Caspin Resources Ltd (ASX:CPN) says assays from reverse circulation (RC) drilling at the Serradella prospect demonstrate the potential for a significant nickel, copper and platinum group element (PGE) deposit at the company’s Yarawindah Brook Project in WA.
The Serradella prospect, formerly known as XC-22, has emerged as a priority target since the discovery of mineralisation in February.
Since then, Caspin has drilled a further 18 holes, typically on 200-metre-spaced centres over a strike of at least 1 kilometre.
Investors have responded positively, pushing the share price as much as 16.3% higher this morning to $0.50.
Strong magnetic anomaly
The focus has been on a strong magnetic anomaly in the area, which indicates ultramafic rocks likely high in magnesia, which are considered to have an important association with mineralisation.
One 350-metre step-out hole returned 91 metres at 0.48g/t 3E (palladium, platinum and gold), including 2 metres at 1.04 g/t 3E, 0.22% nickel and 0.48% copper from 149 metres, 3 metres at 0.97 g/t 3E, 0.25% nickel and 0.35% copper from 213 metres and 1-metre at 2.71 g/t 3E, 0.18% nickel and 0.07% copper from 232 metres.
This represents the most significant zone of metal accumulation, on a grade-width basis, intersected to date.
A large, untested search space
The results support a new geological model, indicating a large untested search space and providing a vector towards the more prospective basal position of the intrusion, which has not yet been drill-tested.
Needless to say, the company is planning to target this highly prospective intrusion in the next round of drilling.
Caspin CEO Greg Miles said: “The proclamation of Serradella signifies our belief that this part of the Yarabrook Intrusion is a distinctly different, and more prospective, geological setting to Central Yarabrook Hill, which had been the main focus of our exploration up until recently.
“Critical piece of information”
“Our drilling has taken broad steps across Serradella, which is technically more challenging but can reward with more rapid advances to discovery.
“A vector to the more prospective parts of the intrusion is what we’ve been looking for, and just these few results appear to provide that critical piece of information.
“There are still many results still to come, particularly in the areas we think are more prospective. But we think just these few results are already providing us with the focus for the next round of drilling.”
Next steps
The bulk of the results from the 2022 drilling program is still to be returned and the company intends to wait for these results before commencing the next phase of drilling.
As the company pushes for the expedition of samples through the lab, drilling and soil sampling is progressing at the company’s Mount Squires Project and will continue until mid-July.