Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 44

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 44
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bi Mines and to further support the Company’s core thesis that these deposits are larger than previously
recognized.

The two company-owned underground U5 drills were converted into surface
A5 drills and commenced drilling the first two holes of the deep drilling program, with one drill testing large BHEM plates located down-plunge
and down-dip from the Selebi Main mine horizon and trending toward the Selebi North deposit, and the second drill testing BHEM plates
located 500 metres down-plunge and down-dip from the Selebi North deposit and trending toward Selebi Main. A large drill capable of drilling
to depths of 2,500 metres (NQ core) arrived on site in July and is currently extending one of these two holes to its final target depth.
To date, a total of 2,700 metres in 2 holes have been completed.

Further
information on assay results can be found in the Company’s news releases which are available on the Company’s website (https://nexmetalsmining.com/)
(the Company’s website is not incorporated in this Report). Assay results are publicly released as they are received and confirmed
by the Company.

Studies

The
historical BCL operations consisted of an integrated mining, concentrating and smelting complex which operated for over 40 years over
the Selebi Phikwe project area. The smelter processed Selebi and Phikwe concentrates and toll treated nickel concentrates received from
the Nkomati Nickel Mine and the Phoenix Mine. The concentrator plant and smelter were placed on care and maintenance in 2016 and are
located adjacent to the Selebi Mines at the historical Phikwe Mine.

NEXM
intends to use pre-concentration methods to separate the minerals from waste materials to produce a mill feed and flotation to produce
a concentrate for commercial sale, or for further refining, and does not plan to restart the existing concentrator or smelter.

Metallurgical
sampling and testing iterations from Selebi flotation studies are ongoing. On July 28, 2025, the Company reported initial results from
its bulk test work using XRT pre-concentration sorting at the Selebi Mines. The initial results demonstrated the potential to significantly reduce
the amount of waste rock being sent to the mill and enhance the head grade by over 15% from previous tests. By reducing the volume of
waste into the mill, the waste volume directed to grinding and flotation circuits is substantially reduced. This is expected to have
a positive