NexGold Reports High-Grade Gold Results at Ontario Deposit

NexGold Mining announced new high-grade gold drill results from its Goldlund deposit in northwestern Ontario, including 7 meters grading 14.07 grams gold per tonne.

Highlight hole GL-26-034 cut 13 meters grading 2.84 grams gold from 205 meters depth. This section included 8 meters at 9.76 grams gold. The company reported consistent mineralization continues at depth.

NexGold CEO Kevin Bullock said these results build confidence in the mineralization’s continuity. The drilling supports efforts to define Zone 4 and refine geological models. Another hole, GL-26-032, returned 15.5 meters at 2.23 grams gold from 123.5 meters.

The Goldlund deposit holds 16.2 million tonnes in probable reserves, containing 621,000 ounces of gold. A 2023 study for the larger Goliath gold complex, which includes Goldlund, projected a post-tax net present value of $336 million. The study assumed a gold price of US$1,750 per ounce.

The Goliath complex could produce 90,000 ounces of gold each year for 13 years. NexGold aims to become a mid-tier Canadian producer, targeting over 200,000 ounces of gold annually from its projects. Company shares fell more than 6% to $1.52 in Toronto trading on Wednesday.