NevGold Corp.‘s (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) recent assays from Nutmeg Mountain in Idaho suggest that the findings will be amenable to heap leach processing.
On Wednesday, the company announced oxide gold drill results for drillhole NMD004 at its Nutmeg Mountain project in Idaho. The company intercepted 0.74 grams per tonne (g/t) over 66.8 meters from the surface of the project, including 1.4 g/t Au over 11. 3 meters from 9.8 meters depth.
Heap leaching is a mineral extraction method where crushed ore is stacked in a heap and then irrigated with a chemical solution to dissolve valuable minerals, which are then collected for processing. It’s commonly used for recovering metals like gold and copper from low-grade ores.
Other drill results released from the 2023 Phase I drill program include:
Hole NMD0003:
- 0.72 g/t Au over 79.3 meters from 10.4 meters depth (oxide)
- 2.32 g/t Au over 13.4 meters from 25.6 meters depth (oxide)
Hole NMD0001:
- 0.56 g/t Au over 23.9 meters from 24.1 meters depth
- 0.89 g/t Au over 11.4 meters from 25.6 meters depth
- 4.33 g/t Au intercepted near the bottom of the hole
The project carries a 2023 Mineral Resource Estimate (MRE) of approximately 1 million indicated ounces of gold and 275,000 inferred ounces. NevGold completed its maiden MRE in August, replacing the one completed by GoldMining Inc. (TSX: GOLD) (NYSE: GLDG), which it had been using after acquiring the property in June, 2022.
NevGold raised the cut-off grades from the original estimate of 0.30 g/t Au to 0.60 g/t Au. As a result, the project now comprises 560 koz of Indicated Resources at 0.92 g/t Au and 81 koz of Inferred Resources at 0.87 g/t Au.
“The further results from our drilling at Nutmeg Mountain continue to highlight the at-surface, oxide gold mineralization building on the recently announced 2023 MRE at the Project,” said Brandon Bonifacio, CEO for NevGold.
“Since completion of the 2023 MRE, we have been focused on identifying areas to expand the mineralization laterally and at depth, and we have generated many high priority drill targets for Phase II drilling.”
Bonifacio says that Nutmeg Mountain has made swift progress over the past year, and the company’s focus is on more drilling and metallurgical tests to push the project to the next developmental stage.
He also noted that there’s been an increase in interest in the region, including a discovery of a copper porphyry by Hercules Silver (TSXV: BIG) and Barrick Gold‘s (TSX: ABX) (NYSE: GOLD) recent investment.
Plan view map of Nutmeg Mountain with drill collar locations. Yellow line outlines the project boundary, with orange shading defining the unpatented Bureau of Land Management claims that have been permitted through an Exploration Notice. The remaining unshaded areas are patented claims and private leases which can be drilled without a permit from the BLM. Image via NevGold.
Read more: NevGold completes maiden mineral resource estimate for Nutmeg Mountain in Idaho
Read more: NevGold discovers new untested areas at Limousine Butte
Idaho has drawn big name attention
Idaho is experiencing a modern-day gold rush, becoming a hub for precious metal exploration. The state’s geology and project permitting process are drawing investments and have the potential to spark significant economic growth, despite being historically less renowned than its neighbouring northwest states for mining.
NevGold isn’t the only company to recognize the prospects hidden underneath Idaho’s soil.
Southern Idaho based Integra Resources (TSXV: ITR) has the main DeLamar gold project, as well as the preliminary economic assessment-stage Wildcat and Mountain View projects in western Nevada.
Integra is actively progressing towards completing two feasibility studies, with a target of 2024 for the DeLamar project and 2025 for the Wildcat and Mountain View projects. Their goal is to secure permits by 2026, enabling the construction and commencement of full-scale operations.
The eagerly awaited resource update for the DeLamar project has the potential to improve upon the existing pre-feasibility study, which currently estimates an after-tax net present value (8 per cent discount) of USD$314 million and a 33 per cent internal rate of return.
Meanwhile, Revival Gold (TSXV: RVG) has wrapped up its prefeasibility study for the Beartrack-Arnett project, revealing an eight-year mine life and an initial annual gold production of 65,000 ounces.
A resource update in May of last year increased Beartrack-Arnett’s indicated resource to 64.9 million tonnes, grading at 1.01 grams of gold per tonne, resulting in a total of 2.1 million ounces. This was a significant improvement compared to the 2020 estimate, which had 36.6 million tonnes grading at 1.15 grams of gold, totalling 1.3 million ounces of gold.
The project also benefits from broad local support and faces minimal environmental objections, which positions it favourably within the regulatory landscape.
These two companies are figuring out what NevGold’s known for the better part of two years—that Idaho is where the next big stakes are going to be found.
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