Limousine Butte Resource Estimate: $50M Capex
NevGold Corp.'s Limousine Butte in Nevada, USA has a Mineral Resource Estimate outlining initial capital of $50M.
NevGold Corp.'s Limousine 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 Gold US$3,000/oz and antimony US$40,000/t (used for AuEq calculations; ~30% discount to spot).
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 | — | — | — |
| Indicated | — | — | — |
| 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 |
| Total | — | — | 29,600 Sb tonnes at 0.26% Sb (M&I), 181 kozs Au (M&I); 48,100 Sb tonnes at 0.18% Sb (Inferred), 1.2 Mozs Au (Inferred) |
Our Analysis
- Initial capex
- $50M
costlier than 17% of 487 projects we track
- Study price assumption
- Gold US$3,000/oz and antimony US$40,000/t (used for AuEq calculations; ~30% discount to spot)
This sits in the middle of the pack we track, and that is the point: nothing in the numbers is an outlier in either direction. Initial capex of $50M is lower than 83% of the 487 projects in our database, which sounds like a genuine advantage until you set it against the company. At roughly 0.4x a US$136M market cap, the build is a large fraction of the entire equity value. That is the constraint that decides this project, and it is sharper here than the headline capex ranking suggests: a micro-cap cannot quietly fund a construction programme of this size, and the diversified eight-project portfolio spreads attention and capital rather than concentrating them.
The other reason to hold the ranking loosely is what backs it. This is a resource estimate, not an economic study, so the economics attached are indicative at best. There is no feasibility-level mine plan, no reserve, no engineering to underwrite the capex or the recovery assumptions. Numbers at this stage are a direction of travel, not a forecast, and they should be weighted accordingly against the peers we track, many of which carry completed studies.
Nevada is a meaningful positive: a mining-friendly jurisdiction with established permitting pathways and infrastructure reduces the execution risk that dogs comparable assets elsewhere. The study's own price assumptions, gold at US$3,000/oz and antimony at US$40,000/t for the AuEq calculations, are the sensitivity that matters most, since antimony's contribution is what separates this from a straightforward gold story. Whether the company can fund a $50M build without diluting a US$136M market cap beyond recognition is the question that decides whether any of it reaches shareholders.
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.