Vancouver, Canada / TheNewswire / January 11, 2019 - Nexus Gold Corp. ("Nexus" or the "Company") (TSX-V: NXS, OTCQB: NXXGF, FSE: N6E) has completed the acquisition of the New Pilot Gold Project (the "Project"), located in the Bridge River Mining Camp in the Province of British Columbia, Canada. The Project is an exploration-stage gold-copper property, covering approximately 509 hectares (1,257 acres).
In consideration for the Project, the Company issued 3,500,000 common shares to the current owner of the project, Warren Robb. Mr. Robb is a director and senior officer of the Company and is considered a non-arms'-length party in accordance with the policies of the TSX Venture Exchange (the "Exchange"). As a result, the acquisition of the Project is subject to Exchange Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. In completing the acquisition, the Company has relied upon Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement of MI 61-101, and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101, as the fair market value of the acquisition does not exceed twenty-five percent of the Company's market capitalization.
All common shares issued to Mr. Robb in connection with the acquisition of the Project are subject to a four-month-and-one-day statutory hold period in accordance with the policies of the Exchange and applicable securities laws.
The Project is a gold-copper exploration property located in the Bridge River Mining Camp, approximately 180 kilometers north of Vancouver, or 10.5 kilometres west of the village of Gold Bridge, British Columbia. The 509-hectare (1,257 acre) property is accessible by paved road and has been the subject of historical exploration.
Between 1992 to 1994 Cogema Canada Ltd conducted detailed prospecting and sampling. 99 grab samples were taken in three zones (A, B, C in Figure 2), with three returning values in excess of 100 grams-per-tonne ("g/t") gold ("Au"), including 102 g/t Au, 106 g/t Au with visible gold, and 111 g/t Au; three returning values in excess of 10 g/t Au (17 g/t Au, 21 g/t Au, 33 g/t Au); and 14 others returning values in excess of 1 g/t Au.
In addition, 59 soil samples, 229 rock samples, and 66 core samples from a small 108-meter diamond drill program were also obtained. Significant results obtained included chip samples of 4.03 g/t Au over 10 meters, and 1 g/t Au over 10.5 meters in drill core.
The rock sampling identified three areas of elevated bedrock gold values within intrusive rocks: Zone A, averaging 228 ppb, Zone B, averaging 378 ppb and Zone C, averaging 752 ppb. Highlights from the 108 five-metre chip samples included: 1470 ppb and 1092 ppb in Zone A, 3702 ppb in Zone B, and 6425 ppb and 1896 ppb in Zone C. The higher values are associated with rusty fracture coatings containing sulfides.
Three styles of mineralization have been identified on the Project: siliceous fractures containing sulphides, carbonate altered shears, and quartz veins containing arsenopyrite.
The Project location is situated at the contact of the Coast Crystalline Complex and the Bridge River sediments. Over the past 80 years several exploration programs have been conducted over or near the property, initially concentrating on the Pilot Mine and its strike extension. The Project is relatively close to the producing Bralorne Pioneer Mine, lying 18 kilometres to the south east.
Figure 1: New Pilot Project location, 180-kms north of Vancouver, BC, in the historic Bridge River Mining Camp
The Bralorne gold camp represents one of Canada's most prolific mining operations. From 1928 to 1971, the Bralorne and nearby Pioneer and King mines produced 4.15 million ounces of gold from 7.9 million tons of ore*. The Bridge River Mining Camp is the largest past producer of gold in British Columbia**. In 2017, Blackstone Minerals Ltd, an Australian-based company, acquired the Little Gem Project, a high-grade cobalt and gold project, located approximately 900 meters from the New Pilot location.
*Avino Silver & Gold Mines, Ltd
** Bralorne Project 1992 Pilot Property BC Assessment Report, Schimann-Robb, 1992
Figure 2: New Pilot Project boundary/geology with locations of Zones A, B and C
About the Company
Nexus Gold is a Vancouver-based gold exploration and development company operating primarily in Burkina Faso, West Africa. The company is currently concentrating its efforts on establishing a compliant resource at one or more of it's four current Burkina-based projects which total over 560-sq kms (56,000+ hectares) of land located on active gold belts and proven mineralized trends. Fore more information please visit www.nexusgoldcorp.com.
Warren Robb P.Geo., Vice-President, Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.