Nex Metals has formalised a 60-40 joint venture with WTAC, securing full funding for WA gold exploration. Metallurgical progress at Kookynie reveals tungsten potential, while Egyptian exploration moves toward drilling.
- WTAC funds 100% of JV via unsecured loan
- Kookynie tailings test work identifies gold and tungsten recovery paths
- West Point Gold-Copper Project acquired as first JV target
- North Henai Egypt project advances with planned sampling and drilling
- Arika JV divestment strengthens balance sheet with $0.5 million cash
WTAC Joint Venture Sets Stage for Funded WA Gold Exploration
Nex Metals Explorations Ltd (ASX:NME) has cemented a strategic partnership with the Wangkatja Tjungula Aboriginal Corporation (WTAC), forming a joint venture that sees WTAC take a 60% stake and provide 100% of funding as an unsecured loan repayable from operations. Nex Metals retains 40%, leading project identification and operational management, while earning a management fee and a share of distributable net proceeds.
This JV structure allows Nex Metals to deploy its technical and operational expertise across a broader portfolio without diluting shareholders, while WTAC’s funding and local knowledge underpin long-term growth prospects. The appointment of experienced geologist Jason Livingstone to lead JV operations signals a professional approach to advancing exploration targets.
West Point Gold-Copper Project Emerges as Maiden JV Acquisition
Despite the historical data predating current JORC standards and requiring verification, the project offers walk-up drill targets and significant upside potential along strike and at depth. The JV aims to build a comprehensive geological database, integrating legacy data with new geophysical and geological mapping to validate and extend mineralisation.
Kookynie Tailings Project Advances with Dual Gold and Tungsten Potential
Meanwhile, metallurgical test work at Nex Metals’ Kookynie Gold Tailings Project has revealed a clear processing pathway combining gravity concentration and cyanidation to maximise gold recovery. Notably, the discovery of scheelite, a tungsten-bearing mineral, in the gravity concentrate introduces a potential secondary revenue stream, pending further assessment of extractability and economic viability.
The tailings show a clean environmental profile with no deleterious substances above WHO guidelines, supporting downstream processing. Particle size analysis indicates about half the tailings are suitable for gravity processing, with coarse gold amenable to recovery. This progress moves the project closer to pilot-scale process design and potential production.
North Henai Gold Project in Egypt Poised for Systematic Exploration
Nex Metals continues to develop its foothold in Egypt’s Eastern Desert through the North Henai Gold Project. Geological reconnaissance has confirmed extensive quartz veining and alteration over a 5-kilometre strike length, with artisanal workings observed across multiple zones, including the “Cave” prospect.
Approvals are being sought for shallow diamond drilling expected to be less than 50 metres deep, with systematic sampling and assay programs planned within 90 days. The project’s wide alteration zones and veining suggest potential for modern mining techniques, though assay results will be critical to validate the preliminary geological observations.
Arika Joint Venture Divestment Improves Financial Position
In a move to strengthen its balance sheet, Nex Metals completed the divestment of its interest in the Arika Joint Venture, receiving $0.5 million in net cash and retaining a significant shareholding in Arika Resources. This transaction settles all outstanding joint venture funding obligations without issuing new shares, freeing capital to focus on advancing the Kookynie Tailings Project and Egyptian exploration.
Financially, Nex Metals reported a net cash outflow from operations of A$205,000 for the quarter, offset by investing inflows of A$500,000 from the divestment, ending the period with A$418,000 in cash and an unsecured credit facility of A$750,000.
Bottom Line?
Nex Metals’ JV with WTAC unlocks funded exploration in WA, while metallurgical advances and Egyptian groundwork set the stage for diversified growth, execution and assay results will be key to watch.
Questions in the middle?
- Will metallurgical test work confirm economic viability of tungsten recovery from Kookynie tailings?
- How soon will the North Henai sampling and drilling programs yield actionable results?
- What additional projects will the NME-WTAC JV acquire to build a robust WA gold portfolio?