Nexus Gold Signs Definitive Agreement To Acquire Rakounga Gold Concession, 250 Sq Km Contiguous To The Company’s Bouboulou Project
Nexus Gold Corp. (TSXV:NXS,OTC:NXXGF,Frankfurt:N6E) is pleased to announce that it has signed a definitive agreement with BELEMYIDA SA (the “Optionor”), pursuant to which Nexus will acquire the right to earn up to 100% interest in the Rakounga Gold Property (the “Property”) located in Burkina Faso, West Africa.The 250-square kilometre Rakounga Gold property is contiguous to the …
Nexus Gold Corp. (TSXV:NXS,OTC:NXXGF,Frankfurt:N6E) is pleased to announce that it has signed a definitive agreement with BELEMYIDA SA (the “Optionor”), pursuant to which Nexus will acquire the right to earn up to 100% interest in the Rakounga Gold Property (the “Property”) located in Burkina Faso, West Africa.
The 250-square kilometre Rakounga Gold property is contiguous to the Company’s Bouboulou gold concession. The Property borders Bouboulou on the west and south sides and hosts the Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend. Bouboulou 1 is an active orpaillage with shaft workings that extend down approximately 80 metres.
Nexus will have an option to acquire a 90% interest in the Property, in consideration for cash payments of US$400,000 and the issuance of 575,000 common shares of Nexus, over a period of three years, broken down as follows:
- US $ 15,000 (fifteen thousand) and 25,000 shares of the Company upon signing of a definitive agreement.
- US $ 15,000 (fifteen thousand) and 50,000 shares of the Company not later than the first anniversary of the definitive agreement.
- US $ 120,000 (one hundred and twenty thousand) and 200,000 shares not later than the second anniversary of the definitive agreement.
- US $ 250,000 (two hundred and fifty thousand) and 300,000 shares on or before the third anniversary of the definitive agreement.
Following the acquisition of a 90% interest in the Property, Nexus will have the option to acquire the remaining 10% interest in the Property through a cash payment of US$1,000,000 with a 1% net smelter return royalty remaining with the Optionor.
“We are very pleased to add Rakounga to our portfolio, which effectively represents a 700 percent increase in size to the Bouboulou concession area,” said President & CEO Peter Berdusco. “With just under 300-sq km of ground, we can now follow both the already established Bouboulou 2 and Pelatanga-Rawema mineralized trends for several kilometres to the southwest. There is significant artisanal activity along these trends and we’re excited to continue our exploration efforts there in the coming months,” continued Mr. Berdusco.
All securities issued in connection with the property option will be subject to a four-month-and-one-day statutory hold period. The property option remains subject to a number of conditions, including negotiation of definitive agreements, approval of the TSX Venture Exchange, and such other conditions as are customary in transactions of this nature.
Historical Data – Work to date at Bouboulou
The main Bouboulou concession covers an area of 38.3 square kilometers and is located approximately 100 kilometers north by northwest of the capital city of Ouagadougou. Exploration on the permit area has been conducted by Boliden (1997 – 1999), Riverstone Resources (2005 to 2011) and Roxgold Inc. (2011 to 2012).
The property is situated at the north end of the Boromo greenstone belt underlain by an alternating sedimentary-basalt-sedimentary-volcanic progression which strikes generally northeast-southwest, and is bisected by the Sabce Shear Zone, which hosts numerous artisanal gold zones over its 120-kilometre length plus the Bissa Mine operated by Nordgold.
Four zones of gold mineralization were previously identified on the property termed Koala, Rawema, Bouboulou 2 and Pelatanga. A fifth zone, Rawema West, was recently identified by Nexus geologists, as announced in a June 6, 2017 news release.
The Koala zone as well as the new Rawema West zone have both yielded strong samples, as announced in the June 6 news release. Highlights include high-grade quartz sample BBL-012, which contained visible gold, taken from an artisanal shaft (or orpaillage pit) 70 metres below surface at the Koala zone, that returned 66.1 grams-per-tonne (“g/t”) gold (“Au”). Sample BBL-013 (quartz material containing pyrite), also taken from an artisanal shaft at approximately 70 metres below surface, returned a value of 29 g/t Au.
The Rawema West zone occurs approximately 1000 metres west of the main workings at the previously identified Rawema site. The Artisanal workings extend some 150 metres in length and appear by observation to extend to depths of greater than 20 metres.
In 2011 and 2012 Roxgold Inc completed reverse circulation (RC) and diamond drilling (DD) programs to test the previously identified mineralized zones. Historical drilling highlights from Bouboulou can be found on the Company website here:
The Company has subsequently identified three distinct 5000m (5km) long anomalous gold trends at the Bouboulou concession. Each of the three trends display strong coincidental geochemical and geophysical gold anomalies, and extend from the four previously drill-identified mineralized zones, namely Rawema, Pelatanga, Bouboulou 2 and Koala. They are identified by numerous orpaillages (artisanal workings) and geochemical samples of greater than 1 g/t Au. All three of the Bouboulou trends display similar coincidental anomalies. Each trend has substantial artisanal workings either directly on them, or along trend.
A map of the three trends can be seen online here:
A total of 2,596 metres of diamond drilling was completed at the Bouboulou concession in mid-July. Phase one drilling tested the Koala, Rawema, and Bouboulou 2 zones, to depths of approximately 150 to 175 metres. Assays are currently pending and results will be released once received, reviewed and verified.
In addition, the Company is also awaiting results of approximately 2000 metres of diamond drilling from the Niangouela concession, completed in mid-May. After lab delays, the Company also anticipates receiving these results shortly and will release them once received, reviewed and verified.
The Company plans on resuming exploration activity at its Burkina Faso projects in the fall.
About Burkina Faso
Burkina Faso is a landlocked nation, located in West Africa. It covers an area of roughly 274,000 square kilometres and has an estimated population of more than 16 million people. The country has a stable political setting with a pro-mining and foreign investment stance. Burkina Faso is the fastest growing gold producer in Africa, and was the 4th largest gold producer in Africa in 2012. Eight new mines have been commissioned there over the past six years. The country has excellent geological potential. The Greenstone Belts that host all the major deposits in Ghana and Cote d’Ivoire continue northward into Burkina Faso. Burkina Faso has undergone less than 15 years of modern mineral exploration, remaining under-explored in comparison to neighbouring Ghana and Mali; both of which host world-class gold mines in the same belts of Birimian rocks.
About the Company
Nexus Gold Corp. is a Vancouver-based gold exploration and development company operating in some of the world’s premier mining districts. The Company is currently concentrating its efforts on two gold projects located in Burkina Faso, West Africa. The Bouboulou gold concession is a 38-sq km advanced exploration target where previous drilling has confirmed multiple zones of gold mineralization. The Niangouela gold concession is a 178-sq km project featuring high grade gold occurring in and around a primary quartz vein 1km in length and associated shear zone. For more information on these projects, please visit the Company website at www.nexusgoldcorp.com.
Warren Robb P.Geo., Senior Geologist is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
President and Chief Executive Officer
Neither 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.