When it comes to foreshadowing the future of Nexus Gold Corp (CVE:NXS), Chairman and COO Alex Klenman has seen a lot in his experiences throughout the different stages of this rising Vancouver-based mineral exploration company. In an exploration game, the Nexus leader has his sights set on short-term success, and with a powerful geological team under the company’s domain, the Chairman is always seeking the next “high reward” game-changer.
This is not a fool’s gold opportunity, and Klenman will be the first to tell you of Nexus’ challenges as well as its triumphs. It is clear that momentum is on this gold company’s side, between a wealth of differing backgrounds behind the team, “astronomical” returns in new areas of modern exploration in West Africa, and the funds to back up ambitious future projects that lie ahead.
I had the opportunity to discuss the gilded headway Nexus is making in Burkina Faso with Mr. Klenman and why the company is at the edge of tapping into its greatest potential yet.
Let’s examine why this exploration company is at the forefront of making it big just as the tides are turning bullish for the gold sector:
Julie Lamb: Mr. Klenman, I see you have a long history with the many evolutions of Nexus. Originally, you were a director back when Nexus was still Alita Resources. You additionally were a Vice President at Columbia Star Resources for three years, which has since been acquired by Nexus. How has the experience you have gained through these various stages helped you to bring value to the company?
Alex Klenman: The key I think is recognizing what you learn in each set of experiences and retaining that knowledge, then applying that through strategy and execution. We are the sum of our experiences, so it makes sense that the more you do, the more you know.
JL: The company has had its eyes set on targeting West Africa for some key mining prospects, with two projects mid-development in Burkina Faso: Niangouela and Bouboulou gold concessions. Can you elaborate on your goals for these projects in the next few years?
AK: Both are highly anticipated projects. Niangouela has really jumped to the forefront. We’ve gone from acquisition to discovery in just four short months. It’s a big land position- 178 square kilometers, or about 45,000 acres.
Before now, there had never been any modern exploration done in the area, other than some sampling and trenching- but certainly no geophysics and no drilling. We did a quick sample program in December as a test and we found some very high grade returns- astronomical grades, really. Things have progressed very nicely there.
Our follow-up drill program- the first ever at Niangouela- hit gold in eight of the first nine holes, including some high-grade intercepts. So, a fantastic start by any standards.
We will be getting to our other project Bouboulou shortly. It’s a prospect that has already had numerous exploration programs performed there and some significant gold intercepts have already been obtained.
JL: The Boromo greenstone belt has some untapped potential. Before the Niangouela concession, there had never been a drill program completed on the concession. Of the nine holes drilled in 2016, three turned up with visible gold results. What are your prospects for locating high grade gold deposits in this region in the near-term?
AK: First, our exploration team has a lot of experience and has had meaningful success before in Burkina. They know the ground and have been there, and done that, so to speak.
As for Niangouela, we are encouraged by the early success there, particularly when you consider that of the 45,000 acre land package, we’ve only explored a few hundred. We have a long way to go. There are a lot of hot spots and mineralized zones on the property.
JL: Nexus has goals to kickstart a 2,000 meter diamond drill program at Boubolou in the back half of this year. What are your goals with regards to having recently boosted diamond drilling in Burkina Faso?
AK: Bouboulou was our primary focus until Niangouela sort of stole the spotlight with amazing early results. It’s important to understand Bouboulou is farther along the developmental path. Bouboulou may be a smaller land package, but a more proven one as several exploration programs and drill programs were already performed on the concession. We sort of already have an idea of what we have there.
The next steps are to just go in and confirm the historical results in place- then expand the mineralized zones. According to all the historical data we’ve acquired, there are three large trends on the property and each one is suggestive of types of deposits. Our goal would be to confirm or prove what we believe the data shows.
JL: What are your expectations for the company’s drilling projects in Burkina Faso?
AK: We’d like to continue to find additional mineralized zones. That’s the exploration game. We find it and we prove it. Both properties have answered the ‘find it’ question already.
Now, the company is focused on developing projects and moving the programs into definition drilling to determine the size and scope of the mineralization. The goal of any company like Nexus is to get to a resource estimate once you’ve made a discovery or acquired an early stage prospect.
JL: What is the financial picture for the company? Does the company have enough cash to get through all the upcoming steps or will you be looking for additional funding?
AK: Currently we are sufficiently capitalized to conduct several rounds of exploration drilling.
JL: Can you elaborate on the corporate infrastructure and how the company’s team is helping take Nexus to the next level?
AK: We have a complimentary management team. Our corporate side has real world experience in finance, marketing, compliance, branding, communications, and exploration management. Our geological side has a history of successful discovery and development in Burkina Faso and elsewhere. We feel confident growth is in the company’s near-term future.
JL: Does the company have any future acquisitions in mind?
AK: One of the goals is to have a portfolio of prospective projects in play. This allows us to reduce risk and increase the potential for success. We are always on the lookout for high reward projects.
JL: Do you have any plans to use any new technological methods for future gold exploration?
AK: We did employ a cutting-edge “Element Detection” technology on a Nevada project in 2015. It was certainly compelling. Although we couldn’t 100% conclusively prove the validity of the technology, we do believe it is on the right track for the future of mineral exploration.
Where we are in West Africa though is not a place this type of thing would apply. We already know both of our current projects have gold in the systems, so the need to confirm its presence from above-ground isn’t there.
JL: On a closing note, what would you like investors to remember about Nexus and where the company is headed down the road?
AK: Presently, we are confident and satisfied to be in a great position. We have about a $25M or $30M CDN market cap. We are by all accounts on the verge of a memorable bull run in gold. Typically, it is the explorationists, the early stage developers that see biggest returns in this type of market set up.
Over the next two or three years, the biggest and most attractive investment returns will be found among the small juniors like Nexus Gold. In this environment, $25M market caps can become $100M or more.
We like where we are, we like what we’re seeing, and we are excited that timing seems to be on our side. And you know what they say- timing is everything.
Nexus Gold is a sponsor of Smarter Analyst. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.