Nexus Gold to Expand McKenzie Gold Project, Red Lake, Ontario
Vancouver, Canada - TheNewswire - May 20, 2020 - Nexus Gold Corp. ("Nexus" or the "Company") (TSXV:NXS) (OTC:NXXGF) (FSE:N6E) is pleased to announce that it has entered into an agreement with Shane Stares (the "Vendor"), an arms-length third-party, pursuant to which it proposes to acquire two additional mineral claims located in Red Lake, Ontario (the "Additional Claims").
The Additional Claims are located in the immediate vicinity of the Company's wholly owned McKenzie Gold Project and expand the Company's existing land package in the region. The two new claim blocks add 50 hectares to the western section of the McKenzie Island area of the project ground. With the new ground the McKenzie Gold Project now covers approximately 1,400 hectares.
In consideration for the acquisition of the Additional Claims, the Company is required to issue 400,000 common shares, and complete a one-time cash payment of $4,000. The Company is also required to grant a one percent (1.0%) net smelter returns royalty on commercial production from the Additional Claims.
"We're happy to add ground to the McKenzie project, particularly on the island," said president and CEO, Alex Klenman. "Some of the more robust historical assays were obtained on McKenzie Island. By adding significantly to our island land position, we feel we've added value to the project prospectivity. We will look to implement a prospecting and sampling program on the new ground in the next couple of months," continued Mr. Klenman.
All securities to be issued in connection with the acquisition of the Additional Claims will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. The acquisition remains subject to the approval of the TSX Venture Exchange and cannot be completed until such time as approval is obtained.
Figure 1: McKenzie Gold Project, Red Lake, Ontario, with new claims in red
McKenzie Gold Project - Drill Program Update
The planned phase one diamond drill program at the McKenzie Gold Project is expected to commence in the next few weeks, when the drill rig and crew from contractor Chibougamau Diamond Drilling Ltd become available after completing another project in the area. Once a firm date for drill and crew mobilization are received, the Company will issue a news release with an updated timeline.
The initial phase one program will consist on a minimum of 1000 meters of diamond drilling to test the mineralization potential of several gold targets occurring within a corridor along the southern contact of the Dome Stock with felsic Volcanics of the Balmer Assemblage. Historic drilling conducted in 2005 along this corridor returned significant values, including 7.49 grams-per-tonne ("g/t") gold ("Au") over 8.2 meters, 15.54 g/t Au over .8 meter (includes 23.4 g/t over 0.3 meter), 4.47 g/t gold over 1.4 meters, 17.02 g/t Au over .5 meter, 23.87 g/t Au over .2 meter, and 2.1 g/t Au over 5.5 meters* (see figure 2).
The initial drill program at McKenzie is designed to follow up on anomalous rock samples that were collected as part of the 2019 fall prospecting program completed in the St. Paul's Bay area of the property. The prospecting program traced the mineralized contact corridor to the property's eastern boundary to further determine areas of interest on the property's southern end. The focus of the prospecting was concentrated in and around Perch Lake, in the Saint Paul's Bay area, located in the southernmost section of the property.
This initial drill program is expandable, and the Company is currently reviewing additional targets to test if the decision is made in the near term to expand phase one meterage.
About the McKenzie Gold Project
As reported in a Company news release dated October 11, 2019, Nexus received a compilation summary of important historic data from project geological consultants, Rimini Exploration. The compilation integrated the regional geological and regional geophysical data, thus allowing the Company's geological staff to compare these trends to the information obtained through ground exploration conducted to date on the property. The more comprehensive data from the summary, coupled with the new data from the phase two prospecting program, was utilized in determining suitable areas to drill test.
The Rimini compilation summary produced historical data the Company was previously unaware of regarding multiple historical grab samples taken on the McKenzie claim block. The Company had previously disclosed several high-grade historical grab sample results on the property, including 331.14 g/t Au, 18.02 g/t Au, 212.8 g/t Au, 313 g/t Au, 18.02 g/t Au and 9.37 g/t Au. In the summer of 2019 Nexus conducted it's first ground reconnaissance program at McKenzie and results returned notable sample assays, including 135.4 g/t Au and 9.3 g/t Au (see Company news release dated June 25, 2019).
Additional high-grade historical grab samples previously unknown to the Company and revealed in the Rimini summary include several high-grade assays, including 142.49 g/t Au, 115.2 g/t Au, 114.57 g/t Au, 93.71 g/t Au, 68.03 g/t Au, 53.01 g/t Au, and 16.65 g/t Au from areas located on McKenzie Island (north block).
The data compilation summary also indicated that little to no exploration has been conducted over the actual lake portion of the claim block. The Company has noted from the regional data that a number of northerly trending geophysical trends extend within the lake itself and is viewing these trends as potential faults or breaks within the Dome Stock.
Preliminary review of lake sediment sampling conducted on the property in 1989 indicates coincidental anomalous gold geochemical values occurring. Historical values obtained from the analysis of +150 mesh screened lake sediment samples returned values of 0.159 ounce-per-ton (5.45 g/t) Au, 0.154 ounce per ton (5.28 g/t) Au, and 0.116 once per ton (3.98 g/t) Au. The Company now intends to conduct more exploration activity within the lake-bound portion of the project area to determine the prospectivity of a large underexplored section of the property.
* Note the reported lengths are intercepts and are not true widths
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.
About the Company
Nexus Gold is a Canadian-based gold development company with an extensive portfolio of eleven exploration projects in Canada and West Africa. The Company's West African-based portfolio totals five projects encompassing over 750-sq kms of land located on active gold belts and proven mineralized trends, while it's 100%-owned Canadian projects include the McKenzie Gold Project in Red Lake, Ontario, the New Pilot Project, located in British Columbia's historic Bridge River Mining Camp, and four prospective gold and gold-copper projects (3,700-ha) in the Province of Newfoundland. The Company is focusing on the development of several core assets while seeking joint-venture, earn-in, and strategic partnerships for other projects in its growing portfolio.
For more information please visit nexus.gold
On behalf of the Board of Directors of
NEXUS GOLD CORP.
President & CEO
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