Limousine Butte (Limo Butte) Resource Estimate: $50M Capex
NevGold Corp.'s Limousine Butte (Limo Butte) in Nevada, USA has a Mineral Resource Estimate outlining initial capital of $50M.
NevGold Corp.'s Limousine Butte (Limo Butte) has reported Mineral Resource Estimate results for the antimony & gold project in Nevada, USA. It reflects NevGold Corp.'s (NAU.V) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $50M. Economics are based on AuEq based on US$3,000/oz gold and US$40,000/t antimony (~30% discount to spot); assumed recoveries 80% gold, 75% antimony.
Production and mine plan. The project envisions an open-pit (heap leach) operation.
These figures are extracted from NevGold Corp.'s technical disclosures and reflect the most recent Resource Estimate on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated (Antimony - Phase 1) | 2.3 Mt | 0.28% Sb | 6,900 Sb tonnes |
| Inferred (Antimony - Phase 1) | 0.05 Mt | 0.99% Sb | 500 Sb tonnes |
| Measured & Indicated (Antimony - Phase 2) | 9.1 Mt | 0.25% Sb | 22,700 Sb tonnes |
| Inferred (Antimony - Phase 2) | 26.5 Mt | 0.18% Sb | 47,600 Sb tonnes |
| Measured & Indicated (Gold) | 15.2 Mt | 0.37 g/t Au | 181,400 oz |
| Inferred (Gold) | 117.5 Mt | 0.32 g/t Au | 1,203,500 oz |
| Measured & Indicated (Higher grade Sb, 0.25% cutoff) | 4.8 Mt | 0.39% Sb | 18,600 Sb tonnes |
| Inferred (Higher grade Sb, 0.25% cutoff) | 3.1 Mt | 0.43% Sb | 13,000 Sb tonnes |
| Measured & Indicated (Higher grade Au, 0.45 g/t cutoff) | 3.4 Mt | 0.95 g/t Au | 103,800 oz |
| Inferred (Higher grade Au, 0.45 g/t cutoff) | 16.9 Mt | 0.83 g/t Au | 448,000 oz |
Our Analysis
- Initial capex
- $50M
costlier than 18% of 425 projects we track
- Study price assumption
- AuEq based on US$3,000/oz gold and US$40,000/t antimony (~30% discount to spot); assumed recoveries 80% gold, 75% antimony
The company’s $50M initial capex is lower than 82% of the 425 projects we track, which puts this squarely in the small-build tier. But the more telling figure is the ratio: the build cost is only about 0.2x the company’s US$222M market cap. That is the sharpest funding-risk signal here, and it cuts in the company’s favor. A micro-cap can carry this build without the dilutive overhang that sinks most development stories. The company is one of six projects we track, a diversified portfolio, so this is not a single-asset bet dressed up as a company.
The constraint is the study stage, not the scale. This is a Resource Estimate, not a PEA or a feasibility study. Any economics shown are indicative at best, and the price assumptions carry that same provisional quality: AuEq based on US$3,000/oz gold and US$40,000/t antimony, with assumed recoveries of 80% gold and 75% antimony. Those are reasonable anchors for a resource-stage screen, but they are not a mine plan. The jurisdiction, Nevada, is a quality signal that reduces permitting and operational risk, but it does not convert a resource estimate into a bankable project.
The two-sided read on the valuation gap is straightforward. The market cap is small relative to the build, which means the equity is not pricing in a financing overhang. But it also means the market is not pricing in much of the resource either, which is appropriate given the stage. The single question that decides whether this works is whether the resource estimate survives the step up to a preliminary economic assessment without a material downgrade in grade or recoveries. Until that happens, the low capex and the clean jurisdiction are interesting, but they are not yet a reason to own the stock.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.