Mining Company Uncovers Excellent Copper Intercepts in Botswana

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NexMetals Mining Corp. (NEXM:TSX.V; NEXM; NASDAQ) released assay results on August 21 from its ongoing drilling program at the Selebi North Underground (SNUG) deposit in Botswana. The company reported that drill hole SNUG-25-189 intersected significant copper and nickel mineralization, extending known zones at depth. Results included 19.40 meters of 3.93% copper equivalent (CuEq), with a higher-grade interval of 13.55 meters grading 4.02% CuEq. A separate interval from the South Limb returned 4.90 meters of 4.39% CuEq. Copper equivalent is a calculation that expresses the value of multiple metals in terms of copper content, allowing for comparison of grades across polymetallic deposits.

Morgan Lekstrom, Chief Executive Officer of NexMetals, stated in the release: "Drilling continues to highlight consistent high-grade copper, nickel, and cobalt mineralization extending past the limits of the 2024 resource, reinforcing the potential for further expansion. These next holes, including drill hole 189, are designed to evaluate the lateral extent of this mineralization and tie the datasets together, with the goal of increasing both the size and confidence of the deposit."

The company confirmed that additional assays remain pending from drill holes SNUG-25-191 and SNUG-25-192, with drilling continuing to evaluate the strike length of mineralization.

Separately, on August 20, 2025, NexMetals reported results from borehole electromagnetic (BHEM) surveys at the Selkirk Mine, also in Botswana. The program covered 3,903 meters across 12 drill holes, with 14 of 15 surveyed holes returning anomalies correlated with massive or semi-massive sulphides, which host copper-nickel-cobalt-platinum group element mineralization. The company noted that the consistency of the BHEM responses demonstrated the effectiveness of the method in guiding exploration.

Lekstrom commented in that press release: "Our accelerated drill program is delivering results on multiple fronts. The consistent BHEM responses tied directly to sulphide mineralization confirm we have a high confidence targeting technology that has already been successfully demonstrated at Selebi. Additionally, the early success of drilling VTEM anomalies opens new discovery opportunities."

Pressure Points in Critical Metals

According to an August 20 report from John Zadeh on Discovery Alert, copper product prices in the United States rose despite refined copper being exempted from recent tariffs. Southwire Co. LLC and Cerro Wire LLC announced a 5% increase in copper wire products, even as refined copper traded at about US$4.43 per pound. The producer price index for copper wire and cable reached a record high in July, climbing 12% compared with the prior year.

Aisling Hubert, senior wire and cable analyst at CRU Group, explained, "While wire and cable prices are influenced by copper prices, they are not the same. The margin between the two can widen if local producers have more pricing power."

Zadeh also reported on August 22 that scrap copper traders had begun rerouting shipments to avoid China's 10% tariff on US imports. With the United States consuming only about 40% of its scrap output, the surplus had traditionally flowed to China, which produces half of the world's refined copper. Direct US shipments fell from 39,373 metric tons in January to fewer than 600 tons in July, the lowest monthly total since 2004. Despite this decline, China's overall imports stayed steady at about 190,000 tons, supported by rising shipments from Thailand, Japan, and Canada.

Traders confirmed that rerouting added costs but remained preferable to absorbing the tariff. Xiaoyu Zhu of StoneX Financial Inc. said, "The 10% tariff has put the scrap companies at a disadvantage in terms of pricing, not to mention the financing pressure from high interest rates." Fastmarkets data showed No. 2 copper at its steepest discount to futures since 2015, while Bloomberg Intelligence's Grant Sporre noted that supply disruptions had made scrap "more valuable." At the same time, Emmanouil Xidias of Ifchor North America LLC warned that altering shipment origins constituted fraud, highlighting the compliance risks surrounding these strategies.

SMM wrote on August 22 that nickel prices weakened due to macroeconomic pressure from a stronger U.S. dollar and a cautious market environment. The most-traded SHFE nickel 2510 contract closed at 119,610 yuan per metric ton, reflecting a weekly decline of 0.99%. London Metal Exchange nickel also fell, quoted at US$14,940 per metric ton, down 1.74% week over week. Despite the price declines, traders showed reluctance to lower premiums, and downstream procurement activity increased in response to the softer futures prices.

Also on August 22, in a separate Discovery Alert report, John Zadeh reported that the U.S. military authorized its first cobalt stockpile purchase since 1990, committing up to US$500 million over five years to secure approximately 7,500 tons.

The Pentagon described cobalt as essential for national defense, with applications in superalloys, precision-guided munitions, and radar systems. Zadeh noted that prices for cobalt had already risen 42% year-to-date, driven by supply constraints and higher demand. He added that the Defense Logistics Agency restricted suppliers to a short list that included Vale of Canada, Sumitomo Metal Mining of Japan, and Glencore's Nikkelverk plant in Norway.

Third-Party Expert Analysis

Analyst John Newell published an analysis on July 1 that described NexMetals Mining Corp. as "quietly drilling into one of Botswana's past-producing copper-nickel mines, and the story is picking up speed." The report noted that the Selkirk Mine already had a defined copper-nickel-PGE footprint and stated that the company had "completed 2,050 meters of new drilling with assays expected shortly."

The commentary emphasized that NexMetals was running a parallel program of resampling historical drill holes and conducting metallurgical tests to establish recovery parameters. According to the report, "all this work is feeding into an updated mineral resource estimate, as the company positions Selkirk for a potential copper-Ni-PGE revival at a time when global supply remains tight."

The analysis concluded with a forward-looking assessment of the company's trajectory, stating: "It's early days, but with the fundamentals behind copper and the right rocks in the right address, this is a name to keep an eye on."

Project Catalysts

According to NexMetals' August 2025 investor presentation, both the Selebi and Selkirk projects are advancing with resource expansion and metallurgical studies. At Selebi, the company is testing a two-kilometer area known as the hinge zone between Selebi North and Selebi Main, where borehole electromagnetic targets suggest the potential for additional mineralization. Assay highlights from recent campaigns include intercepts exceeding 4% CuEq over intervals greater than 10 meters.

At Selkirk, drilling is underway to expand the existing inferred resource of 44.2 million tonnes at 0.81% CuEq. The program also supports metallurgical flowsheet development and X-ray transmission ore sorting studies, aimed at improving efficiency in processing. The company has initiated a resampling program of historical drill core, which may allow for the conversion of historical resources into measured and indicated categories at relatively low cost.

NexMetals emphasized in its presentation that both projects benefit from existing infrastructure, including power, water, and rail access, as well as valid mining licenses. Botswana remains a stable jurisdiction with mining regulations aligned to Canadian standards, providing a favorable backdrop for project development.

Ownership and Share Structure

According to the company, management, insiders, and select shareholders own 22%, EdgePoint Investment Group owns 22%, a private placement led by Fiore accounts for 36%, and other institutions and retail own about 20%.

Its market cap is CA$204.86 million with 428.99 million shares outstanding. It trades in a 52-week range of CA$0.32 and CA$1.03.