Shares of U.S. GoldMining Inc. (NASDAQ: USGO) jumped 16 per cent after it announced updates to its mineral resource estimates and exploration activities in Alaska.
The Tuesday update included new assay results from the company’s 2024 drilling program at hte Whistler Gold-Copper Project.
Additionally, the company announced an updated mineral resource estimate (MRE) for the Whistler Gold-Copper Project. It reflects a significant increase in both indicated and inferred resources.
Indicated resources have grown to 6.48 million ounces of gold equivalent (AuEq), with an additional 4.16 million ounces in the inferred category. This mark a 117 per cent increase in indicated resources compared to the 2022 estimate.
This update is based on drilling results from 2023. It does not yet incorporate data from the 2024 program, suggesting further potential growth. The company completed its 2024 drilling program, which included 4,006 meters drilled across six holes.
Results confirmed the geological model and extended known mineralization at the Whistler Deposit, with one hole intersecting 652.5 meters at 1.00 g/t AuEq, including high-grade zones that underscore the project’s potential.
Additionally, President Trump signed an executive order called Unleashing Alaska’s Extraordinary Resource Potential in January, which the company believes will work in its favour. The initiative aims to streamline the resource development process and encourage investment.
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US Goldmining asset value boosted by updated MRE
Shares of U.S. GoldMining rose 16 per cent today as investors reacted to a series of positive developments.
The substantial increase in the mineral resource estimate for the Whistler project boosted the company’s asset value.
Positive drilling results further reinforced confidence, as recent assays expanded known mineralization, strengthening expectations for future production.
Highlights include a Main Zone composite intercept of 138.0 meters (m) at 0.99 grams per tonne (g/t) gold equivalent (AuEq) comprising 0.89 g/t gold (Au) and 0.05 per cent (per cent) copper (Cu), plus 17.57 g/t silver (Ag), 0.44 per cent lead (Pb) and 0.95 per cent zinc (Zn) (elevated Ag, Pb and Zn grades are excluded in the AuEq calculations), from 635.0 m to 773.0 m down hole.
These also include higher-grade individual intercepts:
- 26 m at 1.48 g/t AuEq (1.36 g/t Au, 0.06 per cent Cu) plus 15.38 g/t Ag, 0.69 per cent Pb and 1.61 per cent Zn
- 34 m at 1.65 g/t AuEq (1.49 g/t Au, 0.08 per cent Cu) plus 19.95 g/t Ag, 0.81 per cent Pb and 1.35 per cent Zn
Furthermore, the recent executive order easing mining operations in Alaska also contributed to the rally by reducing regulatory hurdles and fostering a more investment-friendly environment.
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joseph@mugglehead.com
