NevGold (NAU.V) has released the first results of a pit sampling program on its crushed leach pad and ROM leach pad zones where previously mined ore has been left behind by previous operators. As you can see below, sampling these areas has highlighted the tonnage potential and the average sampled grade. As a reminder, every 0.1% in antimony value represents 2.2 pounds of antimony. So an average grade of 0.27% Sb represents approximately 6 pounds of antimony (this is of course before taking recovery rates and payability ratios into account). As antimony prices are currently at approximately $20 per pound, it is clear the antimony is turning out to be an interesting by-product component.
2025 metallurgical test work indicated the company was able to report recoveries of up to 92%, with no impact on gold recovery rates. So even if we would use an 75% recovery rate (on average) and a 90% payability (these are just assumptions based on preliminary met work results), the net recoverable value of antimony in 0.27% rock would be around $80 (recovery rates and payability percentages will of course have to be confirmed). That’s of course a back of the envelope theoretical assumption, as the company’s approach will depend on maximizing the total value of the project. Let’s first wait for the upcoming maiden compliant resource estimate and wait for NevGold to kick off its first economic study on the project.
Having antimony present on the historical leach pads could also be a key factor to accelerate the development of the project and it sounds like the company is actively pursuing near-term cash flow scenarios. Hopefully that also means NevGold could benefit from the March 2025 Executive Order, which could indicate the Limousine Butte project may benefit from government support.
Disclosure: The author has a long position in NevGold but has sold some stock in the past few weeks. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
