NexGold Mining (TSXV: NEXG; US-OTC: NXGCF) said it’s expanding drilling at the Goldboro project in Nova Scotia by one-third after new assays boosted confidence in the presence of near-surface mineralization. Shares rose.
Hole RC-26-147 cut 6 metres grading 12.06 grams gold per tonne from 44 metres downhole, including 1 metre of 67.41 grams gold from 47 metres, NexGold said Thursday in a statement. Another hole, RC-26-102, intersected 18 metres of 3.84 grams gold from 44 metres depth.
Based on its recent exploration success, NexGold now expects to carry out 40,000 metres of drilling at Goldboro this year, up from a previous target of 30,000 metres. Results from the expanded program, which is about 62% complete, will inform a future resource update while the company puts together an updated feasibility study scheduled for release in the third quarter. A potential construction decision could follow later this year.
The latest set of drilling results “further de-risks early-years production, mine planning and project financing expectations,” National Bank Financial mining analyst Alex Terentiew said Thursday in a note. A key takeaway is “the continued confirmation of the continuity, tenor and thickness of near-surface mineralization in areas expected to be mined early in the mine plan,” he added.
NexGold shares rose 3.4% to C$1.22 Thursday morning in Toronto, valuing the company at about C$304 million ($214 million). The stock has traded between 71¢ and C$2.4 in the past year.
Continuity and tenor
Goldboro is one of Canada’s most advanced undeveloped gold projects. Located about 175 km northeast of Halifax, it hosts two open-pit deposits.
The project is fully permitted at both the provincial and federal levels, which allows the company to focus on financing and construction planning.
Thursday’s update covers 3,420 metres across 72 reverse circulation holes from the West pit. Other notable intercepts include hole RC-26-129, which cut 10 metres of 4.13 grams gold from 11 metres depth, and hole RC-26-144, which cut 7 metres of 9.31 grams gold from 25 metres.
“I am encouraged by the results generated to date from our reverse circulation infill drill program at Goldboro,” CEO Kevin Bullock said in the statement. “The drilling continues to confirm the continuity, tenor and thickness of near-surface mineralization within the proposed West pit area at a higher level of detail.”
2024 acquisition
Goldboro became part of NexGold when the company acquired former project owner Signal Gold in late 2024. The combination created a multi-asset Canadian gold developer anchored by Goldboro and the Goliath gold complex in northwestern Ontario.
A 2022 feasibility study completed while the asset was owned by Signal outlined an operation capable of producing about 100,000 oz. gold annually over an initial mine life of about 11 years.
Based on a 5% discount rate, the study assigned Goldboro a net asset value of $328 million (C$466 million) and an after-tax internal rate of return of 26%. Rising gold prices since the study was completed have strengthened the project’s potential economics.
Goldboro holds an estimated 21.6 million measured and indicated tonnes grading 3.52 grams gold for contained metal of 2.58 million oz. gold of contained metal, according to a 2021 resource. Inferred resources are pegged at 3.18 million tonnes grading 4.73 grams gold for contained metal of 484,000 oz. gold.
