NevGold entered into an option to acquire 100% of the Nutmeg Mountain Gold Project (formerly known as Almaden) from GoldMining Inc. (TSX:GOLD, NYSE:GLDG) as announced on June 14, 2022. The remaining terms of the option agreement include a $1.5 million payment in cash or shares prior to December 31, 2023 and $0.75 million in further property expenditures in the second half of 2023.

Nutmeg is located in Western Idaho approximately 80 kilometers north-northwest of Boise and approximately 20 kilometers east of Weiser, Idaho. The project is well-located relative to road, power and water infrastructure (Figure 1).

Nutmeg is a low-sulphidation epithermal gold-silver deposit with geology similar to that of several other Western USA epithermal deposits. Nutmeg has seen over 70,000 meters of historical drilling prior to 2012 with 934 core, RC, and rotary holes (see Figure 2). 

Figure 1. Location Map

The Nutmeg property consists of approximately 1,724 hectares and comprises 210 federal unpatented lode mining claims, 12 patented claims, and 2 leases of private land. The center of the Property is at approximately 116° 42.8’W latitude with Property extending along the crest and western slopes of Nutmeg Mountain.

Historical drilling at the Project focused on defining the disseminated gold mineralization that starts at surface. This drilling was nearly all vertical and averaged less than 75 meters depth. The potential for high-grade feeder systems at depth remains virtually untested. Until Nevgold’s 2023 drill program, the last drilling at the project had occurred in 2012.

On August 17 , 2023, Nevgold SEDAR-filed an updated a Nutmeg NI 43-101 Technical Report with an effective date of June 22, 2023. The technical report includes the following Mineral Resource Estimate (“MRE”) for the Nutmeg property:

Details of the MRE assumptions can be found in the Nutmeg Technical Report filed on SEDAR.

The Nutmeg Mountain Open-Pit Constrained MRE sensitivity relative to gold cut-off grades is shown in the table below. The cutoff grade used for the MRE is highlighted.

Figure 2. Cross Section - 2023 Mineral Resource Estimate

Figure 3. Cross Section - 2023 Mineral Resource Estimate - High Grade Core

Figure 4. 2023 Mineral Resource Estimate - Resource Categories

FIgure 5. Plan View with Exploration Update

Nutmeg is located in an historic mining area and encompasses a near-surface, low-sulphidation epithermal gold deposit. The area has been explored for gold starting in 1980 with geological mapping, geochemical and geophysical surveying, several metallurgical bulk samples, and 934 historical drillholes with an aggregate length of over 70,000 meters.

The Property contains sandstones of the Payette Formation which host the majority of the mineralization defined by the 2023 Mineral Resource Estimate. Additionally, the region was host to long-lived volcanism and hosts basalts of the Columbia River and Weiser basalt groups as well as volcanic tuffs and rhyolites of presumed Miocene age. Silicious sinter deposits cap the mineralized zone. Faulting in the area consists of large scale normal faults that strike northwest and create multiple horsts blocks that are then cross-cut and offset by smaller scale east-northeast normal faults.