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NEXUS GOLD TO INCREASE DIAMOND DRILLING AT NIANGOUELA GOLD CONCESSION, BURKINA FASO, WEST AFRICA

2017-03-16 10:58 ET – News Release

Mr. Peter Berdusco reports

NEXUS GOLD TO INCREASE DIAMOND DRILLING AT NIANGOUELA GOLD CONCESSION, BURKINA FASO, WEST AFRICA

Nexus Gold Corp. will increase its diamond drilling program at the 178-square-kilometre Niangouela exploration permit located approximately 85 kilometres north of Ouagadougou, Burkina Faso, West Africa.

The company recently completed 1,470 metres of the scheduled 2,000-metre phase 1 program (see news release dated March 7, 2017) and will be completing the initial phase and releasing assays from the remaining holes in the coming weeks. The company will immediately thereafter commence a phase 2 diamond drill program on the property that will target additional areas of interest along strike. In addition, the program will test a newly identified zone of artisanal workings occurring along strike of the shear zone another 800 metres to the east of the current drill area.

“As has been stated, we are extremely encouraged with the initial results at Niangouela. Once this first program is complete, we will immediately initiate the next phase,” said president and chief executive officer, Peter Berdusco. “This second phase will continue to effectively define the shear zone structure and the quartz vein within it. We will also investigate any potential higher-grade shoots and preferred mineralization trends occurring along strike.”

The first-phase diamond drill program was designed to test anomalous rock samples collected from underground artisanal workings and anomalous rotary air blast (RAB) drilling completed by the company in December, 2016. This initial program successfully intersected gold mineralization in eight of the first nine holes drilled on the concession. The mineralization was contained in a silicified shear zone occurring in the host granite; associated with the shear was primary quartz veins.

Significant gold mineralization was encountered in four of the eight holes reporting gold intercepts. NGL-17-DD-008 returned 26.69 grams per tonne (g/t) gold over 4.85 metres (including 8.5 g/t gold over 0.62 metre and 120 g/t gold over 1.03 metres). Hole NGL-17-DD-006 returned four g/t gold over 6.2 metres (including 20.5 g/t gold over one metre).

The assay results from the first nine holes of the phase 1 program are shown in the attached table.

Hole ID                      From                To      Intercept               Au 
                               (m)               (m)            (m)            (g/t)
 
NGL-17-DD-00110             76.00             87.00          11.00             0.32         
Includes                    83.00             84.00           1.00             1.21         
NGL-17-DD-002190            84.50             85.50           2.00             1.05         
                           104.50            105.50           1.00             1.32         
NGL-17-DD-003185            86.40             91.50           5.10             1.80         
Includes                    86.40             87.50           1.10             6.14         
NGL-17-DD-004185           121.00            124.00           3.00             0.75         
Includes                   122.00            123.00           1.00             1.23         
NGL-17-DD-005185                             No significant results                                                  
NGL-17-DD-006180            65.00             71.20           6.20             4.00         
Includes                    70.20             71.20           1.00            20.50      
NGL-17-DD-007180           102.00            109.20           7.20             1.01         
Includes                   104.00            105.00           1.00             2.34         
And                        106.20            107.20           1.00             1.92         
NGL-17-DD-008180            57.00             61.85           4.85            26.69        
Includes                    58.35             58.97           0.62             8.50         
And                         58.97             60.00           1.03           120.00      
NGL-17-DD-009180            74.50             78.50           4.00             2.61         
Includes                    76.50             77.50           1.00             5.92

Note: All assay results represent intercept lengths and are not true widths.

The phase 1 diamond drill program tested the shear zone for over 200 metres along strike and intercepted the zone to depths of 105 metres below surface. The shear zone remains opens along strike and to depth.

About the Niangouela gold concession

The 178-square-kilometre Niangouela gold concession is located on the Boromo greenstone belt (as is the company’s Bouboulou gold concession), and is proximal to the Kalsaka deposit and the Sabce shear zone. It is accessible by road and has one major orpaillage (artisanal workings).

