Nevgold posts Nutmeg Mountain at 51.66 Mt of 0.61 g/t gold, Idaho

Nevgold Corp. [NAU-TSXV; NAUFF-OTCQX; 5E50-FSE] released its initial mineral resource estimate (MRE) for the 100%-optioned Nutmeg Mountain gold project in southwest Idaho.

Highlights: High-grade, open-pit, oxide, heap-leach gold mineral resource in the Western United States: 1.01 million ounces (Moz) of indicated resources at 0.61 g/t gold (51.7 million tonnes (Mt), 74% of pit-constrained tonnage) and 275,000 oz of inferred resources at 0.48 g/t gold (17.9 Mt, 26% of pit-constrained tonnage).

Significant growth captured over past 12 months: Compared with the 2020 historical resource estimate, the company increased the pit-constrained tonnage by over 32%, with further upside identified with high-priority drill targets.

Mineralization starts at surface with low strip ratio: Mineralization at Nutmeg Mountain starts at surface. The strip ratio of the project based on conceptual pit shells is expected to be less than 1:1, which is extremely low for an open-pit, oxide, heap-leach gold project. The low strip ratio will minimize upfront capital and development timelines of the project, providing the opportunity for a future low-cost mining operation with rapid cash flow.

Higher-grade core within the resource: Increasing the cut-off grade from the base case of 0.30 g/t gold to 0.60 g/t gold, the project has 560,000 oz of indicated resources at 0.92 g/t gold, and 81,000 oz of inferred resources at 0.87 g/t gold. Exploring for more potential high-grade mineralization will be a key focus as the project is advanced with further drilling and subsequent resource estimates.

Low sensitivity to gold price: The project has low sensitivity to gold price. Decreasing the cut-off grade from the base case of 0.30 g/t gold to 0.20 g/t gold, the project has 1.13 Moz of indicated resources at 0.53 g/t gold, and 365,000 oz of inferred resources at 0.39 g/t gold.

Next steps: The company plans to complete further drilling, metallurgical test work and an updated MRE to advance the project to a preliminary economic assessment (PEA).

Brandon Bonifacio, CEO, commented: “This is an important milestone for Nevgold and the Nutmeg Mountain gold project as it further validates our corporate strategy and business model. We are pleased with the results of the MRE, as it illustrates the size, grade and simplicity of this robust, at-surface, open-pit, oxide, heap-leach gold project in the Western U.S. Since announcing the transaction on Nutmeg Mountain in 2022, we strongly believed there was immediate growth potential not captured in the 2020 historical resource. Using the same cut-off grade from the 2020 historical resource of 0.30 g/t gold, we were able to significantly increase the indicated mineral resource to 1.01 Moz, and the inferred mineral resource to 275,000 oz. Today’s MRE is the first step towards extracting the potential at the project, and with the mineralization remaining open, we will continue to focus our efforts on further drilling to expand the resource. As we have stated consistently, there are very few open-pit, oxide, heap-leach gold projects of scale and grade with mineralization starting at surface in the Western U.S., and that is exactly what we are building at Nutmeg Mountain.”

Nutmeg Mountain is a low-sulphidation epithermal gold deposit located in southwest Idaho, approximately 20 kim east of Weiser, Idaho, and 120 km northwest of Boise, Idaho. The project is approximately 1,724 hectares in size, which comprises 210 federal unpatented claims, 12 patented claims and two private leases.

In July 2022, Nevgold executed an option to acquire Nutmeg Mountain from GoldMining Inc. [GOLD-TSX]. At the time, the project had 934 core, reverse circulation (RC) and rotary drill holes totalling over 70,254 metres of historical drilling. In early 2023, Nevgold completed five core holes totalling 1,371 metres, and the data from these holes were used to complete the MRE at the project.

Nevgold is an exploration and development company targeting large-scale mineral systems in the proven districts of Nevada and Idaho. Nevgold owns a 100% interest in the Limousine Butte and Cedar Wash gold projects in Nevada.