Comprehensive Gold Exploration Initiative Kicks off With 25,000-Meter Drilling Campaign
NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX) has initiated a comprehensive exploration program at its Goliath Gold Complex in northwestern Ontario. Read about the specifics about this news and the company's focus on this project.
NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX) has initiated a comprehensive exploration program at its Goliath Gold Complex in northwestern Ontario. This program includes a 25,000-meter diamond drilling campaign aimed at expanding and discovering new resources within the complex. The initial phase targets the 25-kilometer area between the Goliath and Goldlund resources, which has seen minimal drilling activity in the past.
The first 4,000 meters of drilling will focus on the Inter-lakes target, situated between the Goliath and Goldlund deposits. This region has been identified as having significant potential due to historical gold anomalies and promising geological features. Morgan Lekstrom, President of NexGold, expressed enthusiasm for the project, stating in the news release, "Starting with the very exciting Inter-lakes target and then expanding on higher grade areas at Goliath and Goldlund, this drill season will mark a new step for NexGold and its Goliath project."
This comes after yesterday's news that the company announced a significant new Relationship Agreement with the Wabigoon Lake Ojibway Nation, marking a pivotal moment in its operations. The agreement aims to compensate for historical exploration activities and enhance First Nation participation in the future Goliath Gold Complex. It includes reconciliation measures, capacity funding, a technical working group, and new opportunities for education, training, and mentorship for First Nation members. This renewed relationship underscores the company's commitment to operating on traditional lands with respect and cooperation.
Making a Gold Mine
The gold sector has recently demonstrated positive momentum, driven by various macroeconomic factors and geopolitical events. According to a July 29 article on FX Street, "a combination of supporting factors assisted the gold price to attract buyers for the second successive day." This sentiment was echoed by the article's observation that "the USD remained depressed amid the September Fed rate cut bets and acted as a tailwind to the XAU/USD." The same source noted that "geopolitical risks stemming from conflicts in the Middle East offered additional support to the safe-haven precious metal."
The gold price saw a significant rise, trading around US$2,400 per troy ounce during the European session the previous Monday, as reported by FX Street. This uptick was influenced by the U.S. Personal Consumption Expenditures (PCE) Price Index data released on Friday, which showed that inflation rose modestly in June. This data "lifted bets for an imminent start of the Federal Reserve's (Fed) rate-cutting cycle," leading to a decline in U.S. Treasury bond yields and benefiting gold prices.
Further supporting the positive outlook, The Daily Gold on July 24 highlighted that "a macro development is approaching, which, if it occurs, would be very favorable to precious metals in both nominal and real terms." They also emphasized that "the steepening is incredibly positive when Gold is in a long-term bull market or secular uptrend." This development was compared to past instances in 2001, 2007, and 2019, where such steepening proved beneficial for gold.
On July 26, Reuters reported a 1% rise in gold prices, attributing this to falling U.S. Treasury yields and optimism for an interest rate cut by the Federal Reserve in September. Fawad Razaqzada, a market analyst at Forex.com, stated, "Today's mixed-to-weaker U.S. data suggested inflationary pressures and economic activity were waning, paving the way for the Fed to cut rates twice this year." The reduction in rates lowered the opportunity cost of holding non-yielding bullion, further supporting gold prices.
Additionally, Reuters mentioned that "physical demand in India, the second-largest consumer, received a boost as the country slashed import duties on gold and silver earlier this week," leading to the highest gold premiums in India in a decade. Everett Millman, chief market analyst with Gainesville Coins, noted, "Any uptick that we see from India or China tends to have an outside effect on overall demand . . . I think the move to reduce the duty (in India) can only have a positive effect on demand."
Company Catalysts
The Phase 1 drilling program at the Goliath Gold Complex is a critical component of NexGold's strategy to enhance its resource base and discover new gold deposits.
As the company mentions in the release, the initial focus on the Inter-lakes target is based on promising historical data and recent studies. Notably, previous drill holes in the northern part of the Inter-lakes area intercepted hydrothermally altered, mineralized shear zones, which align with prospective models developed by Mira Geoscience. Additionally, high-grade gold intercepts and anomalous soil results in various parts of the target area underscore its potential.
Lekstrom highlighted the significance of this drilling campaign, noting, "This drill season will mark a new step for NexGold and its Goliath project. A new focus on exploration and showing the scale and size of this district while focusing on these discovery areas within our 65KM strike." With 3 million ounces already in the company's portfolio and multiple promising areas identified, NexGold is poised to expand its resource base significantly.
Streetwise Ownership Overview*
NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX)
*Share Structureas of 8/8/2024Source: Refinitiv & NexGold Mining Corp.The ongoing drilling campaign, with its focus on high-grade trends and new discovery areas, is expected to generate valuable data that could lead to further resource growth and potentially new discoveries. As the program progresses, additional targets will be announced alongside the released results, maintaining investor interest and momentum in NexGold's exploration efforts.
Ownership and Share Structure
The company notes that management and insiders own 3.4% of the stock.
Refinitiv reports that institutions own 15.72% of NexGold. Of that, the company reports the top holders are Extract Advisors LLC with 9.3%, and Sprott Asset Management LP with 9.9%.
Strategic investors own 6.02%. The company reports that First Mining Gold Corp. owns 4.3%, and Teck Resources owns 1.9%
The rest is retail.
NexGold has 76 million free float shares and a market cap of CA$60.882M.
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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. In addition,As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 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.