In December, 2016, the company conducted an 802-metre RAB drill program that delineated an approximately 1,000-metre quartz vein and a 500-metre secondary strike, running oblique to the main vein. This vein has now been identified in trenches, artisanal workings and through RAB drilling. It remains open in all directions.

A total of 11 rock chip and grab samples were taken during the initial exploration phase. Eight of the 11 samples returned values of one g/t gold or better. Best results of the 11 include sample NG005, taken directly from the primary quartz vein at 46-metre depth (accessed via an artisanal mining shaft), which returned a value of 2,950 g/t gold. Sample NG006 was collected from the artisanal dumps of the sheared intrusive and returned a value of 23.9 g/t gold. Sample NG007 contained coarse visible gold, and was taken from material extracted from the eastern shaft from a depth of approximately 60 metres, returned values of 403 g/t gold. Sample NG008 was taken from the western shaft, 10 to 12 metres west of the eastern shaft, and consisted of a single large piece of primary quartz vein containing host rock inclusions and a cluster of visible gold. NG008 returned values of 49.8 g/t gold.

About Burkina Faso

Burkina Faso is a landlocked nation, located in West Africa. It covers an area of roughly 274,000 square kilometres and has an estimated population of more than 16 million people. The country has a stable political setting with a pro-mining and foreign investment stance. Burkina Faso is the fastest-growing gold producer in Africa and was the fourth-largest gold producer in Africa in 2012. Eight new mines have been commissioned there over the past six years. The country has excellent geological potential. The greenstone belts that host all of the major deposits in Ghana and Ivory Coast continue northward into Burkina Faso. Burkina Faso has undergone less than 15 years of modern mineral exploration, remaining underexplored in comparison with the neighbouring Ghana and Mali, both of which host world-class gold mines in the same belts of Birimian rocks.

About Nexus Gold Corp.

The company is currently concentrating its efforts on two gold projects located in Burkina Faso, West Africa. The Bouboulou gold concession is a 38-square-kilometre advanced exploration target where previous drilling has confirmed multiple zones of gold mineralization. The Niangouela gold concession is a 178-square-kilometre project featuring high-grade gold occurring in and around a primary quartz vein one kilometre in length and associated shear zone.

Warren Robb, PGeo, senior geologist, 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.

© 2017 Canjex Publishing Ltd. All rights reserved.

Disclaimer© 2010 Junior Gold ReportJunior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR, it’s owner and affiliates/associates may buy/sell and trade the company’s stock written up/video created on from time to time. JGR has been paid by the company written up. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

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Gold bars and stok market

Why Did These 3 Companies Rise So Much?

We are delighted to be in this position to research and bring you highly prospective investment opportunities which we feel have amazing growth potential.
Recently, we have been inundated with many companies requesting access to our valuable subscriber base.
It is difficult to analyze each and every company to evaluate low risk/high reward opportunities – however, we are very happy we took the time to research and partner with the following 3 success stories.

A lot of my subscribers have been asking me to move to a paid service and thus far I have declined so I can continue to provide everyone an equal opportunity. In the future I may elect to offer a premium service.

Why Did These 3 Companies Rise So Much?

(1) MX Gold Corp. (TSX VENTURE:MXL) (FRANKFURT:ODV)(OTCQX:MXLGF)

 

As our loyal readers know, we have been covering MX Gold for quite sometime. What makes the story more compelling now is the fact that they are expected to be in production on one of their four properties shortly.

 

Possessing an experienced management team has proven to be THE differentiator between a good company and a great company – especially one that is going into production.

 

A company in this position needs experienced production people. How about someone who ran one of Goldcorp’s biggest gold mines, namely Penasquito and was in charge of 1400 people? MX Gold possesses  such a person and that is Bert McPherson (please see his bio below). The industry connections Mr. McPherson brings are invaluable. I am speculating that the company will be announcing more acquistions in the future making it a juggernaut in the junior mining space and MX Gold Corp. continues to be one of our top picks.

I updated the company last week – the three paragraphs are below in italics.

