Limousine Butte (Limo Butte) - Project Golden Bullet (Phase 2) Resource Estimate: $225M Capex
NevGold Corp.'s Limousine Butte (Limo Butte) - Project Golden Bullet (Phase 2) in Nevada, USA has a Mineral Resource Estimate outlining initial capital of $225M.
NevGold Corp.'s Limousine Butte (Limo Butte) - Project Golden Bullet (Phase 2) has reported Mineral Resource Estimate results for the gold-antimony project in Nevada, USA. It reflects NevGold Corp.'s (NAU.V) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $225M. Economics are based on AuEq based on US$3,000/oz gold and US$40,000/t antimony (~30% discount to spot); recoveries 80% Au, 75% Sb.
Production and mine plan. The project envisions an open-pit operation. Average head grade is 0.37 g/t Au (M&I) / 0.32 g/t Au (Inferred); 0.21% Sb (M&I) / 0.09% Sb (Inferred).
Resources and ownership. The company holds a 100% interest in the project.
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 | 1.0 Mt (Leach Pads) | 0.31 g/t Au, 2.80 g/t Ag, 0.26% Sb | 9,500 oz Au, 87,000 oz Ag, 2,600 t Sb |
| Total Measured & Indicated | 15.2 Mt | 0.37 g/t Au, 1.15 g/t Ag, 0.21% Sb | 181,400 oz Au, 562,200 oz Ag, 31,800 t Sb |
| Inferred | 117.5 Mt | 0.32 g/t Au, 0.61 g/t Ag, 0.09% Sb | 1,203,500 oz Au, 1,694,840 oz Ag, 75,700 t Sb |
Our Analysis
- Initial capex
- $225M
costlier than 44% of 546 projects we track
- Study price assumption
- AuEq based on US$3,000/oz gold and US$40,000/t antimony (~30% discount to spot); recoveries 80% Au, 75% Sb
- Spot gold today
- $3,898.90/oz
A US$225M initial build against a US$66M market capitalisation: the company is proposing to construct something roughly three and a half times its own value. That ratio, not the gold-antimony grades, is what governs whether this ever becomes a mine. A micro-cap cannot fund a build of that size from cash flow, and it cannot raise it quietly. The realistic routes are a heavily dilutive equity raise, a partner or offtake arrangement carrying a large share of the economics, project-level debt that would demand a feasibility study and a producing counterparty, or a sale of the asset to someone with a balance sheet. Each of those paths transfers value away from current holders, and the share count implied by an equity-led solution would be transformative.
The economics themselves are indicative rather than bankable. This is a resource estimate, not a study with capital and operating costs run through a cash-flow model, so the pricing assumptions (US$3,000/oz gold and US$40,000/t antimony, the latter at roughly a 30% discount to spot) describe how the resource was valued in situ, not what the project returns. Gold at $3,898.90/oz sits well above the assumption, which is genuine upside to any eventual economics, but it does not substitute for the missing study. Nevada is the right address, and the antimony credit is a real differentiator, yet neither shortens the distance to a funded build.
The company holds this as one of ten projects, which cuts both ways: it dilutes execution focus and makes it easier to stall or farm out, but it also means the balance sheet is not riding on this single outcome. The question that decides the investment is not the headline number. It is who writes the US$225M cheque, on what terms, and how much of the project existing shareholders still own once it clears.
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.
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