Gold Project Delivers 61.22 g/t Hit as Key Drill Program Reports Initial Results

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) reported initial results from its Reverse Circulation infill drill program at the Goldboro Gold Project in Nova Scotia, with drilling returning multiple high-grade gold intersections as the company continues work on a program designed to provide a higher-density understanding of the deposit ahead of a planned investment decision later this year.

The RC Infill Drill Program comprises up to 30,000 meters in 600 drill holes focused on the fully-permitted Goldboro Deposit in Nova Scotia, Canada. The program targets specific areas of the Goldboro Mineral Resource at a nominal drill spacing of 12.5 meters and to depths of 50 meters, with an emphasis on areas expected to be mined during the project's first years of planned production.

The company said the program is more than 65% complete. Results reported in the release represent 3,265 meters of drilling from 82 reverse circulation drill holes. Based on quality assurance and quality control procedures, comparisons with previous drilling and recent modeling, NexGold said the results are considered geologically representative of the deposit and confirm mineralization at a higher level of detail while remaining consistent with the grade and thickness observed in earlier diamond drilling.

Among the reported results, drill hole RC-26-073 returned 61.22 grams per tonne gold 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, while 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. Additional highlighted results included 4.02 g/t gold over 11.0 meters in drill hole RC-26-009 and 6.39 g/t gold over 4.0 meters in drill hole RC-26-068.

"The RC Infill Drill Program is progressing very well, with over 65% of the drilling complete," President, CEO, and Director Kevin Bullock said in the company news release. He added that the initial results are confirming "the location, tenor of gold grade, and thickness of mineralization at a level of detail not previously drilled at Goldboro."

According to the company, the objective of the Reverse Circulation program is to generate a high-density dataset that may ultimately be used to upgrade Mineral Resources from the Indicated to Measured category using a drilling method that more closely approximates production drilling and associated dilution. The data will be evaluated alongside more than 180,000 meters of existing diamond drilling to help inform the project's planned early years of mining.

NexGold said the RC Infill Drill Program is expected to continue into the third quarter of 2026. The company also expects the results to be incorporated into a future updated Mineral Resource Estimate that will be completed independently of the ongoing updated Feasibility Study, which is currently expected to be completed in the third quarter of 2026.

Gold Market Faces Crosscurrents

According to an article published by The Street on June 20, analysts Lina Thomas and Daan Struyven wrote that, "We are moderating our forecast for gold price appreciation for two reasons," after revising their outlook following the Federal Reserve's latest policy decision. The article stated that the analysts no longer expected interest rate cuts during 2026 and had also lowered expectations for gold exchange-traded fund inflows. Even with those revisions, the analysts described their outlook as "Structurally constructive but tactically cautious, with near-term downside risk and medium-term upside risk."

The article also stated that central bank demand had remained active. It noted that official institutions had become net buyers again in April, purchasing 19 tonnes of gold, while approximately 45% of central banks surveyed by the World Gold Council had planned to continue increasing their reserves over the following year.

In a June 23 market analysis, FOREX.com analyst Matt Simpson wrote that gold prices had been on track for a fourth consecutive monthly decline, but several indicators suggested bearish momentum had eased. He wrote that "Gold's selloff may be nearing exhaustion as futures positioning improves, bearish bets collapse and support above US$4,000 continues to hold."

Simpson stated that gold had remained above the US$4,000 level despite declining more than 10% during June, a move that exceeded historical seasonal averages. He also wrote that "Gross shorts among managed funds have fallen to their lowest level since 2022," while large speculators held their fewest short positions since January 2025. According to Simpson, open interest had edged higher in recent weeks, which "hinted at potential accumulation as gold continues to hold above the US$4,000 level."

Yahoo Finance reported on June 24 that gold futures had fallen more than 3% to trade below US$4,000 per troy ounce as the U.S. dollar strengthened and investors awaited the release of the Personal Consumption Expenditures index, the Federal Reserve's preferred measure of inflation. Ole Hansen, Saxo Bank's head of commodity strategy, wrote that "The combination of higher bond yields, a firmer dollar, and expectations that policy rates may remain elevated for longer continues to challenge investor appetite for non-yielding assets."

