U.S. GoldMining Inc (NASDAQ: USGO) observed a substantial boost in its share price after publishing an updated mineral resource estimate on Monday. The stock has risen by over 25 per cent since the market closed on Friday.
The exploration company’s new assessment found that its flagship Whistler gold-copper project contains more than twice as much gold equivalent (AuEQ) than the last estimate from 2022 had determined.
“In less than one-and-a-half years since completing our IPO, U.S. GoldMining’s exploration initiatives have resulted in strengthened confidence in the mineral resource estimate for its flagship Whistler deposit by increasing estimated AuEq ounces in the indicated category by 117 per cent,” chief executive Tim Smith said.
The site is now estimated to hold 6.5 million ounces of AuEq. The assessment is based on over 43,000 metres of drilling data and geological interpretations. GoldMining Inc (TSE: GOLD) specifically created U.S. GoldMining to focus on this project. The new subsidiary raised US$20 million to develop the Whistler project from completion of its IPO last spring.
U.S. GoldMining hasn’t specified when production is expected to commence at the operation. Further exploration work is still needed.
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U.S. GoldMining intercepts long intervals of mineralization
At the end of September, the explorer reported its longest gold intercept to date. It consisted of 1 gram per tonne AuEq throughout 652.5 metres.
This followed another lengthy stretch intercepted last year containing 1.06 g/t AuEq over 547 metres.
The Alaska Industrial Development and Export Authority is currently evaluating an access road project that would enable transport between Anchorage in the southeast and the mining operation in the northwest. Construction could potentially start next year.
The project is currently only accessible by air and a seasonal ice road used for bringing up large/heavy duty equipment.
A significant addition to a renowned gold mining region
As Whistler is expected to be a significant economic contributor for the state in future years, Alaska Governor Mike Dunleavy decided to pay the project site a visit last summer.
Alaska’s largest gold producing asset is the Fort Knox mine run by Kinross Gold Corp (TSE: K). It churns out about 900 ounces every day.
Fairbanks, near where Fort Knox resides, has been a prolific mining region since gold was first discovered there in the early 1900s.
One of the largest gold nuggets ever discovered in the U.S. was found in Alaska. The “Alaska Centennial Nugget,” dug up in 1998, weighed in at 294.1 troy ounces.
rowan@mugglehead.com