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NevGold: Strong Upside with Gold Resource Growth in Idaho and Nevada

Last October, Hercules Silver Corp. (TSX.V: BIG) was trading at 20 cents and announced assays of the first deep hole drilled at its Hercules Project in Idaho, confirming a major porphyry discovery by intersecting 185 m @ 0.84% copper at 246 m depth. Its share price then soared to $1 by the end of the month and in early November, Barrick Gold Corp. (the world‘s second largest gold miner) invested $23 million in a private placement at $1.10 per unit. Hercules‘ share price then rose to as high as $1.62 and the company currently enjoys a market capitalization of more than $200 million. Despite different deposit types, the similarities between Hercules Silver Corp. and its neighbor NevGold Corp. are striking.

In 2022, NevGold Corp. announced an option agreement for the Nutmeg Mountain Gold Project from GoldMining Inc. (TSX: GOLD, current market capitalization: $219 million). Last month in January, NevGold executed the 100% acquisition, with GoldMining becoming its largest shareholder owning about 30% of the outstanding shares.

GoldMining also invested into NevGold in a private placement as the formed partnership aims to share potential benefits as NevGold conducts the “work to grow and develop the Nutmeg Mountain Project“, whereas GoldMining also stated to be “encouraged by the continued exploration success at Limousine Butte in Nevada, and the upside potential of the other assets within the NevGold portfolio“.

Similar to Hercules, NevGold not only plans continued drilling of its near-surface deposits to expand resources but also to make discoveries at depth. In contrast to the lower grade porphyry mineralization seen at the Hercules Project, NevGold targets high-grade feeder systems typically seen in low-sulphidation epithermal gold deposits.

With gold prices having marked new all-time highs recently, gold exploration and mining stocks may soon enter a strong bull market, in particular those few companies operating in favorable jurisdictions and holding resources in excess of 1 million ounces with substantial growth upside, lead by highly experienced management teams with serious “skin in the game“ and backed by prominent strategic partners and long-term shareholders.