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Market: ASX
Sector: General Mining
Epic: NME
News: Latest news
Web Site: Nex Metals Explorations Ltd
Other Articles: 05-11-2009

Nex Metals Explorations Ltd

Nex Metals Explorations Ltd is an Australia-based company engaged in the exploration for gold, copper and nickel. The Company has a portfolio of exploration properties principally located in the Eastern Goldfields of Western Australia. The Company’s projects include Kalgoorlie West Project, which comprises eight granted prospecting licenses and one granted exploration license located approximately eight kilometers south west of Kalgoorlie and nine kilometers south east of the Binduli mining center; the Euro project, which comprises six tenements located approximately 10 kilometres south of Laverton, and the Randalls project comprises eight exploration licences located to the east and north east of the Bulong Anticline, a large south plunging sequence of sediments and volcanic rocks. During the fiscal year ended June 30, 2008, the Company also continued to evaluate a number of projects in South East Asia, in particular Laos, Cambodia and Thailand.
Thursday, November 19, 2009

Nex Metals make plan to expand Kookynie Gold Project

Nex Metals Explorations (ASX; NME) has developed a plan to expand the annual gold production target at the Kookynie Gold Project, located in the Menzies Shire approximately 200km north of Kalgoorlie.

Expanding on the recent JORC Resource Estimate for Phase 2, Nex says it has formulated a strategy whereby gold production can be robustly and inexpensively expanded to 100,000 ounces of gold per annum, in addition to the 15,000 Phase 1 dump leach.

The plan to produce 100,000 ounces of gold per annum is now in the Comprehensive Feasibility Study (CFS) stage. The CFS will define the development and operating parameters.

Once completed, Nex intends to expedite the development of the project.

Nex exploration director Edd Prumm said the plan allowed the company to move swiftly and inexpensively into the ranks of a mid-tier gold producer with costs at the lower end of the production scale.

"Nex believe there is potential to increase these resources along strike and down dip," Mr Prumm said.

"The existing resources have been drilled by close spaced (20m X 20m) reverse circulation (RC) drilling and the resources are from the surface to 120 metres depth as a series of horizontally stacked lodes.

The plan to expand gold production to 100,000 ounces per annum includes mining 2.25 million tonnes of ore per annum from the Admiral Butterfly area. The tonnage is comprised of 2.0 Mt of lower grade 0.86 which will go on to a heap leach and 250,000 tonnes @ 3.0 g/t which will go into a 500,000 tonne per annum CIP / CIL gold treatment plant.

The company hopes to to mine 2.25 million tonnes of ore per annum from the Orient Well area. The tonnage is comprised of 2.0Mt of lower grade 0.86 which will go on to a heap leach and 250,000 tonnes @ 3.0 g/t which will go into a 500,000 tonne per annum CIP / CIL gold treatment
plant.

Nex believe a minimum mine life of 2 years is realistic and achievable from the previously reported resources coupled with the current gold price.

The recent Resource Estimate for Phase 2 has a calculated 12.3Mt at 1.1 g/t for 432,000 ounces of gold from surface to a maximum depth of 120 metres. In addition to the quoted Resource Estimates are a number of smaller resources, Danluce, King, The Hanging Wall Lode and the East Lode.

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