Benzinga - by The Gold Report, Benzinga Contributor.
Source: Streetwise Reports 04/18/2024
To prove this out, the Canadian company plans additional exploratory work, to commence next month. Read on to learn more about this compelling project.
NevGold Corp. (OTC: NAUFF) completed a geological review and 3D model update of its newly staked Zeus project in southwestern Idaho's emerging Hercules Copper District, results of which are favorable and encouraging, the company announced in a news release.
The results from the geographical review and 3D model showed significant copper porphyry potential at the Zeus Copper Project. The project is incredibly similar to the Hercules Silver Corp. (OTC: BADEF) copper porphyry discovery at the Hercules Project.
These similarities are highlighted in the press release:
- 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
"One of the most important rules with copper porphyries is that where there is one, there are others" Carlisle Kane, editor/publisher of The Equedia Letter, wrote in an April 4 article on NevGold.
Source: NevGold
The company's recent dive into Zeus included detailed assessments of historical records, compilations and reinterpretation of numerous published geological maps, creation of a 3-D geological model, and analysis of rock chip samples collected by the NevGold Team while staking the mineral claims over the past six months.
"This has provided a major advantage in being able to rapidly advance the project" Vice President of Exploration Derick Unger said in the release.
Zeus is about 120 km northwest of its capital, Boise, in an area with existing road, water, and power infrastructure but limited modern exploration described Stephan Bogner of Rockstone Research in a March 18 initiation report.
The project is in a historically known copper-producing district in the top mining jurisdiction of Idaho, known for its geological potential, low geopolitical risk, and favorable mining regulation, taxation, and political support.
Strong Upside, Resource Growth Potential
One of them, 40 kilometers southeast of Zeus, also in Idaho, is Nutmeg Mountain, a low-sulfidation epithermal gold deposit spanning 1,724 ha. It has a current mineral resource, updated last June, of 1,006,000 ounces of 0.61 grams per ton (0.61 g/t) gold in the Indicated category and 275,000 ounces of 0.48 g/t gold in the Inferred category. The company also said Nutmeg Mountain offers significant upside for exploration.
"The asset has attractive scale" Bogner wrote in an April 4 research report.
NevGold also owns 100% of Limousine Butte, a Carlin-style gold deposit in Nevada, another top-tier mining jurisdiction. The 6,650 ha project boasts historical resources and recent intercepts on drilling of 2.19 g/t gold oxide over 61.6 meters (61.6m) and 0.86 g/t gold oxide over 175.2m, Bogner reported. Last year, NevGold created a new geological model of the project and identified a series of high-priority drill targets, including Resurrection Ridge, Cadillac Valley, West Cadillac, and Coffee Mug.
About 300 km south-southeast of Limousine Butte is Cedar Wash, the company's other asset in Nevada. Spanning 3,904 ha, this high-potential project, as described by Bogner, hosts both Carlin-style gold and gold-bearing quartz-calcite veins.
Advancing all of these projects is a group of well-qualified and skilled professionals, the company said. Together, they have 175 years of broad experience and success in the mining industry, including progressing properties from exploration to construction.
Copper on Upward Trajectory
The base metal now, according to Citi analysts, is in a bull market, its second in the 21st century, CNBC reported in an April 10 article.
Accordingly, copper prices are going up, Bogner pointed out. Since early February, copper futures prices rose 13%, to US$9,560 per ton from US$8,483.
"As having broken the resistance recently, a longer-term upward trend is anticipated" he wrote.
Of the same belief, Morgan Stanley just increased its forecast for the copper price by 12%, now expecting it to hit US$10,500 per ton by Q4/24, according to an April 10 article.
The near-term supply-demand imbalance is what is driving up copper prices, according to the investment bank. Disruptions from weather and power generation continue to hamper new copper supply, and reduced production at Chinese smelters is anticipated to likely decrease supplies of refined copper. Consequently, mined copper output in 2024 will be 0.7% lower than last year, resulting in a 700,000-ton undersupply, estimated Morgan Stanley.
Beyond this year, Citi analysts indicated in a research note they expect copper prices to keep climbing, as high as US$12,000 in 2026, noted CNBC.
"Explosive price upside is possible over the next two to three years too, if a strong cyclical recovery occurs at any time, with prices potentially rising more than two-thirds to US$15,000-plus per ton in this, our bull case scenario" the analysts wrote.
The Catalyst: Field Program
NevGold intends to carry out comprehensive surface geochemical sampling in addition to geophysics, such as magnetics, gravity, electromagnetic, controlled source audio-frequency magnetotellurics, or induced polarization. Should any potential targets be identified through these efforts, the company will then rapidly advance to drill them. [OWNERSHIP_CHART-10234]
It plans to start the work next month, in May, "as the snow melts and the conditions improve" Unger said. "The main focus now is rapidly advancing the project over the coming weeks and months."
Ownership and Share Structure
About 37% of the company is now held by strategic investors, including GoldMining Inc., which now holds 29.4% 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 7.3%, CEO Brandon Bonifacio with 6.7%, Independent Director Gregory French with 1.62%, and Independent Director Timothy Dyhr with 1.37%, 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 30M free float traded shares.
The company's market cap is CA$31.21 million. Its 52-week trading range is CA$0.24−CA$0.50 per share.
Important Disclosures: