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Nex Metals Exploration (ASX: NME) has this morning reported encouraging metallurgical test work from its Kookynie Tailings Project in Western Australia’s Eastern Goldfields, confirming gold grades of around one gram per tonne and identifying tungsten as a potential by-product opportunity.
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The results represent an important step in the company’s push to establish a capital-light gold recovery from historical tailings material. It also proves there’s the possibility of an additional revenue stream after finding tungsten.
Two 50kg bulk samples returned head grades of 0.94g/t and 0.96g/t gold, closely matching historical drilling results and providing confidence that the metallurgical testing is representative of the broader tailings.
The Oz company said test work has now defined a clear processing pathway. Screen fire assays returned average gold grades of 1.2 grams per tonne in selected samples, suggesting the presence of coarse-grained gold.
One of the more notable outcomes from the test work was the identification of scheelite, a tungsten-bearing mineral, within the gravity concentrate.
Assays returned a tungsten grade of 0.063% WO₃, with follow-up testing confirming scheelite reporting to the concentrate stream.
While still at an early stage, Nex management has today said the discovery could open the door to a parallel or sequential processing stream capable of producing both gold and tungsten from the same feed source.
The metallurgical program also delivered positive environmental results, with no substances identified at levels likely to negatively impact processing or create significant environmental concerns.
Nex’s managing director, Ken Allen, said the results validate historical drilling data and provide confidence in the company’s beneficiation strategy at Kookynie.
Sentiment is likely positive given the combination of confirmed gold grades, a defined processing route and the emergence of a valuable critmins by-product. Investors will now be watching for further metallurgical work and upcoming drilling aimed at advancing the project toward development.
For Nex, the results strengthen the case for a low-capital gold recovery operation while adding an unexpected tungsten angle to the investment story.
NME is currently trading at $0.18/sh.
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