Nexus Gold Plans Drill Programs at Mckenzie Gold Project in Red Lake, Ontario and at Dakouli 2 in Burkina Faso, West Africa

2021-02-10 / @thenewswire

(TheNewswire)

Vancouver, Canada - TheNewswire – February 10, 2021 - Nexus Gold Corp. (“Nexus” or the “Company”) (TSXV:NXS) (OTC:NXXGF) (FSE:N6E) is pleased to provide a corporate update regarding ongoing drill programs at both the Dakouli 2 Gold Concession in Burkina Faso, West Africa, and

Dakouli 2 Gold Concession, Burkina Faso, West Africa

Assays are pending for the remaining six holes from the Company’s recently completed maiden drill program at the 100%-owned, 98-sq km Dakouli 2 concession, and it will report those results once received, reviewed, and verified. The Company anticipates receiving these results in the next week to 10 days as delays consistent with mandated Covid-19 protocols and increased lab activity are currently being experienced.

The Company concluded a 2,914 meter Reverse Circulation (“RC”) drill program in late December. The program was designed to test several areas that have returned either high gold values from rock samples or coincidental soil geochemical and geophysical anomalies proximal to artisanal workings, termed “orpaillages”, and resulted in significant gold discovery.

Noteworthy results were received in hole DKL-20-RC-007, which returned 4.83 grams-per-tonne (“g/t”) gold (“Au”) over 20 meters, including 14.51 g/t Au over 6m (also including 39.6 g/t over 2m). Other significant results were realized in hole DKL-20-RC-009, which returned 1.61 g/t Au over 10 meters, including 4.11 g/t Au over 2 meters, and DKL-20-RC-010, which returned 1.89 g/t Au over 8 meters, including 6.54 g/t Au over 2 meters. In addition, several holes returned lengthy intercepts of sub-one gram gold, including DKL-20-RC-006 which returned .33 g/t Au over 36 meters, including .59 g/t Au over 18 meters, and DKL-20-RC-002 which returned .64 g/t Au over 16 meters.

The gold mineralization encountered in the Northeast zone consists of disseminated sulfides, containing pyrite, chalcopyrite, galena, and particles of visible gold. The mineralization occurs at or proximal to contacts between clastic sedimentary rocks and Mafic volcanics rocks. The mineralized zones are part of pervasive hydrothermal alteration developed in these highly strained sedimentary and volcanic rocks. The company is interpreting the foliation observed in the RC chips as being loosely sub-parallel to the dominant foliation fabric of the Sabce shear zone.

The combination of higher-than-average grades and lengthier sub-one gram intercepts is encouraging, and warrants follow up diamond drilling which is now scheduled for April 2021. More information on the scope of this program will be announced in the coming weeks.

“We are very encouraged by the drill-confirmed discovery at Dakouli,” said Alex Klenman, President and CEO. “The higher grade hits distributed among the lower grade intercepts is a positive sign when looking for open pit, mineable deposits in the region. The first round successfully established a broad zone of mineralization in the northeast corner of the property. We will begin to work our way along the proposed strike to the west and to the south of the main zone in an effort to expand the mineralized footprint, and to find other zones coincident with soil grid and sampling results we’ve previously generated across the property. Dakouli is a very promising project and one we’re anxious to continue to drill define,” continued Mr. Klenman.

More information on the results to date of the maiden drill program are available on the Company’s website: Nexus Gold Drills 20 meters of 4.83 g/t Au, Including 14.51 g/t Au over 6m, at the Dakouli 2 Gold Concession, Burkina Faso, West Africa – Nexus Gold Corp. (nxs.gold)

McKenzie Gold Project, Red Lake, Ontario

A phase two drill program at the McKenzie Gold Project in Red Lake, Ontario, is now scheduled for mid-to-late March 2021. The Company is planning a 2000 meter diamond drill campaign that will either follow up the initial round of drill results obtained last August in the St. Paul’s Bay region (south) of the project ground, or that will target the McKenzie Island portion (north) of the property. Company personnel are monitoring weather and temperature forecasts with regard to island access as ice thickness and stability are required. More information regarding specific target locations of the upcoming drill program at McKenzie will be made available shortly.

Historical drilling in the St. Paul’s Bay region of the property had already confirmed the presence of narrow, gold-bearing veins in the St. Paul’s Bay region of the southernmost section of the property. The inaugural Nexus drill program was able to replicate these same types of intercepts, with several intercepts in the half meter to 1.5-meter length assaying between 3.42 g/t Au to 7.43 g/t Au. A higher-grade intercept, 2.75 meters of 13.25 g/t Au (including 1 meter of 36.2 g/t Au) (see Company news release dated August 18, 2020) was also recovered.

