Archer Exploration Ltd (ASX:AXE) has revealed the results of an independent review of its 100% owned Albion Downs Nickel Project in Western Australia.
The project is along strike from BHP Group’s (LON:BHP) Mt Keith nickel mine and MPI Mines’ Jericho nickel project.
Location of E53/1926 and adjoining tenements held by BHP (orange boundary) and MPI Mines (purple boundary).
Since the grant of the tenement, Archer has been methodically reviewing historical information relating to the tenement.
As part of this work, the company engaged an independent consultant to review the prospectivity of the tenement and in particular, the potential for the discovery for massive, magmatic nickel sulphides.
The review concluded that:
- The ultramafic stratigraphy present within E53/1926 forms part of a larger unit which is considered prospective for magmatic nickel sulphides, based on previous drill hole data immediately to the north (BHP) and south (Norilsk) of the tenement.
- Potential exists for Type 1 (e.g. Mount Keith and Jericho) massive sulphides within E53/1926 given the occurrence of massive sulphides at BHP’s nearby Jericho prospect and the presence of disseminated sulphides immediately to the south (Norilsk).
Location of E53/1926 over regional magnetics
Archer executive chairman Greg English said: “We are pleasantly surprised by the results from the review of our Albion Downs Nickel Project.
“The tenement is within a known nickel province and the potential for accumulation of massive nickel sulphide mineralisation at or near the footwall contact positions of the ultramafic remains high.
“We intend to review the existing geophysics and to acquire additional data during this quarter with the expectation of identifying drill targets.”
Location of E53/1926 within the Norseman-Wiluna greenstone belt
Next steps
The tenement area covers ultramafic and surrounding mafic to felsic volcanic and sedimentary rocks that are generally overlain by transported alluvial and colluvial material.
The depth of transported material (up to 45 metres) and depth of weathering varies significantly and depends largely on underlying geology, structures and alteration.
This means that conventional soil sampling is not suitable and that Archer will need to use geophysics to generate drill targets.
Archer intends to reprocess the existing available geophysical data to identify possible drill targets.
It is not known if the existing data set is complete, if not then Archer will need to undertake a geophysical survey (most likely electromagnetics to identify additional data).