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Nexus Minerals RC drilling at Pinnacles JV confirms high-grade gold in proposed open pit

Three specific zones targeted in the RC drill program have confirmed high-grade mineralisation, prompting the company to accelerate its project timeline to complete a feasibility study in late 2020.

Nexus Minerals Ltd - Nexus Minerals RC drilling at Pinnacles Project confirms high-grade mineralisation in proposed open pit
The Pinnacles ore would be processed via Carosue Dam under the existing JV agreement

Nexus Minerals Ltd (ASX:NXM) RC drilling has confirmed high-grade mineralisation within the proposed open pit at Pinnacles JV Gold Project in the eastern Goldfields of Western Australia.

The RC program tested three specific areas of the proposed open pit and underground operations.

New intersections from the open pit drilling (0-60 metres) include:  

  • 7 metres at 6.25 g/t from 54 metres including 4 metres at 9.68 g/t;
  • 7 metres at 3.34 g/t from 48 metres including 1-metre at 11.61 g/t; and
  • 7 metres at 3.68 g/t from 36 metres including 1-metre at 5.44 g/t.

Best intersections from the base of open-pit drilling (60-90 metres) are:

  • 9 metres at 9.51 g/t from 70 metres including 4 metres at 20.13 g/t;
  • 4 metres at 4.45 g/t from 77 metres including 1-metre at 8.26 g/t; and
  • 3 metres at 9.40 g/t from 93 metres including 2 metres at 12.73 g/t.

Intersections from underground mine drilling (90-200 metres) include:

  • 5 metres at 6.86 g/t from 99 metres including 2 metres at 13.60 g/t;
  • 8 metres at 6.40 g/t from 186 metres including 1-metre at 40.36 g/t; and
  • 3 metres at 8.72 g/t from 160 metres EOH (hole abandoned).

All RC drilling assay results have been received from this program and Nexus 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 at Pinnacles.

Pinnacles cross-section through centre of resource.

“Accelerating project timeline”

Due to the pre-existing ore sale and purchase agreement JV with Saracen Mineral Holdings Limited (ASX:SAR), there is minimal capital expenditure required to initiate mining, with any ore mined to be processed through Saracen’s Carosue Dam Operation.

Nexus managing director Andy Tudor said: “The results received from this RC drill program have confirmed the grade profile we have modelled at the different levels of the proposed mining operation, in particular the high-grade mineralisation in the base of the proposed open-pit.

“We have also made significant advancements on the feasibility study inputs, with the end of year timeline for the completion of the study remaining our goal.

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

Pinnacles JV, Pinnacles and Wallbrook location, Eastern Goldfields, WA.

Feasibility study inputs

The feasibility study will incorporate this resource definition drilling, geotechnical drilling, environmental studies and metallurgical test work along with other key assessments and permitting.

Feasibility study inputs continue to be completed:

  • All RC drilling results received;
  • Diamond drill program completed with assay results pending;
  • Geotechnical study completed with report pending;
  • Hydro-geology study completed with report pending;
  • Metallurgical/environmental studies have commenced; and
  • Mining Proposal preparation underway.

The feasibility study is expected to be completed in late 2020.

Quick facts: Nexus Minerals Ltd

Price: 0.135 AUD

ASX:NXM
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Market Cap: $32.96 m
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Nexus Minerals says drilling at Pinnacles JV exceeded expectations

Nexus Minerals Ltd's (ASX:NXM) Andy Tudor caught up with Proactive's Andrew Scott after reporting that RC drilling has confirmed high-grade mineralisation within the proposed open pit at Pinnacles JV Gold Project in the eastern Goldfields of Western Australia. All RC drilling assay results have...

on 2/11/20

3 min read