NxGold

Early Stage Exploration Shows Promise in Multiple Jurisdictions

This profile is part of a paid investor education campaign.*

Overview

NxGold Ltd. (TSXV:NXN) is an exploration and development company based in Vancouver targeting high grade gold deposits in tier one jurisdictions.  The Company currently has two projects one located in each of  Western Australia and Nunavut, Canada. Founded by the team behind NexGen Energy Ltd. (TSX:NXE), the Company’s Management and Board brings extensive experience in exploration, development and production.  The Company employs the same disciplined, systematic and process-driven exploration approach as was employed at NexGen which resulted in the rapid discovery and development of the Arrow uranium deposit.

The Company’s current focus is on their 80%-owned Mt. Roe Gold Project located in Australia’s Pilbara region, an area where NxGold has the advantage of holding a highly prospective land position with gold showings across the project and the potential to host a number of types of gold systems.  Flattened, rounded gold nuggets recovered at Mt.Roe are characteristic of recent gold discoveries on adjacent properties promoted by Novo Resources (TSXV:NVO), Artemis Resources (ASX:ARV) and De Grey Mining (ASX:DEG).

Exploration at Mt. Roe is underway and planned throughout the remainder of 2018 with the Company working towards uncovering a significant gold discovery in the near-term.  The Company recently completed the first property-scale mapping program on the property using recent knowledge of an evolving gold deposition model for the region. Follow up exploration is to take place for the balance of 2018.

Alongside the Mt. Roe property, NxGold also holds the Kuulu Project located immediately adjacent to Agnico-Eagle’s Meliadine Mine in Nunavut.  Both projects are found within areas particularly friendly to mining operations. The Fraser Institute, a BC-based think-tank, found that Australia and Canada lead the way in regional median investment attractiveness scores in 2017, a ranking system which grades how favorable a country is to mining operations based on factors such as its policies and security.

Company Highlights

  • NxGold directed by highly successful team behind NexGen Energy with proven track record of generating significant value for shareholders
  • Properties located in mining friendly jurisdictions as designated by the Fraser Institute
  • Possession of highly sought-after land position in the Pilbara region through their Mt. Roe project
  • Mt. Roe project showing gold nuggets akin to those found by Novo Resources, Artemis Resources and De Grey Mining
  • Exploration at Mt. Roe is currently underway
  • Tightly held share register 

Key Project: Mt. Roe Project

Located approximately 30 kilometres south of Karratha and the Port of Dampier which is one of Australia’s largest and a major port for iron ore exports, NxGold’s Mt. Roe Project sits in the promising Pilbara region of Western Australia, an area known for both its gold-producing potential and existing infrastructure. NxGold owns an 80 percent interest in the project, which spans 1,232 hectares immediately adjacent to Novo Resource’s Karratha Gold Project in a highly prospective geological setting.

The Mt. Roe project is situated on both flat and hilly terrain. Flattened and rounded nuggets were first recognized in late 2016 indicating the area has good potential for hosting gold-bearing sedimentary conglomerates at the base of Mt. Roe’s basalt hills. In a recent press release regarding the project, NxGold CEO Christopher McFadden said that metal detectors located a number of gold nuggets almost immediately. Indications from metal detectorists show traces of sedimentary conglomerates across five kilometres of continuous strike length, open to both the north and south, beneath the Mt. Roe Basalt.

The project consists of two separate properties, the Sholl and Prinsep blocks, each staked for conglomerate hosted gold targets.  The figure above shows the Sholl property looking south west.  Only the Sholl property has been evaluated to date.  With a 5km inferred trend of conglomerate / sedimentary material with nuggets sourced from the sediments there is potential to host a significant deposit of coarse gold.

Three types of nuggets have been recovered from the Sholl property: flattened, rounded ‘melon-seed’ nuggets indicative of the newly evolving conglomerate hosted gold model and as recovered from nearby projects, pale hackly nuggets indicative of close by,  narrow high-grade vein source (similar to the adjacent Silica Hills project), and a third rounded reddish population with an unknown provenance.  The picture below shows a collection of nuggets recovered by McFadden in a 30 minute period with a metal detector at the Sholl property.

Historical soil sampling indicates there are anomalous gold values on the opposite side (NW) of the valley from the conglomerate outcrops which may indicate additional sediment/conglomerate exposures, also anomalies on the other side (SE) of the basalt ridge may also indicate additional sediment/conglomerate exposures.

NxGold began mapping and data collection on the project in the spring of 2018 which it believes will help inform a plan for future trenching and drilling programs.

Discoveries so far include coarse, flattened nuggets resembling melon seeds which bear similarities to those found at nearby projects by companies such as Novo Resources at their Karratha Gold project, which hosts in-situ conglomerate gold in the form of nuggets with 96 to 98 percent gold purity. The area is sure to be highly sought after real estate, but McFadden said his company has the advantage of already having granted tenure in the area while many companies are still seeking to have their applications approved.

