Nexus Moves on Multiple Fronts
Nexus made a strategic decision to offset Burkina Faso exploration risks with some solid projects in safer climes in early 2019. It seems to have caused some confusion among shareholders confused by the shift in direction but I think with time passing the wisdom of the move will seem more obvious. The stock is now pretty cheap for a company with nine different projects with high-grade potential in multiple countries.
They began with the purchase of the New Pilot gold project about a hundred miles north of Vancouver in early January. Some 99 grab samples taken over twenty-five years ago reveal high grade gold with values over 100 g/t gold in three of the samples, another three showing over 10 g/t gold and an additional fourteen showing over 1 g/t Au. A summer exploration reported in late August at New Pilot results from fifteen grab samples averaging 2.37 g/t Au, 5.2 g/t Ag and 0.55% Cu.
In early February Nexus announced the purchase of another gold project with high-grade potential, this time in the middle of the Red Lake gold camp. The McKenzie gold project was picked up for 6 million shares and $150,000 in cash. A 2017 surface sampling program showed grab samples of between 9.37 g/t Au and 331 g/t Au. Provincial government files show that area to be near a historical report of 212.8 g/t Au.
In June Nexus reported an initial ground sampling program with results of 135.4 g/t gold and another of 9.3 g/t Au at the McKenzie gold project. The company is continuing a program to generate drill targets for 2020 at McKenzie.
Also in June Nexus purchased two additional projects in Newfoundland including the Black Ridge gold project and the Bauline epithermal gold property. The two Newfoundland projects have cost Nexus 5.5 million shares and a 2.0% NSR on production. From the same vendor Nexus bought the Gummy Bear copper-gold project in May of 2019 for 4 million shares. Gummy Bear (GB) has shown results of gold outcrops of 4.2 g/t Au and copper showings of 2.76% to 4.02%.
Nexus continues to move forward in Burkina Faso with a November-December drill program at Dakouli of up to 2000 meters. That drill program could provide the spark to get the share price moving. I have made a number of trips to Burkina Faso and I know the area well. There have been a number of major mines built and properties expanding gold resources in the country in the last fifteen years. Nexus could really move the needle for investors with a well-executed program.
Nexus has a wide portfolio of nine different projects. Obviously for them to move projects forward they will have to raise money. But in a buoyant market it would be easier for them to either raise money or to JV projects out to other companies. With a market cap of under $6 million it seems to me the company is pretty cheap. They could easily be the Next Big Thing in BF.
I have bought shares in the open market and will participate in a future private placement. Nexus is an advertiser. Naturally I am biased so you should do your own due diligence.
Nexus Gold Corp