Nexus Minerals (ASX:NXM) has announed a 193% increase in the Pinnacles East Mineral Resource to 550,000t at 4.6g/t Au for 82,000 ounces. The Company has quickly moved to firm up the mining economics with mine optimisation and development studies underway. The JV with Saracen provides Nexus with a low cost avenue to developing Pinnacles East as a near term opportunity at very low capital cost.
HIGHLIGHTS
- Pinnacles East JORC 2012 Mineral Resource updated to: 550,000t @ 4.6g/tAu for 82,000 ounces
- Resource ounces increased by 193% over previous estimate
- Resource grade increased by 120% over previous estimate
- Nexus discovery cost <$10/resource ounce
- Project mine optimisation and development studies underway
Nexus Minerals Limited (ASX: NXM) (Nexus or the Company) is pleased to announce the successful completion of a mineral resource upgrade on the Pinnacles East gold resource area, within the Pinnacles JV gold project, located in the Eastern Goldfields, 120km northeast of Kalgoorlie.
The updated JORC 2012 mineral resource of 550,000t @ 4.6g/t Au for 82,000 ounces is a 193% increase above the previous Saracen Mineral Holdings (Saracen) JORC 2012 mineral resource of 413,000t @ 2.1t/t Au for 28,000 ounces.
The additional drilling undertaken by Nexus over the last 12 months has allowed the previous resource model to be extended to a depth of 350m, approximately 220m deeper than the previous estimate, resulting in the tonnage increasing to 550,000t, up from 413,000t. The additional drill hole data has also allowed for a more selective interpretation of the geological controls on the mineralisation, resulting in the increase of the mineral resource grade to 4.6g/t Au, up from 2.1g/t Au.
Managing Director Andy Tudor said “I am very pleased with the significant increase to the mineral resource in terms of both tonnes and particularly grade. These results further enhance the strength of the Pinnacle’s project and its ability to produce a robust and viable gold mining operation. Due to the pre-existing ore sales agreement with Saracen, there is very low capital expenditure required to initiate mining, with any ore mined to be processed through Saracen’s Carosue Dam Operation”.
Further resource delineation drilling, geotechnical, metallurgical, hydrogeological test work and environmental base-line studies, will take place in the December 2016 quarter to assist in determining mine development options – by way of a combination of potential “starter” open cut mining operation / underground operation.
The Pinnacles East gold resource extension program has successfully tested for depth and strike extensions to the high grade gold mineralisation identified by previous operators. The work undertaken by Nexus in the last 12 months was a combination of RC drilling, and RC drill pre-collars with diamond core tails.
The deeper holes under the previous Pinnacles East Mineral resource (which commences at surface) were targeted to intercept mineralisation at approximately 250m and 350m vertical depth, below previous mineralised intercepts, which included 5m @ 20.9g/t Au, 4m @ 19.5g/t Au, 6m @ 17.4g/t Au and 6m @ 12.3g/t Au.
The drill programs intersected the primary structure hosting the mineralisation (Domain 1) at the depths interpreted, with the geological package of volcaniclastic sandstones, shales and conglomerates also intersected. The Pinnacles gold mineralisation is typically associated with an increase in quartz veining, chlorite alteration and increase in sulphide content.
A secondary “cigar” shaped body of mineralisation (Domain 2 Fig 3a) has also been modelled at the northern end of the main Domain 1 structure, with further drilling required to determine the geometry of the mineralised body. Only a limited number of holes have penetrated this structure with intersections to date including:
- 35m @ 3.7g/t Au
- 17m @ 2.3g/t Au
- 20m @ 1.8g/t Au
- 6m @ 2.3g/t Au and,
- 8m @ 1.5g/t Au.
In under twelve months since entering into the JV with Saracen Mineral Holdings Limited in late 2015, Nexus has drill tested the depth and continuity of the potential high grade mineralisation through a number of depth staged drill programs. The drill programs undertaken by Nexus this year achieved this objective by intersecting mineralisation from below the known resource (130m) at 250m and 350m vertical depth, as well as testing the strike extent of the resource.
These Nexus drill programs have resulted in this positive mineral resource upgrade.
