Nutmeg Mountain currently has a 2020 historical mineral resource estimate (MRE) of 910,000 indicated ounces of gold (43.5 million tonnes (Mt) at 0.6 grams per tonne gold (g/t Au)).
Today’s release highlights a few key points, one of which is that the company will be updating the Mineral Resource Estimate (“MRE”) at Nutmeg Mountain. The targeted completion of the MRE at Nutmeg Mountain is mid-July.
- More High-Grade, Heap-Leachable Gold Intercepted from Surface: the company intercepted 80 g/t Au over 51.5 meters from surface (oxide), including 1.40 g/t Au over 11.3 meters from 9.8 meters depth (oxide) (Hole NMD0004). Assays are pending for the remaining approximately 130 meters of this hole.
- Metallurgical Testwork Has Commenced: Hole NMD0004 was drilled to commence metallurgical test work at the Project. The company has engaged McClelland Laboratories out of Sparks, Nevada. The focus of the metallurgical test work is to analyze optimization opportunities related to grinding, comminution, and recovery methods.
- Building Large, Near Surface, Mineralized Footprint: other drill results released from the 2023 drill program include 72 g/t Au over 79.3 meters from 10.4 meters depth (oxide, heap-leachable), including 2.32 g/t Au over 13.4 meters from 25.6 meters depth (oxide, heap-leachable) (Hole NMD0003), and 0.56 g/t Au over 23.9 meters from 24.1 meters depth, including 0.89 g/t Au over 11.4 meters from 25.6 meters depth with 4.33 g/t Au intercepted near the bottom of the hole (Hole NMD0001, hole was lost in mineralization) (See news release from April 13, 2023).
- Current Drill Program Update: the orientated core drilling portion of the drill program is now complete, and the program will shift to reverse circulation (RC) drilling.
- Advancing Mineral Resource Estimate (MRE): the company is advanced in completing an MRE at the Project, with targeted completion in early July.
In light of these results, CEO Brandon Bonifacio commented, "The further results from our inaugural drill program at Nutmeg Mountain continue to highlight the exceptional at-surface, high-grade oxide gold mineralization at the project. NMD0004 will be utilized for the commencement of metallurgical test work with a focus on optimization opportunities in the grinding and comminution area. We are looking forward to the remaining approximate 130 meters of assays pending from Hole NMD0004, which is at the assay lab undergoing further testwork."
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Catalyst: Updated Mineral Resource Estimate
In the latest announcement, NevGold Corp. officially disclosed its collaboration with Global Mineral Resource Services, a prominent North Vancouver-based company.
The purpose of this partnership is to update the MRE at Nutmeg Mountain, with anticipated completion in mid-July.
Ownership and Share Structure
Streetwise Ownership Overview*
Management and insiders collectively hold an impressive 30% stake.
Prominent among these insiders is Brandon Gennaro Bonifacio, who commands a notable 6.06% ownership with 4.11 million shares.
In terms of strategic investors, GoldMining Inc. holds a significant 17.6% stake, representing 12.56 million shares, while Palos Management Inc. possesses 0.89% with 0.60 million shares.
The rest is with retail investors.
NevGold Corp. reports a cash reserve of CA$2.0 million, with a monthly burn rate of CA$50k.
Furthermore, the company incurs a drilling cost of CA$300 per meter for core drilling and CA$125 per meter for reverse circulation.
According to Market Watch, the company has a market cap of CA$22.86 million and 63.5 million share outstanding.
It trades in the 52-week range between CA$0.30 and CA$0.65.
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- NevGold Corp. is an affiliate and has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NevGold Corp.
- Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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