NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) discovered even more oxide gold-antimony during drilling at its Limousine Butte Project in Nevada.
The company has taken advantage of the recent political headwinds surrounding antimony by continuing to unlock the gold-antimony potential of the project. On Thursday, the company announced positive, near-surface, oxide gold-antimony historical drillholes at Resurrection Ridge.
Drillholes at Resurrection Ridge are spaced to support an initial gold-antimony mineral resource estimate (MRE). The oxide gold-antimony mineralization at Resurrection Ridge and Cadillac Valley covers a large, open, mineralized area.
Some of the highlights include:
- LB023: 2.11 g/t AuEq over 67.1 meters (1.30 g/t Au and 0.18 per cent Sb), including 4.29 g/t AuEq over 30.5 meters (2.79 g/t Au and 0.33 per cent Sb), and also including 7.12 g/t AuEq over 16.8 meters (5.05 g/t Au and 0.46 per cent Sb)
- LB029: 1.16 g/t AuEq over 79.3 meters (0.53 g/t Au and 0.14 per cent Sb), including 1.86 g/t AuEq over 18.3 meters (0.53 g/t Au and 0.14 per cent Sb
The calculation of gold equivalents (AuEq) uses assumed metal prices of USD$2,000 per ounce for gold and US$35,000 per tonne for antimony—reflecting approximately a 30 per cent discount to current spot prices. The estimate also assumes metal recoveries of 85 per cent for gold and 70 per cent for antimony.
This footprint also highlights the project’s strong oxide gold-antimony potential. Furthermore, NevGold has received permits to drill all gold-antimony targets at Limo Butte.
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NevGold outlines two significant drill footprints
Historical drilling also shows significant antimony upside.
Many intervals exceeded the 1 per cent upper detection limit were used in earlier assays. NevGold is re-assaying those intervals at American Assay Lab in Reno, Nevada without the 1 per cent limit.
The company will also continue reviewing historical drill data with a focus on oxide gold and antimony. Much of the database lacks antimony analysis, creating a low-cost re-assay opportunity.
“The discovery of more significant oxide gold-antimony drill results at Resurrection Ridge continues to be a key development at our emerging Limo Butte oxide gold-antimony project,” said Brandon Bonifacio, Nevgold’s CEO.
Bonifacio said the company has now outlined two large mineralized footprints at Resurrection Ridge and Cadillac Valley.
He emphasized that the near-surface mineralization, strong oxide gold-antimony grades, and solid hole thicknesses point to a significant opportunity at the project. He also noted that the team continues to analyze and re-assay drillholes from both areas, with several holes still to be released containing combined gold-antimony results.
So far, the company has released results from 15 holes and expects to provide regular updates as more assays come back from the lab. Bonifacio added that improving market conditions and strong U.S. support for high-quality domestic mineral projects make this an ideal time to advance the gold-antimony potential at Limo Butte.
Limousine Butte resource map. Image via Nevgold.
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Antimony shortage is geopolitical flashpoint
NevGold’s antimony find couldn’t have come at a better time for the company.
The U.S. Geological Survey classified antimony as a “Critical Mineral” in its 2022 list. These minerals are essential to the U.S. economy and national security. For example, the military uses antimony in bullets, night vision, optics, sensors, flares, and communication gear among other important items.
China, Russia, and Tajikistan produce about 90 per cent of the world’s antimony, and that complicates the issue. Especially since China alone accounts for nearly half of global mined output and dominates antimony refining and processing. Furthermore, this has worsened the rivalry between the United States and China, and as a result, China began restricting antimony exports in September of last year. Then in December, China banned antimony exports to the U.S. due to its military and civilian applications.
The effects on the global supply chain have been catastrophic enough for the U.S. Department of Defense to label antimony a “Critical Mineral” due to its strategic importance. Now governments prioritize domestic production to reduce reliance on foreign sources.
This puts NevGold and its options in Nevada in an extremely good place.
As such, NevGold will continue its active exploration program at Limo Butte with a strong focus on gold and antimony. The team is currently evaluating the historical geological database and re-analyzing past drillholes to identify overlooked gold and antimony potential. Based on the results of this ongoing work, NevGold plans to drill test key gold-antimony targets. In addition, the company is preparing to launch preliminary metallurgical studies to support future development.
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