Here is the Fat prophet report on latest results of Nexus minerals. The report came out at 3:50 so right at the end of business hours.
Nexus MineralsNXM
NXM Snapshot
The wrong focus
Nexus Minerals shares took a tumble on Tuesday following the release of a drilling update on its Crusader-Templar prospect. We are of the view the pull back in the share price is not reflective of the results and is an opportune time to buy the stock. The latest set of assay results continue to support our view regarding the prospective nature of the Wallbrook project and especially the Crusader-Templar ground. The following image shows the region of the Wallbrook tenement with the Crusader-Templar prospects highlighted:
Source: Nexus
Nexus is amid a 30,000 metres drill campaign, with 9,775 metres already in the bag and we have reported on many occasions the success that Nexus has enjoyed. As exampled in FAT-MIN-792hole 198 returned multiple hits of (i) 64 metres graded at 1.38g/t gold from 20 metres and included an enriched zone of four metres graded at 15.25g/t gold and (ii) 28 metres graded at 1.44g/t gold form 108 metres and included an enriched zone of four metres graded at 6.23g/t gold.
The latest round of assay results continue to reinforce our view that Wallbrook is developing into a major gold deposit, with gold mineralisation over an approximate 1.6 kilometres strike. The following image shows the Crusader-Templar prospects and the known gold envelope with the latest drill results highlighted (Au – gold):
Source: Nexus
Two of the better assays from the latest round of results were hole 195 which assayed at 71 metres graded at 2.06 grams per tonne (g/t) gold from 25 metres and included a sweet zone of 29 metres graded at 4.60g/t gold and hole 198 that intersected 25 metres graded at 2.95g/t gold from 109 metres and two sweet zones of (i) ten metres graded at 4.45g/t gold and (ii) 13 metres graded at 5.17g/t gold. These are again significant results all round and were accompanied by several results of a similar ilk and Nexus is filling in the gaps with each assay released.
Nexus indicated that hole DDH#4 returned no intersections of mineralised ore but did provide an understanding of the geological setting around what it is now describing as a “very large system.”We are not concerned with this result, given the proliferation and quality of assay released to date. We note that Nexus has yet to release the assay for hole DDH#5 drilled on Crusader, described in the above image as showing visible gold in the core and is the first-time this has been encountered. We will be focussed on this result when released rather than hole DDH#4. This one hole does in no way change our view on the potential of the Wallbrook project.
Nexus Minerals has raised funds to ramp up exploration across its Wallbrook gold project and is, we believe, bringing value forward. The results, to date, 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 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 and the pace is going to accelerate again. Now Nexus is funded to advance to the next stage of developing its Wallbrook project to a full mineral resource stage we believe there is more value to come.
Consequently, we recommend Members without exposure to Nexus Resources, take advantage of the current share price weakness to acquire the stock.
