US GoldMining Inc (NASDAQ: USGO) (FRA: Q0G) has made headway this year with its gold and copper project in Alaska, which sits about 105 miles northwest of Anchorage. The company has steadily moved the project forward, and state backing for better links to the site has grown in line with that progress.
In the latest step, Alaska’s government-owned development agency, the Alaska Industrial Development and Export Authority (AIDEA), authorized up to US$25 million for early study work on a state access road that could serve the project. This money will pay for the studies and work needed to plan the access roads that connect the project to roads, rail, power and ports near Anchorage.
The full route runs for around 100 miles in total and ends near the company’s camp next to the main deposit. Once ready, the roads will make it far easier to bring in equipment and take out material while also opening up the wider surrounding area for other activity. The state body that approved the money voted for it with full agreement from its board.
“The Board’s unanimous action keeps the project on schedule for the upcoming field seasons and moves us another step closer to unlocking one of the most promising resource corridors in the state,” said AIDEA Deputy Executive Director Brandon Brefczynski.
However, the funding covers only the early planning and checks. The full roads are not yet approved for building. The company does not control the road project and cannot guarantee the final timetable or path. Any further steps still depend on state bodies, so delays remain possible.
Read more: NevGold files technical report backing Limousine Butte gold-antimony resource
Recent significant momentum
This road funding builds on the drill work that began in July. The team has started testing key spots near the main deposit with one drill active and another on the way. They plan to drill at least 6,000 metres across the top eight to 10 targets in the nearby areas. The whole programme is fully paid for, and early results should arrive by the end of the third quarter.
More important still was the first full economic study released in March. It showed strong numbers for the project based on the main deposit alone. The study pointed to solid returns, a short payback period and good production in the early years under normal metal prices. Investors liked what they saw, and the firm’s share price rose by about 25 per cent on the day of the news.
These three developments are significant milestones that could support a decision on whether to produce a pre-feasibility study.
One of GoldMining’s diverse interests
U.S. GoldMining’s parent company, GoldMining Inc (TSE: GOLD) (NYSEAMERICAN: GLDG) (FRA: BSR), owns a stake in the firm in excess of 70 per cent.
GoldMining also holds several other gold and copper projects at the resource stage across the Americas, including sites in Canada, Brazil and Colombia.
It has a stake in two sites with antimony mineralisation as well. One is the Limousine Butte project in Nevada. GoldMining gains exposure to this through its large holding in NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50). The other is the Crucero project in Peru, which the parent owns fully.
GoldMining has chosen to diversify its interests across critical minerals, precious metals and copper.
Read more: NevGold extends Nevada antimony-gold mineralization by over 100 metres
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NevGold is a sponsor of Mugglehead coverage
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