“The company is VERY aggressive in its pursuit of production. At the helm is one of the top mining names in Bert McPherson.

Mr. McPherson has most recently been the mine manager of Goldcorp’s Penasquito mine in Mexico, having over 1400 employees directly reporting to his office. The Penasquito mine is Mexico’s second-largest mine and is its largest gold producer. He also held high positions with Teck and Barrick.

What this translates to is the basic fact that Mr. McPherson is very connected and can bring great properties to the MX Gold arsenal.

 

Gold is on an upswing and with four potentially producing properties (we expect at least one this year), so is MX Gold. We speculate the the company is not finished in the acquisition department.

 

One thing that investors need to be cautious about is the extreme volatility of the stock. It is one of the more extreme cases in the junior mining sector rising from $.12 to above $.35 then back down  and now above $.20. I believe this has a lot to do with the volatility in the price of gold, the recent acquisition (which propelled the stock price) and traders.”

 

  1. MGX Minerals (CSE: XMGFKT: 1MGOTC: MGXMF)

 

I am sure by now you are well aware of the company and are either happy that you bought in early or are kicking yourself. Recently we said, “we love this company and its technology” – the stock was trading at $.60/share. In October of 2016 you could have picked it up for around $.15/share. It closed Monday at $2.50/share.

 

The company ‘is for real’ and possesses a disruptive technology. The question remains on the input costs associated with the extraction of lithium from the oil waste. We are expecting the numbers to come out soon. At that point, we will be able to better eliminate what we see as typical market hype associated with the technology, and offer a truer analysis.

 

Another big coop for president Jared Lazerson is the immediate announcement of Marc Bruner as Chairman and head of US acquisitions of Petro Lithium. Mr. Bruner has a stellar record in the unconventional oil and gas business and as amassed many hundreds of millions in the process!

 

Detailed Biography:

 

Over the past 30 years, Mr. Bruner has founded and held directorships with numerous oil and gas companies, making him a leading expert in unconventional oil and gas development in North America and internationally.

 

Mr. Bruner was previously the chairman and chief executive officer of Falcon Oil & Gas Ltd. and served as Ultra Petroleum’s founding chairman where he was involved in developing the Pinedale Anticline in Wyoming, which is now recognized as one of the largest unconventional natural gas fields in the United States. While serving these companies, Mr. Bruner oversaw negotiations and contracts with global oil and gas companies including Halliburton, Exxon Mobil, Questar Gas and Hess Corp. Previously, Mr. Bruner founded Pennaco Energy Inc. to explore and develop coal bed methane properties in the Powder River basin of Wyoming and Montana. In March, 2000, the company was sold to Marathon Oil for $550-million (U.S.).

 

Mr. Bruner established Ultra Petroleum in 1996 to develop the unconventional oil and gas project in Wyoming known as the Pinedale anticline, one of the largest natural gas fields in the United States. During his tenure as chairman of the board, Mr. Bruner conceived and negotiated 37 different contracts that formed the core value and principal asset base of Ultra Petroleum Corp. During his tenure Mr. Bruner grew Ultra to a market capitalization in excess of $7-billion and completed deals with global oil and gas companies including Halliburton Corp., Burlington Northern and Questar Gas.

 

Mr. Bruner founded Pennaco Energy Inc. to explore and develop coal bed methane properties in the Powder River basin of Wyoming and Montana in 1997. In March, 2000, the company was sold to Marathon Oil for $550-million (U.S.), having grown from an initial capitalization of $1-million (U.S.).

 

After founding Falcon Oil & Gas in 2005, Mr. Bruner served as the company’s president and chief executive officer until 2010 and oversaw its market capitalization rise to in excess of $3.7-billion. In 2011, Mr. Bruner established Australian-based Paltar Petroleum. The unconventional oil and gas exploration and development company is focused on exploiting its assets in the Beetaloo basin undeveloped shale deposits.

 

See full release, click here.

 

Why would Mr. Bruner join MGX Minerals possessing a stellar resume as he does unless he saw the true potential of the company?

