Auroch Minerals Ltd (ASX:AOU) (FRA:T59) will begin a reverse circulation (RC) drilling program next week at its high-grade Nepean Nickel Project, 25 kilometres south of Coolgardie in Western Australia.
This RC program will consist of 30 holes for 3,500 metres and will test possible near-mine extensions to high-grade nickel sulphide mineralisation, as well as previously untested high-priority targets along the 10 kilometres of underexplored strike of the Nepean mafic-ultramafic mine stratigraphy and/or aeromagnetic anomalies.
The drilling is expected to take several weeks to complete after which down-hole electromagnetic (DHEM) surveys will be undertaken to assist in modelling and definition of any potential further mineralisation.
“Enormous potential”
Auroch managing director Aidan Platel said: “We are very excited to be kicking off our 2021 exploration programs with a RC drill program at the recently-acquired high-grade Nepean Nickel Project.
“In addition to exploring the extents of the known high-grade nickel sulphide mineralisation in and around the historic mine, we look forward to drilling high-priority targets further along strike which we believe have enormous potential to host further significant nickel sulphide mineralisation.”
Map of the Nepean Project showing planned and existing drill-hole collars (RC & DD) relative to aeromagnetic highs.
Historical drilling targets
The historic Nepean mine was the second producing nickel mine in Australia, producing 1,108,457 tonnes of ore between 1970 and 1987 for 32,202 tonnes of nickel metal at an average recovered grade of 2.99%.
Auroch has identified several near-mine drill targets along strike to historic RC drilling which intersected very high-grade nickel sulphide mineralisation, including:
- 3 metres at 11.78% nickel from 37 metres;
- 3 metres at 9.93% nickel from 49 metres;
- 4 metres at 6.63% nickel from 46 metres; and
- 6 metres at 2.82% nickel from 53 metres.
In addition to the near-mine prospectivity, the drilling will test several high-priority targets along strike within the 3,128-hectare tenement package, where aeromagnetic anomalies align with the Nepean maficultramafic mine stratigraphy to create compelling drill targets.
Nickel price supports exploration
Auroch remains in a strong cash position to continue exploration at its three nickel sulphide projects in WA to leverage the strong nickel price as it climbs well above US$17,000 per tonne.
Platel said: “With the nickel price already well over US$17,000/t and forecast to continue to rise significantly over the next few years, 2021 will be a transformational year for Auroch as we consolidate our existing high-grade nickel sulphide resources and move towards scoping studies, whilst at the same time continue to aggressively explore for new nickel discoveries.”
LME nickel price chart.