High-Grade Gold Discovery Fuels Deeper Exploration
Nevada King Gold Corp. (NKGFF:OTCMKTS; NKG:TSX) has released promising results from its ongoing exploration efforts at the Atlanta Gold Mine Project. See how this is leading to optimism as expansion moves into underexplored areas of the Atlanta District.
Nevada King Gold Corp. (NKGFF:OTCMKTS; NKG:TSX) has released promising results from its ongoing exploration efforts at the Atlanta Gold Mine Project, where it intercepted high-grade gold mineralization in the Wild West Zone. The standout result from hole AT24WS-84 yielded 9.1 meters of 4.32 g/t (grams per tonne) gold and 14.2 g/t silver. This marks a significant extension of known mineralization, now 420 meters west of the current pit. This new discovery represents the furthest west that high-grade gold has been intercepted on the property. Nevada King noted that the hole bottomed in mineralization, encountering 10 meters of gold-bearing rock before the drill rig reached its maximum depth.
In response to these positive results, the company has mobilized a more powerful Schramm 685 drill rig capable of greater depth penetration to continue chasing the mineralization further westward. This Phase III drilling program is designed to explore the newly identified Wild West Target. The Wild West Zone is already defined as a 500-meter-long, 200-meter-wide mineralized area that remains open to the west, showing great potential for continued discoveries.
As part of its broader regional exploration program, Nevada King plans to mobilize a second drill rig in the coming weeks to explore 12 additional regional drill targets within the Atlanta property. The company is optimistic about the potential for further discoveries as it extends its exploration beyond the Wild West Target and into underexplored areas of the Atlanta District.
Exploration Manager Calvin R. Herron emphasized the significance of the Wild West Zone, stating in the press release, "As we continue to move westward with deeper holes into previously untested territory, we look forward to seeing what Mother Nature has in store for us."
Gold's Rising Demand Amid Geopolitical Tensions
As Goldfix reported on October 17, gold's status as a safe-haven asset grew increasingly attractive as concerns over soaring U.S. debt mounted. According to Bank of America strategists, investors and central banks had been encouraged to increase their exposure to gold. The analysts highlighted that with U.S. debt levels expected to keep rising, the supply of Treasurys faced significant risks. They further noted that interest payments as a share of GDP would increase, making gold an appealing asset for years to come. "Gold looks to be the last 'safe-haven' asset standing," they affirmed, reaffirming their target of US$3,000 an ounce by the end of next year.
Barchart stated, "The sky could be the limit for gold as commodity prices often rise to unreasonable, irrational, and illogical levels during bull markets."Also, on October 17, Barchart reflected on gold's performance, noting that by early September 2024, the precious metal had already broken through its previous highs, reaching nearly US$2,600 per ounce. By October, gold had risen to new record levels, surpassing US$2,700, driven by a combination of inflation and geopolitical factors. The article emphasized that gold's long-term trend remained bullish, with the precious metal continuing to make higher lows and higher highs throughout the year.
Barchart stated, "The sky could be the limit for gold as commodity prices often rise to unreasonable, irrational, and illogical levels during bull markets."
A day later, on October 18, Reuters reported that escalating geopolitical tensions in the Middle East, alongside uncertainties surrounding the U.S. elections, had propelled gold above the historic threshold of US$2,700 per ounce. Investors flocked to gold as a safe-haven asset amid rising risk aversion. Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, highlighted that "with the conflict intensifying particularly following Hezbollah's announcement to escalate the war with Israel investors are flocking to gold." Additionally, the anticipation of looser monetary policies further fueled the rally, with Citi analysts forecasting gold prices to reach US$3,000 per ounce over the next 6-12 months.
Nevada King's Catalysts
According to the company's 2024 investor presentation, Nevada King is focused on advancing the high-grade oxide gold discovery at the Atlanta Gold Mine.
The ongoing Phase III drill program is expected to further expand the Wild West Zone and identify additional high-grade zones across the 5,166-hectare property. The Schramm 685 drill rig, mobilized to reach greater depths, is targeting extensions of mineralization in previously unexplored areas.
As stated in the presentation, Nevada King's goal is to demonstrate multi-million-ounce potential at the Atlanta Project by expanding its resource base and accelerating regional exploration.
Nevada King Analysis
On October 17, Mike Niehuser from Roth MKM reiterated a "Buy" rating on Nevada King Gold with a price target of CA$0.65 per share. Niehuser highlighted that the company's progress at the Atlanta Gold Project, particularly the identification of 15 regional targets, had the potential to lead to additional discoveries. He also pointed out that Nevada King's reinterpretation of the geologic model could drive further success with its planned Phase III drill program in 2025.
On October 17, Mike Niehuser from Roth MKM reiterated a "Buy" rating on Nevada King Gold with a price target of CA$0.65 per share.Niehuser said, "We believe the SQRT may have the greatest potential for significant discovery," emphasizing the promising characteristics of the South Quartzite Ridge Target (SQRT) as a gold-enriched area with high potential.
Roth MKM also underlined that Nevada King Gold's drilling could significantly increase its current gold resource estimate, projecting that it might reach 1.5 million ounces of gold. Niehuser added, "We maintain a Buy rating and a price target of CA$0.65 per share," citing confidence in the company's potential for further exploration success and stock price appreciation.
Streetwise Ownership Overview*
Nevada King Gold Corp. (NKGFF:OTCMKTS;NKG:TSX)
*Share Structureas of 8/14/2024Source: RefinitivThe firm also noted that the company's valuation could see a positive rerating as exploration progresses, with Niehuser stating that Nevada King was preparing to explore "the balance of the Atlanta Caldera," which could lead to significant rerating opportunities if the additional discoveries materialized. This positive outlook from Roth MKM is consistent with broader sentiment around Nevada King's strategy and execution in the mining sector. The absence of debt on the company's balance sheet further supports the bullish stance from analysts, who believe the company is well-positioned to capitalize on its promising exploration targets.
Ownership and Share Structure
According to Refinitiv, 36.32% of Nevada King Gold is held by management and insiders. Of this category, Collin Kettell holds 19.68% or 61.99 million shares, Michael A. Parker holds 14.28%, at 45 million shares, and Craig A. Roberts holds 1.46% or 4.6 million shares.
Institutions hold 3.62%. Rothschild & Co Asset Management Europe SCS has the largest out of this category at 2.19%, with 6.91 million shares.
The rest is retail.
Market Watch notes that Nevada King Gold has 343.48 million shares outstanding and 248.81 million free float shares. The stock has a 52-week range of CA$0.20 and CA$0.48.
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