It will be exciting to see how the MGX story unfolds…we were the first to bring it to you and will continue to do so.

 

 

  1. Nexus Gold Corp. (NXS.V) (OTC:NXXGF) (FFT.NGE)

 

On December 5, 2016 we wrote our first piece on Nexus Gold.

The stock was trading at around $.07/share and closed on Monday at $.305/share. This is a realized gain of over 400%. The company has been fortunate to sample some very high grades:

 

NEWS RELEASE Jan 11

NEWS RELEASE Jan 24

 

Just like the two companies featured above, Nexus Gold also possesses an experienced and successful management team. I have spoken with both President Peter Berdusco and Chairman and COO Alex Klenman on a number of occasions. Both gentlemen understand the public markets – and how to market a great story!

 

Many exploration companies are run by geologists who have less focus (and experience) regarding the business side of the company. They refuse to give up the reins of their company to more competent individuals partly due to their attachment and partly because of their own pride and ego.

Fortunately for shareholders of Nexus Gold, not only do Mr. Berdusco and Mr. Klenman understand the geology, they understand marketing. It is a pleasure to be working with the two of them.

 

We will keep you informed on the company including results of future drill results.

 

Disclaimer: We have been compensated by the company’s above. We are biased. Always perform your own due diligence.

 

Happy Investing!

 

Dr. Kal KoTECHa

 

 

Disclaimer

© 2010 Junior Gold Report

Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR).  No Guarantee as to Content:  Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR, it’s owner and affiliates/associates may buy/sell and trade  the company’s stock written up/video created on from time to time. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

 

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

 

NexusGold-BusinessCards

NEXUS GOLD SIGNS DEFINITIVE AGREEMENT

NEXUS GOLD CORP.

Suite 720 – 700 West Pender Street

Vancouver, BC V6C 1G8

Telephone: 604.558.1920

 

NEWS RELEASE

NEXUS GOLD SIGNS DEFINITIVE AGREEMENT TO ACQUIRE NIANGOUELA GOLD CONCESSION, BURKINA FASO, WEST AFRICA

Vancouver, Canada – December 6, 2016 – Nexus Gold Corp. (“Nexus” or the “Company”) (TSX-V: NXS, OTC: NXXGF, FSE: N6E) is pleased to announce it has entered into a definitive agreement with Precision Resources SARL (the “Optionor”), pursuant to which Nexus will acquire the right to earn up to a 100% interest in the Niangouela gold concession located in Burkina Faso, West Africa.

Nexus will have an option to acquire up to a 90% interest in the Niangouela concession, in consideration for cash payments totalling US$370,000 and the issuance of 600,000 common shares, over a period of three years.  Following acquisition of a 90% percent interest in the concession, Nexus will have a further option to acquire the remaining interest through a cash payment of US$1,000,000, subject to a 1.0% net smelter returns royalty to remain with the Optionor.

The 178 square kilometre concession is located on the Boromo Greenstone Belt, same as the Company’s Bouboulou Gold Concession and is proximal to the Kalsaka deposit.  The property is road accessible and has one major orpaillage (artisanal workings).

“We are very pleased to add the Niangouela gold concession to our growing portfolio,” said President and CEO, Peter Berdusco.  “It’s location is close to our Bouboulou project, so dedicating resources makes good logistical and fiscal sense. We look forward to beginning our exploration work there as historical data shows excellent potential.”

To date 556 pits and 11 trenches have been excavated, and rock and soil samples have been taken.  A total of 1137 samples have been collected.  Previous programs have identified a zone which runs ENE and WSW occurring in the south central part of the concession.  This zone has returned gold in soil samples up to 34 g/t Au, rock samples have returned values up to 18 g/t Au, and trenching has returned values of 4.85 g/t Au over 10 meters.  Recent rock samples taken by Nexus returned values from 1.12 g/t Au to 2.49 g/t Au.

Completion of the transaction remains subject to the approval of the TSX Venture Exchange.  All securities issued in connection with the transaction will be subject to a four-month-and-one-day statutory hold period.

