Nexmetals' Selebi met work shows smelter not required

Executive Summary

• Nexmetals announced a metallurgical breakthrough at the Selebi mines, demonstrating the ability to produce separate high‑grade copper concentrate (27.6 % Cu) and nickel‑cobalt concentrate (10.5 % Ni, 0.59 % Co).
• Recoveries achieved in bulk‑sample testing were 87.0 % for copper, 55.9 % for nickel and 64.7 % for cobalt, potentially eliminating the need for an on‑site smelter or hydrometallurgical plant and reducing capital intensity.
• The results open new low‑capital, lower‑risk restart scenarios, broaden offtake options, and will be incorporated into an updated mineral resource estimate.

Key Details

• Metallurgical Test Program: Conducted by Blue Coast Research (Parksville, B.C.) on bulk samples from Selebi North and Selebi Main; primary grind 75 µm (P80), regrind 35 µm (P80), sequential flotation with simple chemistry.
• Copper Concentrate: 87.0 % Cu recovery; grade 27.6 % Cu.
• Nickel‑Cobalt Concentrate: 55.9 % Ni recovery and 64.7 % Co recovery; grades 10.5 % Ni, 0.59 % Co.
• Losses in Locked Cycle Test: 2.5 % of nickel reported to copper concentrate (non‑payable), 24 % lost to copper rougher tailings, 17.6 % lost to nickel cleaner tailings; losses attributed to fine pentlandite locked in pyrrhotite.
• Implications: Potential to forgo on‑site smelter/hydrometallurgical plant, lowering capital spend and execution risk; smaller land footprint, lower energy demand, reduced environmental impact.
• Next Steps:
• Complete mineralogical studies on copper rougher and nickel cleaner tailings.
• Assess finer regrind options to improve nickel liberation.
• Conduct batch tests on Selebi Main and Selebi North material individually.
• Optimize flow sheet and mining sequence for higher overall recoveries.
• Perform concentrate quality assessment; assay results expected in coming weeks.
• CEO Comment (Morgan Lekstrom): Emphasized the transformational nature of the breakthrough, its potential to reduce capex, broaden offtake opportunities, and improve the upcoming mineral resource estimate.
• Qualified Persons: Norman Lotter, PEng, PrEng, CEng, FSAIMM, FIMM; Sharon Taylor, VP Exploration – both qualified under NI 43‑101 and Reg S‑K.
• Technical Report Reference: “Technical Report, Selebi Mines, Central District, Republic of Botswana,” dated Sept. 20 2024 (effective June 30 2024), prepared by SLR Consulting (Canada) Ltd., filed on SEDAR+ and EDGAR.

Notable Quotes

“This is the largest transformational step forward for the Selebi mines that could materially change this asset… we now have the optionality to generate two separate saleable copper and nickel‑cobalt concentrates, which may reduce or remove the need for capex to build a smelter/hydrometallurgy plant.” – Morgan Lekstrom, CEO.