NexGold hits 14g at Goldlund in Ontario

NexGold's Goldlund deposit in northwestern Ontario continues to demonstrate consistent high-grade mineralization at depth, according to recent drill results. A hole, GL-26-034, cut 9.76 grams gold over 8 meters and 14.07 grams gold over 7 meters at 205 meters depth. CEO Kevin Bullock expressed confidence in the mineralization's depth and tenor, stating that the results support the company's objectives to further explore the extension of mineralization in Zone 4.

The Goldlund deposit, which produced around 18,000 oz. of gold in the 1980s, hosts 16.2 million tonnes of probable reserves grading 1.19 grams gold, valued at 621,000 contained ounces. The prefeasibility study estimates the Goliath gold complex, of which Goldlund is a part, to have a post-tax net present value of $336 million and an internal rate of return of 25.4%.

The complex could produce 90,000 oz. of gold annually for 13 years under a U.S. $1,750 per ounce gold price assumption. Additional drill highlights include hole GL-26-032, which returned 2.23 grams gold over 15.5 meters, and GL-26-033, which cut 0.84 grams gold over 42.8 meters. Mineralization at Goldlund consists of quartz stockwork veining within sub-vertical granodiorite sills, with Zone 4 hosting broad intervals of mineralized intermediate-mafic volcanic rocks and multiple porphyry and granodiorite intrusions.

The 35,000-metre drill program at Goldlund, comprising 31,971 meters already drilled, is expected to conclude by year-end. NexGold, formed through the 2024 merger of Treasury Metals and Signal Gold, aims to become a mid-tier Canadian producer, targeting over 200,000 oz. of annual gold output from the Goliath and Goldboro projects.

The company's shares fell over 6% to $1.52 apiece following the release of the drill results, with a market capitalization of $391.7 million. The stock has traded between $1.12 and $2.40 in the past 12 months.