(TheNewswire)
Vancouver, Canada- TheNewswire – February 10, 202 1 - Nexus Gold Corp.(“ Nexus ” or the “ Company ”) (TSXV:NXS ) ( OTC:NXXGF ) ( FSE:N6E) is pleased to provide acorporate update regarding ongoing drillprograms at both the Dakouli 2 Gold Concession in Burkina Faso, WestAfrica, and
Dakouli 2 Gold Concession, BurkinaFaso, West Africa
Assays are pending for the remaining six holes from theCompany’s recently completed maiden drill program at the 100%-owned,98-sq km Dakouli 2 concession, and it will report those results oncereceived, reviewed, and verified. The Company anticipates receivingthese results in the next week to 10 days as delays consistent withmandated Covid-19 protocols and increased lab activity are currentlybeing experienced.
The Company concluded a 2,914 meter Reverse Circulation(“RC”) drill program in late December. The program was designedto test several areas that have returned either high gold values fromrock samples or coincidental soil geochemical and geophysicalanomalies proximal to artisanal workings, termed “orpaillages”,and resulted in significant gold discovery.
Noteworthy results werereceived in hole DKL-20-RC-007, which returned 4.83 grams-per-tonne(“g/t”) gold (“Au”) over 20 meters, including 14.51 g/t Auover 6m (also including 39.6 g/t over 2m). Other significant resultswere realized in hole DKL-20-RC-009, which returned 1.61 g/t Au over10 meters, including 4.11 g/t Au over 2 meters, and DKL-20-RC-010,which returned 1.89 g/t Au over 8 meters, including 6.54 g/t Au over 2meters . In addition, several holes returnedlengthy intercepts of sub-one gram gold, including DKL-20-RC-006 whichreturned .33 g/t Au over 36 meters, including .59 g/t Au over 18meters, and DKL-20-RC-002 which returned .64 g/t Au over 16 meters.
The gold mineralization encountered in the Northeastzone consists of disseminated sulfides, containing pyrite,chalcopyrite, galena, and particles of visible gold. Themineralization occurs at or proximal to contacts between clasticsedimentary rocks and Mafic volcanics rocks. The mineralized zonesare part of pervasive hydrothermal alteration developed in thesehighly strained sedimentary and volcanic rocks. The company isinterpreting the foliation observed in the RC chips as being looselysub-parallel to the dominant foliation fabric of the Sabce shear zone.
The combination of higher-than-average grades andlengthier sub-one gram intercepts is encouraging, and warrants followup diamond drilling which is now scheduled for April 2021. Moreinformation on the scope of this program will be announced in thecoming weeks.
“We are very encouraged by the drill-confirmeddiscovery at Dakouli,” said Alex Klenman, President and CEO. “The higher grade hits distributed among the lower gradeintercepts is a positive sign when looking for open pit, mineabledeposits in the region. The first round successfully established abroad zone of mineralization in the northeast corner of the property. We will begin to work our way along the proposed strike to the westand to the south of the main zone in an effort to expand themineralized footprint, and to find other zones coincident with soilgrid and sampling results we’ve previouslygenerated across the property. Dakouli is a very promising projectand one we’re anxious to continue to drill define,” continued Mr.Klenman.
More information on the results to date of the maidendrill program are available on the Company’s website: Nexus Gold Drills 20 meters of 4.83 g/t Au, Including14.51 g/t Au over 6m, at the Dakouli 2 Gold Concession, Burkina Faso,West Africa – Nexus Gold Corp. (nxs.gold)
McKenzie Gold Project, Red Lake,Ontario
A phase two drill program at the McKenzie Gold Projectin Red Lake, Ontario, is now scheduled for mid-to-late March 2021. The Company is planning a 2000 meter diamond drill campaign thatwill either follow up the initial round of drill results obtained lastAugust in the St. Paul’s Bay region (south) of the project ground,or that will target the McKenzie Island portion (north) of theproperty. Company personnel are monitoring weather and temperatureforecasts with regard to island access as ice thickness and stabilityare required. More information regarding specific target locationsof the upcoming drill program at McKenzie will be made availableshortly.
Historical drilling in the St. Paul’s Bay region ofthe property had already confirmed the presence of narrow,gold-bearing veins in the St. Paul’s Bay region of the southernmostsection of the property. The inaugural Nexus drill program was ableto replicate these same types of intercepts, with several interceptsin the half meter to 1.5-meter length assaying between 3.42 g/t Au to7.43 g/t Au. A higher-grade intercept, 2.75 meters of 13.25 g/t Au(including 1 meter of 36.2 g/t Au) (see Company news release datedAugust 18, 2020) was also recovered.
