Thoughts on Nexus....While I have been disappointed with the Nexus performance in the past couple of years, I think it’s about to turnaround with a record rising Gold price, the rise in the Gold Miners Index, and Nexus expected to achieve some major milestones in order to monetise Crusader-Templar & Pinnacles. I have been reviewing the content on the Nexus website where there is a wealth of detailed information.
To me, the main game is clearly to progress the Wallbrook Project, with Bethanga not getting the hoped for results, and the NSW/VIC projects being put on the backburner as a low priority (resource permitting based on priority). The Pinnacles Joint Venture Gold Project is likely to also proceed in this current environment (609,000t @ 4.0g/t Au for 78,000oz gold).
With the Wallbrook Project (193km2), there has been some incredible drilling results as per previous announcements, and has the potential to become a Gold Camp. For the past year plus, Nexus has been focused on monetising Crusader-Templar. Several discussion have been held with Northern Star in the past (noting Crusader-Templar is on the NST Haulage road), but nothing tangible has come of this, that I am aware of.
Nexus has been very busy drilling to prove up the Crusader-Templar opportunity (MRE over 300,000 Ozs as per announcement 1 May 2024). Further drilling will determine and finalise the technical which will provide potential Joint Venture candidates and Nexus with data to determine a “Fair Value” for Crusader-Templar. It’s not cheap, but the ROI would be great for all, particularly in the present market where Gold stocks (including Explorers) are rising (as per Gold cycles).
While a potential JV/sale to NST has been discussed for quite a while, nothing concrete has eventuated. It seems to me that unless an arrangement with NST is forthcoming soon, it would make sense to canvas other strategic options including Nexus treating the proven resource itself through a 3rd party toll treatment plant (projected profit may be close to, or higher than $80M plus IMO), and other potential JVs arrangements, etc. Strategic review and options analysis is essential.
Crusader-Templar is ready to mine and get the bars of gold produced to monetise the project Shareholders.
The Nexus team has a proven track record of successful great exploration across the Wallbrook tenements (as per past drilling results), and I expect current and future drilling results to expand the resource substantially. The future is bright for Nexus where we have great tenements, proven results, competent staff, etc.
