Nexus GOLD Commences Drilling at the Mckenzie GOLD Project, Red Lake, Ontario
NEXUS GOLD CORP.
Suite 802, 750 West Pender Street
Vancouver, BC, V6C 2T8
604-558-1919
NEWS RELEASE
NEXUS GOLD COMMENCES DRILLING AT THE MCKENZIE GOLD PROJECT,
RED LAKE, ONTARIO
Vancouver, Canada – June 19, 2020 – Nexus Gold Corp. (“Nexus” or the “ Company”) (TSX-V: NXS,
OTCQB: NXXGF, FSE: N6E) is pleased to report phase one drilling has commenced at the Company’s
100% owned McKenzie Gold Project, located in Red Lake, Ontario.
The initial phase one program will consist of a minimum of 1000 meters of diamond drilling to test the
mineralization potential of several gold targets occurring within an east-west trending corridor along
the southern contact of the Dome Stock occurring within volcanic rocks of the Balmer Assemblage.
Historic drilling conducted in 2005 along this corridor returned significant values, including 7.49 grams-
per-tonne (“g/t”) gold (“Au”) over 8.2 meters, 15.54 g/t Au over 0.8m (includes 13.08 g/t over 0.3m
and 17.02 over 0.5m), 4.47 g/t gold over 1.4m, and 2.15 g/t Au over 5.5m.
“We’re pleased to begin our first drill program at McKenzie,” said president and CEO, Alex Klenman.
“The limited historical work to date, which has produced some narrow high-grade drill intercepts and
several bonanza grade grab samples, certainly makes a compelling case for more intensive drilling. Our
plan is to focus on the known mineralized zones. We are going to take our time and methodically drill
our way through these target areas in multiple phases. It’s obvious a good drill hole can have a
significant impact, so we’re prepared to be patient and test the areas we feel will give us the best
return,” continued Mr. Klenman.
The initial drill program at McKenzie is designed to expand on 2005 drilling and to follow up on
anomalous rock samples that were collected as part of the 2019 fall prospecting program completed
in the St. Paul’s Bay area of the property. The prospecting program traced the mineralized contact
corridor to the property’s eastern boundary to further determine areas of interest on the property’s
southern end. The focus of the prospecting was concentrated in and around Perch Lake, in the Saint
Paul’s Bay area, located in the southernmost section of the property (figure 2).
Figure 1: McKenzie Gold Project, Red Lake, Ontario, with phase one drill location in red
Figure 2: Phase one drill locations, southernmost area of McKenzie Gold Project, Red Lake, Ontario
The Company anticipates executing additional drilling to test targets located in the northern portion of
the property later in the year.
About the McKenzie Gold Project
The 100%-owned McKenzie Gold Project is a 1,400-hectare high-grade gold prospect located in the
heart of the historic Red Lake gold camp, in western Ontario, Canada. Areas of high-grade gold
mineralization have been established within the northern portion of the claim block (McKenzie Island),
with significant gold values having been drilled along a 600-meter strike in the southern portion of the
property (St. Paul’s Bay area).
As reported in a Company news release dated October 11, 2019, Nexus received a compilation
summary of important historic data from project geological consultants, Rimini Exploration. The
compilation integrated the regional geological and regional geophysical data, thus allowing the
Company's geological staff to compare these trends to the information obtained through ground
exploration conducted to date on the property. The more comprehensive data from the summary,
coupled with the new data from the phase two prospecting program, was utilized in determining
suitable areas to drill test.
The Rimini compilation summary produced historical data the Company was previously unaware of
regarding multiple historical grab samples taken on the McKenzie claim block. The Company had
previously disclosed several high-grade historical grab sample results on the property, including 331.14
g/t Au, 18.02 g/t Au, 212.8 g/t Au, 313 g/t Au, 18.02 g/t Au and 9.37 g/t Au. In the summer of 2019
Nexus conducted it's first ground reconnaissance program at McKenzie and results returned notable
sample assays, including 135.4 g/t Au and 9.3 g/t Au (see Company news release dated June 25, 2019).
