(TheNewswire)
Vancouver, Canada- TheNewswire - September 2 7 , 2021 - Nexus Gold Corp.(“ Nexus ” or the “ Company ”) (TSXV:NXS )( OTC:NXXGF ) ( FSE:N6E) is pleased to announce it has entered into a definitive share purchaseagreement, dated effective September 23, 2021, with Cyclone NorthResources Inc. (“ Cyclone ”) and each of the shareholders ofCyclone (collectively, the “ Vendors ”), pursuant to which the Companyproposes to acquire all of the outstanding share capital of Cyclonefrom the Vendors.
The Cyclone Project consists of a large, district-scalegold-nickel exploration project, located in the James Bay Region ofnorthern Quebec. Within the James Bay Region are several past /producing gold mines including Newmont’s Eleonore Gold Mine, whichbegan production in 2014. Cyclone consists of 260 mineral claims,totalling 13,166 hectares, covering a 28-kilometer-long portion of theAquilon Greenstone Belt. The Aquilon Belt is a relatively newlycharacterized (2011) series of volcano-sedimentary rocks that hostspotential for gold and nickel/copper mineralization.
Sirios Resources has conducted several explorationprograms at their Aquilon Property, located immediately to the west ofthe Cyclone Property, in the same greenstone belt. Sirios’property has thirty (30) high-grade surface gold showings, includingsome with spectacular gold grades up to 800 grams per tonne and more(see Sirios Resources news releases September 22, 2020, and January19, 2011). Numerous shallow drill holes were completed on theproperty over the years (205 holes totaling 12,247m), with themajority of the work concentrated on four of the showings.
Historical exploration at Cyclone consists ofregional-scale mapping and prospecting, as well as an airbornemagnetic-electromagnetic (EM) survey. The regional-scale mappingconfirmed the mafic and ultramafic rocks, felsic volcanics andiron-formation. During the regional-scale mapping, some of theultramafic rocks were found to contain minor sulphide (pyrhhotite,chalcopyrite and pyrite) with elevated nickel and chromium. The EMconductors remain largely un-tested.
Two types of gold mineralization have been identifiedwithin the western part of the belt. High grade vein-type goldmineralization found in auriferous quartz and carbonate veins hostedwithin felsic rock associated with felsite's and disseminated pyritehalos. Mineralization tends to be found along a strong lineamentknown as the Wolfe Corridor. And lower grade gold mineralizationassociated with bands of disseminated sulphides (Py-Po) with someanomalous copper and zinc values. Large volumes of ultramafic rockat the Cyclone Property suggest there is good potential for magmaticsulphide mineralization (Ni +/- PGE’s).
“This acquisitions gives our Canadian portfolio adistrict scale foothold in an underexplored greenstone belt, in a wellestablished mining area,” said Alex Klenman, President and CEO. “Archean greenstones host the vast majority of gold mineralizationin Canada, and the immediate area has produced some bonanza grade goldvalues. We feel the ability to develop almost an entire greenstonewith multiple material upside will, in time, strengthen our assetbase. We’re looking forward to working withthe vendors and getting work done in the coming months,” continuedMr. Klenman.
Image 1: Cyclone property located onthe Aquilon Greenstone Belt, North-Central Quebec, Canada
The Cyclone Project has not yet seen any drilling, or asystematic exploration program for gold or base-metals. At the northend of the Property, it is approximately 1.5 kilometres from anall-weather access road to the La Forge hydroelectric facility, andthe all-weather Trans-Taiga Highway passes less than 1 kilometer fromthe south end of the Property.
The Company is at arms-length from each of Cyclone, andthe Vendors. In consideration for all of the outstanding share capitalof Cyclone, the Company has agreed to issue 12,000,000 common shares. In connection with completion of the transaction, the Company doesnot expect to assume any material liabilities, except for a cashpayment of $50,000 related to ownership of the Cyclone Project and therequirement to fund exploration expenditures of at least $125,000 onor before March 31, 2022, to maintain the Project. The transactionwill not result in the creation of a new insider, or a change ofcontrol, of the Company, within the meaning of applicable securitieslaws. Completion of the transaction remains subject to the approvalof the TSX Venture Exchange and cannot be completed until such approval has been received. Nofinder's fees or commissions are payable in connection with thetransaction.
Warren Robb P.Geo., Vice President,Exploration, is the designated Qualified Person as defined by NationalInstrument 43-101 has approved, the technical information contained inthis release.
About the Company
Nexus Gold is a Canadian-based gold exploration anddevelopment company with an extensive portfolio of projects in Canadaand West Africa. The Company’s primary focus is on its 100%-owned,98-sq km Dakouli 2 Gold Concession in Burkina Faso, West Africa, andthe approximately 1400-ha McKenzie Gold Project, located in Red Lake,Ontario. The Company is concentrating on thedevelopment of its core assets while seeking joint-venture, earn-in,and strategic partnerships for other projects in its portfolio.
For more information, please visit nxs.gold
On behalf of the Board of Directors of
NEXUS GOLD CORP.
Alex Klenman
President & CEO
604-558-1920
info@nexusgoldcorp.com
www.nexusgoldcorp.com
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements. These statements are based on currentexpectations and assumptions that are subject to risks anduncertainties. Actual results could differ materially because offactors discussed in the management discussion and analysis section ofour interim and most recent annual financial statement or otherreports and filings with the TSX Venture Exchange and applicableCanadian securities regulations. We do not assume any obligation toupdate any forward-looking statements, except as required byapplicable laws.
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