Junior mining companies had a tough 2022. Capital was hard to raise, and volatility and inflation sent investors searching for safe havens to protect their funds. Now in 2023, those safe havens have a decidedly golden hue to them. Inflation and economic uncertainty have led individuals, governments and businesses alike down the time-tested yellow brick road of investing in gold.
The post-pandemic gold rush has sent the price of the precious metal soaring, hovering around US $2,000 an ounce with forecasters like Goldman Sachs predicting a rise to $2,050 an ounce in the next year. Central banks are playing a key role by expanding their reserves and increasing demand, opening the door to mining companies of all sizes to increase production.
That has analysts predicting a bounce back year for junior gold mining and exploration companies and forecasting strong stock performance. And the sector is gearing up and getting back in the game.
NV Gold well positioned to capitalize on increased global demand
If gold as a commodity is a safe haven for investors, many of the countries in which it's mined are far from secure. Shaky political regimes, changing mining regulations and other factors combine to make exploration and development of a gold resource challenging. That's why NV Gold Corp. (TSXV: NVX | OTCQB: NVGLF | FSE: 8NV) is well positioned to take advantage of the current rush for gold. The Vancouver-Reno-based junior gold mining company operates in Nevada, recently rated the most gold mining friendly jurisdiction.
"Nevada is the best jurisdiction in the world – the laws established has a stable, predictable permitting process. That's why you see a lot of exploration companies in the state," says CEO, John Seaberg.
NV Gold's Nevada property portfolio consists of 21 exploration projects totaling over 53 square kilometers. The company's new management team has shifted its strategy to optimize its portfolio of projects and focus on its three highest priority targets. At the top of the list is the SW Pipe Project, located in "elephant country," just a few kilometers from the Pipeline Gold and Cortez Gold Mines in Nevada's central Cortez gold belt.
The company's drilling program this spring will see 700 to 800 meters drilled and build on promising previous work, including a mercury vapour survey that identified four outstanding anomalies. The results were so encouraging that Thomas Klein, Vice President of Exploration, sees SW Pipe as a prime candidate to be the next multi-million-ounce gold discovery in Nevada.
"I've been in Nevada for a long time and I have never seen geochemical data like this before," says Klein. "There's no doubt in my mind that we'll make a discovery."
NV Gold's Slumber, Triple T properties show huge potential
Next on the company's priority list are the Slumber and Triple T Projects. A recent technical update indicated that Slumber, located in Humboldt County, contains an estimated Exploration Target of approximately 450,000 ounces of gold. That may be just the tip of the golden iceberg.
"If you take that envelope of 450,000 ounces and from that one target and overlay it on the rest of our property, it could easily be one-and-a-half to two million ounces discovery," says Seaberg.
"We want to start drilling there next so we can determine the extension potential at Slumber."
The Triple T property in the Humboldt Range has been on the company's radar since 2009, when an initial drilling program identified two principal zones of gold mineralization. NV Gold has approval to drill 10 sites this year, with the program likely commencing in Q3.
Seaberg says staying laser-focused on the company's key properties will unlock value from the remaining projects in NV Gold's portfolio. The new management team he leads believes in a disciplined capital allocation process.
"We just completed an equity raise earmarked for our top three properties and our team is focusing their time, energy and money on them," says Seaberg.
"We're in the process of dropping some claims and canceling some lease agreements to really narrow our focus on our best properties."
The NV Gold team includes people with a wealth of experience in Nevada like Klein, who is also a member of the Geological Society of Nevada. Management wants to align with the company's shareholders to create value with every decision. And it's in their interests to do so.
"Our management owns 10% of the company, so our decisions are geared towards creating value for our shareholders because it creates value for us as well," says Seaberg.
"I'm excited about the future. I'm excited about the opportunity to create significant value for our shareholders. Our properties have the right address and the right potential based on the early stage work we've done and I think that gives us an edge."
Learn more about NV Gold on its website as well as: