NickelSearch Ltd (ASX:NIS) is considering a bulk-tonnage extraction method following broad, robust nickel results from reverse circulation (RC) drilling at the Carlingup Project in Western Australia.
The company confirmed an increase in resources at three deposits (RAV8, RAV5 and RAV4 West) during drilling at the project.
There were particularly encouraging results from RAV8 deposit, where disseminated nickel sulphide mineralisation was observed to be up to 56-76 metres thick and open to the west.
Drilling at RAV8 returned:
- 22 metres at 0.6% nickel from 85 metres, including 5 metres at 1.1% and 25 metres at 0.5% from 112 metres; and
- 15 metres at 0.8% nickel from 79 metres, including 12 metres at 0.9% and 10 metres at 0.7% from 112 metres.
At RAV5, NickelSearch defined a mineralised outline of more than 0.7% nickel over an area of 50-200 metres wide and 200-300 metres long, remaining open to the west and down plunge. The company intends to generate a maiden resource estimate for this deposit.
RAV4 West returned broader intervals of disseminated sulphides from a hanging wall of higher-grade nickel intersections, adding to previously reported extensions of massive sulphide mineralisation to the west.
The results have prompted a positive response from investors with shares as much as 26% higher in early trade to $0.252.
Poised to begin next phase
"We are very pleased with the results of our 2021 program that will add significant value to our current resource base across several deposits,” NickelSearch managing director Nicole Duncan said.
“We are now very excited to embark on the next phase of greenfields exploration work programs, which aims to unlock the hidden potential of new nickel sulphide discoveries across our very large strategic tenement package at Carlingup.”
In addition to the RC program, NickelSearch conducted a large-diameter diamond drilling program at all three deposits, adding to the company’s understanding of project geology and providing samples to determine the best processing routes.
Having also completed an airborne electromagnetic (EM) survey and pending soil geochemistry, the company believes it now has a firm foundation to rank its drill targets and begin the process of testing each of them.
NickelSearch will begin drilling as soon as the necessary approvals and drill rigs can be secured, keen to discover new high-grade nickel sulphide deposits at Carlingup.