Significant Advancements Made In Feasibility Study
Nexus Minerals Limited (ASX: NXM) has obtained significant high-grade assay results from the Reverse Circulation (RC) holes drilled at the Pinnacles JV Gold Project, in the eastern goldfields of Western Australia.
The company’s consultants have been engaged to undertake a pit optimization study and mine development plan options, to assist in determining the financial viability of establishing a gold mining operation at Pinnacles.
Due to the pre-existing ore sale and purchase agreement with Saracen, there is minimal capital expenditure required to initiate mining, with any ore mined to be processed through Saracen’s Carosue Dam Operation.
The Feasibility Study will incorporate this resource definition drilling, geotechnical drilling, environmental studies and metallurgical test work along with other key assessments and permitting.
Managing Director Andy Tudor said the RC programme has successfully tested thre specific areas of the proposed open pit and U/G operations.
“The results received from this RC drill programme have confirmed the grade profile we have modelled at the different levels of the proposed mining operation, in particular the high-grade mineralisation in the base of the proposed open-pit,” Mr Tudor said.
“We have also made significant advancements on the feasibility study inputs, with the end of year timeline for the completion of the study remaining our goal. The low capital cost of the development significantly de-risks the project metrics and accelerates the project time- line.”
The Pinnacles JV drill programs have successfully intersected high-grade gold mineralisation. The Pinnacles JV Mineral resource area (which commences at surface) is now well defined and understood from surface down to approximately 250m.
The drill programs intersected the primary structure hosting the mineralisation (Domain 1) at the depths interpreted, with the geological package of volcaniclastic sandstones, shales and conglomerates also intersected.
The Pinnacles gold mineralisation is typically associated with an increase in silicification, quartz veining, chlorite alteration and increase in sulphide content. Since entering into the JV with Saracen Mineral Holdings Limited, Nexus has drill tested the depth and continuity of the high grade mineralisation through a number of depth staged drill programs. The drill programs undertaken by Nexus have achieved this objective by intersecting mineralisation from surface to some 350m vertical depth, as well as testing the strike extent of the resource.
