Nexus Gold completes acquisition of New Pilot project

Jan 11, 2019

2019-01-11 09:20 ET – News Release

Mr. Alex Klenman reports

NEXUS GOLD COMPLETES ACQUISITION OF THE NEW PILOT GOLD PROJECT, BRIDGE RIVER MINING CAMP, BRITISH COLUMBIA

Nexus Gold Corp. has completed the acquisition of the New Pilot gold project located in the Bridge River mining camp in 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 3.5 million common shares to the current owner of the project, Warren Robb. Mr. Robb is a director and senior officer of the company. He is considered a non-arm’s-length party, in accordance with the policies of the TSX Venture Exchange. As a result, the acquisition of the project is subject to TSX-V 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, as well as 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 25 per cent 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.

Project details

The project is a gold-copper exploration property located in the Bridge River mining camp, approximately 180 kilometres north of Vancouver, B.C., or 10.5 kilometres west of the village of Gold Bridge. 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. Ninety-nine grab samples were taken in three zones (A, B and C), with three returning values in excess of 100 grams per tonne gold, including 102 grams per tonne gold, 106 grams per tonne gold (with visible gold) and 111 grams per tonne gold, as well as three returning values in excess of 10 grams per tonne gold, including 17 grams per tonne gold, 21 grams per tonne gold and 33 grams per tonne gold, and 14 others returning values in excess of one gram per tonne gold.

In addition, 59 soil samples, 229 rock samples and 66 core samples from a 108-metre diamond drill program were also obtained. Significant results obtained included chip samples of 4.03 grams per tonne gold over 10 metres as well as one gram per tonne gold over 10.5 metres in drill core.

The rock sampling identified three areas of elevated bedrock gold values within intrusive rocks: Zone A, which averaged 228 parts per billion gold, Zone B, which averaged 378 parts per billion gold, and Zone C, which averaged 752 parts per billion gold. Highlights from the 108 five-metre chip samples included: 1,470 parts per billion and 1,092 parts per billion gold in Zone A, 3,702 parts per billion gold in Zone B, and 6,425 parts per billion and 1,896 parts per billion gold in Zone C. The higher values are associated with rusty fracture coatings containing sulphides.

Three styles of mineralization have been identified on the project: (i) siliceous fractures containing sulphides; (ii) carbonate-altered shears; and (iii) 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, which lies 18 kilometres to the southeast.

The Bralorne gold camp represents one of Canada’s most prolific mining operations. From 1928 to 1971, the Bralorne mine, along with the 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 metres from the New Pilot location.

About Nexus Gold Corp.

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 its four current Burkina-based projects, which total over 560 square kilometres (more than 56,000 hectares) of land located on proven gold belts and active mineralized trends.

Warren Robb, PGeo, vice-president of exploration, is the designated qualified person as defined by National Instrument 43-101. He is responsible for the technical information contained in this release.

We seek Safe Harbor.

https://www.nexusgoldcorp.com/news/2019-news