Metal Energy Corp. (TSX-V:MERG) said it is hitting "multiple high-grade nickel-sulphide zones" in drilling at its Manibridge battery metals project in Manitoba, boosting the potential to add to the resource there.
The company has released assays from 14 of 16 holes completed in the second phase program at the property in the Thompson nickel belt between June and July this year.
Mineralization was hit 150 metres (m) along strike and within 600m of the past-producing Manibridge mine, which produced 1.3 million tonnes at 2.55% nickel and 0.27% copper in the 1970s.
"The assay results demonstrate that Manibridge is hosted within a large nickel system, as we intersect new zones of mineralization with wide step-out drilling just north of the mine," James Sykes, CEO of Metal Energy, told investors in a statement.
"Manibridge was mined as a small tonnage, high-grade nickel operation. We now interpret the area as a much larger, lower-grade mineralized envelope with pockets and shoots of structurally-controlled higher-grade mineralization," he added.
READ: Metal Energy completes over half of 10,000-meter drill program at Manitoba nickel-copper-cobalt project
Sykes also highlighted that the Manibridge mineralization was "open in every direction", with some of the thickest composite intercepts occurring in the down-dip direction.
The latest drill highlights include 0.84% nickel-equivalent over a length of 20m starting at 268.5m depth in one hole and 0.63% nickel-equivalent over 25m, starting at 287.5m depth, in another.
"The Phase Two program still has over 4,000 metres of drill core yet to be released since we re-started drilling in October," said the CEO.
The remainder of the program is targeting mineralization near a previously reported hole, which hit 0.92% nickel-equivalent over 32.95m and towards the historic Manibridge high-grade nickel and copper mine where mineralization is expected to increase, the company said.
Planned in Phase 2 is 10,000m of diamond drilling in about 33 holes. A total of 5,331m were completed in 19 holes between June 6 and July 28.
The drill hole collar locations were within 300m to 600m of the old mine workings. The remaining 4,669m is currently ongoing, and drill holes will progress between 200m to 350m of the old mine workings.
Metal Energy is the operator of Manibridge and owns 70% of the project, which spans 4,368 hectares within the world-class Thompson Nickel Belt. The firm is scheduled to achieve 100% ownership from CanAlaska Uranium Ltd (TSX-V:CVV, OTCQX:CVVUF) in the coming weeks without any further cash or share payments.
Contact the writer at giles@proactiveinvestors.com