Gold Miner Unlocks Massive Goldboro Project in Nova Scotia

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NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) has received official cabinet approval for a Crown land lease and license related to its Goldboro gold project in Nova Scotia. This marks a pivotal step in the permitting process for the proposed open-pit mine, enabling the company to move forward with potential final site development and associated infrastructure.

The land lease covers 779 hectares, and the license extends over an additional 97 hectares of Crown land. These approvals grant NexGold the legal authority to build and operate surface infrastructure, including ore processing facilities, tailings and waste rock storage, and overburden management systems. Kevin Bullock, CEO of NexGold, stated in a news release that this development is "a significant project milestone and a reflection of NexGold's positive working relationship with the government of Nova Scotia."

The Goldboro project's strategic importance has been underscored by the provincial government's decision to add gold to its strategic minerals list. According to Nova Scotia's Minister of Natural Resources, Tory Rushton in the press release, "Gold is a strategic mineral with great potential to attract investors and be an economic driver for Nova Scotia." He noted the project is expected to create over 700 jobs and contribute CA$2.1 billion to the provincial economy over its lifetime.

This announcement follows a series of permitting milestones, including environmental assessments and mineral leases, which have laid the groundwork for mine construction. The newly granted lease and license are valid for 20 years and renewable, giving NexGold long-term control over land use for mineral development. Final site surveys and the appraisal process are still ongoing, and the company has committed to meeting all remaining conditions outlined by the provincial government.

Gold Sector Update: Safe-Haven Momentum Drives Investor Attention

Recent developments across global financial and geopolitical arenas have intensified focus on the gold sector, reinforcing the metal's role as a defensive asset amid heightened uncertainty. According to Kitco Media on May 21, gold futures logged a three-day rally driven by increasing geopolitical tensions in the Middle East. The most active June contract rose to CA3,319.10, adding nearly US$98 across Monday through Wednesday. This surge was attributed to new U.S. intelligence indicating Israel may be preparing for potential strikes on Iranian nuclear facilities, with Kitco noting that "gold traditionally serves as a safe-haven asset during periods of geopolitical uncertainty."

On May 22, FX Empire reported that gold climbed to US$3,345 in Asian trading, marking a near two-week high. The move followed the downgrade of the U.S. sovereign credit rating from Aaa to Aa1 by Moody's, citing long-term fiscal pressures. Analysts linked this to a spike in safe-haven demand. Arslan Ali wrote, "With growing uncertainty around U.S. fiscal policy and weakening macro indicators, safe-haven flows are likely to persist." The article also cited weak Treasury auctions and rising expectations for Federal Reserve rate cuts, both of which pressured the U.S. dollar and further buoyed gold and silver prices.

That same day, Stockhead observed that gold and resource stocks were among the few gainers on the ASX despite an overall market dip. The ASX All Ordinaries Gold index rose 3.31% following a 5% increase the previous day. The outlet explained that "as uncertainty climbs, so does gold," adding that the resources sector was the only one in positive territory, reflecting how investor risk aversion supported commodity equities amid broader market weakness.

Bloomberg, in a May 23 update, reinforced this trend, stating that gold was "one of the biggest beneficiaries" of rising tariffs and related volatility in U.S. equities. The report highlighted a broader market shift into traditional havens like gold, the yen, and the Swiss franc, while high-beta stocks turned sharply lower ahead of market open.

Path Forward: Strategic Scale and Project Milestones

With the land lease and licence in place, NexGold is positioning Goldboro as a near-term producer alongside its flagship Goliath Gold Complex. According to the company's May 2025 investor presentation, the Goldboro Feasibility Study outlines an initial 10.9-year open-pit operation with average annual gold production of 100,000 ounces. The project carries a post-tax net present value (NPV) of CA$328 million and a 25.5% internal rate of return (IRR) at a base gold price of US$1,600 per ounce. Initial capital costs are estimated at CA$271 million (based on contract open pit mining).  NexGold plans on updating its Feasibility Study by the end of the year, including converting to an owner-operated fleet and updating costs and long-term gold prices. 

NexGold's phased development strategy aims to begin with open-pit mining while advancing plans for potential future underground development starting in year six. The company has designed the infrastructure — including tailings storage, water management, and on-site accommodations, to be contained within a single watershed, a move intended to streamline environmental permitting and reduce impacts.

