Today, Red Cloud announced the initiation of its coverage on NeXGold Mining (NEXG.v NXGCF) with a speculative BUY rating.
Created by the merger between Treasury Metals and Blackwolf Copper and Gold in July 2024, NEXG boasts strengthened leadership, balance sheet, and capital market capabilities, targeting a path to becoming a mid-tier gold producer and enabling a strategy focused on:
- Fast-tracking the Goliath Gold Project (GGP) to production by 1Q26, with initial gold production by 1Q28.
- Exploring and expanding the GGP resource, which currently holds a reserve of 1.3M oz and a resource of 3.0M oz.
- Acquiring advanced gold development projects to grow its production base.
Including a team of seasoned mine builders, NEXG's leadership is working together with its principal investor Frank Giustra and Shawn Khunkhun who boasts capital markets expertise.
While exploration plans include a 25,000m drill campaign and new target generation on its 65km property, NEXG is planning to complete a feasibility study by Q1 2025 with initial gold production as early as Q1 2028.
Comprised of three separate gold deposits, the Goliath Gold Complex has a 1.3M ounce reserve base and 3.0M ounce resource. Having recently initiated the 25,000m property wide dirll campaign, NEXG is targeting the expansion of its resource base alongside identifying new resources.
Further, the company received federal environmental approval and has a strong partnership with the Wabigoon Lake Ojibway First Nation and NEXG's portfolio also includes the Niblack VMS project in Alaska and other prospective properties.
Based on a NAVPS5% of C$2.39/sh, which includes GGP, Niblack, and cash, offset by corporate charges and risks inherent to mining and exploration, Red Cloud has given NEXG a C$1.80 target price.
For more information, refer to the full coverage: https://cdn-ceo-ca.s3.amazonaws.com/1jdm036-20240906-NEXG-Initiation-2.pdf
Posted on Behalf of NexGold Mining Corp.