NEXUS GOLD INCREASES PHASE ONE DRILLING AT NIANGOUEL,
CLOSES $2 MILLION PRIVATE PLACEMENT
Nexus Gold Corp. (NXS.V) has increased its phase 1 diamond drill program by an additional 1,000 metres at its Niangouela gold project located in Burkina Faso, West Africa.
The company originally planned a 1,000-metre phase 1 diamond drill program on its 178-square-kilometre Niangouela concession. The increased 1,000 metres of diamond drilling is designed to test the primary quartz vein and associated shear zone at depth and along strike. The current program is targeting areas of gold anomalies identified from rock samples and rotary air blast (RAB) drilling that was conducted by the company in December, 2016, and January, 2017.
"Early work is progressing extremely well at Niangouela, we are very pleased with what we are seeing on the ground. Additionally, we are still discovering the size and scope of the primary quartz vein and the shear zone. It's a large concession with a lot of artisanal activity. We have a lot of ground to cover," said senior geologist Warren Robb. "Now that we have established a base of operations and have crews up and running we will begin to initiate work at the Bouboulou concession," continued Mr. Robb. "Our plan is to drill both properties over the coming months with the goal of establishing the extent of mineralization at both sites."
Bouboulou phase 1 diamond drill program
The current work program at Niangouela has assisted the company in understanding and streamlining its exploration efforts in Burkina Faso. The company has based its operation out of the city of Yako which will also serve as its base for the upcoming diamond drill program on the Bouboulou property located six kilometres south of Yako. The objective of the program is to further define and understand the characteristics of the four mineralized zones on the property -- Koala, Rawema, Bouboulou 2 and Pelgtanga. An initial phase consisting of a 2,000-metre diamond drill program is anticipated to begin shortly. More information on the Bouboulou project is available on the company's website.
$2-million private placement closed
The company is also pleased to announce that it has completed a non-brokered private placement of 16,668,219 units in the capital of the company at a price of 12 cents per unit for gross proceeds of $2,000,186.
Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one additional share at a price of 18 cents until Feb. 23, 2019.
"The demand for this financing was extremely strong," commented president and chief executive officer Peter Berdusco. "The participation included over 100 subscribers, the majority of them international, and is a direct testament to the growing interest in our company and properties. These funds allow us to continue to pursue significant assets and execute our work programs in West Africa," continued Mr. Berdusco.
In connection with completion of the offering, the company has paid $15,536 and issued 528,050 common shares and 393,492 warrants to certain finders who introduced subscribers to the offering. All securities issued pursuant to the offering are subject to a statutory four-month hold period.
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 rotary air blast (RAB) drill program that delineated an approximate-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 gram per tonne 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, was taken from material extracted from the eastern shaft from a depth of approximately 60 metres, and 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 the Bouboulou gold concession
The Bouboulou concession covers an area of 38.3 square kilometres and is located approximately 100 kilometres north by northwest of the capital city of Ouagadougou, Burkina Faso. Exploration on the permit area has been conducted by Boliden (1997 to 1999), Riverstone Resources (2005 to 2011) and Roxgold (2011 to 2012). Exploration has consisted of rotary air blast drilling, trenching, geological mapping, airborne electromagnetic, magnetometer and radiometrics, and reverse circulation and diamond drilling.
Highlights of the previous exploration programs include surface rock sampling and trenching returning gold grades from 1.09 to 19.16 g/t gold. Four zones of gold mineralization have been identified on the property termed Koala, Rawema, Bouboulou 2 and Pelgtanga. Previous drilling highlights Bouboulou include 40 m of 1.54 g/t Au (including 20 m of 2.55 g/t Au), 35 m of 2.20 g/t Au (including 12 m of 5.45 g/t Au), four m of 12.83 g/t Au and six m of 4.62 g/t Au (including 0.03 m of 81.32 g/t Au). Please see the Nexus Gold Corp. website for a more detailed look at historical drill results at Bouboulou.
The property is situated at the north end of the Boromo greenstone belt underlain by an alternating sedimentary-basalt-sedimentary-volcanic progression which strikes generally northeast-southwest, and is bisected by the Sabce shear zone, which hosts numerous artisanal gold zones over its 120-kilometre length plus the Bissa mine operated by Norgold.
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 the Ivory Coast continue northward into Burkina Faso. Burkina Faso has undergone less than 15 years of modern mineral exploration, remaining underexplored in comparison with neighbouring Ghana and Mali; both of which host world-class gold mines in the same belts of Birimian rocks.
About Nexus Gold Corp.
Nexus Gold is a Vancouver-based gold exploration and development company operating in some of the world's premier mining districts. 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 km advanced exploration target where previous drilling has confirmed multiple zones of gold mineralization. The Niangouela gold concession is a 178 square km project featuring high-grade gold occurring in and around a primary quartz vein one km 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.