## Is Nevada King Gold a Good Investment?
Nevada King Gold (OTCQX: NKGFF) is a Canadian mineral exploration company focused on acquiring and exploring gold projects in Nevada, USA. The company’s flagship asset is the Atlanta Mine, a past-producing gold mine located in the Walker Lane gold trend in western Nevada.
Nevada King Gold has been actively exploring the Atlanta Mine since 2016, and has reported significant drill results that have expanded the known gold mineralization at the project. In 2021, the company released a preliminary economic assessment (PEA) for the Atlanta Mine, which outlined a potential open-pit gold mine with an initial mine life of 10 years and average annual production of 120,000 ounces of gold.
The PEA also estimated that the Atlanta Mine could generate $1.3 billion in pre-tax cash flow over its initial mine life, with a payback period of 2.5 years. Based on these results, Nevada King Gold is planning to move the Atlanta Mine into production in 2023.
### Key Factors to Consider
There are several key factors to consider when evaluating Nevada King Gold as an investment:
* **Exploration Potential:** The Atlanta Mine has significant exploration potential, with multiple veins and targets still to be explored. The company is planning to continue exploration drilling in 2022 and 2023, which could lead to further expansion of the known gold mineralization.
* **Production Potential:** The PEA for the Atlanta Mine outlined a potential open-pit gold mine with an initial mine life of 10 years and average annual production of 120,000 ounces of gold. This production potential could make Nevada King Gold a significant gold producer in Nevada.
* **Financial Position:** Nevada King Gold has a strong financial position, with $12.3 million in cash and equivalents as of June 30, 2022. The company also has a $15 million credit facility available, which will provide additional funding for exploration and development activities.
* **Management Team:** Nevada King Gold has a experienced management team with a track record of success in the mining industry. The company’s CEO, Paul Cluff, is a former CEO of Barrick Gold, and has over 30 years of experience in the mining industry.
### Risks
There are also some risks to consider when investing in Nevada King Gold:
* **Exploration Risks:** The Atlanta Mine is still in the exploration stage, and there is no guarantee that the company will be able to successfully develop the project into a producing mine. Exploration drilling can be expensive and time-consuming, and there is always the risk that the company will not be able to find enough gold to make the project economically viable.
* **Production Risks:** Once the Atlanta Mine is in production, there are a number of risks that could affect the company’s ability to produce gold profitably. These risks include geopolitical risks, commodity price fluctuations, and operational risks.
* **Financial Risks:** Nevada King Gold is a small company, and it is not immune to the risks of bankruptcy or financial distress. If the company is unable to raise additional funding or if the gold price falls, the company could be forced to suspend or cease operations.
### Conclusion
Nevada King Gold is a promising gold exploration company with the potential to become a significant gold producer in Nevada. The company has a strong financial position and an experienced management team, and its Atlanta Mine has significant exploration and production potential. However, there are also some risks to consider when investing in Nevada King Gold, including exploration risks, production risks, and financial risks. Investors should carefully consider these risks before making an investment decision.
### Additional Resources
* [Nevada King Gold website](https://nevadaking.ca/)
* [Atlanta Mine PEA](https://nevadaking.ca/site/assets/files/3216/nkg_43-101_technical_report_atlanta_gold_mine__april_2021.pdf)
* [Nevada King Gold financial statements](https://nevadaking.ca/site/financial-statements/)
* [Nevada King Gold investor presentation](https://nevadaking.ca/site/assets/files/3529/nkg_corporate_presentation_june_2022.pdf)