U.S. GoldMining (NASDAQ: USGO) shares jumped more than 36% on Monday to a new 12-month high at US$14.10 after the company doubled the resource at its Whistler gold-silver-copper project in Alaska.
The Anchorage-based company reported an indicated resource of 294.5 million tonnes grading 0.4 gram gold, 2 grams silver per tonne, and 0.16% copper for 3.9 million oz. gold, 19 million oz. silver and 1 billion lb. of copper metal. Whistler also holds 198 million inferred tonnes at 0.7 gram gold, 1.81 grams silver and 0.07% copper for 3.3 million oz. gold, 11.5 million oz. silver and 317 million lb. copper.
U.S. GoldMining completed its initial public offering in April 2023, netting US$20 million.
The company’s CEO, Tim Smith, says the 2023 drilling program underpinned confidence in the resource update, highlighting more shallow mineralization.
“We look forward to receiving additional results from the 2024 drill hole assays which we believe will continue to support the project’s potential to host a long-life, high-quality gold-copper-silver mine in one of the most favourable mining jurisdictions in the United States,” Smith said in a news release.
The resource builds on a 2022 estimate compiled by GoldMining, which spun out U.S. GoldMining last year to advance Whistler. It was constrained using below trailing three-year average prices for gold (US$1,850 per oz.), copper (US$4 per lb.), and silver ($23 per oz.).
The updated resource includes three porphyry deposits: Whistler, Raintree, and Island Mountain that occupy only 1% of the company’s total land holdings. The company is systematically exploring 12 additional targets within the so-called ‘Whistler Orbit,’ an area close to the current resources.
The resource estimate incorporates results from 2023 drilling, including hole WH23-03, which returned 547 metres grading 1.06 grams per tonne gold-equivalent. The 2024 drilling program, which has finished, added 4,006 metres of drilling in six holes, further confirming the continuity and potential of the high-grade core at the Whistler deposit.
The company believes the deposit’s high-grade centre offers opportunities for a low strip-ratio, and a high-grade starter pit, which could enhance early cash flow.
By late Monday, U.S. GoldMining shares were trading at US$13.00, giving it a market capitalization of US$158 million.
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