Nexus Minerals Scoping Study Shows Positive Economics For Crusader-Templar Gold Deposit

Nexus Minerals Ltd (ASX: NXM) has revealed positive outcomes from a scoping study for open-pit mining and third-party toll treatment of the Crusader-Templar gold deposit.

Watch: Nexus Minerals MD Andy Tudor Walks JustStocks Video Through Findings From Positive Crusader-Templar Scoping Study

Crusader-Templar is located ~130 kilometres northeast of Kalgoorlie in Western Australia.

Third-party toll treatment

Nexus considered various options utilising third-party processing plants operating under a toll treatment agreement.

There are currently multiple active processing plants within a radius of 150km from Crusader-Templar.

80,000 ounces gold production

Using a gold price of A$3,500 the production target mining inventory for the project is 1.5M tonnes at 1.75g/t producing 80,000 ounces gold.

This will generate an undiscounted accumulated cash surplus of $67M (after payment of all working capital costs and pre-mining capital requirements).

At a gold price of A$4,000 the same production target mining inventory will generate an undiscounted accumulated cash surplus of A$106M.

28-month mine life

Nexus has estimated a total funding requirement of between A$10M and A$15M based on a Stage 1 “multi-pit” design, providing a 28-month mine life.

Importantly, Stage 1 project economics are robust for a broad range of gold prices, with positive outcomes returned above a gold price of A$2,635 per ounce.

Furthermore, substantial upside potential exists as this scoping study has only assessed the economics based on mining 26% of the current 5.7 million tonnes at 1.7g/t for 304,000oz gold mineral resource of Crusader-Templar.

Next steps

Nexus Managing Director Andy Tudor said: “Nexus can now take the next steps to assessing its various alternatives over Crusader-Templar, which may include sale, partial sale or joint venture to advance the project to commercialisation.

“However, Crusader-Templar represents only a small part of Nexus’ highly prospective large under-explore landholding, which we are excited to grow and add value through exploration.”

 

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