Nexus Minerals - Corporate Update
Nexus Minerals (ASX:NXM) is undertaking a placement in order to accelerate drilling and development of the Pinnacles East Gold Project. Drilling is underway at Pinnacles, with results expected over the coming month. Nexus is aiming to extend the Mineral Resource to the point where it can commit to mining studies. The Company believes it is possible, using the agreement with Saracen, to bring Pinnacles into production in late 2017.
Nexus Minerals Limited (ASX: NXM) (Nexus or the Company) is pleased to advise the following corporate update.
Nexus is pursuing a capital raising via a placement of shares to fund the advancement of the Pinnacles gold project. This includes the resource drill out of the Pinnacles East resource area and associated mine development studies. The funds will also allow for the acceleration of the Company’s regional exploration program across the highly prospective 100km(2) Pinnacles tenement package (Fig 1), and working capital requirements.
Nexus has recently completed the latest Pinnacles gold resource extension drill program (see ASX release 25 July 2016). This phase 3 program continued to test the potential for depth and strike extensions to the south of, and beneath, high grade gold mineralisation identified to date. The 6 hole, 2,244m program was a combination of RC drilling, and RC drill pre-collars with Diamond core tails.
The drill holes intersected geology, alteration and structures similar to those observed in previous Nexus drilling and historic drill holes by previous operators. Drill samples have been submitted for analysis with initial results expected early September 2016. On completion of geological assessment, the results will be released.
The regional program (6 hole / 825m RC drilling), was designed to test two target areas identified by recent geological / geophysical work undertaken by the Company. Drill samples have been submitted for analysis with initial results expected late September 2016. On completion of geological assessment, these results will also be released.
Nexus has entered into a Farm-in and Joint Venture Agreement over the Pinnacles JV Gold Project with Saracen Gold Mines Pty Ltd, a subsidiary of Saracen Mineral Holdings Limited (ASX:SAR) (see ASX Release 17 September 2015). This investment is consistent with the Company strategy of investing in advanced gold exploration assets.
Nexus Minerals is a well-funded resource company with a portfolio of gold projects in Western Australia. With a capable and well-credentialed Board, assisted by an experienced management team, the Company is well placed to capitalise on opportunities as they emerge in the resource sector.
Nexus looks forward to keeping shareholders informed of any material developments.