Sign up Australia
Proactive Investors - Run By Investors For Investors

Nexus Minerals Ltd finds more gold targets at Pinnacles

The aeromagnetic work has yielded a coherent district and local geological framework and generated multiple targets similar to the Pinnacles East resource, located north-east of Kalgoorlie.
Nexus Minerals Ltd finds more gold targets at Pinnacles

Eastern Goldfields gold explorer, Nexus Minerals Ltd (ASX:NXM) and its consultants have identified multiple targets analogous to the Pinnacles East Gold Resource that was identified – the “Pinnacles Corridor."

The “Pinnacles Corridor” target area extends 2.5 kilometres to the north and 1.5 kilometres to the south of the Pinnacles East Resource area, located north-east of Kalgoorlie.

Southern Geoscience Consultants were engaged to undertake aeromagnetic data processing, imaging and interpretation of the Pinnacles JV tenement and the surrounding Pinnacles regional tenement package.

The Pinnacles JV project is a partnership with mid-tier gold producer, Saracen Mineral Holdings (ASX:SAR) whereby Nexus can earn up to an 85% interest with a staged drilling and project development spend.
 
The aeromagnetic work has yielded a coherent district and local geological framework.

There is a suggested association between magnetic features and areas of mineralisation, the known example to date being the Pinnacles East Resource area.

Areas of exploration interest are proposed based on multiple factors culminating in “weights of evidence” anomalies.

The potential broader regional association will see further ground work and ultimately the integration of future drill hole data.


Next steps


Nexus is continuing to build geological, structural and mineralisation information of the region with interpretation models being developed.

In addition to Nexus field mapping of the JV tenement, a ground IP geophysical survey is currently being undertaken.

The program is designed to cover the targets identified by the aeromagnetic work along the “Pinnacles Corridor”.

The survey will cover the Pinnacles East resource area, to provide the operator with a base response, with the survey then being extended to cover all of the “Pinnacles Corridor” and the Pinnacles North 1.6km x 300m gold/arsenic soil anomaly.

Following the integration of all geological/geophysical/structural/geochemical inputs, drill programs will be designed to test the prospective targets identified.


Analysis


The identification of Pinnacles targets add to the potential unfolding at Pinnacles.

There is an opportunity to significantly grow the gold resource base and with it a near term production profile.

Nexus has sufficient cash to take the Pinnacles JV project to a “Decision to Mine”.

With $5.6 million cash on hand (May 2016) and a Pinnacles JV agreement with Saracen in place, the road to medium term production opportunity is significantly de-risked.

As Saracen will buy any ore produced under the JV agreement and process it at their 2.4Mtpa mill at Carosue Dam Mining Operations, just 13 kilometres to the north of the Pinnacles JV project. Nexus has full access to Saracen infrastructure, haul roads and camp facilities.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.



Register here to be notified of future NXM Company articles
View full NXM profile

Nexus Minerals Timeline

Related Articles

Danakali-Paul-Donaldson-MD-presenting-Melb-Feb-2017.jpg
February 24 2017
Paul Donaldson discussed with investors the Tier 1 Colluli Potash Project.
tiger
December 14 2016
The board is settled and the company is looking to press ahead with its various projects
potash-delivery.jpg
February 20 2017
As well as RHA and Zulu, the firm has assets in Mozambique and a stake in private firm Circum Minerals

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use