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NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) has released initial results from its ongoing 25,000-metre diamond drilling campaign at the Goldboro Gold Project in Nova Scotia, aimed at upgrading resource classifications and refining its geological model. With approximately 22,000 metres drilled as of early June 2025, the company expects to complete the program by the end of the second quarter.

The program has focused on infill drilling of specific areas in the proposed western open pit to improve geological and grade continuity, primarily targeting the Inferred and Indicated Mineral Resource categories. Assay results for nine holes (BR-25-466 to BR-25-472 and BR-25-474 to BR-25-475) confirmed gold mineralization in areas that align with the company’s existing resource model. Notably, gold was also encountered outside of the modeled zones, including in the hanging wall, indicating potential for resource expansion.

Among the key intersections, hole BR-25-475 returned 11.87 grams per tonne (g/t) gold over 6.1 metres, including a high-grade sample of 67.84 g/t gold over 1.0 metre. Hole BR-25-469 intersected 3.77 g/t gold over 9.1 metres, including 29.50 g/t over 1.0 metre, while BR-25-468 returned 2.11 g/t over 12.3 metres. These results continue to support the geological continuity and gold grades found in previous drill programs.

President and CEO Kevin Bullock stated in the announcement, “We are extremely pleased with the early results from our ongoing 25,000-metre infill drill program at Goldboro and anticipate a steady flow of information from the program as results continue to roll in.” He added that the data support the existing mineral resource model and will help “further de-risk and refine the deposit model going forward.”

Samples were processed by Eastern Analytical Ltd. and analyzed by fire assay. Additional metallics re-analysis may be conducted for samples above 0.5 g/t gold, and quality control procedures included blanks, certified standards, and check assays.

NexGold continues to advance both the Goldboro and Goliath Gold Complex projects as part of its broader portfolio, which also includes assets in Ontario and Alaska.

Market Forces Signal Supportive Backdrop for Gold Projects

Recent developments in the gold market suggest a potentially favorable environment for advanced-stage assets like the Dugbe Gold Project. On May 26, market commentator John Rubino observed that while gold prices had reached new highs, participation in gold-focused equities by institutional investors remained muted compared to past bull markets. Still, Rubino highlighted signs of growing interest, citing increased demand in China and a notable rise in retail activity in the United States. At Costco, for example, strong demand for physical gold prompted the company to tighten purchase limits, with 1-ounce bars selling for as much as US$3,279.99.

An analysis published on May 27 by Goldfinger Capital pointed to a rotation of capital into smaller gold producers, some of which have recently outperformed the metal itself. The movement was linked to macroeconomic conditions, including a weaker US dollar and inflation expectations. On June 2, Reuters reported that geopolitical tensions and risk-averse investor sentiment contributed to further gains in gold prices, with spot gold reaching US$3,344.49 per ounce. UBS analyst Giovanni Staunovo attributed the strength to “rising geopolitical tensions” and a broad “risk-off sentiment,” both of which have supported safe-haven flows into the sector.

Central bank activity has also continued to underpin the market. A June 3 report from Bloomberg noted that official sector gold purchases remain elevated, with Goldman Sachs estimating monthly acquisitions of approximately 80 metric tons, valued at about US$8.5 billion at current prices. While much of this buying goes unreported, trade data points to China as a key participant, with transactions often routed through Switzerland. The sustained pace of accumulation underscores continued support from central banks, even as gold trades near record levels.

NexGold Advances Feasibility Work with Focus on Cost and Environmental Efficiency

NexGold Mining Corp. is progressing toward the completion of its updated feasibility study (FS) for the Goldboro Gold Project, with a targeted delivery in the second quarter of 2025. In a March 15 update for J Taylor’s Gold, Energy & Tech Stocks, Jay Taylor reported that the company is prioritizing cost reduction and a reduced environmental footprint as part of its development strategy. The FS is being prepared in accordance with NI 43-101 standards.

CEO Kevin Bullock stated that the study will reflect feedback from community engagement and incorporate modifications aimed at reducing both capital expenditures and long-term liabilities. “We expect to decrease the footprint of the Tailings Storage Facility (TSF) and overall project infrastructure,” Bullock said, noting that these changes could also enable an earlier closure of both the TSF and Waste Rock Storage Facility, beginning as early as Year 4 of operations. This could reduce NexGold’s future financial assurance obligations related to site rehabilitation.

Taylor emphasized the company’s collaboration with a group of engineering and environmental consultants, including Ausenco, WSP, SLR Consulting Canada Ltd., Minnow Environmental Inc., RockEng, and SRK. This team has supported a revised site layout that is expected to improve the project’s economic and environmental profile. The full scope of these revisions will be detailed in the finalized feasibility study.

Additional momentum has come from drilling activity at Goldboro. In a May 20 research note, Red Cloud Securities analyst Ron Stewart described NexGold’s recent drill results as “slightly positive,” citing broad mineralized zones in previously underexplored areas. He suggested that these findings could support an expanded mineral resource estimate and potentially strengthen the forthcoming feasibility study. Stewart referenced intercepts including 1.86 grams per tonne (g/t) gold over 10.9 meters, with a subinterval of 7.38 g/t over 0.6 meters, and 1.03 g/t over 18.9 meters, including 19.45 g/t over 0.8 meters.

Stewart noted that approximately 17,000 meters of the planned 25,000-meter drill program had been completed as of mid-May, with the remainder expected in the current quarter. The existing Goldboro 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 approximately 0.5 million ounces inferred.

Red Cloud maintained a “Buy (Speculative)” rating on NexGold, with a target price of CA$4.00 per share. The valuation is based on a discounted cash flow model for the company’s Goldboro and Goliath projects.

Strategic Developments on the Horizon for NexGold

As NexGold’s infill drill program nears completion, the company is preparing for a Mineral Resource and Feasibility Study update at Goldboro, a project already backed by a 2022 Feasibility Study outlining an after-tax net present value (NPV) of US$328 million at a gold price assumption of US$1,600 per ounce. The Goldboro plan includes an 11-year open pit operation with average annual production of 100,000 ounces of gold and all-in sustaining costs (AISC) of US$849 per ounce.

Importantly, the feasibility framework at Goldboro allows for a phased approach, beginning with open pit mining and transitioning to underground development starting in year six. The company has secured both Environmental Assessment approval and a mineral lease for the project. Infrastructure planning includes a CIP process plant, fully lined tailings facility, and on-site accommodations, all consolidated in a single watershed to streamline permitting.

The Goldboro project also shows strong leverage to higher gold prices. For example, the after-tax NPV rises to over US$556 million at a US$1,920 per ounce gold price. Additionally, NexGold’s exploration activities have extended mineralization over 3.4 kilometers of strike and up to 550 metres in depth, with further targets identified west of the existing resource.

Combined with the Goliath Gold Complex in Ontario, which reported a post-tax NPV of US$336 million and a 25.4% internal rate of return (IRR) in its 2023 Pre-Feasibility Study, NexGold is positioning itself as one of Canada’s next multi-asset gold developers with potential production from two permitted sites.

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.