Caspin Resources Ltd (ASX:CPN) is trading higher after releasing strong new drill results from Serradella Prospect at its Yarawindah Brook PGE-Nickel-Copper Project in Western Australia.
The results confirm a significant PGE discovery at Serradella within an emerging PGE-nickel province.
Some of the best results from six holes include:
- 17 metres at 2.13 g/t 3E (platinum + palladium + gold) and 0.17% nickel from 131 metres, including 3 metres at 5.48 g/t 3E and 0.17% nickel, and 25 metres at 1.01 g/t 3E and 0.16% nickel from 55 metres within YARC0036; and
- 8 metres at 1.04 g/t 3E and 0.16% nickel within YARC0042.
Shares up
Investors have responded positively, sending shares as much as 38.15% higher in the first half hour of trading to $0.67.
Drill hole YARC0036 was a standout with two excellent, wide mineralised zones. The results exceed the original discovery intercept in YARC0022 of 13 metres at 1.08 g/t 4E (Pt+Pd+Au+Rh), 0.26% nickel and 0.21% copper, about 300 metres along strike to the north.
More than 750 metres away, YARC0042 also returned a broad anomalous zone of 111 metres at 0.30 g/t 3E, 0.09% nickel and 0.05% copper from 71 metres, including 8 metres at 1.04 g/t 3E.
This zone is consistent with the previously announced geological targeting model and complements results for YARC0040 of 91 metres at 0.48 g/t 3E, 0.11% nickel and 0.08% copper.
"Major breakthrough"
Caspin’s chief executive officer Greg Miles said: “These results provide a major breakthrough for the project. We’ve always believed that Yarawindah has the potential for a large economic deposit of PGEs, nickel and copper. Now that potential is starting to be realised.
"These results far exceed the magnitude of our original discovery hole and confirms that we’re on a pathway to discovery.
“Whilst we celebrate this significant milestone for the project, we also acknowledge how much we have still to learn about this system.
"Whilst our broad scale targeting model still holds, we recognise there is an additional layer of more detailed control on high-grade mineralisation that we are yet to understand.
"We will need to infill the drill hole spacing to further define this high-grade zone, yet the best mineralisation may still lie beyond the deepest of our step-out holes.
"It’s an exhilarating moment for the team and a fantastic time to be a Caspin shareholder. We can’t wait to see how the next phase of exploration unfolds."
What’s next
Caspin will now turn its attention to infilling the drill spacing around YARC0036 and across the prospect area, which may lead to identifying an economic deposit of mineralisation.
Assays for several key drill holes are still pending, including YARCD0025 and YARCD0027. Previous observations in these holes show apparent mineralisation.
The results from these holes will help refine the current interpretation and the focus for infill drill targeting.
Samples from YARC0036 have also been re-submitted for full six PGE assay.
The broad scale approach to exploration so far has allowed Caspin to develop a conceptual model which indicates potentially stronger mineralisation, associated with the basal contact of the intrusion, is to the northeast of the current drill area.
This target will also remain an important priority for further drill testing.
Assay turnaround times, including six PGE analysis, continue to be poor, however, Caspin believes that the proper course of action is to collate and interpret all assay results to ensure the most capital efficient and impactful drill program can be delivered upon recommencement.
It should also be noted that wet weather and ground conditions currently prevent drill rigs from operating across the prospect. Therefore, the current exploration programs at the Mount Squires Project are well timed to utilise this gap in activity at Yarawindah as well as offer another avenue for discovery and shareholder value.