NevGold (NAU.V) released the assay results from hole NMD0004, a hole drilled on the Nutmeg Mountain gold project in Idaho. That hole intersected 41.5 meters of 0.80 g/t gold starting at surface and includes a higher grade zone of 11.3 meters containing 1.40 g/t gold. This means the remainder of the interval (30.2 meters) contains an average grade of approximately 0.62 g/t gold which should still be well above the cutoff grade. As a reminder, the cutoff grade in the 2020 historical resource estimate completed by Gold Mining (GOLD.TO, GLDG) used a cutoff grade of 0.30 g/t. The true width of the intervals is expected to be 70-90% of reported widths.
The assay results from hole NMD0004 are related to the upper portion of the hole. The hole went substantially deeper and pierced through the bottom of the historical pit as the company wants to drill-test the area right below the known pit. The lab is still working on the remaining 130 meters of the hole and we should see assay results shortly.
The company is now also working on completing a current mineral resource estimate (the most recent one is the 2020 historical resource estimate completed by Gold Mining which contained 910,000 ounces of gold in the indicated resource category and an additional 160,000 ounces in the inferred resource category). As NevGold hasn’t completed a whole lot of drilling on the property, we are curious to see if we will see any bump in the total resource at all. In any case, having a current resource estimate will make it easier for the company to discuss the project rather than having to refer to a historical resource estimate which was completed on the request of another company.
Disclosure: The author has a long position in NevGold. NevGold is a sponsor of the website. Please read our disclaimer.
