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Market:	ASX
Sector:	General Mining
EPIC:	NME
Latest Price:	0.09 (0.00%)
52-week High:	0.17
52-week Low:	0.08
Market Cap:	11.96M

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Nex Metals Explorations

Nex Metals Explorations (ASX: NME) has exploration interests in gold, nickel and base metals, targeting mid-tier gold production and long mine life potential.

Nex Metals Explorations boosts gold Resource by 33,000 ounces at Kookynie

Thursday, September 02, 2010

Nex Metals Explorations (ASX: NME) has reported a significant 33,000 gold ounce increase in the Mineral Resource Estimates for its fully-owned Kookynie Gold Project in Western Australia.

The estimates were completed by APEX Geoscience Ltd (independent geological consultants). APEX have calculated the resources at the previously unreported “Leipold Deposit” West of Kookynie which forms part of the proposed Phase 3 plan.

The result is a 33,000 gold ounce increase in inventory to the previous mineral resource estimate for a combined 22,180,000 tonne for 749,000 ounces with the mineral resource estimates largely shallower than 110 vertical metres from surface. Nex aims to achieve a gold inventory milestone of 1,000,000 ounces.

Ken Allen, managing director, said the company remains focussed on Phase 1 deposits with the imminent commencement of construction of the Dump Leach pad and facilities. However, Nex continues to assess which project areas can be fast tracked into production.

Pricing has been sought to re-commission the existing Orient Well CIP/CIL plant for a 300,000 tonne per annum capacity which are coming in the lower range of expectation.

The concept of the lower capacity mill is to enable Nex to then maintain a longer term outlook of the project area by weathering the traditional fluctuations in gold price through processing a higher grade feed stock which is expected from phase 3 operations (with the combination of heap leaching the lower grade bulk resources).

The Leipold deposit has a strike length of 400 metres and is drilled with close spaced Reverse Circulation (RC) drilling on an approximate 20X20m grid pattern to a depth of approximately 70 vertical metres.

The deposit displays excellent continuity along strike and down dip and dips at approximately 50 degrees to the east.

The gold mineralisation appears to have a 0 to 10m near surface depletion. The mineralisation has not been adequately drill tested along strike or closed off down dip.

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