Segue Resources Ltd (ASX:SEG) will commence an electromagnetic survey at the Plumridge Nickel project in the Fraser Range of Western Australia.
Joint venture partner MMG Limited (HKEx:1208, ASX:MMG), an international base metals company will carry out the work testing 10 target areas for potential massive nickel-copper sulphides.
An electromagnetic surveys sends electric charges through the ground testing the conductivity of different materials.
This follows on from a recently completed gravity survey.
Segue is one of the largest ASX-listed tenement holders in the Fraser Range, which hosts Australia's most significant recent nickel discovery, the Nova Project owned by Independence Group NL (ASX:IGO).
The electromagnetic survey is expected to be completed by mid-July 2016.
Plumridge Nickel JV
Segue entered into the Plumridge Nickel joint venture with MMG in 2015.
MMG is earning an initial stage one 51% interest in eight exploration licences at Plumridge by investing $6.5 million in exploration activity by December 2019.
MMG can increase its interest to 70% by investing an additional $7.5 million within two years of completing stage one.
Lithium portfolio expansion
Segue entered the lithium sector recently by acquiring the Gascoyne Lithium exploration tenements and entering the Mortimer Hills Lithium joint venture with Zeus Resources Ltd (ASX:ZEU).
Segue most recently applied for an additional 707 square kilometres of ground taking the total holding to over 1,100 square kilometres across six tenements.
This makes Segue the largest explorer in the Gascoyne region of Western Australia.
Rock chip sampling shows that source rocks within the Gascoyne project compare to world class North Pilbara lithium deposits such as Wodinga.
The tenements are highly prospective for tantalum‐lithium minerals and are adjacent to exploration licence applications held by Lithium Australia NL (ASX:LIT) and Venus Metals Corporation Ltd (ASX:VMC).
Segue intends to continue fieldwork in order to locate pegmatites for drill testing in early Q3 2016.
Analysis
While Segue is fast advancing its lithium portfolio, the joint venture with MMG leverages it to news flow and exploration success in the Fraser Range through minimum expenditure.
This electromagnetic survey that MMG will be conducting over the identified potential nickel-copper targets will be used to plan a potential drill program.
Electromagnetic technology has been used as an exploration technique to identify many sulphide conductors that have gone on to be drilled to identify world class deposits.
During April, Segue raised $250,000 through a placement and received a tax rebate of $337,000.
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