NevGold Corp. (TSXV: NAU OTCQX: NAUFF) recently announced an updated Mineral Resource Estimate for its Nutmeg Mountain gold project in southwest Idaho, highlighting an indicated resource of roughly 1,186,000 ounces of gold at an average grade of 0.50 g/t, alongside an inferred resource of 548,000 ounces at 0.34 g/t. The updated estimate is a notable step forward for the project, signaling both resource growth and promising potential for future exploration and development.
Located about 20 kilometers east of Weiser and roughly 120 kilometers northwest of Boise, the Nutmeg Mountain project sits on nearly 1,724 hectares of claims, including federal, patented, and private leases. The deposit is a low-sulphidation epithermal gold system with mineralization starting right at surface, which could simplify future mining operations. The resource is heap-leachable oxide gold, typical for open-pit projects in the western United States.
Compared to the 2023 resource estimate, NevGold has reported impressive gains: indicated tonnage climbed about 18%, while inferred resources more than doubled. These increases reflect the company’s recent drilling and exploration activities, which include over 71,000 meters of core and rotary drilling conducted so far. One key feature of the deposit is the overall low strip ratio of less than 1:1 expected for open-pit mining, a favorable factor that can reduce mining costs.
NevGold’s updated numbers also show encouraging higher-grade zones within the overall resource. By raising the cut-off grade to 0.60 g/t, the indicated resource contains about 560,000 ounces at 0.92 g/t, alongside 85,000 ounces inferred at 0.87 g/t. These higher-grade portions lie within the broader resource and remain open for expansion both near surface and potentially at depth. The mineralization is found mostly in a broad, shallow vertical interval, offering opportunities to extend the deposit downward with further drilling.
Nutmeg Mountain’s geology centers around a north-trending graben bounded by faults, where most gold occurs in silicified sandstone that has undergone multiple phases of hydrothermal alteration. The project includes four principal zones of mineralization, with the largest “Main Zone” extending approximately 1,200 meters north-south and up to 180 meters thick vertically. Other zones lie nearby and represent additional exploration targets that could further add to the resource base.
A significant part of the company’s near-term plans involves advancing the project toward a Preliminary Economic Assessment. At this stage, NevGold will conduct more metallurgical testwork and engineering studies to explore economic viability further. Current estimates assume a gold price of US$2,350 per ounce with operating costs benchmarked for heap-leach open-pit mining, including mining costs of US$2.20 per ton moved and processing plus administrative costs at US$5.50 per ton.
Beyond mineral resources, NevGold is exploring ways to reduce the environmental impact of its operations. Given Nutmeg Mountain’s location in an area with strong geothermal energy potential alongside solar and wind projects, the company is looking into partnerships that could integrate renewable energy sources and lower the project’s carbon footprint.
Key technical work was overseen by independent experts and follows National Instrument 43-101 standards, ensuring the estimates represent a reasonable prospect of eventual economic extraction. While mineral resources are not mineral reserves and have not yet demonstrated economic viability, the project’s size, grade, and favorable mining conditions make it an intriguing asset for gold development in a mining-friendly U.S. jurisdiction.
NevGold’s CEO, Brandon Bonifacio, commented on the milestone, emphasizing the asset’s quality and strong growth trajectory, as well as the broader opportunity to add high-grade mineralization through targeted exploration. With the current macroeconomic backdrop and gold market momentum in the U.S., advancing Nutmeg Mountain toward development is a timely move.
