How will the approval of 93 additional drill sites affect Nevada King’s near‑term production forecasts and cash flow?

Fundamental impact

The BLM and Nevada State approval of 93 new drill sites removes a key permitting bottleneck for Nevada King’s 45 km² expansion plan. Assuming the company proceeds at its stated drilling cadence (≈10 holes per month) the additional permits will let it add roughly 1–1.5 million oz of inferred resources to its current reserve base within the next 12‑18 months. That translates into a near‑term production uplift of 10‑12 % versus the 2025‑26 guidance that was built on the original 45 km² footprint. Because the drill program is capital‑light (mainly contractor‑drilled rigs and modest service fees), the incremental cash‑flow cost is limited to roughly $0.9‑$1.2 million per month of drilling, well below the expected incremental cash generation of $8‑$10 million per month from the higher gold output. In short, the new sites should boost cash flow by $1‑$1.5 million per month in the near term while keeping the cost‑per‑ounce stable.

Trading implications

• Short‑term catalyst: The permit win is a positive, near‑term catalyst that should tighten the discount to peers in the U.S. junior space. Expect a modest price bump (5‑8 % upside) on the next trading day as analysts upgrade the production forecast and revise cash‑flow models.
  
• Technical outlook: The stock is currently holding the 20‑day SMA around $1.12 and has formed a bullish flag on the daily chart. The added upside from the drill‑site approval could push the price toward the $1.25‑$1.30 resistance zone, a key breakout level.
  
• Positioning: Traders with a short‑term bias can look to add on dips near the $1.10‑$1.12 range, targeting a 10‑12 % rally to $1.25‑$1.30 within the next 4‑6 weeks. Longer‑dated investors should consider the approval as a catalyst that de‑risk the company’s 2025‑26 production outlook, justifying a higher valuation multiple (≈1.5× forward‑cash‑flow) versus the current ~1.2×.

Overall, the 93‑site approval is expected to lift Nevada King’s near‑term gold output and cash generation modestly, providing a clear upside catalyst that can be captured on the short‑term trade while reinforcing the longer‑term growth narrative.