NexGold Mining Corp (CVE: NEXG) (OTCMKTS: NXGCF) (FRA: TRC) and its Nova Scotia subsidiary have secured a 779-hectare crown land lease for a new gold mine on the east coast of the province.
The Government of Nova Scotia made the reveal in a news release on Wednesday.
“The lease includes a land package that covers both the deposit and critical infrastructure for mine development,” NexGold CEO Kevin Bullock said therein, “allowing final permitting to progress.”
NexGold’s subsidiary Goldboro Gold Mining Inc. now only needs to obtain one last “industrial approval” before the beginning of a 15-year mine life, according to the government. It will contribute C$2 billion to Nova Scotia’s GDP and create 700 jobs during that timeframe, approximately.
“The lease – plus applicable approvals and permits – will allow the company to develop and operate an open pit gold mine,” the press release specified, “with processing and tailings management facilities, other infrastructure, and on-site storage of waste rock, till and organic material.”
The Goldboro Gold Project will be capable of churning out 100,000 ounces per annum. A mineral resource estimate (MRE) from late 2021 determined that the site held 2.85 million measured and indicated gold ounces.
NexGold claims that it has the highest grade undeveloped open pit reserve on the east coast of the country. The area’s mining history dates back to the late 19th century.
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NexGold pulls high-grade core samples from Goldboro property
Infill drilling completed as part of the company’s ongoing 25,000-metre drill program has yielded long intervals of significant gold mineralization.
Small sections of these core assays have returned particularly high grades, including 35.4 grams per tonne gold over 0.7 metres and 19.4 g/t Au over 0.8 metres in another hole. These latest results were released on May 16.
About 17,000 metres of drilling have been completed to date. NexGold plans to provide an update MRE by the end of the year. Having an updated feasibility study in hand is the goal afterward.
Alongside the Valentine Gold Mine held by Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA), Goldboro will soon become one of the top gold producing assets in Atlantic Canada.
The Government of Nova Scotia recognizes gold as a strategic mineral. Workers in the province’s mining industry make an average of C$100,000 per year.
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