NexGold assays revive historic Nova Scotia region

Explorer NexGold Mining (TSXV: NEXG; OTCQ-X: NXGCF) says new drill results are likely to boost a resource update this year for a project in a Nova Scotia gold region dating to before Canada was born.

The company cut a highlight result of 36.8 metres grading 1.6 grams gold per tonne from 271.2 metres depth at its Goldboro project. Hole BR-25-504 also cut 32.55 metres at 0.83 gram gold from 234.5 metres downhole, NexGold said Thursday in a statement.

Toronto-based NexGold is nearing the end of a 25,000-metre drilling program at Goldboro that it expects to complete by June 30. Final assays should start flowing in through the middle of the third quarter, with a mineral resource estimate planned for the second half before a construction decision is made next year.

“We are encouraged by the results and their potential to positively impact the planned mineral resource update by providing more confidence through increased data density in certain areas of the deposit and the potential to add more mineralization in previously under-sampled intervals,” CEO Kevin Bullock said.

The Goldboro project hosts an open-pit and underground resource containing 2.3 million measured and indicated ounces gold in 22.6 million tonnes grading 3.19 grams gold per tonne, and 1.1 million inferred ounces in 11.5 million tonnes grading 2.93 grams, according to a 2021 filing.

1861 rush

Gold was first discovered in the Goldboro district in 1861, sparking a rush that led to the development of at least 14 mines and cumulative production of about 140,000 oz. before operations ceased in 1941. One of the more notable historic producers was the Boston-Richardson mine, which operated a 60-stamp mill at its peak and supported as many as 250 workers. The area’s early miners even built a short railway to haul ore and timber to a nearby mill at Gold Lake.

Interest in the Goldboro district revived in the late 20th century. Orex Exploration led exploration programs in the 1980s and 1990s, carrying out drilling and underground work, though no mine was developed. NexGold’s current work builds on that legacy, aiming to bring the historic camp back to production. The company’s focus is on tightening the geological model and updating the resource, supported by both modern drilling and decades of historical data.

NexGold, which took over Signal Gold in an all-stock deal last year to obtain Goldboro, also plans to update its feasibility study while awaiting a final decision on the Nova Scotia industrial approval. The company recently received a Notice of Completion regarding its industrial approval application.

Both permitting and technical studies are well aligned for timing a construction decision in 2026, Bullock said. Populating the mineral resource with additional geological and assay data will provide the basis of the planned feasibility study update.

Approval process

NexGold’s announcement comes as Nova Scotia works to simplify the approval process for metal mining projects once an environmental assessment has been made. Environment minister Timothy Halman said this month that his department would create a dedicated team to handle all mining files in a timely manner.

Other drill highlights released by NexGold Thursday include 0.61 gram gold per tonne over 21.8 metres from 209 metres depth in hole BR-25-507, including 6.06 grams over 0.6 metre, and 0.91 gram over 12.30 metres from 238.6 metres downhole, including 1.42 grams over 7.20 metres.

NexGold has now released 42 drill holes, representing 30% of the proposed total, from the Goldboro infill program. Results from drilling conducted in the proposed west pit “demonstrate the presence of mineralization that is consistent with previous drill results,” the company said.

Goliath project

NexGold also has the Goliath project, an open-pit and underground gold mine in northwest Ontario. The project received federal environmental approval in 2019, but permits covering tailings management, mine operations and other provincial requirements remain in progress.

The company is also advancing Indigenous consultations and negotiating agreements with local First Nations, which are essential to securing provincial authorizations. NexGold expects to complete its updated feasibility study in the second quarter of 2025, which will support its remaining permit applications.

A February 2023 prefeasibility study for the site 20 km east of Dryden outlined a 9-year mine life producing on average 109,000 oz. a year. The project’s after-tax net present value is estimated at $625 million (discounted at 5%), with a 41.1% internal rate of return.

Shares of NexGold fell 2.5% to 77¢ in Toronto by mid-Thursday, giving the company a market capitalization of about $111 million. The stock has ranged from 61¢ to $1.07 in the past year.