Key Highlights

  • The WTAC joint venture covers about 3,021 square kilometres, with Nex holding a 40% interest and WTAC funding all Capital and operating costs.
  • Eighteen tenements are pending grant and the East Scotia Acquisition had not completed at quarter end.
  • Laboratory recovery at Kookynie rose from 52% to 71% on one selected sample after a light grind and carbon-in-leach processing.
  • Cash was A$359,000 at 30 September, and the company estimated 21.32 quarters of funding including an undrawn A$750,000 standby arrangement.

Nex Metals Explorations (ASX:NME) is a Perth-based gold explorer that has changed how it plans to grow. Its September quarter report, released on 29 October 2026, centres on a joint venture with WTAC that has assembled a potential Western Australian portfolio of about 3,021 km², with WTAC providing the funding and Nex holding a 40% interest.

The key point for shareholders is that most of that ground is not yet held. Eighteen of the tenements are applications pending grant and the East Scotia acquisition had not completed at quarter end, so the headline area depends on approvals and a transaction that are still outstanding.

How the joint venture works

Under the announced terms, WTAC holds 60% of the joint venture and funds all of its capital and operating costs through an Unsecured Loan repayable from operations. Nex contributes project identification, technical work and operational management, and may charge a management fee if the joint venture board approves it. This spares Nex shareholders from funding the regional programme directly, but leaves Nex with a minority economic share.

The portfolio spans East Scotia, Scotia North, the Keith-Kilkenny Trend, Kookynie-Niagara and West Point. Work so far is early: target generation from regional data, and four rock samples from East Scotia sent to ALS for laboratory analysis, with results pending at quarter end. Pending applications confer no exploration rights until granted.

Kookynie tailings test work

Separately, Nex is advancing the Kookynie Tailings Project with WTAC under a profit-sharing arrangement. Two bulk samples returned head grades of 0.94 g/t and 0.96 g/t gold. On one selected sample, laboratory recovery rose from 52% with direct cyanidation to 71% after a light grind and carbon-in-leach processing. Scheelite, a tungsten mineral, reported to the gravity concentrate, which the company says could support a tungsten recovery stream.

These are laboratory results on limited samples, not a resource or processing decision; the company notes that scheelite recovery and economic viability have not been established. A General Purpose Lease application of about 100 hectares, roughly 10 km from the tailings, is the preferred candidate site for processing infrastructure, subject to approvals.

Cash and funding

According to the Appendix 5B for the quarter ended 30 September 2026, Nex held A$359,000 in cash, down from A$418,000. Net operating outflows were A$52,000 after a A$12,000 tax refund, and A$7,000 of borrowings were repaid. No exploration spending was recorded in the 5B, consistent with the joint venture model.

The 5B also lists an unused, unsecured, interest-free A$750,000 standby Credit arrangement from Allen's Business Group Pty Ltd with no set maturity. Including that facility, the company estimated 21.32 quarters of funding available.

Nex also holds about 70.8 million shares in Arika Resources, around 4.6% of that company as at 21 August 2026, giving it indirect exposure to Arika's nearby gold exploration.

Other interests and risks

Nex also continues to evaluate the North Henai block in Egypt's Eastern Desert, though no field work was done there in the quarter. Key risks include delays or refusals of tenement applications, dependence on WTAC's continued funding, the minority economic position in the joint venture, early-stage metallurgical work and overseas Jurisdiction Risk in Egypt.

Upcoming milestones

The Annual General Meeting is scheduled for 2pm AWST on Friday 13 November 2026 in Perth. Pending catalysts flagged by the company include ALS results for the East Scotia samples, completion of the East Scotia acquisition, grant decisions on the applications and further Kookynie grind optimisation.