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Gold Stock Now Has a Copper Discovery Close to Hercules
Contributed Opinion

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Upon the news that NevGold Corp. is now a copper exploration company, as well as a gold one, Technical Analyst Clive Maund reviews the company's 7-month chart to explain why he believes it is an Immediate Strong Buy.

Further to the article posted about NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) on the first of the month, setting out why it is most attractive for investors at this juncture based on its existing portfolio of primarily gold properties and the outlook for the metals sector, the positive news has emerged this morning that the company has organically staked approximately 4,900 acres (approximately 20 square kilometers, or 2,000 hectares) of mineral claims in the emerging Hercules Copper District of southwestern Idaho which means that it is now a copper exploration company too.


The following chart shows what happened to Hercules stock after it made the big copper discovery not far away from Nevgold’s new ground last Fall.

Hercules Silver has a market cap of CA$193 million even after its recent heavy correction, whereas NevGold has a market cap of only CA$35.7 million, so you ought to be able to grasp the potential for NevGold stock if they make a big copper find at Zeus as looks likely — and this is without factoring in their other worthwhile gold properties like Nutmeg Mountain. Is the penny starting to drop yet?

NevGold has named this area the Zeus Copper Project. Zeus is located approximately 20 kilometers southwest of the Hercules Silver's (BADEF:OTCMKTS;BIG:TSXV) copper porphyry discovery. Subsequent to the Hercules porphyry discovery, Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) invested approximately US$30 million for an approximate 15% equity stake in Hercules, which should give you an idea of the potential of this new Nevgold property.

Giving the project the name Zeus is a smart move by NevGold because, in Greek mythology, Zeus was the father of Hercules, which implies that this project is the "Big Daddy" of Hercules Silver's big copper discovery and, of course, if it really is, then we can presume it will be found to have a lot more copper possibly even than that. Due to Nevgold owning the Nutmeg Mountain project in Idaho not far to the south, the company already had extensive knowledge of the local geology and was able to take advantage of this knowledge to rapidly stake some of the most prospective ground in the area and whilst doing so, its geologists encountered strong evidence of copper mineralization in many places.

The following map shows the location of the Zeus property in the Hercules Copper Trend and where it sits in relation to Hercules Silver's two properties in the area with its big copper find some 20 kms to the northeast. In addition, it shows that Nevgold's Nutmeg Mountain project is not all that far away to the southeast, which is why Nevgold's geologists already had a good understanding of the local geology before they started staking, which clearly stood them in good stead.

The following more detailed map shows how Hercules Silver's more southwesterly property is enclosed by Nevgold's newly staked Zeus property.

The Zeus project clearly has huge discovery potential and whatever value it generates will come on top of the company's other worthwhile projects in Idaho and Nevada, as already described in the earlier article, making the company and its stock even more attractive for investors.

Here is Nevgold's latest chart for the close of trade on April 3.

And here is the latest copper chart. In tandem with metals generally and especially gold and silver, copper is now starting a major bullmarket growth phase which will make the Zeus project even more profitable if it finds major reserves as expected.

NevGold, therefore, continues to be rated as an Immediate Strong Buy for all timeframes.

NevGold's website.

NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) closed at CA$0.38, $0.286 on April 3, 2024.

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Important Disclosures:

  1. NevGold Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000. For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee.
  2. 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. and Barrick Gold Corp.
  3. Author Certification and Compensation: [Clive Maund of] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
  4. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
  5.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here. Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.

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