Nexus Gold (TSXV:NXS) is Positioning Themselves for a Major Win in 2015 ?
Alphastox.com 09/09/2015
That is why I wanted to feature a story that is somewhat unheard of and out of the ordinary but offers a ton of upside potential. If I told you it was just a regular junior gold exploration play, I would be lying , but rather, it comes with a technology that if proven successful, could totally revolutionize the way the mining industry is played.
Now I know we’re not in a hot mining market right now, but this story comes with something special…a technology that could potentially show “exactly” where the gold actually lies in the ground. That’s definitely something that peaks my interest but I was obviously skeptical when I first heard it. It’s one of those “pie in the sky” ideas that most of us walk away from but when they told me it’s been proven to work in the oil and gas field, I started to listen. Not only that, but we’ve made double digit returns with junior mining stocks in the last few months because we’ve backed good quality groups who constantly work to add shareholder value as opposed to the ones that sit back, drain company treasuries and hope the market miraculously gets better. After meeting with the team, I learned that Peter Berdusco and Alex Klenman are the kind of guys that pound the table and open every possible door to get their story known, and that’s what I like to see.
Here is a short interview they did with Brien Lundin of the Goldnewsletter which gives you a good overview of the deal:
Link: com.us5.list-manage.com
The Vancouver based resource exploration and development company, Nexus Gold Corp. (TSX.V:NXS) focuses on gold projects in North America’s premier districts. Their main project, the Walker Ridge Gold Project, is located in the Jerritt Canyon/Independence Gold Trend in northeastern Nevada, 40 miles north of Elko, NV. It consists of more than 4500 acres and 229 mining claims. Nevada has 30 major gold deposits and produces 79% of all gold mined in the United States, making it the fourth largest gold producing region in the world and an excellent jurisdiction for explorers.
If you look at the deposits around the property, it’s clear that this project has major potential. The Jerritt Canyon mine, historically has had over 11 million ounces on it and current reserves of just over 3 million. The project is so exciting that according to Mr. Berdusco (in the video above), Sprott Asset Management recently took a major stake in the mine and the mill. The Big Springs deposit, which is located just 1.8 miles north of Walker Ridge and currently being mined by Anova Metals (ASX: AWV), has past production of 386,000oz and 1.2Moz of current reserves. NXS is situated right smack down the middle of these two past producers and is very fortunate to have the land position and opportunity to drill and explore in such a prolific area.
The Jerritt Canyon Mine was discovered in 1972 by Freeport-McMoRan. In 2011 Columbia Star Resources expanded their land position and completed a NI 43-101 Technical Report on the property. Three years later in 2014, Columbia Star acquired Alita Resources and changed its name to Nexus Gold Corp.
In addition to utilizing standard exploration methods, NXS is using something totally unique…it’s a technique borrowed from the oil and gas industry that has come up with spectacular results, which if proven successful in mineral exploration, could be completely revolutionary.
Nexus Gold uses VitalGEOSURVEY to maximize drill hole locations and reduce costs associated with exploration drilling. The technology has been in the oil and gas market for 5 years, and has proven to be 100% accurate for gas wells and 80% for economic oil flow. Developed by ex-NASA engineers, the technology sends out a signal that excites a specific element, atom or molecule. In the case of Walker Ridge, it’s scanning for the gold atom. –If gold atomization is present, the device pick up the element in an excited state The greater the signal response, and the longer the element remains excited, are interpreted to indicate characteristics such as density and mass.
The last survey conducted at Walker Ridge was done in October and November 2014.The most exciting part about this technology is not that it just suggests where the gold can possibly be, but it actually tells you there’s gold in a specific area which then sets out the company’s drill campaign perfectly. For Nexus, the VitalGEOSURVEY detected 38 parts of interest that were organized into 8 clusters, seven of which fall within the other data sets (gravity, geochem, resistivity). The Vital results align almost perfectly with the previous work done by the company. Nexus Gold is THE ONLY gold exploration company out there using this technology today…and at $0.105/share and a $4.6 million market cap, no one is giving them a chance, but if they’re able to prove that it works, this could be one of the most exciting stories to hit the TSX Venture Exchange in years.
Before this technology existed, general geochemical targeting was done to identify potential drill targets. In 1987 and 2007, this exact methodology was used on Walker Ridge and showed high levels of mercury on the property, antimony, and arsenic in addition to anomalous gold, which are all very positive signs. The gold and other elements seem to be dispersed at the surface, similar to the nearby Jerritt Canyon and Big Springs deposits. This geochemical target is reflected in the gravity survey which shows central gravity lows and surrounding gravity highs. There have been four different independent, correlating data sets providing Nexus Gold with an in-depth overview of the property which helps them narrow down their exploration targets. Additionally, all data sets indicate Carlin-type mineralization potentially exists in the lower plate rocks on the property.
Peter Berdusco, President and CEO of Nexus Gold stated, “This technology demonstrates a paradigm shift in the industry. The mining industry is very slow to adapt, especially due to the market we’re in. But to come out on top as a leading mining company, you need to think outside of the box. This technology translates really well from the oil and gas sector to the mining sector. Oil and gas has hydrocarbons which means it is more complex to detect compared to mining which is more simplified so we’re very excited to be the first one’s testing it on our property”.
At $0.105/share, the stock is definitely worth a look at these levels. Now that their drill program is fully funded and well on its way, there should definitely be a lot more news to come in the next few weeks. Like I’ve said before, if the technology proves to be successful, I could easily see the stock starting to reflect its true potential. Not only that, but the team is continuing to expose their story to a broader audience in Canada and Europe who all seem engaged in the deal. Make sure you keep NXS.V on your radar screen and stay tuned for what’s to come.
As always, if you have any questions, please do not hesitate to get in touch with me anytime. I look forward to hearing from you.
Best,
Etienne
Disclosure: Transcend Capital Inc. is a shareholder of Nexus Gold
2015-09-10 09:27 ET - News Release
before crossing the thrust fault and entering the silty limestones and calcareous siltstones of the lower plate.
Walker Ridge's target is Carlin-type mineralization, and the lower plate rocks are primary hosts of Carlin-type gold deposits in Nevada. Also noted in the lower plate at Walker Ridge is the abundant presence of the mineral pyrite. Pyrite is also associated with Carlin-type mineralization in Nevada.
"It is yet to be determined if the rocks below the thrust fault are the Roberts Mountain or Hansen Creek formation," states Dr. Douglas Oliver, vice-president of exploration. "However, both formations host economic gold mineralization at the Jerritt Canyon mine, our neighbour to the south." Dr. Oliver continues, "Now that the hole has reached the targeted host rocks, we expect to be in them for the next several hundred feet as drilling continues." |
