NevGold (TSXV: NAU) has completed an exciting amalgamation by acquiring advanced stage assets from McEwen Mining (TSX: MUX) for less than US$7/oz Au (Leveraging +US$50M in historical exploration work). The company now owns 100-per-cent interest in the Limousine Butte and Cedar Wash projects in Nevada and the high-grade Ptarmigan silver/polymetallic project in southeastern British Columbia.
The company is focused on delivering multi-million-ounce deposits in safe geopolitical jurisdictions.
NevGold’s (TSX.V: NAU) Limo Butte asset is a carlin-style deposit which hosts a historic resource of 292,000oz @ 0.77 g/t au. This deposit hosts a past producing mine from 1989-1990, producing 91,000oz au of near-surface oxide gold. The current resource remains open along strike and at depth and hosts exceptional resource expansion potential. A total of 887 historical holes were drilled including both RC and core holes totaling ~120,000 meters which is included in a digital database that is being leveraged for the current drill targeting. The property consists of 821 unpatented claims (~67 sq. Km in Ely, Nevada) and is accessible via paved state Hwy. Previous high-grade historical drilling intercepted:
- 12.2m @ 6.79 g/t Au
- 25.9 @ 3.86 g/t Au, and
- 12.2m @4.85 g/t Au
NevGold has outlined a clear path to delivering on +1M ounces of near surface oxide gold by Q1-2022 and will be targeting the larger system to drive to the multi-million ounce marker.
NevGold’s (TSX.V: NAU) Cedar Wash project sits at 19.3 square Km and is one of Nevada’s latest gold discoveries. McEwen Mining (TSX: MUX) began developing the asset in 2015, drilling in 2017 proved the presence of a strong gold mineralizing system with historical intercepts of (from surface):
- 16m @ 1.36 g Au/t and
- 10.7m @ 2.0 g Au/t
This system shares similarities to one of Liberty Gold’s (TSX: LGD) assets - The Goldstrike Project in Utah. Goldstrike is a Carlin-style gold property located in Washington County, southwest Utah, with a stratigraphic and structural setting and gold mineralization like other Carlin-style gold systems in the Great Basin.
Goldstrike was an oxide, heap leach mine from 1988 to 1994. It produced ~209,000 ounces of gold and ~197,000 ounces silver from 8 million tonnes of ore at an average grade of 1.2 g/t gold from 12 shallow pits and closed due to low gold prices and lack of space on the leach pads.
The classified mineral resource estimate is quoted at a cut-off grade of 0.25 grams per tonne gold and consists of and an indicated resource of 865,000 ounces of gold at an average grade of 0.54 grams per tonne gold (49,553,000 tonnes) and an inferred resource of 274,000 ounces of gold at an averge grade of 0.52 grams per tonne gold (16,443,000).
Liberty Gold (TSX: LGD) currently trades at $382M market cap and has 7 analysts covering the company (all information based off Liberty Gold’s website).
NevGold (TSX.V: NAU) will build on the early work completed by McEwen on Cedar Wash and aggressively explore this exciting gold discovery in an underexplored part of Nevada.
NevGold’s (TSX.V: NAU) Ptarmigan asset is a 9,900-hectare land package located 50km Radium, British Colombia, and 300km from Calgary, Alberta.
The project has a rich history with well documented information dating over a 100-year period. Historical smelter records from 1959 document multiple shipments totaling 32.2 tonnes, averaging 2,638 g/t Ag (77 oz/t) and 1.7 g/t Au. High-grade ore was also reportedly produced from the Ptarmigan Mine, yielding approximately 89,000 oz of Ag, with average grades of 4,215 g/t Ag, 5.4 g/t Au, 0.58% Cu, 0.54% Pb and 0.13% Zn.
