8-K: NexMetals Uncovers High-Grade Copper-Nickel-Cobalt, Significantly Expanding Selebi North Mineralization

NexMetals Mining Corp. reports impressive assay results from its 2025 resource expansion drilling at Selebi North Underground, extending high-grade mineralization well beyond the current resource footprint.

Summary

• NexMetals Mining Corp. announced assay results from the first two 2025 resource expansion drill holes at Selebi North Underground (SNUG).
• Drill hole SNUG-25-184 intersected 13.50 metres of 3.68% CuEq (1.13% Cu, 1.24% Ni, 0.06% Co) in the South Limb, located 183 metres down plunge of the 2024 Mineral Resource Estimate (MRE).
• SNUG-25-184 also yielded 6.25 metres of 2.16% CuEq (0.62% Cu, 0.75% Ni, 0.04% Co) in the N2 Limb, 300 metres down plunge of the 2024 MRE.
• Drill hole SNUG-25-185 intersected 5.95 metres of 4.14% CuEq (2.87% Cu, 0.62% Ni, 0.03% Co) in the N2 Limb, 65 metres down dip of the 2024 MRE.
• A Borehole Electromagnetic (BHEM) survey completed in SNUG-25-184 identified strong off-hole conductors, confirming that the South Limb and N2 zones remain open down-plunge.
• Follow-up drill hole SNUG-25-186 intersected 16.20 metres of South Limb mineralization 132 metres down-plunge of SNUG-25-184.
• The South Limb mineralization has now been extended 315 metres down-plunge beyond the 2024 resource model, based on results from holes SNUG-25-184 and 186.
• New mineralization discovered in recently completed drill hole SNUG-25-189 includes 5.20 metres at South Limb and 15.50 metres at N2 Limb.
• A total of 37,113 metres in 85 holes are not yet included in the current MRE.
• Copper equivalent (CuEq) calculations were based on long-term prices of US$10.50/lb for Nickel and US$4.75/lb for Copper, with assumed recoveries of 72.0% for nickel and 92.4% for copper.

Sentiment

Score: 8

Explanation: The drill results are highly positive, indicating significant high-grade mineralization and substantial expansion potential. Management's comments are very optimistic, reinforcing confidence in the deposit's continuity at depth. The risks mentioned are standard for exploration and resource estimation, not indicative of specific negative operational issues.

Positives

• High-grade intercepts were reported, including 13.50 metres of 3.68% CuEq and 5.95 metres of 4.14% CuEq, demonstrating strong mineralization.
• Significant resource expansion was achieved, with South Limb mineralization extended 315 metres down-plunge beyond the 2024 resource model.
• Borehole Electromagnetic (BHEM) survey results and drill intercepts confirm that the South Limb and N2 zones remain open down-plunge and at depth, indicating further potential.
• The company's application of BHEM combined with a deep technical understanding of the deposit is enabling precise targeting of deeper mineralized zones.
• Existing resource grades of over 3% CuEq validate the potential of the mineralized system.

Risks

• Mineral resources, indicated mineral resources, and inferred mineral resources as defined under Canadian NI 43-101 may not be equivalent to reserve or resource estimates prepared under SEC S-K 1300.
• There is no assurance that any part or all of indicated mineral resources or inferred mineral resources will ever be converted into a higher category of mineral resources or into mineral reserves.
• Mineralization described using these terms carries a greater amount of uncertainty regarding its existence and feasibility compared to mineralization characterized as reserves.
• Investors are cautioned not to assume that any indicated mineral resources or inferred mineral resources on the company's projects are or will be economically or legally mineable.
• Inferred resources have a greater amount of uncertainty regarding their existence and whether they can be mined legally or economically.
• Estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies, except in limited circumstances permitted under NI 43-101.
• Capital and operating costs may vary significantly from current estimates.
• Metallurgical test results are preliminary and may not be indicative of final recovery rates.
• Exploration results may not accurately predict mineralization, prefeasibility, or the feasibility of mine production.
• There is a risk that the mineralized corridor may not continue at depth as anticipated.
• Assay results may not be as anticipated or may not be received within expected timeframes.
• The continuity and scale of the South Limb and N2 mineralized systems may not be as expected.
• Delays in obtaining or failures to obtain required governmental, environmental, or other project approvals could impact development.
• Uncertainties exist regarding the availability and costs of future financing.
• Changes in equity markets, inflation, and fluctuations in commodity prices could adversely affect operations and profitability.
• Delays in the development of projects are possible.
• Other inherent risks associated with the mineral exploration and development industry.

