Nexus snatches up extra ground around its Wallbrook gold project
Mining & Resources
Gold explorer Nexus Minerals will snap up 3 tenements next to its Wallbrook gold project from mining giant Newmont.
The Nexus (ASX:NXM) share price — which has traded between 5.5c and 14.5c over the past year — jumped from its year-low 5.5c to 5.9c on the news.
Nexus will pay Newmont $13,100 and a 2 per cent payment on all minerals sold from the tenements.
The company, which had $3.9 million in the bank at the end of June, will accelerate exploration across the enlarged Wallbrook gold project, which will now cover 250 sq km area in a region known to host significant gold mineralisation.
Recent drilling at Wallbrook returned significant gold hits, including 3m at 19 grams of gold per tonne.
Anything above 5 grams per tonne is considered high grade for gold.