The second phase of this drill program recovered twosignificant, lengthy mineralized intercepts, including 117.4 meters of.33 g/t Au (including 9.4 meters of 1.26 g/t Au), and 117.5 meters of.62 g/t Au, which included 55.5 meters of 1 g/t Au, including 16meters of 1.42 g/t Au, and 6 meters of 2.37 g/t Au, and 9 meters of1.14 g/t Au, among others (see Company news release dated September 3,2020). These holes were drilled north of the other 11 holes andrepresent an additional area of interest for furtherexploration.
The results from the first phase of drilling weresuccessful in identifying a second style of gold mineralization atMcKenzie. The occurrence of disseminated lengthier near one-gramintervals is viewed as a key development in establishing the presenceof economic mineralization at the project. It is also notable thatthis type of mineralization more closely resembles Premier GoldMines’ nearby past-producing Hasaga Mine, located approximately fivekilometers east of McKenzie, which is estimated to host and Indicatedmineral resource of 1.12M ounces of gold grading .83 g/t Au*.
“We are executing on our plans to alternately drilland develop our primary projects in both West Africa and Canada,”said Alex Klenman, President and CEO. “The path we’re on is oneof discovery and development. The way to unlock value begins at theend of a drill. We need to progress our flagship properties throughdrilling, and we intend to do so. We’re eager to get back to RedLake and look forward to executing on a second round of drilling inthe coming weeks,” continued Mr. Klenman.
More information on the McKenzie Gold Project isavailable on the Company’s website: Nexus Gold Drills 55.5m of 1.00 g/t Au, Including 16mof 1.42 g/t Au and 6m of 2.37 g/t Au, at the McKenzie Gold Project,Red Lake, Ontario – Nexus Gold Corp. (nxs.gold)
Warrant Extension andRepricing
The Company also announced that it is proposing to extend the expiry dates and alter theexercise price of certain share purchase warrants (the"Warrants"), which are exercisable into common shares in thecapital of the Company (the “Shares”).
9,744,913 Warrants were issued on February 26, 2019 ata price of $0.18 per Share (the “February Warrants”), 4,924,564Warrants were issued on March 19, 2019 at a price of $0.18 per Share,3,492,565 Warrants were issued on March 19, 2019 at a price of $0.20per Share and 787,500 Warrants were issued on March 21, 2019 at aprice of $0.18 per Share (the “March Warrants”). No warrantshave been exercised to date.
Subject to the approval of TSX Venture Exchange("TSX-V"), Nexus Gold will extend the expiration of theFebruary Warrants to February 26, 2022 and lower the exercise price ofthe February Warrants to $0.10 per Share. Further, Nexus Gold willextend the expiration of the March Warrants to March 19, 2022 andlower the exercise price of the March Warrants to $0.10 perShare.
In accordance with TSX Venture Exchange regulations,the expiration of all Warrants will be accelerated to 30 days if, forany ten consecutive trading days, the closing price of the commonshares of the Company on the TSX-V is $0.125 or greater (the“Acceleration Trigger”), with such 30-day period starting 7 daysafter the Acceleration Trigger. All other terms of the Warrants willremain unchanged.
The extension and price reduction will not apply to the285,130 and 335,040 Broker Warrants issued on February 26, 2019 andMarch 19, 2019, respectively.
Completion of the amendments to the Warrants remainsubject to the approval of the TSX Venture Exchange, and the holdersof the Warrants.
* HASAGA PROJECT RED LAKE MINING DISTRICT,ONTARIO, CANADA by Vincent Jourdain (Ph.D.,P.Eng.), John Langton (M.Sc., P. Geo.) & Abderrazak Ladidi(P.Geo.) dated February 24 th , 2017).
*Grab samples are selective bynature and may not represent the true grade or style of mineralizationacross the property.
* Note the reported diamond drilllengths are intercepts and are not true widths.
Warren Robb P.Geo., Vice President,Exploration, is the designated Qualified Person as defined by NationalInstrument 43-101 and is responsible for, and has approved, thetechnical information contained in this release.
About the Company
Nexus Gold is a Canadian-based gold exploration anddevelopment company with an extensive portfolio of eleven projects inCanada and West Africa. The Company’s West African-based portfoliototals five projects encompassing over 750-sq kms of land located onactive gold belts and proven mineralized trends, while it’s100%-owned Canadian projects include the McKenzie Gold Project in RedLake, Ontario, the New Pilot Project, located in British Columbia'shistoric Bridge River Mining Camp, and four prospective gold andgold-copper projects (3,700-ha) in the Province of Newfoundland. The Company is focusing on the development ofseveral core assets while seeking joint-venture, earn-in, andstrategic partnerships for other projects in its growingportfolio.
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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