NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) announced the last batch of results from the now completed infill drill program at its Goldboro project in Nova Scotia, reported Ron Stewart, mining analyst at Red Cloud Securities, in an Aug. 21 research note.
"Given the complexity of the ore body, derisking the resource through infill drilling before a feasibility study was critical, especially as we expect Goldboro to be the first of NexGold's two projects to be developed and return cash flows to support the development of Goliath," Stewart wrote. Goliath, the company's other flagship asset, is in northwestern Ontario, Canada.
400% Upside Implied
Red Cloud maintained its CA$4 per share target price on the Canadian gold explorer-developer, trading at the time of Stewart's report at about CA$0.80 per share, the analyst noted.
The difference between these two prices suggests a potential return of 400%.
NexGold remains a Buy.
What the Results Show
The company undertook and finished a 142-hole, 26,850 meter (26,850m) drill program at Goldboro to infill certain parts of the open-pit resource, confirm continuity, and upgrade areas comprising the Inferred resource, explained Stewart.
"We consider the program to have been a success," the analyst wrote. "It has confirmed the folded nature of high-grade gold veins with low-grade halos."
The just-reported final results are for 14 holes covering 2,072m. The holes consistently hit high-grade, near-surface zones in pits and indicate possible new gold mineralized zones within the proposed open pits. Standout intercepts include:
- 18.16 grams per ton gold (18.16 g/t Au) over 2.1m, including 62 g/t Au over 0.6m: hole BR-25-597
- 6.91 g/t Au over 2.6m, including 22.1 g/t Au over 0.6m: hole BR-25-595
- 23.2 g/t Au over 0.8m: hole BR-25-598
Generally, the drill bit hit mineralization mostly where the model predicted it would be but also encountered some new vein occurrences in identified gaps. The model will be updated to reflect these.
Stewart reported that NexGold is well into the permitting process for Goldboro and recently received approval to designate the planned tailings management facility as tailings impoundment areas. NexGold anticipates receiving industrial approval of the Goldboro mine any time now and approval of its fish habitat compensation plan in H2/25.
Next Steps on Goldboro
The company plans to update the Goldboro mineral resource estimate in the next few months. The current resource is 2,600,000 ounces of Au in the Measured and Indicated category and 484,000 ounces (484 Koz) of Au in the Inferred category.
Then NexGold will update the existing 2022 feasibility study, based on the revised resource. The most recent feasibility study outlined an 11-year, open-pit mining operation producing about 100 Koz per year at an all-in sustaining cost (AISC) of US$849 per ounce (US$849/oz) Au.
Post-tax economics at US$1,600/oz Au were a CA$328 million (CA$328M) net present value discounted at 5% (NPV5%) and a 25.5% internal rate of return (IRR).
Work Happening at Goliath
At Goliath, a 25,000m infill and resource expansion drill program is underway, as is engineering optimization, both with an eye toward completing a near-term feasibility study.
A prefeasibility study of the project was done in 2023. It outlined a 13-year, open-pit and underground mining operation producing about 109 Koz per year at an AISC of US$1,037/oz Au. Using a US$1,750/oz Au price, after-tax project economics included a CA$336M NPV5% and a 25.4% IRR.
What to Watch For
In the near term, investors should watch for the updated Goldboro mineral resource estimate and the Goliath feasibility study. Permitting updates, including approvals, for both projects are expected on an ongoing basis. Ultimately, NexGold will make a construction on either Goldboro or Goliath (Red Cloud believes it will be Goldboro).
Any or all of these events could catalyze the company's stock price.
Ownership and Share Structure
Stewart reported that NexGold's ownership breaks down this way: management and insiders own 9.2%, Sprott Inc. has 6.2%, Extract Advisors holds 5.05% and Middlefield Capital Corp. has 1.43%.
NexGold has 157.5 million shares outstanding and a CA$126M market cap. The company's 52-week low and high prices are CA$0.61 and CA$0.87 per share, respectively.
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Important Disclosures:
- NexGold Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold Mining Corp.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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.
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Disclosures for Red Cloud Securities, NexGold Mining Corp., August 21, 2025
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Company Specific Disclosure Details Company Name Ticker Symbol Disclosures NexGold Mining Corp. TSXV:NEXG 3
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