Nexus GOLD to Expand 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 TO EXPAND MCKENZIE GOLD PROJECT,
RED LAKE, ONTARIO
Vancouver, Canada – May 20, 2020 – Nexus Gold Corp. (“Nexus” or the “ Company”) (TSX-V: NXS,
OTCQB: NXXGF, FSE: N6E) is pleased to announce that it has entered into an agreement with Shane
Stares (the “ Vendor”), an arms-length third-party, pursuant to which it proposes to acquire two
additional mineral claims located in Red Lake, Ontario (the “Additional Claims”).
The Additional Claims are located in the immediate vicinity of the Company’s wholly owned McKenzie
Gold Project and expand the Company’s existing land package in the region. The two new claim blocks
add 50 hectares to the western section of the McKenzie Island area of the project ground. With the
new ground the McKenzie Gold Project now covers approximately 1,400 hectares.
In consideration for the acquisition of the Additional Claims, the Company is required to issue 400,000
common shares, and complete a one-time cash payment of $4,000. The Company is also required to
grant a one percent (1.0%) net smelter returns royalty on commercial production from the Additional
Claims.
“We’re happy to add ground to the McKenzie project, particularly on the island,” said president and
CEO, Alex Klenman. “Some of the more robust historical assays were obtained on McKenzie Island. By
adding significantly to our island land position, we feel we’ve added value to the project prospectivity.
We will look to implement a prospecting and sampling program on the new ground in the next couple
of months,” continued Mr. Klenman.
All securities to be issued in connection with the acquisition of the Additional Claims will be subject to
a four-month-and-one-day statutory hold period in accordance with applicable securities laws. The
acquisition remains subject to the approval of the TSX Venture Exchange and cannot be completed
until such time as approval is obtained.
Figure 1: McKenzie Gold Project, Red Lake, Ontario, with new claims in red
McKenzie Gold Project - Drill Program Update
The planned phase one diamond drill program at the McKenzie Gold Project is expected to commence
in the next few weeks, when the drill rig and crew from contractor Chibougamau Diamond Drilling Ltd
become available after completing another project in the area. Once a firm date for drill and crew
mobilization are received, the Company will issue a news release with an updated timeline.
The initial phase one program will consist on a minimum of 1000 meters of diamond drilling to test the
mineralization potential of several gold targets occurring within a corridor along the southern contact
of the Dome Stock with felsic Volcanics 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 .8 meter (includes 23.4 g/t over 0.3 meter), 4.47 g/t gold over 1.4 meters,
17.02 g/t Au over .5 meter, 23.87 g/t Au over .2 meter, and 2.1 g/t Au over 5.5 meters* (see figure 2).
The initial drill program at McKenzie is designed 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.
This initial drill program is expandable, and the Company is currently reviewing additional targets to
test if the decision is made in the near term to expand phase one meterage.
About the McKenzie Gold Project
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 now 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.
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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
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.