Proactive’s Tylah Tully breaks down Just the Facts of the latest news from Nexus Minerals Ltd (ASX:NXM).
The company has launched a new underground mine study for the Pinnacles Joint Venture Gold Project, driven by a recent rise in gold prices.
Nexus holds a 90% stake in the project, while Northern Star Resources holds the remaining 10%.
The Pinnacles deposit contains a resource of 609,000 tonnes at 4 g/t gold, totalling 78,000 ounces. The underground portion accounts for 450,000 tonnes at 4.6 g/t gold, representing 66,000 ounces.
The project is just 13 kilometres from Northern Star’s Carosue Dam Processing Plant, with a sale agreement in place for Nexus to sell ore to Northern Star.
With gold prices reaching historic highs, Nexus views Pinnacles as a valuable near-term production opportunity.
Key studies, including geotechnical, groundwater and metallurgical testing, have been completed, showing recovery rates exceeding 97%. Permits are in place for a rapid and cost-effective development, if favourable economics are confirmed.
The deposit also remains open for further exploration below 300 metres. Nexus is conducting this mine study alongside a scoping study at the nearby Crusader-Templar Gold Deposit.