Nexus Minerals Ltd (ASX:NXM) has completed a geophysical survey on its Pinnacles JV project in the eastern goldfields of Western Australia.
The survey data, alongside the recently completed aeromagnetic results, has identified a number of drill ready gold targets.
Data shows a 2.5 x 0.6 kilometre anomaly, within which lies a 1.5 x 0.2 kilometre anomaly exhibiting the signature of a major intrusive related alteration system, often associated with gold mineralisation.
Drill planning is now at an advanced stage for the further testing of the Pinnacles East resource area as well as regional targets recently identified.
The Pinnacles JV project is a partnership with mid-tier gold producer, Saracen Mineral Holdings Ltd (ASX:SAR) whereby Nexus can earn up to an 85% interest with a staged drilling and project development spend.
Geophysical survey details
The Gradient Array Induced Polarisation (GAIP) method is a geophysical method used in gold
exploration and provides two forms of results, being resistivity and chargeability.
The GAIP survey highlights the Pinnacles Corridor and Pinnacles North anomalies – GT1, GT2, GT3 and GT4.
These anomalies represent drill ready gold targets and planning is underway to allow priority drill testing.
Recent managing director appointment
Nexus recently appointed the experienced Andy Tudor as managing director.
Tudor has been CEO since July 2014, and has worked successfully in that time to assess a large number of prospective projects resulting in joint venture arrangements over the Pinnacles JV, Pinnacles Regional and Triumph projects.
The Pinnacles opportunity
There is an opportunity to significantly grow the gold resource base and with it a near term production profile.
Nexus has sufficient cash to take the Pinnacles JV project to a “Decision to Mine”.
With $5.6 million cash on hand (May 2016) and a Pinnacles JV agreement with Saracen in place, the road to medium term production opportunity is significantly de-risked.
As Saracen will buy any ore produced under the JV agreement and process it at their 2.4Mtpa mill at Carosue Dam Mining Operations, just 13 kilometres to the north of the Pinnacles JV project.
Nexus has full access to Saracen infrastructure, haul roads and camp facilities.
When drilling for gold begins, Nexus will be leveraged to exploration upside.
Given the fact that Nexus has completed an extensive amount of pre-drilling exploration, it is giving itself the best chance to identify mineralisation with its upcoming drill program.
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