Latest price: 10.5 cents -38%
Nexus Minerals has released an exploration target and open pit mineral resource estimate for its Crusader-Templar gold deposit that has not been well received by the market. The new mineral resources estimate is focussed on the Crusader-Templar deposit and by design is restricted to the deposit accessible by open pit mining.
We are of the view the 2.57 million tonnes of ore graded at 2.12 grams per tonne (g/t) gold contains 175,000 ounces of gold at a 1g/t cut off is just the starter. Given the Crusader-Templar deposit is hosted within a broader mineralised strike that is open along strike in both directions, down plunge of higher grade shoots and has a potential for parallel lodes.
The exploration target range of 10 million tonnes to 14 million tonnes at a low grade of 1.5g/t gold to a high 1.75g/t gold and a contained gold range of 480,000 to 790,000 ounces of gold is, on the first pass mineral resource estimate readily achievable.
We consider the share price reaction is a complete miscalculation of the long-term value in the Wallbrook project. Consequently, our buy recommendation for Members with no exposure remains unchanged. We will provide Members with a full review of Nexus Minerals announcement during the coming week.
Ann: Wallbrook Exploration Target & Mineral Resource Estimate, page-272
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