~14,000 metres of historical diamond drilling took place at Ptarmigan, with key bonanza grade drill results include:
- PT14-118: 4.6 m of 1,949 g/t Ag, 0.80 g/t Au, 0.72% Cu
- PT14-108: 1.16 m of 2,315 g/t Ag, 1.64 g/t Au, and 1.10% Cu
- PT14-128: 0.77 m of 37.3 g/t Au
- PT14-116: 1.00 m of 1,188 g/t Ag, 0.55 g/t Au, 0.45% Cu
- PT14-112: 4.57 m of 517 g/t Ag, 0.70 g/t Au, 0.27% Cu
Two styles of mineralization are found at the Ptarmigan Mine: high grade Cu-Ag-Au veins and Ag-Au-Cu massive pyrite manto type deposits. Mineralization is hosted in brecciated quartz veins and crackled dolomite developed from intensive silica flooding along north-south faults and fracture systems. Cross-faults and drag folds have played key roles in localizing subsequent sulphide mineralization.
NevGold’s (TSX.V: NAU) management team comprises of highly experienced executives and geological professionals:
Brandon Bonifacio, President, CEO, Director
Brandon Bonifacio is a mining executive with expertise in project development, mergers and acquisitions, and project evaluations with over 10 years of experience. Mr. Bonifacio was the finance director of the Norte Abierto Joint Venture (Cerro Casale/Caspiche) in the Maricunga Region, Chile and a member of the corporate development team at Goldcorp Inc. (now Newmont Corporation). Mr. Bonifacio holds a MASc – Mining Engineering and MBA from the University of Nevada, Reno and a Bachelor of Commerce - Finance from the University of British Columbia.
Giulio Bonifacio, Non-Executive Chairman
Mr. Bonifacio has over 35 years of experience in senior executive roles in the mining industry. Mr. Bonifacio is the Founder and former Director, President & CEO of Nevada Copper Corp. since its inception in 2005 until his retirement in February 2018. Among his many accomplishments Mr. Bonifacio has raised directly over $700 million through equity and project debt financings for projects of merit as well as being involved in corporate transactions aggregating more than a billion dollars. Mr. Bonifacio has led and directed efforts at every stage of development from exploration, development, permitting and construction.
Mr. Bonifacio is a Chartered Professional Accountant with extensive experience and knowledge of operations, capital markets, project finance and mergers & acquisitions. Mr. Bonifacio has held previous senior executive roles with Getty Resources Limited, TOTAL Energold Corp., an energy and gold producer and Vengold Inc., gold producer prior to founding Nevada Copper in 2005.
Mr. Bonifacio is currently Chairman and Director of CopperBank Resources; CEO & Director of Arizona Gold and Independent Director of Candente Copper Corp.
Bob McKnight, Executive VP, CFO and Corporate Development
Mr. McKnight is a mining executive with over 40 years of relevant experience in the mining industry. He has been directly involved in over $1.5 billion in project debt, equity, stream, and M&A transactions. As Executive VP and CFO of Nevada Copper Corp., Mr. McKnight has participated in the arrangement over $500 million in debt, equity, and metal stream financings for the Pumpkin Hollow Project. He holds a P.Eng., B.A.Sc., and MBA.
Eugene Toffolo, Marketing, and Investor Relations
Mr. Toffolo has over 35 years of relevant experience in the investment sector with an in-depth understanding of public companies and raising capital in the resource industry. He acts as the key with investment advisors, institutional and retail investors. He was previously VP-Investor Relations of Nevada Copper Corp.
Brandon Bonifacio, president, chief executive officer and director of Nevgold, commented: "We are thrilled to begin trading on the TSX-V, with the transaction and financing now completed. We have commenced our work programs at the Limousine Butte, Cedar Wash and Ptarmigan properties, and are looking forward to advancing our highly prospective, district-scale asset base in Nevada and British Columbia. Thank you to all of our existing and new shareholder base for the support as Nevgold enters the next chapter."
Currently NevGold (TSX.V: NAU) has ~50M shares out and is trading at $0.39 giving it a market cap of: ~$19.5M
Insiders of the company have been actively purchasing shares on the open market between $0.35-$0.40. Both the Non-Executive Chairman and the President & CEO of NevGold (TSX.V: NAU) have been buying since the 1st day of trading on June 29.
Comparable companies that have been able de-risk assets and move them along into feasibility/production stage, trade at market caps of $70M+. On completion of a multi-phase drill program, and further exploration work, proving out additional ounces at Limo Butte coupled with further discovery potential at Cedar Wash could put NevGold (TSX.V: NAU) in a significant re-rate category.