NexMetals' Selebi North Expansion: Technical Precision and Resource Scale Ignite Critical Metals Potential

NexMetals Mining Corp. (TSXV:NEXM) is rapidly transforming its Selebi North deposit in Botswana into a cornerstone of global critical metals supply, leveraging cutting-edge exploration techniques to unlock high-grade copper-nickel-cobalt potential. With a 315-meter down-plunge mineralization extension, borehole electromagnetic (BHEM) targeting prowess, and consistent copper equivalent (CuEq) grades exceeding 3%, the project is primed for a resource upgrade that could redefine its value. Investors should take note: the combination of technical execution and cobalt byproduct upside positions this stock for a revaluation ahead of upcoming assays and metallurgical results.

The 315-Meter Down-Plunge Breakthrough: Scaling the Deposit

NexMetals' recent drilling has extended Selebi North's South Limb mineralization 315 meters down-plunge, a critical step toward connecting the deposit to the larger Selebi Main system. Drill holes SNUG-25-184 and SNUG-25-186 intercepted massive sulphide zones grading 3.68% CuEq over 13.5 meters at 183 meters below the 2024 resource boundary. This expansion not only increases the deposit's strike length but also demonstrates continuity of high-grade zones, reducing dilution risks and enhancing confidence in a substantial resource upgrade.

The down-plunge extension, combined with parallel drilling 500 meters toward Selebi Main, is designed to close the 2-kilometer gap between the two deposits. If successful, this could create a single, large-scale copper-nickel-cobalt system—a rare asset in a world hungry for EV battery metals.

BHEM Technology: Precision-Driven Exploration

Central to NexMetals' success is its use of Borehole Electromagnetic (BHEM) surveys, which identify conductive zones indicative of sulphide mineralization. The Crone PEM system, employed in Selebi North, has pinpointed anomalies that guided drill targeting with remarkable accuracy. For instance, BHEM data led to the discovery of a 16.20-meter intercept in SNUG-25-186, confirming the South Limb's extension.

This method reduces exploration risk by focusing drilling on high-potential zones. With two drill rigs active and a 12,500-meter program underway, NexMetals is systematically validating legacy data and expanding the resource envelope.

Copper Equivalent Grades >3%: High-Value Intercepts

The Selebi North deposit's CuEq grades consistently exceed 3%, a standout figure in the industry. For example:
- SNUG-25-184 returned 4.81% CuEq over 3.15 meters (including cobalt at 0.09%).
- SNUG-25-185 hit 5.21% CuEq over 4.60 meters in the N2 Limb.

These grades align with Tier 1 assets like those in the Canadian Shield, but with the added benefit of cobalt byproduct credits. While cobalt is currently excluded from the resource estimate due to inconsistent historical data, assays confirm its presence at 0.03–0.09%—a key differentiator.

Cobalt Byproduct: A Strategic Value Lever

Cobalt's inclusion in the CuEq formula (using a $75/lb assumption) remains conservative compared to its $15–$20/lb spot price. As NexMetals refines its metallurgical testing, cobalt recovery could add significant NPV to the project. With global cobalt demand projected to grow 20x by 2050 for EV batteries, this byproduct alone could justify a premium valuation.

Why Act Now? Catalysts Ahead

• July 2025 Assays: Results from 85 holes (37,113 meters) will validate the down-plunge continuity and cobalt grades. Positive data could trigger a rerating.
• Metallurgical Results (Q4 2025): Performed on 2025 core samples, these will refine recovery rates and flowsheet design, critical for economic modeling.
• Resource Update (H1 2026): Integrating new drilling and cobalt data could boost inferred resources beyond the current 5.8 million tons estimate.

Risks to Consider

• Commodity Volatility: Copper and nickel prices remain tied to macroeconomic cycles, though long-term demand fundamentals are robust.
• Assay Variability: While current results are strong, grade consistency must be confirmed over larger intervals.
• Regulatory Hurdles: Though Botswana's mining-friendly policies reduce risk, permitting delays could impact timelines.

Investment Thesis: Buy Before the Revaluation

NexMetals trades at a CA$205 million market cap, undervalued relative to its critical metals potential. With 22% institutional ownership and a 52-week high of CA$1.03, the stock offers asymmetric upside ahead of catalysts. Key buying points:
- Technicals: The stock's 12-month underperformance vs. peers (see visual above) suggests it's due for a rebound.
- Catalyst Timing: Act before July assay results to capture early momentum.

Final Call: A Critical Metals Play with Catalyst-Driven Upside

NexMetals' Selebi North deposit is a textbook example of value accretion through technical execution. The 315m down-plunge extension, BHEM-driven precision, and cobalt-rich grades position the project for a resource upgrade that could unlock multi-year value. With EV battery demand soaring and Botswana offering stable, low-cost mining, this is a rare opportunity to invest in a next-gen critical metals asset before near-term catalysts strike.

Action: Accumulate NexMetals shares ahead of July's assay results. The combination of high-grade intercepts, cobalt's strategic value, and execution excellence makes this a compelling buy at current levels.