Nexus Minerals (ASX:NXM) is conducting a review of the underground mine study for the Pinnacles Joint Venture Gold Project in Western Australia, in light of the project’s attributes and the current high gold price.
As of 11.30am AEDT, gold’s spot price is sitting at $3,991.38 per ounce, according to ABC Bullion.
The underground mine study update, which is expected to be finalised this current quarter, will refine mine planning and improve cost estimates. Nexus has engaged several mining and support services contractors to undertake these tasks.
Managing Director Andy Tudor says with the gold price continuing to break all historic records, the company believes the timing is right to review Pinnacles.
“Over the last year we have seen gold prices continuing to diverge above costs, generating improved margins across Australian gold mining operations,” Tudor says.
“Updating the Pinnacles Gold deposit mine study is being undertaken in tandem with the Scoping Study work currently being undertaken at the Crusader-Templar Gold deposit at the nearby Wallbrook Gold Project.”
Nexus, which has a market capitalisation of $26.74 million, says Pinnacles is uniquely positioned for low-cost and rapid development should mine studies support favourable economics.
Subject to a binding ore sale and purchase agreement with joint venture partner Northern Star Resources (ASX:NST), which holds 10% of the project, Nexus will sell any ore produced from the tenement to the company. Northern Star must also buy the ore as per the agreed terms.
Nexus adds that the ore will be processed through the Carosue Dam mill, which lies 13km to the north, connected by a granted miscellaneous licence and existing Northern Star infrastructure.
Critical studies including geotechnical assessments, ground water, and waste rock characterisation have been completed. Flora, fauna, and heritage surveys have also been completed and cleared for the project, while a clearing permit has been approved.
Meanwhile, metallurgical studies have shown recoveries to exceed 97%.
The Pinnacles Project hosts a combined open-pit and underground resource estimate of 609,000 tonnes at 4 grams per tonne gold for 78,000 ounces.
Nexus Minerals is a gold-focused explorer actively exploring its tenement package in the Eastern Goldfields region of Western Australia.
The company is also one of the 50 companies confirmed to be presenting at the Noosa Mining Conference, which is being held at the Peppers Noosa Resort from 13-15 November 2024.
Mining.com.au is an official media partner for this year’s Noosa Mining Conference. Click here to register.
Write to Aaliyah Rogan at Mining.com.au
Images: Nexus Minerals
