Drilling Expands Gold Potential Beyond Initial Estimates in Ontario

1. 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.
2. 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. 
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NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) has initiated the second phase of its diamond drilling program at the Goliath Gold Complex in Ontario. This phase, comprising up to 13,000 meters of drilling, builds upon the initial drilling phase as part of the broader 25,000-meter exploration initiative launched in August 2024. The objective is to expand mineral resources beyond the existing estimates and explore new zones with high-grade potential.

The program will target areas outside the current Goliath Mineral Resource, with the potential to extend the open-pit mine life or support future underground development. Additional drilling will focus on high-grade plunging shoots at the Goliath Deposit and step-out drilling two kilometers southwest of the Goldlund Deposit. The company is also conducting geophysical and geochemical surveys to identify new exploration targets across its 330-square-kilometer property.

"As we advance the Feasibility Study, engage with First Nations, and progress with permitting activities at Goliath, we have also prioritized Mineral Resource expansion and the identification of new gold discoveries in underexplored areas," said Kevin Bullock, President and CEO of NexGold in the company's news release. "The goal of the exploration program is to demonstrate the potential scale and size of the district within 65 kilometers of strike potential."

The Goliath Gold Complex, which includes the Goliath, Goldlund, and Miller deposits, has a measured and indicated resource of 2.1 million ounces of gold and an inferred resource of 0.8 million ounces. The project's prefeasibility study (PFS), released in 2023, outlined a 13-year mine life with an average annual production of approximately 91,000 ounces of gold equivalent. The study estimated an after-tax net present value (NPV) of US$336 million at a 5% discount rate and an internal rate of return (IRR) of 25.4%, based on a gold price assumption of US$1,750 per ounce.

Gold Sector Gains Momentum Amid Rising Prices and Strong Demand

In a January 22 report, Robert Sinn of Goldfinger Capital noted that gold was approaching new all-time highs in U.S. dollar terms despite investor disinterest. He observed that while gold miners had underperformed in 2024, certain stocks had more than doubled in value, particularly those with "impactful news flow" and key valuation inflection points. He highlighted that the profitability outlook for gold miners had never been better, stating, "Gold miner margins are fat, and they've been getting fatter as gold continues to rise."

The analysts emphasized that these market conditions could benefit well-positioned companies like NexGold Mining Corp., particularly as it advances its Goliath Gold Complex in Ontario. 

Barry FitzGerald of Stockhead reported on January 24 that the soaring Australian gold price had substantially increased valuations in the sector. He pointed out that Antipa Minerals' Minyari Dome gold project saw its projected net present value (NPV) jump from AU$598 million to AU$1.2 billion as gold prices approached AU$4,400 per ounce. He noted that the sector was gaining market recognition, with increased trading volumes and investor interest.

On January 28, Stewart Thomson of 321 Gold described recent gold price movements as part of a normal technical pullback following a high of US$2,790 per ounce. He stated that short-term market fluctuations were expected due to upcoming economic events, including the Federal Reserve meeting, U.S. GDP report, and Indian budget announcement. He also noted that the outlook for gold remained strong, citing speculation about potential gold revaluation policies under new U.S. Treasury Secretary Scott Bessent.

Most recently, on January 30, Dominic Frisby of the Flying Frisbee highlighted that hundreds of tonnes of gold had been moved to the United States ahead of potential trade tariffs. He reported that physical gold shortages had emerged in London, leading to long wait times for delivery. He stated, "Gold's price has been rising relentlessly since November 2022," with prices approaching US$2,800 per ounce in early 2025. He attributed the price increase largely to central bank purchases, particularly from China, which had acquired over 1,050 tonnes of gold since 2022.

NexGold Advances Goliath Gold Complex Toward Development

NexGold's ongoing exploration and development efforts at the Goliath Gold Complex align with its broader strategy to establish itself as a leading gold producer in Canada. According to the company's latest investor presentation, the project benefits from strong infrastructure, including proximity to major highways, rail, and hydroelectric power.

The company's prefeasibility study has already demonstrated robust project economics, with anticipated initial capital costs of US$335 million and a payback period of 2.1 years. Exploration success in Phase 2 drilling could lead to an increase in the overall mineral resource estimate, further enhancing the project's economic viability.

In addition to exploration, NexGold is advancing permitting and community engagement initiatives, particularly with First Nations groups. The company has secured a federal environmental assessment approval for Goliath, positioning it favorably for future permitting milestones.

With two near-term development projects — Goliath in Ontario and Goldboro in Nova Scotia — NexGold continues to focus on value creation through exploration, permitting, and development. As drilling results from Phase 2 become available, the company may provide further updates on resource expansion and potential impacts on mine planning.

Ownership and Share Structure

The company notes management and insiders own 3.1% of NexGold. 

Institutions own 22.5%. 

Strategic investors own 35.7%. Frank Guistra owns 8.6% on a partially diluted basis. On a partially diluted basis, Sprott owns 9.3%. Extract owns 10.6%. First Mining owns 2.1%. Matrix owns 1.0%, and Teck owns 1.0%. 

NexGold has 143.5 million shares and a market cap of CA$100.1 million.