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Kookynie Gold Project
GOLD
![[map]](images/maps/kookynie.jpg "Click for larger map")
![[map]](images/maps/kookynie-geo.jpg "Click for larger map")
Nex Metals Explorations Ltd (Nex or The Company) is pleased to announce that negotiations have been finalised with FMR Investments (FMR) to acquire 100% of the Kookynie Gold Project. Nex will gain 100% ownership of the project's 44 tenements in return for the issue of 7.8 million shares (tradeable after 6 months) and payment of $150,000 on settlement and assumption of the standard environmental bonds.
The Nex board believe that the Kookynie Gold Project, combined with the neighbouring Yundamindera Gold Project, provide the company an opportunity to capitalise on the historically high gold price and fast track development from Junior Explorer to Gold Producer with longevity of gold inventory.
With this purchase, Nex has historical gold estimates exceeding 424,000 ounces of gold at the Kookynie Gold Project (refer table 1).
These gold ounces are additional to the gold ounces previously reported on the 26 February 2009 as "Nex earning 70% Yundamindera Gold Project" located within 50km of Kookynie.
The Kookynie Gold Project
Located 200 km north of Kalgoorlie and 50 km south of Leonora on the main gold trend, the project covers all historical mining activity and established historical estimates, delineated by Sons of Gwalia and Resource Evaluation Pty Ltd among others, within this gold field. A total of 12 historical gold estimates provide a (non JORC) 424,600 ounce gold endowment (refer Table 1) with most requiring minimal work to upgrade them to JORC compliant status.
The Kookynie Gold Project includes significant infrastructure, permits and statutory approvals vital for speedy development from explorer to producer;
- The Butterfly open pit mined to approximately 25 metres with a remnant 25 vertical metres of low strip ratio ore immediately available.
- Granted tenements plans and permits for a 40 person camp, including recreation facilities.
- Granted tenements, permits concrete foundations and much of a remnant 1M t/a CIP gold treatment plant,
- Haul roads, bore field and a tailings storage / disposal facility statutory requirements and permits.
The camp and mill were established in 1995 and placed on care and maintenance in 1997, however the availability of this permitting and infrastructure negates much of the time and cost to start a mining operation.
The tenements comprise a very large land holding (in excess of 70 square kilometres) and incorporate all of the major gold discoveries in the Kookynie area. Historical production from the region, ranging from the 1890s through to the mid-late 1990s, exceeds 600,000 ounces of gold.
An example of strong historical production is the Cosmopolitan Mine. This mine is part of the tenement package lease area. It produced approximately 360,000 ounces of gold at an average grade of 15 grams per tonne to a depth of 320 vertical metres. Additional potential from this deposit has not been included in the calculated resources (refer table 1).
The Kookynie Gold Project is situated within the North Coolgardie Mineral field covering the Keith-Kilkenny Tectonic Zone (KKTZ). In the Kookynie district this zone presents as a wedge shaped area of predominantly mafic-ultramafic igneous and metasedimentary rocks. These rocks further along strike host many significant gold deposits the largest of which is the Sons of Gwalia goldmine.
Previous exploration has been stop-start predominantly shallow drilling with a number of different companies involved. Nex plans to assess the projects and to, step by step, complete a systematic along strike and down dip exploration approach.
The board believe that the Kookynie Gold Project acquisition, with its 1) Short lead time to gold production, (owing to low strip ratio ore available in the nearby half mined Butterfly open pit) 2) A minimum combined half a million ounce historical gold estimate 3) Realistic potential (at the Cosmopolitan depth extension) for a major new gold discovery 4) Excellent symmetry with the Yundamindera Gold Project, provide Nex opportunity and a solid foundation on which to base future growth. The Board has commenced a scoping study and put in place a project management team.
See Figure 1 and Figure 2 for Project location and Tenement / Mineralisation areas.
| Measured | Indicated | Inferred | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnes | Grade (g/t) | Oz. | Tonnes | Grade (g/t) | Oz. | Tonnes | Grade (g/t) | Oz. | Tonnes | Grade (g/t) | Oz. | |
| Admiral | 695,000 | 2.95 | 65,920 | 130,000 | 2.37 | 9,900 | 825,000 | 2.86 | 75,900 | |||
| Butterfly | 290,000 | 2.7 | 25,160 | 187,200 | 1.06 | 9,600 | 477,000 | 2.27 | 34,800 | |||
| Champion | 16,733 | 4.6 | 2,476 | 16,733 | 4.6 | 2,476 | ||||||
| Clark | 380,400 | 1.67 | 20,400 | 40,000 | 1.38 | 1,780 | 420,000 | 1.64 | 22,180 | |||
| Diamantina | *78,800 | 6.24 | 15,800 | 78,800 | 6.24 | 15,800 | ||||||
| King | *100,000 | 2.2 | 7,075 | 100,000 | 2.2 | 7,075 | ||||||
| Lubra Queen | *141,142 | 2.32 | 10,543 | 141,142 | 2.32 | 10,543 | ||||||
| McTavish | *23,320 | 3.07 | 2,302 | 23,320 | 3.07 | 2,302 | ||||||
| Niagra | 200,000 | 6.97 | 44,800 | 64,000 | 5.48 | 11,300 | 49,000 | 5.5 | 8,700 | 313,000 | 6.44 | 64,800 |
| Orient Well | *2,550,000 | 1.61 | 132,000 | 2,550,000 | 1.61 | 132,000 | ||||||
| Puzzle | 436,000 | 2.79 | 39,200 | 132,000 | 2.05 | 8,700 | 7,400 | 1.74 | 400 | 575,900 | 2.6 | 48,200 |
| Red Lake | 96,000 | 2.4 | 7,400 | 18,000 | 1.9 | 1,100 | 114,000 | 2.32 | 8,500 | |||
| Total | 636,000 | 4.1 | 84,000 | 1,674,333 | 2.63 | 141,380 | *3,324,862 | 1.86 | 199,200 | 5,635,294 | 2.34 | 424,577 |
| * Note: The historical estimate unclassified category moved to inferred category for inclusion in this release. | ||||||||||||
