'Refreshed & Gearing Up At Goliath Gold Complex' NexGold Mining (NEXG.v NXGCF) is 'Refreshed & Gearing Up At Goliath Gold Complex' with a $1.50 Target Price (Currently 0.76) - Summary of NEXG's Investment Case from Cormark Securities
Goliath Gold Complex Overview
- Merger: Following the merger between Treasury Metals and Blackwolf Copper and Gold, the Goliath Gold Complex remains NexGold’s flagship project.
- Dual Focus: The company is pursuing two key paths:
- Exploration: High-potential exploration, focusing on key areas such as Fold Nose, South Syncline, Far East (Goliath claim block), and Interlakes, Wild Cats, and Cabin Bay (Goldlund claim block).
- Permitting: Advancing provincial permitting and local approval processes for project development.
Exploration Highlights
- Initial Programs: Earlier this year, soil geochemistry, prospecting, and mapping programs were completed.
- Key Targets: Fold Nose, South Syncline, Far East on the Goliath claim block, and Interlakes, Wild Cats, Goldlund South, and Cabin Bay on the Goldlund claim block.
- Sample Highlights: At the Fold Nose area, notable results included 7.13 g/t gold over 2.00 m and 15.70 g/t gold over 0.75 m.
- Expansion: A larger field program was launched to the northeast sector of Goldlund, targeting unexplored areas like the strike extension of the Miller Deposit, Cabin Bay, and Miles targets.
25,000 m Drill Program
- Phase 1: NexGold initiated a 25,000 m drill program with an initial 4,000 m focused on the 25 km gap between the Goliath and Goldlund deposits.
- Key Targets:
- Down-dip at Goliath
- Strike extension at Goldlund
- Interlakes target between the two deposits
- Timeline: 9-12 months of drilling activity anticipated.
Investment Conclusion
- NAV and Valuation:
- NAV Estimate: C$6.00 per share, based primarily on the Goliath Gold Complex.
- NPV Calculation: NPV5% of C$446 million based on a gold price of $2,350/oz, with 30% higher assumed capex and opex.
- Fully Funded NAV: If NexGold funds 30% of capex via equity, the fully diluted NAV would be C$2.75.
- Undervalued: NexGold trades at just 0.13x the unfunded NAV (or 0.28x fully funded NAV), indicating significant upside potential.
- Key Drivers: Management is de-risking the project through ongoing exploration and permitting, supported by stronger capital markets capabilities post-merger.
Amid an extensive drill program focused on de-risking the project, NEXG is strongly poised for significant upside potential.
For more information on NEXG, refer to this deep dive: https://www.reddit.com/r/PennyStocksCanada/comments/1fr1six/video_summary_nexgold_mining_nexgv_nxgcf_aims_for/
Posted on Behalf of NexGold Mining Corp.