Hansen also stated that the US$4,000 to US$4,100 range "remains critical," adding that "A sustained break below that zone risks triggering a fresh wave of capitulation and momentum-driven selling following the sharp correction already seen from this year's record highs." Yahoo Finance reported that gold prices had declined roughly 24% since late February as investors continued to monitor inflation data, bond yields, and expectations for future Federal Reserve policy.

Analysts Remained Bullish

Research coverage remained favorable during the first quarter, with analysts maintaining positive ratings and target prices.

On February 27, Red Cloud Securities analyst Ron Stewart reiterated a Buy rating and maintained a CA$4.20 price target. That was followed on March 26 by National Bank Financial analyst Alex Terentiew, who also reiterated a Buy rating while maintaining a CA$6.00 price target.

In a June 26 research note, Red Cloud Securities analyst Ron Stewart stated that results from 82 reverse circulation drill holes, totaling 3,265 meters, confirmed the grade and thickness previously identified through diamond drilling at the Goldboro project. Stewart highlighted the 61.22 g/t gold over 12.0 meters intercept as the most notable result from this initial batch of assays and wrote that the drilling "materially de-risk[s] initial mining" at the project. He added that the results were expected to play "a pivotal role in the final investment decision later this year," although they would not be incorporated into the feasibility study scheduled for the third quarter.

Stewart wrote that the infill program's drill spacing of up to 12.5 meters was providing detailed geological and mineralization data in the western portion of the deposit, which is planned to be mined first. He noted that the reported drilling returned an average grade of 2.06 g/t gold and a weighted average grade of 2.13 g/t gold. According to Stewart, the results would support updated resource estimates beyond the feasibility study and were "pivotal for converting 484k oz Au of inferred resources to the measured category."

Looking at development priorities, Stewart wrote that the company's 2026 focus remained on advancing Goldboro toward construction through completion of an updated mineral resource estimate and feasibility study, project financing and a final investment decision. He also noted plans for an early works construction program during the second half of 2026. Separately, Stewart discussed ongoing work at the Goliath project, including a 25,000-meter infill drilling program at the Goldlund deposit, additional exploration across the broader property package, and environmental baseline and technical studies to support permitting in collaboration with First Nation communities and other stakeholders.

Red Cloud Securities maintained its Buy (Speculative) rating and CA$4.30 per share target price. Stewart identified upcoming milestones as an updated mineral resource estimate and feasibility study at Goldboro during the second half of the year, continued exploration and permitting activities at Goliath, and Goldboro project financing and a final investment decision.

2026 Work Streams at Goldboro and Goliath

NexGold's June 2026 corporate presentation listed several 2026 development plans for Goldboro, including an updated Mineral Resource Estimate for recently completed infill drilling and an updated Feasibility Study that includes updated OpEx, capex, and gold price assumptions.

The company also listed plans to build organizational capacity through its internal team and project partners, and finalize contracting and procurement strategies.

Additional Goldboro work streams listed for 2026 include advancing detailed engineering to support construction requirements and timing, commencing procurement for long-lead equipment, finalizing project financing arrangements, and making a final investment and construction decision.

The presentation also stated that NexGold planned to initiate an early works construction program in H2 2026 to de-risk and enable a full construction ramp-up.

At the Goliath Gold Complex, in Ontario,NexGold listed a 25,000-meter infill drill program at Goldlund to improve mineral resource definition at depth and expand open-pit mineral resources. 

Ownership and Share Structure¹

Management and insiders own 2% of NexGold. Institutions and strategic investors, including Frank Giustra, who holds 5%, collectively own 66% of the company's shares.

As of June 2026, NexGold has 247.8 million shares issued and outstanding, with a market cap of CA$354.35 million.