Nexus Gold Corp. [NXS-TSXV; NXXGF-OTC] said Thursday November 15 that it has struck a deal with company director Warren Robb to acquire the a gold-copper exploration property in the Bridge River Mining Camp, approximately 180 km north of Vancouver, British Columbia.
Robb is also the company’s senior vice-president, exploration.
Nexus said the 509-hectare New Pilot Project is located 10.5 km west of the village of Gold Bridge and relatively close to the producing Bralorne Pioneer Mine, lying 18 km to the southeast.
The Bralorne gold camp represents one of Canada’s most prolific mining operations. It yielded 4.15 million ounces of gold from the Pioneer and King mines between 1928 and 1971.
Under an agreement dated November 15, 2018, Nexus Gold said it will issue 3.5 million shares to the vendor in consideration for the project, which it said is accessible by paved road and has been subject to historical exploration.
Between 1992 and 1994, Cogema Canada Ltd. conducted detailed prospecting and sampling. Nexus said 99 grab samples were taken from three areas, with three returning values in excess of 100 g/t gold.
In addition, 59 soil samples, 229 rock samples and 66 core samples from a small 108-metre diamond drill program were obtained. Significant results included chip samples of 4.03 g/t gold over 10 metres and 1 g/t gold over 10.5 metres in drill core.
Three styles of mineralization have been identified on the project, including siliceous fractures containing sulphides, carbonate altered shears, and quartz veins containing arsenopyrite.
However, as the vendor is a director and senior officer of the company, he is considered a non-arms-length party. Nexus said it intends to seek an exemption from the TSX Venture Exchange’s minority shareholder approval requirement as the fair value of the acquisition does not exceed 25% of the company’s market cap, Nexus said.
Nexus shares were unchanged at 11 cents on Thursday. The 52-week range is 70 cents and 10.5 cents.
The company’s main focus is on West Africa, primarily Burkina Faso.
In June, 2018, the company said it planned to commence a 4,000-metre reverse circulation drill program at its three Burkina Faso projects. It said the summer drill program would consist of 2,000 metres of RC drilling on the Rakounga exploration permit, and 1,000 metres each on the Bouboulou and Niangouela exploration permits.
At the 250 km2 Rakounga concession, drilling was designed to test the three strike extensions of the Koaltenga Zone, which had previously returned intercepts of 32 metres, averaging 1.01 g/t gold.
At the 178 km2 Niangouela gold concession, the company said it planned to test a newly found orpaillage occurring 3 km the northeast of the primary quartz vein system that was drilled in January 2017.
The Nexus portfolio also includes the 38 km2 Bouboulou concession, which is located on the same greenstone belt. It is an advanced stage exploration project with five distinct drill-tested gold zones contained with three 5-km long gold trends. In June, the company said it planned to drill areas proximal to the previously identified Koala and Pelatanga zones, as well as the Rawema South Zone.