New analysis of the first phase of diamond core drilling at Pioneer Resources’ (ASX:PIO) Fairwater nickel project in Western Australia has further supported interpretations the area is highly mineralised with nickel sulphides.
The three latest holes each intersected ultramafic rocks where geochemical work has now established a compelling mineralisation vector that indicates increasing fertility towards the centre of a complex conduit sill-dyke system.
On the back of these highly encouraging results, a gravity survey is underway, to provide increased focus for the next phase of drilling.
The results from this program support previous aircore drilling, which intersected supergene nickel sulphide minerals, with results including grades of 0.61% nickel at 44-45 metres.
Sulphur and nickel content at Fairwater is observed to increase in ultramafic rocks towards the centre of the targeted aeromagnetic anomaly, and also with depth as the mafic-ultramafic unit apparently thickens.
The upcoming gravity survey is expected to locate zones of greater rock density, which might represent a feeder zone where nickel sulphide trap sites are likely to occur.
About Fairwater
Fairwater’s nickel targets are located in interpreted Proterozoic-aged rocks between 100 and 130 kilometres southwest of Independence Group’s (ASX:IGO) Nova and Bollinger nickel discoveries, in WA’s Albany-Fraser Orogen.
Fraser Range nickel sulphide deposits are classed as ‘mafic intrusive hosted’, a class of deposit that includes Voysey’s Bay in Canada and Radio Hill in WA amongst others. This style of deposit occurs within areas where tectonic events have resulted in zones of crustal thinning, often adjacent to major crustal sutures.
Fairwater soil geochemistry has generated a cluster of nickel anomalies within the mafic-ultramafic rock unit.
Analysis
The geochemical data from the first phase of diamond drilling provides a clear mineralisation vector, which sets the stage for more targeted exploration at Fairwater.
Follow-up work in this area will be based on improving nickel-enrichment and the presence of elevated copper, platinum, palladium and sulphur.
A new gravity survey already underway is expected to better define the system conduits where nickel sulphide mineralisation is most likely to have been deposited, further enhancing the prospectivity of upcoming drilling.
Potential price catalysts for Pioneer as Fairwater plans unfold include the continuation of more cost-effective reverse circulation drilling next year on the back of gravity survey results expected by the end of 2015.
Also, the company may benefit from progress in ongoing exploration activity at its Blair nickel mine near Kambalda and at its Acra gold project near Kalgoorlie, where a mixture of reverse circulation, diamond core and aircore drilling currently underway is expected to produce final results by early January.
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