About Burkina Faso

Burkina Faso is a landlocked nation, located in West Africa. It covers an area of roughly 274,000 square kilometres and has an estimated population of more than 16 million people. The country has a stable political setting with a pro-mining and foreign investment stance. Burkina Faso is the fastest growing gold producer in Africa, and was the 4th largest gold producer in Africa in 2012. Eight new mines have been commissioned there over the past six years. The country has excellent geological potential. The Greenstone Belts that host all of the major deposits in Ghana and Cote d’Ivoire continue northward into Burkina Faso. Burkina Faso has undergone less than 15 years of modern mineral exploration, remaining under explored in comparison to neighbouring Ghana and Mali; both of which host world class gold mines in the same belts of Birimian rocks.

About the Company

Nexus Gold Corp. is a Vancouver-based mineral resource company that develops precious metal mineral assets in the world’s premier mining districts. The Company is currently concentrating its efforts on the Bouboulou Gold Concession, an advanced exploration project located in Burkina Faso, West Africa and the Walker Ridge Gold Project, a drill-ready, multiple-target, Carlin-type gold project located in the Independence/Jerritt Canyon Gold Trend, Nevada, USA.  For more information on these projects, please visit the company website at www.nexusgoldcorp.com.

Warren Robb P.Geo., Senior Geologist is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.

On behalf of the Board of Directors of

NEXUS GOLD CORP.

Peter Berdusco
President and Chief Executive Officer

604-558-1920
www.nexusgoldcorp.com

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.

 

Disclaimer© 2010 Junior Gold ReportJunior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR, it’s owner and affiliates/associates may buy/sell and trade the company’s stock written up/video created on from time to time. JGR has been paid by the company written up. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

NexusGold-BusinessCards

Nexus Scores a Coup or Two

Bob Moriarty
Archives

Dec 5, 2016

Investing in mining companies based in Africa can be problematic. Some countries such as South Africa are near basket cases despite a long history of mining. Others such as Zimbabwe are basket cases where only an idiot would consider mining. South Africa is about to pass a new mining law that will take them out of the near basket case category and place them firmly in the basket case group.

Kenya for example has no effective mining law. It’s been in the works for decades but the government can’t quite find it in their power to define conditions under which foreign mining companies can operate under a fixed set of enforceable laws that everyone knows. Tanzania is a swamp of corruption where foreign companies invest at their peril in spite of the country being endowed with diamonds and gold in perfusion.

But there are a few diamonds among the coal as it were. Burkina Faso has been the fastest growing gold producer in Africa for the last ten years. Between 2006 and 2015 gold production in Burkina Faso increased an incredible 2140% from 1.6 metric tons to 35.8 metric tons. I’ve been to the country four times visiting mining projects and while the accommodations and food leave something to be desired, it’s a mining paradise in Africa with the government firmly behind foreign investment.

I went to visit Dwayne Melrose at True Gold at their Karma deposit in Burkina Faso just over three years ago. Their stock was about $.31 a share. Even though we went through another two years of disaster after disaster in the junior gold spectrum, True Gold kept increasing their resource, kept advancing the project to production and were bought out by Endeavour Mining in a $240 million dollar buyout in March of this year. In a little over two and a quarter years, the stock just about doubled in one of the worst bear markets in history.

While I was visiting True Gold, we drove to their second major project in Burkina Faso, the Liguidi prospect some 125 km to the south east of Ouagadougou. We did the standard looking at maps and drill core and drove to an area where artisan miners were sinking 10 meter shafts and going down to the bottom sitting on buckets and being lowered on a rope over a pulley. It was pretty primitive but life is short and brutal in Africa and you make money while the sun shines.

After our visit, we drove half way back to Ouagadougou and stopped under some trees to eat our bag lunches. I was bored so I took my rock hammer and picked up some likely looking quartz rocks to play junior geo with. I’d hammer on a rock not expecting to really find anything and then peer through my loupe for some visible gold. To my great surprise, I found gold. Then I did it again 50 meters away from the first spot. I was convinced the real geos on the trip would be quite impressed with my feat. All the Burkina Faso geos looked at the rock and said, “Yup, you have some gold.”

