Strategic Minerals PLC (LON:SML) has reported nickel sulphide intersections from a third hole at the Hanns Camp prospect in Western Australia.
Drilling is being undertaken currently by Central Australian Rare Earths (CARE), in which Strategic has a 25.5% interest with an option to increase this to 50%.
Two of the three holes drilled at the prospect have shown signs of nickel, Strategic Minerals said, with the type of rock structure overall similar to other big nickel finds in Australia.
The latest nickel sulphides were observed at approximately 125.5 metres downhole and in at a depth predicted by an electromagnetic survey.
The hole, HC003 is testing the Canning target, located in the centre of the Hanns Camp project, with Forrest to the North and Stirling to the South.
Alan Broome, chairman, said: "This second indication of the existence of nickel sulphide has significantly increased the prospectivity of the tenement for nickel.
The XRF [x-ray] analysis is encouraging. CARE is currently completing its drilling programme and, in conjunction with the downhole EM analysis, looks forward to honing in on the sulphide source.
However, a true understanding of the commercial potential of the area will not really be available until lab results from the drilling are received and analysis of the downhole EM data is completed.”