Gold prices have edged higher in trading today as investors have brushed aside concerns about a rate hike from the Federal Reserve. Economic data released on Wednesday indicated that the U.S. economy continues to recover. The data also further strengthened the case for a rate hike.
However, investors are bullish about anticipated demand from India, which enters its festival season starting this weekend. Remember that physical demand for gold has been subdued this year. The pullback though should further boost demand.
Physical demand is also likely to continue to provide support to gold prices. Therefore, the outlook for gold mining companies remains robust. Remember that many of them cut costs significantly during the gold price downturn in 2014 and 2015.
Nexus Gold Corp. (TSX-Venture:NXS) is a Vancouver-based mineral resource company that develops precious metal mineral assets in the world’s premier mining districts.
The Company is currently concentrating its efforts on the Bouboulou Gold Concession, an advanced exploration project located in Burkina Faso, West Africa and the Walker Ridge Gold Project, a drill-ready, multiple-target, Carlin-type gold project located in the Independence/Jerritt Canyon Gold Trend, Nevada.
This morning, Nexus Gold announced that it has completed its compilation of historic exploration data on the Bouboulou Gold Concession, Burkina Faso, West Africa. The compilation infills gaps in the exploration data that the Company had originally reviewed and displays three strong coincidental geochemical and geophysical anomalous gold trends.
These new trends extend from the four drill-identified mineralized zones, namely Rawema, Peletanga, Bouboulou 2 and Koala.
Each of the three trends extends in length for 5,000 metres (5 km). They are identified by numerous orpaillages and geochemical samples of greater than one gram per tonne gold.
From north to south the three trends are termed the PR, KB and B2. The northern most PR trend includes the Pelatanga and Rawema drill-identified mineralized zones and trends north east. This trend extends off the property onto the adjacent Bouda property and the mining operations conducted there.
The data will be utilized in assisting the upcoming phase one drill program and determining suitable step-out drill locations for potential conformation drilling at a later date.
The Bouboulou Gold concession is a near-surface, advanced stage gold exploration target located in a known gold belt, within a prolific and highly active area. The property has previously been drilled by Roxgold Inc, Riverstone Resources and Boliden. To date four zones of gold mineralization have been identified on the property.
Shares of NXS have been in an uptrend since late-July but are down 10% in early afternoon trading at $0.09 on volume of 196,000.
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