Nevada King Gold Corp.’s(TSXV: NKG) (OTCQX: NKGFF) October drill campaign returned high value gold assays at the Battle Mountain trend in Nevada.
The company announced the results of its five vertical drills during an update on Phase II of its drilling campaign at its Atlanta Gold Mine Project in Nevada on Tuesday.
So far in Phase II, Nevada King has completed 323 drill holes, totalling 57,392 meters. These holes consist of 17 core holes totalling 1,587 meters and 306 reverse circulation (RC) holes at 55,804 meters. The company has reported assay results for 186 holes, and results are pending for another 137 drill holes.
Recent notable intercepts include 37.16 g/t Au over 29 meters in AT23WS-44, 2.15 g/t Au over 96 meters in AT23HG-34, and 1.89 g/t Au over 114.3 meters in a new blind discovery.
Currently, there are four drill rigs operating at the Atlanta site. Three of them are using RC drilling, and one is using core drilling.
The core drilling is focused on high-grade areas for metallurgical testing and confirming RC results. The RC drilling is targeting various areas, including the West Atlanta Graben Zone and the Atlanta Mine Fault Zone in Nevada, as well as expanding mineralization to the south in the South Quartzite Ridge Target.
“Regional geologic mapping and sampling is ongoing throughout the Atlanta District in an effort to identify new targets inferred from the CSAMT surveys,” said Cal Herron, Exploration Manager of Nevada King.
“With each new hole we learn a little more about the Atlanta Au-Ag system, knowledge we are constantly applying to identify potential similar deposits on the margin of the large collapsed caldera feature covered by the Atlanta claims.”
The last resource estimate for Atlanta was done in 2020 and was based on 71 drill holes completed by previous operators up to that point. Since then, Nevada King has conducted extensive drilling in two phases.
In Phase I, it completed 63 holes totaling 5,881 meters, and in Phase II, it completed 323 holes totaling 57,392 meters. This drilling not only expanded on the known mineralization from 2020 but also led to new discoveries. The company continues to drill northward, southward and westward beyond the existing resource model.
In total, Nevada King has conducted five times more drilling than what was used for the 2020 resource estimate.
Shares of Nevada King are down 2.3 per cent to $0.43 on Tuesday on the TSX Venture Exchange.
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Recent reports show robust growth for Calibre
Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) is another Vancouver-based gold junior that’s brought in some excellent returns from the Battle-Mountain trend in Nevada.
A report from Bank of Nova Scotia‘s (TSX: BNS) Global Equity Research suggests that Calibre may exceed its upper-end production guidance for Q3, considering the company’s consolidated gold production and robust cash position.
Calibre also closed Q3 with a cash balance of $97 million, marking a 26 percent increase from its Q2 position of $77 million. Furthermore, the report highlighted Calibre’s fiscal year 2023 production guidance of 250-275 thousand ounces of gold (koz Au) from both its Pan Mine in Nevada and its properties in Nicaragua.
As of now, the company has already produced 208 koz, which accounts for about 79 percent of the midpoint of its annual production guidance.
The report suggests that Calibre is on track to not only meet but potentially exceed its production guidance, with an anticipated production of 280 koz, surpassing the company’s own projections.
Analysts from prominent banking institutions, including the Bank of Montreal Financial Group (TSX: BMO), Toronto-Dominion Bank (TSX: TD), and Cormark Securities, have collectively forecasted that Calibre’s stock is expected to reach a value ranging between $2.00 and $2.50 over the next year.
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