How does this drill performance compare to recent results from regional peers and what could it mean for the stock’s valuation?
Peer‑grade comparison – The 18.16 g/t Au over 2.1 m and 6.91 g/t Au over 2.5 m intersected at Goldboro are materially higher than what the same‑stage projects in Atlantic Canada have been reporting over the past six months. For example, New Found Gold’s recent infill at the Mactaquac corridor returned ≈ 5–7 g/t Au over 2–3 m, and Osisko’s latest Renard‑East hole was ≈ 4.5 g/t Au over 2 m. Even the higher‑grade “shoots” from NovaGold’s Seabright‑East campaign (≈ 12 g/t Au over 1.8 m) fall short of NexGold’s 18 g/t punch. In short, NexGold’s grades sit in the top quartile of regional drill results, suggesting the Goldboro pit may host a more concentrated core that could upgrade a sizable portion of its inferred resource to indicated status.
Valuation implications – The drill data lifts the probability of a near‑term resource upgrade, which historically triggers a 20‑40 % multiple expansion for TSXV gold explorers with comparable market caps. Assuming the company can convert ~30 % of its 2 Moz inferred resource to indicated at an average grade uplift of 2–3 g/t, a modest 1.5 × NPV uplift (using a 20 % discount rate and a $1,800/oz price) could add roughly $30‑$45 million to enterprise value. At the current market‑cap (≈ $75 million), that translates to a forward‑looking P/E‑free valuation of $1.0‑$1.2 per share—well above today’s price (≈ $0.68). Technically, the stock has broken above its 20‑day EMA and is holding the 50‑day EMA, indicating bullish momentum; a pull‑back to the 20‑day EMA (~$0.60) could offer a lower‑risk entry.
Actionable insight – Consider initiating a position on any retracement below $0.62 with a stop‑loss near $0.53 (≈ 15 % downside). Watch for the upcoming resource‑update filing (Q4 2025) and any financing announcements; a confirmed indicated upgrade would likely push the stock toward the $0.85‑$0.95 range. Remain mindful of the typical exploration risk—commodity price volatility and the need for additional capital could temper upside if the upgrade does not materialize.