Venture Minerals Ltd (ASX:VMS, OTC:VTMLF) partner Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) has demonstrated confidence in the nickel-copper-platinum group element (PGE) potential of Venture's South West Project in Western Australia by committing to the second stage of the joint venture.
This commitment to the JV project within the highly prospective West Yilgarn nickel-copper-PGE province follows Chalice recently identifying two new nickel-copper-PGE targets.
The next stage will include ground electromagnetic (EM) and infill geochemical sampling to prepare the recently generated targets for potential drill testing.
In order to increase its interest in the South West Project by a further 19% to 70%, Chalice now needs to spend a further $2.5 million over the next two years.
Once the second stage of the earn-in is completed Venture can then elect to either contribute 30% or dilute to a minimum of 10% JV interest, in which case the interest automatically reverts to a 1.25% NSR royalty.
Read: Rooster Talk: Venture Minerals getting closer to the Julimar look-alike
“Strong endorsement”
Venture managing director Andrew Radonjic said: “Chalice electing to proceed to stage two of the South West JV, is a strong endorsement of the project and highlights the potential for Thor [target] to deliver Chalice and Venture a magmatic nickel-copper-PGE discovery in the near future.
“The newly identified two nickel-copper-PGE targets associated with interpreted ultramafic rocks and coincidental with magnetic and airborne electromagnetic highs, open up the untapped potential of the northern part of the 20-kilometre-long Thor target.
“This, along with the recent recognition of a parallel unexplored ultramafic unit, suggests nickel exploration on this project is still at its infancy and the second stage expenditure of $2.5 million should go a long way towards unlocking the project’s potential.”
New targets
Chalice has received results from the recently completed auger soil geochemistry program and has identified two new target areas having magmatic nickel-copper-PGE sulphide potential.
These are supported by underlying geology that is consistent with the presence of ultramafic rocks and lie within areas of untested airborne EM anomalies and coincident with magnetic highs at Thor which warrant exploration follow-up.
The new targets were not part of Chalice’s ground EM program completed last year and the auger geochemical results in these new targets have stronger coincidental magmatic indicator metals, including nickel, copper, cobalt, palladium, platinum, and gold, than the area covered by the recent ground EM.
Also, results returned from the recently completed maiden drill program testing priority EM conductors associated with the Thor magnetic trend show the sulphide-rich mineralisation intersected is of a VMS style with elevated values of zinc, copper, silver and gold within sulphide-rich zones.
This is consistent with the results from the auger soil geochemistry program and previous work by Venture which highlighted the drilled areas as having more potential for VMS style mineralisation rather than magmatic nickel-copper-PGE sulphide mineralisation.
South West JV
The South West Project is around 240 kilometres south of Perth and is hosted in the Balingup Metamorphic Belt within the highly prospective West Yilgarn nickel-copper-PGE province discovered by Chalice and which hosts the Julimar discovery.
Chalice's Julimar discovery is one of the largest greenfield nickel-copper-PGE sulphide discoveries in recent history.
Chalice recently met its expenditure requirement of $1.2 million to earn up to 51% of the South West JV Project.