Kuulu Project

NxGold’s Kuulu Project in Nunavut, Canada, covers 4,174 hectares and is only 40 kilometres northwest of Rankin Inlet, located upstrike from Agnico Eagle’s (TSX:AEM) advanced Meliadine Gold Project. AEM has successfully covered most of the region with prospecting permits. Numerous clusters of quartz boulders containing high-grade gold values have been found on the property, indicating the bedrock source is also within NxGold’s land position.

Nearby findings in the region have been promising. This includes, 20 kilometres southeast of Kuulu, Agnico Eagle’s Meliadine Gold Project which has 3.4 million ounces of gold in proven and probable reserves, with 14.5 million tonnes grading 7.32 g/t gold. The project is expected to begin producing an average of 400,000 ounces of gold annually beginning in 2019.

There are three geological models for gold and nickel-copper-PGE which are legitimate projections for the potential mineralization on Kuulu: greenstone-hosted quartz carbonate vein hosted gold, iron formation/shear hosted gold and komatiite or ultramafic intrusion hosted copper-nickel-PGE deposits. NxGold is focusing its efforts on the first model which is considered the predominant source of gold in the region.

Geology

The property is believed to be bisected by the large Dickson-Pyke fault, separating volcanic and meta-sedimentary rocks known as the Eastern Fold Structure (EFS) from carbonatized and magnetically altered amphibolite, gneiss and granitoids of the Western Magnetic Linears (WML) to the west.

The EFS is projected to extend north-northwest over eight kilometres through the property’s eastern section where the broad fold structure is most likely segmented by a thrust fault near the northern claim boundary. This interpretation is supported by magnetic data collected by air which indicates weak to moderate trends.

Exploration

In sampling conducted since 2009, former owners collected 250 till samples and discovered the area that incorporates the EFS contained a till sample station density between 200 to 1,000 meters. Kuulu’s centre which extends into the WML has a broader till sample density of 500 to 1,500 meters.

From 2015 to 2016, several promising discoveries of gold-rich quartz-rich boulders and smaller stock-work float material were located in three broad areas in the EFS, known locally as the Hinge, RB and GD zones. None of twenty angular quartz veins float samples gathered in those zones show greater than one g/t gold with local highs of as much 16.8 and 38 g/t gold. Additionally, several meter scale amphibolite float boulders with pitted pervasive carbonate alteration, quartz/calcite/magnetite alteration and gold-rich quartz veining were discovered in the WML.

The Company has a Mineral Exploration Agreement (MEA) with NTI for sub-surface rights, has NIRB approval, and has obtained a Type B Water Licence allowing for the extraction of water to support a camp and drilling. It is currently waiting for renewal of surface licences over the project area from the local Inuit Association.  As a result of not yet obtaining the necessary renewals it cannot access to project to conduct exploration.  The company continues to work with the local community of Rankin Inlet to secure the required surface permits.

Management

Christopher McFadden—President, CEO and Director

Christopher McFadden is a lawyer with 21 years’ experience in exploration and mining and is currently the president & chief executive officer of NxGold Ltd. the chairman of NexGen Energy Ltd. and a director of IsoEnergy Ltd. He was previously manager, business development at Newcrest Mining Limited, and before that was head of commercial, strategy and corporate development for Tigers Realm Coal Limited, which is listed on the Australian Stock Exchange. Additionally, he was general manager, Business Development of Tigers Realm Minerals Pty Ltd and spent more than ten years with Rio Tinto in legal and business development roles.

Travis McPherson—Vice President Corporate Development

Travis McPherson has worked in the global mining sector across a variety of commodities and jurisdictions for eight years. He is currently corporate development manager at NexGen Energy and is also a senior advisor to IsoEnergy Ltd. and vice president of NxGold Ltd. Prior to NexGen, he was head of corporate development for a TSX-listed gold producer and developer where he was involved in a variety of corporate mandates including M&A as well as mine permitting, feasibility, financing and construction. He began his career in the natural resource group of an independent boutique Canadian investment bank.

He holds a Bachelor of Commerce degree from the Sauder School of Business at the University of British Columbia and is a CFA Level 2 candidate.

Janine Richardson—Chief Financial Officer

Janine Richardson is a Chartered Professional Accountant and has worked in the mining industry for over 30 years. She graduated from McMaster University with a Bachelor in Economics and has a Diploma in Accounting from Wilfred Laurier University.

