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Nexus Minerals, Saracen Partner In Search For High-Grade Gold At Pinnacles

Nexus Minerals (ASX:NXM) has revealed a plan to follow up high grade gold results from the Pinnacles gold project it is exploring in joint venture with Saracen Mineral Holdings (ASX:SAR).

The Pinnacles project, about 100 kilometres north-east of Kalgoorlie, will be subject to a 1,000 metre, four-hole reverse circulation program starting in late March.

The aim of the program is to test for strike and depth extensions to the high-grade mineralisation discovered at the northern end of the prospect area during a drill campaign in November last year.

Highlights from the most recent campaign included 11 metres at 5.6g/t gold, 2 metres at 13.9g/t gold, 13 metres at 4.6g/t gold and 2 metres at 10.7g/t gold.

This program will concentrate on following up the high-grade gold results returned in holes MNPRC1 drilled by Nexus in November 2015 and PERC019 drilled previously by Saracen.

The relogging of the 40 Saracen reverse circulation drillholes has allowed Nexus to build a consolidated geological/alteration/mineralisation model which has assisted in the drill program planning.

Analysis

The Pinnacles gold project covers an area of 4 kilometres by 2 kilometres and is currently held 100% by Saracen Gold Mines Pty Ltd, a subsidiary of Saracen Mineral Holdings.

The tenement lies 13 kilometres to the south of Saracen's Carosue Dam Mine facility and is surrounded on all sides by Nexus' 94 square kilometre tenement package and is contiguous with Saracen's Carosue Dam mining tenements, which includes the operating Whirling Dervish and Karari gold mines.

During 2014, the two mines produced 79,000 ounces of gold, and contain a current resource base of 1.4 million ounces.

The joint venture tenement exhibits historic gold mine workings and multiple parallel mineralised structures. Gold mineralisation occurs within a sub-vertical shear zone and is associated with quartz veining and sheared altered host rocks.

There are a number of small shafts that have been worked in the early 1900s extracting gold bearing ferruginous quartz. There has been limited exploration undertaken on the tenements by a number of companies from the early 1980s to present, but only in the search for shallow oxide gold potential.

Nexus is also well-funded, with $5.8 million on cash at the end of 2015, and is trading at cash backing. The company is therefore leveraged to news flow.

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