Explorer IDs High-Grade Copper, Gold, Silver Along 4KM Trend

Source: Streetwise Reports 06/20/2024

NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) announced that it has identified high-grade copper, gold, and silver mineralization at the surface along a 4-kilometer trend at its newly staked Zeus Copper Project in Idaho. Find out why one analyst believes the stock is set to begin a major upleg.

NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) announced that it has identified high-grade copper, gold, and silver mineralization at the surface along a 4-kilometer trend at its newly staked Zeus Copper Project in Idaho.

Copper (Cu) highlights of the collected rock chip samples included 1.22%, 1.30%, 0.91%, and 0.86%; gold (Au) results included 8.19 grams per tonne (g/t), 0.19 g/t, 0.22 g/t, 0.11 g/t, and 1.03 g/t; and silver (Ag) results included 114 g/t, 21.9 g/t, 11.3 g/t, 20 g/t, and 9.9 g/t.

The project is in southwestern Idaho’s emerging Hercules Copper District, and NevGold noted the similarities between Zeus the Hercules Silver Corp.’s copper porphyry discovery at its Hercules Project.

“The initial results from sampling completed at Zeus have yielded exceptional results, further validating the copper porphyry potential at the project,” said NevGold Chief Executive Officer Brandon Bonifacio. “The initial samples were taken as our Team was completing the project claim staking, and the results have identified widespread copper-gold-silver mineralization across the entire project. . We continue to confirm that Zeus has significant copper porphyry potential and that there may be multiple target areas or a potential cluster of copper deposits at the project. We are diligently advancing other fieldwork with the goal of arriving at drill targets over the coming months.”

This is as Technical Analyst Clive Maund wrote on May 27 that he was staying long on the stock and recommended it as a Strong Buy.

A New Hercules?

For NevGold, which highlighted the similarities with the Hercules Project in April, the results were validated.

Some highlighted similarities between the projects included:

• Both projects have Triassic age plutons, the likely source of the copper porphyry
• Both projects have Olds Ferry terrane rocks, including the Hercules Rhyolite
• Both projects have a cover sequence of Izee terrane rocks, including the Weatherby Formation
• Both projects are located along the Bayhorse Thrust Fault, a major structural corridor, which places Izee Terrane rocks (Weatherby Formation) overtop of Olds Ferry terrane rocks (Huntington Formation)
• Both projects have abundant mineral occurrences and historical mine workings
• Both projects are erosional windows through the post-mineral Columbia River basalts that cover the vast majority of the Hercules Copper Trend

The company said its compilation of geologic data and initial sampling has established multiple target areas and indicates that there is widespread mineralization at the Zeus Project.

“The presence of high-grade to highly anomalous values of copper, gold, and silver confirms that the Zeus Project has strong potential to host a major porphyry copper system,” said Derick Unger, NevGold’s VP of exploration. “Additionally, the fact the mineralization is widely scattered over the entire property, in multiple target areas, suggests the possibility of a cluster of copper deposits. We plan to complete a much more detailed and systematic program of sampling and geologic mapping during this summer field season.”

Future Catalysts: Surface Exploration, Drilling

For upcoming catalysts, the company said it would continue its active exploration of Zeus in 2024 with geochemical sampling and geophysical surveys to identify drill targets over the coming months.

This is as Technical Analyst Clive Maund wrote on May 27 that he was staying long on the stock and recommended it as a Strong Buy.

NevGold is a mining explorer-developer targeting large-scale mineral systems in mining districts in Idaho and Nevada. Along with Zeus, the company owns three near-surface, heap-leachable gold projects.

One of them, 40 kilometers southeast of Zeus, also in Idaho, is Nutmeg Mountain, a low-sulfidation epithermal gold deposit spanning 1,724 hectares. It has a current mineral resource, updated last June, of 1,006,000 ounces of 0.61 g/t Au in the Indicated category and 275,000 ounces of 0.48 g/t Au in the Inferred category. The company also said Nutmeg Mountain offers significant upside for exploration.

NevGold also owns 100% of Limousine Butte, a Carlin-style gold deposit in Nevada, another top-tier mining jurisdiction. About 300 km south-southeast of Limousine Butte is Cedar Wash, the company’s other asset in Nevada. Spanning 3,904 hectares, this hosts both Carlin-style gold and gold-bearing quartz-calcite veins.

Analysts: More Copper Investment Needed

Copper climbed above US$10,000 a ton in May on predictions of tighter supplies and rising consumption for use in electric vehicles (EVs) and power grids in the transition to green energy. It was US$9,100 per ton on today, June 20.

Copper climbed above US$10,000 a ton in May on predictions of tighter supplies and rising consumption for use in electric vehicles (EVs) and power grids in the transition to green energy. It was US$9,100 per ton on today, June 20.

EVs use more than three times as much copper as gas-burning cars. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles in the long term, analysts have said.

BMI analysts believe copper deficits could grow at an extreme pace over the coming decade as the clean energy revolution takes hold, predicting prices of US$11,500 per ton by 2032.

“In the longer term, we expect the copper market to remain in deficit as the green transition accelerates along with the demand for ‘green’ metals, including copper,” BMI’s analysts said, according to Stockhead.

“Based on industry-wide capital intensity data, we calculate that some US$196 billion of investment will be required,” a market analysis issued by RFC Ambrian said.

An S&P report called copper “one of the most underappreciated critical minerals.” [OWNERSHIP_CHART-10234]

“Deeper electrification requires wires, and wires are primarily made from copper,” the report said.

Ownership and Share Structure

About 37% of the company is now held by strategic investors, including GoldMining Inc., which now holds 28.4% of the company on an undiluted basis, and McEwen Mining Inc.

The company said about 30% is held by management and insiders. According to Reuters, these include Non-Executive Chairman Giulio T. Bonifacio with 5.26%, CEO Brandon Bonifacio with 4.83%, Independent Director Gregory French with 1.17%, and Independent Director Timothy Dyhr with 1.02%, Reuters said.

About 10% is held by institutions, and the rest is in retail.

As for its share structure, NevGold has 93.91M outstanding shares and 53.63 million free-float traded shares.

The company’s market cap is CA$38.5 million. Its 52-week trading range is CA$0.24−CA$0.50 per share.

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Important Disclosures:

1. NevGold Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. 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.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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