Nexus Minerals Ltd (ASX:NXM) managing director Andy Tudor joins Proactive’s Jonathan Jackson to discuss positive results from a scoping study for open-pit mining and third-party toll treatment of the Crusader-Templar gold deposit at the Wallbrook Project, located 130 kilometres northeast of Kalgoorlie, Western Australia.
The study indicated strong project economics across varying gold prices, achieving positive outcomes above A$2,635 per ounce. At a gold price of A$3,000 per ounce, the study assessed 26% of the current gold mineral resource, estimating production of 1.5 million tonnes at 1.75 g/t, yielding an undiscounted cash surplus of A$67 million. Higher gold prices of A$3,500 and A$4,000 per ounce increased the surplus to A$106 million and A$28 million respectively.
Mining operations are planned as a Stage 1 multi-pit campaign over 28 months with a strip ratio of 16:1. Pre-mining capital and start-up costs are estimated between A$2.2 million and A$3.3 million, with total funding requirements projected between A$10 million and A$15 million. The scoping study, conducted by Minecomp Pty Ltd, lays a foundation to refine material inputs and enhance project economics.
Tudor highlighted the significant potential cash generation and further upside of the Crusader-Templar deposit, noting that only 26% of the published resource was included in the study. Nexus plans to advance permitting, regulatory processes, and explore joint venture partnerships to commercialise the project.