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Nexus Minerals starts diamond drilling at Pinnacles JV Gold Project

Nexus holds 125 square kilometres of highly prospective geological terrane within a major regional structural corridor and is exploring for gold deposits.

Nexus Minerals Ltd - Nexus Minerals starts diamond drilling at Pinnacles JV Gold Project
Nexus’ chairman Paul Boyatzis (left) and managing director Andy Tudor discuss the program

Nexus Minerals Ltd (ASX:NXM) has started diamond drilling at the Pinnacles JV Gold Project in Western Australia as a part of feasibility study work.

The company also intends to start reverse circulation (RC) drilling this week at the JV project with Saracen Mineral Holdings Ltd (ASX:SAR) (OTCMKTS:SCEXF) to collect further data for the study.

Feasibility study

Consultants have been engaged to complete the feasibility study which also incorporates geotechnical, metallurgical and environmental studies that are all underway.

This work, which is expected to be completed by the end of the year, also includes preparation of a mining proposal.

The study aims to determine the open-cut potential of the Pinnacles East gold resource area while deeper mineralisation will be considered as a potential underground operation.

Low capital cost

Nexus managing director Andy Tudor said: “We are pleased with the advancements made on the feasibility study to date.

“The low capital cost of the development significantly de-risks the project metrics and accelerates the project time-line.”

Chairman Paul Boyatzis (left) and managing director Andy Tudor inspect Saracen’s Carosue Dam facilities.

Ore purchase agreement

Under an ore sale and purchase agreement with Nexus’ JV partner, Saracen will purchase ore produced at the project and process through its nearby Carosue Dam Operations Mill facility.

The Pinnacles tenement package is largely underexplored and begins less than 5 kilometres south of, and along strike from, Saracen’s multi-million-ounce Carosue Dam mining operations and operating Karari underground gold mine.

Pinnacles resources

The JV project, which covers more than 125 square kilometres of granted mining tenements, has a JORC 2012 combined mineral resource of 609,000 tonnes at 4 g/t gold for 78,000 ounces.

This includes:

  • Open pit resource of 159,000 tonnes at 2.4 g/t gold for 12,000 ounces; and
  • Underground resource of 450,000 tonnes at 4.6 g/t gold for 66,000 ounces.

Quick facts: Nexus Minerals Ltd

Price: 0.091 AUD

ASX:NXM
Market: ASX
Market Cap: $17.6 m
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Nexus Minerals launches feasibility study on Pinnacles project and looks...

Nexus Minerals Ltd's (ASX:NXM) Andy Tudor speaks to Proactive's Andrew Scott after announcing they've kicked off a feasibility study on the Pinnacles joint venture (JV) project. The study comes on the back of positive results from an independent scoping study which paves the way for the project...

on 15/7/20

2 min read