on your radar as the resource expansion at Limousine Butte should be relatively straightforward," Lepouttre wrote.
He pointed out that NevGold's stock has performed well but should be trading above CA$0.60 per share.
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