Australian Potash Ltd (ASX:APC) has started mobilising for diamond drilling to begin this week targeting massive nickel sulphide mineralisation at Laverton Downs Project (LDP) north of Laverton in Western Australia.
Priority targets have been determined by Versatile Time Domain Electromagnetic (VTEM) surveying while 450 shallow legacy drill holes have also been located and sampled.
Nickel sulphide fertile komatiite rocks were interpreted from geochemistry as part of a detailed project evaluation by CSA Global.
This all available data including regional datasets, detailed magnetic data and high precision geochemical assay results derived from bottom of hole drill samples.
Additional sampling of legacy drilling bottom of hole spoils has expanded the geochemistry footprint and added to the existing interpretation.
Recent results from the GSWA ‘Barcoding’ project have further refined the interpretation of Archean komatiite rocks and provided an explanation for the high chrome values seen in some of these rocks.
Six high-priority targets
Managing director and CEO Matt Shackleton said: “The VTEM survey identified six high-priority massive sulphide targets across the LDP area, which sit adjacent to previously mapped outcropping ultramafics.
“These targets, or conductor plates, sit along a previously unidentified, sub-surface magnetic horizon.
“In addition to this, the legacy drill hole sample analysis we conducted over LDP last year confirmed the presence of nickel fertile ultramafic rocks.
“The LDP has been the target of nickel exploration previously, however, these newly identified massive sulphide targets sit on a buried horizon that no previous exploration penetrated.
“The deepest hole yet drilled at LDP achieved a vertical depth of only 90 metres, and it was targeting gold several kilometres away.
“Primary targets of this drill program are VTEM anomalies consistent with massive sulphide mineralisation in a geological setting replete with ultramafic rocks.”
Drilling plans
The program is approved for up to 15 holes to depths of 450 metres into the highly conductive sulphide targets previously announced in April.
Stage-1 of the program comprises 3-4 holes with planned depths of 300 metres.
The VTEM survey reported identified six modelled conductive plates forming three separate high priority target areas, however, if drilling intersects massive sulphide mineralisation then additional EM surveying and data processing will be warranted.
This project is southwest of the flagship Lake Wells Sulpahte of Potash Project (LSOP) at which the company is finalising predevelopment plans for the commencement of construction.
First production from the LSOP is scheduled for mid-2023.