Nexus Minerals

NXM

March 9, 2022 FAT-MIN-808

AUD$0.375

Speculative

B

NXM Snapshot

Gold: it’s still there

Nexus Minerals (Nexus) shares has completed a 105 reverse circulation drill holes totalling 24,376 metres. Assays for 22 holes completed at the Crusader-Templar prospect have been returned and excitedly all these holes intersected gold mineralisation. The following image shows the region of the Wallbrook project and Nexus Minerals other projects (Au – gold):

Source: Nexus

There are 83 assays from the reverse circulation drill programme expected during March and 11 assays from the diamond drill programme as well. We certainly look forward to the release of these assays. Nexus has three reverse circulation drill rigs on site and two diamond drill rigs.

The better results from the latest assays releases for Crusader-Templar included (i) eight metres graded at 4.41 grams per tonne (g/t) from 252 metre and included an enriched zone of (i-a) three metres graded at 11.40g/t gold, (ii) 15 metres graded at2.59g/t gold from 190 metres and included an enriched zone of (ii-a)four metres graded at 6.04g/t gold and (iii) 18 metres graded at 1.48g/t gold from 62 metres and included an enriched zone of (iii-a) five metres graded at 4.20g/t gold. What is again pleasing, is these results were accompanied by several mates of a very similar ilk. The following image shows an aerial view of the Crusader-Templar prospect and drill locations:

Source: Nexus

These are outstanding results and have easily matched assay results we have reported on from previous releases. As Members can see from the above image the deposit remains open along strike and should we believe continue to deliver outstanding results. Despite the delays in laboratories return assays, the gold in the ground will not go away, it will take a little longer for it to be revealed, so patience’s is required.

Nexus has been undertaking a regional exploration programme, completing a gravity survey that has identified a new gravity low corridor. The following image shows the ground magnetics of the Wallbrook project and already identified prospects:

Source: Nexus

Members can see the from the above image the prospects already identified and the results we have reported on for the likes of the Crusader-Templar prospects in this review and earlier reviews. Nexus has identified a second structure trend approximately 1.5 kilometres from the structure that hosts Crusader-Templar prospects (black rectangle). Nexus has planned a follow-up 40,000 metres reverse circulation drill programme designed to follow priority zones identified from the first programme. Approximately 8,000 metres of the reverse circulation drill programme will explore regional prospects in the Salomon and Branches prospects. A 6,000 metres diamond drill programme at Salomon and Branches is well underway. Members can see from the above image that the Salomon and Branches prospects lay on the same structure as the now successful Crusader-Templar prospects. We certainly look forward to reviewing the results from the Salomon and Branches drilling.

As of 31 December 2021, Nexus had a cash hoard of A$21.9 million in cash and equivalents. Certainly, the latest round of results vindicate the Nexus move to raise significant funds to open its Wallbrook project up; this is, in our view, happening in spades. We have no concerns over the liquidity position of Nexus Minerals.

Nexus Minerals has raised funds to ramp up exploration across its Wallbrook gold project which is, we believe, bringing value forward. The most recent results, to date, from the Crusader-Templar prospects and reported on above certainly warrant an escalation in exploration. Nexus is planning to raise its exploration efforts by a notch or two in 2022 with a follow up 40,000 metres reverse circulation drill programme and a now underway 6,000 metres diamond drill programme. Both programmes, we expect, will bring further success for Nexus.

Crusader already hosts a 2012 mineral resource estimate of 2.2 million tonnes of ore graded at 1.22g/t gold for contained gold of 85,000 ounces. We expect this number, from the assay results released to date, will easily be upgraded.

We have seen the success that Nexus has enjoyed through having the funds available to accelerate exploration activities across its Wallbrook project the pace is going to accelerate again. We expect the next stage in the development of Nexus Mineral’s Wallbrook project will be to upgrade the current mineral resource estimate, we believe there is more value to come.

Consequently, we recommend Members without exposure to Nexus Minerals, take advantage of the current pull back in the share price to acquire the stock.