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Sunday, Oct 1, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


NevGold CEO inks open letter reassuring shareholders despite recent upheavals

Letter emphasizes NevGold’s forward trajectory despite market fluctuations

NevGold CEO inks open letter reassuring shareholders despite recent upheavals
Nutmeg south of resource. Image via NevGold.

 NevGold Corp. (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) inked a letter to reassure company shareholders of the strength of their investment despite the most recent market upheavals.

The letter was written and released on Monday by NevGold CEO Brandon Bonifacio in response to some of the recent statements from Federal Reserve chair Jerome Powell, as well as upheavals with the commodities and wider markets with the recent run on the Silicon Valley Bank.

“We have established NevGold as a “go-to” name for oxide, heap-leach gold exploration and resource exposure in the Western USA. With our recently completed +C$4.1M financing in December-2022, we are fully funded to aggressively explore the assets in our portfolio which will lead to steady news flow and many development catalysts over the next 6-12 months,” said Brandon Bonifacio, CEO of NevGold.

Last week was eventful for the mining industry with the Prospectors and Developers Association of Canada (PDAC) conference in Toronto. Beyond that, however, it also included a more hawkish stance on inflation from Federal Reserve Chairman Jerome Powell during his testimony to the Senate Banking Committee.

Additionally, the United States job data was released, including initial jobless claims and non-farm payrolls.

The most critical event of the week was the debacle of the Silicon Valley Bank, which experienced a “run on the bank” and was eventually shut down by US regulators shortly after midnight EST on Friday, March 10.

A bank run is a situation where a large number of customers of a bank, or a financial institution, withdraw their deposits simultaneously, usually due to fear of the bank’s insolvency or concerns about the safety of their funds.

Silicon Valley Bank was a commercial bank that has lent funds to successful startups. A few of these include Roku, Roblox and Vox Media.

The bank’s failure makes it the second-largest bank failure in US history, after Washington Mutual in 2008.

Read more: NevGold to hit the ground running at Limousine Butte in 2023: Caesars Report

Read more: NevGold submits exploration and expansion plans for gold project in Nevada

Gold has had a volatile week: NevGold CEO

Gold prices had a volatile week with prices trading between approximately US$1,810/oz and ending the week just under US$1,870/oz. The news of Silicon Valley Bank pushed the prices up by over US$35/oz on the day.

Bonifacio notes that despite the fluctuations, it’s clear gold is performing as expected. It is one of the very few asset classes that continues to perform well during uncertain times.

“If one was to say gold would close on March 10, 2023 at approximately US$1,870/oz, many investors in the space would have been joyous as that would translate to the gold producers, developers, and explorers performing strongly and the gold industry ‘finally having its moment in the sun,’ Bonifacio said.

“Unfortunately, that has not happened yet with significant liquidity being taken out of the global financial system since COVID, part and parcel to the interest rate hike regime that we are currently faced with globally.”

The underlying commodity is performing well, which means that gold companies are likely to start receiving more attention from investors.

This is good news for companies like NevGold and other gold companies, according to Bonifacio.

The companies that are most likely to see benefits are those that are actively exploring and developing their resources, have a healthy amount of funding without debt, and have a relatively small number of shares available for investors. NevGold fits all three of these criteria, so it is well-positioned to take advantage of any positive developments in the gold market.

Read more: NevGold Corp. gets exploration notice approval from Bureau of Land Management

Read more: NevGold should be trading at a premium to peers: Analysis

Nevgold expects assays for Nutmeg Mountain soon

NevGold got its first drill rig up at Nutmeg Mountain in Idaho in January. Since then, it has drilled a number of holes and now have with assay results pending.

The drill program continues to advance as anticipated both on budget and on schedule.

Nutmeg Mountain had not actually been drilled since 2012. After finishing a robust surface mapping and core-relogging program on its over 70,000 meters of historic drilling in 2H-2022, it became clear to the company that it had many untested resource expansion and exploration targets.

Presently, the focus of the present program is to expand the 2020 mineral resource estimate of 910,000 Indicated ounces of gold and 160,000 Inferred ounces of gold to the north and south and near-surface drilling. Additionally, the company will test for high-grade feeder structures at depth.

Also, it will identify parallel structures hosting near surface mineralization to the east and west of the 2020 mineral resource

The company expects the first assays soon.

NevGold CEO inks open letter to reassure shareholders despite recent upheavals

Nutmeg looking north. Image via Nevgold.

Read more: NevGold starts drilling at Nutmeg Mountain property

Read more: 2023 will be a ‘very strong’ year for gold mining: NevGold

Geological model updated in at Limousine Butte

NevGold is updating the geological model at Limousine Butte to include the 2022 drill results.

The successful drill program identified multiple drill targets. Also, these showed expansion potential for the mineralized fooprints at both the Resurrection Ridge and Cadillac Valley target areas.

NevGold has also identified multiple new exploration targets in other untested parts of the project. The company intends to drill in 2023 once its completed the geologic interpretations and drill targeting.

NevGold has recently submitted an Exploration Plan of Operations (EPO) permit to the Bureau of Land Management for Limousine Butte.

The EPO permit is an important step because the process included many key de-risking activities necessary for project management. Once approved, the EPO will allow for expansion of disturbance at the project. This will let the company drill around mineralization and go into untested areas.

“We are looking forward to mobilizing a drill to Limousine Butte in the near future as we have an abundance of resource delineation and exploration targets to drill with the goal of advancing the project to an updated resource estimate,” Bonifacio said.

The letter recognizes Limousine Butte as one of NevGold’s flagship projects. It also states it will advance both Nutmeg Mountain and Limousine Butte in parallel.

NevGold shares rose by a penny today and are trading at $0.365 on the TSX Venture Exchange.


Nevgold is a sponsor of Mugglehead news coverage

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