Nexus Minerals Ltd (ASX:NXM) has identified five soil geochemical gold anomalies on the Pinnacles JV gold project 100 kilometres north east of Kalgoorlie.
The largest of the five anomalies, Pinnacles North, measures 1.6 kilometres x 300 metres and covers the central portion of the tenement.
Nexus currently has a 25% equity stake in the joint venture with its partner, a 100% owned subsidiary of mid-tier gold producer, Saracen Mineral Holdings (ASX:SAR).
Previous exploration data has identified five coincident gold arsenic soil geochemical anomalies.
A total of 853 soil samples were collected in 1993, which identified the five targets.
Between 1994 to 1998, 36 rotary air blast holes were drilled on the Pinnacles North target identifying several mineralised intersections including 3 metres at 1.13 g/t gold.
Southern Geoscience Consultants have been engaged to undertake follow up aeromagnetic data processing, imaging and interpretation.
Nexus also plan to undertake a ground induced polarisation geophysical survey in the June quarter.
Pinnacles JV gold project
The Pinnacles JV gold project is a farm-in and joint venture with Saracen whereby Nexus can earn up to 85% by spending a minimum of $200,000 per year on drilling and development over 5 years.
Nexus has the ability to accelerate the earn-in by increasing expenditure.
A 1,164 metre, 4 hole reverse circulation drill program was recently completed on the project with assay results pending.
The project has an existing JORC resource of 28,000 ounces from surface to 130 metres depth allowing for an open cut starter pit leading into a underground high grade gold mine. The resource is open in all directions.
The Pinnacles JV provides Nexus with the opportunity for near-term gold production, as it has an ore sale and purchase agreement already in place with Saracen.
Saracen has a 2.4 million tonnes per annum mill at the Carosue Dam mining operations located 13 kilometres to the north of the Pinnacles JV project.
The joint venture gives Nexus full access to Saracen's infrastructure, haul roads and camp facilities.
Nexus has resourcefully used publicly available historical exploration data to identify new exploration targets.
During the period of this historical exploration (1993-1998), the gold price was trading in the range of US$250-US$400.
Nexus shares are currently trading at $0.10, representing a circa 80% appreciation over the past 12 months.
At the end of the March quarter, the company held $5.6 million in cash and term deposits.
With a market capitalisation of circa $7 million, Nexus is 80% cash backed. Nexus remains leveraged to exploration success from the recently completed drill program, where assays are pending and the ongoing fieldwork.
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