Nex Metals Validates 1g/t Gold Grades at Kookynie Tailings, Uncovers Promising Tungsten Byproduct

Metallurgical Sampling Confirms Grade Consistency at Cosmopolitan Dumps

In April 2026, Nex Metals conducted targeted bulk sampling at the Kookynie Tailings Project, extracting two 50-kilogram samples from tailings dump 4 at the Cosmopolitan site. Samples were taken at previous drill hole collars CAC069 and CAC072 to directly correlate with historic drilling data. This approach ensured metallurgical samples accurately represented the tailings' grade profile, essential for predicting processing behaviour.

The samples returned head assay grades of 0.94 ppm and 0.96 ppm Au, closely matching average grades from an 81-hole aircore drilling programme completed in October 2017, which covered 497 metres across Cosmopolitan dumps. This alignment confirms the test samples reliably represent the tailings material, providing confidence in the metallurgical results as indicators of processing response.

Particle Size Distribution Highlights Dual Gold Concentration and Processing Strategies

Detailed particle size distribution (PSD) analysis on the metallurgical samples revealed that about 50% of the tailings mass is coarse enough for gravity processing. Coupled with gold assays by size fraction, results indicated a clear gold concentration split: finer fractions contain 68% of gold at 1.7 ppm Au, while coarser fractions hold 32% at 0.8 ppm Au. This suggests historical mining selectively recovered coarser gold, leaving significant fine gold unrecovered.

The findings support a combined gravity and cyanidation circuit as the optimal processing route to maximise gold recovery. Managing Director Ken Allen noted that identifying this processing pathway alongside a clean environmental profile marks a key step toward establishing Nex Metals’ beneficiation capability at Kookynie, advancing the project from exploration toward development potential.

Coarse-Grained Gold and Metallurgical Test Outcomes

A 75-micrometer screen assay on the metallurgical sample indicated the presence of coarse-grained gold, beneficial for gravity recovery methods. Overall metallurgical testing showed an average gold content of 1.2 ppm Au, exceeding original sample head grades due to concentration effects.

Expanded assays found no deleterious elements likely to affect processing or environmental safety. Arsenic was detected below 10 ppm, organic carbon under 0.1%, and iron ranged from 2-3%. All other toxic elements were below World Health Organization guideline levels, confirming a clean environmental profile suitable for conventional processing.

Scheelite Discovery Opens Tungsten Byproduct Potential at Kookynie

Significantly, scheelite, a tungsten-bearing mineral, was unexpectedly identified in the tailings. Head assays showed tungsten at 0.05% W (0.063% WO 3). Though not a primary focus, this discovery presents an additional economic opportunity under detailed investigation.

Historical records of the Cosmopolitan Gold Mine documented scheelite in the main vein system. Testing of Knelson concentrator concentrates under natural and UV light confirmed scheelite concentrates with coarse gold in gravity processing streams. This suggests potential for parallel or sequential recovery of gold and tungsten. Given tungsten’s critical mineral status, Nex Metals is assessing its impact on project economics alongside gold recovery, with further test work ongoing.

Project Background and Eastern Goldfields Context

The Kookynie Tailings Project targets reprocessing of historical mining tailings in the prolific Eastern Goldfields region of Western Australia. The Cosmopolitan Gold Mine tailings represent a secondary gold source amenable to modern extraction techniques unavailable during original operations. By focusing on these tailings, Nex Metals aims to recover gold and valuable minerals left behind by prior mining.

The Eastern Goldfields benefit from extensive mining infrastructure, skilled labour, and established regulatory frameworks. Kookynie’s location within this historic goldfield and the presence of scheelite reflect typical mineral assemblages. The company’s tailings reprocessing strategy leverages existing geological knowledge and infrastructure, potentially enabling production without extensive new exploration or mining development.

Environmental Assessment Supports Processing Feasibility

Comprehensive assays for deleterious and toxic elements revealed no substances likely to complicate processing or pose environmental risks. Low arsenic (<10 ppm), minimal organic carbon (<0.1%), and moderate iron (2-3%) levels indicate manageable processing conditions. All other elements were below WHO guideline limits, supporting a straightforward permitting pathway and conventional gravity-cyanidation processing without special environmental controls.

Advancing Test Work and Upcoming Drilling Programme

Nex Metals continues remaining metallurgical test phases and plans to integrate results into a forthcoming drilling programme. Managing Director Ken Allen highlighted that combining test work with drilling will refine understanding of tailings distribution, grade variability, and tungsten mineralisation extent across dumps.

This integrated approach will enable advanced resource estimation and economic evaluation, providing clearer insight into the Kookynie Tailings Project’s potential. Additional test work focused on tungsten recovery economics is anticipated as part of future efforts.

Managing Director’s Strategic Insights

Ken Allen emphasized the importance of metallurgical results confirming historical gold grades, establishing a reliable foundation for scaling processing operations. He underscored the significance of identifying a combined gravity-cyanidation pathway and a clean environmental profile toward developing onsite beneficiation.

Allen described the scheelite discovery as an exciting development, noting tungsten’s critical mineral status and ongoing investigations into its economic impact. The company is considering a staged development approach, initially optimising gold recovery and potentially incorporating tungsten processing if justified economically. This reflects management’s confidence in the project’s technical and economic prospects, pending further development and permitting.

Correction to Prior Disclosure and Compliance Assurance

The update corrects a previous announcement from 9 June 2026, clarifying that metallurgical samples originated solely from tailings dump 4 at Cosmopolitan, not dumps 4 and 5 as earlier misstated. This correction ensures precise sample location disclosure and maintains regulatory accuracy.

The company also reissued the June 2026 announcement content and attached JORC Table 1 and a competent persons statement per ASX Listing Rules 5.7 and 5.22. These documents provide full technical context and comply with industry standards for mineral exploration reporting, offering stakeholders transparent and auditable data supporting the metallurgical findings.