Shares in exploration company Nexus Minerals Ltd (ASX: NXM) are taking a nosedive today and are trading 27.45% down at 37 cents apiece.
Nexus is tanking as investors respond to a company announcement out of its Crusader–Templar Prospect, located within the Company's Wallbrook gold project in WA.
Nexus shares have sunk as low as 33 cents early on today before levelling back off at the current levels. This downside extends selling pressure that's been in situ since 13 December for the company. With that in mind, let's take a look at what was released.
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What did Nexus announce today?
Nexus advised of what it dubbed as "high-grade assay results" from recent drilling at the Crusader–Templar Prospect.
The release pointed to a figure showing the "limited amount of drilling undertaken to date and the opportunity that exists both within the known strike distance and also at depth".
Nexus says that as more drilling is completed from its reverse circulation (RC) drilling program, the density of drilling will increase, and internal characteristics to the mineralisation "including internal plunge geometry to the mineralisation will mature".
Specifically, the release noted that the "alteration" observed in diamond hole number 4 that did not correspond to mineralisation, is believed to be a function of a "very late-stage cross cutting oblique structure"
Playing a level tone, the company explained that the drill hole represents "only a point in space, and a very small component of the total strike length, [however] this late-stage structure has provided a conduit for increased fluid flow/silica flooding but in doing so has re-mobilised the gold".
Aside from that, the company added that gold mineralisation tenor and widths observed to date are consistent with broad mineralisation in the shallower levels of less than 100 metres. Two holes at this range are at 29m at 4.60g/t Au within 71m at 2.06 g/t Au from 25m and 16m at 2.31g/t Au within 68m at 0.98g/t Au from 28m, per the release.
These shallow levels then give way to "broad high-grade intersections" at depths of more than 100 metres, including 13m at 5.17g/t Au, within 25m at 2.95g/t Au from 109m and 5m at 4.93g/t Au, within 8m at 3.31g/t Au from 115m.
As such, Nexus explained it has 3 RC drill rigs and 2 diamond drill rigs booked for a January start, and a 50 person exploration camp ready to be established at Wallbrook in early January, to cater for "significant increase in exploration activity" in 2022.
Management commentary
Speaking on the announcement, Nexus Managing Director Andy Tudor said:
The broad high-grade gold results continue to impress and build our confidence in the continuity of the high-grade gold mineralisation at Crusader-Templar. The results from DDH#4, which appears to have been drilled down a cross-cutting post-mineralisation structure, continues to increase our understanding of the gold distribution in this very large system.
Despite its recent challenges, the Nexus share price has soared 196% in the last 12 months, after rallying a further 185% this year to date.
In the past month, it has reversed course and is 33% in the red after sliding another 37% in the past week of trading.
