NME - NEX METALS EXPLORATION LIMITED
Investment Thesis
Historical tailings from the Cosmopolitan Gold Mine — a structurally-hosted orogenic/vein system. At ~1 g/t Au, grades sit at the bare threshold for open-pit viability and are low-end even for tailings reprocessing, where recoveries are typically 40–70% after previous processing losses. Scheelite at 0.063% WO₃ is sub-economic as a standalone target; co-recovery potential is speculative at this stage.
What No One Else Is Seeing
~1 g/t Au (bulk metallurgical samples, 50 kg each — not d...
Also: 0.063% WO₃ scheelite identified; finer fractions ~1.7 g/t Au, coarser ~0.8 g/t Au. Resource: No JORC resource defined — historical aircore drilling only (81 holes, 497m total, 2017)
Kookynie Tailings Project, Western Australia
Historical tailings from the Cosmopolitan Gold Mine — a structurally-hosted orogenic/vein system. At ~1 g/t Au, grades sit at the bare threshold for open-pit viability and are low-end even for tailings reprocessing, where recoveries are typically 40–70% after previous processing losses. Scheelite at 0.063% WO₃ is sub-economic as a standalone target; co-recovery potential is speculative at this stage.
Fair Value Assessment
No defined resource tonnage prevents reliable in-situ valuation — the company has not disclosed total tailings volume or contained ounces. Even assuming 500,000t at 1 g/t Au (~16,000 oz), at a grassroots/reprocessing multiple of A$30–50/oz, implied value is ~A$0.5–0.8M for gold alone, well below the A$6M market cap. Tungsten optionality is real but years from economic quantification.
Key Concerns
No JORC resource, no tonnage estimate, only two 50 kg samples (statistically thin), gravity+CIL flowsheet uncosted, Egypt project speculative, and market cap already prices in material upside that the data does not yet support.
Key Drill Intercepts
| Hole | From | Width | Grade | Comment |
|---|---|---|---|---|
| Best | - | - | ~1 g/t Au (bulk metallurgical samples | 0.063% WO₃ scheelite identified; finer fractions ~1.7 g/t Au, coarser ~0.8 g/t Au |
Valuation & Price Target
No defined resource tonnage prevents reliable in-situ valuation — the company has not disclosed total tailings volume or contained ounces. Even assuming 500,000t at 1 g/t Au (~16,000 oz), at a grassroots/reprocessing multiple of A$30–50/oz, implied value is ~A$0.5–0.8M for gold alone, well below the A$6M market cap. Tungsten optionality is real but years from economic quantification.
Key Risks
No JORC resource, no tonnage estimate, only two 50 kg samples (statistically thin), gravity+CIL flowsheet uncosted, Egypt project speculative, and market cap already prices in material upside that the data does not yet support.
Key Catalysts
| Date | Event |
|---|---|
| Near-term | Pending drill results / assays |
| Medium-term | Resource estimate update |
Confirmatory metallurgy on an underfined tailings pile with below-benchmark gold grades and a speculative tungsten footnote — the science is clean but the investment case is not there yet at A$6M.
This report is prepared by Clubroom Research for informational purposes only. It does not constitute financial advice or a recommendation to buy, sell, or hold any security. All opinions and estimates are subject to change without notice. Always do your own research and consult a licensed financial adviser before making investment decisions. Past performance is not indicative of future results.
AI-Generated Analysis - This report was produced using Clubroom Stocks' proprietary AI engine, built on our own curated databases, custom training pipelines, and specialist prompting frameworks developed exclusively for ASX resource sector analysis. This is not financial advice. Always do your own research before making investment decisions.
Mine Sites(1)
Rating History — 8 alerts
All returns measured from alert price as Day 0
Day 1 = 1 trading day after alert. Day 5 = 5 trading days. Day 20 = 20 trading days. Live = current price vs alert price. Each alert tracks independently — a re-rating starts fresh tracking from the new alert price.