Then they told me it’s all over the country and there are potentially dozens of mines possible with some money spent on exploration and drilling. We were in a trend running north/south and there was gold for many miles in all the quartz rocks. It wasn’t bonanza grade 5 ounce ore but it was gold, visible gold, and quite suitable for low cost heap leaching.

A few weeks back someone contacted me with a company they wanted me to look at. It was in Burkina Faso and the fellow talking to me wanted to expound at length about how great the country was for mining and exploration. I stopped him in his tracks and said, “been there, done that. I’ve been to three projects that turned into mines, found gold while eating a sandwich and think it’s one of the best countries in Africa to work.”

So I looked at the company he wanted me to look at. Most of the time you can’t really tell much from a website. A mining project is a mining project and if you’ve seen a hundred of them, you’ve seen them all. But Nexus Gold (NXS-V) surprised me. It wasn’t just the prior drilling by Riverside and Roxgold that included the standard Burkina Faso Greenstone Belt grades and thickness of 40 meters of 1.55 g/t Au and 35 meters of 2.2 g/t gold and 12 meters of 5.46 g/t. The Bouboulou project is in a cluster of existing mines on a 120 km strike length. But one thing really did reach out and poke me in the left eyeball.

Their deal on the Bouboulou (pronounced just like it is spelled boo boo loo) was signed on July 11th, 2016. It calls for cash payments of $500,000 USD over a three-year period to get a 75% interest in the property. In addition, they have to issue 900,000 shares to the property owner. The deal is rear end loaded requiring only cash of $45,000 USD before the two-year anniversary. So their cash isn’t going into the hands of the prior owner, it’s going into the ground. They have two years to put up or shut up and it costs them peanuts.

When they have completed the property payments and share issue to get the 75% they can get the remaining 25% for a payment of $1 million USD with their option partner retaining a 1% NSR.

If you got any closer to stealing than a deal like that, you would go to jail. Essentially they are buying 100% of a major gold project in the West African Greenstone Belt for $1.5 million and some paper and a little tiny 1% NSR.

I don’t know just how many properties I have visited in the last 15 years or how many deals I have read about but that’s about the best deal I have seen in hundreds of penny dreadfuls. Nobody does deals with a 1% NSR. I’ve seen deals with 5% NSR and higher. Those sorts of deals means the original landowner ends up with the majority of the profit and takes none of the risk. A 1% deal is wonderful.

That impressed me. As with everything else, you don’t make your money when you sell, you make your money when you buy. If you buy anything “Right” you have a great chance of making money. The property has had over 25,000 meters of drilling already. The former Chief Geologist for Roxgold, Warren Robb wrote the initial 43-101 in 2012 and is planning and supervising the exploration program for NXS including a 2,000-meter phase 1 drill program.

I’m impressed. These guys just scored a coup picking up a known gold project with a good history in one of the most dynamic mining countries in Africa and they did it for pennies. With a market cap of about $5 million US they offer great leverage to gold. If you like gold, you have to love Nexus.

Then they did it again. They signed a letter of intent on a project they call the Niangouela concession on the 22nd of November that calls for cash payments of $370,000 USD and 600,000 shares to get 90% of the property. They can buy the remaining 10% for an additional $1 million US and the same 1% NSR.

Nexus Gold is a cheap option on gold good for at least two years. They just did the best two deals I have seen in fifteen years. They have the management bandwidth, the technical team and enough money to get started. If we are in the gold bull market that I believe we are, their shares are going to go up a lot. In addition they have 25 million warrants at $.075 that would fund a serious drill and exploration program on the potential of two future Burkina Faso gold mines.

Nexus is an advertiser and I am biased. Do your own due diligence.

Nexus Gold Corp
NXS-V $.07 (Dec 02, 2016)
NXXGF-OTCBB 96.6 million shares
Nexus Gold website

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Bob Moriarty
President: 321gold
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321gold Ltd

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