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Ringler Research issued a Research Note about Nexus Gold Corp.

Carsten Ringler, Ringler Consulting and Research GmbH
0 Comments| May 17, 2017

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Nexus Gold Corp - An exciting gold explorer with promising concessions in the West African Burkina Faso

Nexus Gold controls two very promising concessions in Burkina Faso with the two projects "Bouboulou" and "Niangouela". They cover a total of 216.8 square kilometers and are geologically located in the Boromo-Goren greenstone belt, in which various other companies are also successfully active. The two mines "Bissa" and "Bouly" of Nordgold are located only a few a km away from "Niangouela". Management goal is to further develop properties that have the potential to host several million ounces gold.

Burkina Faso, with its capital Ouagadougou, is located in the western part of Africa. In 2015 gold production in Burkina Faso was 36.5 tons or 1,173,500 ounces, ranking as fourth largest gold producer in Africa. The country covers 274,000 square kilometers of land and is surrounded by Mali, Niger, Benin, Togo and Ghana. There is a predominantly tropical climate in Burkina Faso with a dry season and a rainy season, which fall between the months of June and September.

The gold mining sector in Burkina Faso is one of the most important sources of income. There are several companies successfully exploring and mining gold in the West African country. These include, among others, the producers IAMGOLD, Nordgold, Semafo, Roxgold, Endeavor Mining or the exploration companies like Nexus Gold, Golden Rim Resources, Savary Gold and Sarama Resources. With a total investment of 390 million USD, Nordgold ist the second largest gold producer, represented by two its largest mines, "Bissa" and "Bouly".

Let’s introduce Niangouela first: On 6th December 2016, the company completed the acquisition of the concession areas. The exploration licenses include a land package of over 178 square kilometers. The project area is accessible via a road connection and small-scale artisanal mining has already been carried out in the past by local people. There are also some quartz veins as well as outcoppings from the ground. The company initiated a surface exploration program and extracted quartz vein material from an old underground mine. A highlight of the investigations resulted in phenomenal results with 2,950 grams of gold per ton.

In January 2017, Nexus Gold launched a 2,000 meter diamond drilling program with the aim of testing the primary quartz vein and associated shear zone at depth and along strike. Results delivered gold in eight of the first nine holes drilled.

The highlights of the first nine phase 1 drill holes at Niangouela published in the company's press releases on March 7 and April 5, 2017 included 6.2 meters of 4.00 grams of gold per ton (including a Meters with 20.50 grams of gold per ton), 4.85 meters with 26.69 grams of gold per ton (including 0.62 meters with 11.70 grams of gold per ton and 1.03 meters of 132 grams of gold per ton) and four meters with 2.95 grams of gold per ton (including a meter of five grams of gold per ton) and one meter of 5.92 grams of gold per ton. It should be noted that the assay results represent intercept lengths and are not true widths.

Beginning of April 2017, a 2,000-meter phase 2 drill program has been initiated to test the dip and strike extensions of gold mineralization identified by the company in its initial phase 1 program. Within the framework of the program, further targets are also being tested which have been identified by surface mapping and exploration. In the press release of May 3, the geologists of Nexus reported that in addition to the previously tested primary quartz vein shear system, five further mineralization zones were identified.. In the recent news release from May 11, Nexus Gold reported that the recent phase two drill programm was completed. A total of 18 holes, consisting 2,572 meters were drilled. We expect the release of the drill results within the next weeks from the company.

The second major project of Nexus Gold in Burkina Faso is the Bouboulou property, which was taken over in July 2016 under an option agreement. The exploration permit of Bouboulou covers an area of 38.8 square kilometers located about 75 kilometers northwest of the capital Ouagadougou and is accessible via a paved road. The project as well as Niangouela is located in the Boromo-Goren greenstone belt and is bisected by the Sabce shear zone. This regionally north-east trending structure hosts numerous artisanal workings along ist 120 kilometer length. The Bissa mine of Nordgold is in the same region. The previous owners of Bouboulou (Boliden, Riverstone Resources and Roxgold) identified various gold mineralized zones on the project site.

Highlights of various surface exploration programs include rock sampling and trenching that returned gold grades from 1.09 to 19.16 grams of gold per ton. Four zones of gold mineralization have been identified on the property: Koala, Rawema, Bouboulou 2 and Pelgtanga. Roxgold then performed a drilling program in the four mineralized zones.

Here are excerpts of the highlights of the historic drilling program, confirming zones with potentially economic gold mineralizations:

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It should be noted that the assay results represent intersecpt lengths and are not true widths.

