Latest FP Report dated 24/02/2021
The Wallbrook gold project has been the scene of successful drilling over the past months, with Nexus Minerals reporting numerous outstanding assay results.Initial drilling at Wallbrook has defined a 1.6 kilometre mineralised zone that has yet to be closed off in all directions and especially at depth.News out of Nexus has been scarce of late, but the gold it has already intersected in the ground will not go away. We believe the next round of drilling, soon to get under way, will onlyfurther reinforce the prospective nature of the ground.The following image shows the Leonora Belt and the locations of Nexus Minerals projects:
Source: Nexus Minerals
As Members can see from the above image, theLeonora Belt is a who’s who of global and Australian gold producers,with many names and mines that would be familiar to Members.
Nexus has enjoyed success with drilling at its Wallbrook project, reporting gold intersections at its Crusader and Templar prospects.It was these results that drew our initial attention to Nexus Minerals.The following image shows the region of the Wallbrook project with Crusader and Templar highlighted:
Source: Nexus Minerals
Exploration at Templar has identified a 700 metre high-grade mineralisation that remains open in all directions. Past drilling at the Templar prospect, returned significant assays, including 12 metres graded at 5.04g/t gold from 39 metres which included a sweet spot of one metre graded at 57.10g/t gold.This was an excellent result, and it has mates of a similar ilk.A drill programme totalling circa 7,200 metres will get underway in early March 2021 to explore along strike and at depth around the known mineralised envelope.
Over at Crusader, a similar mineralised zone of 700 metres has also been identified and remains open in all directions as well. The following image shows a schematic of the Crusader mineralisation:
Source: Nexus Minerals
The better assay read from this prospect included 22 metres graded at 2.97 grams per tonne (g/t) gold from 96 metres and multiple sweet zones of nine metres graded at 6.89g/t gold and one metre graded at 42.59g/t gold.This is an excellent result and like Templar it has mates of a similar read across.A drill programme totalling circa 7,200 metres will get underway in early March 2021 to explore along strike and at depth around the known mineralised envelope.
These two prosects have the potential to establish a significant mineral resource, with further drilling planned to get underway in early March 2021.We believe the fresh round of drilling will continue to extend the known mineralised envelopes for both prospects,and we certainly look forward to reviewing these results as Nexus reports these to the market.
From drilling at the Branches prospect,the Crusader and Templar prospects, it would appear, are not the bookends of the mineralisation at Wallbrook.A first pass shallow drill programme identified a broad mineralised zone with high grades extending over 400 metres and like Templar and Crusader is open in all directions.
What is exciting about the Branches prospect is that all 35 holes drilled across it intersected mineralisation.The better assays from this programme returned 25 metres graded at 2.86g/t gold from 43 metres and included a sweet zone of eight metres graded at 7.59g/t gold and a super zone of one metre graded at 47.45g/t gold.This is an exceptional result, and we are of the opinion the bookend has been extended to the Branches prospect from Templar(refer to the second image above).Nexus is currently planning a future drill programme for Branches.
A prefeasibility study is underway at the Pinnacles project, with Nexus considering three development options, including two types of open cut mining and an underground operation. This work remains ongoing.
On the cash front, Nexus reported a cash total of A$10.4 million at 31 December 2020.This gives Nexus ample liquidity to turn Wallbrook into a pin cushion and we believe the rewards will come.
We were drawn to Nexus Minerals on the back of its first pass exploration results from its Templar prospect hosted in the Wallbrook project.The results from the Crusader and Templar prospects are, in our view, the embryo of a significant gold find.The region of the Laverton Belt would lend itself to a major discovery and there are hungry sharks working the same belt. We will be watching for future announcements with considerable interest.
Consequently, we reiterate our buy recommendation for Nexus Minerals for Members with no exposure to the stock.
Latest FP Report 24/02/2021
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