Pioneer Resources (ASX:PIO) has intersected ultramafic channel rocks that highlight potential for new nickel sulphide ore shoot discoveries to the east and south of the Blair Nickel Mine in the Northern Kambalda District of Western Australia.
Kambalda centred about 50 kilometres south of the Blair Mine, and is regarded as a world class mineral field for komatiite-hosted nickel sulphide deposits.
The basal ultramafic contact was intersected in five of the six holes drilled and four of the holes have been prepared for downhole EM surveys.
These will be completed in the next two week and will be integrated with assays from the drill hole samples to generate the next round of drilling targets.
Results of this work are expected to be available by the end of June 2015.
Blair Nickel Mine, which ceased production in 2008, is located 30 kilometres southeast of Kalgoorlie.
Work Completed
The recent six reverse circulation holes totalling 1,462 metres were drilled to test a range of targets including:
- The projected basal contact position, located beneath the Blair Mine waste dump. This target is the direct result of mapping and an aircore drilling program completed during early 2015;
- Two nickel gossans identified in mapping and sampling programs undertaken during late 2014 and early 2015; and
- A test of a SAMSON EM target along strike from the Area 57 mineralisation.
Drill hole GRRC005, designed to test an EM conductor adjacent to Area 57, intersected a thick sequence of ultramafic lithologies, and pXRF analyses (for field guidance only) indicated moderately anomalous nickel plus copper values at the depth of the anticipated conductor between 183 to 185 metres downhole.
The anomalous values are located close to an ultramafic rock and sedimentary rock contact, up plunge of the Area 57 mineralisation.
Drill holes GRRC006, GRRC007 and GRRC008, targeting the projected basal ultramafic contact below the Blair Mine waste dump, intersected moderate to high magnesium ultramafic lithologies, and the target basal ultramafic contact approximately 200 metres below surface, over a strike length of 300 metres.
The ultramafic geochemistry, based on pXRF readings, for GRRC008 currently provides the greatest encouragement.
Drill holes GRRC009 and GRRC010 at Blair East again intersected the basal contact position in both holes. The contact is interpreted to be dipping steeply towards the west.
Samples selected from all six holes have been submitted to a commercial laboratory for multi-element base metal, and platinum and palladium analysis.
Current laboratory turn-around for assays is around 4 weeks.
Kambalda Mineralisation
Kambalda nickel deposits typically occur in clusters, such that the location, structure and characteristics of each nickel deposit may be used as primary vectors for the discovery of new deposits.
This documented feature of nickel deposit-clustering provides the potential for further discovery at the Blair Mine.
To date the bulk of mineralisation has been identified on a single, albeit dislocated, basal contact surface.
Few other targets have been drilled even within 200 metres of the known Blair nickel ore shoots.
Blair Nickel Mine
The Blair Nickel Mine historically yielded around 30,000 tonnes of nickel metal and is part of the Golden Ridge Project.
While a remnant Resource of 222,710 tonnes at 2.92%, or 6,510 tonnes of contained nickel remains, Pioneer is looking to find new, shallow mineralisation near to the underground mine workings, which are still in good condition.
It seeks to delineate about 20,000 tonnes of nickel in ore and then move to mine studies.
There is also an existing offtake agreement with BHP Billiton (ASX:BHP).
Analysis
Pioneer Resources’ drilling continues to highlight the potential for new shallow mineralisation near the underground mine workings at its Blair Nickel Mine.
Further drilling will be carried out as the company seeks to delineate additional nickel resources and then move to mine studies.
This will benefit from the existing infrastructure, which is still in good condition, as well as an existing offtake agreement with BHP.
Pioneer had $2.6 million in cash and deposits at call as at 31st March 2015.
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