The second phase of this drill program recovered two significant, lengthy mineralized intercepts, including 117.4 meters of .33 g/t Au (including 9.4 meters of 1.26 g/t Au), and 117.5 meters of .62 g/t Au, which included 55.5 meters of 1 g/t Au, including 16 meters of 1.42 g/t Au, and 6 meters of 2.37 g/t Au, and 9 meters of 1.14 g/t Au, among others (see Company news release dated September 3, 2020). These holes were drilled north of the other 11 holes and represent an additional area of interest for further exploration.

The results from the first phase of drilling were successful in identifying a second style of gold mineralization at McKenzie. The occurrence of disseminated lengthier near one-gram intervals is viewed as a key development in establishing the presence of economic mineralization at the project. It is also notable that this type of mineralization more closely resembles Premier Gold Mines’ nearby past-producing Hasaga Mine, located approximately five kilometers east of McKenzie, which is estimated to host and Indicated mineral resource of 1.12M ounces of gold grading .83 g/t Au*.

“We are executing on our plans to alternately drill and develop our primary projects in both West Africa and Canada,” said Alex Klenman, President and CEO. “The path we’re on is one of discovery and development. The way to unlock value begins at the end of a drill. We need to progress our flagship properties through drilling, and we intend to do so. We’re eager to get back to Red Lake and look forward to executing on a second round of drilling in the coming weeks,” continued Mr. Klenman.

More information on the McKenzie Gold Project is available on the Company’s website: Nexus Gold Drills 55.5m of 1.00 g/t Au, Including 16m of 1.42 g/t Au and 6m of 2.37 g/t Au, at the McKenzie Gold Project, Red Lake, Ontario – Nexus Gold Corp. (nxs.gold)

Warrant Extension and Repricing

The Company also announced that it is proposing to extend the expiry dates and alter the exercise price of certain share purchase warrants (the "Warrants"), which are exercisable into common shares in the capital of the Company (the “Shares”).

9,744,913 Warrants were issued on February 26, 2019 at a price of $0.18 per Share (the “February Warrants”), 4,924,564 Warrants were issued on March 19, 2019 at a price of $0.18 per Share, 3,492,565 Warrants were issued on March 19, 2019 at a price of $0.20 per Share and 787,500 Warrants were issued on March 21, 2019 at a price of $0.18 per Share (the “March Warrants”). No warrants have been exercised to date.

Subject to the approval of TSX Venture Exchange ("TSX-V"), Nexus Gold will extend the expiration of the February Warrants to February 26, 2022 and lower the exercise price of the February Warrants to $0.10 per Share. Further, Nexus Gold will extend the expiration of the March Warrants to March 19, 2022 and lower the exercise price of the March Warrants to $0.10 per Share.

In accordance with TSX Venture Exchange regulations, the expiration of all Warrants will be accelerated to 30 days if, for any ten consecutive trading days, the closing price of the common shares of the Company on the TSX-V is $0.125 or greater (the “Acceleration Trigger”), with such 30-day period starting 7 days after the Acceleration Trigger. All other terms of the Warrants will remain unchanged.

The extension and price reduction will not apply to the 285,130 and 335,040 Broker Warrants issued on February 26, 2019 and March 19, 2019, respectively.

Completion of the amendments to the Warrants remain subject to the approval of the TSX Venture Exchange, and the holders of the Warrants.

*HASAGA PROJECT RED LAKE MINING DISTRICT, ONTARIO, CANADA by Vincent Jourdain (Ph.D., P.Eng.), John Langton (M.Sc., P. Geo.) & Abderrazak Ladidi (P.Geo.) dated February 24th, 2017).

*Grab samples are selective by nature and may not represent the true grade or style of mineralization across the property.

* Note the reported diamond drill lengths are intercepts and are not true widths.

Warren Robb P.Geo., Vice President, Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for, and has approved, the technical information contained in this release.

About the Company

Nexus Gold is a Canadian-based gold exploration and development company with an extensive portfolio of eleven projects in Canada and West Africa. The Company’s West African-based portfolio totals five projects encompassing over 750-sq kms of land located on active gold belts and proven mineralized trends, while it’s 100%-owned Canadian projects include the McKenzie Gold Project in Red Lake, Ontario, the New Pilot Project, located in British Columbia's historic Bridge River Mining Camp, and four prospective gold and gold-copper projects (3,700-ha) in the Province of Newfoundland. The Company is focusing on the development of several core assets while seeking joint-venture, earn-in, and strategic partnerships for other projects in its growing portfolio.

For more information, please visit nxs.gold

On behalf of the Board of Directors of

NEXUS GOLD CORP.

Alex Klenman

President & CEO

604-558-1920

info@nexusgoldcorp.com
www.nexusgoldcorp.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.