Getchell Gold Corp. (CNSX: GTCH) (OTCQB: GGLDF) (FWB: GGA1) has engaged a drill contractor for its proposed 2025 drill program at the company’s Fondaway Canyon gold project in Nevada.
Announced on Monday, the project contains a large mineral resource with an indicated mineral resource of 13.5 million tonnes at an average grade of 1.49 grams per ton gold (g/t Au), with totals including 648,000 ounces of gold and an inferred mineral resources at 44.8 million tonnes at 1.16 g/t Au, with total amounts of 1.6 ounces of gold.
After completing the mineral resource estimate, the company filed a positive preliminary economic assessment (PEA) for the Fondaway Canyon gold project on February 7, 2025. The PEA outlines an open-pit mining operation combined with a conventional 8,000-tonne-per-day milling process. It projects an initial mine life of approximately 10.5 years.
The economic analysis demonstrates strong project fundamentals. It shows a pre-tax Net Present Value (NPV) of US$ 546 million and a 51.2 per cent Internal Rate of Return (IRR). After tax, the NPV stands at US$ 474 million with a 46.7 per cent IRR. These figures use a conservative 10 per cent discount rate and a gold price of USD$2,250 per ounce.
Additionally, the PEA confirms the project’s viability under current market conditions.
The company has designed an initial 10-hole, 3,000-metre (10,000-foot) drill program. This program aims to extend mineralization along strike and dip, increase the mineral resource, expand the open-pit model, and significantly boost the project’s overall value.
Read more: NevGold pulls up even more promising antimony grades from Nevada property
Read more: NevGold’s latest drill results extend priority target at Limo Butte by over 200 metres
Nevada is one of the world’s most attractive jurisdictions
The company has engaged Foraco Corp. of Salt Lake City, UT, to carry out the 2025 drill program at Fondaway Canyon. The drill rig is expected to mobilize to the site and begin work in mid-to-late July. Drilling will continue through the end of the season.
The PEA is preliminary and includes Inferred Mineral Resources that are geologically too speculative for economic assumptions. These resources cannot be classified as mineral reserves. Therefore, there is no certainty the results of the PEA will be realized.
The base case uses a gold price of USD$2,250 per ounce. The company calculates NPV from the start of construction and excludes all pre-construction costs.
Nevada remains one of the world’s most attractive jurisdictions for gold mining. Further, it produces approximately 78 per cent of U.S. gold and about 5 per cent of global output.
Its rich mineral endowment, stable regulatory environment, and well-developed infrastructure continue to draw explorers and producers alike. Lately, interest in antimony has grown significantly.
As a U.S.-designated critical mineral used in military technology and renewable energy, antimony has become more valuable. This is due to China’s restrictions on exports in late 2024. This shift has increased demand for domestic sources, and Nevada’s overlooked antimony potential is gaining fresh attention.
Companies currently active in Nevada include NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), which is advancing its Limousine Butte project with promising gold and antimony results. Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) and Barrick Mining Corp (TSE: ABX) (NYSE: B) continue to operate major mines along the Carlin Trend.
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