The company is determining the feasibility of the open cut potential of the Pinnacles East resource area, with deeper mineralisation to be considered as a potential underground operation.
Nexus consultants have completed a scoping study level analysis and the study results justify committing to the next stage of exploration and development by progressing to a feasibility study this year, subject to COVID-19 restrictions).
The study will incorporate additional resource definition drilling, geotechnical drilling, environmental studies and metallurgical test work along with other key assessments and permitting.
At the end of March, the company held $2.59 million in cash and equivalents.
Combined mineral resource
Nexus said that the combined mineral resource of 609,000 tonnes at 4 g/t gold for 78,000 ounces was in line with the previous estimate of 550,000 tonnes at 4.6 g/t for 82,000 ounces.
The 22 additional drill holes drilled in December 2016 targeted zones within the previous resource outline where a greater drill density was required to convert the existing inferred ounces to indicated status.
This was achieved with the new total estimate containing 53% indicated mineral resource.
Importantly the resource from surface down to 200 metres contains 90% indicated mineral resources.
Additional drill hole data has also allowed for a more selective interpretation of the geological controls on the mineralisation.
Further geotechnical, metallurgical and hydro-geological test work in addition to environmental baseline studies, will be required to assist in determining mine development options.
Research & development
Nexus is undertaking a research and development project, aiming to develop new knowledge on the application of spectral data in the mineral exploration industry.
The project involves the experimentation of new exploration and geo-sensing techniques utilising spectral data.
Experimental activities will attempt to achieve an outcome by applying a systematic progression of work that proceeds from hypothesis to experimental phase (or phases as required), observation and evaluation, leading to logical conclusions.
This will result in the generation of new scientific knowledge.
The R&D project is being undertaken on both Nexus’ Wallbrook and Pinnacles gold projects, where relevant geological and mineralogical characteristics are known or are being characterised by Nexus, which assists in the evaluation of the new exploration technique.
Multiple project areas allow for a series of varying geological settings upon which to undertake the experimental activities and gather sufficient samples to allow logical conclusions to be reached post-analysis.
The R&D project, which started in July 2017, will be undertaken over an approximate four-year timeline, with the first two-three years mainly consisting of data collection with ongoing analysis and the final year consisting of results-based interpretation and conclusions.