New Exploration Permit Granted for Nutmeg Mountain Site

Source: Streetwise Reports   01/31/2023

The permit allows rapid exploration of a large, rich mineralized area that has minimal to no historical drilling that could significantly increase the current 1.1 million ounce gold resource at Nutmeg Mountain.

NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) announced today that it has been approved for an Exploration Notice permit for its Nutmeg Mountain project in Idaho. NevGold Corp. targets large-scale mineral systems across the proven jurisdictions of NevadaIdaho, and British Columbia. The Company’s focus is currently split between its Limousine Butte project in Nevada and Nutmeg Mountain project in Idaho. It also has the Cedar Wash project in Nevada and high-grade Ptarmigan property in Southeast British Columbia.

The newly-permitted Nutmeg Mountain property lies some 80 kilometers north-northwest of Boise and approximately 20 kilometers east of the city of Weiser. The company started to drill Nutmeg Mountain on January 18 of this year, and this new exploration permit allows for an expanded drill program on large portions of highly prospective ground that was not historically tested at the project.

The Catalyst: New Exploration Approval

The Nutmeg Mountain site hosts a 2020 mineral resource estimate of 910,000 indicated ounces of gold (43.5 Mt @ 0.65 g/t Au) and 160,000 Inferred ounces of gold (9.1 Mt @ 0.56 g/t Au).

Approximately 85% of the 2020 resource estimate is situated on patented mining claims and other private lands which you can see here . The yellow line outlines the project boundary, with green shading defining the unpatented BLM claims permitted through the Exploration Notice. The remaining unshaded area outlines the patented claims and private leases, which NevGold can drill under different guidelines. There are a number of identified high-quality resource expansion and exploration targets on the unpatented mining claims (green shading) creating significant opportunity for growth as only approximately 15% of the total historical drilling at the Project was on this ground.

According to the National Inflation Association’s gold moon indicator, gold is projected to finish 2023 at US$2,670 per oz. When gold prices rise, they inevitably lift gold mining equity prices with them.

After the Company completed the initial geological modeling, many resource expansion and exploration targets were identified on the unpatented mining claims which created a large opportunity for meaningful resource growth at the project. These identified targets will be tested in the current 2023 drill program, which is already underway, with submission of the first samples to the assay lab imminent.

According to NevGold CEO Brandon Bonifacio, “It has been a very diligent start to our work at Nutmeg Mountain since closing the transaction in August 2022. Our drill program started on January 18, and receiving approval of this important Exploration Notice permit from the BLM opens up large portions of the project that have minimal to no historical drilling.”

“After completing our drill targeting exercise in 2022, it was clear many key resource growth and exploration opportunities are within the federal unpatented BLM claims. Attaining this permit in a timely fashion allows us to start drilling these targets in the current drill program.”

“The permit approval is another de-risking milestone at Nutmeg Mountain, and we are appreciative of the various governing bodies who worked positively and collaboratively with us through the process. We remain on track to have initial drill assays from Nutmeg Mountain by March.”

Why This Sector? Land Is Safe, Land Full of Gold Doubly So

Mining stocks — especially those with considerable inground reserves — are a popular shelter in times of economic uncertainty, so stocks like NevGold’s generally perform well when the market is in a state of confusion.

Rowan Dunne points out in Mugglehead Magazine, “positive shareholder relationships make NevGold a worthy investment.”

In addition, gold is specifically projected to outperform the equities market this year based on growing international demand. “China imported more gold from Switzerland last year and stepped up gold purchases from Russia,” writes Anna Golubova for Kitco.

“Swiss exports of gold to China were at four-year highs in 2022, with China taking in 524 tonnes of gold worth around US$33 billion. This is a massive increase from 354 tonnes reported in 2021 and the most since 2018, according to Swiss customs data.”

According to the National Inflation Association’s gold moon indicator, gold is projected to finish 2023 at US$2,670 per oz. When gold prices rise, they inevitably lift gold mining equity prices with them.

Why This Company? Large Holdings, Good Relationships

In addition to its in-ground reserves and expanding drill program, NevGold offers other advantages. As Rowan Dunne points out in Mugglehead Magazine, “positive shareholder relationships make NevGold a worthy investment.”

Clive Maund said, “With it just starting to turn higher following the sharp dip of the past week, this looks like a great point to pick it up.”

GoldMining Inc. (GOLD:TSX; GLDG:NYSE.American) is a major shareholder that owns approximately 19% of NevGold’s shares. GoldMining also recently supported NevGold’s financing, which it completed in December with a US$1.25 million lead order.

McEwen Mining Inc. (MUX:TSX; MUX:NYSE ) is another shareholder that owns just under 8% of NevGold’s issued and outstanding shares.”

Investment specialist Clive Maund concurred in an analysis posted in December. “On the latest 6-month chart, we can see the base pattern that formed following the drop into the final low late in September and how there has been a big buildup in volume in November, mostly upside volume, that has driven the Accumulation line strongly higher so that it is already at new highs, despite the latest dip,” he explained.

“This is viewed as strongly bullish, especially as the sector is launching into a major new uptrend. With it just starting to turn higher following the sharp dip of the past week, this looks like a great point to pick it up. This is considered to be an excellent point to add to positions or make new purchases.”

Why Now? Undervaluation, Upcoming Assays

While NevGold’s claims are large, they appear to be widely undervalued by the market. Comparable mining and exploration groups (specifically, Freeman Gold, Getchell Gold, West Vault Mining, Integra Resources, Nevada King Gold, Augusta Gold, and Liberty Gold) trade at an average EV/Resource multiple of CA$70/oz AuEq. As of this writing, NevGold trades at less than CA$15/oz AuEq, offering investors a significant (460%) immediate re-rate potential.

In addition, the publication of assay results from the new drilling at Nutmeg Mountain — expected at the beginning of March — could push the company’s in-ground holding valuation toward a rate comparable with other operations in the sector.

Ownership and Share Structure


NevGold has a market cap of roughly CA$25 million with 71,418,219 shares outstanding. The company has issued 16,947,558 CA$0.60 warrants, with 10,303,127 expiring on June 24, 2023, as well as 5,266,000 options. It also has CA$3.7 million in cash against a monthly burn rate of CA$50,000, which means it is funded to complete all of the 2023 work programs, including approximately 15,000 meters of drilling at its projects.

Insiders and directors own 32% of the company. 26% is held by strategic investors, with GoldMining Inc. holding another 19.3%. McEwen Mining holds a further 7%. The leftover 42% is in retail. 

NevGold saw over CA$150,000 of participation by insiders in its most recent financing round, which was completed in December 2022, along with a lead order from GoldMining Inc. worth CA$1.25 million.

Drilling costs are currently CA$300/meter for cores and CA$125/meter for reverse circulation.

Sign up for our FREE newsletter at:


1) Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. They members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: NevGold Corp.  Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal  disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of  NevGold Corp., a company mentioned in this article.

( Companies Mentioned: NAU:TSX.V; NAUFF:OTC; 5E50:FSE,

Generated by Feedzy