Golden Opportunity for Canadian Mining Project

NevGold (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) has news regarding their surface exploration of the Ptarmigan project. The exploration revealed significant mineralization in the unexplored parts of the project, and more mineralization held within the historically mined areas. NevGold has also given comment on interest they received related to Ptarmigan from external parties.

NevGold Corp. is focused on mineral exploration and development. It has several properties: Limousine Butte and Cedar Wash, which are both located in eastern and southeastern Nevada, and Ptarmigan in Southeast British Columbia. They also have an option on the Nutmeg Mountain Gold Project.

Exploration Results

"Gold and silver are not investments; they’re money. Gold and silver didn’t increase your wealth- your purchasing power- over these seven decades. They preserved it, which is one of money’s most important functions."

NevGold has announced the results of its 2022 surface exploration at the 93 square kilometer (km²) Ptarmigan project in southeast British Columbia. This exploration was focused on making the project drill ready and test for unidentified areas of mineralization. Brandon Bonifacio, the CEO of NevGold, "when we inherited the project as part of the public listing of the company back in 2021, it was clear the project had material value to unlock… We have supplemented the initial geological database with our 2022 field program and the project is now 'drill-ready' with a number of high quality drill targets."

NevGold reports high grade silver mineralization south of the previous drilling by roughly 140 meters. The highlights of the results included 3188 grams per ton (g/t) of silver (Ag), with 0.2% copper (Cu), 4.6% lead (Pb), and 1.4% zinc (Zn), as well as 492g/t Ag, including 0.22% Cu, and 29.4% Pb. These results were collected over 140 meters and 250 meters from the historical drill collars.

More mineralization was found through historical drilling in an area of less than 1km². The results revealed 3.65m of 2,455g/t Ag, 1.00g/t gold (Au), and 0.91% Cu, including 22,945g/t Ag, 5.75 g/t Au, and 8.24% Cu. Another drill hole found 2,315g/t Ag, 1.64 g/t Au, and 1.10% Cu over 1.16m. A third drill hole found 452g/t Ag, 0.52 g/t Au, and 0.26% Cu over 6.80m. Another found 635g/t Ag, 0.82 g/t Au, and 0.33% Cu over 3.69m. The final drill hole found 96 g/t Ag, 0.36 g/t Au, 0.20% Cu, and 3.70% Pb over 6.41m.

Derick Unger, NevGold’s VP of Exploration, said of the findings "it is exciting to identify additional surface expressions of high-grade mineralization at Ptarmigan… The recognition that there is a large trend of anomalous copper in surface samples along with the high-grade silver, lead, zinc mineralization is an exciting development that we will continue to explore."

The exploration of the site has revealed some relevant information. Surface sampling found that the copper surface anomaly located 2.3 kilometers northwest of the historical drilling extends for 9 kilometers in an area without previous drilling. The exploration also found several high grade drill targets, and NevGold has plans to target polymetallic and copper mineralization in these targets. NevGold has received interest in Ptarmigan from outside parties, and is considering strategic options. NevGold has expressed that it is open to further expressions of interest from external parties.

Why Gold?

Gold is often seen as a "safe haven" investment, a steady option when confidence in the economy is low. James Turk of Goldmoney, a precursor of The Gold Report, has stated that he believes the value of gold is more steady than oil or national currencies. He comments "Gold and silver are not investments; they’re money. Gold and silver didn’t increase your wealth- your purchasing power- over these seven decades. They preserved it, which is one of money’s most important functions."

Adrian Day of Adrian Day Asset Management has said that he strongly believes in the possibility of a short term pullback in the economy as a result of the recent banking chaos. Day’s analysis also commented on the growing interest in adding gold assets to a portfolio by organizations like Franco-Nevada Corp. The Daily Gold speculated that, despite the downturn, the value of gold may be on the rise: "if gold can break $1950-$2000 relatively soon, then the gold stocks and silver will follow. They will strongly outperform when gold breaks $2100."

Looking to the Future

NevGold has a number of short term catalysts. NevGold expects to receive the drill results from Nutmeg Mountain in Idaho between March 1^st to June 1^st of 2023. It expects to put out several press releases between those dates. In March, NevGold will transport a drill rig to Limo Butte to start Phase II of the drill program covering 5,000 meters. The company is aiming for the Limo Butte Plan of Operations permit to be approved by Q2 of 2022, and in Q4 of 2022, they expect to deliver resource estimates from Nutmeg Mountain and Limo Butte once the drilling is completed. Brandon Bonifacio reported that NevGold has established four holes in the inaugural drill program at Nutmeg Mountain in Idaho, and that assay results may come out soon.

Ownership and Share Structure

There is a total of 71,418,219 shares, 16,947,558 warrants, and 5,266,000 options for NevGold. Insiders and directors own 30% of the company, while GoldMining Inc. owns 19.9%, McEwen Mining owns 7%, and retail and institutions own 43.1% percent. GoldMining Inc. and McEwen Mining represent strategic investors.

According to NevGold, insiders contributed more than C$150k to its recent financing in December of 2022.

NevGold has C$3.3 million in the bank, and its monthly burn rate is C$50k. Its monthly drilling cost is $300 per meter for core, and $125 per meter for reverse circulation.

NevGold reports that there may be some potential sellers, particularly in retail, or some among those who participated in their December 2022 financing. They report no warrants overhang.

NevGold reports some IR firms, such as Ivan Lo with Equedia Letter or Mugglehead, Winning Media in the U.S., Paradox Partners, Insight Capital Partners, Thibaut of Caesars Report, and EuroSwiss Group. They work with influencers associated with Winning Media, and Thibaut of Caesars Report, Geordie Mark of Haywood Securities, and Ian Parkinson of Stifel GMP all provide news and analysis of the company. NevGold expects to receive coverage from Beacon Securities in Q1 of 2023.

NevGold has a market cap of C$25 million, and trades in the 52 week period between 0.30 and 0.85.

1) Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He/she or members of his/her household own securities of the following companies mentioned in the article: none. He/she or members of his/her household are paid by the following companies mentioned in this article: none. His/her company has a financial relationship with the following companies referred to in this article: none.

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