en.Wedoany.com Reported - NexGold Mining Corp. has announced preliminary results from its reverse circulation infill drilling program at the Goldboro gold project in Nova Scotia, Canada, with multiple drill holes returning high-grade gold intersections as the company advances efforts to gain a more detailed understanding of the deposit in preparation for an investment decision later this year.
The reverse circulation infill drilling program comprises up to 600 drill holes totaling 30,000 meters, focusing on the fully permitted Goldboro deposit. The program targets specific areas of the mineral resource with a nominal drill spacing of 12.5 meters and depths of up to 50 meters, concentrating on zones expected to be mined in the early years of production.
The company stated that the program is over 65% complete. The reported results come from 82 reverse circulation drill holes totaling 3,265 meters of drilling. Based on quality assurance and quality control procedures, and comparisons with historical drilling and the latest modeling, NexGold said these results are geologically representative of the deposit, confirming mineralization at a higher level of detail while remaining consistent with the grades and thicknesses observed in earlier diamond drilling.
The reported results show that drill hole RC-26-073 returned a gold grade of 61.22 g/t over 12.0 meters, including 685 g/t gold over 1.0 meter and 36.69 g/t gold over 1.0 meter. Drill hole RC-26-037 intersected 5.85 g/t gold over 13.0 meters, including 61.2 g/t gold over 1.0 meter. Drill hole RC-26-060 returned 3.72 g/t gold over 13.0 meters, including 20.08 g/t gold over 1.0 meter and 11.83 g/t gold over 1.0 meter. Other notable results include drill hole RC-26-009 with a gold grade of 4.02 g/t over 11.0 meters, and drill hole RC-26-068 with a gold grade of 6.39 g/t over 4.0 meters.
Kevin Bullock, President, CEO, and Director of the company, stated that the reverse circulation infill drilling program is progressing well and is over 65% complete. The preliminary results confirm the location, gold grade, and mineralization thickness at Goldboro at a level of detail not previously drilled.
The company said the goal of the reverse circulation program is to generate a high-density dataset that can ultimately be used to upgrade mineral resources from the indicated category to the measured category. This data will be evaluated alongside existing diamond drilling data exceeding 180,000 meters to help inform the project's planned early-stage mining. The reverse circulation infill drilling program is expected to continue through the third quarter of 2026, and the results will be incorporated into a future updated mineral resource estimate. This estimate will be completed independently of the ongoing updated feasibility study, which is expected to be completed in the third quarter of 2026.
In the gold market, analysts noted that the market faces a mix of bullish and bearish factors. According to an article published by The Street on June 20, analysts Lina Thomas and Daan Struyven stated that following the Federal Reserve's latest policy decision, they have lowered their gold price expectations, no longer anticipate a rate cut in 2026, and have reduced their expectations for gold exchange-traded fund inflows. The analysts described the outlook as "structurally constructive but tactically cautious, with downside risks in the near term and upside risks in the medium term." However, central bank demand remains active, with official institutions net purchasing 19 tonnes of gold in April, and approximately 45% of central banks planning to continue increasing their reserves over the next year.
In a market analysis on June 23, FOREX.com analyst Matt Simpson wrote that gold prices were on track for a fourth consecutive monthly decline, but multiple indicators suggest bearish momentum has weakened. He noted that with improving futures positioning, a collapse in bearish bets, and sustained support above $4,000, the sell-off in gold may be nearing exhaustion. Although gold fell more than 10% in June, exceeding the historical seasonal average, it remained above $4,000. Total short positions held by managed funds have fallen to their lowest level since 2022, while short positions held by large speculators are at their lowest since January 2025. Open interest has risen slightly in recent weeks, suggesting potential accumulation as gold continues to hold above $4,000.
Yahoo Finance reported on June 24 that gold futures fell more than 3% to below $4,000 per troy ounce as the U.S. dollar strengthened. Ole Hansen, Head of Commodity Strategy at Saxo Bank, wrote that rising bond yields, a stronger U.S. dollar, and expectations that policy rates may remain elevated for longer continue to challenge investor interest in non-yielding assets. He also stated that the $4,000 to $4,100 range remains critical, and a sustained break below this level could trigger a new wave of panic and momentum-driven selling. Gold prices have fallen approximately 24% since late February.
In terms of analyst ratings, on February 27, Red Cloud Securities analyst Ron Stewart reiterated a Buy rating and maintained a target price of C$4.20. On March 26, National Bank Financial analyst Alex Terentiew reiterated a Buy rating and maintained a target price of C$6.00. On June 26, Ron Stewart reiterated a Buy (Speculative) rating and a target price of C$4.30 per share in his latest research report. He stated that the results from 82 reverse circulation drill holes confirmed the grades and thicknesses previously identified through diamond drilling at the Goldboro project, with the 61.22 g/t gold intersection over 12.0 meters being the most significant result. This drilling has substantially de-risked the project's early-stage mining and is expected to play a key role in the final investment decision later this year, although these results will not be included in the feasibility study planned for completion in the third quarter. The infill drilling program, with a drill spacing of 12.5 meters, is providing detailed data in the western part of the deposit, which is planned for initial mining. The reported drilling returned an average grade of 2.06 g/t gold, with a weighted average grade of 2.13 g/t gold.
Stewart noted that these results will support a resource estimate update beyond the feasibility study and are critical for converting the 484,000 ounces of inferred resources into the measured category. The company's focus for 2026 is to advance the Goldboro project into the construction phase by completing an updated mineral resource estimate and feasibility study, project financing, and a final investment decision. The company plans to initiate an early construction program in the second half of 2026. Additionally, ongoing work at the Goliath project includes a 25,000-meter infill drilling program at the Goldlund deposit, further exploration, and environmental baseline and technical studies in collaboration with First Nations communities to support permitting.
According to NexGold's corporate presentation, the 2026 development plan for Goldboro includes an updated mineral resource estimate for the infill drilling, a feasibility study incorporating updated operating costs, capital expenditures, and gold price assumptions, building organizational capacity, defining contract and procurement strategies, advancing detailed engineering, beginning procurement of long-lead equipment, completing project financing arrangements, and making a final investment and construction decision. At the Goliath gold complex in Ontario, the company lists a 25,000-meter infill drilling program at Goldlund to improve deep mineral resource definition and expand open-pit mineral resources.
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