Nexus Minerals (ASX:NXM) now has all the assays in from the 2425 metre drilling program over the Pinnacles East Resource area, located near Kalgoorlie in Western Australia.
Highlights include: 6 metres at 11.46g/t gold, 7 metres at 4.64g/t gold, 25 metres at 2.33g/t gold and 17 metres at 2.25g/t gold.
The principal purpose of the drill program was to provide the necessary geotechnical information required to input into the mine potential study currently underway.
Many of the high-grade intercepts confirmed the widths and grades of previous drilling.
Pinnacles East potential
Nexus recently commenced mine studies at Pinnacles East following the engagement of consultants to undertake a resource update.
The consultants will also to assist the company in determining the potential of establishing an initial open cut pit followed by an underground gold mining operation.
This is ongoing.
Nexus held close to $6 million in cash at the end of December 2016, and with a market cap of circa $10 million, the enterprise value is $4 million.
The company remains focused on the Pinnacles joint venture and farm-in agreement with mid-tier gold producer Saracen Gold Mines (ASX:SAR).