GoldMining Inc (TSE: GOLD) (NYSEAMERICAN: GLDG) (FRA: BSR), the top shareholder of NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), has signalled its confidence in the junior by agreeing to retain its current holding for the next year and a half.
NevGold, a precious metal and critical minerals mining company, announced their standstill agreement on Thursday. It indicates GoldMining’s continued enthusiasm for NevGold’s antimony, gold and copper resources throughout Nevada and Idaho.
Maintaining this 16.7 per cent stake, comprised of over 19 million common shares, may be viewed favourably by other mining industry investors too.
“We continue to be supportive of NevGold,” said GoldMining chief executive Alastair Still. “We look forward to working with NevGold as it continues to progress and develop its high quality projects in the Western USA.”
As NevGold is currently putting in extensive work to produce a mineral resource estimate at its flagship gold-antimony operation in Nevada, the words of support from a major stakeholder are meaningful.
Brandon Bonifacio, CEO of NevGold, says the team will be updating shareholders about progress at Idaho’s Nutmeg Mountain gold project and Zeus copper operation in the near future.
Read more: Antimony recovery results from NevGold’s Limo Butte project exceed expectations
Latest lab assays exceed company expectations
In recent weeks, NevGold has been having success with metallurgical test work and the ongoing drill campaign at Limousine Butte.
The junior was able to achieve an antimony (Sb) recovery rate of approximately 83.5 per cent from several kilograms of material comprised of grab samples and drill cores. An acid leaching process yielded this result. Furthermore, long intervals of favourable gold and Sb mineralization have been intercepted at Limo Butte this year, demonstrating the project’s development potential.
The standstill agreement and operational successes are complemented by the US$6-million-dollar private placement NevGold closed in late May and bullish sentiment resulting from Donald Trump’s Executive Order on critical minerals in March. Expedited permitting and the establishment of a fund dedicated to mineral production as a result have been viewed in a positive light by market speculators.
NevGold hopes that Limo Butte could eventually attract a level of government interest comparable to the Stibnite antimony asset under development by Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA). Scalable domestic sources of antimony in the U.S. are non-existent at the moment. Top agencies perceive reliance on imports as a national security issue.
The Americans need the silvery metalloid commodity for everything from semiconductors, flame retardants and batteries to night vision goggles, armour-piercing bullets and explosives.
Nevada’s favourable mining industry regulations and robust infrastructure also makes Limo Butte an appealing prospect in the long term.
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
NevGold is a sponsor of Mugglehead news coverage
Follow Rowan Dunne on LinkedIn
rowan@mugglehead.com
