Nexus Gold signs LOI for New Pilot project financing

Jan 17, 2019

2019-01-16 11:08 ET – News Release

Mr. Alex Klenman reports

NEXUS GOLD ENTERS INTO LETTER OF INTENT FOR EXPLORATION FINANCING OF NEW PILOT PROJECT

Nexus Gold Corp. has entered into a letter of intent with an arm’s-length third party to provide financing of up to $250,000 toward the development of the company’s newly acquired New Pilot project, located in the Bridge River mining camp in British Columbia, Canada.

In consideration for providing financing of at least $250,000 toward development of the project prior to Dec. 31, 2019, the investor will earn a 10-per-cent beneficial interest in the project. Following the investor earning such an interest, the company will have the right to redeem the interest from the investor in consideration for a payment of $250,000, which will be satisfied through the issuance of common shares of the company, based upon the last closing price of the company’s shares on the TSX Venture Exchange immediately prior to the exercise of the right. The redemption right will be exercisable for a period of 30 days following the investor earning an interest in the project.

The project was recently acquired by the company and is an exploration-stage gold-copper property covering approximately 509 hectares (1,257 acres).

“This structurally friendly financing opportunity will provide a nice kick-start to our development at New Pilot,” said Alex Klenman, president and chief executive officer. “Our plan is to conduct mapping and sampling, as well as geophysical and geochemical programs through the summer months. We like the area, we like the historical data, and we look forward to developing this project,” continued Mr. Klenman.

Completion of the transaction contemplated by the letter of intent remains subject to a number of conditions, including the successful completion of a due diligence review of the project, negotiation of definitive documentation and approval of the TSX-V. The transaction cannot proceed, and no financing will be provided, until these conditions are either satisfied or waived. There can be no guarantee that the transaction will proceed as planned. The company will provide additional information regarding the transaction as soon as it becomes available.

Project details

The project is a gold-copper exploration property located in the Bridge River mining camp, approximately 180 kilometres north of Vancouver, or 10.5 kilometres west of the village of Gold Bridge, B.C. The 509-hectare/1,257-acre property is accessible by paved road and has been the subject of historical exploration.

Between 1992 and 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; three returning values in excess of 10 grams per tonne gold (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 small 108-metre diamond drill program were also obtained. Significant results obtained included chip samples of 4.03 grams per tonne gold over 10 metres and 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 (averaging 228 parts per billion), zone B (averaging 378 parts per billion) and zone C (averaging 752 parts per billion). Highlights from the 108 five-metre chip samples included: 1,470 parts per billion and 1,092 parts per billion in zone A; 3,702 parts per billion in zone B; and 6,425 parts per billion and 1,896 parts per billion in zone C. The higher values are associated with rusty fracture coatings containing sulphides.

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 southeast.

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 tonnes 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 (over 56,000 hectares) of land located on active gold belts and proven mineralized trends.

Warren Robb, PGeo, 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.

We seek Safe Harbor.

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