Nexus Gold Corp. has entered a letter of intent with Precision Resources SARL, pursuant to which Nexus will acquire the right to earn up to a 100-per-cent interest in the Niangouela gold concession located in Burkina Faso, West Africa.
Nexus will have an option to acquire up to a 90-per-cent interest in the Niangouela concession in consideration for cash payments totalling $370,000 (U.S.) and the issuance of 600,000 common shares over a period of three years. Following acquisition of a 90-per-cent interest in the concession, Nexus will have a further option to acquire the remaining interest through a cash payment of $1-million, subject to a 1-per-cent net smelter return royalty to remain with the optionor.
The 178-square-kilometre concession is located on the Boromo greenstone belt, same as the company's Bouboulou gold concession and is proximal to the Kalsaka deposit. The property is road accessible and has one major orpaillage (artisanal working).
To date, 556 pits and 11 trenches have been excavated, and rock and soil samples have been taken. A total of 1,137 samples have been collected. Previous programs have identified a zone which runs east-northeast and west-southwest occurring in the south-central part of the concession. This zone has returned gold-in-soil samples up to 34 grams per tonne gold, rock samples have returned values up to 18 grams per tonne gold, and trenching has returned values of 4.85 grams per tonne gold over 10 metres.
"Niangouela, combined with our Bouboulou project, further solidifies our plans to build a portfolio of highly prospective exploration projects," commented Peter Berdusco, president and chief executive officer of Nexus. "The property has returned excellent gold values to date and is located approximately an hour away from our Bouboulou concession. As we are already deploying resources in the area, a concurrent work program at Niangouela makes good sense and adds additional upside to the months ahead."
Nexus geologist Warren Robb is on site in Burkina Faso and is organizing crews, equipment and preparing drill pad locations. With the completion of the rainy season and local crops harvested, the company will provide further work updates in the coming weeks.
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