I looked over the the drill results in their press release from a couple days ago. A couple things -
1. They reported drill thicknesses rather than true thickness. Typically, these are steeply-dipping structures that you are intersecting with a steeply-dipping drill hole. Figure a minimum of 3 meters of true thickness for an underground mine. I didn't see a lot to convince me that they hit anything that thick.
2. Grades are an equal concern. Because these types of deposits are typically underground mines, you are going to need grades of ~10 gpt Au. I saw only two samples that high and they were only over 1.0 meter. It's possible that you could open pit the upper portions but even there you are going to need ~3 gpt Au to support an open pit mine with a high stripping ratio. Anything below 150 meters would be too deep for that.
There are hundreds of these orogenic shear-zone deposits scattered over Canada, Africa and Australia. Only a few percent are economically viable. Granted, they can make huge deposits, but the bulk are just teasers that eat up a lot of exploration dollars. This seems to be a teaser.
One last point is that this news made scarcely a ripple in the stock price. It was likely already discounted by the market (no news for over two months says a lot all by itself). People have been bailing on Nexus for the last month which suggests to me that this information found the light of day long before it got released. Funny how it always seems to work that way.
AI
