NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) has delivered a significant update on its Nutmeg Mountain gold project in southwest Idaho.
The company released a new Mineral Resource Estimate (MRE) on Thursday that shows both scale and potential growth. The update shows the project moving closer to development while expanding its profile in the Western USA.
The MRE outlines an open-pit, oxide, heap-leach gold resource. Indicated resources total 1.19 million ounces at 0.50 grams per tonne gold, hosted in 74.2 million tonnes. Inferred resources add 548,000 ounces at 0.34 grams per tonne gold, held within 49.8 million tonnes. NevGold emphasized that the resource begins at surface and carries a low strip ratio, projected at less than 1:1. That factor alone can lower mining costs significantly.
Higher grade mineralization sits within the broader resource model. By raising the cut-off grade from 0.20 grams per tonne to 0.60 grams per tonne, the project shows 560,000 ounces of indicated resources at 0.92 grams per tonne gold.
Inferred resources contribute an additional 85,000 ounces at 0.87 grams per tonne. This higher-grade zone also begins at surface. NevGold believes these results point toward future opportunities for resource expansion.
The updated MRE marks major progress compared to the 2023 estimate. The base case pit-constrained indicated tonnage increased by over 18 per cent. Inferred tonnage more than doubled.
Additionally, exploration has already outlined new high-priority drill targets that could further expand the deposit. The company plans to pursue these as it advances exploration.
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More than 940 holes drilled since the 1980’s
Mineralization at Nutmeg Mountain begins at surface and extends across four key zones. The Main Zone represents the largest contributor to the resource.
It stretches about 1,200 meters north to south, between 250 and 500 meters wide, and up to 180 meters thick. Most of the contained gold lies within the top 75 meters, which highlights the potential to expand resources vertically with deeper drilling.
The North Zone lies 600 meters northeast of the Main Zone. Here, gold mineralization forms an oval-shaped, tabular body measuring 335 meters long, 150 meters wide, and up to 60 meters thick. The Stinking Water Zone lies about 400 meters west of the North Zone.
Meanwhile, the Cove Creek Zone sits 600 meters southeast of the Main Zone and 170 meters lower in elevation, with little surface expression. These zones together form the structural and geological framework of the deposit.
NevGold described Nutmeg Mountain as a low-sulphidation epithermal gold system. Exploration began in the 1980s, with more than 940 drill holes now totalling over 71,600 meters.
Historical drilling mostly targeted outcropping and near-surface disseminated mineralization, often located on patented claims and private leases. NevGold has since identified additional near-surface gold targets on unpatented claims.
The geology includes Miocene-age basalt, tuffaceous sediments, and Payette Formation sandstone and siltstone.
Pliocene-age lacustrine rocks of the Idaho Group also play a role. Mineralization occurs primarily within a north-trending graben structure bounded by east-west faults. Hydrothermal brecciation, silicification, veining, and acid alteration control the distribution of gold. At surface, opaline silica dominates the alteration.
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A milestone for NevGold
NevGold believes high-grade feeder veins typical of these systems remain undiscovered. Average drill depths at the project are less than 75 meters. Deeper drilling could reveal feeder structures that might host higher grades.
Consequently, a key focus will be to test both near-surface disseminated mineralization and deeper potential feeder zones.
CEO Brandon Bonifacio described the update as a milestone for NevGold. He noted that the project illustrates scale, grade, and strong growth potential. Additionally, he emphasized the favourable gold price environment and the momentum for advancing domestic mineral projects in the United States.
The next step involves metallurgical test work and a Preliminary Economic Assessment (PEA). A PEA would provide the first detailed look at potential economics, including costs, recovery rates, and mine scheduling. At this stage, the company has not yet completed mine scheduling studies. However, with mineralization at surface and a strip ratio under 1:1, project economics could be compelling.
Nutmeg Mountain spans roughly 1,724 hectares. The land package includes 210 federal unpatented claims, 12 patented claims, and two private leases. The combination gives NevGold both scale and flexibility in how it develops the deposit. Additionally, Idaho’s mining history and supportive regulatory environment strengthen the project’s outlook.
The updated MRE captures momentum built over the last two years. In 2023, the project already carried strong potential. Since then, the resource has grown substantially, particularly on the inferred side. This growth highlights both the effectiveness of recent exploration and the opportunity for further expansion.
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Strong gold market could provide tailwinds for capital raises
NevGold now faces several strategic choices. It can continue to grow the resource base through drilling, particularly deeper targets. It can also accelerate metallurgical and engineering studies to demonstrate project economics. A balance of both approaches seems likely. Meanwhile, the favourable gold market may provide tailwinds for raising capital and building support among investors.
The company stressed that high-priority targets remain untested. Future drilling will aim to both extend known mineralization and discover new zones. Additionally, discovering high-grade feeder veins could transform the project’s profile. The combination of scale, grade, and jurisdiction positions Nutmeg Mountain as a potential development-stage gold project in the Western USA.
The updated MRE also underscores the efficiency of heap-leach processing. Heap-leach projects often carry lower capital intensity than conventional milling operations. Consequently, projects with near-surface oxide mineralization and low strip ratios can deliver attractive returns. NevGold believes Nutmeg Mountain aligns well with this model.
Exploration will continue to test the boundaries of mineralization across the property. Historical drilling focused narrowly on near-surface areas. Broader step-out drilling could reveal new zones beyond current resource boundaries. In addition, the structural framework suggests potential for deeper discoveries.
The four mineralized zones provide multiple opportunities. The Main Zone remains the largest and most significant. The North Zone, Stinking Water Zone, and Cove Creek Zone provide additional exploration upside. Together, they form a complex but promising system that remains open in several directions.
The company sees Nutmeg Mountain as a long-term growth story. Its size, favorable geology, and location offer strong advantages. Furthermore, the updated MRE validates progress made in just 24 months. With further drilling, the resource could expand substantially again.
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