GoldMining Inc. Launches Exploration at Yellowknife Gold Project Following Successful Financing
Flow-through share price of $1.34 demonstrates a ~25% premium over the previous closing price, signaling the beginning of explorations at the Yellowknife Gold Project since 2012.
Read the original press release here.
Overview of Yellowknife Gold Project
The Yellowknife Gold Project is a noteworthy site in Canada, known for housing the former Discovery Mine. This mine was once celebrated as one of the highest-grade, million-ounce gold producers in the country. The revitalization of exploration activities marks an exciting opportunity for investors and geologists alike, given its historic significance.
Private Placement Financing Details
GoldMining Inc. (TSX: GOLD; NYSE American: GLDG) recently consummated a non-brokered private placement, successfully closing a deal for 373,135 common shares qualifying as “flow-through shares.” The shares were offered at $1.34 each, generating gross proceeds of $500,000. This strategic financial maneuver allows the company to move forward with exploration endeavors at the project.
CEO’s Enthusiasm on Exploration Initiation
Alastair Still, CEO of GoldMining, expressed enthusiasm about the renewed exploration efforts. “We are thrilled to resume exploration at our 100% owned Yellowknife Gold Project. The high-grade open-pit mineral resources here, with estimated gold grades exceeding 2.0 g/t, are a significant departure from the historical underground production of over a million ounces of gold at the Discovery Mine,” he stated. The Yellowknife area has a rich history of substantial gold discoveries, contributing to its reputation within the mining industry.
*Recent interview from Gold Mining Inc. CEO Aliester Stairs
Funding Utilization for Canadian Exploration
The funds generated from the sale of flow-through shares will be allocated toward qualifying “Canadian exploration expenses,” as defined by the Income Tax Act. GoldMining aims to complete these expenditures on the Yellowknife Gold Project by December 31, 2026. It should be noted that all qualifying expenditures will be renounced in favor of the subscribers by the end of 2025, providing potential tax benefits for investors.
The Rich History and Resources of the Yellowknife Gold Project
The Yellowknife Gold Project encompasses approximately 100 kilometers of the Yellowknife Greenstone Belt, featuring multiple properties such as Ormsby, Nicholas Lake, Goodwin Lake, Clan Lake, and Big Sky. Historic data show that the Ormsby property alone produced over 1 million ounces of gold with an average production grade recognized as one of the highest in Canada. The site has undergone extensive drilling and investigation, although no exploration activities have been conducted since 2012.
Mineral Resource Estimates and Future Prospects
The total mineral resource estimate for the Yellowknife Gold Project is about 14.1 million tonnes with an average gold grade of 2.33 grams per tonne, representing approximately 1,059,000 ounces of gold in measured and indicated categories. Furthermore, an inferred resource of an additional 9.3 million tonnes at an average grade of 2.47 g/t gold exists, translating to roughly 739,000 ounces of gold. These figures underscore the potential for considerable future production, reinforcing interest from investors looking to dive into mining stocks.
Conclusion
The strategic developments at GoldMining Inc. and the Yellowknife Gold Project present an opportunity for stakeholders and investors to engage with a historically significant mining site that is undergoing renewed exploration. With a solid funding structure in place and positive geological prospects, the project stands poised to make impactful contributions to the gold mining sector. Investors interested in mining stocks should keep a close watch on this project as it unfolds, potentially leading to significant opportunities in the near future.