There are many indications that other extensive gold mineralizations can be found at Bouboulou. Nexus's geologists see the potential for two types of gold deposits: The PR Trend and KB Trend (see below) appear to be spatial and structural controlled and could host an ore body in the 20 to 40 million tonne range at grades of one to three grams of gold per ton. At the B2 Trend is the conceptual geological exploration potential for a smaller ore body with 5 to 7 million tonnes of rock. However, the estimates here are based on a higher grade mineralization zone with five to seven grams of gold per ton.

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Various companies are active in Burkina Faso in the area of gold exploration and mining

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Burkina Faso is one of the largest gold producers in Africa

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Nexus Gold controls at total of 216 square kilometers of concession areas

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Burkina Faso is located in the western part of Africa

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The share price of Nexus Gold has outperformed in recent 12 months significantly the ETF "Market Vector Junior Gold Miners (GDXJ), which contains a basket of junior gold producers

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Summary and conclusion:

Nexus Gold is an exciting exploration story in the famous Boromo-Goren greenstone belt in Burkina Faso. Warren Robb is the senior geologist of Nexus who is well versed in the country. He was previously responsible for the exploration and development of Roxgold's Yaramoko project.

The company has big plans in the upcoming 18 months. Further exploration programs are planned at Niangouela and Bouboulou with the aim of defining a resource. The company is planning to beginn drilling their phase one program with a total 2,000 meters at Bouboulou by mid June this year. The management is also striving to acquire additional attractive projects in order to increase the company's value. We are confident several gold producers got Nexus Gold already on the radar and watch all drilling results closely. One of the last acquisitions in Burkina Faso took place in 2016 as Endeavor Mining acquired True Gold for 240 million CAD, who developed the "Karma project". The resource valuation was about 49 CAD per ounce of gold back then.

Even though Nexus Gold is still at the very beginning of the exploration and development phase, it makes sense to put a foot in the door right now. We also like the large country package of Nexus. The results of the last drilling programs underline the fact that the two concession areas Niangouela and Bouboulou have great exploration potential. There are various projects in the region, such as the producing mines of Nordgold. The authorities in Burkina Faso are supportive to the mining industry.

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This promotional document (hereafter “the document”) was created to the best of knowledge and belief. It is for information purposes only by persons resident in Federal Republik of Germany, Switzerland and Austria.

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Neither by downloading the promotional document nor from the information contained in the document does a broking or investment advisory agreement with Ringler Consulting and Research GmbH come into being. Neither Ringler Consulting and Research GmbH nor the author are registered financial or investment advisors. Any investment decision should therefore take place after previous consultation with a professional investment advisor as well as personal research, for example, the information published by the company. All statements expressed in this promotional document should be construed to be forward-looking statements that involve substantial risks and could not be true. The positive performance of a financial product in the past can in no way be an indication of future performance. This promotional document, including all of its parts are protected by copyright. Any use outside of the narrow limits set by copyright law is not permitted without the consent of Ringler Consulting and Research GmbH. This is particularly true for copying, microfilming, translating and storing, distributing and processing in electronic systems.

Image sources and external data sources:

Nexus Gold, Central Intelligence Agency (C.I.A.), Google Finance, / Metals Focus ( )/ >> Author TJBlackwell

General note on possible conflicts of interests under (as of 15.05.2017)

Ringler Consulting and Research GmbH or employees of the Company may at any time conduct buy or sell transactions in the shares of the featured companies (i.e. long or short positions). This also applies to options and derivatives, based on these securities.

Those transactions may affect the respective company's stock price under certain circumstances. Published information on the "web pages", the newsletter or the Ringler Research Reports, recommendations, interviews and company presentations are paid by the respective company or third party (so-called "third parties"). The "third parties" include, for example, Investor Relations, Public Relations, Brokers and Investors. Ringler Consulting and Research GmbH may be partially or indirectly compensated by the bespoken companies or so-called "third parties" for the preparation and electronic distribution and for other services.

Even if we create each promotional documents to the best of knowledge and belief and professional standards, we advise you to involve further external sources, such as your local bank or a consultant you trust regarding your investment decisions.

Statement of additional information (as of 15.05.2017)

Disclosures on authorship and responsibilities:

Carsten Ringler, Managing Director of Ringler Consulting and Research GmbH

Additional information:

Issuer is Nexus Gold Corp. The company description was not made available to the issuer prior to distribution or publication.

At present there are no plans / there is no specific date on which an update of the company description will be published in the future.

Regulatory Authority:

This document is an promotional document. The information contained in this document does not constitute a financial analysis. This promotional document is neither subject to all legal requirements for guaranteeing the impartiality of of financial analysis nor a ban on trade before the publication of financial analysis.
Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) [German Federal Financial Supervisory Authority], Marie-Curie-Straße 24-28, 60439 Frankfurt


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