Mineral exploration company, Great Southern Mining has commenced a moving loop electromagnetic, or “MLEM” survey that is looking to generate magmatic nickel sulphide drill targets across some 70 square kilometres of ground at its East Laverton nickel project in Western Australia. The company believes the tenure to be prospective for hosting large nickel sulphide deposits geologically akin to several recent discoveries in WA, including the celebrated Nova-Bollinger discovery in the Fraser Range.
The company says the survey is sufficient to reveal target conductors to 400 metres depth over an area covering 400m by 400m. Great Southern plans to modify the survey to closer spaced intervals in any areas deemed to be priority to pin-point its drill targets.
The survey is targeting the 110 square kilometre ‘Diorite Hill Layered Ultramafic Magmatic’ intrusion located within the tenure. Great Southern believes the structure shows potential to host magmatic type nickel sulphide deposits – a style of mineralisation seemingly in vogue following Sirius Resources’ revered Nova-Bollinger discovery nearly a decade ago.
According to the company, exploration for nickel sulphides in Western Australia has historically targeted Komatiitic style mineralisation such as BHP’s Mt Keith nickel mine and Mincor Resources’ Kambalda operations. The Nova-Bollinger discovery turned over a new leaf on the state’s potential for hosting significant nickel sulphide deposits within magmatic rocks.
Sirius’ discovery saw its share price soar from around $0.05 to a peak of $5 in a matter of months, cumulating in a $1.8 billion takeover by mining heavyweight, Independence Group in 2015.
A 13 million tonne resource going 2 per cent nickel, 0.8 per cent copper and 0.1 per cent cobalt has been delineated at the now producing mine.
Great Southern believes layered ultramafic intrusions in the Yilgarn Craton, hosting the East Laverton project, are also prospective for nickel sulphide mineralisation.
Great Southern Mining Chief Executive Officer, Sean Gregory said: “East Laverton is highly prospective for nickel-sulphide discoveries, including of the Nova magmatic style which was overlooked by previous explorers who were focused on other commodities and deposit types. We look forward to the results of this ground MLEM survey which will be the first modern EM over this target”
Other recent magmatic style nickel sulphide discoveries in Western Australia include Legend Mining’s Rockford project in the Fraser Range and Chalice Mining’s spectacular Gonneville discovery some 70 km north-east of Perth.
The Gonneville discovery hole last year returned 19m at 2.6 per cent nickel, 1 per cent copper, 8.4 grams per tonne palladium and 1.1 g/t platinum. It sent Chalice’s share price soaring from under 20c prior the discovery to as high as $9.34 this year. Chalice says another 24km of strike is yet to be drilled at its project.
Great Southern anticipates the MLEM survey at East Laverton to be completed within four weeks. Interpretation of the survey data to define drill targets is set to follow.
With nickel trading at close to decade long highs at nearly US$20,000 per tonne, Great Southern’s timing is good and any success with the drill bit will see it tap into the rich vein of sentiment hanging around the market right now with respect to nickel.
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