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Nexus Minerals boosts indicated gold resources at Pinnacles East by 53%

The Pinnacles East combined resource has been updated to 609,000 tonnes at 4 g/t gold for 78,000 ounces.

Nexus Minerals Ltd - Nexus Minerals increases Pinnacles East gold resource by 53% in indicated category
Nexus entered into a farm-in and JV with Saracen Mineral Holdings over the Pinnacles Gold Project in 2015

Nexus Minerals Ltd (ASX:NXM) has updated the Pinnacles East gold resource within the wider Pinnacles JV Project near Kalgoorlie with 53% now in the indicated category.

A further 22 drill holes for 2,425 metres has enabled the company to upgrade the Pinnacles East resource to 609,000 tonnes at 4 g/t gold for 78,000 ounces.

The open-pit resource is now 159,000 tonnes at 2.4 g/t for 12,000 ounces and the underground resource is 450,000 tonnes at 4.6 g/t for 66,000 ounces.

This resource from the surface down to 200 metres now contains more than 90% indicated mineral resources with additional drill hole data allowing for a more selective interpretation of the geological controls on the mineralisation.

Pinnacles East mineral resource model

Results “enhance" project

Managing director Andy Tudor said: “I am very pleased with the mineral resource in terms of both tonnes and particularly grade.

“These results, in conjunction with the current strong Australian gold price, further enhance the strength of the Pinnacles project and its ability to produce a robust and viable gold mining operation.

“Due to the pre-existing ore sales agreement with Saracen, there is very low capital expenditure required to initiate mining with any ore mined to be processed through Saracen’s Carosue Dam Operation”.

Since entering into the JV with Saracen Mineral Holdings Limited (ASX:SAR) (OTCMKTS:SCEXF), Nexus has drill tested the depth and continuity of the potential high-grade mineralisation through depth staged drill programs.

These programs have intersected mineralisation from surface to some 350 metres vertical depth and tested the strike extent of the resource.

Mining studies advancing

Nexus is determining the feasibility of the open-cut potential of the Pinnacles East gold resource area, with deeper mineralisation considered as a potential underground operation.

Consultants have been engaged to undertake a pit optimisation study and mine development plan options to assist in determining the financial viability of establishing a gold mining operation.

Due to the pre-existing ore sales agreement with Saracen, there is minimal capital expenditure required to initiate mining with ore mined to be processed through Saracen’s Carosue Dam operation.

Geotechnical, metallurgical and hydro-geological test work along with environmental baseline studies are being undertaken to assist in determining mine development options.

Nexus’ tenement package at Pinnacles is largely underexplored and begin less than 5 kilometres to the south of, and along strike from, Saracen’s more than 5 million-ounce Carosue Dam mining operations and operating Karari underground gold mine.

CEO sessions

The company will present to investors at the next Proactive CEO Sessions in Sydney on Monday, March 23 and Melbourne on Tuesday, March 24.

Other companies presenting will be Carnarvon Petroleum Limited (ASX:CVN) (FRA:CJB), De Grey Mining Limited (ASX:DEG) (OTCMKTS:DGMLF) (FRA:DGD), Calima Energy Ltd (ASX:CE1) (FRA:R1Y) and Matador Mining Ltd (ASX:MZZ).

Register now for the CEO Sessions:

Sydney on Monday, March 23

Melbourne on Tuesday, March 24

Quick facts: Nexus Minerals Ltd

Price: 0.15 AUD

ASX:NXM
Market: ASX
Market Cap: $29 m
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