THE DRILL SERGEANT: Nexus Minerals (ASX: NXM) announced positive results from an Independent Scoping Study on the company’s Pinnacles JV gold project in Western Australia.
Nexus Minerals said the independent study, conducted by mining consultants Coverdale, provides the ability for the project to advance rapidly to the commencement of a Feasibility Study (FS).
The Scoping Study focussed on the Mineral Resource currently defined within the Pinnacles JV resource area, and has confirmed Nexus’ belief in the prospectivity of the Pinnacles JV project.
The company said the study results were positive and justify Nexus committing to the next stage of exploration and development by progressing to a Feasibility Study this year.
The Feasibility Study will incorporate additional resource definition drilling, geotechnical drilling, environmental studies and metallurgical test work along with other key assessments and permitting.
“I am very pleased to have completed this Scoping Study,” Nexus Minerals managing director Andy Tudor said in the company’s announcement to the Australian Securities Exchange.
“It has identified a clear pathway to seek to monetise the mineral resource with the company’s aim being to develop an open cut, followed by an underground mining operation.
“The mineral resource is robust in terms of both tonnes and particularly grade.
“These Scoping Study results, in conjunction with the current strong Australian gold price, further enhance the strength of the Pinnacle’s project, with the advantage of a pre-existing ore sales agreement with Saracen, with any ore mined to be processed through Saracen’s Carosue Dam Operation.”
Nexus Minerals’ tenement package at the Pinnacles gold project is largely underexplored.
It commences less than five kilometres to the south of, and along strike from, Saracen Mineral Holdings (ASX: SAR) Carosue Dam mining operations, and current operating Karari underground gold mine.
Nexus has a substantial land package of what in considers highly prospective geological terrane within a major regional structural corridor and is exploring for gold deposits.
The company consolidated the Wallbrook gold project by merging existing Nexus tenements with others acquired from both Saracen Mineral Holdings and Newmont Exploration, where it intends to further advance its gold exploration efforts.