ANCHORAGE, Alaska - U.S. GoldMining (NYSE:GLDG) Inc. (NASDAQ: USGO) has reported a significant upgrade to its Mineral Resource Estimate (MRE) for the Whistler Gold-Copper Project in Alaska. The updated MRE, effective September 12, 2024, reflects a 117% increase in the indicated gold equivalent ounces compared to the previous year's estimate.
The new indicated resource stands at 294 million tonnes at 0.68 grams per tonne gold equivalent, totaling 6.48 million ounces. The inferred category adds another 198 million tonnes at 0.65 grams per tonne for 4.16 million ounces. The increase is primarily due to the incorporation of the 2023 drilling results and a revised geological interpretation of the Whistler Deposit.
The 2024 MRE includes data from 43,096 meters of drilling and has been constrained using conceptual pit design shells for the Whistler deposit. The report highlights the presence of a high-grade core within the deposit, suggesting the potential for high-quality mining scenarios. The project's three deposits, Whistler, Raintree, and Island Mountain, represent about 1% of the company's land holdings, indicating substantial exploration potential in the region, referred to as the 'Whistler Orbit.'
Tim Smith, CEO of U.S. GoldMining, expressed confidence in the project's potential to host a long-life, high-quality gold-copper-silver mine. The company looks forward to additional results from the 2024 drill assays, which are expected to continue supporting the project's potential.
The updated MRE is based on revised cut-off grade assumptions and commodity price assumptions of $1,850 per ounce for gold, $4.00 per pound for copper, and $23 per ounce for silver. The report also notes that the Whistler Deposit's high-grade core offers the option to consider low strip ratio, higher-grade starter-pit scenarios.
The Whistler Project, owned entirely by U.S. GoldMining, is located 105 miles northwest of Anchorage and comprises several gold-copper porphyry deposits and exploration targets within a regional land package of approximately 53,700 acres.
This announcement is based on a press release statement and does not constitute an endorsement of U.S. GoldMining Inc. or its potential project outcomes. The company plans to file a Canadian National Instrument 43-101 technical report within 45 days.
In other recent news, US GoldMining Inc. has made significant strides in its drilling program at the Whistler Gold-Copper Project, with promising assay results from two diamond drill holes. The company's unaudited condensed consolidated interim financial statements for the recent three and six months ending May 31, 2024, have also been revealed. However, investors are advised not to base their investment decisions solely on these interim financials.
The company's 2024 drilling season, which began in late June, has yielded significant findings, including a 652.5-meter intercept at 1.00 grams per tonne gold equivalent in the Whistler Deposit. H.C. Wainwright has reacted to these developments by maintaining its Buy rating and raising its price target for the company to $24.00 from the previous $23.50.
Analysts from H.C. Wainwright have expressed confidence in the company's direction and the potential growth of its projects. This confidence is reflected in the revised price target for US GoldMining Inc., suggesting a positive outlook on the stock's value.
These are among the recent developments that continue to shape U.S. GoldMining Inc.'s trajectory. The company's ongoing exploration and development activities, coupled with its recent financial disclosures, indicate a firm actively engaged in the mining industry.
InvestingPro Insights
U.S. GoldMining Inc. (NASDAQ: USGO) has shown remarkable market performance recently, with InvestingPro data revealing a 100.19% price total return over the past month and a 72.5% return over the last three months. This aligns with the company's positive news regarding the significant upgrade to its Mineral Resource Estimate for the Whistler Gold-Copper Project.
Despite the promising resource estimates, InvestingPro Tips highlight that U.S. GoldMining is not currently profitable, with an adjusted operating income of -$9.78 million over the last twelve months. This is not uncommon for exploration-stage mining companies, which often require substantial investment before generating revenue.
The company's Price to Book ratio of 10.51 suggests that investors are placing a high premium on its future potential, likely influenced by the expanded resource estimates and exploration prospects mentioned in the article. However, it's worth noting that analysts do not anticipate the company to be profitable this year, according to another InvestingPro Tip.
For investors interested in a deeper analysis, InvestingPro offers 8 additional tips for U.S. GoldMining, providing a more comprehensive view of the company's financial health and market position.
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