Moho Resources Ltd (ASX:MOH) is set to embark on the first phase of reverse circulation (RC) drilling at its 100%-owned Black Swan South nickel prospect, which is part of the regional Silver Swan North Project.
Drilling is expected to start this week at the prospect, which is on exploration licence E27/623, about 4.5 kilometres south of the Silver Swan nickel mine and around 40 kilometres north-northeast of Kalgoorlie.
"Under-explored"
“The Black Swan South nickel prospect is very much under-explored by today’s standards,” managing director Shane Sadleir said.
“Moho’s experienced exploration team is looking forward to this RC drill program shedding new light on the potential of the area to host nickel sulphide mineralisation, particularly given the high-grade indicated mineral resources recently reported by Poseidon at the nearby Silver Swan and Golden Swan nickel deposits.”
The Black Swan South nickel prospect is a zone of ultramafic rocks identified from historical drilling, south of the Silver Swan nickel mine.
This prospect is associated with a prominent, elliptical shaped magnetic anomaly, approximately 600 metres long and bound on its western side by an interpreted major, north-west trending structure.
Nickel sulphide mineralisation
An evaluation of past geochemical assay data by Moho's geochemical consultant, Richard Carver of GC Xplore Pty Ltd, has identified geochemical targets prospective for nickel sulphide mineralisation for drill testing.
Moho has planned 2,000 metres of RC drilling in 12 drill holes varying from 110 metres to 200 metres deep to test for the presence of nickel sulphides and validate the foot wall contact of a komatiite unit present on exploration licence E27/623.
The first stage of the RC drill program will test an under-explored komatiite sequence less than 5 kilometres south of the Silver Swan-Black Swan nickel mine.
At least three of the deeper holes will be cased with PVC to facilitate a future downhole EM survey.
Appointment of chief geologist
To drive its ambitious drilling campaign, Moho has appointed Wouter Denig as chief geologist.
Denig boasts 30 years mineral exploration experience and was previously employed with Codrus Minerals, overseeing exploration targeting across Silver Swan South and Red Gate projects in WA.
He has spent time in exploration leadership positions with companies such as Western Areas, IGO Ltd, MPI and Polaris Metals exploring for nickel sulphides, base metals and gold throughout WA, and has a master’s degree in Structural Geology.
Deal with Yandal
The company has also signed option agreements over 15 tenements from Yandal Resources Ltd (ASX:YRL).
Under the agreement, which is still subject to due diligence conditions, in exchange for a 1% net smelter royalty, Moho will acquire from Yandal the exclusive right to access, explore for, own, mine, recover, process and sell all nickel, copper, cobalt and platinum group elements (PGE) extracted from 15 granted mining tenements held by Yandal.
The company will also vend four mining tenements under option and a tenement application to Yandal while retaining the rights for nickel and NSR gold royalties. The deal is the final stages of being finalised with final paperwork due to be lodged with the relevant department shortly.