She is presently the chief financial officer of IsoEnergy Ltd. on a permanent part time basis. She will continue in this role whilst also assuming responsibility for the Company. From 2010 to 2017, she was chief financial officer of Hillsborough Resources Limited, a privately-owned coal producer. Between 2006 and present, She provided financial consulting services to several publicly listed mining companies, primarily in the gold sector, including Atlantic Gold Corporation, Primero Mining Corp., Yukon-Nevada Gold Corp., Rio Alto Mining Ltd. and Goldgroup Mining Inc. From 1991 to 2006 SHe was director of group accounting at Placer Dome Inc. which then operated 17 mines across five countries. At Placer Dome Inc., she was responsible for the financial reporting of global operations and integrating new acquisitions. From 1985 to 1991 she was a manager in the audit group (mining) at Ernst & Young LLP, Toronto.

Darren Lindsay—Vice President Exploration & Development

Darren Lindsay has over 20 years of experience in mineral exploration across four continents. He has worked for both junior and senior companies, including Newmont Mining Corporation, Miramar Mining Corporation, BHP Minerals Canada Ltd. Inmet Mining Corporation, and Kodiak Exploration Limited. He was directly involved in resource expansions, belt-scale exploration and feasibility level studies of the gold deposits in Hope Bay, Nunavut.

Leigh Curyer—Chairman

Leigh Curyer has over 20 years experience in the resources and corporate sector. He is the founder, president & chief executive officer of NexGen Energy Ltd. and was previously the chief financial officer and head of corporate development of Southern Cross Resources (now Uranium One). In addition, for three years he was head of corporate development for Accord Nuclear Resource Management assessing uranium projects worldwide for First Reserve Corporation, a global energy — focused private equity and infrastructure investment firm.

He uranium project assessment experience has been focused on assets located in Canada, Australia, USA, Africa, Central Asia and Europe, incorporating operating mines, advanced development projects and exploration prospects. While chief financial officer of Southern Cross Resources (now Uranium One), he managed the exploration, permitting and feasibility study of the Honeymoon Uranium Project in South Australia, ensuring full compliance with NI43-101 reporting. He has raised over $500 million of equity in North America, US, Europe and Australia. He is a member of the Institute of Chartered Accountants Australia.

Trevor Thiele—Director

Trevor Thiele has over 30 years experience in senior finance roles in medium to large Australian ASX listed companies. He has been chief financial officer for companies involved in the agribusiness sector (Elders and Viterra) and the biotechnology sector (Bionomics). In these roles he combined his technical accounting and financial skills with commercial expertise thereby substantially contributing to the growth of each of these businesses. During this time, he was actively involved in IPOs, capital raisings, corporate restructures, mergers and acquisitions, refinancing and joint ventures.

He is currently non-executive director of a number of non-listed Australian entities, including the role of chairman of the finance & audit committee for two of these entities.

He holds a Bachelor of Arts in Accountancy from the University of South Australia and he is a member of the Institute of Chartered Accountants in Australia.

Todd Roberts—Director

Todd Roberts is the general manager institutional & corporate banking for South Australia and the Northern Territory at the Commonwealth Bank of Australia (“CBA”) and has been a chartered accountant for over 17 years. Prior to this position he was a partner in a Chartered Accounting firm and Finance Director and CFO of a private equity-backed investment.

In his current role he works with a large range of clients to achieve their strategic goals including clients in the mining sector.

He has a Bachelor of Arts in Accountancy from University of South Australia, is a fellow of the Institute of Chartered Accountants, AICD and the Governor’s Leadership Foundation, a graduate of FINSIA and is an associate of the Australian Restructuring Insolvency & Turnaround Association. He will join the Company’s Audit Committee.

He currently holds a number of community positions including being the president of the Heart Foundation in South Australia, national treasurer and board member of the National Heart Foundation, chairman of the Audit and Finance Committee and board member at Novita and is a board member of Kick Start for Kids. His previous community involvement has included being the president of the Institute of Chartered Accountants in Australia, South Australian chapter.

Richard Patricio—Director

Richard Patricio is the CEO and president of Mega Uranium Ltd. a uranium-focused investment and development company with assets in Canada and Australia. He is a qualified lawyer (Ontario) with over 15 years of experience working with and for public companies. He has built a number of mining companies with global operations and spent 10 years with a TSX-listed investment company focused in the resource and early-stage investment space. he holds and has held senior officer and director positions in several mining companies that are listed on the TSX, ASX, NYSEAMERICAN and AIM exchanges.

He received his law degree from Osgoode Hall and was called to the Ontario bar in 2000.

Karl Laufmann—Director

Karl Laufmann has worked in financial markets for the past 25 years, holding positions with Salomon Smith Barney Inc., Citigroup Inc. and HSBC, focusing on capital raising, portfolio management and corporate advisory mandates. Through his career, he has advised and funded several ASX resource companies from early stage venture capital, through to IPO, and discovery. He holds an economics degree from the University of Western Australia.


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