Recent high-grade drill results at NexGold Mining’s (TSXV: NEXG; US-OTC: NXGCF) Goldlund deposit in northwestern Ontario continue to show consistent mineralization at depth that could be accessible from a potential open pit at the project.
Highlight hole GL-26-034 cut 13 metres grading 2.84 grams gold per tonne from 205 metres depth, including 8 metres at 9.76 grams gold and 7 metres grading 14.07 grams gold, NexGold reported Wednesday. Goldlund is about 40 km northeast of Dryden and 1,200 km northwest of Toronto.
“Grade tenor and thicknesses continue to build confidence that mineralization continues at depth and is consistent with previous drill results,” NexGold CEO Kevin Bullock said in a release.
“Our continued drilling progress at Goldlund further supports our objectives for this program – to infill and test the extension of mineralization in Zone 4 – which is expected to contribute to refinement of our geological model and may inform future mineral resource assessments.”
18,000 oz mined
The results advance NexGold’s effort to advance development of Goldlund, where it and the nearby Windward mine produced about 18,000 oz. of gold in the early 1980s. Goldlund hosts 16.2 million tonnes in probable reserves grading 1.19 grams gold for 621,000 contained oz., according to a 2023 prefeasibility study.
Goldlund is part of the company’s larger Goliath gold complex, which the prefeasibility study gave a post-tax net present value of $336 million and an internal rate of return of 25.4%, with initial capital costs of $335 million. The complex could produce 90,000 oz. of gold annually over a 13-year life. The study assumes a gold price of US$1,750 per ounce.
Deep mineralization
Other drill highlights include hole GL-26-032 which returned 15.5 metres at 2.23 grams gold from 123.5 metres depth, including 9.1 metres grading 1.49 grams gold; and hole GL-26-033 that cut 42.8 metres grading 0.84 gram gold from 245.7 metres depth, including 22 metres at 1.25 grams gold.
Hole GL-26-039A returned 17.1 metres at 1.51 grams gold from about 219 metres downhole, including 6.2 metres grading 2.04 grams gold.
Mineralization at Goldlund features quartz stockwork veining inside sub-vertical granodiorite sills, the company said. Zone 4 hosts broad intervals of mineralized intermediate-mafic volcanic rocks with multiple porphyry and granodiorite intrusions.
The drill results are from NexGold’s 35,000-metre drill program at Goldlund, of which 31,971 metres have been drilled. The company expects to finish the program by the end of the year.
Formed through the merger of Treasury Metals and Signal Gold in 2024, NexGold is positioning itself as a future mid-tier Canadian producer with a targeted output of more than 200,000 oz. gold annually from Goliath and its Goldboro project in Nova Scotia.
Company shares fell more than 6% to $1.52 apiece on Wednesday morning in Toronto, for a market capitalization of $391.7 million. The stock has traded in a 12-month range of $1.12 to $2.40.
