Nexus Minerals

NXM

September 8, 2021 FAT-MIN-784

AUD$0.245

Speculative

B

NXM Snapshot

Templar’s turn

The market has reacted positively to the latest round of assays that Nexus Minerals (Nexus) has released regarding its Templar prospect, hosted in the Wallbrook project, Western Australia. The shares surged over 60% on release of the assay results, and these continue to confirm our belief in the prospective nature of the ground at Wallbrook. The latest assays from Templar intersected high-grade gold mineralisation and point to a new gold discovery. Members will know the following image well, as it shows the region of the Wallbrook project on a geological background and the identified prospects including Templar:

Source: Nexus Minerals

Nexus Minerals continues to advance a 7,000 metres drill programme across its Wallbrook gold project, with a shift of focus to its Templar prospect. Templar has a strike length of around 800 metres and is open along strike. The latest set of assays are from 13 drill holes completed at Templar. Drilling intersected a broad and high-grade mineralised zone, that points to a new gold discovery at Templar. Importantly, Nexus has indicated the style of the Templar mineralisation is like that found at its Crusader prospect, just 1.2 kilometres away, which would suggest the two prospects could be linked.

Nexus has released the result from 13 drill holes from its Templar prospect, with some quite stunning results. The following image shows a schematic of the known mineralisation at Templar:

Source: Nexus Minerals

The Templar drill programme was designed to explore from the surface to a depth of 300 metres. The better of the assay reads included one hole with multiple hits of 23 metres graded at 2.85 grams per tonne gold (g/t) from 132 metres including an enriched zone of ten metres graded at 5.64g/t gold, six metres graded at 6.21g/t gold with an enriched zone of four metres graded at 9.24g/t gold from 90 metres and a final hit of two metres graded at 11.02g/t gold from 220 metres. These are extraordinary results and were accompanied by several holes of a similar ilk. The Templar deposit remains open at depth.

The Wallbrook gold project has certainly been the focus of exploration efforts by Nexus over the past months, and for good reason, given the constant stream of successful assays. We have reported on the success of Nexus at its Crusader prospect and now Templar has joined the party. Pleasingly, there are three identified projects still to be fully explored across the Wallbrook tenements.

As of 30 June 2021, Nexus Resources had a cash hoard of A$9.0 million and we have no concerns regarding liquidity.

First pass results from the Templar prospect drew us to Nexus Minerals (FAT-MIN-742 and this report can be viewed here) and our belief has now been completely vindicated by the current assay reads from Templar. Between then and now however, Nexus has stepped up with the Crusader prospect as well. We are of the view the Crusader prospect has the potential to form a significant gold find, and now it may not have to do all the heavy lifting alone. Drilling including deeper holes is ongoing at both Templar and Crusader.

The release of the latest Templar results has been a boon for Nexus Minerals share price, rising 60% on the news to A24 cents, at the time of writing. Despite this increase in the share price, we continue to recommend Nexus Minerals as a buy for Members with no exposure to the stock.