Stewart maintained a "Buy (Speculative)" rating and a target price of CA$4.00 per share, based on a discounted cash flow valuation of NexGold's Goldboro and Goliath projects.

Drilling programs at Goldboro continue to identify high-grade intercepts, such as 26.09 grams per tonne (g/t) gold over 8.9 meters and 130.70 g/t over 0.5 meters, supporting further mineral resource growth. The company has also highlighted regional expansion potential through surveys across the Goldboro Trend, which extends more than 28 kilometers and includes multiple high-priority exploration targets.

Alongside Goldboro, NexGold's Goliath Gold Complex in Ontario features a 13-year life-of-mine plan with annual average gold production of over 100,000 ounces for the first nine years. At a base gold price of CA$1,750 per ounce, the project carries a CA$336 million NPV and 25.4% IRR, with a payback period of 2.8 years.

NexGold's pro forma portfolio now includes five development and exploration-stage projects across Canada and the U.S., a combined 2.4 million ounces of gold equivalent in estimated future production, and a market capitalization of approximately C$119.8 million. With both Goliath and Goldboro nearing full permitting and backed by substantial Pre-Feasibility and Feasibility study data, the company is building toward the execution of a multi-asset growth strategy in stable jurisdictions. 

NexGold Targets Lower Costs and Smaller Footprint in Upcoming Feasibility Study

In a March 15 update for J Taylor's Gold, Energy & Tech Stocks, Jay Taylor reported that NexGold Mining Corp. is making steady progress on its feasibility study (FS), with a focus on cost efficiency and minimizing environmental impact. The FS, being prepared in compliance with NI 43-101 standards, remains on schedule for completion in the second quarter of 2025.

NexGold CEO Kevin Bullock stated that the FS would incorporate insights from community consultations and is being designed to reduce both initial and sustaining capital costs. Planned revisions are expected to "decrease the footprint of the Tailings Storage Facility (TSF) and overall project infrastructure," Bullock said, with the possibility of "an earlier closure of the TSF and Waste Rock Storage Facility." This could reduce the company's long-term operational and financial assurance commitments starting in Year 4 of the mine's life.

Taylor highlighted NexGold's ongoing collaboration with a team of engineering and environmental consultants, including Ausenco, WSP, SLR Consulting Canada Ltd., Minnow Environmental Inc., RockEng, and SRK. These partners have supported a revised site layout aimed at improving the project's economic profile while upholding strong environmental standards. The finalized feasibility study is expected to provide full details on these optimizations.

In a May 20 report, Ron Stewart of Red Cloud Securities assessed NexGold's recent drilling results at the Goldboro project as "slightly positive," highlighting that the ongoing 25,000-meter diamond drill program confirmed gold mineralization in broader and previously unrecognized zones. According to Stewart, these results "should bolster the size of the Goldboro resource in a future MRE update" and could enhance the upcoming feasibility study.

He cited notable intercepts including 1.86 g/t gold over 10.9 meters, with 7.38 g/t over 0.6 meters, and 1.03 g/t over 18.9 meters, with 19.45 g/t over 0.8 meters. Stewart noted that approximately 17,000 meters had been drilled to date, with completion expected in the second quarter of 2025. He added that the current resource includes 21.6 million tonnes at 3.72 g/t gold for 2.6 million ounces in the measured and indicated category, and 3.2 million tonnes at 4.73 g/t gold for roughly 0.5 million ounces inferred.

Stewart maintained a "Buy (Speculative)" rating and a target price of CA$4.00 per share, based on a discounted cash flow valuation of NexGold's Goldboro and Goliath projects.

Ownership and Share Structure

The company notes that management and insiders own 2.7% of NexGold.  

Institutions own 26.5%.  

Strategic investors own 31.1%. Frank Guistra owns 7.0%, Sprott owns 6.3%. Extract owns 7.8%. First Mining owns 1.8%. Matrix owns 0.9%, and Teck owns 0.9%.   

NexGold had 157.6 million shares and a market cap of CA$119.8 million, following the closing of its recent C$10 million bought deal private placement financing.