Venture Minerals Ltd (ASX:VMS, OTC:VTMLF) is encouraged by the latest survey from Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF), which identified multiple new targets at Venture’s ‘Julimar-lookalike’ nickel-copper-platinum group element (PGE) target in Western Australia.
Seven new electromagnetic targets were unearthed during a ground program at the Thor target in the South West nickel-copper-PGE play, bringing the total number of targets to 11.
Promisingly, the new electromagnetic anomalies are of similar strength conductors to those that yielded wide and significant palladium intervals during the early drilling phase of the Julimar nickel-copper-PGE discovery.
Surveillance at the South West project forms part of a joint venture (JV) earn-in agreement between Venture and Chalice, struck up in mid-2020.
Under the deal, CHN needs to expend $1.2 million by July 29, 2022, to earn 51% of South West, and a further $2.5 million to earn 70% of the project.
“Well placed for a new discovery”
Speaking to the survey’s findings, Venture managing director Andrew Radonjic said: “Venture’s JV partner Chalice Mining has now delivered several new EM anomalies within the Thor ‘Julimar lookalike’ target from the first stage of the JV earn-in to the company’s South West Project.
“To have a partner that has ‘one of the largest greenfield nickel-copper-PGE sulphide discoveries in recent history' will be of huge benefit in this very important second stage of the JV with Chalice, including a maiden drill program at Thor.
“Venture, through its South West JV with Chalice, is well placed for a new nickel-copper-PGE discovery and the associated excellent exposure to nickel, which is now at 10-year highs, and palladium with its widespread applications in a green hydrogen economy.
The company looks forward to the commencement of drilling at the South West Project in the coming months, where success will only add to Venture’s extensive portfolio of enviable resource assets.”
Survey says
The first stage of Venture’s JV earn-in with Chalice is focused on the Thor target, a 20-kilometre-long ‘Julimar lookalike’ magnetic anomaly.
An airborne electromagnetic survey in 2018 identified 13 targets in the southern 6.5 kilometres of the Thor magnetic anomaly, while a maiden drill program at that target intersected 2.4 metres of massive sulphide.
One of the seven new electromagnetic anomalies identified in Chalice’s latest survey coincides with the 2.4-metre result, which averaged 0.5% copper, 0.05% nickel, 0.04% cobalt and contained anomalous gold & palladium, making that conductor a potential priority drill target.
Another new anomaly is one of the higher conductance plates and is well located 200 metres down-dip of the 17-metre zone of disseminated, semi-massive and massive sulphides intersected a previous drill hole.
In addition, one of the four previously stated electromagnetic anomalies generated by Chalice was within 10 metres of a previously drilled hole, which intersected 86 metres of disseminated sulphides with anomalous levels of PGE mineralisation.
The Chalice team is currently interpreting data on the 11 electromagnetic anomalies ahead of drill testing in the coming months.
Riley Iron Ore Mine update
Today, Venture also provided an update on its iron ore prospects in Tasmania.
The company’s Riley Iron Ore Project remains in suspension since undertaking the first iron ore shipment in September 2021.
Venture is regularly reviewing all parameters of the project, including the recent strengthening of the Platts 62% iron price, which recently rallied to US$130 per tonne.
However, the discount for the Super Special Fines is still roughly 40% for January 2022, and the shipping price remains high around US$39 per tonne — well above the feasibility study levels.
The company's agents and advisors expect the iron ore price to continue to be highly volatile over the course of the year and Venture continues to position itself to allow for shorter campaign start-ups should the opportunity exist.
A review undertaken following first shipment resulted in Venture terminating its main contracts with Shaw Contracting (mining & processing) and Qube Ports (haulage & ship loading) in a bid to enter more flexible arrangements to allow for quick ramp-up and shutdowns of the mine.
While the company pivots focus to the neighbouring Mount Lindsay Project following its recent capital raise, Venture continues to work in the background on the Riley Iron Ore Mine.
A care and maintenance plan has been devised and lodged with the EPA, with the mine site operated by a locally employed mine technician based in Tullah.
All amenities — including power generators, pumps and the wet plant — remain in good working order onsite.