Nexcel Metals Appoints Drilling Contractor for 2026 Diamond Drilling at Burnt Hill Tungsten Project, New Brunswick

Completion of Competitive Contractor Selection Process

Nexcel Metals confirmed the conclusion of a competitive evaluation to select a drilling contractor for the Burnt Hill program. The chosen contractor demonstrated strong technical expertise, operational experience within Atlantic Canada, and a commitment to safe, efficient drilling practices—factors emphasized by CEO commentary. The company did not disclose the contractor's name or financial terms of the agreement.

This drilling services agreement follows the company’s prior announcement of receiving drill permits from the Province of New Brunswick. Together, these represent critical milestones advancing Burnt Hill toward active exploration and, eventually, a modern mineral resource estimate.

2026 Burnt Hill Diamond Drill Program: Scope and Goals

The 2026 drill program marks Burnt Hill’s first exploration campaign, targeting several geological objectives. Drilling aims to validate historical tungsten, molybdenum, and tin mineralization by twinning selected historic holes, confirm the continuity and geometry of known mineralized zones, and test extensions through strategically placed step-out drilling. The program also seeks to enhance geological confidence in areas with widely spaced historical drilling.

Additionally, the campaign integrates recently completed airborne time-domain electromagnetic (TDEM) and magnetic survey data with historical geological information to optimize drill targeting. Nexcel recently completed an airborne geophysical survey over the property and continues refining drill targets with geological consultants ahead of mobilisation. Generating modern exploration data to support future resource updates is a core objective.

Mobilisation Timeline and Land Access Status

Mobilisation is expected to begin mid-August 2026, with drilling to follow shortly, subject to executing a land access agreement not finalized at the announcement time. This agreement is a standard but essential prerequisite for field operations.

The company did not provide further details on the land access negotiations, landowners involved, or contingency plans if delays occur. Investors should view land access agreement execution as the next key operational milestone before fieldwork can start.

Historical Mineral Resource at Burnt Hill: Data Overview

The Burnt Hill deposit contains a historical mineral resource estimate prepared in 2013 by Southampton Associates Inc. for former owner Cadillac Ventures Inc. The estimate, effective July 15, 2013, reports an Indicated resource of 1.761 million tonnes grading 0.292% WO3, 0.007% MoS2, and 0.008% SnO2, alongside an Inferred resource of 1.520 million tonnes grading 0.263% WO3, 0.008% MoS2, and 0.005% SnO2. These figures cover both open-pit and underground scenarios at cut-off grades of 0.07% and 0.16% WO3, respectively.

The estimate is based on 59 diamond drill holes and 259 underground channel samples, using an inverse-distance-squared interpolation and a constant bulk density of 2.77 g/cmB3. Nexcel cautions that this Historical Estimate has not been independently verified by a qualified person and should not be relied upon as a current resource. Qualified person Francis R. Newton, P.Geo., has not classified it as a current resource, and confirmation through modern verification is not guaranteed.

Limitations of the Historical Estimate

The company provides extensive cautionary language per National Instrument 43-101 requirements. Verification of historical drill hole and channel sample data—including collar locations, downhole surveys, assay data, and QA/QC—remains incomplete. Reassessment of geological, structural, and wireframe models, re-estimation under current CIM Best Practices, and preparation of a new independent technical report are necessary before upgrading the Historical Estimate.

Moreover, the qualified person has not confirmed if the 2013 resource categories (Indicated and Inferred) conform to the CIM Definition Standards adopted in 2014. Investors are cautioned against undue reliance on the Historical Estimate. The upcoming 2026 diamond drill program is intended to initiate this verification process, marking the first step toward a modern NI 43-101 compliant resource estimate.

Burnt Hill’s Role in Canada’s Critical Minerals Sector

The Burnt Hill Tungsten Project spans approximately 8,604 hectares in central New Brunswick, located within one of Canada’s most historically significant tungsten camps. Beyond the historical resource, the property hosts multiple additional tungsten, molybdenum, and tin occurrences largely untested by modern exploration, representing significant upside potential.

Tungsten is classified as a critical mineral by Canada and allied governments due to its industrial, defense, and advanced manufacturing importance and concentrated global supply. Governments and industry increasingly prioritize secure domestic critical mineral supplies—a theme prominent in Canadian mineral policy. Nexcel aims to advance and grow its critical minerals portfolio through systematic exploration, strategic acquisitions, and development evaluations in stable mining jurisdictions.

Airborne Geophysical Survey Enhances Drill Targeting

A key technical aspect of Nexcel’s pre-drill preparation is the recently completed airborne TDEM and magnetic survey over Burnt Hill. The company continues integrating these geophysical results with historical data via geological consultants to refine drill targets before mobilisation.

This integration optimizes placement of up to 15 planned drill pads, reflecting best practices in mineral exploration where airborne geophysics identifies structural and lithological targets not evident from historical drilling. Specific geophysical anomalies or targets identified were not disclosed.

Nexcel’s Broader Asset Base: Lac Ducharme REE Option

While Burnt Hill remains Nexcel’s flagship project and focus, the company also holds an option to acquire 100% interest in the Lac Ducharme rare earth element (REE) project in Quebec. No operational or financial updates on Lac Ducharme were provided in this announcement.

REEs, like tungsten, are critical minerals gaining strategic attention in Canada. The Lac Ducharme option signals Nexcel’s positioning across multiple critical mineral segments, though Burnt Hill remains the operational priority based on current disclosures.

Qualified Person Review and Regulatory Compliance

Francis R. Newton, P.Geo., a consultant and Qualified Person under National Instrument 43-101, reviewed and approved the scientific and technical information in the announcement. This regulatory sign-off confirms professional review of the technical content.

The release contains forward-looking statements regarding mobilisation timelines, drilling commencement, and program objectives. The company cautions these involve assumptions and risks, advising readers not to place undue reliance. Nexcel does not intend to update forward-looking statements except as legally required.

Market Reaction and Share Price Context

No immediate share price impact was evident at the time of writing. Nexcel Metals trades on the Canadian Securities Exchange (NEXX), OTCQB (NXXCF), and Frankfurt Stock Exchange (2OH). The company did not announce financing, warrant exercises, or capital market transactions related to this news. Investors should consult their brokerage or exchanges for current pricing.

As a junior explorer advancing a critical minerals project, Nexcel’s share price may respond to exploration milestones such as land access agreement execution, mobilisation confirmation, drilling start, and assay results. None of these were confirmed in this announcement. Investors are advised to monitor upcoming SEDAR+ filings for updates during the 2026 field season.