In response to favourable market conditions, Nexus Uranium Corp. (CSE: NEXU) has decided to create a publicly-listed gold subsidiary in Nevada. Nexus aims to let its joint venture partner take over operations at the site so the company can focus on its primary commodity.
The Saskatchewan and Utah-focused uranium miner announced plans to spin out its Independence precious metals project into a separate entity on Tuesday. This decision followed a thorough review of the asset’s potential in April. An initial public offering will be completed in the near future.
“With the continued strength of the gold price and improved sentiment for gold equities, we are moving forward with unlocking the unrecognized value for our Independence gold project,” chief executive Jeremy Poirier said in a press release.
The Independence site is wholly situated within a permitted plan of operations area for the Nevada Gold Mines Phoenix project.
Map: Nexus Uranium
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Management and operation handed to Americas Gold Exploration
Nexus has a 51 per cent stake in the Cortez trend gold-silver operation (Independence) while privately-held Americas Gold Exploration owns the remainder. It holds over 334,000 ounces of measured and indicated gold. The Cortez trend is known to host a series of other early-stage projects like the Keystone operation run by U.S.Gold Corp. (Nasdaq: USAU).
“This project represents one of a handful of low-cost, de-risked gold development opportunities in one of the premier gold mining jurisdictions in the world,” Poirier said in May.
The heap-leach mine will have a six-year lifespan once production starts at an unspecified date in the near future. Americas completed the site’s last drill program in 2018 and a preliminary economic assessment was later written up in 2022.
In addition to Independence, Nexus currently holds a gold-copper property in British Columbia near Kamloops. The company also has a series of gold claims in Yukon that have yielded grab samples with up to 144 g/t Au.
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