A Vancouver junior miner is making its first foray into northwestern Ontario with a huge land acquisition in the Red Lake camp.
Nexus Gold has signed a definitive agreement with a numbered company (1082545 B.C.) to acquire the McKenzie Gold Project near Red Lake.
The project consists of a series of mineral claims located in northwestern Ontario.
In consideration, Nexus will issue 4,000,000 common shares and complete a one-time cash payment of $150,000. The transaction remains subject to the approval of the TSX Venture Exchange.
The 1,348.5-hectare property is the Red Lake gold camp and has hosted nine documented historical gold occurrences with limited exploration.
This is the company’s first Ontario property.
Nexus is a gold explorer and development company working on multiple projects in Burkina Faso, West Africa. It also has a very prospective gold property – New Pilot – in the Bridge River Mining Camp in British Columbia.
The Red Lake property contains numerous high-grade showings that the company believes has huge upside.
"The acquisition of the McKenzie Gold Project adds a Canadian-based project with high-grade potential, in a marquee district, to our portfolio," said Nexus president-CEO Alex Klenman in a Feb.12 news release.
“Nexus now has a total of six projects on two continents, in prolific and proven gold producing regions. With multiple types of exploration targets and excellent jurisdictional diversity, we feel Nexus is well positioned for growth in 2019 and beyond.”
The property is just northwest of the Town of Red Lake and immediately west of active gold mines at Cochenour and Balmertown.
Two years ago, a ground reconnaissance program returned high-grade samples returning up to 313 grams per tonne (g/t) of gold and a new showing was also discovered that returned multiple high-grade samples ranging from 9.37 g/t to 331 g/t.
Cypress Development Corp conducted a small drill program in 2005 near the southern boundary that intersected an east-west-trending mineralized zone up to 600 meters long and open along strike and to depth.
Nexus said it’s also raising up to $2 million to conduct drilling and exploration work at four gold projects in Burkina Faso, and for its upcoming summer programs at the New Pilot Gold Project in British Columbia and the McKenzie Gold Project in Red Lake.