Mithril Resources (ASX:MTH) should trade substantially higher after auger sampling at the Nanadie Well Project in Western Australia returned highly anomalous copper-nickel-PGE results at the Stark Prospect.
These included 0.42% copper, 0.28% nickel, with 1,240ppb PGE; 0.94% copper, 0.04% nickel, with 749ppb PGE, and 0.43% copper, 0.10% nickel, with 210ppb PGE.
The presence of consistently anomalous levels of copper, nickel and PGE’s within mafic rocktypes is considered indicative of a magmatic copper–nickel sulphide mineral system and as such the prospect is a high priority for immediate follow up.
The new results were obtained from geochemical sampling of buried weathered mafic bedrock under less than 2 metres of sand cover at the northern end of the Stark copper–nickel prospect.
The Stark mineralisation has now been identified over a strike length of 800 metres and remains open to the north where increased sand cover masks the true width and strike extent of the zone.
The prospect lies 1 kilometre east of the Nanadie Well Copper Deposit of 151,506 tonnes copper metal within 36.07Mt at 0.42% copper.
Notably, Stark has not been drilled or tested by geophysics.
Two holes previously drilled at the southern end of the prospect failed to reach target depth, and geophysical surveys completed by a previous explorer in 2012 stopped short of the mineralised horizon.
Significantly, the IP survey defined an anomaly 350 metres northwest of the northern most auger results and is interpreted to lie along strike from the Stark mineralised zone.
This IP anomaly has not been drill tested.
Mithril will shortly commence a ground electromagnetic geophysical survey over Stark to test for massive sulphide drill targets.
The Nanadie Well project is subject to a Farmin and Joint Venture Agreement with Intermin Resources (ASX:IRC) whereby Mithril can earn a 75% interest via expenditure of $4 million over 6 years, with a minimum expenditure of $250,000 required by 14 April 2015.
Mithril is well leveraged to exploration success, being capitalised at under $3 million.
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