NexGold's Goldboro Gold Project: Infill Drilling Success Fuels Resource Growth and Project Viability

The NexGold Mining Corp.'s Goldboro Gold Project in Nova Scotia has emerged as a compelling investment opportunity following the recent success of its infill drilling program. With assays from the 25,000-meter diamond drill campaign demonstrating robust gold intersections and the discovery of new mineralized zones, the project is poised to advance toward production, bolstering its financial and technical viability.

The Infill Drilling Breakthrough

NexGold's 2025 infill drilling program, launched in January, has been a resounding success, with 42 of 140 planned holes reported as of mid-June. The results highlight consistent high-grade gold intersections, confirming the geological model's accuracy while expanding the known boundaries of the deposit. Notable highlights include:
- BR-25-504: 1.60 g/t Au over 36.80 meters, including a blistering 53.57 g/t Au over 0.60 meters.
- BR-25-484: 3.36 g/t Au over 3.60 meters, with a 14.70 g/t Au interval over 0.80 meters.
- BR-25-522: An extraordinary 25.79 g/t Au over 4.5 meters, including 227.0 g/t Au over 0.5 meters.

These results underscore the deposit's high-grade potential and the effectiveness of infill drilling in enhancing resource continuity. The program has also identified mineralization in under-sampled areas, such as the west pit, suggesting the possibility of resource expansion.

Resource Upgrade: A Catalyst for Feasibility

The infill drilling's primary goal—upgrading portions of the Inferred resource to Indicated or Measured categories—is on track. With 11.5 million ounces of gold currently estimated across all resource categories, the upcoming H2 2025 resource update could significantly boost confidence in the project's economics.

The existing feasibility study (January 2022) projects a 10.9-year mine life with average annual production of 100,000 ounces at a 2.26 g/t mill feed grade. However, the new drilling data could improve key metrics:
- NPV and IRR: Analysts estimate a post-tax NPV of $2.2 billion at a $1,800/oz gold price, with an IRR of 13%—figures that could rise with higher-grade resource upgrades.
- Capital Costs: The current $271 million C$ estimate may be refined as the resource definition improves, potentially lowering costs through optimized mine planning.

Regulatory Progress and the Path to Production

Goldboro's permitting timeline has accelerated, with a critical milestone achieved in June 2025: the Notice of Completion for its Nova Scotia Industrial Approval application. This paves the way for the final regulatory approvals needed before construction. NexGold aims to decide on construction by 2026, contingent on positive feasibility updates and financing.

The project's infrastructure plans, including access roads and power supply, remain intact. Environmental management is also advancing, with a historic tailings plan developed in collaboration with regulators, addressing legacy concerns.

Risks and Mitigants

• Permitting Delays: While regulatory progress is strong, delays could impact timelines. NexGold's proactive engagement with regulators reduces this risk.
• Gold Price Volatility: The project's economics are sensitive to gold prices. However, with global gold demand rising and geopolitical uncertainty, a sustained $1,800/oz+ price is plausible, favoring projects like Goldboro.
• Resource Estimation Uncertainty: While drilling results are positive, final assay data (due by Q3 2025) could introduce variability.

Investment Outlook: A Near-Term Development Play

NexGold's stock is undervalued relative to its potential. At current levels, it reflects a project with high upside but limited execution risk, given the drilling's success and regulatory progress. Key catalysts include:
1. H2 2025 Resource Update: Expected to boost resource confidence and refine feasibility metrics.
2. 2026 Construction Decision: A green light here would unlock the project's full value.

Recommendation: Consider a buy on NexGold, with a target price reflecting a 20% discount to its $2.2 billion NPV. Investors should monitor the Q3 assay results and regulatory approvals closely. Goldboro's scale, high-grade intersections, and advanced permitting position it as a top-tier development asset in a bullish gold market.

In conclusion, the Goldboro Gold Project is transitioning from exploration to production with momentum. NexGold's execution on drilling and permitting has laid the groundwork for a transformative 2025-2026 period, making it a compelling investment for gold-focused portfolios.