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High-grade copper-nickel hits reveal NexMetals’ Selebi potential

Results from NexMetals Mining’s (TSXV, NASDAQ: NEXM) Selebi North project in eastern Botswana have extended the South Limb’s mineralization by 35% beyond last year’s resource estimate. Shares of the company rose.

Hole SNUG-25-186 cut 16.25 metres grading 1.13% copper and 0.94% nickel from 895 metres depth, NexMetals reported Wednesday. The intercept included 10.45 metres at 1.62% copper and 1.24% nickel, and 6.45 metres grading 2.3% copper and 1.44% nickel.

“The continued extension of high-grade copper and nickel mineralization at Selebi North is a significant step in the right direction, highlighting how much potential was previously undefined,” NexMetals CEO Morgan Lekstrom said in a release. “The results today reinforce our growing confidence and support our strategy of driving additional value through targeted drilling, unlocking the full potential of this asset.”

Summer tailwinds

The results extend a productive summer for NexMetals, whose stock started trading on the Nasdaq in mid-July. A day later, the company received a letter of interest from the Export-Import Bank of the United States (EXIM) for a potential loan of $150 million to support the redevelopment of its past-producing Selebi and Selkirk nickel-copper mines in Botswana.

The listing follows a $36 million investment into NexMetals predecessor Premium Resources six months ago by investors such as mining entrepreneur Frank Giustra and his Fiore Group.

NexMetals shares gained 9% to C$7.38 apiece on Wednesday morning in Toronto, for a market capitalization of C$156.58 million. The stock has traded in a 12-month range of C$4.90 to C$17.

Mineralization extends down

The holes SNUG-25-184 and SNUG-25-186 extended mineralization 315 metres down-plunge past the 2024 resource, which has a 990-metre down-plunge extent, NexMetals said.

SNUG-25-186 builds on the strength of SNUG-25-184 in the South Limb, which cut 13.5 metres at 1.13% copper and 1.24% nickel, as reported in June.

Large resource

The Selebi North site hosts 3 million indicated tonnes grading 0.9% copper and 0.98% nickel for 27,000 tonnes contained copper and 29,000 tonnes nickel, according to an initial resource released almost one year ago. Inferred resources total 5.83 million tonnes grading 0.90% copper and 1.07% nickel for 52,000 tonnes contained copper and 62,000 tonnes nickel.

The adjacent Selebi Main deposit hosts 18.9 million inferred tonnes grading 1.69% copper and 0.88% nickel for 319,000 tonnes contained copper and 165,00 tonnes of nickel.

The Selebi Main mine started production in 1980. Both it and Selebi North – which is located about 410 km north of the nation’s capital, Gaborone – were shuttered in 2016 due to a failure in the processing facility. Selkirk, about 75 km north of Selebi North, hosts an inferred resource of 44.2 million tonnes grading 0.24% nickel, 0.30% copper, 0.55 gram palladium and 0.12 gram platinum.

Its mining licence covers 14.6 sq. km, plus four prospecting licences covering 126.7 sq. km.

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