Additional high-grade historical grab samples previously unknown to the Company and revealed in the
Rimini summary include several high-grade assays, including 142.49 g/t Au, 115.2 g/t Au, 114.57 g/t
Au, 93.71 g/t Au, 68.03 g/t Au, 53.01 g/t Au, and 16.65 g/t Au from areas located on McKenzie Island
(north block).
The data compilation summary also indicated that little to no exploration has been conducted over the
actual lake portion of the claim block. The Company has noted from the regional data that a number
of northerly trending geophysical trends extend within the lake itself and is viewing these trends as
potential faults or breaks within the Dome Stock.
Preliminary review of lake sediment sampling conducted on the property in 1989 indicates coincidental
anomalous gold geochemical values occurring. Historical values obtained from the analysis of +150
mesh screened lake sediment samples returned values of 0.159 ounce-per-ton (5.45 g/t) Au, 0.154
ounce per ton (5.28 g/t) Au, and 0.116 once per ton (3.98 g/t) Au. The Company intends to conduct
more exploration activity within the lake-bound portion of the project area to determine the
prospectivity of a large underexplored section of the property.
* Note the reported lengths are intercepts and are not true widths
Warren Robb P.Geo., Vice President, Exploration, is the designated Qualified Person as defined by
National Instrument 43-101 and is responsible for the technical information contained in this release.
Nexus Closes Initial Tranche of Flow-Through Private Placement
The Company is also pleased to announce that it has completed an initial tranche of its non-brokered
private placement of flow-through units (each, an “ FT Unit”). In connection with completion of the
initial tranche, the Company has issued 2,545,456 FT Units, at a price of $0.055 per FT Unit, for gross
proceeds of $140,000. Each “FT Unit” issued in the initial tranche is comprised of one common share,
and one common share purchase warrant (each, a “ Warrant”) exercisable to acquire an additional
common share at a price of $0.07 until June 19, 2023.
The Company anticipates completing a further tranche of the placement and will look to raise up to a
total of $250,000 through the offering of FT Units. The gross proceeds from all tranches of the
placement will be used to fund Canadian Exploration Expenses (within the meaning of the Income Tax
Act (Canada)) which shall qualify as “flow-through mining expenditures”, for the purposes of
the Income Tax Act (Canada). The Company anticipates incurring these expenditures in connection
with an upcoming drill program to be conducted on its McKenzie Gold Project, located in Red Lake,
Ontario.
In connection with the placement, the Company has issued 178,182 Warrants, and paid $9,800, to an
arms-length third party that assisted in introducing a subscriber to the initial tranche of the
placement. The Company may also pay finders’ fees to eligible third parties who assist in introducing
subscribers to a further tranche of the placement. All securities to be issued in connection with the
placement will be subject to a statutory hold period in accordance with applicable securities laws, with
the applicable hold period for the initial tranche expiring on October 20, 2020, and the hold period for
the further tranche expiring four-months-and-one-day following closing.
About the Company
Nexus Gold is a Canadian-based gold development company with an extensive portfolio of eleven
exploration projects in Canada and West Africa. The Company’s West African-based portfolio totals five
projects encompassing over 750-sq kms of land located on active gold belts and proven mineralized
trends, while it’s 100%-owned Canadian projects include the McKenzie Gold Project in Red Lake,
Ontario, the New Pilot Project, located in British Columbia's historic Bridge River Mining Camp, and
four prospective gold and gold-copper projects (3,700-ha) in the Province of Newfoundland. The
Company is focusing on the development of several core assets while seeking joint-venture, earn-in,
and strategic partnerships for other projects in its growing portfolio.
For more information please visit nexus.gold
On behalf of the Board of Directors of
NEXUS GOLD CORP.
Alex Klenman
President & CEO
604-558-1920
www.nexusgoldcorp.com
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the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release
may contain forward-looking statements. These statements are based on current expectations and assumptions
that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in
the management discussion and analysis section of our interim and most recent annual financial statement or
other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do
not assume any obligation to update any forward-looking statements, except as required by applicable laws.