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.
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.
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.