NexMetals Mining (TSXV, NASDAQ: NEXM) says its Selkirk copper-nickel-PGE project could now be a “significant contributor” to its Botswana-focused growth strategy after upgrading its resource by nearly 70%.
In the resource update on Wednesday, the Toronto-based miner said the project now holds approximately 1.1 billion lb. of copper equivalent (CuEq) in the indicated category, with 78.2 million grading 0.66% CuEq, following a significant conversion from the inferred category driven by successful re-assaying and twin drilling.
Following the conversion, there are still 15.1 million in inferred tonnes grading 0.60% CuEq, containing 200 million lb. of CuEq.
The total contained copper equivalent, according to NexMetals, represents a 63% increase to the project’s metal inventory compared to its last estimate in 2024, driven largely by better metallurgical recoveries and the inclusion of cobalt, silver and gold as payable metals.
Moreover, the company noted that metal price changes had “a minimal net impact” relative to the 2024 estimate, reflecting Selkirk’s diversified polymetallic metal mix.
Shares of NexMetals surged nearly 10% on the update, before erasing most of its gains amid continued weakness in metals and equities. The company’s market capitalization stands at C$114 million ($80 million).
Elevated project status
NexMetals views the upgrade as “an important technical milestone” for the Selkirk project that enhances its resource confidence and reduces development risk.
With the expanded resource, the company said the project has now “evolved into a strategically important, multi-commodity critical metals asset” with the scale and development potential. Previously, Selkirk was “assigned limited value as a secondary asset” within the portfolio, it added.
The project is located approximately 75 km northeast of the company’s flagship Selebi project, both hosting past-producing copper-cobalt-nickel mines that the company has been re-developing since 2019. Selkirk comprises a mining licence covering 14.6 sq. km, while Selebi covers a single mining licence of 115 sq. km.
“When we acquired the Selebi and Selkirk projects out of liquidation in 2022, we saw an opportunity to unlock value through modern exploration and disciplined technical work, and today’s resource update at Selkirk is a strong example of that strategy in action,” CEO Sean Whiteford said in a press release on Wednesday.