Future Outlook

The company anticipates ongoing drilling at Selebi North Underground (SNUG) and expects possible expanded mineralization beyond the existing Mineral Resource Estimate. Management believes the mineralized corridor continues at depth and expects the continuity and scale of the South Limb and N2 mineralized systems to persist. The company's future plans include the proposed advancement of the Selebi Mine and the implementation of further drilling, geoscience, and metallurgical work on its properties.

Management Comments

• "The results from drill holes 184 and 185 continue to demonstrate the impressive step-out success and the broader scale of mineralization beyond the boundaries of the current resource."
• "Drilling has further extended the deposit intercepting mineralization roughly 315 metres down-plunge, well past its modeled limits."
• "Given our existing resource grades of over 3% CuEq, this result further validates the potential of this system."
• "Our application of BHEM, combined with a deep technical understanding of the deposit, is allowing us to target these deeper zones with incredible precision."
• "The system remains open, and the BHEM results combined with these first assays reinforces our confidence that this mineralized corridor continues at depth."

Industry Context

This announcement highlights continued exploration success in the base metals sector, particularly for copper, nickel, and cobalt, which are critical minerals for the global energy transition and electric vehicle industries. The effective use of advanced geophysical techniques like Borehole Electromagnetic (BHEM) surveys for targeting deeper mineralization is a common and effective strategy in modern mining exploration. The company's focus on redeveloping previously producing mines aligns with a broader industry trend of optimizing existing infrastructure and known deposits to bring them back into production.

Comparison to Industry Standards

• The reported CuEq grades of 3.68% and 4.14% are considered high-grade for bulk tonnage base metal deposits, significantly exceeding typical global averages for copper and nickel mines, which often operate on much lower grades (e.g., open-pit copper mines can be below 0.5% Cu, and nickel sulphide mines typically range from 0.5% to 2% Ni).
• The significant step-out success, extending mineralization 315 metres down-plunge, demonstrates strong exploration potential, comparable to successful brownfield exploration programs at established mining camps globally.
• The application of Borehole Electromagnetic (BHEM) surveys for targeting off-hole conductors is a standard and effective industry practice for identifying massive sulphide mineralization, similar to techniques employed by major mining companies in their exploration efforts.
• The company's compliance with both Canadian National Instrument 43-101 (NI 43-101) and alignment with SEC S-K 1300 standards reflects adherence to robust international disclosure practices for mineral projects, ensuring transparency and comparability with global benchmarks.

Stakeholder Impact

• Shareholders: Likely positive impact due to significant high-grade drill results and resource expansion potential, which could lead to increased asset value and future production prospects.
• Employees: Potential for continued employment and growth opportunities as exploration and development activities progress.
• Local Communities (Botswana): Potential for future economic benefits through mine development, job creation, and local procurement.
• Creditors: Improved confidence in the company's asset base and future cash flow potential, potentially enhancing creditworthiness.

Next Steps

• Assays for additional drill holes are pending.
• Follow-up drilling is underway with drill hole SNUG-25-190 targeting the strike extent at a distance of 115 metres from SNUG-25-184.
• Further evaluation of the continuity and scale of both the South Limb and N2 mineralized systems is planned.
• Additional drilling is required to properly determine the true width of mineralization on each limb and to define the folded mineralization.
• The proposed advancement of the Selebi Mine is a key future objective.
• Implementation of drilling, geoscience, and metallurgical work plans on the company's properties.

Key Dates

Recommendation

Keywords

Copper, Nickel, Cobalt, Mineral Exploration, Mining, Selebi North, Botswana, Drill Results, Mineral Resource Estimate, NI 43-101, S-K 1300, Base Metals, Resource Expansion, Geophysics, Borehole Electromagnetic Survey