NexMetals' Selkirk Mine: A High-Grade Catalyst for Copper-Nickel-PGM Growth?

Amid rising global tariffs and resource nationalism, companies with secure access to critical minerals are emerging as strategic plays for investors. NexMetals Mining Corp. (NEXM) has positioned itself at the forefront of this trend with its recent advances at the Selkirk Mine in Botswana, where reassay results and bold exploration plans underscore a compelling investment thesis. The company's discovery of 8.69% CuEq in high-grade sulfide intervals, coupled with its strategic use of advanced geophysical techniques, has created a rare combination of resource upside and technical execution in a sector starved for both.

The Reassay Revelation: A 8.69% CuEq Game-Changer

The heart of NexMetals' recent momentum lies in its reassay program of historical core samples from the Selkirk Mine. In drill hole DSLK083, a 0.52-meter subsection assayed at 7.77% Ni, 0.09% Cu, and elevated PGMs, resulting in an 8.69% CuEq—a figure that exceeds the current mineral resource estimate and suggests significant untapped potential. This discovery, part of a broader 3.95-meter interval averaging 5.59% CuEq, highlights the presence of discrete high-grade zones outside the mine's existing inferred resources (44.2 million tonnes at 0.30% Cu and 0.24% Ni).

The implications are profound. At prevailing long-term prices—$4.75/lb for copper and $10.50/lb for nickel—the economics of these zones could justify underground mining scenarios, unlocking value from sulfide-rich zones that were previously overlooked. Crucially, these results are externally validated by SLR Consulting's NI 43-101-compliant technical reports, reducing execution risk for investors.

Geophysical Precision: Mapping the Next Phase of Growth

NexMetals' exploration strategy is as technically rigorous as it is ambitious. The company is leveraging Borehole Electromagnetics (BHEM) surveys to map the extent of high-grade zones in existing metallurgical holes, a method proven at nearby Selebi Mines. Simultaneously, it plans to drill-test untouched VTEM anomalies—identified in a 2012 airborne survey but never explored—located south of the current resource. These anomalies, within Selkirk's existing mining license, could host satellite deposits that expand the project's scale.

The VTEM program is particularly intriguing. By targeting unexplored conductors adjacent to known mineralization, NexMetals reduces geological risk while maximizing leverage to discovery. The decision to prioritize these anomalies over greenfields exploration highlights management's focus on capital efficiency, a stark contrast to the industry's historical “spray-and-pray” approach.

Modernizing Metallurgy: From Legacy Data to Payable Grades

Beyond exploration, NexMetals is tackling Selkirk's legacy data gaps through systematic resampling and metallurgical innovation. Over 8,700 meters of historical core have been relogged, revealing higher PGM grades than previously recorded—a critical insight as palladium and platinum prices hit multi-year highs. The company is also advancing a two-concentrate flowsheet with XRT pre-concentration, aiming to boost recoveries to 60–70% for nickel and copper, respectively.

Perhaps most importantly, NexMetals is addressing cobalt—a potential by-product excluded from the current resource estimate due to inconsistent historical assays. If modern assays confirm cobalt payability, it could add material value to the resource base. CEO Morgan Lekstrom's emphasis on “unlocking Selkirk's full potential through modern tech” underscores a disciplined approach to upgrading the deposit's economics.

Investment Case: Riding the Copper-Nickel-PGM Cycle

The timing for NexMetals could not be better. Global demand for copper, nickel, and platinum-group metals (PGMs) is surging, driven by EV adoption, renewable energy infrastructure, and industrial decarbonization. Meanwhile, geopolitical risks—from China's rare earth dominance to Russia's PGM exports—are pushing buyers toward stable jurisdictions like Botswana.

NexMetals' Selkirk Mine sits in a politically stable, mining-friendly region with existing infrastructure, reducing permitting and operational risks. The stock's valuation—currently trading at $X/share—appears undemanding compared to peers, especially given its 100% exploration upside (the current MRE is inferred, not proven/reserve-grade).

Risks and Catalysts to Watch

• Assay Results Due July 2025: The upcoming results from the 12-hole drilling program, including the untested VTEM targets, are a critical near-term catalyst. Positive results could accelerate resource upgrades and valuations.
• Metallurgical Testing Outcomes: The success of XRT pre-concentration and cobalt recovery will determine the deposit's economic feasibility.
• Macroeconomic Volatility: A slowdown in EV demand or a sharp drop in PGM prices could delay project economics.

Conclusion: A High-Conviction Opportunity

NexMetals' Selkirk Mine represents a rare confluence of high-grade mineralization, advanced technical execution, and strategic positioning in a critical metals market. With its exploration budget focused on low-risk, high-reward targets and metallurgical innovation addressing legacy data gaps, the company is primed to capitalize on the current commodity cycle.

For investors seeking exposure to copper-nickel-PGM demand without the geopolitical risks of other jurisdictions, NexMetals offers a compelling risk-reward profile. The July assay results will be a key inflection point, but even in the base case, the stock's current valuation leaves room for multiple upside scenarios.

Recommendation: Consider a long position in NEXM ahead of the July results, with a target price of $Y/share based on a 100% resource expansion scenario. Monitor PGM price trends and geopolitical developments for additional catalysts.

Data as of July 7, 2025. Always conduct independent research before making investment decisions.