Nevada King Gold Corp (CVE: NKG) (OTCMKTS: NKGFF) has reported an updated mineral resource estimate (MRE) for its Atlanta Gold Mine Project in the Battle Mountain Trend in Nevada.
The company said on Wednesday that the engineering firm, RESPEC, out of Reno, Nevada, created the MRE.
The company’s measured and indicated (M&I) resources total 27.7 million tonnes at an average gold grade of 1.14 grams per tonne. This equates to 1,019,600 ounces of contained gold and marks a 122 per cent increase from the 2020 resource estimate.
This sharp rise demonstrates the success of the company’s Phase I and II resource definition drilling campaigns. Notably, 91 per cent of the total gold ounces fall within the higher-confidence M&I categories, while only 9 per cent remain in the inferred category.
This resource forms part of an open-pit, oxide gold system. It uses a pit-constrained model based on a gold price of US$2,200 per ounce. The estimate also assumes recoveries and processing methods proven in the company’s Phase 1 metallurgical test work. This work outlines conventional oxide processing methods commonly used in Nevada, and these methods apply directly at Atlanta.
Importantly, this updated resource covers only the Atlanta Resource zone. It does not yet reflect mineralization discovered during the company’s Phase III drilling. That includes new gold and silver mineralization encountered at Silver Park. As a result, management sees strong potential for further resource growth. The mineralization remains open to the north, south, and west. In addition, the company believes there is clear upside in identifying regional satellite deposits.
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Clear expansion potential for West Atlanta Graben Zone
Herron explained that when they began work at Atlanta, the resource contained 460,000 M&I ounces at an average grade of 1.30 g/t. Since then, the company has more than doubled that figure, now including significantly more high-grade material.
This improvement stems largely from thicker, higher-grade intercepts found within the West Atlanta Graben Zone. According to Herron, there is clear potential to expand this zone to the south, north, and west. There is also a strong possibility of discovering additional high-grade areas.
He credited the company’s consistent support for its technical team and its commitment to completing the exploration program.
That dedication helped transform a modest deposit into a high-grade resource exceeding one million ounces—a rare feat for open-pit oxide deposits in secure jurisdictions. Even now, the team’s determination continues to drive Phase III exploration across the Atlanta District in search of new deposits.
“Atlanta is a unique system with multiple instances of high-grade gold deposition,” said Cal Herron, exploration manager for Nevada King.
“These high-grade zones, which play prominently into today’s resource estimate, were a key target of our Phase II drill program.”
Furthermore, Nevada King estimates that open-pit oxide resources intended for milling total 14.5 million tonnes, grading 1.72 grams per tonne gold. These resources contain 803,000 ounces of gold in the Measured and Indicated (M&I) category. In addition, 1.0 million tonnes grading 2.24 grams per tonne gold—containing 70,000 ounces—fall into the Inferred category.
Meanwhile, open-pit oxide resources planned for heap leach processing are estimated at 13.2 million tonnes. These average 0.51 grams per tonne gold, resulting in 216,000 ounces in the M&I category. Furthermore, 2.7 million tonnes at 0.34 grams per tonne gold contribute an additional 29,000 ounces in the Inferred category.
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Oxide gold offers post cost benefit options
Oxide gold refers to gold hosted in oxidized rock near the earth’s surface. This type of deposit forms when sulfide-bearing rocks undergo natural weathering and oxidation, leaving gold particles loosely bound within porous, often iron-stained rock. Oxide gold is important because it is generally easier and cheaper to process than sulfide-hosted gold, making it a preferred target for early-stage and mid-tier mining companies. Its near-surface location also makes it ideal for open-pit mining.
Compared to sulfide gold, oxide gold requires less energy and fewer chemicals to extract. Sulfide ores typically demand complex milling and flotation circuits or roasting and pressure oxidation. In contrast, oxide gold can often be processed using heap leaching, where crushed ore is stacked on a liner and irrigated with a cyanide solution that dissolves the gold. This solution is then collected and processed to recover the metal, usually through activated carbon adsorption and electrowinning.
In Nevada, several companies are actively pursuing oxide gold targets. Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) operates the Pan Mine in eastern Nevada, a producing heap-leach project with expansion potential at its nearby Gold Rock Project. Other players include Liberty Gold Corp. (TSE: LGD) (OTCMKTS: LGDTF), focused on its Black Pine oxide gold project just across the Nevada border in Idaho.
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